Philips have said that they would make more broadband enabled devices, after inking deals with four of Europe's main telecoms. In an attempt to differentiate their product line from those of rival companies, Philips is developing devices such as PDAs, DVD recorders and flat-screen TVs, with built-in broadband Internet connections. The Dutch company aims to sell these products in the UK, Belgium, Germany and Italy, where the likes of BT, Belgacom, T-com and Telecom Italia respectively will provide the high-speed Internet hook-ups.
Philips announced similar broadband alliances in March this year with KPN in Holland and Telefonica in Spain.
"These agreements are a big step in our broadband strategy," said CEO of Philips Consumer Electronics, Gottfried Dutine. He added that the company believes broadband devices for the home "will spur the development of next generation applications such as home automation and interactive video communications."
Philips' move is representative of an industry drive to develop products that allow digital pictures, video or music to be transported among PCs, PDAs and TVs. Philips has already launched a Hi-Fi set that directly plays music available on the Internet, without a PC.
The company has also said that it will share product roadmaps and collaborate on service planning with BT. Through this alliance Philips is likely to benefit from BT's 20 million large business and residential customer base. "BT and Philips will offer consumers in the UK more compelling and easier-to-use solutions that will really enable them to tap into the great benefits of broadband," said David Sales, BT retail director of home communications, in a statement.
The two companies will jointly organise broadband and device demonstrations on outlets where their products are carried. The first devices for the UK market in this new Philips range of broadband-enabled devices are set to be announced in October. The companies have yet to release prices or a specific list of products.
Some analysts are saying that the new devices are unlikely to impact on Philips bottom-line due to consistently slow take-up broadband in Europe. The company has sought similar alliances in the US, where its consumer electronics unit has not seen profits in over a decade.
