Fujitsu separates fibre unit to cut costs

Japanese electronics firm Fujitsu is consolidating its fibre optic network operations into a separate entity by July to cut development costs, a Reuters report said.

Fujitsu, which competes with domestic peers NEC and Oki Electric Industry in telecoms networks, will decide by mid-May if the unit is to remain wholly owned or if it will seek outside capital, a spokesman said, quoted in a Reuters report.

He didn't estimate on how much money the reorganisation would save.

Fujitsu would carve out its Wavelength Division Multiplexing (WDM) and SONET operations from the parent firm and fuse them with its Gigabit Ethernet Passive Optical Networks (GE-PON) operations at wholly owned unit Fujitsu Access. This would then focus on industrial power controllers for factories and telecom systems, the report said.

The majority of Fujitsu Access's business is GE-PON systems.

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