A Week in Tech summarises the major stories in tech throughout Asia and is broken down by country and sector. This is the first Week in Tech, and will come out each Thursday.
A week in Japanese tech
Telecommunications
- NTT To Convert Entire Network To Internet Protocol in 10 Years. Nippon Telegraph and Telephone Corp. plans to transform its entire communications network into one that uses IP (Internet Protocol) technology in 10 years. Existing circuit-switching telephone networks require exchanges costing hundreds of millions of yen apiece. IP networks use lower-cost equipment like routers instead, which can slash investment costs to less than one-tenth that of existing networks. The telecommunications giant has already decided to discontinue capital investment and R&D in exchanges and technology used in existing telephone networks.
Hardware
- Matsushita Electric, TCL Holdings Form Linkup in Electronics Sector. Matsushita Electric Industrial Co. of Japan reached an agreement with TCL Holdings of China to work together in research, sales and other areas in the electronics sector. Under the agreement, Matsushita products may be sold through TCL channels in China, and the companies also may supply each other with products such as TVs, Matsushita said. Matsushita also may supply key devices to home-appliance maker TCL, based in Huizhou, Guangdong Province. The agreement with TCL is expected to help Matsushita Group, which now operates 49 companies in China, to expand its sales in China, it said.
- Storage Giant EMC Files Complaints Against Hitachi. Corp., opening a new front in a bruising battle with competitors, filed a lawsuit alleging Japan's Hitachi Ltd. breached patent rights for some of the key software products used to power EMC's data-storage computers. In simultaneous filings with the U.S. International Trade Commission and U.S. District Court in Worcester, Mass., EMC alleged the Japanese firm and its data-storage arm broke U.S. laws covering six EMC patents by importing Hitachi equipment that incorporates software based on EMC architectural designs.
Internet
- Sony Focuses On Internet To Expand Financial Businesses. Sony Corp. is placing greater emphasis on the Internet to expand its financial business and is considering selling units in the field that have little relation to the Net. As part of its strategy to specialize in offering online financial services, Sony is contemplating merging Monex Inc an online securities firm in which Sony owns a stake of some 30%, with DLJdirect SFG Securities Inc. Sony is also considering selling shares in Sony Life Insurance Co.
- Sony to Sell TV Soaps on Web In Bid for Pay-Per-View Niche. In a first step toward an online pay-per-view market for television reruns, Sony Corp. will begin selling access to old episodes of two soap operas on its SoapCity Web site. The initial move is limited, however, by the fact that episodes of "Days of Our Lives" and "The Young and the Restless" will be offered by Sony Pictures Digital Entertainment in audio form only.
A week in Korean tech
Telecommunications
- Despite End to Merger Talks, Analysts Still Like Hanaro. Merger talks between South Korea's second-largest broadband Internet provider Hanaro Telecom and Korea Thrunet, the third-largest competitor, collapsed at the end of March, driving Hanaro's share price down 20% since the announcement. Still, analysts and fund managers say Hanaro's mid- to long-term prospects make it worth a look, especially if the merger talks resume. If a merger eventually takes place, Hanaro would be saddled with excess debt from Thrunet only in the beginning, and that the merged entity would enable the two companies to save money by cutting overlapping costs in the long term. It would also allow the two to enjoy greater economies of scale to compete more effectively with Korea Telecom's 49% market share.
Internet
- Change in Daum's Shareholdings to Shake Internet Portal Market. Daum Communications, the nation's biggest Internet portal company, said yesterday its second-largest shareholder Bertelsmann sold the 13.7 percent stake in the company to Merrill Lynch. The German company mobilized more than 80 billion won from the sale, and it has still holds a 3.6 percent stake in Daum. Analysts commented that the deal would be a prelude toward a possible alliance with state telecoms giant KT.
- SK Telecom to Acquire Lycos Korea. SK Telecom plans to take over Lycos Korea's Internet portal, a move designed to strengthen the company's fixed-line Internet service. According to officials from the two companies, a task force is now developing a new Internet portal, by combining SK Telecom's wireless Web service Nate.com and Lycos Korea's website.
A week in Chinese tech
Software
- Oracle to open software centre in China. Oracle announced it would open its first development centre in China in May to target exclusively the needs of the fast-growing mainland market. The development centre is to be located in Shenzhen in southern China and is expected to employ 100 people within its first six months of operation. Oracle has a staff of 350 currently working in China. Oracle will be targeting opportunities in mobile commerce and the banking industry.
- Microsoft Establishes Venture With China's Shanghai Wicresoft. Microsoft Corp. said it is establishing a joint venture in China with Shanghai Alliance Investment Co. to develop software and provide outsourcing services for multinational clients. The software giant will invest $4 million for 50% ownership of Shanghai Wicresoft Co.
- PeopleSoft to Expand Into China. PeopleSoft, the fifth largest software maker in the world, will invest in China in the coming eight years. PeopleSoft is the second largest enterprise management software maker globally and boasts its purely Internet-based solutions. The China operation will first be based in Beijing and then another office will be opened in Shanghai. Peoplesoft's China branch will focus on three areas: finance, telecom and utility. It will seek the help of its partners in the initial stages, including IBM, Accenture and local firm Omega Consulting Co Ltd.
