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NEC to Expand Delivery of 3G Radio Base Stations

12th March 2003

NEC Corporation is to further expand delivery of 3G radio base stations. NEC's Delivery Operation Center (DOC) for third generation (3G) mobile W-CDMA radio base stations (Node-B) in Amsterdam, The Netherlands, established in October 2002, is operating successfully. The Amsterdam DOC was established as one of the sites of NEC Logistics Europe B.V..

The Amsterdam DOC was set up to satisfy the delivery requirements of European 3G operators in a fast and flexible manner. NEC ships major product parts and modules from NEC's manufacturing facilities in Japan (NEC Saitama Ltd. and NEC Wireless Networks Ltd.) and stores them, with components procured within Europe, in the DOC. Once NEC receives orders from operators, the Node-Bs are manufactured/assembled with customization for each operator, final investigations and validations are carried out, and the Node-Bs are delivered to the customers' sites. Previously NEC shipped completed Node-Bs from Japan but since the DOC commenced operation, NEC has decreased delivery lead-time (from order to customers' sites) by half - to around five days. In addition, NEC has dramatically decreased logistics costs and inventory.

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