Japan
Internet
- Yozan announced that it would team up with two other firms to start offering a wireless IP (Internet Protocol) telephony service employing WAN (wide area network) technology. Once the government approval for spectrum use for the service is given, trials will be conducted in Tokyo this June, with data and voice service to begin in December. The service will charge a monthly rate of 3,000 yen ($28.3). The company will be using WiMAX technology, which is being promoted by Intel Corp. Yozan will install wireless WAN equipment at 600 of its base stations in central urban areas. Each base station will provide coverage for areas with radii of several kilometres. Terminals will be developed and supplied by Airspan Communications of the UK and Bell Net of Japan.
- Softbank reported a third-quarter loss on marketing costs even while it move into fixed-line services. The net loss for the company, said to be challenging NTT for leadership Japan's high-speed internet market, was 26.5 billion yen ($251 million) for the three months ended December 31, compared with 16.4 billion yen ($156.3 million) for the same quarter last year. Sales, however gained an 89 percent growth to 258.1 billion yen ($2.4 billion), a figure ascribed to contributions from its fixed-line unit Japan Telecom Co. A company official said the company aims to transform this internet venture capital company into a full-service phone company even as an official statement admits that Softbank's main broadband and fixed-line businesses are still in the red. The company reported an increase in the number of subscribers to the Yahoo! BB digital subscriber lines rose by 55,000 to 4.7 million as of the end of January from a year earlier. Despite this achievement, the company may not get its target of having 6 million high-speed internet subscribers by the end of September.
Software
- The Bank of Tokyo-Mitsubishi and UFJ Bank have reached an agreement to adopt a core computer system made by IBM Japan. The move, according to analysts, will likely cause Hitachi to lose its job of developing key computer systems for the mega banks. The system to be used by the two banks will administer fund inflows and outflows from accounts. Hitachi, however, will likely be asked to develop another key computer system for BOT-Mitsubishi/UFJ to oversee individual financial products, such as loans and foreign exchange services. Hitachi established a joint computer systems development venture with UFJ Bank in October 2002. The company has since been developing systems for the bank. The accord reached by the two banks to use an IBM Japan-made system means Hitachi will lose about 100 billion yen ($945.4 million) in revenue, the sources said.
Hardware
- Japan's Sharp Corp said it would buy Fujitsu's liquid crystal display (LCD) business. This move is the latest consolidation in the fast-growing but highly competitive market for thin displays. Sharp's announcement followed the announcement that Matsushita Electric Industrial and Hitachi will tie up in plasma panels. The product is one of those that have been affected by price falls. Panel makers increased production last year assuming that people would trade in bulkier sets using cathode ray tubes for slick flat-panel televisions at a brisk pace. What happened though was that slower than expected demand and competition made significant dent in the profit margins. Price competition has also been intense in small and mid-sized LCDs used as computer screens and displays for mobile phones. Fujitsu will sell its loss-making LCD business, including research and development, manufacturing and sales operations, to Sharp for an undisclosed amount. Fujitsu has primarily focused on producing LCD panels for use in PC monitors. Sharp is the world's largest maker of LCD panels for televisions but is also a leading producer of small and medium-sized LCDs. Sharp also said the move would strengthen its development and production of displays for mobile phones, game consoles and other mobile devices. For Fujitsu, the deal with Sharp will be its exit display market, which it described as volatile. The two deals are the latest in a series of realignments among Asian flat-panel makers.
- Matsushita Electric Industrial Co. has announced a product that will significantly developed a way to boost the image quality of the MOS (metal oxide semiconductor) sensors used by camera phones to take pictures. Each picture element in the new MOS sensor measures just 2 microns on a side, making it less than two-thirds the size of the elements in today's mainstream MOS sensors. The smaller size gives the MOS sensor with an imaging area of 0.25 inch can capture full-color shots with a resolution of 2 million pixels. In comparison MOS sensors of this size have only 1 megapixel resolution. Matsushita makes the MOS sensor using a 0.15-micron design rule and a special technology that enables each transistor to be shared by four picture elements. This reduces the total transistor count and allows more pixels to be packed into a given space.
