Media, Entertainment and Gaming
ò US film studios Paramount Pictures Corp. and DreamWorks Animation SKG announced their decision to give their exclusive support behind the high-definition DVD format being promoted by a group of companies led by Toshiba Corp. Industry observers see the shift of Viacom Inc.'s Paramount to the HD DVD format as a major setback for Sony Corp., Matsushita Electrical Industrial Co. and others that have been pushing the Blu-ray disc technology. Observers note that the major Hollywood studio had previously released its titles in Blu-ray, a next-generation optical disc format, and HD DVD, which was developed by Toshiba, NEC Corp. and other companies. The report said both Paramount and DreamWorks Animation opted for the lower manufacturing costs and high-quality technology of HD DVD in preparation of the release of its major productions by autumn.
Internet
ò According to its president, Acca Networks, a Japanese DSL provider, has plans to set up partnerships with other companies to offer WiMAX services. The official said that the company aims to put together a plan for the new services it is offering even as it sees alliance with other firms as a way to widen operations and generate funds. In what it envisions as a joint venture for the new services based on WiMAX, Acca said it will retain a majority stake in those partnerships. Acca is one of the companies in the country trying to secure government licenses for the next-generation high-speed wireless communications services. Industry sources indicate that the countryÆs communications ministry is set to grant WiMAX licenses to one or two companies.
Mobile/Wireless
ò The countryÆs Ministry of Economy, Trade and Industry reported that it is spearheading a campaign that would see leading consumer electronics manufacturers notifying consumers about product recalls by means of mobile phones. Under the present system, purchasers can register through a variety of methods, including the use of postcards that come with the products. With the new scheme, home electronics manufacturers would install information in their products using the QR code or IC tag systems. Manufacturers can then notify consumers about product safety, recalls and after-sales service by e-mailing to their cell phones. The ministry said that it has plans to request for funds to help set up the project.
ò Matsushita Electric Industrial (MEI) revealed that it will cover the direct costs of a battery recall affecting 46 million Nokia mobile phones. MEI is the parent company of Matsushita Battery Industrial, which manufactured the batteries. MEI placed the costs to be covered at between 10 billion yen ($86 million) and 20 billion yen ($172 million), with the company accruing those costs in the first half of 2008. The costs include money Nokia had to spend on logistics and call centers as well as the replacement battery costs.
Hardware
ò Sharp Corp. announced the unveiling of a prototype of what the company described as the world's thinnest, lightest and most energy-efficient LCD TV. The 52-inch model is only 2-cm thick, weighs 25 kg and consumes 140 kwh per year, compared to the firmÆs current 52-inch model, which is 8.1 cm thick and weighs roughly 50 kg. Sharp said the prototype also uses half the conventional model's power and one-fourth of that used by a comparable plasma TV.
ò Fujitsu announced the development of a laptop with a biodegradable chassis, which was made from a cornstarch-based plastic expected to decompose within months. The product has been dubbed the Fujitsu LifeBook. Cornstarch-based plastics release 15 percent less carbon emissions than traditional plastics, which are made from non-renewable materials, including oil, coal and natural gas. In other related developments, Fujitsu said it has also manufactured mobile phones and point-of-sale terminals with the biodegradable plastic.
Semiconductors
ò According to the Japanese government, the Economy, Trade and Industry Ministry is setting up a project aimed at developing a high-performance computer chip with a processing speed ten times faster than existing ones. The ministry will be working with the industry from fiscal 2008. The project is looking to boosting the semiconductor performance by making a "3-D" semiconductor to be used for technologies related to products like domestic robots. The ministry disclosed that it will seek funding of about 1.5 billion yen ($12.8 million) for the project. The ministry said it will also join leading domestic semiconductor companies, such as Toshiba Corp. and Fujitsu Ltd., for the five-year project.
Information Technology
ò Sony disclosed plans to sell a satellite navigation accessory, which turns its handheld PSP game consoles into a navigation device. Industry observers see the PSP equipped with the global positioning (GPS) accessory as competing with dedicated navigation devices such as those made by TomTom and Garmin Ltd. According to an official of the firmÆs European games unit, the accessory would be priced between 100 and 150 euros ($135-$200). In a separate development, Sony said it is set to launch also an accessory for its flagship PlayStation 3 that will turn the games console into a digital video recorder.
