Ericsson, Sony Join on Mobile TV Push

Swedish telecom equipment giant Ericsson and Japanese electronics maker Sony are moving their business relationship well beyond cell phones into the mobile and broadband TV space.

Per Nordlof, Ericsson's director of product strategy, said the latest collaboration between the firms will begin focusing on software to link their products through wireless networks. The duo initially formed a mobile phone joint venture, called Sony Ericsson, in October 2001. That company has since become the world's fourth-largest handset maker.

"There is a strong confidence between Ericsson and Sony after the success of the handset business and we will work to develop software that connects the gadgets in the homes with the outer world," Nordlof said at a news conference in Stockholm.

Expanding Market

Ericsson and Sony already have developed a series of technologies based on the Digital Living Network Alliance standard to allow users to move movies and pictures between handsets and regular televisions.

But the new partnership aims to capitalize on what Ericsson expects will be a massive market for mobile TV. The company predicts that one-third of the world's mobile phone users will regularly watch TV broadcasts on their handsets, especially as more and more telecom operators offer television through their broadband networks.

According to a recent study released by research firm IDC, as the number of mobile phones worldwide hits the one-billion mark this year, the mobile markets are maturing, creating demand for newer handsets with more-advanced features.

"Most telecom operators realize they will have to offer TV in order not to lose customers," Nordlof said at the news conference. "Broadband TV will be an important factor."

Other Initiatives

In September, Ericsson announced a broad restructuring into three customer-oriented units: Networks, Global Services, and Multimedia.

Ericsson also recently announced a contract with Belgian phone operator Proximus to provide an end-to-end solution for mobile TV broadcasts.

The service includes what Ericsson calls the "world's fastest channel selector solution" for mobile TV, and allows users to move between channels simply by pressing a number key on the handset.