Information Technology
ò A U.N.-backed forum is set to bring together policymakers and IT experts to discussion how to best use technology to battle poverty and unemployment. The forum, which is called the Global Alliance for Information and Communication Technologies and Development, will look to involve governments, businesses, and civic groups to boost the use of information technology in reaching development targets. The meeting will include companies such as US-based network equipment maker Cisco and Nokia, the worldÆs largest maker of cell phones.
Japan
Mobile/Wireless
ò A panel of the countryÆs Ministry of Internal Affairs and Communications proposed that two major mobile phone carriers, NTT DoCoMo Inc and KDDI Corp, open their networks to newcomers to ensure fair competition. The panel also suggested that Nippon Telegraph and Telephone Corp.'s next-generation telecommunications network should be opened to other carriers. According to the panel's proposals, NTT, DoCoMo and KDDI, each of which controls more than 25% of Japan's mobile phone market, should be obliged to lease their communications networks to other carriers if there are empty frequency bands available.
ò NTT DoCoMo Inc. and Aquafairy Co. has announced a partnership for the joint development of a micro fuel cell for 3G FOMA handsets. This follows their joint development of a polymer electrolyte fuel cell (PEFC) that has proven effective in a prototype recharger. The fuel cell is the smallest in the world with power output of 2 watts. The recharger combines DoCoMoÆs recharger technology with AquafairyÆs thin-film, power-unit technology and ability to produce hydrogen from water. The simple hydrogen-producing mechanism and power units make the recharger less than one-fourth the size, but more than twice as powerful as the methanol fuel cell prototype. The easily portable recharger can charge a handset several times in approximately the same time as an AC adapter. Demands for power consumption have risen with new FOMA services and features. To meet these demands, DoCoMo has worked on increasing the capacity of lithium-ion batteries, the most common battery in handsets today, and has developed a direct methanol fuel cell recharger.
Semiconductors
ò NEC Corporation announced that it has succeeded in developing new magnetoresistive random access memory (MRAM) cell technology suitable for high speed memory macro embedded in next generation system LSIs (Latent Semantic Indexing). The new cell technology realises value added, non-volatile MRAM macros that can be substituted for SRAM (static random access memory) macros embedded in system LSIs.
Korea
Internet
ò Daum Communications announced that its US subsidiary Lycos has signed a deal to sell its financial service and IT news business unit Wired.com to US-based CondeNet for US$250 million in order to focus on its core business, such as multimedia content services. Analysts said the move may lead to the streamlining of the Internet business in the US or a sale of Lycos. Daum said that it had completed the reshuffling of overseas business units when it sold Quote.com, but the Wired News sale came in less than six months. The company said that it would boost its efforts to provide multimedia services such as Internet telephony through Lycos. Last month, Lycos unveiled a test version of on-demand multimedia services through which subscribers can view TV programmes and movies. Lycos has nine service brands in the US including Tripod, Angel Fire, and Planet.
ò KT Corporation, South Korea's largest fixed-line and broadband carrier, said it has called for the government to speed up introducing Internet Protocol Television (IPTV), claiming that a one-year delay would cost the nation about W1 trillion ($1 billion). Observers note that the country has been slow to adopt the cutting-edge services largely due to the protests and lobbying efforts from terrestrial TV and cable service providers, who fear their market share may decline and profits shrink. KT and other telecom operators with solid IP infrastructure want to use their facilities to expand their service coverage and broaden income bases. Korea is now expected to allow operators to launch IPTV as early as in 2007, and KT plans to invest W300 billion ($319 million) into IPTV infrastructure this year for a faster service launch.
ò Korea will join the mobile auctions market with the launch of a mobile version of Internet Auction, the countryÆs top online auction platform. The site is a wholly-owned unit of eBay, which entered into a partnership with SK Telecom to offer the auction-on-the-move service. After proving the viability of mobile auctions with SK Telecom, Internet Auction disclosed it will seek to expand its business to other wireless operators. SK Telecom, with a pool of some 20 million customers, is the industry leader in the countryÆs wireless telephony market, ahead of players like KTF and LG Telecom. Experts project that the auction will work well on the mobile Internet because of the time-sensitive nature of the service.