- Japan's Nikon said it reversed losses to post a net profit of 23.4 billion yen ($221.2 million) in the nine months to December. The company attributed the gain on brisk sales of high-quality cameras and chip-making equipment. Nikon suffered a net loss of 2.8 billion yen (US$26.4 million) during the same period in 2003, when it was hit by a delay in raising the output of some digital cameras and by price competition. It said sales of "steppers", used in making integrated circuits and liquid crystal displays, remained firm because of a recovery of investment in equipment at home and robust demand from the rest of Asia. Sales of high-quality single-reflex digital cameras were firm but those of compact digital cameras were affected by "tougher competition and declines in prices", the statement said. For the year to March, Nikon forecast a net profit of 28.6 billion yen (U$270.3 million), compared with a net profit of 2.4 billion yen ($22.6 million) the previous year, on sales of 660 billion yen ($6.2 billion), up from 506.4 billion yen ($4.7 billion).
Semiconductors
- IBM, Toshiba and Sony are jointly releasing a pilot model of a next-generation microprocessor unit (MPU) that features nine central processing units (CPUs) on a single chip. The overall performance of the cell chip is up to 10 times that of the most advanced MPU currently available for personal computers. The MPU, measuring 221 sq. mm, consists of a core CPU for controlling an entire chip and eight other processors, each of which handles different tasks, such as image processing and communications control. The configuration is said to enable the MPU to operate at high speeds and save on power consumption. IBM and Sony will start producing the MPU on a trial basis this year in the United States and Japan, respectively, with a view to beginning full-scale production next year. Toshiba also plans to make the product at its plant Japan. Sony plans to incorporate the MPU into its television sets and video game consoles, while Toshiba plans to use it in its TVs and IBM will adopt it for high-performance computer workstations. The three-way development project involving the major companies was launched in 2001.
- Seiko Epson Corp. announced that it has developed a thin, bendable micro processing chip that can be utilized in electronic paper as well as personal computers that can be rolled up or sealed onto a surface in complex shapes. Companies are already actively developing bendable electronic paper but these products need flexible microprocessors for it to be commercialized. The Seiko Epson product paves the way for the development of sheet-like PCs and PDAs as well as IC cards that will not break even when bent. The company said it would try to further improve the chip, with the aim of commercializing it in four to five years.
Media, Entertainment and Gaming
- KDDI, Okinawa Cellular Telephone Co. and Square Enix Co. have jointly set up a portal site allowing users to access cell phone-based games offered by 43 companies. The portal is designed to enhance the convenience for game players, as game firms currently operate their sites independently. The new service, called EZ Game Street!, is provided by KDDI and Okinawa Cellular. Square Enix provided its knowledge in setting up the portal site. The service allows users to access more than 350 games, including those offered by Square Enix, Sony Computer Entertainment Inc. and Namco Ltd. The new portal also lets viewers browse web sites offering tips on the latest games and how to improve their game-playing skills. The companies said they are considering allowing consumers to purchase home-use games via the portal.
Korea
Mobile/Wireless
- Electronics manufacturers and Korean mobile-phone carriers Samsung Electronics, LG Electronics, SK Telecom, KT Freetel and LG Telecom announced the establishment of the Mobile RFID Forum. The companies said that they are combining efforts to develop and promote the use of radio-frequency identification technologies for mobile phones and short-range transmission between wireless devices and WiBro portable internet receivers. The technology would enable consumers to receive real-time information on consumer products or services through microchips embedded in their handsets. There were 60 companies at the founding of the Forum even as fixed-line telephony operator KT Corp., mobile-phone maker Pantech Co. and chipmaker MagnaChip Semiconductor Ltd. said it will also join the Mobile RFID Forum. The technological level of the country's RFID is acknowledged to be lagging behind that of the United States and Japan. Industry watchers believe that the integration of RFID with the country's advanced mobile communications environment is a natural step to closing the gap.
- Aicent, Inc. and SK Telecom announced that they have entered a CRX (CDMA Roaming Exchange) Service Agreement. The agreement will allow SK Telecom to use Aicent CRX to set up data roaming partnerships with other global CDMA2000 operators. This will thus enable the mobile subscribers to enjoy the same advanced data services using the roaming partners' networks even while traveling outside the home network. The agreement is, on record, one of the first CRX commercial contracts in the CDMA community after the release of the CRX guidelines by the CDMA Development Group last year. California-based Aicent is a leading provider of mobile data network services and solutions for global mobile operators. SK Telecom is Korea's leading provider of information and communications services that include mobile services, e-commerce, overseas operations and subsidiaries.
