Company Profiles - NEC Australia

NEC Australia


With a renewed focus on business-to-business communications and a dynamic broadband and mobile phone R&D centre, NEC Australia is developing and packaging a wide range of new technology for the global market.

The story so far


Established in Victoria in 1969, NEC Australia is a leading supplier and integrator of ICT solutions to carriers, government and businesses.

Backed by the NEC Corporation – a global giant in telecommunications, computers and electronic devices – NEC Australia develops and deploys advanced IT and network communication solutions for a range of government and business customers.

Originally set up to supply early microwave technology to former monopoly carrier Telecom, NEC Australia has grown from a handful of employees to a dynamic operation, with 822 staff and one of the corporation’s three global research and development centres.

NEC Australia offers a range of services to Australian and international customers including IPPBX, broadband access systems, systems integration, hosted applications and network services along with a wide range of digital signage and data technology products. Major clients include the Australian Taxation Office, the Department of Families, Housing, Community Services and Indigenous Affairs as well as other large and small businesses.

Despite the current global economic crisis, NEC’s head office in Japan recently confirmed its long-term commitment to NEC Australia’s broadband and mobile R&D centre.

The centre employs around 140 research engineers in Melbourne, working on projects such as fibre-to-the-home and fibre-to-the-node as well as major research into LTE and 4G mobile phone platforms.

“We’re a bit unusual in the NEC family because a lot of what we do here is design and development, which is sold back to the parent company or exported to other international clients. Over time we’ve proved ourselves and this has been acknowledged and supported,” said Wataru Takeuchi, Managing Director, NEC Australia.

NEC Australia has exported nearly $1.5 billion of telephony-related products since 1990. The company spends an average of between seven and nine per cent of annual turnover on R&D.

Reaching new markets


Although R&D exports are a major part of NEC Australia’s business, the company remains a leading telephony vendor, having developed major solutions for government and business in telephony, PBX and IP telephony.

Other important parts of the business are public network products and digital signage such as digital monitors, electronic public displays, electronic whiteboards and medical monitors.

In November 2008, NEC Australia launched a leading edge ‘software-as-a-service’ product that is being sold throughout the world. Called Applications.Net, the product is a one-stop-shop for small-to-medium-sized businesses that fully integrates communications functionality such as telephony, SMS, email and instant messaging – all available via a simple, collaborative online portal that allows customers to pay as they go.

“It’s a great product with more than 30 integrated applications,” said Vincent Kennedy, Chief Technology Officer for NEC Australia’s Applications Centre. “For example, if you’re looking at a customer’s contact details in a CRM or Finance application, you can simply click on the phone number and the system dials it for you.”
NEC Australia is halfway through a four-year Australia Research Council (ARC) project investigating long-reach broadband for regional and remote areas of Australia. It is also working with Monash University on a project to develop new wireless technology for hospitals and with Melbourne University on an ARC project on 4G mobile standards.

Another growing export business is the sale of broadband technology to Hong Kong, Turkey, Romania, Italy and Sweden, with NEC Australia establishing an office in Istanbul in 2004. “Telecommunications is an area that many governments are still investing in despite the economic downturn,” said Mr Takeuchi.

Why Victoria?


Victoria has always been the logical base for NEC Australia. In the early days it was an essential base for servicing Telecom’s Melbourne head office. But more recently it has been important for building R&D relationships with leading Victorian researchers at the University of Melbourne and Monash University.

“This is vital for our current research projects but also as a source of clever people who can go on to work for us,” said Peter Hoy, General Manager Human Resources. In the last five years the company has recruited several young staff from Melbourne’s major universities.

According to Hoy, another advantage of being based in Victoria is the state’s multicultural workforce, which has meant NEC Australia is able to take on extensive translation work in seven major languages for the global NEC Corporation.

NEC Australia has also employed a number of skilled migrants from Eastern Europe, China and India who have been attracted to Victoria for its relaxed lifestyle.

The future


In a recent review of its operations, NEC Australia decided to concentrate on the core part of its business, which is business-to-business and business-to-government communications solutions, rather than consumer products such as TVs and other devices.

“We’re focussing on systems integration rather than just being a ‘box seller’. One of our goals is to put more professional services around our products, which will mean up-skilling our workforce,” said Mr Takeuchi.

The company has recently developed a new telecommunications product for the Victorian Sheriff’s Office to protect officers in the field. The system uses radio wave technology to ensure officers remain in constant contact with head office. If one signal drops out, the system automatically finds another one.

In 2009 NEC Australia received another major ARC grant with Melbourne University to develop standards for the 4G mobile platform. “It’s a massive win. Usually you get little grants but we were given a significant proportion of the last round of funding,” said Mr Takeuchi.

NEC has also signed a significant deal with fibre optics supplier OptiComm to supply fibre-to-the-home communications technology to a number of greenfield developments around Australia.