Sony 2005 Annual Report Download - page 24

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22 Sony Corporation
Other
Sony Communication Network Corporation (SCN) is primarily expanding the So-net
Internet service in Japan. So-net presently provides Internet access and content
services to approximately 2.45 million subscribers.
The market for broadband Internet services continues to grow quickly. The domes-
tic market for constant-connection broadband services—including asymmetric digital
subscriber lines (ADSLs), fiber-to-the-home (FTTH) and cable television—exceeded
18 million subscribers in December 2004, according to Ministry of Internal Affairs and
Communications statistics, and Internet users continue to join.
In the fiscal year ended March 31, 2005, SCN sought to attract new subscribers
by strengthening its broadband content services and adding personalized services,
such as the customizable portal My So-net and the easy-to-use personal web site
service, So-net Blog. To allow subscribers to use its network without worry, SCN was
an early adopter of personal privacy policies, obtaining Privacy Mark* certification in
November 1999.
Two of SCN’s affiliates were listed on the Tokyo Stock Exchange Mothers market
in the period under review. So-net M3, Inc., a consolidated subsidiary of SCN listed
in September 2004, provides pharmaceutical marketing support services centered
on m3.com, a portal for physicians in Japan. In May 2005, the subscriber base for
m3.com reached 100,000, making it the largest in the country. DeNA Co., Ltd., an
SCN equity-method affiliate listed in February 2005, offers e-commerce solutions,
including Bidders, an auction and shopping site, and Mobaoku, an auction site for
mobile phone users.
To provide SCN with greater independence and more flexibility to adopt its own
management structures and growth strategies, we are considering the possibility of
pursuing an initial public offering of SCN’s common stock and delisting our subsidiary
tracking stock. We believe this would allow SCN to achieve its full potential within the
Sony Group.
* Privacy Mark: Personal information management accreditation administered by the Japan Information
Processing Development Corporation (JIPDEC).
A470001(03)
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