NEC Sets Up Outsourcing Firm For Mobile Network Operations

TOKYO -(Dow Jones)- NEC Corp. (6701.TO) said Thursday it has established a mobile network operation outsourcing company in Hong Kong to provide services for the second- and third-generation mobile network operations of Hutchison Telecommunications (Hong Kong) Ltd. in the territory, Kyodo News reported.

The new company, NEC Telecommunications (Hong Kong) Ltd., was established on Dec. 22 with an initial capital of HK$5 million (about Y70 million). It will start operations next Monday, the company said.

NEC said it plans to expand the new company's business to 3G projects in China in the future. The firm, which has 300 employees including personnel from Hutchison's wireless network operation division, will become a wholly owned company of NEC Telecommunications (China) Co. following the procedures required by the Chinese government, it said.

Ken Lu, who is responsible for promoting the 3G projects in China at NEC Telecommunications (China), has been named president of NEC Telecommunications (Hong Kong).

"With this company, NEC will be ready for 3G's takeoff in China and the global market, enabling us to support global operators with our total solution capabilities," Katsuhiro Nakagawa, associate senior vice president and executive general manager at NEC's mobile solutions operations unit, said in a statement.

NEC also said it has recently been awarded a network expansion project for Hutchison's 3G network, Kyodo reported.

The Japanese company is a strategic partner of Hutchison 3G projects and a major supplier of 3G mobile handsets and infrastructure systems, according to the company.

Hutchison is the largest mobile operator in Hong Kong with 1.9 million subscribers.

(END) Dow Jones Newswires "

Posted to the site on 6th January 2005