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NEC invests in fibre

NEC is to expand its stake in US subsidiary, NEC Eluminant Technologies, in order to strengthen the development of fibre to the home (FTTH) networks in the US, the company has announced.

The investment will be made through a stock purchase. NEC Eluminant has issued additional shares worth $26m (£18m), which will be bought by Japanese trading firm Itochu and NEC's main US subsidiary, NEC USA, which will invest $18m (£12.5m) and $8m (£5.6m) respectively, a company statement said.

In the US, a backbone infrastructure comprised of optical fibre networks has been built over the past few years, the company said. Demand for high-speed data networks is expected to increase rapidly, and the company predicts that the next investment wave will focus on building FTTH network infrastructure.

NEC Eluminant, which used to be NEC USA's optical access equipment unit, was founded in 1998. The company manufactures and sells products based on passive optical network, a North American standard for FTTH synchronous optical networks.

Supported by the investments made by Itochu and NEC, the company plans to expand beyond North America into the global market for FTTH, the statement said.

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