KG Telecom plans mobile phone joint venture with Sony

KG Telecommunications Co Ltd (和信電訊), Taiwan's third-largest mobile phone operator, said it will tie up with Japan's Sony Corp to form a joint venture in providing ADSL Internet access services in Taiwan.

The joint venture will be established in July and start services in August, Leslie Koo (辜成允), chairman of KG Telecom, announced at a news conference yesterday.

He said the joint venture will be named So-net Taiwan Ltd with a startup capital of US$8 million. Sony group takes an 85 percent share and KG Telecom makes up of the remaining 15 percent stake.

KG Telecom will combine forces with Sony's Internet service arm, Sony Communications Network Corp, in the new venture. Koo said.

Sony Communications Network operates an Internet service provider (ISP) service named So-net in Japan. So-net is currently the Japan's fourth-largest ISP enjoying a pool of 1.6 million subscribers.