JPRS ID: 8262 TRANSLATIONS ONTELECOMMUNICATIONS POLICY, RESEARCH AND DEVELOPMENT

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_

Z FEeRUARY i979 CFOUO 3179~ . i OF i
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- J~~s L/5262
2 February 19 79
~ ~ ~
YRAHSLATdONS ON T~L~COMMUNICATIONS POLICY,
RESEAR~H AND DEIIELOP(~ENT ~
(FOUO 3/79)
U. S. JOINT PUBLICATIONS RES~ARCH SERVICE
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81BLIOORAPHIC DATA 1~ Report No~ 2. ~ 9, Recipient'� Aecei~lon Na.
- sHtieT JpRS L/ 82 62
, t e~n t t e . epon ue
TEtANSLATI0N5 ON ~~LECOMMUNICATIdN5 POLICY~ it~SEA~tCN
ANU b~V~LOpM~NT, (FOUO 3/79) 6�
7. Author(~) 8. Perfamiea Ore~niz~tion Itept,
No.
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JoinC Publicationa Research Service
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As above.
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1 , Ab~tnct~
This serial report containa translationa from ehe world press and radio
relating to worldwide politinal, economic and technical developments in
telecommunications~ computers, and satellite communicationa. Coverage will
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Italy, Japan, the USSR, People's Republic of China, Sweden, and the Netherlanda. `
. ~
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Worldwide
Computers .
Satellite Communications
Electronics and Electrical Engineering
Telecommunications
Telemetry
17b. Ideotlftera/Opeo-Ended Tecm~
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~7PR5 L/8262
2 ~ebruary ~979
TRANSLATIONS ON TELECOMMUNICATIONS PCLICY,
RESEARCH AND DEVE~OPMENT
- (FOVO 3/~9)
CONTENTS PAGE
ASIA
JApAN
NEC-Noneywell Techrtot~ay Tie-Up, N~C Computer StraCegy
Disc~esed
(NIKKAN KOCYO SHINBUN, 4 bec 78) 1 -
Camputer Makers Prepare To Cope With IBM ~-Series
(NIKKAN KOGYO SHINBUN, ll Nov 7$) 4
Nippon Electric Sets Up Overaeas InCegrated Circuit Plants
(NIKKAN KOGYO SHINBUN, 24 Nov 78) 5
Nippon Electric To Produce Digital Exchange~ in Dallas
(NIKKAN KOCYO SHINBUN, 21 Nov 78) ~
LATIN AMERICA
CUBA
'PR~LA' Reports on Upcnming N~~ialined Radio Meeting in
Nuvann
(Leopoldo Formoso; PRELA~ 24 Jan 79) 9
SUB-SAHARAN AFRICA
INT~It-AFRICAN AFFAIRS
Kriefs
Kenya, Tanzania Microwave 11 .
- - a- fIII - INT - 140 FOUO~
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JApAN
N~C-HON~YWELL T~CHNOLOGY TIE-UP, NEC COMPUTER STRA~EGY DISCUSS~D ~
Tokyo NIKKAN KOGYO SHIN$UN in Japanese 4 Dec 78 p 12
/Texr_[ Nippon Electric Comp~ny (NEC)(President: Tadao Tan~lca) hae begun
negotiating wiCh the UniCed States' Honeywel]. Corporat3on~ the world's
Chird ranked computer cnmpany, regarding a computer technology aseistance
contract. T'he time limit for thia negotiation ie until the end of 1979,
whereupon "i� there is no declaration of intentiion by the two, ehe current
contract will expire in 1982." As the negoCiation per se significantly
affecta NEC's computer atraregy, meticulous preparaCions and decis~.on-
making ekille are required.
~
In referring to thia matter, NEC characterizea the current state as "xe-
toeing the mark and calculating the timing for riaing--getting ready to
grapple /sumo symbolisme/" (ExecuCivc Director Akira Koike). Thep are in
the midst of formulating secret etrategies with Chairman of the Board Ko~i
Komateu a~ Che helm.
The baeic policy of the N~C Co~r~.rd the said negotiation ia qutte firm. With
respect to computer hardware, NEC holda that, "in terms of technology level,
NEC has an upper hand; and there is nc:.hing to be learned from the other side."
