Capturing growth opportunities from LTE and LTE-Advanced to 5G and IoT

「With the goal of launching commercial 6G services in 2030, work on specifications is progressing at 3GPP, the international standards organization, under Release 20. Accordingly, demand for 6G measurement equipment is expected to begin developing in earnest around 2027.」

「In areas of 5G utilization, research and development aimed at using 5G in the Automotive sector is progressing, and field trials are continuing. In the IoT (Internet of Things) sector, demand for Wi-Fi 7 (*1) development is increasing. In satellite-based non-terrestrial networks (NTN: Non-Terrestrial Network), devices using NB-IoT (Narrowband IoT) for 4G systems have also been released, and related development demand is expected. In Release 18 (*2), for which standardization was completed in June 2024, functionality is being improved for eRedCap (enhanced Reduced Capability) for IoT and NTN using 5G NR (New Radio), and support for chipsets and devices is progressing. In addition, 3GPP has begun discussions on specifications for 6G, the next-generation communications standard, and research and development is under way.」

「3GPP has also begun discussions on specifications for 6G, the next-generation communications standard, and research and development is under way.」

「In areas of 5G utilization, research and development aimed at using 5G in the Automotive sector is progressing, while research and field trials for building 5G networks in private environments such as local 5G are continuing. In the IoT (Internet of Things) sector, demand for CPE (Customer Premises Equipment) used for the last mile in the United States and for Wi-Fi 7 (*1) development, in addition to 5G wireless module development, has been increasing. In non-terrestrial networks (NTN: Non-Terrestrial Network), satellite-based communications services have begun one after another, and devices using NB-IoT (Narrowband IoT) for 4G systems have also been released. In Release 18 (*2), for which standardization was completed in June 2024, functionality is being improved for eRedCap (enhanced Reduced Capability) for IoT and NTN using 5G NR (New Radio), and chipsets and devices are expected to adopt these technologies progressively.」

「At WRC-23 (World Radiocommunication Conference 2023), held in December 2023, agreement was reached on the frequencies for 5G-Advanced. Research and development of 6G, the next-generation communications standard, has also begun.」

「In areas of 5G utilization, which have advanced further following completion of Release 17 standardization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. In the IoT sector, demand for CPE (Customer Premises Equipment) used for the last mile in the United States has been increasing, creating demand for the development of Wi-Fi 6E (*2) and Wi-Fi 7 (*3) in addition to 5G wireless modules. Research and development of 6G, the next-generation communications standard, has also begun.」

「In areas of 5G utilization, which have advanced further following completion of Release 17 standardization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. In the IoT sector, demand for CPE (Customer Premises Equipment) used for the last mile in the United States has been increasing, creating demand for the development of Wi-Fi 6E (*2) in addition to 5G wireless modules. Research and development of 6G, the next-generation communications standard, has also begun.」

「In addition, as 3GPP specifications for Release 18, including non-terrestrial networks using satellites and low-power/low-cost specifications, are being developed, the development of mobile communications technologies for realizing new services has emerged as a business opportunity. Research and development of 6G, the next-generation communications standard with further enhanced 5G capabilities, has also begun.」

「In areas of 5G utilization, which have advanced further following completion of Release 17 standardization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. In the IoT sector, demand for CPE (Customer Premises Equipment) used for the last mile in the United States has been increasing, creating demand for the development of Wi-Fi 6E in addition to 5G wireless modules. Research and development of 6G, the next-generation communications standard, has also begun.」

「In the United States, where the spread of 5G commercialization using millimeter waves had been slow, construction of base stations and other work has begun toward commercialization using the C band, a Sub-6 GHz band, and demand for measurement equipment used to build and maintain base stations is expected going forward.」

「In March 2022, 3GPP completed standardization of the new Release 17 specification, aimed at improving the efficiency and performance of 5G, including expansion into higher frequency bands, wider communications coverage, and low-power, low-cost communications. Even in the United States, where the spread of 5G commercialization using millimeter waves has been slow, activity toward commercialization using the C band, a Sub-6 GHz band, has intensified. In areas of 5G utilization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. In the IoT sector, demand for CPE (Customer Premises Equipment) used for the last mile in the United States has been increasing, creating demand for the development of Wi-Fi 6E in addition to 5G wireless modules. Research and development of 6G, the next-generation communications standard, has also begun.」

「In March 2022, 3GPP completed standardization of the new Release 17 specification, aimed at improving the efficiency and performance of 5G, including expansion into higher frequency bands, wider communications coverage, and low-power, low-cost communications. Research and development of 6G, the next-generation communications standard, has also begun.」

「Even in the United States, where the spread of 5G commercialization using millimeter waves has been slow, activity toward commercialization using the C band (*2), a Sub-6 GHz band, has intensified. In areas of 5G utilization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. Research and development of 6G, the next-generation communications standard, has also begun.」

「In the information and communications sector, the main market for the communications measurement business, operators' 5G commercialization schedules are progressing steadily, with 5G services launching in countries around the world. In July 2020, 3GPP completed standardization of Release 16*, which specifies ultra-low latency and massive simultaneous connectivity expected to expand use cases, and discussions are under way on Release 17*, covering further expansion into higher frequency bands, wider communications coverage, and low-power, low-cost communications. In areas of 5G utilization, research and development aimed at using 5G in the Automotive sector, as well as research and field trials for building 5G networks in private environments such as local 5G, have begun. Research and development of 6G, the next-generation communications standard, has also begun.」

「Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development-related demand for 5G commercialization, and captured such demand.」

「During the cumulative second quarter of the fiscal year, development demand for 5G chipsets and mobile devices remained steady. In particular, development demand related to 5G commercialization expanded in Asia, driving the 5G business. As a result, revenue was ¥37,522 million, up 6.7% year on year, and operating profit was ¥8,999 million, up 52.3%.」

「In the information and communications sector, the main market for the measurement business, commercialization schedules for operators in each country are progressing steadily, with 5G services beginning in China after the United States, South Korea and Europe. In Japan, 5G services began in March 2020 in some areas, mainly urban areas. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G, and captured development-related demand ahead of 5G commercialization.」

「As a result, commercialization schedules for operators in each country are progressing steadily, with 5G services beginning in China after the United States, South Korea and Europe. In Japan, preparations for commercialization in 2020 are progressing, including decisions on frequency allocations for 5G to each carrier. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G, and captured demand related to the development of 5G chipsets and devices.」

「Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G, and captured initial development demand for 5G chipsets and devices.」

「As a result, commercialization schedules for operators in each country are progressing steadily, with 5G services beginning in Europe after the United States and South Korea. In Japan, preparations for commercialization in 2020 are also progressing, including decisions on frequency allocations for 5G to each carrier. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G, and captured initial development demand for 5G chipsets and devices.」

「As a result, the roadmaps of major carriers in each country toward 5G commercialization began to take concrete shape. Accordingly, initial development investment in communications semiconductors and mobile devices for 5G commercialization is progressing steadily. Early 5G services began in North America and South Korea in December 2018, and smartphone vendors are scheduled to commercialize 5G-compatible smartphones during 2019. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G.」

「As a result, the roadmaps of major carriers in each country toward 5G commercialization began to take concrete shape. Accordingly, initial development investment in communications semiconductors for 5G commercialization is progressing steadily. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture development investment demand for 5G.」

「Standardization of 5G NSA-NR was completed in December 2017 and that of 5G SA-NR in June 2018, defining the full specifications for 5G's major functions. As a result, the roadmaps of major carriers in each country toward 5G commercialization began to take concrete shape. Accordingly, development investment in communications semiconductors for 5G commercialization began to emerge. Against this backdrop, the Measurement Business Group focused on developing solutions and establishing its organizational structure to capture initial development investment demand for 5G.」

「In addition, in 5G, the next-generation communications technology expected to serve as infrastructure for a wide range of mobile broadband services, development projects aimed at commercialization took concrete shape as standard specifications progressed, and demand for 5G measurement equipment began to emerge. In the IoT sector led by telecommunications operators and in autonomous driving and in-vehicle communications in the automotive industry, the development of mobile communications technologies for realizing new services has also emerged as a business opportunity.」

「Meanwhile, specifications for 5G, the next-generation communications technology expected to serve as infrastructure for a wide range of mobile broadband services, began to be developed in stages, and developments toward commercialization took concrete shape as major domestic and overseas operators began field trials. In addition, specific investments in new social innovations using IoT across various industries, as exemplified by autonomous-driving development projects in the automotive industry, expanded further. Against this backdrop, the Group made strategic investments centered on growth markets and new business opportunities, working to strengthen the competitiveness of its solutions and establish its business foundations.」

「Meanwhile, with the standardization of 5G, the next-generation communications technology expected to serve as infrastructure for a wide range of mobile broadband services, imminent, developments toward commercialization are taking concrete shape, with major domestic and overseas operators beginning field trials. In addition, specific investments in new social innovations using IoT across various industries, as exemplified by autonomous-driving development projects in the automotive industry, are expanding.」

「Meanwhile, with the accelerated standardization of 5G, the next-generation communications technology expected to serve as infrastructure for a wide range of mobile broadband services, major domestic and overseas operators have begun announcing field trials, and developments toward 5G commercialization are taking concrete shape. In addition, investment plans for new social innovations using IoT across various industries, as exemplified by autonomous-driving development projects in the automotive industry, are expanding rapidly.」

「The growth drivers in the ICT sector are global mobile broadband services and the creation of new social value through IoT (Internet of Things). To steadily implement these management strategies, we will make proactive investments in next-generation IoT/5G businesses.」

「Meanwhile, efforts to accelerate the standardization and partial trial commercialization of 5G, the next-generation communications technology expected to serve as infrastructure for a wide range of mobile broadband services, have become increasingly pronounced. In addition, investment plans for new social innovations using IoT (Internet of Things) across various industries, as exemplified by autonomous-driving development projects in the automotive industry, are expanding rapidly. The development of the wireless communications technologies required for these initiatives has also emerged as a new business opportunity.」

「In September 2016, we acquired Azimuth Systems, Inc. of the United States as part of a strategic investment to prepare for 5G development.」

「In the information and communications network field, data traffic on networks continues to increase as mobile broadband services become more widespread. To address this, the adoption of LTE (Long Term Evolution) and LTE-Advanced, which further extends LTE, is gaining momentum, and demand continues for development related to standards-compliance testing, operator acceptance testing and comprehensive transmission and reception performance testing of mobile devices. In addition, efforts toward standardizing next-generation fifth-generation (5G) communications technologies and developing new services and applications using IoT (Internet of Things) are progressing across a wide range of industries.」

「In the core measurement business, we will strengthen our earnings base in the mobile market, expand sales in the network and infrastructure market, and actively invest in next-generation IoT/5G businesses as we work to achieve our targets.」