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Siemens provides first Chinese mobile piracy-proof music download service to Beijing Digital Telecom


WEBWIRE

Munich, Jan 17, 2007 - Beijing Digital Telecom (BDT), China’s largest reseller of mobile handsets, contracted Siemens Networks to commercially deploy the first digital rights management (DRM)-protected Chinese mobile full-track music download service. Under the agreement, Siemens will provide and operate its market-proven Music2You (M2Y) platform to BDT.

With M2Y, BDT customers will be able to select music titles from a comprehensive catalog, and then download the complete version, with CD sound quality, straight onto their mobile phone. BDT is launching the new music download service on January 31, 2007, in good time for the Chinese New Year festivities. Titles from a number of local and international labels will be available to download via China Mobile’s WAP portal. This means that more than 250 million customers will have access to the new music service – a gigantic potential market.

Unlike its local rivals, the Siemens M2Y complies with the DRM standards of the music industry, which protects music files against unauthorized copying. Siemens M2Y will implement the DRM and Java client from SDC (Secure Digital Container), a leading DRM company, continuing the successful partnership between these two companies that has seen mobile music services launched and operational with a number of Operators since 2003. Siemens is the first supplier to install a piracy-proof music download service in China – an important milestone for the international music industry.

Mr. Liu Dong Hai, Chairman of Bejing Digital Telecom: “We view securing mobile music downloading as one of the key revenue drivers for the future of mobile applications and value added services. We value Siemens as a globally recognized and experienced managed services partner, and therefore chose Siemens to provide us with a leading mobile music service.”

Daniel-Rui Felicio, Head of the Carrier Services Division at Siemens Networks, explained: “China is a growth market for telephony in general and for mobile applications in particular. We are pleased to be providing the Chinese market with these piracy-proof applications. What makes our M2Y offering special is that we do not just supply the technology; we provide the related services as well – in other words, we manage the operation of the entire platform. As a result, the customer saves a considerable amount of time and money on investment and integration.”

Background information
M2Y is a music download platform for internet providers and mobile operators that enables them to offer their subscribers up to one million songs currently on their portals. The total number of songs is technically unlimited. Music downloads from the internet are very popular. Many of today’s consumers are no longer willing to spend a lot of money for a CD with ten songs; instead they prefer to buy songs individually and make their own compilations. In the first six months of 2006 alone, more than eight million songs were downloaded from Siemens’s M2Y — up from slightly less than 80,000 in 2003, the year M2Y was introduced. Because of its large repertoire of currently one million songs, M2Y differs from the technology behind ring tone portals, which offer only a few hundred or thousand melodies. The data volume which the Siemens servers must handle is huge, and the sound quality of the songs reaches that of a CD.

You can find more about Siemens Networks Music2You at
http://www.siemens.com/m2y

Beijing Digital Telecom
(China Digital) was established in 1993. It is one of China’s longest-serving distributors of communications terminals and related services. It is also China’s largest retailer of mobile communications and digital products. The company’s has 29 subsidiaries and holding companies and more than 5,000 employees in China. By the end of this year, Beijing Digital Telecom is expected to reach 800 self-owned shops, covering over 24 cities and provinces. Bejing Digital Telecom’s Value Added Services business contributes an estimated 15% of its total annual sales.


Siemens Networks GmbH & Co KG
Siemens Networks* engages in a dialog with its customers to create trendsetting communications solutions that help network operators and service providers achieve their business goals. Siemens Networks contributes its innovative strength, worldwide experience and unsurpassed implementation expertise in all areas of voice and data communications. As an innovation leader, Siemens Networks delivers customer value today and prepares customers for tomorrow with trendsetting solutions. Siemens Networks is a fully-owned subsidiary of Siemens AG and operates in about 100 countries.

* Siemens Networks will merge into a 50-50 joint venture with the Nokia Networks Business Group, creating a telecommunications powerhouse that will be called Nokia Siemens Networks. The new company will be a global communications leader with strong positions in key growth segments of the fixed and mobile network infrastructure and services, featuring a world-class fixed-mobile convergence capability. Nokia Siemens Networks is expected to start operations in the first quarter 2007, subject to fulfillment of the closing conditions and agreement on a number of detailed implementation steps.

More about Siemens Networks at
http://www.siemens.de/networks

Information Number: SN CS 2007 01.05 e



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