Internet
ò MoodyÆs Investors Service announced it is upgrading Softbank, as it pointed to the internet firmÆs acquisition of VodafoneÆs Japanese unit as a factor that should boost its competitiveness. In the announcement, the risk evaluator upgraded SoftbankÆs long-term debt rating and issuer rating to Ba2 from Ba3, with a stable outlook. Softbank completed a deal in April to buy Vodafone Japan for $15 billion. Softbank also owns Yahoo Japan. The company said it plans to rename the entity Softbank Mobile and remove the name of the British firm, which faced problems when it entered the Japanese market. Moody said the move will add diversification in the Japanese telecommunication market. Softbank said it will put more money into the Vodafone unit.
Mobile/Wireless
ò Sony announced that it will market in the US a first-of-a-kind wireless broadband device allowing users to exchange online voice and text messages, browse the internet and listen to music. The palm-size personal communicator, named mylo and aimed largely at university students, is capable of operating in Wi-Fi networks in public spaces or at home, the Japanese electronics giant said. The mylo - standing for "my life online" - will be sold in September for about $350 in the US market. The mylo can scan for available wireless networks and its HTML browser lets users connect to full web pages on the Internet as well as send e-mails. The gadget has a built-in speaker for listening to music stored in its one-gigabyte flash memory, which can also store digital pictures.
ò Softbank reported its fourth straight quarter of profit, with the company ascribing the growth on increased subscriptions from its broadband and fixed-line services and earnings as well from its Vodafone K.K. unit. The company announced a net income totaling Ñ1.4 billion ($12 million) in the three months ended June 30. Softbank also disclosed that its spending target is now doubled to about Ñ500 billion ($4.2 billion) for increased wireless network coverage aimed at its rivals NTT DoCoMo and KDDI Corp.
Hardware
ò Matsushita Electric Industrial disclosed that it was looking to its JVC unit turning profitable this year. JVC is 52.4 percent owned by Matsushita, the worldÆs largest consumer electronics maker. A Matsushita official noted that JVCÆs loss of Ñ1.9 billion yen ($16.3 million) in the fiscal first quarter was smaller than what it had originally expected. Outside of the losses at JVC, Matsushita posted a 41.5 percent rise in its quarterly profit, which was brought about by demand for its plasma TVs and digital cameras.
ò Sanyo Electric announced its global TV alliance with TaiwanÆs Quanta in an agreement that will allow them to work together to acquire materials. Under the deal, Sanyo would spin off the development and purchasing operations of its TV business and establish a new company in October this year. The agreement would also see Quanta Computer getting a 19 percent stake in that company. The company to be formed in the alliance will be called Sanyo Visual Technology. It will cover development and purchasing of SanyoÆs TV business worldwide, including Japan, North America, Europe, and the mainland. The TV business includes old-style cathode ray tube TVs as well as newer and slimmer liquid-crystal display panel TVs. The two companies said they would continue to discuss setting up a joint venture for flat-panel TVs. Sanyo has been moving to turn around its business, partly by forming alliances with companies to lighten its production costs for mass-consumed products. Quanta is the worldÆs largest notebook computer design and manufacturing company. It also has a display maker, storage operations, and other units in its group.
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