China
Internet
- Beijing-based Sohu.com's fourth-quarter profit for last year fell 44 percent from the same period a year earlier amid a revenue drop after a state-run telecoms carrier suspended its picture-messaging business, the company said. Sohu's 12-month suspension, according to the company brought its fourth-quarter net income down to $6.5 million from $11.6 million. The loss came despite its improved advertising revenue. Revenues fell 2 percent to $24.1 million. The loss in the earnings for the fourth quarter was said to have been caused by the lower revenue from wireless services. Non-advertising revenue, composed primarily of wireless, was $8.2 million in the fourth quarter down 46 percent from a year ago. What offset the reduction was the advertising revenue, which rose 68 percent from last year to $15.9 million. Of those affected by the crackdown initiated by China Mobile, Sohu.com appears to be the most affected. The effect of the sanction underscores the perceived continuing risk for companies pioneering internet-based services in China, whose media have long been state-controlled. Sohu was penalized last year for not seeking approval before it sent nearly 1,400 unsolicited text-messages.
- SINA Corporation, a leading online media company and value-added company information service provider for China and the Chinese communities in other parts of the globe, announced a 49 percent year-over-year growth of its revenues to a record $56.9 million. Advertising revenues for the fourth quarter posted a 41 percent year-over-year growth to $18.3 million and accounted for 32 percent of total revenues. Non-advertising revenues for the fourth quarter grew by 52 percent year-over-year to $38.6 million and composed the 68 percent of the total revenues. The company posted a GAAP net income for the quarter of $17.4 million compared to a net income of $9.3 million for the same period in 2003. Its non-GAAP net income for the quarter amounted to US$18.4 million, compared to the non-GAAP net income of US$15.9 million. For the fourth quarter, SINA continued to benefit from its diversified product offerings in mobile value-added service. Revenues from 2.5G (MMS and WAP) products and other new services grew approximately 28 percent from $5.2 million for the third quarter to $6.7 million for the fourth quarter.
Mobile/Wireless
- China Telecom expressed its desire for the Chinese government to end years of waiting and finally act upon the plan to issue 3G mobile licenses. Presently, the industry is waiting for the TD-SCDMA but watchers say to do so would be harmful to the development of 3G in China. TD-SCDMA is a 3G technology that has been basically been developed in China. Its development, however, lagged greatly behind rival 3G standards W-CDMA and CDMA2000, technologies that have been deployed already in commercial 3G networks in other countries, including South Korea and Japan. The slow development of the homegrown technology has been interpreted as the reason why the government has not yet issued the licenses. The report said the Chinese government will likely issue 3G licenses during the fourth quarter of this year. It also indicated that there are signs the government will issue three licenses. Before, there were rumors that four licenses would be issued. China has two cellular operators, China Mobile and China Unicom. The country's two fixed-line operators, China Telecom and China Netcom do not have licenses to offer cellular services and have long been wanting to tap into China's growing demand for mobile services.
- China Unicom said it had no intention to sell or transfer its mobile communications network. It also said that there were never talks with other telecommunications operator that would facilitate a transfer or a sale. China's telecom industry is dominated by four carriers - two focused on fixed service and two on mobile. Speculation on a significant restructuring of the industry came about as China started preparing to draft plans leading to the building of 3G cellular networks. Some market observers have expressed that the issuance of four nationwide 3G licenses would demand a heavy capital spending burden on the smaller carriers and thus will generate intense competition. Industry watchers believe that a network sale by Unicom would reduce the pressure on China Telecom and China Netcom to immediately build nationwide mobile networks once they receive the licenses to operate 3G services.
Taiwan
Mobile/Wireless
- Taiwan operator Far EasTone Telecommunications and its subsidiary Yuan-Ze announced its selection of Ericsson as the supplier for its W-CDMA network expansion in Taiwan. Under the deal, Ericsson will deliver a turnkey 3G system to expand Far EasTone/Yuan-Ze's coverage in Northern Taiwan to support its 3G commercial launch. The agreement includes a turnkey system, W-CDMA radio access network, operation and maintenance system and a portfolio of telecommunication services for Yuan-Ze Telecommunications. The report said the project would be implemented immediately.
