If agreement is reached the INCJ may double its previous investment plan and provide 200 billion yen (about $2.5 billion) for a 70 percent stake in the super-company with Hitachi, Sony and Toshiba dividing the remaining 30 percent between them.

Given the synergy between our two teams, we believe this relationship will enable us to offer highly differentiated and scalable products using ClariPhy's Coherent IC and technology portfolio which gives us a clear competitive edge in the optical network markets,” said Vesa Tykkylainen, head of optical networks at Nokia Siemens Networks, in the same statement.

How real is the technology?