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Product category: Networking Hardware
News Release from: Oki Electric
Edited by the Electronicstalk Editorial Team on 31 March 2003

New joint venture aims for broadband

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Oki Electric and Fujikura are to create a new joint venture, OF Networks Co, to provide next-generation broadband access systems to telecomms carriers.

Oki Electric and Fujikura are to create a new joint venture, OF Networks Co, to provide next-generation broadband access systems to telecomms carriers Furthermore, Sigma-Links, a company jointly established by the two companies in 2001 for the development, manufacturing, and sales of small-form-factor optical transceivers, will enhance its business by taking over Oki's optical interface module business on 1st April 2003

The capital of Sigma-Links is also planned to increase by the end of April, in which Fujikura will own the majority.

"The extended partnership between Oki and Fujikura demonstrates that the two companies have maintained a successful relationship.

This was made possible by the continuing joint efforts of the two companies.

We believe the combined strengths of our companies will greatly contribute to the expansion of the growing broadband optical market", said Katsumasa Shinozuka, President and CEO of Oki Electric.

"This is an important development for Fujikura and Oki.

Through the enhanced partnership, both companies will remain committed to providing broadband optical systems and solutions that meet customers' various requirements", said Akira Tsujikawa, President of Fujikura.

Through their close partnership, Oki and Fujikura intend to contribute to the growing demand for broadband networks.

Oki boasts expertise in key technologies for the broadband era, including optical access, wavelength division multiplexing, ultra-high-speed optical modulation and high-speed LSI technologies.

Fujikura is strong in optical fibre and passive optical components technologies and optical access technology.

Oki and Fujikura will expand their strengths through the extended collaboration, in order to accelerate the development of advanced optical communications systems.

The new joint company, OF Networks, will develop, manufacture and market broadband access equipment, including a gigabit passive optical network (PON), gigabit media convertor, VDSL equipment and access routers.

The company will mainly focus on the development of optical products for the next-generation broadband market, and will use the external EMS and manufacturing companies of Oki and Fujikura.

Its products will be provided to the Japanese and worldwide markets through the marketing, sales, and SE capabilities of Oki Electric and Fujikura.

Both companies will also send optical access engineers to OF Networks.

The new company will be 51% owned by Oki and 49% owned by Fujikura, and will be capitalised at Yen 300 million.

Oki will transfer its optical interface module business, including 10Gbit/s optical transponders, optical transmitters and receivers for SDH (synchronous digital hierarchy) and WDM (wavelength division multiplexer), and optical access PON modules, to Sigma-Links, a joint venture established in 2001 by Oki and Fujikura.

Sigma-Links has been providing small-form-factor optical transceivers featuring speeds of more than 1Gbit/s to the telecommunications and datacommunications markets.

Through this business transfer, Sigma-Links will be able to broaden its product line-up to form a comprehensive optical access business.

Both Oki and Fujikura will dispatch engineers to Sigma-Links for design and development of the optical interface module, and Fujikura will provide manufacturing and marketing capabilities for a certain period of time.

By broadening and integrating various optical technologies from Oki and Fujikura, Sigma-Links intends to serve as a comprehensive provider of optical components to telecom carriers worldwide.

Oki and Fujikura have also agreed to increase the capital of SIGMA-LINKS by the end of April 2003.

With this capital increase, the company, which is equally possessed by two companies, will change to 51% by Fujikura and 49% by Oki.

Oki and Fujikura will concentrate their engineering resources on the development of broadband optical access equipment for OF Networks and on the development of an optical interface module for Sigma-Links.

Both companies expect that the enhanced collaboration between the four companies will spur development of next-generation strategic products and reduces development time, which will lead to improved competitiveness of the optical access systems and optical components they provide.

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