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Press Release

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March 27, 2001

Sony and Tokyu to Create New Type of CATV Internet Service Business

Sony Corporation
Tokyu Cable Television
Tokyu Corporation

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 devices.

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.