Korea
Internet
ò South Korea announced the opening of a virtual reality i-Fashion store that is expected to help enhance customer choices and boost clothing sales. To be operated by the Shinsegae Department Store, the store is considered to be the first of its kind in the world, and aims to use the country's IT infrastructure to help consumers choose clothes without actually going to stores. The i-Fashion Clothing Technical Center at Konkuk University and clothing manufacturer FnC Kolon Corporation built the system with support of the Ministry of Commerce, Industry and Energy. Shinsegae is South Korea's second-largest department store chain. In a related development, FnC Kolon announced it will operate its own i-Fashion store beginning in November.
Mobile/Wireless
ò According to Hanaro Telecom's chief marketing executive, the company is planning to begin selling mobile phones early next year. The move is a response to the development that will see the Korean government opening up the three-way mobile service market to more players. The official said the company is planning to launch the Hanaro Mobile service by bundling it with its existing portfolio of broadband Internet (Hanafos), home telephone (Hanaphone) and Internet-based TV (Hana TV) services. At present, the government has allowed only three firms, namely SK Telecom, KTF and LG Telecom to provide mobile services in the country. South KoreaÆs minister of information and communication, however, has promised to break the monopoly by approaching existing players to lease their network lines to new players at reasonable prices.
ò According to its chief executive, KTF is negotiating with Apple to sell the highly popular iPhone in South Korea. iPhone is Apple's mobile gadget that is a hybrid phone, music player and Internet browser. Even with its massive popularity in the U.S., no plan about its release in the country and other Asian markets has been released. KTF said it is waiting for the decision from Apple.
ò Market sources show LG ElectronicsÆ mobile phones beating those coming from Samsung Electronics. LG Electronics posted its largest-ever quarterly operating profit of 313.2 billion won ($332.5 million) in the cell phone sector, while Samsung Electronics reported a decrease in sales and operating profit. LG Electronics says its phone sector generated 2.7 trillion won ($2.8 billion) in sales in the second quarter of the year. LG attributes its good performance to the increase in the sales of its GSM handsets in Europe, as well as Central and South America. The company also noted a growth in the sales of WCDMA cell phones in South Korea, North America and Asia, which contributed to the results. LG reported a 21 percent quarter-on-quarter rise to19.1 million phones sold in the second quarter of the year. The information and communication sector of Samsung Electronics reported earning 4.5 trillion won in sales and 350 billion won in the second quarter. Industry observers note that Samsung focuses on mid-priced handsets while LG works with premium models to get to the business results. LGÆs average sales price climbed from $158 in the first quarter to $160 in the second quarter, while that of Samsung went down from $155 to $148 during the same period. LG Electronics identified demand in emerging markets and in advanced countries, especially for the 3G mobile phones as being the driving force in the market in the third quarter. The company also indicated that the amount of exports will grow, ascribing the results to a rise in the sales of medium and low-priced models.
Information Technology
ò According to the Korea Information Society Development Institute, the countryÆs IT industry is expected to see a 10 percent growth in exports to $125 billion this year. The body said IT exports will contribute more than a third of all South Korean exports and will continue to play a key role in the country's growth engine. This forecast is based on the rise in demand for mobile communications and broadcasting equipment and a turnaround in the countryÆs key export items such as semiconductors and display panels.
Telecommunications
ò SK Telecomm, the countryÆs largest wireless provider, announced that it has assumed a 6.6 percent stake in China Unicom, ChinaÆs No. 2 telecommunication company. The move is seen as a significant advantage for the South Korean firm, which indicated that it will convert $1 billion in bonds issued by China Unicom into full shares. With the stake, SK Telecom also gets the right to appoint executives. SK Telecom signed a comprehensive partnership agreement with China Unicom in 2002. It purchased the bonds in June 2006 on the condition that it would not convert them into shares for one year.
