a-week-in-tech-december-612

A week in tech, December 6-12

A roundup of all the latest tech news.
Japan

Internet
ò Industry observers said that Baidu.com Inc., China's biggest Internet search company, may need to add online shopping and mobile phone web searching to succeed in its plan to attract users from Yahoo Japan Corp., the country's most-visited site, following the announcement of ChinaÆs biggest Internet search company to start operations in Japan next year. The Beijing-based company cites its experience with non-English languages and similarities between Japanese and Chinese as a factor that will draw users in Japan. Yahoo Japan Corp. remains the countryÆs most-visited site. The plan of Baidu to go to Japan is happening, as the battle for online advertising spending between Google and Yahoo increases. An analyst from Ichiyoshi Research Institute stated that Yahoo might pose a greater challenge for Baidu in Japan. Yahoo's Japan unit is controlled by Softbank Corp., which also operates the country's third-largest mobile phone carrier. According to Analyses International, Baidu retains 44 percent of the search market in the first quarter in China.

Media, Entertainment and Gaming
ò Japaninvest Group plc, an independent research provider, announced the successful listing of its shares on the Tokyo Stock Exchange Mothers market. Japaninvest is an independent equity research group founded in London in 2002. As the leading independent equities research provider on Japan, Japaninvest provides overseas institutional investors with high value added English language research reports on Japanese companies, prepared by experienced analysts. In this role, the company acts as a bridge between Japanese corporations and overseas investors. By focusing solely on research services, Japaninvest's model enables it to offer reliable and timely research services free from any conflicts of interest with an investment banking business. Many listed Japanese companies, particularly in the small to mid-cap range, lack analyst coverage, even though they may potentially offer high investment value. Focusing on many of these under researched companies, Japaninvest provides clients with idea based, rather than coverage based research services and offers unique investment advice. Japaninvest's client base primarily consists of overseas-based pension and hedge funds that invest in Japanese equities as well as investment managers and fund managers who provide investment advice to such funds.

ò The Japan Society for Rights of Authors, Composers and Publishers (Jasrac), a Japanese entertainment group, has asked the popular video-sharing site YouTube to implement a system to prevent users from uploading videos that would infringe copyrights. The request was made on behalf of 23 Japanese TV stations and entertainment companies. Most videos posted on YouTube are homemade but the site also features copyrighted material posted by individual users. YouTube's policy has been to remove clips that infringe copyright after it receives complaints, but questions have continued to linger about the site's vulnerability to legal claims for distributing content owned by other media. YouTube has been negotiating with leading copyright holders and reached an agreement with several, letting the website post copyright music videos and other content in exchange for sharing ad revenue.

Software
ò DataDirect Networks Inc., the storage performance and capacity leader, announced that it has opened a fully owned subsidiary in Japan. The company said the subsidiary, DataDirect Networks Japan, will provide sales, marketing, training and technical support to its OEM customers and partners in Japan, and together with DataDirect's Chinese subsidiary, will also support the expansion of the company across Asia. A company official said that the move to establish a local presence in Japan is seen as enabling better support for its customers and partners, and will capitalize on the growing opportunity for high performance, high capacity storage solutions in the market.

Hardware
ò Major electronics retailers are starting to market cheaper, lesser-known models from start-up manufacturers, in an aim to make a name in the market. Byd:sign Corp., a start-up manufacturer of digital appliances, has formed alliances with four discount chains to begin marketing its 19-inch LCD TV. The TV is being sold for about 70.000 yen (US$172), which makes it 30 percent cheaper than models from manufacturing giants such as Sharp Corp. and Sony Corp. Two of the four chains -Osaka-based Joshin Denki Co. and Fukuoka-based Best Denki Co. - started selling the TV, and Mito-based Gigas K's Denki Corp. will begin handling the product next week. The retailers hope the low-priced TV, unavailable at rival chains, will act as a major draw, particularly during the year-end shopping season. Analysts said that Byd:sign formed the alliances in part to counter a similar tie-up between Yamada Denki Co and Funai Electric Co. Yamada Denki began handling Funai Electric's LCD TVs exclusively at its outlets in July. Funai Electric chose Yamada Denki as a partner when it decided to reintroduce its own brand of TVs to the Japanese market. Until recently, the manufacturer made products primarily for other companies to sell under their brands in North America. Another start-up making inroads with its LCD TVs in Japan is Nippon Polaroid KK, which has linked up with retailer Kojima Co. and looks to forming additional partnerships with other chains in the future.

