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Telefonica Moviles Takes NEC Platform for Mobile Multimedia

22nd September, 2004

Canada / Italy : NEC has received an order for its Multimedia Content Adaptation Solution from Telefónica Móviles España, S.A., Spain's largest mobile operator with 18.6 million subscribers. Spain has a population of 41.11 million and 83% mobile phone penetration, one of the highest levels of mobile phone penetration in Europe.

The Multimedia Content Adaptation Solution is a server software system that optimizes video, music, and photographic data for various types of services and terminals. Besides overcoming barriers and difficulties between different mobile telecommunications providers and different terminals, it facilitates the 2.5G to 3G transition, enabling free use of video, image, and music as well as voice and text data.

Multimedia content distribution, together with the Multimedia Messaging (MMS) service launched in 2002, are vital elements in the business strategies of European and Asian mobile operators, who are looking for ways to increase their average revenue per user (ARPU, i.e., per user sales). Multimedia services will, while stimulating new user demand, also trigger new mobile terminal sales.

While, the prospects for expansion of multimedia services are good, the proliferation of services and introduction of new, higher-performance terminals have, in a growing number of cases, resulted in the inability and difficulties of different services and terminals to share multimedia content.

With the introduction of NEC's Multimedia Content Adaptation Solution, 2.5G terminal users can enjoy the use of a fuller range of 2.5G and 3G services without having to purchase new terminals. At the same time, 3G service users will be able to participate fully in 2.5G user communities. From the mobile operator's perspective, packet transmission volume will increase and 2.5G users stimulated to upgrade to higher-added-value 3G services. In addition, it will facilitate exchanges between providers; for example, service providers in Japan will now be able to do business with other providers overseas.

Since June 2003, NEC has, using iMode(R) technology and know-how provided by NTT Do-Co-Mo, supplied Telefónica Móviles España with the mobile Internet platform system and iMode(R) terminals required for its MoviStar emocion mobile Internet service. NEC has also supplied mobile Internet service platforms using iMode(R) technology to FE Telecom in Taiwan, Bouygues Telecom in France, WIND in Italy and Cosmote in Greece. Transfer of all these systems has proceeded smoothly. To NEC, the new order from Telefónica Móviles not only adds to a growing record of success overseas; it is also an opportunity to strengthen its business as a supplier of non-iMode-platform technology in the mobile Internet sector. As the telecommunications world transitions from 2.5G to 3G, NEC looks forward to further fleshing out its mobile Internet application line-up and actively developing new mobile Internet platform businesses targeting mobile telecommunications providers aiming to increase profitability and improve customer satisfaction, by offering attractive mobile Internet services.

About NEC's mobile application business
NEC is a total mobile solutions provider capable of providing everything from cellular handsets to infrastructure to mobile applications. NEC has been actively expanding its sales in mobile applications, infrastructure and handsets, not only inside Japan, but also on overseas markets. The firm has a track record of delivering platforms for implementing mobile internet services such as i-MODE/WAP2.0, along with location information systems, contents conversion software, mail servers, and the like. NEC's mobile applications are value-added applications by which, using cell phones, persons anywhere can easily get the information they want and freely participate in their favorite communities and thus live more fulfilling lives. The fundamental concepts behind the applications are "personalize," "community" and "security." In the last couple of years, because of the penetration of camera-equipped cell phones and the introduction of ring tone services for call sender, the keywords "personal" and "community" have assumed greater importance. On the other hand, when introduction of 3G infrastructure and IMS gets going, the changeover to all-IP and broadband multimedia data communications will move into high gear. The predictions are, as a result, that packet-based voice services -- such as VoIP service and PoC (Push to Talk Over Cellular) -- will expand and the integration of voice and data services will accelerate along with the introduction image distribution services of such things as cartoons or movies.

On the foundation of its Mobile Internet Platform, NEC will aggressively expand sales efforts in its primary products of (i) "Ring back melodies," in which phone call recipients let call senders hear their favorite music or messages, (ii) "Location information system," a platform for providing various services based on participant location and (iii) "3G/2.5G Mobile Visual Solution" to provide such multimedia data as cartoons, together with its other application software offerings.

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