Semiconductors
ò According to one of its top officials, Hynix Semiconductor is looking to dispose of its 200mm chip production equipment from its M8 and M9 lines at a plant in Cheong-ju, North Chungcheong Province. Industry observers see the move as a way for the company to boost its 300mm DRAM business and increase productivity. The official also indicated that it will make an investment worth some 12.5 trillion won (US$13.6 billion) during the latter part of 2010 for the construction of three or four 300mm DRAM plants. Company sources described TSMC, a Taiwanese Foundry manufacturer, as a possible buyer of the M8 and M9 lines. Industry sources said TSMC is engaged in talks with Hynix over the purchase of the equipment for between US$500 million to US$550 million. Another development shows the plans of Hynix reacquiring MagnaChip, which in 2004 was separated from the worldÆs third-largest NAND supplier.
China
Internet
ò The Online Copyright Alliance of Internet Society of China (ISC) announced that it will set up a copyright information bulletin platform with the aim of giving better protection to online copyrights. The platform is also seen as hastening the popularization of Internet applications. The present conditions describe online copyright information as opaque, which gives few chances for Internet companies to buy copyrights from the original creators. Industry observes see this situation as bringing about a number of fraud cases and even impeding the development of Internet services in the country. According to ISC, the new platform will help in the circulation of legal works and carry out certification on the copyright of relevant copyright owners. ISC said it will also set up a copyright dispute intercession center to coordinate and solve the disputes between copyright owners and Internet companies.
Software
ò RedHat, one of the world's largest open source providers and Linux software providers, announced its entry into Chengdu by way of Sofmit, the largest outsourcing software company in Sichuan Province. RedHat and Sofmit announced that they have established a RedHat Southwest SOA Solution Center and China SOA Service Center in Chengdu, which is considered by observers as the biggest strategic move that RedHat has taken since it entered the Chinese market in 2000. The two companies said following the set up of the two centers, RedHat, Sofmit and Chengdu Tianfu Platform Software Outsourcing Company will work with other learning institutions to train talent for the development of high quality and low-cost Linux system and open source solutions. The value of the investment was not disclosed.
ò According to media sources, Microsoft has asked Jiangmin, Kingsoft and Rising, Chinese domestic anti-virus software companies, to start advocating the importance of online security. The three rivals jointly called on the users to up their anti-virus awareness as they also develop the habits appropriate to creating safe online behavior. The companies have also worked out six principles for online security.
Hardware
ò Media sources reported DellÆs opening of a direct sales store in Beijing's Zhongguancun area to sell a variety of Dell laptop computers and to provide Dell's standard after-sales service. The opening of a direct sales store is not anymore unusual for Dell but the choice of a key IT zone of Zhongguancun is considered significant by observers. The company has been working on setting up its distribution services globally.
ò Industry sources reported the tripartite cooperation among Suning, Siemens and Sony. The three parties have formed a 3S Alliance, with the S indicating the initial letter of the three parties. Under the agreement, the three companies will work on a range of businesses ranging from product development, marketing and after-sales service to jointly increase their capacity in serving high-end consumers in China. The three parties also revealed their areas of priority, where they will first form a medium and high-end product R&D platform to develop value-added products for individual consumers. The companies will then set up a marketing alliance, after which they will jointly offer new service experiences to consumers. Under the agreement, Siemens and Sony aim to provide their latest products to Suning and offer discounts to consumers who buy a whole set of Siemens or Sony electrical appliances.
Semiconductors
ò Qimonda and Semiconductor Manufacturing International Corporation announced entering into an agreement to widen their existing cooperation on the production of standard memory chips, which are also called DRAMs. The agreement will see Qimonda transferring its 80nm DRAM trench technology to SMIC's 300mm facility in Beijing. The deal will also enable SMIC to manufacture DRAMs for computing applications in this technology exclusively for Qimonda. The agreement includes the option to transfer Qimonda's 75nm technology to SMIC in the future.