Media, Entertainment and Gaming
ò A study made by San Francisco-based Pearl Research reveals that 79% of all South Korean households own a computer, and 12 million out of 15 million households utilise broadband. There are more than 20,000 Internet cafes in the country, the report said. The study predicts that the online PC games market will be valued at over $1.2 billion this year, driven by casual, easily accessible games that can be played in less than 10 minutes. The research firm says that more than 30% of the online games market is made up of casual games, which attract females above the age of 30. As for the console and handheld market, Pearl believes that online game play, ôculturally relevant and localised software,ö increased market investment and next generation consoles will drive the growth of this $160 million segment. The study indicated that, like in many other regions, mobile gaming is on the upswing in South Korea, where the market is expected to exceed $275 million this year. South Korea is home to some notable game companies, including NCsoft and Phantagram, with major players Nintendo and Activision recently setting up shop in the region.
Mobile/Wireless
ò LG Telecom, the countryÆs No. 3 mobile carrier, is expected to lose its 3G license after a 20-member advisory panel at the Ministry of Information and Communication (MIC) asked the information ministry to rescind the license. The MIC plans to make a final judgment on the issue soon and itÆs projected to be in accordance with the recommendations of the panel, which is composed of top telecom and law experts. The resolution came as LG Telecom had failed to comply with its commitment to start 3G services in the 2-gigahertz bandwidth by the end of last month. LG Telecom admitted that it was unable to fulfill its promise even as it announced its plans to upgrade its current 1.8GHz network. It cited the technological trends in the global wireless market as a reason for not investing in the 2GHz bandwidth. LG Telecom got the 3G license in 2001 for W1.1 trillion won ($1.1 billion), but has so far paid only W220 billion ($230 million).
Software
ò Samsung Electronics Co. posted an 11% decline in its second-quarter net profit, which it attributed to slack demand for its mobile phones. However, the company said its future earnings would be boosted by strong sales of its latest models. Samsung reported a profit of W1.5 trillion ($1.5 billion) on sales of W14.1 trillion ($14.7 billion) during the three months ended June 30. Sales were up 3.8% from a year earlier. It was the first time in three quarters that profits declined. Samsung, which ranks third worldwide in mobile phones, said handset sales declined 4% from the same quarter last year to W4 trillion ($4.1 billion) and fell 8% from the previous quarter. In a related development, Samsung announced that itÆs working with JapanÆs Sony Corp. on the expansion of LCD production in a joint venture in South Korea.
Hardware
ò LG.Philips LCD, the world's second-largest maker of LCDs, reported a record loss of W322 billion ($336.6 million), compared with a profit of W41 billion ($42.8 million) a year earlier. Sales, including subsidiaries overseas, climbed to W2.3 trillion ($2.4 billion), while its operating loss hit W372 billion ($389 million). LG.Philips said it plans to invest about W3 trillion ($3.1 billion) this year, which slashes its earlier budget of W4.2 trillion ($4.3 billion). The company has earlier announced it will reduce production at its two newest P6 and P7 factories, but predicts its third-quarter shipments will grow more than 25% from the second quarter. Firms had expected the World Cup to boost profit but analysts believe the impact from the mega tournament has been over-estimated.
China
Internet
ò Baidu.com revealed that it will close its search software unit, causing the layoff of 30 people, in a move to concentrate more on its core business. The company said the decision was made amid intense market competition. The layoffs will affect workers in Beijing, Shanghai and Shenzhen. Despite this decision to lay off workers, Baidu said it is looking to maintain its lead over its rivals, which include Yahoo and Google. According to data by Analysys International, BaiduÆs market share hit 43.9% at the end of the first quarter, compared with Yahoo's 21.1% and Google's 13.2%. Baidu reported revenue of $16.8 million for the first quarter, 97% of which was generated by online marketing services, including search, advertising, and e-commerce.
