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A monthly review of the cutting edge of Japanese high-tech August - Volume III, Issue II

 

Triangle Technologies creates strategic alliances between Japanese and Israeli companies. . www.triangletech.com



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Triangle Technologies’ ---- Japan High-Tech Update is a monthly review of the cutting edge of Japanese high-tech This document may be redistributed provided that the 3 lines containing this notice accompany it. For more information, please contact a_lewkowicz@triangletech.com-- +972-3-575-8636.

 

Tokyo Office Space for Sublet

Triangle Technologies’ is offering to sublet prime Tokyo office space.

You will get the use of approximately one quarter of a 146 sq. meter office in a very nice and peaceful area of central Tokyo (Hirakawa-cho), where numerous high tech companies and venture funds are located. The price is $4,700 per month with a 4 month rolling contract and no deposit needed.

The office includes the use of a meeting room, telephone receptionist, copying machine and broadband connection.

The office is located in central Tokyo in a ten year old building.

-7 minute walk from the New Otani Hotel

-4 minute walk from the Hanzamon subway station (Hanzamon line)

-1 Minute walk from the Kojimachi subway station (Yurakacho line)

For more information, please contact Ms. Silvie Freedson at either s_freedson@triangletech.com or telephone +972-3-575-8636.


Dan's Desk

Japan - 25 million Broadband Subscribers Will Make Japan the World's Broadband Capital

Yesterday we read that the Ministry of Telecommunications in Japan is requesting about $400 million to help bring fiber to homes in remote locations. This is just one additional harbinger of what is to come. In a recent poll, 70% of Japanese consumers strongly wish to have broadband in their homes. How did this happen when the world was busy watching the mobile Internet subscriptions skyrocket?

(1) ADSL - after 2 years of bucking NTT's resistance to ADSL, on June 20th Yahoo Japan (Softbank) signed around 200,000 ADSL subscribers in 24 hours (!) by offering a $20 monthly subscription for 8mbps service, including ISP charges. How many seconds would it take YOU to decide if you wanted to sign up for a dial up ISP or subscribe to an ADSL service?

(2) FTTH - owning the boxes on 7.1 million telephone polls in Japan, on April 1, 2001 Usen Broad Networks launched a trial FTTH service - 100 mbps service for around $40 a month.

(3) CATV - although there is only about 20% CATV penetration in Japan, already there are close to 1 million interactive CATV subscribers receiving broadband service in their homes, and subscriptions are increasing rapidly.

Want some more acronyms? FWA and 3G are coming on, although admittedly with fits and starts, and the most popular application envisioned for 3G at this point is data access.

No wonder that "broadband-o" has become a household word in Japan. Depending on whom you believe, by 2005 there will be anywhere from 10 million to 25 million broadband service subscribers. We believe the latter number will be closer. We believe that this groundswell of broadband activities creates opportunities for Israeli telecommunications companies in areas ranging from infrastructure, management, access, and content. More in a subsequent Dan's Desk.

Dan


Tom's Thoughts

Recently, Dr. Tom Kobayashi, our VP Business Development in Triangle Technologies’ Japan office visited Israel. The following is Dr. Kobayashi’s observations and comments about his trip.

Japan has always been known as the world leader in mobile Internet access and services. However, it was slow in developing broadband communications infrastructures. Finally, Japan's "broadbandization" has taken off. For example, ADSL installations are skyrocketing and the growth of FTTH and cable modem is phenomenal too. This has created better-than-ever opportunities for Israeli high tech companies for the Japanese market.

My recent trip to Israel has confirmed this. I visited more than a dozen Israeli startups engaged in various aspects of networking technology. Technology, spanning both software and hardware, including optical networking, bandwidth optimization, real-time provisioning, optical switching, network security to name a few. I was overwhelmed by the innovation that Israeli companies are bringing in these areas. Despite global economic slowdown, the technology pipe between Israel and Japan can also be "broadbandized."



Table of Contents:
  • Triangle Technologies News

  • Israel-Japan News

  • General Technology News
  • New Technologies


  • Exchange Rate as of August 14, 2001

    $1 US = 122.53 Yen

    1 NIS= 29.01 Yen


    ***TRIANGLE TECHNOLOGIES NEWS***

    +MITSUI AND SPHERA FORM STRATEGIC ALLIANCE

    Recently, Dr. Isenberg, Triangle Technologies’ CEO, and Dr. Tom Kobayashi, Triangle Technologies’ VP of Business Development, had a joint interview in the Wall Street Journal. Here are some excerpts. If you are interested in reading the interview in its entirety please go to:

    http://interactive.wsj.com/fr/emailthis/retrieve.cgi?id=DI-CO-20010730-002767.djml

    "We are just coming now to (realize) the real value of IT and the real value of Internet to boost the economy," Kobayashi, a former vice president at Sharp Corp."You're seeing a tremendous explosion of broadband services...and the technologies that Israel is developing would apply. "Japan is very good at hardware, but not necessarily software," Kobayashi added. Because digital technology has become ubiquitous, the need for software has "increased tenfold," he said. "That is why Japan is looking for software technology all over the place.... that really opens up opportunities tremendously for Israeli companies. Japanese companies are almost like a sponge."

    Founding president and chief executive Daniel Isenberg said he's seen "a very notable and significant increase" in Triangle's business in Japan in the past six to 12 months. Whereas the U.S. and European markets for telecommunications, Internet, wireless communication and information technology have softened, in Japan, "the markets are picking up," Isenberg said.

