Internet
ò IIJ (Internet Initiative Japan), announced a joint venture agreement with U.S.-based GDX Network, Inc., a 100-percent owned subsidiary of Denver-based MX Logic, Inc., to form GDX Japan, K.K., which will provide a new-generation message exchange network service. MX Logic is an IIJ partner that provides technical expertise for e-mail solutions. IIJ said it sees the joint venture with GDX Japan as allowing the two companies to develop worldwide services and localize them for release in Japan by the fall of 2007. Under the alliance, GDX Network and GDX Japan will build a reliable private network infrastructure to ensure the deliverability and security of e-mail. IIJ administers hundreds of thousands of e-mail accounts in Japan.
Software
ò Mitsubishi Electric Corp. of Japan and Wonderware, a business unit of Invensys, reported the signing of a new software alliance agreement. Mitsubishi, a supplier of PLCs, said it aims to tap Wonderware software with its Mitsubishi hardware to deliver enhanced automation and information solutions to its customers worldwide. Under the alliance, Wonderware and Mitsubishi will cooperate on marketing activities that promote the customer value of the technical integration between their offerings. According to Wonderware, its software already is used in more than 100,000 installations around the globe, and the company is still investing heavily in ensuring continued software innovation. WonderwareÆs focus is in the areas of open integration, visibility, analysis and the use of real-time information to power intelligent plant and business decisions across a broad range of plant hardware, manufacturing software and business systems.
Mobile/Wireless
ò Industry sources said Japanese mobile phone giant KDDI plans to launch a mobile phone service in the U.S. The source said that the company will not venture in to building its own network but act a so-called Mobile Virtual Network Operator (MVNO), renting spare capacity from a U.S. carrier. The move is seen by analysts as proof that there is already little space for growth in saturated home markets in Asia, pushing mobile service providers in more prosperous Asian nations to tap oversea markets for expansion. The U.S. market has not proven to be an easy one for Asia's mobile telcos. NTT DoCoMoÆs attempts to gain access to the US market were not successful. Helio, a joint venture of South Korea's SK Telecom and US ISP EarthLink, has found growth also difficult. Inside sources said KDDI plans to target a niche service at Japanese-speaking residents and travelers. Information on the new service's web site suggests that KDDI will not be offering its most sophisticated Japanese handsets to US customers. KDDI will rent mobile network bandwidth from US carrier Sprint Nextel for the service.
ò Willcom, Japan's largest PHS carrier and the first in the country to introduce a WindowsMobile5.0 device, reported its selection of the Nokia Intellisync Mobile Suite as the foundation for its mobility offering. The Nokia solution is developed as a single, manageable platform for both mobile operators and enterprises. It is expected to power Willcom's business offering for WindowsMobile5.0 devices. With the agreement, Willcom joins some 21 carriers around the globe that have selected Nokia mobileware in the last twelve months as the foundation of their mobility offering. Over 4 million customers use Willcom's voice and data communication services. In a separate development, Venturi Wireless, a global provider of mobile broadband services optimization, announced an agreement to supply its V5000 Optimization Engine and VClient optimization software to Willcom. Venturi's VClient optimization software will be made available to Willcom customers for use on the Sharp W-ZERO3 next generation mobile terminal.
ò Industry sources said IP Mobile Inc., a Tokyo venture authorized by the government to enter the mobile phone service market, has abandoned its plan, citing financial difficulties as the reason for the decision. The company is expected to return its business license to provide 3G wireless communications services. IP Mobile was awarded a license to operate at the 2.0-gigahertz frequency in November 2005, the same month Softbank Corp. and eAccess Ltd. were granted licenses to operate at the 1.7-GHz bandwidth. Industry observers are say that the three providers currently dominating the market û NTT DoCoMo Inc., KDDI Corp. and Softbank û are also expected to ask that the government reallocate the frequency to them. NTT DoCoMo has long dominated the domestic cell phone market with a market share of more than 50 percent, followed by KDDI, which operates the au service. Softbank entered the market last year by acquiring the Japanese unit of Britain's Vodafone Group PLC. After acquiring the unit, Internet conglomerate Softbank returned its license to the government.
Hardware
ò Toshiba Corp. and Matsushita Electric Industrial Co. Ltd. announced a joint venture to launch TV-use organic light-emitting diode (OLED) panels in three years. Analysts are saying the joint venture is targeting a US$35 billion market dominated by LCD and plasma panels. According to a spokesperson for the venture, Toshiba Matsushita Display Technology Co. Ltd., owned 60 percent by Toshiba and the rest by Panasonic maker Matsushita, aims to start commercial production of OLED panels for flat TVs by 2009. Besides Toshiba Matsushita Display, Sony Corp develops OLED panels for TVs. According to DisplaySearch, the market for TV-use liquid crystal display (LCD) modules is expected to be about US$27.4 billion, the demand for plasma panel modules will likely total US$7.5 billion, in 2007. OLED panels are considered to be energy-efficient.