ò Tom Online predicted that a policy change made by China Mobile for subscription services on its Monternet platform will have a negative impact on its wireless Internet business. Tom Online indicated that it was assessing the potential effects of policy changes on its business, which contributed some 94% of its revenue in the first quarter, citing the possible reduction of the effectiveness of its subscriber acquisition campaigns as one of them. The company said changes may also lower the average duration of subscriptions to less than 3 months. China Mobile, for its part, said that wireless value-added service providers would have to confirm new subscriptions twice before charging could be initiated.
Mobile/Wireless
ò Motorola announced the opening of its flagship retail outlet in Shanghai. The mobile manufacturerÆs store in a trendy shopping district will enable potential clients to try features and accessories on its mobile phones, Bluetooth receivers and PDAs. Motorola joins Nokia, Samsung Electronics, LG Electronics and Sony Ericsson in fighting for market share in China. Unlike in the US and some other leading markets, consumers in China pay separately for their mobile phones and phone service, with quality handsets costing from Rmb500 ($62). Motorola has been pushing its trendy Razr line of phones in developing markets like China.
Media, Gaming and Entertainment
ò Sun Media Investment Holdings Ltd., announced it will buy 100% of Entertainment Today. Sun Media is the second-largest privately owned media company in the nation. The firm said the acquisition is expected to boost its library of international content. Analysts see the acquisition as enhancing the prestige of Sun Media.
Software
ò TechnoConcepts Inc. announced that it has licensed ANT Software Limited's browser solution for use in the IPTV set-top box manufactured by its subsidiary, China Jinshilin Techno Ltd. IPTV set-top boxes provide delivery of digital television programming received from the Internet to conventional television sets. Jinshilin anticipates shipping more than 100,000 units by the end of this calendar year in China, Taiwan and Japan, generating revenue in excess of $15 million.
The IPTV set-top box market is rapidly expanding in Asia, with industry analysts projecting sales for China alone of between 20 million and 50 million units in 2006, growing to 60 million to 100 million units by the end of 2007. ANT is the market leader in software and solutions for IPTV, hybrid TV, and digital home products.
Hardware
ò Altrua Technologies, Inc., the pioneer and foremost developer of Intelligent Touch Controls for mobile devices, announced the expansion of its global operations with the opening of a new development and support center in Shanghai and the appointment of Lunji Qiu as the new vice president and general manager of Atrua China. Atrua said its China office will play a significant role in improving the design and usability of these new devices and will support AltruaÆs rapidly growing base of customers in that region. The report said Mr. Qiu has over 15 years of technical leadership in China. Most recently, he was the general manager of Broadcom China where he was responsible for product development, operations and customer support.
ò TCL Multimedia Technology Holdings posted a first-half profit warning, which sent its shares tumbling to a near five-year low. The company, which reported a net loss of HK$139 million ($17.8 million) for the first quarter this year, compared with a loss of HK$48 million in the same period last year, said its six-month results will be "much worse than expected" and it may record "substantial losses." Analysts have warned that the company's loss from its European operations could widen this year. They also remain pessimistic on TCL's earnings despite a plan to sell its computer division for HK$337 million ($43.3 million) and focus on television manufacturing.
The European and North American markets provided 46% of the company's first-quarter revenue of HK$8 billion ($1 billion), with ChinaÆs share amounting to 38%. The company said it is looking to reorganize its European operation in order to counter the losses. A TCL Multimedia official also noted that the company will need to refinance its total debt of HK$2 billion ($257.2 million) through the equity market.
Ventures
ò A study made by Zero2IPO Group revealed that venture capitalists invested $772 million in the mainland in the first half this year. Of these funds, about 70% went to IT firms. The report indicated that venture capitalists spent divided their funds on 121 mainland firms, a figure that represents a 128% increase over the same period in 2005. In 2006 as a whole, the research group estimated venture capitalists would invest a record $1.5 billion. In a related development, Walden International, which manages $1.6 billion globally, disclosed plans to invest 50% of a new fund to be launched this month in the mainland.
Taiwan
Mobile/Wireless
ò BenQ said it will cut more than 500 jobs in Germany, with about half coming from BenQ MobileÆs headquarters in Munich. The final numbers will be decided when the firm terminates its partnership with external suppliers. BenQ has more than 3,000 employees in Germany. Last year, BenQ acquired the mobile phone handset business of Siemens, which gave it a 3.5% share of the global handset market.