Speaking in particulars, NEC has developed the world's largeat auper-computer
"ACOS-900," while Honeywell Corporation does not have a ccmparable machine.
Moreover, last spring NEC had tienC samples of comput~er lo;sic element c3r-
cuitry to CII-HB Corporation, ~'rance's largeat computer manufacturer, in
which Honeywell is a capita? oarticipant. In rerms of technology including
LSI element, NEC is superior to Honeywell.
But the fact that NEC is paying several billion yen in technological aeais-
tance contract royalty each year is regarded ae a cantributing reaeoa for
the firm's bullieh positi.on.
Judging from these comments, one would think that the relationship bet~reen
the two fircae ie about to be severed, but that is not really the case. Re-
ferring to NEC's long-term capital cooperation with tregtern Electronic as
an example, NEC Board Chaisman Kobayashi elaboratea on t~e company's empha-
aie on long-term relationships: "One of the easential factors in our firm's
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develnpmene hae b~en ~.nduceion of overeeas eechnoJ.ogy and nurtiuring of the
~ame ae our own. Onr.e we decide on a ti~.~-up, we wgnC the other side eo
reap benefiee from the union as we11." Board Chairman Kobayaehi argues
Chnt the same holde true for Che NEC-Honeywell relationehip. .
Aetually, Honeywell technology ~.e employed 1lberally throughout NEC's
NEAC and ACOS series. The bas~.c technology used in maea pr.oducing the f~.ret
domes~~cally manufaceured "one-m~chi~e," "NEAC-2200" parameeron format m9.ni-
computer owea a great deal. to Honeywell.
In Che meantime, Hon~vwell eaeabl~.si:ed "Nippon HIS" (capital: 1 billion en) �
eh3s summer ae one aspect of atrengehening itis competi.tive /against NEC~aCra-
regy. Ie has be~un independent buainesa Activitiea which center ar~und amall ~
computers. NEC and Honeywell establiahed "NEC-Honeyarell Information Systema"
in October 1972, and wae mr;rke~ing ~uch data pxoceasing related equipment as
key tape nnd ao forCh in concert. Thus, the "Behindhand Overeeae Big Cap~.tal"
Honeywell's direct part~.cipation in the Japanese computer marker, has 1ed to
specv~gtinns regarding the impaired relationehip between NEC and Honeywell.
At the Cime of inauguration of Nippon HIS, William R. Smart, first vice prea-
ident of }toneywell (HIS president) who came Co Japan for that occa8lnn, pre- -
aented quite a low profile on tihe iseue of the techn~logical assis~ance con-
tracr re~..sion: "We expect the cooperative relationship to continue, but I
wonder what NEC's thinking is?"
The prevailing rumor regarding the current negotiation is that NEC has the
upper hand, but there are factora which are not conducive to throwing over ~
Honeywell altogether.
, Let ua look at the overaeas atrategiea of the top three domestic computer
manufacturera to find out why. The top-ranking Fu~i~su, Limited, sigaed an
operational/sales contract with the Siemens A.G. oc West Germany this epring
in a move to gain a foot3~old in the European market. Hitachi, Ltd., also
signed a xechnological ~xchange contract with a national policy corporation
of England--CIL Company--and has formed a Japan-Burope league for combating
the IBM offenaive. ~
NEC appears to be a bit behind in this reapect. Thc?ugh it may claim that '
there is ].ittle to learn from Honeywell's computer �:echnology, it is aCtracted
Co Honeywell's vast software accumulation and its world-wide eales neCwork.
Conaequently, it would be a tug of war between on the one hand NEC su~er- ~
large machine Cechnology (including co~unication) and the royalty question,
and on the other, Honeywell's sales and software strengCh. With regard tc+
royalty, as Hoaeywell would not agree to rescind the entire amount, a suggestion
has been made to apply half the amount toward the sale of NEC euper-large ma-
chines. The NEC executives regafd this as "one possible aolution." They do
not appear to be unreceptive to the iciea. .
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Une more Ching, N~C muse make g deci.sion regarding iti~ computiar ~?rchitecture
(basic design conc~pr.) soon. This summer, Mi.teubiAhi Electiric announced
itg intenCion to devalop IBM compatible machines. As a reaulti, NEC and
Taehiba gr~ ~he only ewo domestic Firma ro go �or non-compatible format.