    "I think they're making the tradeoff between perfection on the one hand and access to cutting edge technologies on the other," he said. "To get access, you sometimes have to compromise in terms of product maturity," though the emphasis on perfection is still extremely high in Japan, he said.

    ***ISRAEL-JAPAN NEWS***

    Matsushita & Flash Networks Partner

    Flash Networks signed a partnership agreement with Matsushita Inter-Techno (MITC), whereby Flash Networks' NettGain product lines will be distributed by MITC to provide their customers with optimized wireless and satellite solutions. Flash Networks develops products to accelerate TCP/IP applications over wireless and satellite networks.

    ***GENERAL TECHNOLOGY NEWS***

    +ASP MARKET TO GROW 1700%

    According to Gartner Group Japan the Japanese ASP market will increase 17x from $129.5 million in 2000 to $2.23 billion by 2005. Annual growth will average 76.7%.

    +ESTIMATED 67.88 MILLION MOBILE USERS /P>

    The Telecommunications Carriers Association (TCA) claims that there are about 62,037,000 cell phone and PHS users in Japan. Of these, 36,943,500 had Internet connectivity. The largestoperator, NTT DoCoMo, has about a total of 36,618,000 users with about 23,039,000 i-mode users.

    +MATSUSHITA TOP CELLULAR PHONE MAKER

    According to a study by the Communications Industry Association of Japan, domestic shipments of cellular phones increased 22.8% to 47.75 million units in 2000. The sharp rise is attributed to the increase in the number of new subscribers and strong replacement demand. The market share breakup is as follows: Matsushita at 26% NEC at 23.4%, Mitsubishi Electric at 14.7% Sharp at 8.9%, Sony at 7.3%.

    +IT SPENDING TO INCREASE 14.2%

    Japanese firms are increasing investment in information technology in a bid to boost productivity, speed decision-making and enhance international competitiveness. In a study done by the Nihon Keizai Shimbun Japanese companies are boosting IT spending by 14.2% to a total of approximately $5.6 billion this fiscal year.

    +CATV USERS REACH 967K

    The number of subscribers to cable TV Internet access services in Japan reached 967,000 as of the end of June 2001, according to the Ministry of Public Management, Home Affairs, Posts and Telecommunications.

    +DIGITAL CONTENT MARKET TO REACH $97 BILLION IN 2001

    According to the Digital Content Association of Japan digital content market value in 2000 reached $81 billion, up 129.8% from 1999. It will reach about $97 billion in 2001. The digital content market comprises three types of markets: "content," "products" and "service. "Content" includes packages, networks, and content, aiming at mobile phones and digital broadcasts. "Products" include sales of hardware and software makers related to digital content and the information service business. "Service" includes broadcasters and communication carriers as well as Internet advertising, electronic settlement companies and Internet providers.

    +FIBER OPTICS DESIRED FOR BROADBAND

    Results of a survey taken by Nikkei Business show that more users are subscribing to broadband services as a means to access the Internet. The share of ADSL increased to 8.1% of households, ISDN increased to 24% market share. 51.7% of those polled said that they would be very interested in using fiber optics for Internet access.

    +JAPAN’S DIGITAL MUSIC DISTRIBUTION MARKET TO GROW

    According to Jupiter Media Matrix, Japan's digital music distribution market is expected to grow from its current $9.6 million to more than $800 in 2006.

    +BROADBAND SUBSCRIBERS TO BE 46.6% OF NET USERS

    Japan's broadband subscribers are expected to number 14.61 million in 2004, EC Research Corp. forecasts. This will be 46.6% of all Internet subscribers, which are expected to number 31.36 million.

    +DOMESTIC STORAGE SHIPMENTS INCREASE

    Domestic NAS (computer network-attached storage) shipments increased by 90.4% in 2000 to roughly $100 million, while SAN (storage area network) shipments ballooned by 73.2% to about $1.6 billion, according to Yano Research Institute. U.S. manufacturer Network Appliances had about 50% share of the NAS market, followed by EMC. In 2001, the NAS market is expected to jump 177.3% to $269 million, helped by growing Internet use. The SAN market, which was led by Hitachi Ltd., is expected to reach $2.5 billion in 2001.

    +DOCOMO TO GET WAP APPROVAL

    The specifications proposed jointly by NTT DoCoMo and Sweden's Telefon AB LM Ericsson in December 1999 have been approved as a new global standard for Internet access via third-generation cell phones. The WAPForum, comprised of some 400 manufacturers, telecommunications carriers and others, disclosed the specifications for wireless-application protocol WAP version 2.0. The specifications use HTML and other Internet languages, and are similar to those for DoCoMo's Internet-compatible i-mode service.

    +GOV’T TO ALLOCATE $50 BILLION FOR RURAL FIBER OPTIC NETWORKS

    The Ministry of Telecommunications will make a budget request for as much as $408 million over four years from fiscal 2002 to build fiber-optic networks in isolated regions.

    ***NEW TECHNOLOGIES***

    +SHARP DEVELOPS SOFTWARE FOR 1 BILLION COLORS

    Sharp developed software that supports one billion colors with LCD. It will install its new software into LCDs in two to three years.

     

     

     

     

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    Authorized by Amir Lewkowicz - Marketing Communications Director

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