DoCoMo, a Japanese wireless carrier, just took a 35 percent stake in PacketVideo for $45.5 million to solidify DoCoMo's advanced music and video services in Japan.

Since they partnered in 1998, DoCoMo and PacketVideo have been incorporating PacketVideo's technologies into multimedia applications for DoCoMo's Foma 3G mobile network services. The partnership is expected to further DoCoMo's music and video offerings and make both companies more competitive in the market place.

"PacketVideo is a pioneer in the industry; PacketVideo's software has shipped in hundreds of millions of mobile phones," said Joel Espelien, chief business officer at PacketVideo, San Diego, CA.

"DoCoMo recognizes PacketVideo's demonstrated leadership in multimedia software, and its investment is a clear endorsement of PacketVideo," Mr. Espelien said." PacketVideo has gained a new investor, and we are looking forward to capitalizing on our opportunities to grow our business in Japan."

NTT DoCoMo claims to be the world's leading wireless carrier and provider of advanced mobile services, caitering to over 54 million customers in Japan.

DoCoMo's goal is to continually expand the role of mobile phones as versatile and customized lifestyle tools including a broad range of services such as mobile payments, GPS, mobile TV and multimedia content.

As a front runner in wireless and digital home multimedia software and service applications, PacketVideo will now have the resources to continue its work in the field while providing music and video services to over 54 million Japanese customers via the DoCoMo platform.

Up until now, PacketVideo's Core multimedia player, pvPlayer has been installed in over 90 DoCoMo handset models.

The partnership was chosen particularly to manage the joint development of PacketVideo's new technologies efficiently, which guarantees a stable supply of advanced mobile applications and technologies to DoCoMo.

"DoCoMo sees the strategic value in PacketVideo and thus wanted to make a meaningful investment in it," Mr. Espelien said. "This deal represents growth for both DoCoMo and PacketVideo.

"PacketVideo's software is already on hundreds of millions of phones, and we continue to bring music, photos and video to the mobile phone, converging that media seamlessly in the home," he said.

NTT DoCoMo claims to be pleased as a new equity partner of PacketVideo and expects continued growth and long-term success for the company, as PacketVideo has already been a key supplier of software and supported DoCoMo with important technological contributions.

PacketVideo admits that DoCoMo is a great investor to help the company strenghthen its position in developing high class media experiences across all platforms. PacketVideo expects that DoCoMoo's support will allow great acceleration in the company's growth and advancement.

"Being connected is a fundamental part of modern life. Even during the current recession, consumers continue to value their mobile phones," Mr. Espelien said. "In fact, both mobile phone use and smartphone sales have remained strong throughout the global downturn.

"PacketVideo firmly believes that smartphones and other connected devices represent a long term global trend over the next decade that will ultimately be just as significant as the personal computer and the Internet were in the last two decades," he said.