Japan
Internet
- Digital Arts, a major internet browser-filtering software developer, was ranked the most promising venture company for 2006 among those listed on the three start-up markets, according to a survey released by The Nihon Keizai Shimbun. The report said the firm was No. 1 in terms of growth prospects. Sales of filtering software are growing rapidly as use of the internet spread throughout society. Digital Arts expects its fiscal 2005 parent-only pretax profit to climb 140 percent from last year's figure. Analysts expect sales to Asia and other overseas markets to rise sharply. Advanced Media Inc. has developed technology for searching cellular phone sites based on voice recognition.
Mobile/Wireless
- NTT DoCoMo said it is thinking of buying into Philippine Long Distance Telephone (PLDT), the largest telecommunications firm in the Philippines, a move that will make the Japanese firm a partner in 3G (third-generation) cellular services. The leading Japanese cell phone service provider is expected to invest some $300 million dollars, for about 5 percent stake in PLDT. The Philippine telco owns the country's biggest cellular provider, Smart Communications. With 3G services scheduled to begin this year in the Philippines, PLDT obtained a business license at the end of last year. It will adopt the WCDMA standard, which is used by DoCoMo for its services. DoCoMo is expected to provide its i-mode mobile internet technology to PLDT. Analysts say the investment will bring the two firms to likely cooperate in procuring handsets and expanding roaming services so that the same handset can be used in both countries. PLDT's mobile phone operations now account for 40 percent of its group sales. To bolster its technology and services in the growing cell phone business, it has been seeking a major international partner.
Media, Entertainment and Gaming
- Nintendo Co. said that it has sold about 10 million of its Nintendo DS handheld game systems worldwide, including about 4 million in North America and more than 5 million in Japan. The company sold about 3 million of the handheld gaming gadgets to North American consumers in 2005, on top of 1.2 million sold to North American consumers in 2004, following the system's launching in November. Rival Sony Corp said it has sold 3.2 million of its handheld game system, the PlayStation Portable, in North America between its March launch and mid-December. The company did not yet have sales figures through the end of 2005. A Nintendo official said about 550,000 people worldwide have used Nintendo DS's Wi-Fi system for playing games online since that offering launched seven weeks ago. The online game play option is free for anyone who has wireless Internet access. Users with a regular broadband connection can buy an adapter for about $35.
Hardware
- Matsushita Electric Industrial said it has developed one of the industry's smallest fuel cells ideal for notebook personal computers. Possessing a volume of roughly 400cc, this prototype fuel cell is about half the size of other companies' products. The consumer electronics firm hopes to commercialize it as early as 2010. The prototype was developed jointly with the University of Pennsylvania and uses methanol as its power source. A 200cc injection of methanol is enough for the fuel cell to supply power for roughly 20 hours. The lower output methanol-based fuel cells are expected to become the mainstream for information devices in light of their stability.
Korea
Internet
- NHN, the operator of South Korea's most-visited internet portal Naver, announced the signing of a contract to provide its online game ArchLord to Codemasters Software, a British game developer. The deal with Codemasters Software is expected to give NHN a strong entry into the North American and European markets with its online game products. The portal operator, however, said that it would test run the game in June before launching the official version in the second half of the year. Codemasters is a British game developer known for such online games as Colin McRae Rally, TOCA Race Driver and Dungeons and Dragons Online. Financial details of the contract were not disclosed.
- Reigncom, manufacturer of the iRiver MP3 player, introduced an online game console tentatively named iRiver G10 that is designed for WiBro users. The slide-type gaming device will debut in August. The LCD screen slides upward and reveals a dozen of operation buttons on the right and left sides and the center. G10 is equipped with 4-inch wide color LCD and 3D acceleration chip. Besides gaming, it features a voice recorder, image viewer and MP3 and video player.
Mobile/Wireless
- The Korean handset market is expected to rebound in the 2nd quarter after a sluggish period in the first quarter, according to the report by Hana Securities. The report, however, indicated that the market would eventually get its boost via the new services such as WiBro and HSDPA. The cell phone market contracted to a monthly average of 1.1 million units last year due to low purchasing power. The report forecast that, after a decline last December that was brought about by inventory adjustment, cell phone shipments are expected to rebound starting January. The report also said that Korean makers would do well in the global market, with manufacturers able to raise supplies, with new models released by Samsung and LG in the North America getting good reception and with the WCMDA phone market still growing.
