Japan Plans Support for Domestic Wireless Equipment to Strengthen Security and Compete in 5G

A Bigger Role for Japanese Network Suppliers

Japan plans to draw up support measures for domestic wireless equipment by mid-2026, seeking to strengthen an industry in which its companies trail global leaders. The Ministry of Internal Affairs and Communications (MIC) intends to work with industry groups to identify priority areas by the end of 2025, with economic security and industrial competitiveness driving the effort.

The proposed support covers wireless base stations, the equipment that connects mobile devices to communications networks, as well as specialized systems used by emergency services and air traffic control. Subsidies, support for private sector research and development, and staff training are among the measures envisaged.

The market figures show the scale of the challenge. Chinese suppliers Huawei and ZTE hold 31.3 percent and 13.9 percent of the global base station equipment market, respectively, according to Omdia data. Together, that is 45.2 percent. Japanese manufacturers Fujitsu and NEC have a much smaller presence, leaving Japan heavily dependent on imported equipment for critical network infrastructure.

As of August 28, 2025, the details of the new support framework are still being developed. Japan's wireless equipment support plan brings together two goals: giving local manufacturers a stronger commercial position and reducing exposure to disruptions affecting foreign suppliers.

The effort comes as countries compete over 5G and future wireless networks. These systems carry smartphone traffic and connect growing numbers of machines, sensors and public services. Japan wants a larger role in supplying the technology behind them, both at home and in overseas markets such as Southeast Asia.

What Base Stations Do

A wireless base station sends and receives data between mobile devices and the wider telecommunications network. Sometimes described as a cell tower or radio access node, it provides the connection that lets a phone or another connected device communicate beyond its immediate surroundings.

The equipment inside a base station helps determine the speed, reliability and security of those communications. Its importance grows as networks carry more data and serve more devices. Modern mobile infrastructure supports ordinary smartphone use, but also the Internet of Things (IoT), meaning connected objects that exchange information, and smart infrastructure.

5G promises very fast connections and the ability to connect billions of devices. As businesses and public services become more digital, the networks supporting them become part of the infrastructure on which daily activity depends. Equipment failures, disrupted supplies or security weaknesses can therefore affect more than individual phone users.

Japan's proposed measures also extend beyond the commercial mobile market. Emergency services and air traffic control depend on specialized wireless equipment, making reliable supply and continued technical capability important for essential public functions. Supporting these systems alongside base stations gives the policy both an industrial purpose and a public safety dimension.

Why Supply Chains Have Become a Security Issue

The MIC has identified economic security as a central reason for supporting domestic wireless technology. In this context, economic security means maintaining access to equipment and technical capabilities that a country needs, even when international tensions or supply disruptions make purchasing from abroad more difficult.

Japan's reliance on foreign equipment creates concerns about supply chain vulnerabilities, cybersecurity and possible foreign influence over essential communications infrastructure. Building local capacity is intended to reduce those risks while giving Japanese companies more opportunities to develop and sell their own technology.

Huawei and ZTE have become a focus of security concerns in several countries. The United States, Australia and New Zealand have restricted or banned Chinese telecommunications equipment from their networks, citing security risks. Those concerns include possible backdoors, weaknesses in equipment supply chains and the risk of foreign interference in critical infrastructure.

Japan has taken a similar direction, effectively barring Huawei and ZTE from supplying government agencies. Japanese mobile operators have also selected suppliers other than Chinese companies for their 5G deployments. The government's procurement stance and the operators' equipment choices form part of a broader move among the United States and its allies to separate sensitive networks from suppliers they regard as security risks.

Domestic production is one part of Japan's response. The wider strategy also relies on trusted foreign suppliers and international cooperation. Japan is seeking greater control over essential capabilities while continuing to work with overseas technology companies and partners.

What the Government Plans to Support

The planned framework would support the latest base station equipment and specialized wireless systems. Government assistance is expected to include subsidies, research and development support, workforce training and incentives for private sector innovation. Industry groups are due to help identify the areas where assistance should be concentrated.

The timetable sets out two stages before the policy takes its final shape:

• August 28, 2025: The proposed support framework remains under development, with its detailed measures still being finalized.
• By the end of 2025: The government plans to identify priority areas for support in cooperation with industry groups.
• By mid-2026: Specific support measures are expected to be drafted.

Research funding would help companies develop equipment, while training would build the workforce needed to design, produce and maintain it. The proposal recognizes that a stronger industry requires both technology and people with the skills to bring that technology into use.

Private companies and industry groups are expected to help shape the final framework. Their involvement is intended to direct support toward areas where it can make the greatest difference, linking government priorities with the practical needs of equipment manufacturers and network operators.

Fujitsu and NEC Face a Scale Challenge

Fujitsu and NEC are Japan's principal telecommunications equipment vendors, but both have struggled to gain substantial global market share against Huawei, Ericsson and Nokia. Japan's strength in other technology industries has not translated into a similarly strong position in the worldwide market for mobile network equipment.

Huawei's 31.3 percent share and ZTE's 13.9 percent share illustrate the concentration of the base station market. Their combined 45.2 percent puts the size of the task into perspective for Japanese suppliers seeking a larger international presence. The government's plan aims to improve the conditions in which local companies compete.

