Nissan Motor Co. announced Thursday that its group will start receiving total information network services from Japan Telecom Co. next month in an effort to cut telecommunications costs and establish seamless global networks.
Nissan has used various carriers and protocols to date in attempts to construct its own information and communications network linking about 530 group companies worldwide.
But the firm will start replacing existing networks in June with high-speed, low-cost international information networks, all provided by Japan Telecom. A virtual private network will be used for voice transmissions and Internet-protocol-based networks will be built for data services.
Japan Telecom will also manage operations of network equipment for the Nissan group.
Nissan and its group firms in Japan spend more than 15 billion yen annually on telecommunications, but they can reduce the expense by 30 percent, said Shozo Kurihara, a Nissan vice president and chief information officer.
The new networks will link Nissan with more than 7,000 group companies and outlets throughout the world, Kurihara said. He also noted that Nissan is planning to jointly build an information network system with Renault SA, which has a 36.8 percent stake in the Japanese automaker.
Japan Telecom will provide the advanced worldwide network services by connecting its own PRISM IP-based network in Japan with international IP-based networks developed by Concert, a venture established by AT&T Corp. and British Telecommunications PLC. Japan Telecom formed capital tieups with AT&T and British Telecommunications last year.