Full-Scale Introduction of IPTV Business for Communication Carriers; NEC targets 50 billion yen in sales after 3 years

TOKYO — NEC Corporation today announced that it will launch full-scale IPTV business with high-profile NGN (Next Generation Networks) carrier applications. Providing End-to-End IPTV solutions and video delivery systems to communication carriers, NEC will expand this business to the international market. The company will draw on its NGN know-how and extensive experience with broadcasting technology to deliver highly competitive solutions predicted to generate 50 billion yen in sales by 2010.

NEC intends to adopt the following initiatives to accompany full-scale introduction of the new services.

1. Delivery of End-to-End IPTV solutions using NEC products, from network architecture to delivery servers and household terminals, in a "Full Line Full Layer" approach. This will make it possible to guarantee the Quality of Service (QoS), Quality of Experience (QoE) and advanced security demanded by carriers and users alike and achieve high-quality and convenient interactive services.
2. Release of the "NC7500-VD" video delivery server (VoD server) in April as the core system for new IPTV solutions. This server will deliver continuous video-on-demand services with carrier-grade reliability. In addition, in-built contents protection functions will safeguard intellectual property rights and satisfy even the most robust security needs. (Please refer to attachment)
3. Adoption of CASCADE’s “QualiTVision*” middleware which has enabled IPTV deployments in Hong Kong and Thailand to offer such advanced video solutions as time shifting, Network PVR** and interactive services.

“IPTV is a video delivery service that uses the IP network. With the addition of NGN we can provide a variety of services, including high-grade video-on-demand (VoD) and value-added information services”, says Dr. Botaro Hirosaki, Executive Vice President of NEC. “NEC aims to expand services and meet carrier demands for smooth migration from current services and advanced service architecture incorporating NGN capabilities by providing next-generation IPTV solutions that couple our extensive technical achievements in broadcasting with our core competence in the area of IT/Network integration.”

Notes
* QualiTVision is middleware produced by CASCADE Limited, a wholly owned subsidiary of PCCW Limited (SEHK:0008), Hong Kong’s leading communications carrier.
** Network PVR (Personal Video Recorder): A service that stores data recorded by users of a video entertainment service on a network for viewing at a later time.