- KTF and LG Telecom jointly announced the marketing of their mobile handsets that can receive land-based digital multimedia broadcasting (DMB). In another report, Samsung and LG said they also released DMB phones priced at around W600,000 ($59). Samsung Electronics noted that worldwide demand for land-based video-on-the-move is forecast at around 330,000 units this year. The figure is expected to hit 4 million by 2010.
- After its acquisition of SK Teletech, Pantech Group revealed its plans to entering the premium market, long considered the domain of Samsung Electronics. The firm said it aims to sell 4 million units of handset, a move that is seen as giving Pantech the 30 percent control market share in next year. Pantech is confident in achieving the target because the acquisition of SK Teletech, SK Telecom's handset manufacturing firm, allows the Pantech Group to get out of the government regulation that prevented it from selling more than 1.2 million handset units. Pantech now is free to expand while increasing the sales of handsets produced under the brand name of Curitel. Pantech said it is boosting its challenge to Samsung in the premium market in coming year by supplying SKY phones to KTF, the second-largest mobile carrier.
- LG Electronics announced the development of what the firm claims as the world's first mobile phones for the DVB-H and MediaFLO mobile broadcasting standards. Currently, Nokia's DVB-H (digital video broadcasting-handheld) and Qualcomm's MediaFLO (media forward link only) technologies compete with DMB for adoption as the global standard. The DVB-H technology supports wireless communication frameworks GSM, GPRS and WCDMA, which control more than 70 percent of the world's mobile market. The situation is giving LG a good entry point into European and North American next-generation handset markets. Verizon Wireless also revealed its plans to offer live TV to handheld devices using MediaFLO, a move expected to push up demand for the LG gadgets.
Hardware
- Guardtec, a manufacturer of call quality surveying equipment, said that it supplied MCS-W (Mobile Call Simulator for WCDMA) to SK Telecom, the nation's dominant mobile carrier. The equipment is used to test the call quality of both CDMA and WCDMA networks. It surveys the quality of voice calls by automatically sending and receiving recorded human voices. MCS-W can also survey call quality between fixed line networks and WCDMA or between fixed line and CDMA 2000 1ine at the same time when linked to equipment that make calls automatically and transmit voices on fixed line phones.
- Major industry players like Samsung Electronics, SK C&C Co., Cowon Systems and Digital Cube are said to be all set to deploy portable players embedded with DMB chips. Industry sources are predicting that portable multimedia players and MP3 players with mobile television service capabilities are likely to dominate the local digital devices market in the coming year. These companies believe there will be a rise in the demand for portable devices as the World Cup nears. The terrestrial DMB service, which is free of charge, is also expected to expand coverage to all parts of the country during the year. SK C&C plans to release soon a satellite DMB-enabled portable multimedia player called "C&C." The device supports navigation functions, music download programs, animation, and online publishing. Another firm, Cowon Systems Inc. is working on "A," a terrestrial-DMB-enabled portable multimedia player due for release this month. MP3 player manufacturer IOPS Co. plans to unveil two T-DMB products early this year.
Media, Entertainment and Gaming
- TU Media announced that S-DMB subscribers hit 372,000 as of the end of 2005. A TU Media official reported that they were able to meet their full-year target last year and said he expected subscribers to go beyond 1 million this year. S-DMB subscribers have been increasing despite the launch of T-DMB last December and the growth is expected to continue even after T-DMB phones are launched this month. TU Media currently has 11 video channels and 26 audio channels.
Telecommunications
- Samsung Electronics to export T-DMB phones to China. Samsung Electronics, the world's third largest cell phone vendor, will export 500,000 handsets for terrestrial digital multimedia broadcasting (T-DMB) to China. Samsung agreed to ship 200,000 units to Beijing-based Jolon DMB, an affiliate of Beijing Radio Broadcasting, which plans to start the video-on-the-go services in April, and has will also export 300,000 DMB phones to Guangdong Mobile Television Media. T-DMB enables people on the road to enjoy crystal-clear video, CD-quality of audio and data via in-car terminals or hand-held gadgets like cell phones. "China's DMB phone market is expected to gain steam at a rapid pace after the 2008 Beijing Olympic Games and we gain a platform in the country with these contracts,' the spokesman said. According to the Credit Suisse First Boston the market for mobile broadcasting phones will reach 10 million units this year before exploding to 40 million in 2007, 90 million units in 2008 and 150 million units in 2009.
