Media, Entertainment and Gaming
ò Microsoft Corp. and Namco Bandai Games Inc. announced the unveiling of the Pac-Man video game title's new version in the US, making the product the first update in about 27 years. Microsoft said the new version, called the Pac-Man Championship Edition, is for use only on the Xbox 360 console and will be available at $10 on the Internet. The original video game came out in 1981 and soon became one of the most popular games in the world.
ò Sony Corp.'s game unit revealed its plans to slash jobs in the US as it looks to streamline its operations in Japan as well as in the US. The plans are seen as part of the companyÆs effort to compete with Nintendo, its industry rival. Sony's game division reported an operating loss of 232 billion yen ($1.9 billion) for the year ending March 31, which the company ascribed to start-up costs for the PS3. Despite this, investors are hoping for SonyÆs recovery in the game market to allow it to get back its investment. The game unit has about 4,500 employees worldwide. For over a decade, Sony dominated the $30 billion global game industry with the original PlayStation and PlayStation 2. Demand for the PS3, however, has been slow so far, given its high price tag and the limited availability of attractive software titles. In May this year, the PS3 sold just 45,321 units in Japan, compared with 251,794 units of the Wii.
Internet
ò According to the countryÆs Ministry of Internal Affairs and Communications, the total of optical fiber line-based broadband subscription contracts in Japan reached 8.8 million as of March 31, a figure that surpasses the 8 million ceiling for the first time. The ministry said the figure shows an additional 863,499 contracts from three months earlier, compared to a fall in subscription contracts for asymmetrical digital subscriber line-based services. Optical fiber line-based Internet hookup service provides much faster data transmission speed than ADSL line-based service. The number of ADSL contracts dropped by 222,688 during the January-March period to 14 million for the fourth consecutive quarterly fall. Industry observers see the figure as showing the trend of a growing number of Internet users shifting from ADSL services to fiber-optic contracts.
ò Apple announced the availability of the Warner Music Japan catalog to users by way of iTunes Store in Japan. The agreement gives users access to a more than 4 million tracks offered by Japan's iTunes store, with over 90 percent of the tracks priced at 150 yen ($1.2) per song. Apple disclosed that over 2.5 billion songs were bought and downloaded from the Japanese store.
Mobile/Wireless
ò NTT DoCoMo, Inc. and Research In Motion (RIM) jointly announced Japanese-language support for the BlackBerry 8707h smartphone, which is available in Japan via DoCoMo. Industry analysts said the addition of Japanese-language support for the BlackBerry 8707h is expected to please customers who are interested in deploying BlackBerry smartphone in Japanese-language environments. With the offering, users will be able to compose and read Japanese e-mails, browse Japanese websites and input Japanese text for personal information management (PIM) applications, with a Japanese user interface also available in the service. The launch of Japanese-language support will also include the localisation of BlackBerry Enterprise Server and BlackBerry Desktop Manager. The localized BlackBerry software is expected to be available beginning this summer and will be pre-loaded on the BlackBerry 8707h. In a separate development, NTT DoCoMo Inc. announced its plans to make a $3 million investment in a unit of Zenrin Co. Ltd., a digital mapmaker that provides services for drivers who navigate unmarked streets or for finding other mobile phone users. NTT DoCoMo said it aims to acquire a 10.2 percent stake in that unit.
Hardware
ò According to industry sources, Matsushita Electric Industrial disclosed that it is discussing with Kenwood regarding the sale of its stake in JVC following what it described as a failure in negotiation with Texas Pacific Group, a US private equity firm. Several sources indicated that Kenwood, a maker of audio equipment and car electronics, is in talks to buy 20 billion yen ($165 million) worth of new shares from JVC and then merge operations with JVC under a joint holding company. Under the deal, Matsushita would then sell part of its 52.4 percent stake in JVC to the holding company. According to a Kenwood spokesperson, the company sees the merger as an option given the intense competition in the electronics industry. The sources said Kenwood has already secured a 70 billion yen ($575 million) credit line from its banks for the deal, and it is possible that Sparx Asset Management, an investment firm that holds Kenwood shares, would participate in the deal. Matsushita could not be reached for any comment.
