AUGUST 28, 2008 -- Oki Electric Industry Co., Ltd. (search for Oki) says that the company's board of directors has approved the spin-off of its telecommunications business through an incorporation-type company split. The new entity, OKI Networks Co., Ltd., will be established effective October 1, 2008. By splitting off its telecom division, excluding legacy-type business, OKI aims to expand its telecom business by enhancing product development to compete in the rapidly changing global network market.
OKI has been offering telecom products to Japan's major telecom carriers and to the enterprise network market. However, in recent years, as networks migrate to IP and the use of Next-Generation Network (NGN) based networks accelerates, the business environment has been changing rapidly and globally with fiercer competition, Oki says.
"In order to become a winner in this competitive network market and further expand our telecom business, we understand that it is essential to further increase flexibility in management and establish a business structure that can respond to the changing market in a more agile and timely manner. Thus, we decided to establish OKI Networks," said Masayoshi Matsushita, senior vice president at OKI. "In addition, to expand into new markets, we believe it is important to strengthen our marketing skills and at an early stage, establish a market-driven business model that is flexible and responsive to the market changes."
OKI Networks will aim to offer advanced services that seamlessly connect telecom networks with enterprise networks based on NGN. OKI plans to continue to expand its telecom business by creating new products with an eye on the global market. The company says this will be done by leveraging its strengths in network technology, network integration technology, offering a full service from IP network technology, design through to maintenance, and eSound, eVideo, etc., to enable high-quality voice and video over IP.
Masasuke Kishi will be president of the new company, which will employ approximately 650 people.