Currently NEC (1) does no~ intend to make a transitiion to compaCible machinea
in so far a~ Che hose compueere--Che moat importan~ of which is the CPU un~.t--
nre concerned;(2)terminnla gnd peripheral equipment for diatributed proces-
sing, however, wil~. be compatible. ,
To the degree thae NEC strengthene ita Cie with Honeywell, non-compatible
orieneaeion will be etY~essed. But in ehe world markee place where IBM has
a deciaive edge, it is certain that IBM compatible machines wi11 continue to
dominate. In order for the domes~ic tmnufacturers to grow, there is no other
way but to ahifC the emphasis from the saturated Japanese market to the over-
seas arena. Hence, the current negotiation's aim is a complex one and not
~ust a matter of royalty. NEC Comput~r Divi.eion's higheat auChority, Execu-
tive Uirector Kaike, moved away from his somewh~t bu111ah stanae at the begin-
ning of,spring, to a more flexible attitude: "We would like Co decide after
carefully weighing the mer~.~s as well as Che demerits of the question."
This ia nothing more than a apeculation, but in place of the exiating tech-
nological asaistance contract, a stronger t~.e-up in the operations/sales
sectora could result. Boa~d Chairman Kobayashi, well known as the bulldozing
entrepreneur and the number one power, ia currently visiting Europe. How he
cultivates the European market and faces the negotiation with Honeywell next
y~ar wi~.l be of great inCerest.
COPYRIGHT: Nikkan Kogyo Shinbunaha 1978
11460
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' JAPAN
COMI'UT~R MAKEItS PREPAK~ TO COPE WTTH ISM E-SERIES .
Tokyo NIKKAN KOGYO SH~iBUN in Japaneae 21 Nov 78 p 15
[Text] In order to cope w3th IBM's offeneive campaign and stiff competition ~
on the domeaeic ecene, the varioua computer firme all plan to reinforce the3r
SE (salea engineer) staffa and businesa operatione. This iffi an attempC to
compete with Che atrong probability Chat IBM will announce in January, or
February at least, its E-seriea computier syetem, wh~.ch ia its Future Syatem
(FS) machine, by developing a competitive new syatem and the redistribution
of manpower from the bueiness point of view.
Actually, Fu~iteu (Fu~i Tsuahin, Fu~i Communicationa) (president, Daisuke
Kobayashi) has a three-year plan in the blueprint stage to reinforce their SE
organization, while Nippon Univac (president, Jiro Fukunaga) hopes to rein-
force i~s progxam by retraining ita firat-line salesmen. Elset,ihere, Hitachi
Ltd, NEC, Mitsubiahi. Denki (Miteubishi Electrical Machinery), and Tokyo Shi- '
baura are seriously conaidering preferential reinforcement of their sales
staff in the computer sales field and the expansion of their eales agency net-
works. The reaeona for the decision by the various computer firma to reinforce ~
' their salea staff are: (1) The growing trend in cut-rate competition wiCh
20-30 percent discounta on computer syatems; (2) The 8100 Iaformation System ~
and Syatem 38 announced by IBM in October have a two-fold gain in coat-perform-
ance, and in addition, IBM ie iacreasingly stresaing cost-effectivenesa; (3)
The domestic market for large machines ia saturated, and future salea will
be mostly in replacements.
Furthermore in view of IBM!s plan to announce in January or at least in Feb-
ruary, its E-seriea, whtch reportedly has a four-fold gain in coat-performance
and which might precipitate open warfare on the domeatic market, a reorganiza-
_ tion of bu~inesa operationa at thia time seems warraated. ~
� Reinforcement of its SE ataff is also the cornerstone of Fu~itau's buainess
strategy, but its plan, which calls for a threefold increa8e of its SE staff,
ia still in a preliminary stage. Japan Univac plans a gradual but effective
redistribution of ita sales staff, and it intends Co push ealea of smal.l
machines auch ae the BC7 as well as the sale of large ~aachines.
