TOKYO (01/28/2000) - Mitsubishi Electric Corp. is reorganizing the way it sells optical networking equipment in the U.S. with an eye to carving out a larger share of the rapidly expanding market.
It will form Paceon Corp. on February 1 to spearhead its drive deeper into the market, where it has been selling equipment since 1997.
The new company will be charged with "redefining the way Mitsubishi will do business," according to a company statement, and will focus on local development or access network systems that enable the transition from current and previous generation technologies to high-speed systems such as ATM PONs (Asynchronous Transfer Mode passive optical networks).
A company spokesman cited anticipated growth in the subscriber access market as the reason for the reorganization. The company sees the market for subscriber access systems growing more than twofold between 1998 and 2003 to reach $2.8 billion as carriers roll out new services such as DSL (digital subscriber line) and other high-speed data transmission technologies.
Since it entered the U.S. optical networking equipment market, sales have been handled by the Mitsubishi Telecommunications Network Division (MTND) of subsidiary Mitsubishi Wireless Communications Inc. The new company is being created from MTND and will be a subsidiary of the Japanese parent with full independence from Mitsubishi Electric's other U.S. units, the company said in a statement.
Mitsubishi Electric, in Tokyo, can be found online at http://www.melco.co.jp/.