ASIA : NEC Corporation and NEC Telecommunications (China) announced that it has commenced production of 3rd Generation mobile radio base stations (Node-B) at one of the production site of NEC Telecommunications (China).

The first lot of the products has been delivered in January 2005 to Europe and the plant is ready for manufacturing Node-Bs for China.

The production base procures major core pre-product modules, such as channel coding cards and line cards, from NEC's major manufacturing sites in Japan (NEC Saitama Ltd. and NEC Wireless Networks Ltd.), and other general parts such as power modules and racks from local vendors. The plant then assembles and customizes them according to the requirement of each operator and carries out final investigations and validations. As the initial stage, the plant manufactures Node-Bs for 3G carriers outside China by collaborating with NEC's Delivery Operation Center (DOC) in Amsterdam, a base for the delivery of node-B mainly for European market, and is ready to commence volume production for 3G commercial service in China in the near future. When it comes to volume production for China
market, NEC will decide the detailed production strategy, including the site of DOC as a core delivery operation center, by flexibly utilizing resources inside and outside NEC.

Takakuni Kuki, Executive General Manager and head of NEC's Mobile Network Operations Unit commented, "NEC hopes to take a leading position for the construction of 3G infrastructure in China with its abundant technologies and experiences in 3G commercial markets in Japan, Hong Kong and Europe. NEC will enter into a key phase of the Chinese 3G market. In order to accelerate the progress of Chinese 3G market, NEC will build up basic production as early as possible to meet the increasing demand of the market." As the pioneer of global 3G WCDMA market, NEC has made outstanding achievement. It hasalready cooperated with more than 30 3G operators and more than 20 countries and areas. Till March 2004, NEC has delivered 23800 Node-B, occupying 35.1% of market share in the world.
(Source: Multimedia Research Institute)

In 2004, NEC established a 3G demonstration center in Guangdong. The center showcases NEC's 3G network solution offerings such as node-B radio base station,
radio network controller and 3G terminals, and mobile internet application platform, and demonstrates attractive mobile multimedia service using the 3G technology.

The 3G demonstration center is opened to a variety of customers including telecom carriers, government agencies, as well as software vendors and application service providers who may use the center as a testing site for 3G mobile applications with actual 3G infrastructure environment.

NEC is also increasing its 3G infrastructure support sites in major cities in China.

In addition, NEC recently established "NEC Telecommunications (Hong Kong) Limited", a mobile network operation outsourcing company to further expand
the business of the new company to include 3G projects in China in the future.

The new company marks NEC's entry into a new business area, accumulating capability in network system outsourcing with the combination of NEC's competences as a mobile network vendor and highly skilled outsourcing staff.

With this new company, NEC will be ready for 3G's take-off in China market, enabling us to support global operators with its total solution capabilities.