ò Mitsubishi Electric Corp., a Japanese maker of factory robots and cell phones, and NTT DoCoMo Inc., the nation's biggest mobile-phone operator, announced their decision to recall 1.3 million handset batteries that may overheat. Sanyo GS Soft Energy Co., a Kyoto, Japan-based unit of Sanyo Electric Co, made the batteries. The Mitsubishi Electric cell-phone battery advisory follows Sony Corp.Æs move to recall laptop computer cells following reports that some had caught fire. Sony's replacement program has grown to 9.6 million cells, costing the company about 51.2 billion yen (US$440.1 million) and helping drag its annual profit forecast to a five-year low.
Korea

Internet
ò SK Telecom Co. announced the introduction of a new service allowing customers to exchange small gifts using their Internet chat programs and mobile phones. Called gifticon, the service is available to all SK Telecom, KTF and LG Telecom subscribers who use SK Telecom's NATEON messenger chat program and the gifticon.nate.com website. The company said the mobile commerce service is the first of its kind, aligning Internet chat and mobile phones. Payments can be made by credit cards, discount coupons, or reflected on monthly mobile phone subscription bills. SK Telecom has partnered with Starbucks, 7-Eleven convenience store chains and Haagen Dazs to provide this service. With the countryÆs wireless penetration reaching 82 percent, SK Telecom has been looking for new wireless Internet content and services with greater average revenue per user.

ò POS Data disclosed plans to invest heavily in Wi-Bro and IP communications solutions, which it expects to become a mainstream next-generation business. The company said that it would branch out into communications solutions for VoIP and Internet TV. It is already working on Wi-Bro solutions and has unveiled a VoIP handset as a part of expansion into IP solutions. It formed a partnership with U.S.-based gear maker Utis.com to secure IPTV solutions. POS Data now has a broad range of business models, which connect the wireless Internet with VoIP and video solutions. It is capable of developing solutions used to provide Internet telephony services over Wi-Bro and real-time broadcasting. POS Data said it plans to expand the product lineup, and launch marketing in link with IP solutions at home and abroad next year. The company has already launched a VoIP technology project adopting next-generation Internet address Ipv6. Earlier, it formed a partnership with communications solution venture GeneSystems to link core network technology with Wi-Bro and VoIP.

ò E-Land announced its incorporation of online game firm ECS, which it acquired in June this year into one of its affiliates under a new name E-Land C&C. The game affiliate with 1.5 billion won (US$1.6 million) in capital said it is ready to launch three online games: Iron Slope, QB Click and Blue Epic through SK game portal Game OK. E-Land's expansion into the game market came as the company joined hands with SK Corp., which was seeking to launch online entertainment service in link with its OK Cashback program. SK Corp. formed a deal with education firm-turned online game provider ECS to publish games and operate the Game OK site. Seeing business opportunities, E-Land bought ECA. Industry observers say that E-Land may tap into another M&A deal given that the company is aggressively expanding into new business areas.

Mobile/Wireless
ò According to mobile telecommunications sources, four out of every ten cellular phone subscribers in Korea use the 010 prefix on their mobile phones. The report said that new 010 subscribers were 42.5 percent (17 million) of the 40.0 million Korean cell phone users, the end of November. This figure is higher than last year's 35.6 percent (13.5 million) of the national total of 38.1 million subscribers. Of the total 20.2 million SK Telecom subscribers at the end of November, 7.4 million used 010, a turnover rate of 36.6 percent. The remaining 9.1 million kept their original 011 prefix. Meanwhile, 6.1 million (42.5 percent) out of the total 12.8 million KTF subscribers were discovered to be using 010, while 3.5 million (50.75 percent) of the total 6.9 million LGT users were using 010. The Ministry of Information and Communication (MIC) introduced the 010 integrated mobile phone prefix in January 2004 in a bid to unify the mobile phone prefixes and to rid the market of the phenomenon where subscribers would seek out a single mobile telecommunication service provider, based on their prefix preferences.

