NEC Bows Out: From Ambitious Goals to Strategic Retreat

NEC Corporation has announced the cessation of its development of wireless base stations for 4G and 5G networks. NEC President Takashi Morita openly stated, “We will no longer invest in expanding this area.” This move marks NEC’s official exit from the highly competitive global base station market, ending what were once ambitious goals. In June 2020, NEC entered a significant capital and business partnership agreement with NTT, receiving an investment of approximately 64.4 billion yen ($644 million).

At that time, then-President Takashi Niino confidently set the goal of capturing 20% of the global base station market by 2030. However, just four years later, this ambitious goal has been shattered.

NEC’s exit is not an isolated case in Japan’s telecommunications equipment market. According to international research firm Omdia, nearly 80% of the global base station market is currently firmly controlled by three giants: China’s Huawei, Sweden’s Ericsson, and Finland’s Nokia. As of 2025, these companies dominate the market with a strong presence, controlling about 75-80% of the global market share, with Huawei leading due to its strong standing in China and expanding influence in other regions.

Looking ahead, the development of emerging technologies like 6G, increased focus on Open RAN solutions, and environmentally sustainable infrastructure are expected to influence and potentially shift the market dynamics in the coming years.