Media, Entertainment and Gaming
ò Industry sources announced Sony Online EntertainmentÆs entering into a partnership with Virgin Comics to launch a massively multiplayer online video game, based on the Hindu comic book series Ramayan 3392 A.D. The series itself is based on the Hindu epic Ramayana. The game will be designed initially for the PC. Sony Online Entertainment is a part of Sony Computer Entertainment America, a division of global electronics maker Sony Corp.
Internet
ò Softbank Corp. announced a 44.9 percent growth in its April-June operating profit from a year ago to 78.7 billion yen (US$667.5 million), a growth that the company ascribed partly to an increase in the number of customers to its mobile phone unit in the quarter. The company posted a rising net profit of 25 billion yen (US$212 million) from 1.4 billion yen (US$11.8 million) it posted a year ago. Softbank said its operating profit went up by 59.5 percent to 43.5 billion yen (US$369 million) from a year earlier.
ò Rakuten Inc. estimated the proceeds from its planned sale of its equity stake in Ctrip.com International Ltd., an online travel service firm, will reach about 58 billion yen (US$492 million). The company said capital gains from the sale will be about 46 billion yen (US$390.1 million). The company also said it will report the sum as an extraordinary profit for the 2007 business year ending Dec. 31. Rakuten remains the largest shareholder of Ctrip. Rakuten acquired 20.3 percent of Ctrip for 12 billion yen (US$101.7 million), a move that was aimed at boosting its services in China where the travel firm operates.
Mobile/Wireless
ò Industry sources said Sanyo Electric Co. Ltd. is discussing with a domestic mobile phone maker about its plan to dispose of its mobile phone operations. Sources are indicating that SanyoÆs move to sell its mobile phone business is part of its effort to improve group-wide profitability. Earlier in July, Sanyo posted a 72 percent decline in quarterly operating profit, which was ascribed by the company to slow mobile phone sales and higher cost in raw materials. Sanyo looks to selling about 11 million units of mobile phones in the current business year to March 2008, down from its initial estimates of 12.5-12.6 million. The company has been posting a net loss for the past three business years.
ò Hitachi Com and Alvarion announced entering into an agreement to develop Broadband Mobile Wireless Access System using Mobile WiMAX technology jointly in Japan and overseas market. The Ministry of Internal Affairs and Communications has developed the license policy of 2.5 GHz band. To establish WiMAX technology, the base station, which can transmit stable broadband data, and the mobile management technology, which can realize seamless handover between base stations. The agreement aims to see Hitachi Com and Alvarion develop total system solutions. The partnership will see Alvarion with its base station technology of Alvarion combining with the mobile gateway technology, construction and maintenance technology of Hitachi Com.
Software
ò Media sources reported NECÆs acquisition of U.S.-based Sphere Communications, a unified communications vendor. The acquisition is seen by industry observers as putting NEC in a position of privilege among PBX vendors and enables it to face giants like Microsoft in a market that is characterized by intense competition.
Telecommunications
ò Media sources said the Japanese government plans to remove by 2009 a cost-sharing framework set up to provide universal fixed-line phone service to all parts of the country including rural areas and remote islands. The program to be scrapped has the two regional units of Nippon Telegraph and Telephone Corp (NTT) offering fixed-line phone service across the country even in situations where such service will not bring profit. Earlier in 2002, the Japanese government introduced a framework in which other telecommunications service providers share the costs to help make up for losses NTT incurs. Sources said the countryÆs Ministry of Communications is asking carriers to make Internet Protocol telephony and other services available in rural areas to replace NTTÆs fixed-line service. Losses from NTT's fixed-line service have gone up with users moving to mobile phone services.
ò Media sources indicated that KDDI Corp. plans to secure the help of its top shareholder, Kyocera Corp., in a bid to win a license to use the 2.5-gigahertz bandwidth for next-generation, high-speed data communications services. Under the agreement, the two companies are expected to form a joint company to seek approval by the government. Media sources said the alliance might also include Toyota Motor Corp., which is KDDI's second-largest shareholder.
Information Technology
ò SeaChange International announced that it is delivering the foundation for KDDIÆs new on-demand television business. KDDI provides VoIP-phone, backbone Internet and other IT services to more than 60 cable television operators across Japan. KDDI will leverage technologies and professional services from SeaChange through Panasonic to empower cable operators across Japan to quickly launch their own on-demand services. On-demand services will be centrally managed at KDDI network operations centers initially, with the ability for each cable operator to expand and enhance their service according to their regional coverage. Popular television and movie content will be provided by KDDI, and cable operators will have the ability to provide their own local content, which will also be managed through the KDDI central site. Under the agreement, SeaChange is providing its patented and widely deployed MediaCluster on-demand servers and Axiom Core management software, as well as the TV Backend System software for end-to-end management of promotions and business rules. Panasonic is providing the front-end interface solution for JapanÆs deployed cable television settop boxes. ITOCHU Techno-Solutions Corporation (CTC) is SeaChangeÆs integration partner on the KDDI project.
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