Mitsubishi Electric Enters into Business Tie-up in Image Communications Field

Tokyo, September 25, 1997 -- Nippon Telegraph and Telephone Corp. (NTT; head office in Shinjuku-ku, Tokyo; Junichiro Miyazu, president) and Mitsubishi Electric Corporation (head office in Chiyoda-ku, Tokyo; Takashi Kitaoka, president) have agreed to join forces in the broad field of image communications, the core of multimedia, in a collaboration ranging from product development to marketing.

The two companies have been jointly involved in the development of image-based applications and other products that use integrated services digital networks (ISDNs). As the first joint effort under the new tie-up, the two companies will begin marketing the "Phoenix mini," a videophone useable on ISDNs, on Friday, September 19.

The Phoenix mini is the world's first small, lightweight, low-priced, high-quality videophone. Thanks to its ease of operation, its operates just like using an ordinary telephone, the Phoenix mini makes it possible for a wide spectrum of people, from housewives, the elderly and children to business people, to use videophones in a wide variety of ways and situations.

In the future, the two companies aim to contribute to the progressive development of a multimedia society by expanding image-related markets through the joint development of various applications making use of the Phoenix mini.

1. Background to the agreement

Aiming at broader penetration of its "Multimedia, Ready for Use Today (Now-ISDN)" concept, NTT has developed and marketed a variety of applications for a wide range of fields, including education, welfare, medical services, and business, utilizing its Phoenix Series multimedia video-conference systems (*1). Mitsubishi Electric has a good track record in the field of image-related applications, so NTT decided to team up with it in order to achieve even wider dissemination of image communication services and related terminals that can be used to foster the spread of multimedia products and applications among households.

*1. The Phoenix Series of products includes: Phoenix, Phoenix PictureTel Live 200p, Phoenix 5200, Phoenix 5500, Phoenix 7000 and Phoenix WIDE. About 15,000 units have been sold to date.

2. Content of the business tie-up

The tie-up aims at: (1) joint development of the Phoenix mini and wider dissemination of the product through both companies' sales channels; and (2) expansion of image-related markets through (a) the provision of a wide variety of content, ranging from entertainment, through video-on-demand (VOD) services using the Phoenix mini, to business-related content, and (b) offering a variety of applications that utilize multipoint videophone connection services.

3. Roles of the two companies

(1) NTT's role

Participate in joint development and distribution of the Phoenix mini under a common brand name, along with the development and provision of applications using the Phoenix mini for a variety of fields and industries.

(2) Mitsubishi Electric's role

Participate in joint development of the Phoenix mini and oversee its distribution under a common brand name through its established sales channels. Participate in joint development of VOD and other systems using the Phoenix mini.

4. Profile of the Phoenix mini

(1) Product description

The Phoenix mini is a next-generation videophone that will be the linchpin and driving force of the new culture of image communications. It is an ISDN-compatible product developed in line with the slogan: "whenever, wherever and with whomever." It is small (*2), lightweight (3.2 kg), "the world's first low-priced videophone" (*3), and of distinctly high quality (*4). Its one-piece body incorporates a 5.4-inch color liquid-crystal display monitor and a transmitter/receiver and enables users to engage in both image and sound communications with all the ease and comfort associated with using an ordinary telephone. The communications technology conforms to the H.320 international standard, so the Phoenix mini is capable of communicating not only with products in NTT's Phoenix Series, but also with other makers' video conference systems that conform to H.320. Moreover, the multipoint connection service (*5) provided by NTT Phoenix Communication Network Corp. (head office in Chiyoda-ku, Tokyo; Yoshitaka Sato, president) allows Phoenix mini users to engage in video conferencing involving multiple locations.

*2. Small: 257 mm (width) x 272 mm (depth) x 202 mm (height)

*3. The world's first low-priced videophone: The retail price for a set of two units is 198,000 yen (120,000 yen for a single unit) excluding consumption tax. As such, this can quite reasonably be considered the world's first low-priced product of its type.

*4. High quality: Delivers video images at up to 15 frames per second

*5. Multipoint connection service: Allows the simultaneous use of two or more video conference systems at two or more locations and so can be used for conferences, remote education and so on.

(2) Retail price

198,000 yen for a set of two units (excluding consumption tax)(120,000 yen for a single unit)

(3) Date of launch

Friday, September 19, 1997

(4) Product specifications

See attachment.

(5) Examples of usage

(i)Personal use: "Face-to-face" communication between grandparents who live in the countryside and their grandchildren, or between families and fathers who are working overseas, or between parents and children who are studying abroad.

(ii)Education: Language study, at schools lacking the necessary teachers or at home by housewives and children; lifetime study by the elderly.

(iii)Health and medical services: In-home health consultations; remote medical care; in-home nursing care.

(iv)Welfare: Telecommunications using sign language.

5. Future business plan

(1) Aiming to establish 1997 as the "first year of image culture," NTT and Mitsubishi Electric are seeking to promote broader dissemination of the concept, "Multimedia, Ready for Use Today (Now-ISDN)" through the multipoint connection service offered by NTT Phoenix Communication Network Corp., and to provide stimulating and satisfying image-related applications in a wide variety of fields.

(2) Through this tie-up in the area of image communications, we will continue to provide a variety of content, ranging from VOD entertainment services using the Phoenix mini to business-related items. We will also examine the possibility of establishing "Phoenix mini stands" (a provisional designation) as public terminals that can be installed on the street and at stores to facilitate convenient image communications with home and office by those who are out and about. Through these efforts, we intend to expand the market for image communications while helping to realize new lifestyles for the 21st century.

Attachment