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NEC Australia to absorb NEC Business Solutions

IT Industry - Deals

NEC is to integrate its Australian enterprise telecoms business, NEC Business Solutions, into NEC Australia from April 1, 2007, with the aim of increasing synergy and business collaboration between the two in the key areas of IT and networks.

NEC Business Solutions provides end-to-end voice, data and video solutions for business and government, offering IP telephony, contact centre and managed services. NEC Australia will continue to be headquartered in Melbourne, Australia, with combined annual revenues of more than $582 million.

 The company says the decision was taken in response to the rapid changes occurring in the Australian information communication technology market, in particular the growth of broadband, IP telephony and wireless communications.

"After integration, NEC Australia will be able to improve cost structures and increase its effectiveness as a supplier of integrated voice and data solutions toward promotion of long-term growth through joint business opportunities and increased efficiencies," the company said.

It claims that the integration will give it "a market-leading position in providing total communications solutions through its broadband network, display solutions, broadband access products and IP telephony and wireless capability...[and] will allow active exploration of new business opportunities among gated communities and business parks as well as expand the company's current business in the hospitality, corporate, retail, small medium enterprise, education, banking and finance, health and government space."

NEC Australia claims it has "the largest ICT research and development facility in Australia," undertaking R&D in DSL technologies and 3G mobile terminals. This will continue,

In addition to being a developer and supplier of equipment NEC also operates, through Nextep Broadband, its own DSLAM network providing business grade DSL services for SMEs, corporates and government.