Internet
ò Softbank revealed that it has no plans to sell a stake in Yahoo Japan, a move that is seen as possibly blocking efforts by Yahoo to increase its holding. Sources said Softbank's rejection may prevent Yahoo from increasing its stake in the operator of Japan's most-visited web site, as only about 25 percent of the stock trades publicly. Softbank and Yahoo control a combined 74.5 percent in Softbank, just under a Tokyo exchange rule limiting majority shareholders to 75 percent ownership.
Mobile/Wireless
ò According to Felica Networks, the number of people with so-called mobile wallet phones in Japan is predicted to go beyond the 50 million mark by early 2009. FeliCa Networks is the joint venture of contactless chip supplier Sony Corp. and NTT DoCoMo. Mobile wallet phones were introduced in 2004 and have garnered around 25 million unit sales to date for the three network operators NTT DoCoMo, KDDI and Softbank Mobile. FeliCa administers the platform used to load and manage secure payments and related applications onto the handsets.
ò Nortel and Toshiba Corporation announced an agreement for the joint development of mobile WiMAX base stations for the Japanese and global markets. The base stations will be based on Nortel's broadband wireless technology and Toshiba's amplifier and miniaturisation technology. The companies said the new WiMAX base stations will offer lower power consumption and feature miniaturized equipment. Under the agreement, the base stationÆs radio module will be developed by Toshiba, with Nortel developing the digital module for the base stations. Nortel has extensive WiMAX R&D capabilities and expertise in OFDM and MIMO technologies that support high-speed wireless broadband communications. Using their respective strengths, Nortel and Toshiba said they will develop a range of small, power efficient and cost effective WiMAX base stations.
Hardware
ò Canon and Toshiba disclosed plans to postpone the launch of next-generation flat-panel televisions known as SED TVs. Earlier, the two Japanese companies had planned to introduce Surface-conduction Electron-emitter Display TVs sometime between October and December this year. Canon attributed the delay to "prolonged litigation now under way in the U.S." Canon said it also needed to reduce the mass-production costs of SED TVs because the prices of other types of flat-panel TVs already on the market ù the LCD and plasma-display models ù are sharply declining. Toshiba said the decision was made because Canon will not be able to provide SED panels according to the original schedule. Canon and Toshiba said they couldnÆt predict any specific time frame for the launch of SED TVs at the moment. In 2004, Canon and Toshiba formed SED, with capital of 10.5 billion yen ($86.2 million), in order to release SED TVs in Japan in the fourth quarter of 2007 before launching mass production in time for the 2008 Beijing Olympics.
ò KDDI announced that it is developing a phone that can send emails and work with office documents; a development that observers say will allow it to compete with Research In Motion's BlackBerry device. A KDDI official said that it would make an announcement on the release of a smartphone even as no manufacturer has been named yet. Rivals NTT DoCoMo Inc., Softbank Corp. and Willcom Inc. already offer phones for business users as a response to the decline in sales from voice calls. Market leader DoCoMo offers the Blackberry and a device from Taiwan's High Tech Computer Corp., while Softbank, owner of Japan's third-largest mobile network, sells handsets from High Tech and Nokia Oyj. KDDI said it will start selling 15 handset models next month, including seven models that can receive digital television broadcasts.
ò Sharp announced that it will invest about 500 billion yen ($4.1 billion) to build a liquid crystal display panel factory in Sakai, Osaka Prefecture. Sources said the factory, which is expected to go on stream in 2009, aims to manufacture 40- to 60-inch panels for large-screen televisions with production efficiency exceeding that of Sharp's renowned liquid crystal panel factory in Mie Prefecture.
Korea
Internet
ò According to its CEO, NHN Corp, South Korea's top web portal, may seek to acquire an internet company. The same official is being quoted by media sources for stating that NHN may even be acquired by a rival if it will boost the companyÆs chance to be a global player. Industry sources said NHN is looking to expand its global presence through acquisitions and partnerships. Currently, NHN, with market capitalisation of 7.5 trillion won ($8.1 billion), is more than 50 percent owned by foreign investors. The company operates the Naver search engine, the countryÆs dominant web portal, which accounts for 77 percent of internet-related searches in the country.
Mobile/Wireless
ò VoiceSignal, the leading provider of speech solutions for mobile devices, announced that Pantech Group has entered into a new three-year strategic license agreement which gives Pantech the ability to develop voice enabled mobile phones using all of VoiceSignal's applications. Pantech has been licensing VoiceSignal VSuite software since 2004. The present agreement, however, gives the company the right to develop handsets with all VoiceSignal's applications, including VSuite Ultra Compact, VSuite 3.1, VSpeak, and VoiceMode.
Media, Entertainment and Gaming
ò According to industry sources, Israeli start-up MusicGenome Inc. has secured a five-year strategic cooperation agreement with South KoreaÆs CJ Group in a deal valued at $10 million. Under the agreement, MusicGenome artificial intelligence (AI) technology, which is for predicting consumer entertainment tastes, will be integrated with CJÆs services. MusicGenomeÆs technology is based on a patent that combines software and music to predict a userÆs taste and offers suitable entertainment content with 80 percent accuracy.
ò Webzen of South Korea announced the successful launching of its MMORPG Soul of the Ultimate Nation in China. Industry sources noted that The9 had earlier paid $13 million for the rights to have the game initiated in China, with the value of the deal seen as the largest single export transaction in Korea's online game history. Once the game is running in China, a 22 percent royalty based on revenues will be paid to Webzen for three years.
ò Sony officially confirmed that it will release in South Korea the 80 GB version of Sony's PlayStation 3 video game console. According to Sony, the device will be sold for 518,000 won ($580). Industry observers see the announcement as unexpected for Sony, which is known for rolling out new products in its Japanese home turf before offering them to international markets. Sony justified the introduction of the higher-capacity system in South Korea due to the prevalence of broadband internet access.
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