NEC 18m Satellite Earth Station Antenna installed in Hungary
NEC 18m Satellite Earth Station Antenna installed in Hungary.
NEC Corporation has been a pioneer in satellite technology since its groundbreaking collaboration with the United States in 1963. This partnership not only marked Japan’s entry into satellite communications but also enabled Japanese citizens to simultaneously receive news of President John F. Kennedy’s assassination alongside Americans.
Today, NEC continues to lead the satellite ground station market, driven by advancements in technology and growing demand across Latin America and Asia.
NEC’s Expanding Global Footprint
NEC’s Radio Operations Unit, based at its Yokohama plant south of Tokyo, employs 2,830 people and generated $2.8 billion in revenue last year. A significant portion of its business includes:
- Personal handy-phone systems, microwave equipment, and ground stations (38%)
- Space systems, including satellites and components (11%)
- Aerospace equipment (31%)
With 55% of its revenue derived from international markets, NEC has installed satellite ground stations or equipment in 122 countries. Notably, orders from India, Sri Lanka, South Korea, Ecuador, and Costa Rica are projected to contribute 3 billion yen in sales this year alone.
Market Leadership
NEC holds an impressive share of the global satellite ground station market:
- INTELSAT Ground Stations: 30% market share
- INMARSAT Large Ground Stations: 60% market share
- ARABSAT and EUTELSAT Ground Stations: 61% and 60% market share, respectively
In Japan, NEC commands 50% of the domestic market, competing with Mitsubishi Electric, Toshiba, and Japan Radio Co., Ltd.
Future Growth Drivers
Yasuhiro Hoshino, Associate General Manager at NEC, identifies four key areas of growth in the satellite industry:
- VSAT Market
- Growing demand for high-speed data interchange, rural telecommunications, and cost-effective voice telephony, particularly in Asia, is expected to drive significant VSAT sales.
- VSATs are predicted to account for 20–30% of NEC’s satellite-related international revenue in the coming years.
- INTELSAT Ground Stations
- Despite steady demand, these stations remain a reliable revenue stream, with ongoing upgrades and new satellite launches.
- Mobile Telephony via Satellite
- NEC is developing ground stations for low Earth orbit (LEO) satellite constellations, enabling global mobile phone networks.
- Direct Broadcast Satellite (DBS) Services
- Digital broadcasting services, such as those launched in Japan using JCSAT-3, operated by Sky Perfect JSAT, are driving demand for reception equipment globally, particularly in Asia and Latin America.
Strong Regional Presence
NEC boasts significant market shares in key regions:
- Latin America: 29% in VSAT systems and 35% in VSAT equipment, with dominant positions in Mexico (40%) and Brazil (30%).
- Asia (excluding Japan): 12% in systems and 30% in equipment.
Advancing Terrestrial Telecommunications
In addition to satellite systems, NEC’s synchronous digital hierarchy-based microwave system, the 2000 Series, offers high-capacity telecommunications solutions with speeds of 140–150 Mbps. Countries like Malaysia and the Philippines have adopted this cutting-edge technology for their networks.