ò Changhong, a Sichuan-based TV manufacturer, announced its investment of 1.9 billion yuan ($251 million) to produce plasma televisions. The company said it also plans to issue no more than 400 million A shares in a bid to generate 2.8 million yuan ($370,000), with the plan to spend some 1.9 million yuan ($251,000) in the acquisition of 75 percent of the stake of Sterope Investments B.V. With shares in Sterope, Changhong will then hold the shares of South Korea's Orion PDP, which is the only Multi-PDP manufacturer in the world. The South Korean firm is the holder of about 67 patent applications, 193 invention patents, 47 new and applicable patents and a dedicated development team as well as an extensive marketing network. Following the acquisition, Changhong will become the first Chinese television maker with the capacity of producing plasma screens even as some industry observers are not sure about the capability of the firm to produce plasma screen in large quantities by 2008 and how it will respond to the declining price of plasma TV.
ò Nokia-Siemens, a joint venture company between Nokia and Siemens, announced plans to boost the development capacity of their R&D center in Chengdu, with the aim to transform it into one of their largest R&D centers in the world. The expansion of the R&D center in Chengdu is part of Nokia-Siemens' strategic plan in China. Media sources reported that the R&D center in Chengdu is expected to meet the needs of both telecom industry clients and local partners.
Taiwan
Mobile/Wireless
ò Chunghwa Telecom (CHT) announced launching a mobile music download service in Taiwan through cooperation with ezPeer+, also a Taiwan-based online music platform operated by Darling Digital Technology. CHT said that through the service, members can download for a fixed monthly payment of NT$249 ($7.6). However, the company noted that the service is currently limited only to those using certain CHT-branded handsets. CHT said it aims to attract 50,000 members to its service by the end of this year.
ò Qisda, formerly known as BenQ, announced after-tax net profits of NT$570 million ($17.3 million) for the second quarter of 2007, ending six months of consecutive losses. The company attributed the turnabout mainly due to gains from the sale of its AU Optronics (AUO) shares. Qisda reported consolidated sales of NT$32.3 billion ($976.4 million) in the second quarter of 2007. The company explained the sales growth as brought about by the contributions from the multi-function printer and LCD monitor sectors. Qisda said it has cleared about 70 percent of its handset inventory, aiming to clean out the inventory by the end of the third quarter.
Ventures/Investments
ò According to a company filing with the Taiwan Stock Exchange, Astro Corporation, a Taiwan-based maker of arcade/casino gaming machines will indirectly invest $3 million to establish a joint venture (JV) in Beijing, China. The new entity, which will engage in R&D and marketing of gaming machines, has not been given a name yet. Media sources indicate that Astro will negotiate with China-based partners to finalize the investment project. The company said it plans to set up subsidiaries to develop software and assemble gaming machines in southeastern China.
Hardware
ò Advantech, the largest Taiwan-based maker of industrial PCs (IPCs), announced its decision to change its existing centralized organizational structure into four relatively independent business groups. According to its company chairman, the decision is in line with the transformation of its business focus from marketing products to providing service platforms catering to specific user industries. The four business groups will be: embedded platforms focusing on embedded systems and customized products, industrial automation targeting the manufacturing industry, automation catering to service industries, and industrial motherboards which will be handled by Advansus Computer, a joint venture between Advantech and Asustek Computer. The company explained the move as spurred by the aim of the group to transform itself from a multinational company into a globally integrated enterprise. Advantech also released its financial report for the first half of 2007, posting net profits of NT$1.4 billion ($42.3 million) and consolidated revenues of NT$7.6 billion ($231 million).
Hong Kong
Telecommunications
ò Hutchison Telecommunications International Ltd. reported its net profit climbing to HK$70 billion ($9 billion) from the HK$2 million ($256,383) it has posted a year earlier, with the company attributing the surge to the sale of its Indian unit. The company also disclosed that it has set aside some HK$40 billion ($5.1 billion) generated from the sale for new investments. The company said its revenue went up 12 percent to HK$9.6 billion ($1.2 billion) from HK$8.5 billion ($1 billion). Hutchison Telecommunications revealed its plans to have a dividend payout next year of at least 30 percent. Hutchison Telecom operates second-generation mobile-phone services in Hong Kong, Thailand, Israel, Macau, Sri Lanka, Indonesia, Vietnam and Ghana. It operates third-generation services in Israel and Hong Kong and has a fixed-line business in Hong Kong.