ò According to media sources, Sharp Corp, the world's largest maker of LCD televisions, filed a suit against HannStar Display Corp. of Taiwan claiming infringement of four patents covering LCD technology. According to the filed complaint, HannStar is using Sharp's inventions without permission and should be ordered to stop, with Sharp asking the court for cash compensation. In a statement, Sharp said it forged a technology licensing agreement with HannStar in January 2003 covering LCD panels. The deal, however, expired on December 31, with the Taiwanese company failing to pay all licensing fees due. In January 2006, Sharp sued HannStar in the Tokyo District Court, with the court issuing a judgment in favor of Sharp in December 2006. The case remains pending following HannStarÆs filing of an appeal.
Ventures/Investments
ò Fujitsu announced its plan to create about 5,500 new jobs at an offshore services centre in India, a move that comes with the company setting its eye on the fast-growing IT markets. Fujitsu said the move would boost the number of employees at its business in India to 8,500 by 2009 from about 3,000 currently. With the move, Fujitsu said it is aiming to post more than 40 percent growth in its overseas sales over the next three years from 36 percent last year. The company said it is looking to expand its global alliances through partnerships with SAP and Microsoft and boost its operating profit margin to 5 percent by March 2010 from 3.6 percent now.
ò Market sources indicate that Sumitomo Mitsui Financial Group has become the front-runner in negotiations to buy a large number of shares in OMC Card, a subsidiary of major supermarket chain Daiei Inc. The OMC sale is expected to bring in about 100 billion yen (US$821.5 million), with Daie stating that it will use the profits from fund to reduce its debt. With the deal, SMFG would become the principal shareholder, boosting its position in the retail market by linking the OMC credit card with firms under its umbrella, such as Sumitomo Mitsui Card Co. and Central Finance Co. At present, Daiei holds an approximately 52 percent controlling stake in OMC, and is planning to sell 30 percent of its share. Daiei will make its official decision within the month. Earlier in April, the first round of bidding narrowed the bidders to SMFG and Shinsei Bank, Ltd. The second round of bidding is expected to take place later this month, with Daiei making an official decision after evaluating the offers made.
Korea
Internet
ò According to one of its top officials, Daum Communications Corp., South Korea's No. 2 internet portal operator, is currently discussing with Google Inc. for further cooperation in areas where the two can work together. Even as early as May this year, Daum already was quoted as saying it was interested in boosting its cooperation with Google to ôcreate synergy in business.ö
Mobile/Wireless
ò SK Telecom announced the launching of its planned contactless mobile-payment service, enabling subscribers with certain phone models to download a credit application and tap the phones to make retail purchases. SKT said subscribers will be able to pay with the new contactless service at up to 80,000 readers connected with point-of-sales terminals at convenience stores, bakeries, bookstores and other merchant locations in South Korea. SKT said it expects that to increase to 150,000 readers by the end of the year. A credit application, from LG Card is the first to become available to subscribers for download. In a separate development, KTF said it also plans to launch a contactless mobile-payment service, this year, enabling subscribers to download applications to the SIM. Industry observers said LG Telecom, the countryÆs No. 3 major mobile operator, is likely to join in.
ò SK Telecom Co. revealed that it is considering providing search-based advertising for its mobile phone users, one that is powered by Google Inc. The head of SK TelecomÆs search department said the company is looking to initiate Google's mobile-search ads on its wireless Internet network during the second half of this year. As of February this year, SK Telecom has already employed Google's search engine for its wireless Internet service, although it has yet to offer the mobile-search ads.
Software
ò Industry sources say Microsoft has secured another cross-licensing patent agreement, this time with South Korea's LG Electronics, covering the company's Linux-based embedded devices. Under the deal, LG, one of the world's largest electronics companies, can use undefined "patented Microsoft technology" in its products, including Linux-based devices. The agreement also covers intellectual property contained in other hardware and software products, such as game consoles. Earlier, Microsoft entered into similar deals with Xandros, Novell, Samsung, and Fuji Xerox. As with the latest agreement, Microsoft did not detail just what patents LG was licensing. LG also did not disclose if its Linux-based devices violated any Microsoft patents. As part of the deal, Microsoft will have access to LG patents that cover computer architecture utilized in game consoles and other products and will license other LG patents that are owned by the England-based system integrator MicroConnect Group.
Hardware
ò LG Philips LCD revealed that it has not received any confirmation about media reports indicating that Royal Philips Electronics NV is set to sell a 14 percent stake in the panel maker to Toshiba Corp. LG Philips LCD is a joint venture between South Korea's LG Electronics and Royal Philips Electronics NV, in which LG holds a 37.9 percent stake and Philips holds a 32.9 percent stake interest. Earlier, the two companies agreed to maintain their holdings in the venture to at least 30 percent each until July 2007.
