Matsushita, NEC, IRI in broadband tie-up

TOKYO: Japanese electronics giants NEC Corp and Matsushita Electric

Industrial Co will set up a broadband Internet service joint venture with online

data management firm Internet Research Institute Inc. (IRI) in November, the

three firms said on Monday.

IRI is slated to take a 50 per cent stake in the new company, called

Broadband Exchange, to be capitalized at 100 million yen ($930,000). NEC will

take 35 per cent and Matsushita will own 15 per cent.

The venture will craft a new model for information distribution, enabling

content providers and telecom operators to offer one-stop, low-cost Internet

connection services, they said.

It also aims to offer an open networking infrastructure for various operators

under broadband technology, which will allow faster data transmission and permit

the display of video images and other multimedia applications on mobile devices.

As of 0519 GMT, shares in Matsushita were down 0.63 per cent at 3,140 yen,

NEC was up 4.3 per cent at 2,305 yen while IRI was up 15.87 per cent at 2.19

million yen as high-tech firms led Tokyo stocks higher.

(C) Reuters Limited 2000.