ò Samsung Electronics announced the development of the world's first mobile display driver IC (DDI) that combines the display driver and readout functions for touch-sensor-embedded display panels. Samsung's new DDI device enables the AMLCD itself to be touch-sensitive, eliminating the need for extra layers on the touch screen panel layer. This is done through the introduction of a touch-sensitive sensor into the pixel. This approach enables designers to dispense with the separate touch panel, raising light transmissivity, improving brightness and providing sharper on-screen images. Samsung's new DDI with readout function does more than drive the display. The device senses either charge or current signals from the TFT sensor array and converts them into data appropriate for image processing for detection of the touched location. By eliminating the need for a readout chip, the sensor embedded touch-screen system can be more compact and cost effective.

ò SK Telecom, TOSHIBA, Glocal Media, and International Mobile Broadcasting Pte. Ltd. announced the formation of the Pan Asian Mobile TV consortium to enable digital multimedia broadcasting for mobile operators in the region. Trials are set to begin in early 2007 with leading mobile operators in Asia. SK Telecom is Korea's leading mobile communications company with more than 20 million subscribers. Toshiba is the pioneer in digital multimedia broadcasting and is the founder of MBCO (Mobile Broadcasting Company in Japan). Glocal Media is a leading content aggregator. International Mobile Broadcasting is the holder of Asian mobile TV licenses and spectrum. The companies said the Pan Asian Mobile TV consortium is the region's first enabler for a regional mobile TV service.

Media, Entertainment and Gaming
ò Terrestrial DMB got off to a solid start by attracting 1 million users in seven months after its debut in Dec. last year, with the figure standing currently at 2.3 million. Despite the increasing customer base, the observation is that the industry fails to make a business model. During eight months from March to October, the nation's six terrestrial DMB broadcasters said they earned just 133 million won (US$144,000) through advertisements, its source of revenues. This means they have chalked up 27 million won (US$29,200) in monthly sales on average over the cited period, a fraction of their operating costs amounting to 700 million won (US$758,000) a month. A Mirae Asset analyst predicted that things would change when the user pool tops 5 million, possibly in 2009, and before then, DMB broadcasters will continue to suffer setbacks.

ò The countryÆs Ministry of Commerce, Industry and Energy announced that it has awarded NCsoft's ``Lineage'' as the best brand for video and PC games for the third consecutive year. The company said the revenue from Lineage and Lineage 2 hit 1.4 trillion won (US$1.5 billion) since 1998. There are 2.5 million users around the world, with some 600,000 playing simultaneously during peak time. NCsoft said that the new version, ``Lineage 3'' is being developed, but timing of its release has not been announced.

ò The first digital cinema service is expected to become available in May or June next year, accelerating deployment of digital service systems in the country. KT reportedly plans to select digital system providers by the end of this year and launch service by around June next year. The company already conducted a benchmarking test late last month, and is now evaluating system provider candidates. It is also in talks with cinema operators and film distributors on how to share revenues. Digital service systems will be providing higher video quality and more dynamic sound, allowing the audience to fully enjoy movies. Theaters will be able to improve quality of service, and lure more advertisers. KT said it plans to select providers of servers and projectors used in digital cinemas. Among bidders for servers are Qbiz, Dolby and Doremi. Among projector vendors are Baco, Kristi and NEC. One or two vendors in each area will likely be named to provide systems for the service set in May or June this year. KT earlier exchanged a memorandum of understanding with digital cinema businesses such as Lotte Cinema in September this year. CJ Group is also talking with CJ Powercast to provide digital cinema service at the country's largest multiplex chain CJ CGV. CJ Powercast already set up high-speed transmission networks across CGV theaters nationwide to convert ads into digital videos. The company said that the number of advertisers has doubled since the switch to digital ads, which offer higher quality videos and sound.

Software
ò Following the data published by Gartner Group, South Korea's embedded software production is forecasted to reach US$10 billion in 2010 showing an annual average growth rate of 5 percent from US$8.4 billion last year, to US$8.9 billion this year, to US$9.4 billion next year and to US$9.9 billion in 2009. The world's market average growth rate is expected to be 3 percent during the same period. According to the data, the worldÆs largest imbedded software production by industry is in the mobile phone area with 44.6 percent, followed by the medical sector with 22.6 percent, car manufacturing with 20.0 percent and electronics with 15.8 percent. The report noted that the proportion of embedded software by industry next year will be led by mobile production with 32.5 percent, followed by electronics with 20.5 percent and communications with 15.5 percent. The mobile industry is evaluated to be the most noticeable industry both in growth, speed and proportion.