Telecommunications
ò Shin Satellite announced the expansion of its satellite broadband services to South Korea and Japan following the signing of a deal with a leading VSAT operator in South Korea and the finalization of another this month with Japan's leading fixed and mobile phone operator. The SET-listed satellite affiliate of Shin Corporation said that the two agreements should help the company earn 2 billion baht ($61 million) in revenue annually once full-scale services are provided. According to an official, Shin Satellite signed a deal with South Korea's OCL to invest in an iPSTAR gateway in South Korea using spot-beam technology, as the technology is said to be suitable for covering a relatively small portion of the earth's surface, such as South Korea. As the OCL has an operating license, it is expected to boost Shin Satellite with technical support as well as negotiate any policy matters with the Seoul government. On co-operation with Japan, Shin Satellite said it would enter an agreement with one of the top three fixed-line and mobile phone operators. Shin Satellite provided satellite bandwidth of 600-700 Mbps in the South Korean market, he said. But in Japan where demand is high, one gateway would provide three spot beams with bandwidth of 3,000 Mbps. Shin Satellite said it had been negotiating with at least seven operators in Korea and finally chose OCL. In the third quarter, the company said it is planning deals in Malaysia, Indonesia, the Philippines and Taiwan.
ò KT, the countryÆs leading telecommunications service provider, LG-Nortel and Nortel announced their launching of a joint collaboration initiative at KT's Mobile WiMAX Service Conformance Verification Center (SCVC) in Seoul, South Korea. LG-Nortel is a joint venture of LG Electronics and Nortel. The centerÆs laboratory provides a venue for customers and other third parties to evaluate the compliance of their products with Mobile WiMAX standards as well as test applications and equipment from different manufacturers for seamless communications. Under the agreement, LG-Nortel and Nortel will supply and install Nortel's innovative Mobile WiMAX technology at the center, and provide ongoing technical support. The center is also expected to facilitate KT's own transition from existing Single Input / Single Output (SISO) to next-generation Multiple Input / Multiple Output (MIMO) antennae. The shift is seen as enabling KT to take advantage of the benefits of MIMO technology, which includes high bandwidth, improved range, and high mobility at a lower cost.
Semiconductors
ò Following the news that it has plans to sell its 200mm wafer production line to Taiwan Semiconductor Manufacturing Company (TSMC), the stock price of Hynix Semiconductor has been noted by observers as rising. According to CLSA Asia-Pacific Markets, there is an ongoing talk between TSMC and Hynix on the deal. A Hynix spokesperson said they have several buyers although the company has not yet made any final decision on which suitor to favour. Industry sources indicate that as of the beginning of this year, the price of some key chips has registered a decline by more than 70 percent.
Information Technology
ò According to the countryÆs Ministry of Information and Communication, South Korean exports of information technology (IT) goods registered more than 4 percent growth in May compared to what it posted in the same month last year. The report attributed the rise to overseas sales of display products. The ministry said the countryÆs companies made a shipment valued at US$9.4 billion. China
Internet
ò Baidu.com issued a denial about the news that it has plans to expand into Europe, with the company calling the rumors ôgroundless.ö Earlier, media sources in Europe indicated that BaiduÆs CFO has planned to announce details of a European expansion. Though BaiduÆs business is concentrated in China, the company has launched a Japanese search engine, which marks its entry into the international market. With the launch, Baidu also stated its plan to spend some US$15 million on its Japanese site in 2007.
ò Amazon announced its plans to up its investment in Joyo.com, one of China's leading online shopping web sites. Following AmazonÆs acquisition of Joyo for $75 million, the Chinese company has been registering faster growth even as it still lags behind its main rival, Dangdang.com. The first quarter of 2007 showed Dangdang grabbing about 18 percent of the countryÆs B2C Internet Retailing market, compared with JoyoÆs 12 percent share. At present, Amazon generates 54 percent of its sales outside the US. According to Analysys International, ChinaÆs B2C market hit 1 billion yuan ($133 million) in the first quarter, compared with the 854.3 million yuan (US$111.6 million) it posted a year earlier.
ò According to media sources, Tom Group and Tom Online have jointly announced plans to postpone a special court meeting and a shareholder meeting scheduled to tackle the privatisation of Tom Online. The reports described the postponement as an effort on the part of the company to give its shareholders more time to think about the privatisation move. In March this year, Tom Group divulged plans to have Tom Online privatized. The same plans were approved through a privatisation resolution that received a 99.3 percent approval from the company's shareholders at a special meeting.