Japan hopes that research support and workforce development will help companies create better products, win more business and sustain further investment. The commercial and security goals are closely connected: a supplier needs customers and technical strength to remain a dependable source of essential equipment.

Building that position will require sustained investment, coordination and international engagement. Japanese companies must develop competitive technology, expand production and win orders in domestic and overseas markets. Government support can contribute to those efforts, while the companies still face established rivals with much larger market positions.

Cambodia Offers a Route into Southeast Asia

A joint venture between NTT Docomo and NEC is testing a wireless network in Cambodia, with the aim of providing 5G services. The project is part of a wider effort to capture demand in Southeast Asia and offer an alternative to Chinese equipment.

Cambodia gives Japan's international ambitions a concrete focus. Japanese suppliers are seeking opportunities beyond their home market, where overseas deployments can help them build business and demonstrate their equipment in use. The effort also reflects Japan's desire to counter China's strong position in the regional telecommunications sector.

Japan wants its companies to be recognized as providers of secure, reliable wireless infrastructure. Exporting domestic technology and building international partnerships are central to that ambition, connecting the policy at home with commercial opportunities abroad.

The approach also fits Japan's growing openness to foreign technology and collaboration, including partnerships between start-ups and large companies. Supporting local capabilities and working internationally are both parts of the strategy, rather than separate ambitions.

How the United States and China Shape the Competition

The United States has developed a national strategy for 5G and future wireless innovation that brings together government, industry and universities. Its priorities include research, management of radio spectrum and investment in infrastructure. Spectrum is the range of radio frequencies that wireless services use to carry signals.

The Federal Communications Commission's Rip and Replace program is another part of the American response. It is intended to remove equipment considered untrusted from communications networks and promote domestic alternatives. Japan's proposed assistance shares the focus on security and competitiveness, though its measures reflect its own industrial needs.

China has expanded its 5G presence through centralized spectrum management and heavy investment. The competition extends beyond equipment sales to economic growth, national security and geopolitical influence. Countries that help shape global technical standards can influence how future communications systems are developed and deployed.

The United States and its allies have sought to coordinate policy, align spectrum bands and build partnerships around shared values. Aligning bands means making compatible choices about which radio frequencies networks use. Japan's international cooperation includes such coordination, alongside exchanges of information about security risks.

Participation in global bodies that set standards also gives Japan a way to influence future networks. Its domestic investment program sits within this wider competition over technology, infrastructure and the rules that help networks operate across borders.

Regulatory Changes Accompany the Industrial Push

The MIC has introduced several telecommunications policy reforms in recent years. These include revisions to the NTT Law and the Telecommunications Business Act, updated guidelines for mobile virtual network operators (MVNOs), and new rules governing the designation of specified telecommunications facilities.

MVNOs provide mobile services using access to another operator's network. Rules affecting these businesses are part of the framework that shapes competition in Japan's mobile market. The wider package of reforms is intended to encourage innovation, support a more competitive market and protect the security and resilience of critical infrastructure.

The new equipment support measures would operate alongside those regulatory changes. Japan is using both industrial assistance and market rules to improve conditions for telecommunications development, rather than relying on equipment subsidies alone.

The government's stance signals a commitment extending beyond a single round of technology investment. Industry participation in the final policy design is expected to help connect that commitment to specific commercial and technical needs.

An Aging Population Gives the Policy a Domestic Purpose

Nearly 30 percent of Japan's population is over 65. That demographic pressure has encouraged the use of automation, robotics and digital infrastructure as companies seek to cope with labor shortages and maintain economic activity.

Japan's wider technology strategy includes applying and improving existing technologies to address practical problems. Examples include automation in construction and agriculture, digital healthcare and technology supporting eldercare. Reliable communications infrastructure supports the broader shift toward connected services and equipment.

The government's role in this approach is to create regulatory and policy conditions that allow experimentation and deployment. Financial assistance is part of the effort, alongside measures that make it easier for companies to develop and use technology. The focus is on practical applications as well as research.

The wireless equipment initiative follows that pattern. Japan is seeking a secure and competitive industry that can adapt to changing international conditions, while building capabilities relevant to its domestic needs. Its experience with an aging society could also support future exports of digital infrastructure and related solutions.

As development moves toward 6G and other advanced networks, the immediate milestones remain the selection of support priorities by the end of 2025 and the drafting of measures by mid-2026. Japan's ambitions depend on local companies turning research, skilled workers and policy support into competitive equipment that customers choose to buy.

Key Points

• Japan plans support for domestic base stations and wireless equipment used by emergency services and air traffic control.
• The MIC intends to identify priorities with industry groups by the end of 2025, with specific measures expected by mid-2026.
• Proposed assistance includes subsidies, private sector research support, training and incentives for innovation.
• Huawei and ZTE hold a combined 45.2 percent of the global base station equipment market, according to Omdia figures.
• Fujitsu and NEC have much smaller global positions, while an NTT Docomo and NEC joint venture is testing a network in Cambodia with the aim of providing 5G.
• Japan's strategy combines economic security, industrial competitiveness, regulatory reform and international cooperation.