Sony, Tokyu to develop broadband net
Web war rages on in Japan
Deal comes on the heels of an announcement earlier this week that Japan's top two cable companies, Jupiter Telecommunications and Titus Communications, would merge with the aim of forming the leading broadband platform in the country.
In the Sony deal with Tokyu Cable, the companies will use the cable companies' existing infrastructure along with a geographical tie-up to widen the network with affiliated railway operator Tokyu Corp.
The three companies plan to deliver Internet access, e-commerce services and interactive media through their broadband platform.
Sony also purchased a 10% stake in Tokyu Cable, which is exceptionally strong in the Tokyo metropolitan region. Tokyu joined Sony and Toyota in April to develop a high-speed Internet service using the Tokyu Cable network.
Cable best
Cable TV ultimately offers the best option for high speed 'Net service in Japan.
At present, connecting fees at partially state owned telecom giant NTT are among some of the highest in the industrialized world, and the best option for high speed connections is currently via ISDN lines. Cable TV offers higher speed and lower prices than ISDN.
At the start of the business year this April, Sony president Nobuyuki Idei said the company's main challenge for the new year is to build broadband technologies and network-capable products.
Sony also formed a U.S.-based company, Sony Broadband Entertainment (SBE), which "will serve as a strong unified business entity to enhance the value of Sony's music, motion picture, television and related assets in the broadband era," Idei said.