Semiconductors
ò Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, reported a 36% increase in its June sales, which it attributed to growing demand for new consumer products. TSMC registered sales of NT$27.2 billion ($845 million) last month, which took its second-quarter sales to NT$81.2 billion ($2.4 billion), a 39% improvement from a year ago.
ò Motech Industries, the countryÆs largest solar cell-maker, said its output for this year is expected to decline compared to earlier forecasts as a result of a failed plan to enter into a strategic alliance with US-based silicon-wafer supplier MEMC Electronic Materials. The US firm had signed a letter of intent to supply solar wafers to Motech in a deal that fixed the price of the product for eight years. However, the deal collapsed after the two companies failed to reach an agreement. Industry sources said the failed deal would diminish MotechÆs control over raw materials in coming years. Analysts predict the companyÆs earnings will be 10% lower than the market consensus as a result of the failure of the partnership.
Telecommunications
+ Lucent Technologies (Lucent) will provide its leading IP Multi-media Subsystem (IMS) platform to New World Telecommunications (NWT), enabling the telecom operator to create and deliver simple, seamless, secure, portable, personal multimedia services to its subscribers over its optical IP network. With the agreement, NWT is Hong Kong¦s first fixed line operator to deploy an IMS platform. According to Lucent China, NWTÆs use of the IMS Platform in its fixed network will enable it to pursue a new service model that will allow for faster and more cost effective implementation of new and innovative end-user applications. Backed by its advanced Next Generation Network, NWT has evolved from a traditional telecom carrier into a next generation IP and telecom service provider, offering a wide spectrum of unparalleled integrated communications solutions, applications and content services, such as broadband, IP telephony, VPN, IPLC, as well as local and international voice services.
+ Fiorlatte, a private equity firm wholly-owned by former investment banker Francis Leung Pak-to, has signed an agreement with Singapore-listed Pacific Century Regional Developments (PCRD) to acquire a stake in PCCW. Leung did not identify the names of other investors joining him in the HK$9.1 billion bid ($1.1 billion) although he promised to reveal their names in November. By that time, the first installment of HK$2.7 billion ($347.2 million) will have been paid and the necessary approvals obtained. Analysts see this development as part of an effort to stop PCCWÆs core assets from being taken over by foreign investors. Australian investment bank Macquarie and US private equity firm TPG-Newbridge have offered about HK$60 billion ($7.5 billion) for PCCWÆs telecom and media assets.
Hardware
+ DVN (Holdings) has entered into an agreement that would see it give a 25% stake to Citic Group in exchange for the right to sell some 6 million set-top boxes and related software to cable television networks. Under the deal, Citic becomes DVN's largest shareholder, ahead of Motorola which owns 19.7%. However, sources indicated that Motorola has plans to increase its stake in DVN. The deal also stipulates that in case DVN is unable to sell the agreed number of set-top boxes, Citic Group has to pay HK$354.5 million ($45.5 million) for the 236.3 million new shares that DVN will issue as payment. Citic Group has 49% stakes in 21 cable networks in China. DVN is the exclusive set-top box provider in several large cities and provinces in China.
Internet
+ A study indicated that some 27,000 people in Hong Kong are deriving income from online sales. The report, which was commissioned by eBay and conducted by ACNielsen, revealed that about 12,000 people rely on online sales as their major source of income. The survey said that one in 10 eBay businessmen would consider giving up their jobs in favour of doing online trading on a full-time basis. eBay noted that online businesses are becoming a trend as it gives people more flexibility with regard to their working hours.
Singapore/Malaysia/Philippines/Indonesia
Semiconductors
ò Samsung Electronics and Siltronic, a leading maker of silicon wafers and a unit of German chemicals group Wacker Chemie, announced plans to build a joint 300-millimetre wafer factory in Singapore. The factory would be a 50-50 joint venture and would be called Siltronic Samsung Wafer. It marks the first time that a semiconductor maker has teamed up with a silicon wafer manufacturer, a partnership represented by an investment of US$1 billion.
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