The CEO of Japan's NEC has declared that, as a general rule, the company will discontinue financing the development of commercial 4G and 5G base stations intended for commonplace devices like smartphones. Nevertheless, it will persist in offering maintenance services for its current product lineup. NEC is set to redirect its efforts toward software development and will keep forging ahead with the creation of specialized equipment for areas such as defense, all while maintaining its commitment to 6G technology research and development. Initially, NEC had viewed the 5G base station sector as a key driver of growth. However, owing to operator investments falling short of expectations, the business has incurred losses. A survey conducted in 2024 revealed that Japanese companies account for a mere 1.4% of the global base station market. Earlier, Kyocera had already pulled the plug on 5G base station development, and Fujitsu had separated its telecommunications infrastructure division as well.