Telecommunications
ò LG Telecom announced plans to launch a single-mode dual-band roaming phone supporting up to 800MHz as well as 1.8GHz PCS spectrums late this month, and roll out auto roaming service in 9 Asian countries including China, Thailand and Vietnam. The 800MHz spectrums are used in 18 CDMA countries in Asia, North America and Latin America, and LG Telecom is using 1.8GHz. The new service allows subscribers to the companyÆs service to keep and use their handsets outside the country. The new roaming phone adjusts the RF band to support the spectrums in a dual mode. LG Telecom is now providing test service in countries covered by the new service. The company has roaming contracts with China, Guam, Saipan, Vietnam, Thailand, Hong Kong, Taiwan and Macao. Competition in the global auto roaming service market heated up this year, as SK Telecom and KTF introduced a series of world phones used for some 90 countries across the world. SK Telecom provided support for roaming in 18 CDMA countries until last year. This year, it launched a world phone with Samsung Electronics, expanding the coverage into some 90 countries including Japan. KTF also jumped into the competition early this year, unveiling a world phone used in 82 countries in league with LG Electronics.
China

Internet
ò Redback Networks announced that it has secured the second phase of a broadband network upgrade with Guangdong Telecom. Under the deal, Guangdong Telecom will use Redback's SmartEdge family of multi-service edge routers to deliver broadband Internet, IPTV and virtual private network (VPN) services for up to four million homes and businesses. The deal makes it one of the largest network upgrades that Redback will help manage in China. Guangdong Telecom remains the largest independently run provincial carrier of China, with the company holding more than 50 million customers and contributing one-quarter of China Telecom's revenues and one-third of China Telecom's profit. Guangdong Telecom said it is planning to grow the broadband business more aggressively and double the number of broadband subscribers in the next year or two. China is Redback's second largest market outside of the US. In the last 18 months, Redback's SmartEdge multi-service edge routers have been deployed in 22 of the 32 provinces in China.

ò Taobao.com, Alibaba.comÆs C2C web site, announced that it has formally entered the service field by launching a real estate channel in cooperation with localized online lifestyle community Koubei.com. Industry observers note that this marks the first alliance between an online shopping website and classified information service provider. The alliance, according to analysts, has created a new business pattern based on C2C in China. Under the agreement, Koubei.com will provide content to Taobao's new real estate channel, with the housing information posted by Taobao's users to be synchronously published on Taobao.com and Koubei.com.

ò A study made by Baidu revealed that China had 19.8 million Internet bloggers at the beginning of last month, a figure that stands for a 24 percent increase from a year before. The report follows the announcement from state press stating that the Chinese government has plans to require millions of Internet bloggers to disclose their identities by registering under their real names. The same announcement has raised some concerns about individual privacy. The head of the Internet Society of China was quoted as saying that bloggers used their anonymity to spread ôirresponsible and untrueö information. No timetable was given as to when the government would implement the rule.

Media, Entertainment and Gaming
ò China Central Television (CCTV) announced its renewal of a multi-year contract for the global distribution of its programming with Intelsat. ChinaÆs national broadcaster became the world's first global Mandarin Chinese television service when it expanded services internationally via the PAS-3 satellite back in 1995. Intelsat currently provides a full-time program distribution services for CCTV via its PAS-1R Atlantic Ocean Region satellite, PAS-9 Atlantic Ocean Region satellite and PAS-10 Indian Ocean Region satellite. Intelsat also provides CCTV with capacity on its Galaxy 3C satellite for direct-to-home (DTH) services in the U.S.

Mobile/Wireless
ò Along Mobile announced signing a strategic partnership with China Mobile's Shaanxi Branch in a bid to enter mobile phone fee collecting services next year. At present, mobile phone fees are collected by different commercial banks, and business halls held by China Mobile and China Unicom. The subscribers can only choose from those business halls and the commercial banks where they opened accounts. With the strategic alliance, China Mobile subscribers will now be able to pay mobile phone fees at any place where Along's downloading machines are installed. Part of the service is that the users can pay their bill while they download pictures, ringtones and mobile games.

