NEC Forms R&D Partnership with NTT

NEC and NTT Corporation are joining forces to accelerate digital transformation. To that end, the two companies have formed a capital and business partnership that will support ICT research and development, with a particular emphasis on products that leverage optical and wireless technologies.

The two companies believe that strong communications infrastructure will be particularly important in a post-COVID-19 environment. Online traffic has increased since the start of the pandemic, and equipment manufacturers are starting to release more and more products designed to take advantage of the growing number of 5G networks.

With that in mind, the alliance will have several initial goals. NEC and NTT will develop and market a new compact Digital Signal Processing circuit, as well as optical transmission equipment that integrates that technology. They will also promote the O-RAN Alliance’s open architecture, and release products that meet the organization’s specifications.

Both companies will lend their weight to NTT’s IOWN initiative, which will develop communications technology that could be used in submarines and in space. Meanwhile, NEC will advance its Solutions for Society portfolio. That portfolio includes biometric, AI, and identity products and services designed for a number of different digital applications. For example, NEC has recently been promoting its I:Delight digital services platform, which now boasts temperature detection and will help clients looking to customize their user experiences.  

NEC will provide NTT with 13,023,600 shares of common stock to strengthen the partnership and foster long-term collaboration. That exchange is expected to take place on July 10.

The news comes shortly after NEC released a new device that can identify people who are wearing masks. The company has previously argued that COVID-19 will fundamentally alter the way that companies approach their digital transformation, and many of them will make contactless technologies a far bigger priority for the foreseeable future.