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March 27, 2001
Sony and Tokyu to Create New Type of CATV Internet Service Business
Tokyu Cable Television
Sony Corporation, Tokyu Corporation and Tokyu Cable Television (Tokyo
Cable) have reached agreement to offer a new type of CATV Internet service
from fall 2001. In accordance with this agreement Sony Corporation will
acquire an additional 5% of Tokyu Cable's shares.
Transmission of broadband Internet is rapidly growing due to the expansion
of existing ADSL and coming FTTH services. Included in this trend, is
an expansion of CATV Internet utilizing the existing CATV network that
offers continuous connectivity. The three-company agreement between
Sony Corporation, Tokyu Corporation and Tokyu Cable aims to supply the
rapidly growing number of CATV Internet users with a new type of Internet
service. This new Internet services will offer new style broadband content
services that require high speed transmission of enormous amounts of
data for PCs and in the future for a variety of other Internet-ready
In order to establish the new service, Tokyu Cable will use Sony's leadership
to provide network multi-casting infrastructure that uses the network
effectively, and develop payment systems, verification methods and customer
management systems. With the aim of quickly building a high-speed transmission
environment for mega-data, Tokyo Cable will also start using spare radio
frequency bandwidth on its cable infrastructure that up until now has
not been used for regular broadcasting.
To implement this business plan Tokyu Cable will commission AII Corporation
(AII) to design, construct and manage a new type of CATV Internet connection
service business (ISP). AII will also connect to the backbone of existing
ISP businesses, offers system integration and improves existing services.
Offering ISP services by connecting CATV businesses with broadband Internet
contents, uniting with these contents services and cooperating with
Tokyu Cable to make entertaining broadband CATV Internet a reality.
The future CATV Internet services Tokyu Cable will offer using the widely
established CATV network infrastructure will stimulate the development
not only of the CATV Internet services but also act as a catalysis for
ADSL and FTTH broadband Internet services.
- AII Corporation
10 companies including Sony Corporation, Tokyu Corporation Kansai Electric Power Co. Inc. and Itochu Corporation have invested in AII Corporation that will provide contents and service distribution suitable for broadband Internet. This spring AII plans to start transmission of AII content to 33 CATV companies throughout Japan with the aim to increase this to 100 companies (1,000,000 households) by the end of fiscal 2001.