ò Linktone announced entering an exclusive partnership with China Health Media making Linktone the exclusive operator of short-messaging-services and interactive voice response voting platforms for China Health Media's interactive trivia questions and games. The mobile value-added service company has been described by Linktone as a ôperfect partner.ö China Health Media exclusively operates a network of audiovisual television displays to Chinese health care facilities, such as hospitals and medical clinics. Reports show that more than 1,000 hospitals in China use China Health Media's advertising network with total daily traffic surpassing 5 million viewers.

Software
ò Symantec announced entering into a cooperation agreement with Chengdu High-Tech Zone to invest US$20 million. The company said the investment will be used to build an R&D center for Symantec in Chengdu and is the company's second largest, next to its Beijing center. It will be mainly engaged in the research and development of security strategies, anti-virus software, information data protection, storage technology and storage safety.

ò CDC Software, a wholly owned subsidiary of CDC Corporation, announced the acquisition of Vis.align, a leading provider of IT support and managed services. CDC Software explained the acquisition as boosting its service portfolio, creating cross-selling opportunities, and offering customers additional end-to-end enterprise solutions and services. The Vis.align acquisition provides CDC Software customers with comprehensive services offering including infrastructure and application optimization, application development and outsourced managed services. Vis.align reported over US$20 million in sales in 2005.

Hardware
ò The countryÆs top electronics makers unveiled dozens of video players made with a homegrown DVD format in a campaign to promote a Chinese alternative to foreign technology. The DVD format, known as EVD, is part of state-backed efforts to create standards for mobile phones and other products and reduce dependence on foreign know-how and possibly reap licensing fees if they are adopted abroad. EVD, or Enhanced Versatile Disc, was first released in 2003, but an effort to promote it was dropped in 2004 after the players failed to catch on with consumers and producers squabbled over licensing fees. The move also adds a new twist to a rivalry between the HD DVD and Blu-ray Disc next-generation video standards being promoted by competing groups of U.S., Japanese and European companies.

Semiconductors
ò Littelfuse revealed its decision to relocate its semiconductor wafer manufacturing from the U.S. to China. The company said the transfer of its plant in Texas to Wuxi would be a phased transition over the next three to four years. Following the decision, the company said it will invest some US$16 million to build a new wafer fabrication facility in Wuxi adjacent to an existing plant the company acquired in May 2006 as part of its purchase of Concord Semiconductor. The company said the project is expected to generate US$9 to10 million of annual savings once the transfer is complete, with the closure of the plant causing pre-tax restructuring charges of approximately US$2.5 million in the fourth quarter of 2006 and approximately US$3.5 million over the period of 2007 to 2010.

Telecommunications
ò Juniper Networks announced that Chongqing Telecom, a wholly owned subsidiary of China Telecom has deployed Juniper Networks E320 Broadband Service Routers. The device is expected to help Chongqing Telecom deliver all of its advanced services in streamlined operations. According to Juniper, the deployment will help to cost-effectively address a growing demand for high-speed Internet, IP television (IPTV), video on demand and other advanced IP services to its extensive customer base. Chongqing Telecom operates one of China's largest and most advanced broadband networks, delivering high-speed Internet access, IPTV and voice over IP, among other advanced services in its service portfolio.

ò A report from Tianjin Airport Industrial Port states that ZTE plans to invest 5 billion yuan (US$639 million) to build its northern base inside the port. ZTE is the only mainland company that has been listed among the global 100 IT companies. With 2005 sales of 50 billion yuan (US$6.3 billion), the company was transformed, enabling it to become one of the major telecom equipment suppliers in the world. ZTE's northern base will include a regional R&D center, an innovative service center, a production center, a northern market headquarters and attached facilities. The company said the base will focus on WiMAX, 3G mobile phones, RFID and serve the global market. There are presently 13 R&D centers both in and outside of China.

ò Alcatel-Lucent, the world's largest supplier of communications equipment and services, announced that it will increase investment in China. The company said it will focus on the enterprise market and the launch of new networks across the mainland by telecommunications operators. The company, formed last week by the US$11.6 billion merger between industry rivals Alcatel of France and Lucent Technologies of the U.S, is expected to build up research and development, manufacturing and marketing activities in China. No details about the financial deal were disclosed. Investments in China estimated by the former Lucent totaled US$2.9 billion from 1985 to last year, while the former Alcatel acknowledged more than US$1 billion invested in the mainland as of last year.

