The Japanese Ministry of Internal Affairs and Communications plans to conduct overseas testing of a new fiber optic network called the “Universal Operating System,” as reported by Nikkei Asia on May 27. The goal is to reduce reliance on Chinese-made equipment such as Huawei and provide countries with a cost-effective, technologically neutral alternative.
The Network Operating System (NOS) is core software installed in fiber optic transmission equipment or routers to control the transmission and reception of optical signals. Japan envisions pairing this system with universal equipment manufactured in places like Taiwan and then charging users globally for its use.
The testing project is expected to be launched in the current fiscal year, covering over ten countries in Asia, Europe, North America, South America, and Africa, where local telecommunications companies will evaluate its performance and compatibility.
However, challenges exist. Since the system is a collaborative effort among multiple manufacturers, responsibility in case of problems is still under discussion. Efforts are being made to address concerns about system stability.
The issue of de-Sinicization is pressing. Data from the UK research firm Omdia shows that in 2023, Huawei held a dominant 30% global market share in fiber optic network equipment, maintaining its leading position. Another Chinese company, Wuhan Fiberhome International, also ranked in the top five, collectively holding over 35% of the market. In contrast, Japanese companies Fujitsu and NEC together hold only about 5% of the market.
Huawei’s high market share is partly due to long-term support from the Chinese government, using low prices to gain market share. Furthermore, Huawei’s equipment has poor compatibility with other brands, making it difficult for businesses to switch once they adopt Huawei, resulting in high conversion costs.
Many countries are concerned that once their network infrastructure is tied to Chinese products, it becomes challenging to protect information security. Germany has decided to ban the continued use of Chinese technology in its domestic networks.
For some emerging countries that accept Chinese assistance, there is another potential risk: if there is a debt default, control of the network sovereignty could fall into someone else’s hands.
In response, Japan advocates for the concept of “Network Freedom,” encouraging countries not to be held hostage by Chinese products and enabling them to establish independent, secure networks at lower costs.
As early as 2020, Nippon Telegraph and Telephone Corporation (NTT) led the formation of the International Fiber Optic Network organization. This organization has over 150 members, including companies like Sony, Google, and Intel, which have been involved in establishing specifications and standards since the technology development stage.