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NEC, Fujitsu, others to boost output of IP telephony devices by 30%.

TOKYO, Aug. 24 Kyodo

NEC Corp., Fujitsu Ltd. and two other major communications equipment makers plan to increase production of Internet protocol (IP) telephony devices to meet demand from large companies to build in-house IP telephony networks, the Nihon Keizai Shimbun reported Sunday.

IP telephone networks consist of IP-PBX Internet-compatible switches, gateway devices for Net-based voice communications (VOIP) and other types of equipment.

NEC, the largest manufacturer of IP telephony devices, plans to increase output of both IP-PBX switches and gateways for VOIP, aiming to boost sales of the equipment by 20% to 30 billion yen this fiscal year, the newspaper said.

Fujitsu and two other companies -- Oki Electric Industry Co. and Hitachi Ltd. -- plan to produce 20-60% more IP telephony devices. Combined shipments of the four manufacturers are expected to reach 87 billion yen this fiscal year, up 30% from fiscal 2002.

The companies aim to arrest a slide in revenue at their communications equipment operations, the paper said. After incurring hefty extraordinary losses to streamline the businesses, the four firms expect to return the operations to the black this fiscal year.

The companies also intend to launch services to build and manage IP telephony systems in an effort to push up earnings. NEC and Oki have already agreed to standardize communications formats for their equipment, and have also begun to jointly develop related software.
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Comment:NEC, Fujitsu, others to boost output of IP telephony devices by 30%.
Publication:Japan Computer Industry Scan
Article Type:Brief Article
Geographic Code:9JAPA
Date:Aug 26, 2003
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