Mobile/Wireless
ò Following the announced cuts of more than three thousand employees worldwide earlier this year, Motorola has announced plans to cut some 4,000 more jobs globally. The decision to do so, according to the company, is aimed at improving its overall operation. The report did not indicate if the workers will be affected in China, although it indicated that Motorola China might feel the impact of the staff reduction overseas. The director of Motorola China's Communications and Public Affairs Department explained the move as part of the companyÆs strategy to meet the need for business adjustment. The official said Motorola China is committed to the Chinese market for the long term, with the company indicating that its investment in China will even be increased.
ò Fetion, a mobile chat service provided by China Mobile, announced the beginning of its commercial operations. With Fetion, China Mobile plans to offer the service free of charge, and target about 25 million users for it within this year. China Mobile has made Fetion one of the group's three main projects of this year, seeing it as the link between the Internet and the telecom networks. It is also part of China MobileÆs strategy to market Fetion as a complete comprehensive communications service that will focus on wireless communications.
ò China Yahoo announced its plan to launch oneSearch, a mobile phone based search service. Earlier, the company went through a significant name change from Yahoo China to China Yahoo. The search service was first introduced in North America at the beginning of 2007 and later brought to Europe in May. Industry analysts consider oneSearch to be one of the biggest programs of Yahoo.
Ventures/Investments
ò Ctrip.com, an online travel service provider, revealed its plans to set up a travel agency in Beijing. Called the Beijing Ctrip Travel Agency, Ctrip's new company is expected to compete directly with traditional travel agencies. The company said it aims to launch overseas group tour products in a bid to grab a share of the high-end tourist market expected to yield higher profits.
Telecommunications
ò According to the chairman of China Netcom, the company is targeting about 50 percent of its capital expenditure in 2007 on broadband services and upgrades. For its 2006 fiscal year report, China Netcom posted a 34.9 percent rise in its broadband revenue at 10.5 billion yuan ($1.3 billion), and by the end of 2006, the broadband user base rose 31.4 percent to hit 15 million. Industry estimates placed China Netcom's capital expenditure in 2007 at about 21 billion yuan ($2.7 billion). These figures are significant when placed in the context of forecasts that, by April 2007, China would have 57.2 million broadband users.
Taiwan
Internet
ò PChome Online, a web portal and the operator of Skype VoIP services in Taiwan, announced the launch of the Skype Pro service. PChome said Skype Pro breaks with the convention of charging users based on the length of a conversation. The service has been launched in 27 other countries around the world, including Hong Kong, Singapore, Australia, New Zealand and Guam in the Asia Pacific region. At present, there are about 6 six million Skype users in Taiwan, including about 550,000 chargeable users and about 1,000 business ones. PChome generates revenues of about NT$350 million (US$10.6 million) from Skype services each year, which represents 6 percent of its total revenues.
Media, Entertainment and Gaming
ò Chunghwa Telecom (CHT) announced the launch of Senior Lovely, an animation movie designed for play on handset screens. This is the first animation movie specifically targeted for 3G handset platforms in Asia, CHT emphasized. CHT said it has invested NT$12 million ($363,746) in the production of Senior Lovely, which was done by Spring House Entertainment in which CHT holds a 30 percent stake. CHT said it has made additional investments for Spring House to produce two more handset-tailored animation movies for launch in the second half of this year and a flagship one, costing NT$60 million ($1.8 million) alone, for launch in 2008, making the total investment of CHT reach NT$80 million ($2.4 million). Outside of video or films, CHT has made investments in the production of handset-playback music. The company said it is looking to work with providers of online gaming and e-learning services.
Ventures/Investments
ò According to Institute for Information Industry, Taiwan and Vietnam signed a memorandum of understanding aimed at bolstering high technology exchanges and cooperation between the two countries. The memorandum called for increased investment from Taiwan in Vietnam's information technology industry. According to Taiwan, relocating part of its investments to Vietnam will help reduce the risks from concentrating too much investment in China and create a situation that will bring benefits to both Taiwan and Vietnam. The official also cited a report from International Telecommunication Union indicating that Vietnam has registered the world's second highest growth in the telecommunication industry in recent years, second only to China. Taiwan remains the largest investor in Vietnam.
