RealTime IT News

Cisco, Net One in Japan Network Services Deal

Tokyo-based Net One Systems Co. Ltd. will set up a joint venture with Cisco Systems Japan and Mitsubishi Electric subsidiary Melcom Service Co. Ltd. to install and manage e-business networks.

The joint venture, Network Service And Technologies Co., Ltd. (NSAT), will be formally established by the three partners on April 3. The new company will begin its business operations sometime in May.

Net One Systems will hold a controlling 67 percent stake in NSAT, which is to be capitalized at 100 million yen (US$952,000).

Melcom Service will own a 20 percent stake, while Cisco Systems Japan will take an 8 percent share. The remaining 5 percent will be held by NSAT directors.

Tooru Ishikawa, formerly a business communications systems division chief with Lucent Technologies, will serve as NSAT president.

The rapid pace of e-business technologies has made it difficult for many companies to keep up with the continuous investment required to upgrade their network equipment and engineering staff expertise.

NSAT will promote its ability to respond swiftly to tomorrow's evolving business needs and market requirements, thereby enabling its clients to utilize the latest technologies without the need for large investments in equipment and expert personnel.

NSAT will offer three basic types of services: intranet and extranet design and installation, virtual group networking, and 24-hour/365 days onsite and remote network maintenance and management.

NSAT will launch operations with a staff of 65, and expects to expand to 100 employees within its first year of operation.

Net One Systems and Melcom Service, which together have more than 1,000 support personnel at 125 centers in 70 cities throughout Japan, will provide support.

NSAT has set a first year sales target of 2 billion yen (US$19 million) -- three-quarters on consignment from Net One Systems and one-quarter from new customers -- rising to 10 billion yen (US$95.2 million) in fiscal 2004.