Japan
Hardware
- Pioneer Corp. will launch production of plasma televisions in the US this summer with annual output of 100,000 units under consideration. The switchover to local production from exports from Japan is aimed at cultivating the US plasma TV market. Pioneer plans to send plasma panels, the core component, from Japan to the US, where Pioneer Electronics Technology Inc., a California-based subsidiary that makes projection TVs, will assemble plasma sets.
Mobile / Wireless
- Sony Corp.'s US unit unveiled formal plans to launch an internet music service, called Connect, that will allow users to buy music online and download it to Sony portable devices. Sony will launch Connect after test trials this spring, with upgraded software to be released this summer to give more flexibility and features and better integration with Sony products.
- Fujitsu Ltd. plans to re-enter cellular phone markets abroad with the release of European models compatible with both 2G and 3G technologies as soon as early 2005. According to Fujitsu's plan, the company will develop basic technologies for the dual-standard cell phones with Sagem SA, a leading French cellular phone maker. The new phones are expected to support the GPRS 2G mobile phone standard still dominant in Europe and the W-CDMA 3G standard already in use for NTT DoCoMo Inc.'s FOMA cellular phone service.
- KDDI Corp. became the largest Japanese cell phone service provider in 2003 in terms of net increases in subscriptions to mobile phone services, outpacing NTT DoCoMo Co. for the first time. KDDI saw subscriptions to its 'au' services grow by a net 2,509,400 cell phone units last year, followed closely by NTT DoCoMo with a net increase of 2,491,900 units, according to data compiled by the Telecommunications Carriers Association.
Telecommunications
- KDDI Corp. has developed a general-purpose speech-recognition system that can be easily built into information terminals and networked appliances. The system is based on a method called Distributed Speech Recognition (DSR), which divides the tasks for speech recognition between the user terminal and a central server. KDDI plans to commercialize systems for PDAs and PCs that can be sold to companies and municipalities. With this technology, sales people out in the field will be able to access the company database and download client information by simply speaking the requests into their PDAs.
Korea
Internet
- Thrunet Co. is set to attempt normalized operations on its own before seeking a buyer. Thrunet has been up for sale since filing for court receivership last March due to financial troubles. Major fixed-line carriers like Hanaro Telecom Inc. and Dacom Corp. are interested in taking over Thrunet but the outlook is now mixed due to the delayed sale. Thrunet creditors are set to meet today to come up with possible resolutions for the embattled broadband company.
Mobile / Wireless
- Mobile-number portability has started successfully in South Korea with thousands migrating from market leader SK Telecom to KTF Co. and LG Telecom Co. to take advantage of cheaper rates and the chance to upgrade to a new handset, while keeping the same phone number. According to figures released by Korea Telecommunications Operator's Association, an independent tracking agency, 46,962 SK Telecom subscribers have migrated to KTF, while 35,955 have switched to LG. Both carriers are offering a variety of discounts compared with SK Telecom, the country's dominant mobile operator.
- Korea's major handset makers are racing to increase domestic sales and export volume this year, hoping that a new mobile policy and economic recovery overseas will offer new growth opportunities. Analysts and their internal estimates alike expect both domestic demand and exports to improve considerably.
Software
- IBM Korea is struggling to uphold its corporate reputation in the wake of a procurement scandal. Prosecutors indicted 48 government and company officials on corruption charges linked to IBM Korea, claiming that the company and its local affiliates used bribes to win W66 billion ($55 million) worth of procurement contracts from government agencies. Prosecutors accused government officials of receiving bribes in return for turning a blind eye to pre-arranged bids and providing information on rival offers.
China
Hardware
- The value of contract sales at telecommunications equipment maker ZTE rose 50% last year, and the company plans to keep the momentum going by concentrating efforts on mobile phones and overseas markets. The telecommunications equipment maker announced contract sales for last year soared to Rmb25.2 billion ($3 billion). Within this total, handset business grew 66.3% to Rmb4.8 billion ($580.7 million), while overseas contracts from 13 countries were worth Rmb5 billion ($602.4 million).
Internet
- Legend Group has bought out Time Warner's stake in their $200 million internet joint venture, FM365, launched with much fanfare nearly three years ago. The venture, which never began commercial operations, was still intact and the project was put on hold due to changes in the market. The news comes a day after Legend unveiled a partnership with fixed-line telecom operator China Telecom to promote broadband internet on the mainland.
Telecommunications
- China Network Communications Group plans to include assets from three to six provinces in its upcoming initial public offering and expects earnings to soar 70% this year. The group's listing vehicle is likely to include its four most profitable markets: Beijing and the provinces of Shandong, Liaoning and Hebei. The four service areas in northern China - inherited from former monopoly China Telecom - each achieved more than 1Rmb0 billion yuan ($1.2 billion) in sales last year. Four of the group's 10 provinces and cities, meanwhile, are still in the red but CNC hopes to turn them around this year.
Taiwan
Hardware
- A worldwide shortage of flat-screen monitors stymied Acer's notebook personal computer shipments by 5% to 10% in the fourth quarter. The company had demand for 700,000 notebook PCs during the quarter but was only able to ship between 630,000 and 650,000 units due to the display shortage.
Semiconductors
- United Microelectronics Corp. reported its revenue in December leaped 52% compared to last year as business conditions in the chip sector continued to improve. The microchip foundry announced revenue in December reached NT$8.4 billion ($248.6 million), up from NT$5.5 billion ($162.8 million) a year earlier. The performance is roughly in line with some analysts' estimates of NT$8.5 billion ($251.6 million) and is just the latest signal that the global chip industry continues to strengthen.
- Taiwan Semiconductor Manufacturing Co. reported its fourth-quarter revenue surged 40% to NT$57.8 billion ($1.7 billion) from NT$41.2 billion ($1.2 billion) in the year-earlier period. TSMC's revenue for all of 2003 rose 25% to NT$201.9 billion ($6.0 billion) from NT$161 billion ($4.8 billion) in 2002.
Singapore / Malaysia / Philippines / Indonesia
Telecommunications
- Philippine Long Distance Telephone (PLDT) expected to meet its net profit target of Ps10 billion ($180 million) for 2003. PLDT is the dominant provider of fixed-line services in the Philippines, but it has been shifting its operations to the more-profitable mobile phone sector where it holds more than 50% of the local market.
Hong Kong
Internet
- Tom.com is planning to return to the market again this time around as Tom Online, rather than Tom.com. Tom originally launched as a China Internet portal but as the Internet bubble burst it diversified into old media assets - billboards, magazines, and a television station in southern China. What had seemed an astute move has recently looked less so as Tom's shareholders could only watch in envy as the share prices of its original peer group-- Netease, Sohu and Sina-- staged staggering rebounds last year.
Media, Entertainment and Gaming
- PCCW plans to tap the lucrative mainland online gaming market in a joint venture with South Korean internet powerhouse NHN. PCCW would invest $4 million and its South Korean partner $3 million. The partnership would allow both sides to expand into the mainland online entertainment market and share digital content. China has about 13.1 million online gamers - 41.9% of them paying customers - who spend countless hours glued to their computers playing what are known as massive multiplayer online role-playing games.
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