Hardware
ò Axiomtek, a Taiwan-based industrial PC (IPC) maker, announced that it has set up Axiomtek Display Solutions (ADS), a subsidiary that will focus on the production of displays specifically for use in IPCs. Axiomatek holds a 60 percent stake in the new company, which is seen as generating revenues of NT$70 million ($2.1 million) in 2007. The figure would stand for a bit of an operating loss although the company is expected to gain profit in 2008 on revenues of NT$150-180 million ($4.5-5.4 million).
Hong Kong
Media, Entertainment and Gaming
ò Hong Kong based Artificial Life, Inc. a provider of award winning mobile 3G technology and applications, announced that it has entered into a partnership with Telecom New Zealand to launch the latest mobile games in New Zealand. The agreement provides for bringing to Telecom's over 1.8 million mobile customers Artificial Life's top mobile games, which include America's Next Top Model Series 7 and 8, V-girl, V-Penguins, Poli the Bear and others. The agreement covers the games and their accompanying side products like wallpapers and screensavers. The Telecom Group provides telecommunications and ICT services in New Zealand and Australia. It is the principal supplier of telecommunications services in New Zealand. Artificial Life, Inc. is a public U.S. corporation headquartered in Hong Kong and a leading global provider of award winning mobile technology, content, games and applications.
Telecommunications
ò Media sources said that Hutchison Telecommunications (Hong Kong), a telecom subsidiary of Hutchison Whampoa and Cheung Kong Holdings, have entered into an agreement to subscribe to shares of a Taiwanese telecom startup waiting for a WiMAX license. Previous reports indicate that the Hong Kong telecom carrier has been interested in Taiwan's telecom market, with the company managing to purchase Asia-Pacific Broadband Wireless Communications Inc. shares from Deutsch Bank AG when the Taipei District Court granted the German bank the right to sell its shares of the Taiwanese telecom provider. Recent developments show that other overseas companies are interested in investing in Taiwan's WiMAX-telecom service. Earlier, Intel Capital, Intel's venture-capital arm, signed an agreement with First International Telecom, an affiliate of the First International Computer, to put money into the Taiwanese telecom provider once it has received a WiMAX license.
Singapore/Malaysia/Philippines/Indonesia
Internet
ò According to the Ministry of Information, Communication and the Arts, the government of Singapore announced that the countryÆs Spam Control Act will take effect next week with the city-state aiming to control unsolicited advertising. Under the new policy, marketers based in Singapore convicted of spamming can be fined up to S$1 million ($657,000), the Ministry of Information, Communication and the Arts said in a statement. The ministry said the new rule will provide a way for a better management of unsolicited commercial electronic messages sent in bulk, otherwise known as ôspamö. The US, Japan, South Korea and Australia already have anti-Spam laws.
Media, Entertainment and Gaming
ò Ozura Mobile, a leading international publisher and developer of mobile entertainment, and Maxis Communication Berhad (Maxis) announced their joint launching of the worldÆs first mobile trading card game, Master of Maya in MaxGames, a tournament based mobile gaming and community portal. Master of Maya, a real time multiplayer game published by Nokia Siemens Networks, articulates the classic trading card game concept with MaxGames which is powered by OzuraÆs FunlogiX to enhance mobile usersÆ experience. An Ozura official said that the game has skillfully united the perception of trading cards with the technologies of the current mobile phones. Ozura Mobile is a company that creates games for mobile phones based on J2ME, BREW or Symbian platform. OzuraÆs games are available all over the world through its distribution network of thousands of partners spanning across 130 countries. The Maxis Group is the regionÆs emerging mobile telecommunications Group serving nearly 13 million customers as of December 2006. It has operations in Malaysia, India through subsidiary, Aircel Limited, and Indonesia through PT Natrindo Telepon Seluler. Nokia Siemens Networks is a leading global enabler of communications services, with operations in some 150 countries.
Telecommunications
ò Goldman Sachs disclosed that it has reaffirmed its "buy" recommendation on Philippine Long Distance Telephone (PLDT) and increased its 12-month target price to 3,000 pesos ($64.2) from 2,700 pesos ($58), justifying the move as based on a positive economic landscape for the country biggest telecommunications firm. Goldman Sachs said it looks to PLDT's core profit to reach 34.8 billion pesos ($747.7 million) in 2007, a forecast that would exceed the company's guidance of 33 billion pesos ($707.2 million), and 36.9 billion pesos ($790.7 million) in 2008. The climb is attributed to expected higher revenues from PLDTÆs mobile and business process outsourcing (BPO) operations.
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