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Sony, NTT DoCoMo, to form JV for mobile phone IC card services

Posted on: Monday, 27 October 2003, 06:00 CST

TOKYO, Oct. 27 (Kyodo) -- Sony Corp. and NTT DoCoMo Inc. said Monday they have agreed to form a joint company to develop a new system that will enable mobile phone users to enjoy services currently available only with integrated circuit (IC) cards.

Sony and NTT DoCoMo plan to establish the new joint venture firm, FeliCa Networks Inc., in January 2004 for the launch of the new services combining Sony's contactless IC card technology called FeliCa and NTT DoCoMo's mobile multimedia expertise.

Under the agreement, the new company will have a start-up capital of about 6 billion yen and undertake the development, manufacturing and sales licensing of mobile FeliCa IC chips as well as operation of the new services' platform.

Sony will own a 60% stake and NTT DoCoMo the remainder.

The two companies said they will continue to finalize the details of the joint venture.

The new services will provide customers with mobile phone IC card services such as transport system payments, electronic money and personal identification security, Sony and NTT DoCoMo said.

In addition, both envision using the telecom infrastructure for mobile phones to provide new capabilities such as the direct downloading of prepaid money and content-based data.

Potential applications of the technology could include electronic ticketing and online credit, which would provide convenience and added value for both providers and customers, they added.

Sony began developing the FeliCa technology in 1988. It became widespread after being introduced in transport systems in Hong Kong, and services using it include East Japan Railway Co.'s Suica system and the Edy electronic money service.

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