- LG Telecom said its number of subscribers has reached 6.5 million, a figure indicating a rise of more than 1.2 million compared to about 4.8 million at the end of 2003. The firm said it attracted more than 4 million in less than 4 years since the service was initiated in October 1997. In 2005, LG drew in some 500,000 subscribers, a number that increased its share of the market to 16.8 percent in November this year from 14.4 percent at the end of 2003. SK Telecom, LG's rival saw its share of the market declined by 50.9 percent from 54.5 percent from during the same period. Amidst the stunted growth of the mobile population and market structure, observers see the increase as a feat. LG disclosed its plans to increase its customer base to 7.2 million by the end of next year and 8 million by 2007.
- Following its announcement last year that it would do away with caller ID tariffs in 2006, SK Telecom announced that its clients could use caller ID service for free starting this month. Some 18 million of SKT's 19 million subscribers currently use the caller ID service. With the elimination of the tariff, it is expected that SKT will lose W16.5 billion ($16.5 million) per month in revenue. Separately, KTF and LGT said they have not yet come up with specific plans to lower their caller ID rates.
- Hanaro Telecom, Korea's second-largest fixed line and broadband operator, announced its plan for the restructuring of its management. The company said the major reason for the restructuring is the coming merger with Thrunet. The firm was also focusing on a performance-based principle in management. As of the end of November 2005, Hanaro Telecom was reported to have gotten 22.7 percent of market share following KT with a 51.4 percent share. Its acquisition of Thrunet, with its 7.3 percent of market share, saw Hanaro's market control climb to 30 percent, diminishing in the process the gap with KT.
China
Internet
- Chinese mobile music publisher Rock Mobile reportedly received a $30 million investment. Rock Mobile received the investment from an investor group including Walden International, Nippon Venture Capital Corporation, Goldman Sachs, Legend Capital, iD TechVentures, Siemens VC, and Nikko Ant Factory. Rock Mobile's parent company Rock Music holds less than 30 percent of the company now.
- The 2005-2006 China Internet Industry Survey Report ranked eLong, a leading online travel service provider in China, No. 1 in the category of Travel Booking Websites. eLong received the commendation organized by the Internet Society of China and co-organized by CID Consulting, IDC China, iResearch and Analysys International. The China Internet Industry Top 100 Award ceremony marked the release of a series of Internet Industry Survey Reports based on a survey conducted through web sites, email and telephone. Some 150 experts joined the survey.
- Analysys International, a leading Internet-based business information service provider, said that Instant Messenger (IM) users are presented with more choices when IM providers confront heavier competition in the China market. According to the research, China's IM users have developed rapidly in recent years, with the annual growth rate of IM users placed respectively at 140 percent, 92 percent, 70 percent and 51 percent from 2000 to 2004. China's IM subscribers reached 81.5 million the third quarter of 2005, posting a 38 percent increase compared with Q3 2004. The study shows Tencent QQ currently dominating the market with a market share of 79 percent, a position attributed to its innovation of successful business model. MSN Messenger, with a market share of 10.1 percent is listed No. 2, and is described as more favored by working people for its friendly interface, simple functions. Sina's UC is viewed as providing a quality interactive entertainment platform for users, occupying No. 3 slot, with 2.2 percent of the market share. Analysys International also finds that other IM providers are continuing to increase their investments, which remains a strong influence on the market. The research firm forecasts more intense competition in the IM market in the coming year or two.
Media, Entertainment and Gaming
- Focus Media announced it was acquiring Target Media Holdings for $325 million. The move is seen as solidifying Focus Media's position as the market leader in China's out-of-home audiovisual advertising market using flat-panel displays. After the completion of the merger, Focus Media's nationwide commercial location advertising network will span over 60,000 displays in more than 30,000 commercial locations in about 75 cities in China. Target Media is the second largest out-of-home flat-panel display advertising network operator in China in terms of number of commercial locations and number of flat-panel displays installed in its network. For the nine months ended September 30, 2005, Target Media achieved revenue of $21.6 million and net income of $4 million. The acquisition is expected to generate cost synergies and result in an improved cost structure for the combined entities. Under the terms of the agreement, Focus Media will acquire 100 percent of the equity interest in Target Media for $94 million in cash and $231 million in the form of Focus Media ordinary shares. The Carlyle Group is Target Media's second largest shareholder.
Semiconductors
- China's Southeast University and Dongda Communication announced that they have jointly developed the country's first chip for W-CDMA mobile phones. The product is viewed as a major step forward in the country's drive towards 3G. Enjoying 16 domestic and foreign patents, the chip has passed the systematic test on communication and data transmission, showing it meets the requirements of W-CDMA international standards. The new chip is characterized by low power consumption.
