IN THE PAPERS
In The Papers 29 April
29-04-2009
by Sylvia Leatham
Mobile firms challenge roaming cap | Aggressive drive for electric cars urged
The Irish Times reports that Irish mobile operators Vodafone and O2 are among a group challenging an EU decision to cap the cost of roaming calls. The legislation, passed in May 2007, meant the maximum charge was reduced to EUR0.49 per minute for making calls when travelling within the EU. The cost of receiving a call was capped at EUR0.24 a minute. A group of mobile operators have launched a challenge to the law at the European Court of Justice. Lawyers for the companies said the legislation was adopted using flawed reasoning. The EU imposed a blanket, widespread regulation without first seeing whether there was a less intrusive remedy, David Pannick, a barrister for Vodafone, told the court.
The paper also says that a parliamentary report has recommended that electric vehicles should make up at least 15 percent of the national fleet by 2020. The report by the Oireachtas Committee on Climate Change also advises the Government to start an "aggressive drive" to ensure that all vehicles will be electric by 2030. The targets are more ambitious than those set out in current Government policy, which has set a target of electric vehicles making up 10 percent of the car fleet by 2020.
The paper also notes that Microsoft's Irish subsidiary produced a pretax profit of EUR477 million in the 12 months to the end of June 2008. Microsoft Ireland Operations Ltd, which is responsible for the software firm's distribution and logistics in Europe, the Middle East and Africa, had turnover of EUR11.3 billion and paid corporation tax of EUR63.5 million, according to accounts just filed with the Companies Office. The figures are down significantly on 2007 due to a reorganisation of the Irish operation.
The paper also reports that the head of broadband and cable TV provider UPC has said that debt-laden Eircom, which is up for sale, should not be nationalised by the Government. Robert Dunn, chief executive of UPC Ireland, said "Putting [Eircom] inside the Government would be a mistake overall and lead to a distortion of the market… The Irish taxpayer has been put under a considerable burden already and I would question and doubt the need to extend that burden. The economy does need a vibrant incumbent but I personally believe that company should exist and be supported in the private sector."
The Irish Independent notes that social networking firm Facebook is believed to have agreed to lease around 900 square metres at the Hanover Reach development overlooking Grand Canal Dock. Facebook is understood to be paying around EUR376 per square metre in rent.
The paper also reports that a survival plan for 28 Chartbusters home entertainment stores has been approved by the Commercial Court. It provides for new investment and a wholly new management structure, with group founder Richard Murphy exiting by the end of the year. Justice Peter Kelly said that while the scheme effectively allows the group to "walk away" from pre-examinership debts of EUR15 million in the event of a winding up, it at least meant creditors would get more than if the company was put into liquidation.
The Irish Examiner says that the NCT website is still down, more than two weeks after it crashed. The NCT's online application system was inundated with requests after hundreds of motorists logged on to apply for tests. The increase in the numbers applying was in response to the introduction of five penalty points for drivers who do not have an up-to-date NCT certificate by 1 May. The website first crashed on 13 April, but was still down on 28 April. A spokeswoman for NCT Services Ltd said the system would not be up and running until Friday or Monday.
According to the Financial Times, business software giant SAP has said sales of new software fell by a third in its first quarter to EUR418 million. Software and maintenance revenues were flat at EUR1.74 billion. Last year, SAP regularly reported double-digit growth in sales.
The Wall Street Journal reports that Sun Microsystems has posted a wider loss on a 20 percent revenue decline for its fiscal third quarter. Net loss for the period ended 29 March was USD201 million, or USD0.27 a share, including a USD46 million restructuring charge. In the year-earlier period, Sun reported a net loss of USD34 million, or USD0.04 a share. Revenue fell to USD2.61 billion from USD3.27 billion. Sun is set to be acquired by Oracle.
The paper also notes that the US Department of Justice is scrutinising whether Google's proposed book-search settlement with authors and publishers violates antitrust laws, according to sources. In recent weeks, the DoJ has contacted Google and some of its critics to ask about the settlement, which is designed to give Google the right to include millions of additional works in its searchable archive of digitised books, known as the Google Book Search service, sources say. A spokeswoman for the DoJ declined to comment.
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