Media, Entertainment and Gaming
NTT DoCoMo and Google has forged a partnership that is expected to create innovation in the mobile Internet area. According to an official in NTT DoCoMoÆs products and services division, the partnership aims to offer more ôgroundbreaking servicesö through the synergy between DoCoMo and Google and to work on the ômobilisation of the Internet.ö The two companies said the partnership includes enhancement of the search engine based on DoCoMo's "i-mode" Internet service, targeted advertising based on search targets, the development of an i-mode version of each Google application and service, the consideration of a mobile phone product incorporating the "Android" mobile software platform developed by Google, and the consideration of new mobile marketing services based on i-mode.
Nintendo has reported a 96.3% rise in net profits in the nine months to December to Ñ258.8 billion ($2.4 billion). The company said its operating profit climbed 135.1% to Ñ394 billion, while sales grew by 84.7% to Ñ1.3 trillion. In connection with the announcement, Nintendo raised its sales forecast for the full year to March to Ñ1.6 trillion, up from an earlier estimate of Ñ1.5 trillion, and its operating profit forecast to Ñ460 billion from Ñ420 billion. The company retained its net-profit forecast at Ñ275 billion, however, a decision which the firm attributed to the appreciation of the yen. During the nine months, the company said it sold 24.5 million of Nintendo DS.
Internet
Internet Initiative Japan has launched the IIJ Mobile, a mobile data communications service for corporate customers. The move is IIJ's first entry into the mobile communications market as a mobile virtual network operator (MVNO), providing comprehensive solutions for businesses employing mobile broadband. Under the offering, IIJ Mobile uses NTT DoCoMo's 3G FOMA network and data communications terminals to provide Internet access with high-speed mobile data communications up to 3.6 Mbps. IIJ plans to expand service offerings and functions, such as providing access to closed networks without going through the Internet, or providing mobile access as a part of the WAN using some of IIJ's existing services. This will enable IIJ to provide one-stop corporate network construction and operation that includes mobile data communications.
Mobile/Wireless
Sanyo Electric has reached a definitive agreement with Kyocera Corporation to transfer its mobile phone business to Kyocera. The mobile phone business refers to the entire CDMA handsets business (excluding Tottori Sanyo) as well as the PHS handsets, base station business and other operations related to the wireless communications business. Following the transfer, the current 2,000 employees in Sanyo's mobile phone business (excluding contract workers and temporary agency staff) will work for Kyocera. According to an announcement, Kyocera will continue to use the Sanyo brand for handsets both in Japan and overseas. It will also continue its own brand and its phone business will be developed using both the Kyocera and Sanyo brands. For the North American market, the current distribution channels will continue to be supported and utilizsd. And in addition to Kyocera Wireless Corp, the companyÆs current subsidiary in North America, a new company will be established.
The Walt Disney Company Japan plans to launch a mobile phone service called Disney Mobile in collaboration with SoftBank Mobile Corporation on March 1 this year. Under the offering, Disney will release dedicated handsets at the same time. In order to get access to this service, the user needs to sign a contract with Disney and use an e-mail address with the domain name "disney.ne.jp". Although the company will run the business as a mobile virtual network operator (MVNO), Walt Disney stressed that the service will be distributed in collaboration with SoftBank Mobile. The service is targeted at women in their twenties and thirties, age groups profiled as users of Disney's content.
Hardware
According to media sources in Japan, Sanyo Electric plans to dissolve its TV development joint venture with Taiwan's Quanta Computer as of January 30. The two companies announced in March 2006 that they would form a venture to manufacture and sell flat screen TVs. Following the announcement, however, Taiwan's AU Optronics Corporation agreed to buy Quanta Computer's liquid crystal display (LCD) unit, Quanta Display - a move that jeopardised the venture even before its establishment. Sanyo and Quanta did set up the TV JV in 2006 as planned, under the name of Sanyo Visual Technology and with a capitalisation of Ñ100 million ($937,300). The scope of the venture, so far, has been limited to product development and joint procurement of parts and materials.
Telecommunications
China Netcom announced the formal opening of a new branch in Tokyo under the name of China Netcom (Japan). China Netcom (Japan) is a wholly-owned subsidiary of China Netcom and will be engaged in promoting the development of international voice, data lines and Internet services between China and Japan. The branch is expected to build closer relations with operators in Japan and the Asia Pacific region and to provide related wholesale services to international operators. China Netcom also said the Japanese branch will work with the company's branches in Hong Kong, the US and Europe to provide more convenience and better service to clients. China Netcom has been exploring the Japanese market for a long time and in March last year, it invested $2.8 million to set up a wholly-owned company to apply for telecom licenses from the Japanese authorities. In a related development, China Netcom said it has entered into an agreement with KDDI of Japan with regard to the broadcasting of the 2008 Beijing Olympic Games.
