In the papers 11 December

11-12-2006

by Maxim Kelly

US media firms mull YouTube rival | Eircom considers sale of telecoms masts

The Irish Independent says that mobile operators are expected to come under more pressure on Tuesday following a meeting of communication ministers in Brussels, many of whom are supporting the Commission's plans to reduce roaming charges. The meeting will be attended by Communications Minister Noel Dempsey. European Information Society Commissioner Viviane Reding tabled proposals in July designed to slash mobile roaming charges by more than 50 percent.

The Irish Examiner notes that insurance firm Prudential has rejected an approach for its online bank Egg, after the Sunday Times reported that Citigroup was considering a bid for the bank. "It was clear that it was speculative and conditional and not in our shareholders' interests to pursue further," said Prudential in a statement.

According to the Financial Times, Siemens faces further damage to its corporate image after Transparency International, the anti-corruption watchdog, said it would end the German industrial conglomerate's membership, following investigations of suspected fraud at the group. The decision to expel Siemens from the organisation raises the pressure on Chief Executive Klaus Kleinfeld to deal with the investigation and could even put an agreed tie-up with Nokia's telecoms equipment business in doubt, according to German newspaper reports.

The Wall Street Journal says that four major media companies -- including News Corp's Fox, Viacom, CBS and General Electric's NBC Universal -- are in talks about creating a video website to compete with Google's YouTube, according to people close to the situation. The companies, owners of most of the major TV networks, envision a jointly-owned site that would be the primary web source for video content from their networks, allowing them to cash in on fast-growing web video advertising.

The paper also says that the US Federal Communications Commission could remain deadlocked on the pending USD84 billion merger of AT&T and BellSouth, as a new Republican commissioner raised new questions about whether he intends to vote on the deal. The five-member FCC has been deadlocked 2-2 for several months over potential merger conditions on the deal as commissioner Robert McDowell kept out of deliberations on conflict-of-interest concerns. McDowell has now raised the possibility that he may decline to vote on the deal, even though he's been cleared to do so.

In other news of AT&T, the paper also says that the telecoms firm is stepping up its investment in the fast-expanding Chinese economy, but it continues to grapple with regulatory barriers that make the telecommunications market more restrictive for foreign companies, a senior executive said. AT&T is set to announce that it will open an internet data centre in Shanghai, which will be AT&T's second in China outside Hong Kong and will be operated with a Chinese partner.

The Sunday Tribune reports that a website produced by Dublin's local authorities a few months ago to encourage recycling has processed over 4,000 items so far. Dublinwaste.ie allows owners of unwanted goods to advertise them for free collection by other users, and the service is averaging 60,000 hits per month, according to a Dublin City Council spokesman.

A Sunday Tribune report describes the unconfirmed sale of Dublin-based video game software specialist Demonware to an unnamed US games publisher. Demonware chief executive Dylan Collins would neither confirm nor deny that a deal has been completed, but notes in the company's 2005 accounts show the company "entered into discussions with an American incorporated company with a view to a possible equity investment by that company." Activision, Ubisoft, Electronic Arts and Sega are US gaming firms which have used Demonware technology in the past.

The Tribune also reports on Irish online entrepreneurs attending the International Web Expo in Paris. Read the full story on ENN.

The Tribune also reports that Eircom may be about revitalise its British operations. The Irish telco has been using a business process outsourcing firm (BPO) called SCi to contact 5,000 potential clients in just 65 days.

Meanwhile, the Sunday Business Post reports that Eircom is considering selling 109 telecommunications masts around Ireland. No final decision has been made, but the paper reports the option was presented to Babcock & Brown investors last week, and the sale of these assets could be used to reduce debt in the firm.

The Business Post also reports on expansion by life sciences firm Celtic Catalysts. Read the full story on ENN.

The Sunday Business Post reports that Galway chip manufacturer Lightstorm Networks made a loss of EUR3.2 million last year. The company had accumulated losses of EUR4.8 million for 2005, and recently raised 3.4 million in funding.

The paper also reports that Dublin financial software firm Fineos has won a deal with US financial services firm Mutual. Financial details have not been released.

The same paper says that Curam Software had sales of EUR45.3 million last year. Sales surged by more than 50 percent from EUR30 million for the year. However pre-tax profit fell to USD352,752 from nearly EUR850,000 the previous year.

The Sunday Business Post also reports that broadband take-up is fuelling a boom in online shopping. A Deloitte survey cited by the latest Amas/Irish Internet Association report shows that nearly half of all Irish consumers plan to spend more online this Christmas than last year.

Payphone fraud cost Smart Telecom an estimated EUR380,000 last year, according to the same paper. Turnover for the payphone business fell 30 percent in the first three months of 2006 to just over EUR500,000. Between April and June an error in calculating monies owed to Smart from other payphone service providers caused the company to write off a further EUR165,000.

Mobile operator O2's chain of shops made an operating loss of EUR1.8 million last year, the paper also notes. If two transactions costing EUR3,813,000 are excluded, the shops made a profit of more than EUR1 million. O2 Retail employs 289 people.