Telecom giants Nippon Telegraph and Telephone Corp. and Fujitsu Ltd. said Monday they have formed a business partnership to advance the development of next-generation networks beyond 5G and gain a competitive edge.

NTT Electronics Corp., an NTT subsidiary, will acquire a 66.6 percent stake in Fujitsu Advanced Technologies Ltd. from parent Fujitsu on June 1.

NTT is aiming to create communications infrastructure by using cutting-edge technologies, such as photonics, under an initiative called IOWN, or Innovative Optical and Wireless Network.

Last year, NTT formed a capital and business alliance with NEC Corp. to co-develop 5G technology.

Japanese companies have lagged behind their foreign competitors, including China's Huawei Technologies Co. in the area of 5G wireless network technology. China's growing dominance in the field has also raised security concerns.

==Kyodo

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