COPYRIGHT: Nikkan Kogyo Shinb~u?aha 1978
5576
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JAPA?~d
NIPPON CLECTRIC SET5 UP OVERSFAS TNTEGRATED CIRCUIT PLANTS
Tokyo NIKICAN KOGXO SHINBUN in Japaneae 24 Nov 78 p 15
[Texti] NEC (Nippon Electric) (president, Tadao Tanaka) has _
revealed rhaC in order to promote the development of overseas
marketa for Cheir semiconducCor devices, mainly IC's, they `
plan to reinforce their manufacturing bases in the European
_ theater during FY 1979, and also to diapatch Naoahi Nakamura,
attached to the chief of NEC's IC Department, as vice-
president to operate as a aubsidiary of the Electronic Arrays
Company in Che UniCed 5tates, following the already agreed
upon purchase of the company. With this series of moves to ~
reinforce Cheir operations, NEC hopes to establish manufac-
turing capabiliCy in trie United States, and in European and
Southeast Aaian areae.
In Apri1 1976 NEC eatablished NEC-Ireland in Aallaiba outside Dublin, Ireland,
to sesemble TT1's, 4K RAM's, and this year, 16K RAM's to supply ECM couatriea
through their local diatributors. Its current annual production level is
1.5 billion yen.
Since employment at this plant has reached 150, which is approaching the 200
hiring limit for this diatr~.ct, NEC has had to consider alternative plans to
enlarge their operation. Currently the following three measures are uader
. cons3deration: (1) The expansion of the present plant and procurement of
additional ~nanpower by offering bus traneportation, etc.; (2} Establish new
plants in other parts of Ire?,and; and (3) Eatablish new manufacturit?g facil-
ities in other ECM countries. In any event, NEC contemplatea large-scale
introduction of automaCed equipment. .
In the United States, negotiations were completed in June with Electronic
Arrays (EA) of Mountain View, California (president, C L Wood), with which
there had already been a basic understanding to buy their firm. The purchase
- was recorded on 6 December at the California Justice Department, which for-
malized the company's status as a subsidiary.
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5ubsequenr].y, Mr Nakamura, formerly chiQf of tiie IC Bueinege Depart~ment, was
lefr aCtached eo the chie� of ~he department but appointed vi.ce-preaidenti in
charge of techno].ogy at FA. Several of Che technical ataff are also expected
to make the move ro iA, Production of PROM's and otiher existing producte ati
EA are to be con~inued iniCially, buti ae soon as tool-up is completed, NEC- `
brnnd produc~s w311 be made and eold ehrough both of ite d3stribueors, NEC-
America and I~I~C-MicrocompuCere. Saheduled target date ie sometime after the
summer o� 1979.
Overseas producCion ia being aggreaeively puraued by NEC wi~h the establ~.sh-
ment of NEC-Treland in 1976, follawed by the establishment of other aubsid-
iaries such as NEC-Malaysia in June o.E the eame year and NEC-Singapore in
August, and NEC-Hong ILong (partly manuractuLing) in May 1977.
'In ndditian, NEC plans to augment its local production facility in the United
- Stiates because of the trade aituation, furthermore to reinforce ita European
operations and linear IC manufacCuring by NEC-de Brazil in Brazil. Combining
this with reinforcement of ita regional distributorship network, it hopea to
arhieve a arable aupply position.
COPYRIGHT: Nikkan Kogyo Shinbunsha 1978
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JAPAN
NIPPON ELECTRYC TO PRODUCE D~GITAL EXCHANGES IN DALLA5
- Tokyo NIKKAN KOGXO SHINBUN in Japaneae 21 Nov 78 p 15
[Tex~] According ro information from induatry sources,
, NEC (Nippon Electric Co) has finalixed its plan to pro-
duce in the UniCed States, with a target date o� 1980,
a time-eharing aystem digital exchange equipment for
central office use. This is in reaponse not only to
recent~.y increasing inquiries from independent American
telephone companies concerning digital telephone ~x-
_ change equipmenty which has resulted so far in suc-
cessfully obtaining orders for equipment for 15 ex-
- changes worth 15 billion yen, but also in consideration
of the fact that, as a re�sult of ~he increased common
inter~st by American and Canadian communicaCion equip-
ment ~akers in digital exchange equipment, competition
has :Lnrensified to the point where only local production
ca~ o~F~x~ the adv~ntages of cost reduction as we11 as
better mRintenance service. Amona Japanese exchange
equirm~nt makers, Oki D~enki (Oki Electric), Fuji
Tsushin tFuji Communications), and NEC have already
been producing EPBX's in the United States, and Hitachi
Ltd reportedly may ~oin their ranks in a year or two.