NTT DoCoMo has raised its stake in Philippine Long Distance Telephone Co (PLDT), bringing the NTT group's overall holding in the Philippines' largest telecom operator to 20%. The acquisition of shares allows the Japanese firm to consider PLDT as an equity-method affiliate. DoCoMo, which controls more than half of Japan's mobile market, has acquired 12.5 million additional PLDT shares for Ñ86.7 billion ($812.5 million) since March 2007. The combined investment in PLDT by DoCoMo and NTT Communications, another unit of NTT, now totals Ñ164.3 billion ($1.5 billion).
Korea
Internet
According to the head of its international operation, YouTube has launched a localised service in South Korea to tap the country's fast-growing user-created content market. The company said it has secured content from local companies for its South Korean operation. A top official of YouTube, recognising the cultural and language barriers, said that the South Korean version will have locally-made content from seven local Internet, broadcasting and entertainment firms, including CJ Internet, TU Media and JYP Entertainment. The company faces problems of censorship, with the Korean government enforcing strict guidelines for sexual, violent, or politically controversial contents on websites. YouTube said it will do its best to comply with the South Korean regulations and added that its main focus is first to build global communities and then to consider how to make a profit.
Samsung Networks has launched of the first Voice-over-Internet (VoIP) service for mobile phones in South Korea. The service is called the Samsung Wyz 070 and enables mobile phone users to make and receive calls using the WiFi wireless Internet network. The company said the service is only available for corporate users who use Samsung Electronics' Blackjack smart phones but the plan is to expand it to more models, such as Blackberry. The development of a wireless Internet network has prompted VoIP firms to set eyes on mobile phones. Skype has introduced a VoIP mobile phone in Europe that uses the third-generation networks of mobile operators. Samsung Networks, a subsidiary of Samsung Group, said the firm will expand the coverage to 3G and Mobile WiMax networks in the future.
Media, Entertainment and Gaming
Opera Software has announced that South Korea-based POSBRO has selected the Opera browser for what is called the world's first portable WiMax gaming device. The POSBRO G100 takes advantage of the high data speeds offered by WiMax (4G) to deliver online gaming from a portable device. The device features a four-inch LCD touchscreen, with a slide-out game pad. In addition to WiMax, the G100 also supports connectivity via WiFi and Bluetooth. POSBRO has signed agreements with Korean mobile WiMax operator KT to provide an online gaming service via G100 starting in early 2008. The company said it will be launching the G100 in the US in the fourth quarter 2008 or in the first quarter of 2009. POSBRO was founded in September 2006 and acquired by POSDATA as a strategic base camp for WiMAX hand-held device development and service integration.
Mobile/Wireless
KT Freetel (KTF) posted a 40.7% drop in its net income in 2007, which it attributed to higher marketing costs as the company was gaining more subscribers overall as well as more 3G customers. KTF said its subscriber acquisition costs almost doubled year-on-year due to a substantial increase of sign-ups and 3G migrations. Its fourth quarter net income fell to W53.1 billion ($56 million) from W106.6 billion in the fourth quarter of 2006, while the full year net income dropped to W244.1 billion from W411.7 billion the year before. Its fourth quarter revenues went up to W1.9 trillion from W1.3 trillion in the year-ago quarter, with its revenues for the full year registering a 12.1% growth to W7.3 billion. KTF had 13.7 million mobile subscribers as of the end of 2007 compared with 12.9 million at the end of 2006.
Semiconductors
MagnaChip Semiconductor reported revenues of $246.5 million for the three months ended December 31, 2007, up from $162.3 million declared in the fourth quarter of 2006. The company said its net loss amounted to $29.5 million, compared to a net loss of $45.6 million in the fourth quarter of 2006.
Telecommunications
Onse Telecom Corporation, a South Korean fixed-line communications operator, is preparing to enter the local mobile telecommunications market, a move that could provide cheaper services by generating competition in the market. Onse Telecom said that it has set up a mobile business task force that will soon unveil detailed plans of its envisioned business which will provide services as a mobile virtual network operator (MVNO). MVNO refers to a business operator whose mobile service is based on a borrowed network. Currently, the South Korean mobile communications market is dominated by three carriers û SK Telecom, KTF LG Telecom. Onse is the first company to officially express an intention to enter the MVNO market. The government recently crafted a bill that would allow smaller companies to enter the mobile service market as an MVNO to prompt market competition and a decline in communications costs for customers. The bill is expected to be submitted to parliament in February.
Ventures/Investments
Daum Communications, Microsoft and Celrun will set up a joint venture to offer Internet protocol television services in South Korea in February. Under the agreement, Daum, South Korea's second-largest web portal and search engine company, will develop the IPTV content, while Microsoft will offer the latest version of its Internet television software platform, Microsoft Mediaroom. South Korean digital device maker Celrun will provide set-top boxes and other digital devices. According to industry observers, technology companies are investing large amounts of funds to develop IPTV services and to offer real-time TV programs as well as interactive services to generate new sources of revenues. Details of the equity stakes in the entity and other financial matters were not disclosed.
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