Ventures/Investments
ò Guangdong Sun Wah Tech Consulting Group, an IT enterprise backed by the provincial government, is seen as enhancing IT outsourcing in southern China under an agreement with India's Tech Mahindra to create the biggest domestic software enterprise in Guangzhou. The group, formed in May between privately held Hong Kong conglomerate Sun Wah and the Guangdong Software Outsourcing Council, signed an agreement last month to set up a software outsourcing services joint venture with Tech Mahindra, India's eighth-largest software exporter, at the Tianhe Software Park in Guangzhou. Financial terms of the deal were not disclosed. Observers said that scale is comparable to those established by multinational IT suppliers in China. Professional services group Industry analysts said that Guangdong aimed to develop its IT outsourcing services industry into a world-class market similar to what is being accomplished by the car-manufacturing sector in Guangzhou. According to the Department of Science and Technology branch in the province, software exports from Guangdong totaled US$1.5 billion last year, up 9.9 percent from 2004, according to data from the Department of Science and Technology branch in the province.
Taiwan

Semiconductors
ò Taiwan's Powerchip Semiconductor Corp and Japan's Elpida Memory Inc have announced a joint venture whose value is placed at US$1.2 billion, with the two firms revealing plans to invest almost US$14 billion over five years. The two companies said the venture aims to build the world's largest memory chip facility in a Central Taiwan Science Park after acquiring Powerchip's new 12-inch wafer plant, which is still under construction. A Powerchip official disclosed that their firm and Elpida will have a 50-50 share of the initial investment, with the Taiwanese company paying for whatever cost is incurred on the transfer of technology from its Japanese partner. With the joint venture, the two companies said they aim to capture the No.1 position in Dynamic Random Access Memory chips (DRAM) chips, which are used in digital appliances such as personal computers and mobile phones. Elpida has been seeking to catch up with industry leader Samsung Electronics Co. of South Korea in the production of DRAM chips.

ò Taiwan Semiconductor Manufacturing Co (TSMC) posted a 10 percent decline in its revenue last month to NT$24.7 billion (US$754.5 million) compared to NT$27.5 billion (US$851.2 million) in November last year. TSMC said that for the 11 months to November 30, the company posted revenue of NT$291.5 billion (US$9 billion), TSMC said, the figure represented a 23 percent growth over the NT$237.1 billion (US$7.3 billion) it posted in the year-earlier period. In a separate report, United Microelectronics Corp (UMC) reported for its November revenue a 7.7 percent decline to NT$8.6 billion (US$885.3 million) from the same month last year. The company, however, said that for the January to November period, revenue rose 17.1 percent to NT$95.7 billion (US$3 billion) from NT$81.7 billion (US$2.5 billion) in the same period last year.

Media, Entertainment and Gaming
ò Industry sources indicate that TaiwanÆs largest newspaper, Liberty Times, is planning to launch a 24-hour news channel next year, a move that is aimed at responding to the market need for news ahead of the 2008 presidential election. Market researches show that Liberty Times has grabbed some 23 percent of the countryÆs daily newspaper readership in the third quarter, topping Next Media's Taiwan Apple Daily. The cable news channel reportedly plans to spend US$1 billion setting up its infrastructure, looking for staff and securing carriage agreements with the various cable operators, with the launch expected to take place in the summer. Market data shows that more than 90 percent of Taiwan households subscribe to pay-television services while less than 50 percent of the population are regular newspaper readers, compared to 80 percent 10 years ago.

Hardware
ò Acer reported a rise in revenues in November, while OEM notebook maker Inventec suffered a sequential revenue decline due to decreased shipments to its major clients. Acer's consolidated revenues grew to NT$43.5 billion (US$1.3 billion) in November, a 2.1 percent rise sequentially and 5.6 percent on year. For the 11 months from January to November this year, Acer posted revenues of NT$337 billion (US$10.4 billion), up 15 percent on year. In a separate development, Inventec saw revenues decline 7.8 percent sequentially to NT$26.3 billion (US$814.1 million) in November due to decreased shipments to its major clients, including Hewlett-Packard (HP) and Toshiba.