However, revelatia:~ of the fact that NEC will be making
exchange equipment other than PBX's for central offices,
which wi11 be among the most advanced available, in the
United States, is expected to arouae considerable reac-
tion in industry circles.
- Although the four ma~or Japanese makers of exchange equipment have been
pushing with considerable success the export of EPBX's to the United States,
there is now a movemenC to switch to local production all of the productioa
now exported to the United States, particularly ir. view of Che introduction
of low cost EPBX's on the market by Western Electric, the manufacturing
- arm of ATT, and also taking into consideration the trend towards a stronger
yen.
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~ox orrzcz~ us~; or~Y '
Oki Denki's subs~,diary, Oki Electronice o~ America, had already switched
producCion from iCa cross-bar type PBX's Co EPBX's in 1975, and American
Telecomm Inc, a~oint enterprisa with Fu~i Tsushin, converted ~.est year.
For local manufacture of EPBX's and electronic b utton eelephonea, ~..e.,
key telephones, for the U.5. market, NEC built a p],ant in Irving near Dallae,
Texas, which atarCed production in July. Thic~ repreaents NEC's first manu-
facturing planr venture in the United States. It is rumored that Hi~achi
LCd is aleo seriously considering fu11-scale production of ,j"rnX`~ in Atlanta
_ in a year or twc;. ~
Aa can be seen, ~he four ma~or Japanese companies are acceleL~ating their
EPBX production in the United S~ates, and they have also launched vigorous
sales campaigns. Of these firms, NE~, a~.rhough its first priority is tio get
production runn3ng amoothly at its Da11as plant, has also f3nalized iL�s plan
to manufacture digital exchange equipment here w3.Ch a target date of 1980,
and they have now embarked on concrete atudiea.
According to private sources, NEC has had many inquiries from independent
American telephone companies. This has resulted so far in successfully obtain~ -
ing orders for equipment for 15 central offices. One recent order, worth
1.3 billion yen, was from a telephone company in Florida for digital exchange
equipment for urban and suburban inatallation, and repoxtedly the recruitment
of technicians has already started. TC ia also reported that exchanges which
have already received delivery of ~quipmenC could probably be in operation by
the spring of next year.
_ ITT, Western Electric, and GTE in the Uni.ted States and Northern Telecomm in
Canada are reportedly putting conaidc.ra'~le effort into time-sharing dibital ~
exchange equipment, and the competition to sell to the indepeadent telephone
- companies is keen. From NEC's standpoint, more ordera means more users, such
that improving maintenance service on their equipment becomes increasingly
important. It feels therefore that its competitive position can be improved
by both local production and consulidation of its loca'1 maintenance service
organization.
In any case at a time when four ma~or Japanese firms are realizing EPBX pr.~- ~
duction in the United States, NEC's plan for local producr.ion of digital ex-
change equipment, which is considered to be the equipment of the future, is
expected to arouae reaction in related as well as immediate industry circles.
COPYRIGHT: Nikkan Kogyo Shinbunaha 1978
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l~Uk UA'H'tCtAL il;;is ONI,Y
CUUA
_ ~pR~LA' It~POIt'~S ON UI'CQMING NONALIN~U RAUIO M~~TING IN HAVANA ~
Hgv~n~~ pftF:LA in Spanigh 1855 GMT 24 Jun 79 pA
- [Arti~le by Leopnldo ~ormn~o]
(TextJ Hr~van~, 24 Jnn (~L)--'Che repr~~entntivee of 11 nanalined countxiee
will meeC here in egrly F~bruery--only 7 mont~?s Away from their ~ixth eummit
meeting--to diecueg impnrt~nt mnttere connected with Che field of radio-
~ communications.
Two groups of experts from Che cooperaCinn committee of the nonalined counCries -
rndiobroadcasting organization will purticipnte in thesQ discusaiona and,
nmong othar Chings~ will discu~s the redimtribution af radio frequenciea at
the internationnl level.
