Why did NEC exit 4G/5G base stations?

NEC struggled to reach the scale needed to compete on cost, features, and global support against Huawei, Ericsson, and Nokia. The radio access network business rewards volume, deep R&D, and broad certification. Exiting lets NEC shift resources to areas with better returns, including 6G research and integration services.

Who benefits from NEC’s decision?

Incumbent vendors likely gain. With NEC stepping back, Ericsson and Nokia may see stronger pricing power in markets where Huawei is limited. Carriers will still press for competition through multi-vendor and Open RAN setups, but the immediate tilt favors large suppliers with proven delivery and support.

What does this mean for US carriers?

US carriers, already reliant on Ericsson and Nokia, face fewer alternatives. That can influence equipment pricing, contract terms, and upgrade timing. Investors should watch capex plans, swap programs, and commentary on supply chain stability. Any shift in deployment pace or margins will show up in guidance and backlog trends.

Does this slow Open RAN adoption?

Open RAN continues, but consolidation raises the bar for integration and support. Without NEC, carriers will lean on remaining vendors and system integrators to deliver tested, secure configurations. Expect a focus on reference designs, performance benchmarks, and lifecycle costs rather than pure vendor count.

How does Japan’s 6G strategy factor in?

Japan plans to push 6G research, testbeds, and standards engagement, with meaningful funding expected from 2026 onward. Success will depend on partnerships, competitive pricing, and supply chain depth. Investors should track early trials, power-efficiency targets, and spectrum studies that hint at commercial timelines and vendor positioning.

Global Market Insights

December 29: NEC Exits 5G Base Stations as Market Share Shrinks

ByHuzaifa Zahoor December 29, 2025December 29, 2025

NEC 5G base stations are ending development as of December 29, after losing share to Huawei, Ericsson, and Nokia. This marks a clear shift in the radio access network market, where scale drives costs and wins contracts. For US investors, fewer vendors can mean stronger pricing power for incumbents and tighter supply choices. We explain what this exit means for carrier capex, equipment margins, and how Japan’s 6G strategy could shape the next cycle.