Internet
ò Google announced that it is looking to hire more engineers in Japan to develop new technologies in one of the most advanced markets for mobile technologies. The move is seen as GoogleÆs strategy to expand its presence abroad, where Google has more than 50 percent of its operations. Google's 7,000 staff around the world is mostly made up of engineers. The company began offering searches in Japan from 2000 and set up its Tokyo office in 2001. It also has its own R&D team in Japan. Earlier this year, Google made a venture with KDDI Corp., the country's No.2 phone operator to offer its first search engine and advertisement products for mobile phones. Analysts say offering more mobile services is important in Japan, where more people access the web via mobile phones than from PCs. About 60 percent of Japan's mobile customers use 3G networks that allow faster music and video downloads. The company said it is seeking to develop new technologies for social network services (SNS). SNS such as Friendster and Japan's "mixi" feature blogs and other services that let users communicate and share information online. Services such as blogs and SNS are growing rapidly in Japan among young people. Mixi, one of the first SNS in the country, has signed up 5 million users since its launch in 2002. Google Japan also said that the company is seeking partners to contribute contents for a video service in Japan.
ò Virtual mall operator Rakuten posted a group pretax profit of Ñ20.8 billion ($179 million) for the half ended June 30, a figure that represents a 82 percent growth on the year. The company said its sales went up by 190 percent buoyed by the June 2005 acquisition of consumer credit firm Kokunai Shinpan Co., which has since been renamed Rakuten KC Co. Rakuten said its online direct-marketing operation registered a 64 percent increase to its operating profits of Ñ7.9 billion ($67.5 million).
Mobile/Wireless
ò NTT DoCoMo said it plans to cut tariffs for international roaming to undercut rivals and encourage more Japanese to use their phones abroad. In a related development, the seven operators of the Asia-Pacific Mobile Alliance (APMA), including DoCoMo, were seeking to cut the fees they charge each other when serving each other's customers. This arrangement, according to the group, gives its alliance members an advantage over competitors and eventually helps bring down fees for travelers. DoCoMo is expanding overseas and has taken stakes in carriers based in popular travel spots for Japanese such as South Korea and Guam. APMA was set up this year by DoCoMo, Taiwan's Far EasTone Telecommunications, India's Hutchison Essar, Hutchison Telecommunications International in Hong Kong, South Korea's KTF, Indosat, and Singapore's StarHub. The group also aims to roll out by the end of this year services such as caller ID display and connections to the users' voicemail accounts in their home countries.
Hardware
ò Sharp, which is No. 4 in global LCD television sales, said it is doubling the spending on advertising for its Aquos flat-screen sets in markets outside of Japan to regain the top spot. The company said the majority of advertisement spending will go to the US market, without providing specific figures. Sharp, the top seller of LCD TVs last year, is focusing on selling larger, high-definition screens overseas to protect its market share and profit margins. Global LCD TV sales are poised to rise 39 percent to $33.4 billion this year, according to researcher iSuppli Corp. Sharp fell behind Sony Corp., Samsung Electronics Co. and Royal Philips Electronics NV last quarter as it could not make screens fast enough to meet demand. The company is aiming for overseas markets to account for 55 percent of LCD TV sales by the end of this year, from about 44 percent currently.
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