- Semiconductor Manufacturing International Corp. (SMIC), and SAIFUN Semiconductors Ltd. announced an agreement that will allow SMIC to employ the SAIFUN NROM technology in the development and production of Flash memory cards. SAIFUN NROM technology allows storage of up to four bit-per-cell. The technology possesses a cell architecture that requires fewer manufacturing steps, a factor which lessens the manufacturing costs. SMIC is one of the leading semiconductor foundries worldwide and in China, and SAIFUN Semiconductors Ltd. is a firm that provides intellectual property (IP) solutions for the non-volatile memory (NVM) market.
Taiwan
Mobile/Wireless
- DBTEL said it would quit selling mobile phones in the market for China's Mainland because it is not making a profit in the business. DBTEL is the first Taiwanese handset maker to receive a license for domestic sales in the mainland. The company cites another main reason for quitting the increasing competition in the market. The company said it would focus instead its operations to exports. DBTEL has a manufacturing plant in Shanghai. No comment was immediately available from the manufacturer. The Chinese mainland's mobile phone entry policy, which drew in newcomers to get into the competitive market, affected DBTEL's sales, according to analysts. When the new policy went effect, more than 10 firms, including Huawei and BenQ, received approval to make and sell phones in China. In another report, Japan's Toshiba Corp also said it will quit China's mobile phone market. Nokia, Motorola and Samsung, however, gained market share this year by selling phones with high-resolution cameras, MP3 functions and stylish designs.
Media, Entertainment and Gaming
- Qband, an online music store run by BenQ Corp, said on its website that it decided to suspend its service after two years in operation. QBand did not to elaborate on its decision even as it stated that it might stage a comeback depending on company strategy. The withdrawal followed that of iBIZ Entertainment Technology Corp, the nation's first online music store. The firm secured an authorization from record labels to provide music files for downloading in November 2003, but closed in May last year as a result of huge losses. This leaves KKBOX, an online music store developed by Skysoft Co and HiMusic, a joint venture of Hinet and Rock Records, as the only legitimate online music providers in the market. KKBOX had planned to offer music files that can be played on digital music devices with a digital copyright-management system, but announced that it was postponing the service because few players are equipped with this function. KKBOX currently has about 120,000 subscribers, which is not even one-third the subscriber base of Kuro, the nation's largest P2P operator, with more than 400,000 members. Last September, the Taipei District Court found Kuro guilty of infringing on intellectual property rights. Kuro said that while the company has filed an appeal against the ruling, it is also seeking a way to settle the conflict with record labels. However dim the situation may appear, Yahoo-Kimo Inc, one of the largest Internet portals in Taiwan, revealed its plans to join the download market in the first quarter of the year.
Hardware
- AU Optronics Corp, the nation's biggest maker of liquid-crystal-display (LCD) panels for computers and televisions, responded to the government's new restrictions on hazardous emissions by stating that such laws would not be seen as a burden on its operations. A government body called the Environmental Protection Administration (EPA) announced a new measure setting stricter emission standards for the optoelectronics industry. AU Optronics said it already implemented countermeasures to the new regulations about two or three years ago when the government started drafting the law. Currently, AU Optronics manufactures LCD panels at eight plants and has another manufacturing plant under construction. In the first 11 months of last year, the company made 27.37 million flat-panel units measuring 10 inches or more. The government's new rules stipulate that new optoelectronics foundries must be capable of processing at least 85 percent of their waste, while existing plants must process a minimum of 75 percent of their waste. Manufacturers of LCD monitors and related components who fail to meet the requirements could face a fine of up to NT$1 million ($31,000).
Hong Kong
Mobile/Wireless
- Analysts predict more intense competition this year for mobile-phone operators despite widespread and continuing consolidation as operators push subscribers to upgrade to third-generation phones. Analysts see the acquisition of SmarTone-Vodafone by China Mobile, China's largest operator, as the most likely move towards further consolidation. This would effectively be a consolidation between SmarTone-Vodafone and China Resources Peoples Telephone, which was acquired by China Mobile. The year 2005 saw changes in ownership for many of Hong Kong's mobile-phone operators after years of heavy competition Analysts see the merged CSL and New World Mobility, to be known as CSL New World Mobility, becoming Hong Kong's largest mobile-phone operator. The merged entity would be controlling 34 percent of the market. New World Mobility said it and CSL would maintain their individual brands even after the merger. Increased competition is also expected in 2G services, with operators not providing 3G services scrambling to retain customers. At present, only about 500,000 of Hong Kong's eight million mobile phone users have upgraded to 3G services.
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