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Telecommunications industry

Japanese Fiber Optics Executive Calls for Global Cooperation in Trade Relations

Strategic Insights

— 2 min read

Tsuneo Nakahara, vice chairman and deputy CEO of Sumitomo Electric Industries (SEI), recently visited Washington, D.C. to express his company's desire for more strategic alliances and global cooperation with U.S. industry and other global partners. His comments come at a time when trade disputes between the United States and Japan have escalated, with both countries threatening to engage in a potentially calamitous trade war.

Despite the tense trade relations, Nakahara noted that the fiber industry has been a notable exception, with players from both countries maintaining a positive relationship. He cited the example of Sumitomo's good relationship with AT&T, and also pointed to the success of Hickory, N.C.-based Siecor Corp in selling fiber optic cables to Japan.

Nakahara emphasized that the two countries' trade arguments do not reflect the relationship between fiber industry players, and expressed his hope that current trade issues would be resolved to everyone's satisfaction. He also highlighted the differences in development between Japan and the United States, particularly in the area of fiber-to-the-home systems, and noted that Japan has less inclination to adopt combined fiber-coaxial cable networks.

Key Takeaways:

  • Sumitomo Electric Industries (SEI) and Hickory, N.C.-based Siecor Corp have maintained a positive relationship in the fiber industry, with Siecor selling fiber optic cables to Japan with some success.
  • Tsuneo Nakahara, vice chairman and deputy CEO of SEI, emphasized the need for global cooperation and strategic alliances in the face of escalating trade disputes between the United States and Japan.
  • Japan has less inclination to adopt combined fiber-coaxial cable networks, and Nakahara noted that present coaxial cable is not reliable enough and needs new development.
  • The Japanese telecom giant, Nippon Telephone & Telegraph (NTT), is planning an advanced Broadband Integrated Services Digital Network (B-ISDN) service test and has been conducting research and development in fiber-to-the-home systems.
  • SEI has strung a total of 126,900 fiber kilometers (km) in Japan as of 1993, up from 62,000 km in 1990.
  • The company earned total equivalent consolidated net sales above $16 billion in fiscal year 1992.

Statistics:

  • The U.S. trade deficit with Japan is $59.3 billion.
  • SEI has a 40 percent share of Japan's fiber optic cabling market.
  • SEI strung a total of 126,900 fiber kilometers (km) in Japan as of 1993, up from 62,000 km in 1990.
  • The company earned total equivalent consolidated net sales above $16 billion in fiscal year 1992.

Sources:

  • Tsuneo Nakahara, vice chairman and deputy CEO of Sumitomo Electric Industries (SEI), in an interview with Senior Editor Charlie Hartley.
  • Otto Szentesi, executive of Hickory, N.C.-based Siecor Corp.
  • "Super 301" trade provision renewed by the Clinton administration.
  • Sumitomo Electric USA Inc.
  • Nippon Telephone & Telegraph (NTT)

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