Hardware
- THT Research estimates that Taiwan notebook computer makers will continue to dominate the 2005 global contract manufacturing industry, with the top five Taiwan players making over 65% of the world's notebook computers. The global notebook computer industry continues to grow at a rate of over 20% annually, and Taiwan's share of that market is growing faster than the global market. In 2005, Taiwan's percentage of notebook computer shipments is expected to reach 73.7%. THT estimates that the top producing Taiwan notebook makers, in terms of global market share for 2005, will be: Quanta Computer (25.9%), Compal (17.4%), Asustek (8.5%), Inventec (7.5%), and Wistron (7.5%). The wild card in the industry is Foxconn Electronics (Hon Hai Precision Industry), which entered the notebook computer business in 2004 and is expected to emerge as a major player over the next couple of years.
- Acer Inc. has moved one step closer to attaining its goal of being among the top three PC makers within the next few years, according to a report by iSuppli Corp. The Taiwanese PC maker broke into the top five in sales last year. Two other market research firms, Gartner and IDC, validate the information. iSuppli said Acer posted the strongest growth among the top ten PC makers in 2004, with sales rising to 6.4 million units, up 44 percent from 4.5 million in 2003. That growth rate handily bested market leader Dell, which turned in an impressive 22.8 percent gain. Acer attributed its strong performance to its direct-channel business model. The company said its strategy of dealing directly with computer resellers has allowed it increased efficiency and, at the same time, took it closer to its customers. The firm said worldwide PC shipments grew 13.4 percent to reach 191.4 million units in 2004, up from 168.8 million in 2003. Notebook PCs, in particular, did well with a 22.1 percent rise in shipments. Acer's strongest asset is its notebook division in Europe, which is ranked No. 1. The firm's 3.4 percent market share pushed it past Toshiba Corp. to take fifth place, and this year there is a possibility that it would overtake fourth-ranked Fujitsu-Siemens at 3.7 percent. Industry watchers, however, see Lenovo's acquisition of IBM's PC division, when approved by U.S. officials, may pose a barrier for Acer to continue with its growth. iSuppli said PC growth will moderate this year, as the corporate "Y2K bubble cycle comes to an end and the market settles down to a more normal replacement rate." Sales are predicted to increase 8.2 percent this year and maintain a compound annual growth rate of 10 percent from 2004 to 2009.
Hong Kong
Internet
- Hutchison Global Communications Limited (HGC) and Skype, the Global Internet Telephony Company, announced that they have entered into a partnership aimed at promoting and delivering Skype software to the Hong Kong market. Under the agreement, the two firms would bring Skype to Hong Kong by means of a portal carrying the brand "HGC-Skype". The partnership makes HGC the first Fixed Telecommunications Network Services (FTNS) operator in the world to have a co-branding agreement with Skype Technologies S.A. The deal with Skype is strategic and follows HGC's recent broadband/pay TV collaboration announcement to deliver multi-play applications and content. Hutchison is the operator of the largest fiber-to-the-building network in Hong Kong.
Media, Entertainment and Gaming
- Galaxy Satellite Broadcasting Limited and Hutchison Global Communications Limited (HGC) announced their cooperation agreement that aims to deliver Galaxy's pay TV service. With the agreement, the two companies will join forces in the cross selling and delivery of infotainment services to customers using a broadband network. The two companies hope that this move will help speed up the development of the local pay TV market. The partnership will allow them to offer bundled service packages that put together Galaxy's pay TV services and HGC's broadband services. To avail of these services though, the customers have to install a set-top box with HGC's broadband connectivity so that they could access Galaxy's TV programs.
Singapore/Malaysia/Philippines/Indonesia
Mobile/Wireless
- A second round of bidding for two remaining high-speed third-generation (3G) mobile phone licenses in Malaysia may start soon, according to an industry source. The report also said the government was looking into the possibility of opening up the market to foreign operators by way of a bidding. The government, however, also said that it is weighing the situations between limiting the bid to telecommunications companies only or to allow any company to participate in the bidding. In July 2002, the government awarded 3G licenses to Telekom Malaysia and Maxis Communications. The two companies are expected to spend M$7.5 billion ($2 billion) over the next decade to roll out 3G services later this year. Malaysia's smallest mobile operator DiGi.com last November revived its bid to secure a high-speed 3G license. With Malaysia's mobile phone penetration rate reaching more than 30 per cent, the government hopes to speed up adoption rates and reach an official target of 38 per cent by this year with new 3G networks.
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