This and other Copics will be analyzed by the world administrative radio
conference, which is sluted to be l~eld in Geneva, Switzerland in October.
The first of the two groups will be preaided over by representativea of
Algerian Radio and Television 5ervice and the second by repreaentativea of
"All-India Radio," which specializes in radio broadcnsting by eatellite.
The sesxians will be held from 2 to 6~'ebruary at the "Havana Libre" Hotel
in this capital. Deleggtions from the Democratic People's Republic of
Koreg, Cuba, Cuy~na, Ir~q, Kenya; Ntgeria, Tuniaia, Yugoslavia and zambia
will also participate in the evenr.
T'he nonalined countries' first rndiobroadcaeting conferencc was held in
5arn~evo, Yugoslavia, from 27 to 34 October 1977, and was attended by
54 member countries,
On that occasion~ an action program for the world radio conference~ which
i~ to be held in Ceneva, was outlined and a coordinating committee presided -
over by Yugoslavia organized.
9
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!~'Ok U1~'F'1GIAL US~: ()NLY
~ Th~?t cnmmirte~ inc].ud~d 'I'uni~ia~ Alg~rig~ Guin~~~ Nigerier Togo~ ~'~nz~ni~,
Z~ir~, K~nya~ zambi~~ India~ A~gh~nimC~n, Uemorrgtic Kor~ar Jord~n~ Fraqt
MnlByei~~ Cuba~ P~ru, Pnn~mn and Yugoglpyi~.
Lagt ye~r in Algi~r~, ~h~ grdup of expQreg h~1d their ~ir~C m~pting. ~hi~
~ame grdup will new mp~C in rhi~ ~apiCgl eo begin a~oinC, coordinated
~fEort in Conn~cCion with Ch~ afnremenC~.on~d G~neva confarence.
Th~ finnl d~el~raeton of eh~ A1giQrg meeeing eondemned the ideg of former -
cnloninl power m~~intaining radio se~eions in tihe terriCnries of nonalin~d
cnuntrie~ nnd, b~rau~e oE eheir int~rventionist ngCure~ likened these etations
eo the pre~~nr.e oE n~ocoinni~l miliC~ry basee.
Th~ "pirnee" wnrk carried uue by thp r~dio ~Cationg of cerCain Western
Cnuntrieg, which prdduce ineerE~rencp on the nonalined counCrie~' local
~requenc:iee, was c~l~o danounced.
On Che nttier ti~nd, thr documenC ~xpressed golidgriCy and support far the
radio prngrums broadcase from varioug parts of the world by the naCional
liberetion movpmenes.
One topic eh~t wgs brondly discuaged and which will be debaCpd once again
l~ere cnncerng tlie ~doption of ineasur.es aimed at guaranteeing a more
equitable distribution ~f the fr~quencies at the internaCional 1eve1.
nott~ in tt~e nonnlined cnuntri~s movement and in UNESCO~ the un~ust distribu-
eiun oE radio frequencies ~nd the monopolization of the information and
cnmmunications services by rhe large centera of economic power, particularly
the transnational companies, has been denounced.
The participants at these meetings will also take part in activities,
incl~ding a visit to the Palace of Congreases, which is currently under
construction and will be used as seat of the sixth nonalined summit next
September.
C50: S500
10
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~Olt d1~F'~CIN, U5~ ONLY
INT~R-A~RI~AN A~~AIIt5
BItI~~S
K~NYA, TANZANIA MICRGWAV~--Fu~itau Ltd. ~nnounced Mond~y that it ha~ won
rwn order~ Eor microw~v~ n~eworkg frnm Kenyx and Tanzania through C. Itoh
~ Cn~ Fi~it~u s~id the order~ werp pl~~~d by Poat~ ~nd Telecom~nuniegtions
Corporationg oE the two Africgn couneri~~~ They are wor~h some 2,000 mil-
lion y~n in a11 whi~h ~nverg equipment, ingtgll~Cion, mainCenance and
personn~l trnining. ~Tzi;t~ (Tokyo MAINICHI DAILY N~WS in Englieh 9.~an 1~
~ SJ
CSO: 5500 ~Nb
;
11
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