TOKYO-Japanese wireless equipment supplier NEC Corp. announced it has set up a new mobile network operation outsourcing company in Hong Kong. NEC said the new business will focus on new third-generation projects in China.
NEC agreed recently with Hutchison Telecommunications (Hong Kong) Limited Ltd. to provide outsourcing services, such as network operation, maintenance and development of network maintenance tools for Hutchison’s Hong Kong network. NEC’s newly established company has employed certain personnel from the wireless network operation division of Hutchison Telecom HK.
Earlier this week, Hutchison said it would lay off about 750 Hong Kong jobs and outsource some services to reduce costs.
The company was established with initial capital funding of $641,500 and approximately 300 employees and will be a wholly owned company of NEC Telecommunications (China) Co. Ltd. following the procedures required by the Chinese government.
“The new company marks NEC’s entry into a new business area, accumulating capability in network system outsourcing with the combination of NEC’s competencies as a mobile network vendor and highly skilled outsourcing staff from Hutchison. With this new company, NEC will be ready for 3G’s take-off in China and the global market, enabling us to support global operators with our total solution capabilities,” said Katsuhiro Nakagawa, associate senior vice president and executive general manager of the Mobile Solutions Operations Unit of NEC.
In addition, NEC said it was awarded a network expansion project for Hutchison Telecom HK’s 3G network. Under the new expansion, NEC will remain the sole supplier of the 3G UTRAN network equipment for Hutchison Telecom HK.
