For-side takes €8m stake in mobile service provider

JAPANESE mobile telephone content services provider For-Side.com has taken a 4.7%, €8 million stake in iTouch as part of a strategic alliance agreed by the companies.

The move comes just a matter of weeks after iTouch, which provides phone games, ringtones and text services, extended its reach into Europe by making an agreement to buy the mobile entertainment arm of Saunalahti, the Finnish telecommunications operator, for up to €30m in cash and shares. iTouch has not taken a reciprocal stake in For-Side.com.

The move gave iTouch access to 20 countries across Europe, including Russia, which is expected to be the fastest growing market for premium text message services in the next few years.

The new alliance with one of the world’s most innovative mobile phone content providers is expected, according to iTouch, to give the Independent News and Media spin-off a major advantage in the European market.

“Under the agreement iTouch gains immediate access to the For-Side database which contains more than 20,000 items including colour and animated wallpapers, polyphonic and real tones, Java games and, in due course, content for 3G applications such as music and video.

Mobile content in Japan and Korea is typically up to 2 years ahead of European markets so this agreement enables iTouch to offer the very latest products to its customers and remain well placed to take advantage of 3G developments as they materialise in Europe,” iTouch said in a regulatory announcement.

iTouch will now represent both iTouch and For-Side in global content and licensing negotiations with key media providers such as film and music companies.

For-Side is a dedicated mobile value-added services (MVAS) company listed on JASDAQ.

As a result of the investment by For-Side, iTouch has decided to use cash to satisfy the entire initial consideration payable to Saunalahti Group in September as part of the acquisition of Jippii.