Media, Entertainment and Gaming
ò According to industry sources, NetDragon, a Chinese game company, may launch its IPO on the Hong Kong stock exchange in October 2007 to raise HK$800 million ($102 million). Founded in 1999 in Fuzhou, NetDragon publishes its titles in 6 different languages including English, Japanese, and Spanish and retains about 900 employees. The companyÆs in-house developed MMORPG, Realm of Chaos now has registered 550,000 peak concurrent users.
Mobile/Wireless
ò PCCW Limited announced the launching of NETVIGATOR Everywhere, a wireless broadband solution that integrates Wi-Fi and mobile networks. The release of the product marks the first time such service is provided in Hong Kong. The service delivers automatic selection of the best connectivity among PCCW's Wi-Fi, High-Speed Downlink Packet Access (HSDPA) and 3G capabilities running in parallel under an integrated service plan. For availability of the service, users plug an Auto Network Selector device into a notebook to roam between PCCW Wi-Fi hotspots and PCCW mobile's extensive 3G network, which is powered by 7.2Mbps HSDPA capability. Industry observers note how PCCW is emerging as a strong firm able to provide wireless connectivity, following the installation of more than 3,000 Wi-Fi hotspots around the territory.
Singapore/Malaysia/Philippines/Indonesia
Internet
ò Singapore-based interTouch, a leading broadband Internet provider to the hospitality industry, announced that it has secured a contract to provide broadband service to Grand Hyatt Tokyo, the flagship hotel of the Global Hyatt Corporation chain in Japan. Grand Hyatt Tokyo is the third in the Hyatt hotel chain in Japan to be equipped with interTouch technology, after Park Hyatt Tokyo and Hyatt Regency Hakone. The latest alliance brings the number of hotels in Japan offering interTouchÆs broadband solutions to twenty-one. The company said the three-year contract will see interTouch providing Grand Hyatt Tokyo a total of 468 access points, including 65 wireless points, to cover public areas, meeting rooms and guest rooms.
Telecommunications
ò Media sources reported that Fitch Ratings has upgraded Globe Telecom Inc's long-term local currency issuer default rating to 'BBB-' from 'BB+' with a stable outlook. According to Fitch, the ratings indicate what it has perceived to be the companyÆs strengthening financial profile through 2006 and the first half of 2007, a development that is marked by a steady improvement in EBITDA margins and significant reductions in both gross and net debt-levels. Fitch said it looks to Globe maintaining its position in the industry.
ò PT Sinar Mas Telecommunications announced plans to become the 10th mobile-phone operator in Indonesia. The company said it plans to build a network capable of serving 1.4 million users by the end of the year, with the aim of attracting some 700,000 users this year, after starting services next month. Industry analysts consider the figure unrealistic, comparing it to PT Bakrie Telecom, a unit of Indonesia's PT Bakrie & Brothers, posting 446,000 subscribers in the second quarter, and PT Mobile-8 Telecom, Indonesia's fifth-biggest mobile-phone operator, with 230,000 new users in the same period. About a third of the countryÆs 235 million people have access to phone services. According to Sinar Mas, it will initiate the service using Qualcomm Inc.'s code division multiple access (CDMA) technology, in Jakarta and four other cities in West Java.
ò According to market sources, PT Indosat, IndonesiaÆs second largest telecom operator by subscribers, is increasing its capital expenditure for this year from$1 billion to $1.2 billion in a bid to expand and improve its networks and services. The companyÆs president revealed that around 15 to 20 percent of the total fund would be spent on network expansion, including work on new base transceiver stations (BTSs), while the remainder would be used to improve services. By the end of June 2007 IndosatÆs mobile arm Satelindo had deployed 8,366 BTSs, a figure that represents 33.9 percent on the 6,248 registered in June last year. Satelindo has seen its base grown from 13.9 million in June 2006 to 20 million a year later. In addition, Indosat reports that its fixed wireless subscriber base has climbed 132.3 percent from 208,100 in mid-2006 to 483,400 by end-June 2007. The company reported a 33.3 percent rise in its overall revenues in the first six months of this year to $826.8 million from $606 million in the first quarter of 2006.
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