Korea
Internet
ò Lycos, Inc., a leading community destination for high-quality broadband entertainment content, announced the re-birth of Gamesville, an interactive games destination on the Lycos Network. Gamesville has long been viewed as one of the most popular massively multi-player gaming sites on the web, where users meet and compete for free cash prizes daily. In celebration of its 11th year, Gamesville returns to its roots as an entertainment gaming destination where the emphasis is on fun and community. Unlike other gaming destinations, Gamesville features more of a game show experience where the real focus is on the player. The new avatar system allows Gamesville members to create their online gaming personas. Soon, members will be able to export their Gamesville avatars to their personal web sites, blogs and social networking profile pages. Lycos, Inc. is a wholly owned subsidiary of Daum Communications Corp., a leading Internet portal and e-commerce destination in South Korea with a presence throughout the Asian markets.
ò Innovative Card Technologies, Inc., developers of the ICT DisplayCard security device for e-banking, e-commerce and data access announced that Meritz Securities Co., Ltd. of South Korea is conducting a test using the ICT DisplayCard to authenticate online trading and ATM transactions. Meritz Securities is the first financial institution to publicly announce testing of the ICT DisplayCard. Meritz Securities is receiving its cards through the South Korea-based reseller Innet, Co, Ltd, which has also distributed the cards to NHN, one of the largest online gaming companies in Korea. Meritz Securities is currently testing the ICT DisplayCard with its employees for online account management and ATM transaction authentication. Meritz Securities handles US$360 billion in transactions annually and has ATMs in 31 branches nationwide. Its analysts offer news and market analysis in such media outlets as CNN International, Reuters, and Forbes.
ò CinTel Corp. (CinTel) announced that it has entered into an agreement to issue an aggregate 10 billion won (US$10.5 million) in convertible bonds (CB), convertible to the common stock of the company and successfully closed this funding simultaneously with the US$63 million in CB funding from Woori Private Equity Fund. Cintel said, with US$73.5 million, it would continue its trend towards strategic acquisitions in more diverse businesses focusing on the semiconductor industry and emerging technologies. The investors in the US$10.5 million CB are the Korea Culture Promotion Inc. and Phoenix M&M Corporation, which are affiliates of Bokwang group. An affiliate of Bokwang group, Phoenix M&M (Metal and Material) Corporation, founded on 1992, is a mineral processing company. Korea Culture Promotion Inc, founded in 1997, is an affiliate of Bokwang Group. Korea Culture Promotion Inc. issues "culture gift certificates" and "game culture gift certificates" and operates the culture portal site "Cultureland.ö Bokwang group is one of the largest conglomerates in South Korea with over 30 subsidiary companies in hi-tech, leisure, finance, retail, logistic and culture businesses. CinTel maintains its position as a leader in Internet traffic management (ITM) systems and it has also begun expansion into new markets and worldwide distribution of Korean and Chinese-based semiconductor technologies.
Media, Entertainment and Gaming
ò NCSoft announced the release of Interlude, an expansion to MMORPG PC Game Lineage II in North America and Europe. According to the gaming firm, Interlude is the next step in the evolution of Lineage II, linking the Chaotic Chronicle and the next chapter, the Chaotic Throne. The Interlude is free to all current Lineage II subscribers. Lineage II, the premier player-versus-player (PvP) massively multiplayer online game, has registered more than 17 million players worldwide ever since launching in 2003.
Software
ò IBM announced that it plans to open a business software research center, the Software Solutions Laboratory, at its South Korea head office in Seoul. The laboratory will be IBMÆs seventh such center, adding to offices already operating in the U.S., UK, Japan and China. The company said the new lab will focus on developing industry-specialized software, banking systems for large banks and web-based business management solutions.
Hardware
ò Samsung Electronics Co. Ltd. announced its plans to release an optical disc player this year that will play both Blu-ray Disc and the rival HD DVD format. Industry observers see the move as significant because Samsung is one of the known main backers of Blu-ray Disc format. The company said it looks to making the BD-UP5000 player available before the end of 2007 in the U.S., with the player expected to be available in Europe in the following few months. No details on possible pricing were also available. The news makes Samsung the second company to shift from a single-format stance and adopt the idea of a dual player than can read both formats, with LG Electronics Inc., also launching a dual player in North America earlier this year.
ò Samsung Electronics Co. reported its biggest profit decline in a year and a half, with its first-quarter net income going down 15 percent to 1.6 trillion won (US$1.7 billion), from 1.8 trillion won (US$2 billion) a year earlier. AsiaÆs largest maker of chips ascribed the results to a drop in semiconductor prices. Its revenue posted a 3.1 percent growth to 14.3 trillion won (US$15.3 billion).
Ventures/Investments
ò The SK Group announced that it would set up a proper holding company in a bid to disentangle its complex ownership structure. Under the plan, SK Corp, the groupÆs current de-facto holding company, will be separated into a holding company tentatively named SK Holdings and a business company tentatively named SK Energy-Chemical. In a separate development, SK President Chey Tae-won gave his 40.6 percent stake in Walkerhill hotel to SK Networks Co. According to an SK spokesperson, the company "will streamline the complicated shareholding structure before June 2009, with the envisioned holding company to have seven major affiliates under its wing, which include SK Energy-Chemical, SK Telecom, SK Networks, SK E&S, SKC, SK Shipping, and K-POWER."
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