Hong Kong

Mobile/Wireless
ò Industry observers said Hong Kong's telecommunications regulator may issue two more 3G mobile licenses based on China's home-grown technology standard, a decision that is expected to help open the market for mainland operators. Analysts stated that mainland firms, such as China Mobile, which are expected to implement TD-SCDMA for their 3G operations in the country, may be interested in a Hong Kong license using the same standard. An official from the Office of the Telecommunications Authority disclosed that Hong Kong is preparing to tap mainland visitors whose mobile-telephone network is based on TD-SCDMA. In 2001, 3G operators in Hong Kong, namely Hong Kong CSL, Hutchison Telecom, SmarTone-Vodafone and Sunday Communications were assigned spectrum in 2001. All are offering the service using the European-developed wideband code division multiple access (WCDMA) standard. The spectrum is also suitable for implementing the TD-SCDMA standard.

Media, Entertainment and Gaming
ò The share price of Global Digital Creations Holdings went up following the news that Li Ka-shing will take minority stakes in the loss-making digital content producer and its unprofitable subsidiary, GDC Technology, a provider of digital cinema systems. Industry analysts see the investment of Li as helping finance the introduction of digital cinema equipment in movie theatres across China, in the company and its parent, Shougang Concord Grand (Group). Earlier, an agreement was made where Li will buy 52.3 million GDC Technology new shares, representing 32.4 percent of its enlarged share capital, for HK$50.6 million (US$6.5 million). The acquisition is seen as reducing Global Digital's stake in the unit to 56.2 percent from 83.3 percent. The report said Li will also buy 40 million Global Digital shares, representing 4.7 percent of its enlarged share capital, for HK$9.7 million (US$1.2 million) from Shougang Concord, a main board property, media and financial services firm in which he already has an indirect 11.7 percent stake. Proceeds from the investments will finance the joint project between GDC Technology and the Institute of Digital Media Technology (Shenzhen), another Global Digital subsidiary, to install 700 digital cinema systems in 100 mainland theatres next year, and at least 2,000 units in 2008. Global Digital posted a net loss of HK$18.8 million (US$2.4 million) in the first half and HK$76.3 million (US$9.8 million) last year, while GDC Technology reported losses of HK$4.9 million (US$635,000) in the six months to June and HK$10.5 million (US$1.3 million) last year.

Singapore/Malaysia/Philippines/Indonesia

Internet
ò Cisco and the Infocomm Development Authority of Singapore (IDA) announced that they have expanded their technology collaboration to advance Internet Protocol (IP) networking in Singapore. In 2005, both parties signed a Memorandum of Intent (MOI) to enhance current and future collaborations to identify, develop and deploy innovative converged Infocomm applications in Singapore. Under the new deal, the two companies reaffirmed their commitment made during the MOI and expanded their collaboration in line with iP3 (interaction across People, Private and Public enterprise). The expanded agreement, signed between Cisco Systems International, BV, and the IDA, includes exploring and implementing technologies that will help achieve a ubiquitous computing environment and fuel greater innovation of next-generation networking solutions in Singapore. The Infocomm Development Authority of Singapore (IDA) develops, promotes and regulates info-communications in Singapore, with the aim of establishing Singapore as one of the world's premier information communication capitals. Cisco is the worldwide leader in networking.

ò Internet giant Yahoo announced that it has unveiled a global project aimed at tapping into the vast market of Filipino overseas workers. The project is called Pinoy Connect and features a special website designed to meet the needs of an estimated 8 million Filipinos, or 10 percent of the population, working abroad as well as their families back home. In the first nine months of 2006, overseas Filipinos remitted an estimated US$9.1 billion, providing critical support to the economy. The figure does not include cash sent home through informal, non-bank channels. The new site features news, entertainment, mobile services, chat groups, mobile communications, and instant messaging services targeting Filipino workers and their dependents. A press statement from Yahoo! said the project has the support of Philippine government agencies, private firms, and other institutions.

Hardware
Seagate Technology, a hard drive maker, said it will invest US$281 million in a new plant in Johor, Malaysia, in a bid to meet an anticipated surge in global demand. The aluminum substrate manufacturing facility, Seagate's first in the region, will employ about 2,500 workers when it reaches maximum capacity. The plant is expected to move into production by 2008. Seagate said the 40,000-square-meter facility would supply a "large portion" of the company's requirements for aluminum substrates, which represent the base platters for hard-disk drive assembly. Earlier, a Seagate official declared that the company would invest $200 million over the next three years in Penang, Malaysia, the company's production center for thin-film magnetic recording heads.

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