Japan’s dominant satellite manufacturer NEC reportedly plans to help the country tap growing demand from emerging countries for their own spacecraft. NEC is looking to invest around ¥10bn (US$113m) in a Japan-based factory to start building small…
Japan’s dominant satellite manufacturer NEC reportedly plans to help the country tap growing demand from emerging countries for their own spacecraft.
NEC is looking to invest around ¥10bn (US$113m) in a Japan-based factory to start building small low-cost satellites from April 2014, according to local reports.
The company, an ICT equipment specialist that also claims to hold a 60% share of Japan’s domestic satellite market, was unable to comment before the press deadline.
Reports suggest that NEC has succeeded in lowering the cost of building a small satellite to between ¥6bn and ¥8bn (US$68m-US$91m). Combined with a small satellite launcher being developed by Japanese engineering firm IHI Corp, which will cost around ¥3bn (US$34m), the company is reportedly planning to offer a competitive package to aspiring space nations.
NEC has developed more than 60 spacecraft since supporting the construction of Ohsumi, Japan’s first satellite that was launched in 1970. These have included communications, broadcast and earth observation birds.
As a growing number of companies in mature markets look to emerging economies for growth, NEC announced on 25 December that it had established a branch office in Yangon, in southern Myanmar.
According to the announcement, the new office will begin operations this month to develop Myanmar’s ICT and social infrastructure. The company said businesses around the world are being attracted to the country because of its unique geography, natural resources, and moves towards democracy. However, it said a lack of infrastructure is holding the country back from realising this growth.
NEC claims that only 3% of the nation’s roughly 62 million people subscribe to fixed or mobile services. The local government aims to push this figure as high as 50% by 2015, it added.
Shin Sakamoto, general manager of NEC’s Greater China and Asia Pacific sales division, said: “NEC has been contributing to Myanmar’s communications infrastructure for 35 years through the provision of telephone switchboards, wireless equipment, satellite ground stations and broadcasting systems.
“In the future, NEC aims to continue responding to local needs and strengthening regional business through the provision of international communication networks such as submarine cable systems, ICT infrastructure for industrial parks, disaster prevention systems, security systems, e-government systems and mass-market products such as servers.”
NEC is also planning to open a branch office in the country’s capital city of Naypyidaw.
Another Japanese space company keen to dive into emerging economies is Mitsubishi Heavy Industries, which revealed plans late last year to aggressively ramp up its overseas commercial activities following the privatisation of the H-IIB heavy lift rocket.
With support from both the Japanese export credit agency and the Nippon Export and Investment Insurance (NEXI) bank, the company said it planned to work with companies in Japan and its government to offer complete space infrastructure packages to emerging nations. To this end, the company is currently supporting Vietnam’s plans to develop its space exploration and observation programme.
However, Russia and China have been making the most headway recently in striking up agreements with emerging space nations for their first satellites. A Euroconsult survey in November said 15 satellites are currently under development for newcomers such as Turkmenistan, Laos, and Belarus.
According to Euroconsult, despite the global space sector going through a period of consolidation, demand from government-backed operators acquiring their first bird has helped the industry to enlarge significantly in recent years.