Media, Entertainment and Gaming
- Publishing giant debuts. A new $600 million state-owned publishing group was officially launched yesterday, merging 12 major Beijing-based publishing houses and distribution companies with annual sales last year of $300 million. The China Publishing Group includes some of China's largest publishers and book traders, including the People's Publishing House, People's Literature Publishing House and the Xinhua Bookstore.
Telecommunications
- MII reaffirms tight control of broadband market. The Ministry of Information Industry has announced further delays in the issuance of additional fixed wireless access licenses.
- China Unicom to put more CDMA services, handsets on market. China Unicom says it will gradually introduce more CDMA services nationwide, and its subsidiary will purchase 500,000 handsets to ease the handset shortage.
A week in Singaporean tech
Biotechnology
- Singapore-developed stem cells make US grade. The National Institutes of Health (NIH), the main public medical research body in the US, said that it will buy stem cells from ES Cell International, a Singapore-linked company. Under the agreement, NIH and NIH-funded researchers will get access to the stem cells, which can develop into other types of tissue cells - heart, nerve, or even skin cells, for instance.
Hardware
- Singapore-designed Chip for Bluetooth. US giant Motorola is ready with a new, Singapore-designed and developed microprocessor which is the world's first to integrate the Bluetooth feature without the need for external add-ons. Called DragonBall MX1, it can be fixed into PDAs (Personal Digital Assistants), web tablets, smart phones, and 2.5G and 3G handsets
A week in Taiwanese tech
Hardware
- Taiwan to stem tech expert exodus to China. Taiwan is planning to restrict its technology experts from working in China, amid government fears of an exodus from industries underpinning the economy. The cabinet's National Science Council said on Tuesday that it was drafting bills to identify strategic sectors, protect state-funded technology and require hi-tech experts to seek government approval before working in China.
A week in Hong Kong tech
Telecommunications
- CyberWorks Taps Lucent's Butcher For No. 2 Position behind its CEO Li. Pacific Century CyberWorks, the biggest telephone company in Hong Kong, announced that it selected a former Lucent Technologies Inc. executive as its second in command and strong potential successor for its chief executive, Richard Li. Michael J. Butcher, 53 years old, was named chief operating officer and an executive director. The Asian company recently said it had taken a 45% stake in a $10 million systems-integration joint venture with mainland Chinese oil company Sinopec Corp. Mr. Butcher said Friday that he expects PCCW "will focus on China more significantly" by building on that joint venture deal.
- Star TV Records First Profit On Progress in China, India. Rupert Murdoch's Hong Kong satellite broadcaster Star TV made its first-ever profit during the quarter ended March 31. Star TV's "core" business of 39 channels, which excludes expenses related to development of cable-TV systems in India and Taiwan, earned a profit of $7.3 million and reported cash flow of $11.3 million for the third quarter. Company officials estimate that the company has invested between $1.8 billion and $2 billion in Star TV during the years.
Software
- Thiz secures HK$150m computer pact in Taiwan. A Hong Kong technology company is set to become the world's largest maker of Linux-based software. Albert Li Sze-tang, chairman of the Growth Enterprise Market-listed Thiz Technology, said the company had signed a HK$150 million contract with Taiwan-based computer-motherboard maker EliteGroup Computer. Thiz will pre-install its desktop software ThizLinux 6.0 and office application Thizoffice in EliteGroup's products over the next three years.Internet
- chinadotcom Acquires a Majority Stake in OpusOne Technologies. chinadotcom corporation announced the acquisition of a majority stake in OpusOne Technologies. OpusOne Technologies International Inc., with operations in Shanghai, Beijing, Guangzhou and Hong Kong, is a developer and distributor of business management software solutions for mid-size enterprises.
Hardware
- HK market in the running for technology issue. The mainland's Semiconductor Manufacturing International Corp (SMIC) is considering Hong Kong for its public listing next year, according to its largest single shareholder. Shanghai-based SMIC is one of the most advanced integrated-circuit foundries in China, capable of manufacturing eight-inch wafers. SMIC was the first foreign-funded foundry to be set up in China. Its founder, Richard Chang, was president of Taiwan's Worldwide Semiconductor Manufacturing.
Media, Entertainment and Gaming
- TVB axes Galaxy pay-TV venture. Television Broadcasts (TVB) has scrapped plans to launch its pay-TV project, according to sources inside the company. The decision by Hong Kong's dominant free-to-air broadcaster to drop plans to roll out the HK$5 billion Galaxy Satellite Broadcasting project is the latest in a series of blows to hit the Government's plans to liberalise the pay-TV market. TVB board members led by Sir Run Run Shaw blamed a lack of interest from other investors and the regulatory framework, with the rules described as 'harsh', for their decision not to go ahead, according to sources.
A Week in Tech is brought to you by FinanceAsia, and iRG, the Asian boutique that focuses on technology and biotech.
