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IN THE PAPERS

In the papers 14 January

14-01-2008

by Ciara O'Brien

Google to create up to 500 new jobs in Ireland | Dept of Transport defends integrated ticketing system

The Irish Times says that Ireland's policy to promote innovation through interaction between businesses and third-level institutes is having a disappointingly limited effect, according to a study carried out by two economists from University College Cork. "Our study is just one of a number of recent studies that fail to find the positive role for third-level colleges on which the Government has shaped Irish innovation policy," said Declan Jordan and Eoin O'Leary. "It overlooks the majority of business innovations that are non-technological, the shining example of which is Ryanair. It is also misguided in that business innovation is usually market-led. Historically, third-level institutes have rarely been the main source of business innovation in any country."

The paper also says that the Department of Transport has defended the estimated EUR50 million cost and the time-frame of the much-delayed integrated ticketing scheme for public transport, blaming complex technical issues. A departmental note generated ahead of integrated ticketing being discussed by the Dail's Public Accounts Committee later this month refers to the complicated systems required to provide a single smartcard for rail, bus and Luas journeys with private and public transport companies. The decision to include the free travel scheme for pensioners and people with disabilities has also contributed to the increased cost and to delays on the project.

The Irish Examiner says that a 56 percent drop in the number of students accepting third-level computing courses is posing a threat to the sustainability of one of Ireland's most successful and secure sectors. That's according to the director of information communications and technology at Tipperary Institute, James Greenslade, who said the drop from 4,097 places accepted in 2000 to 1,791 last year is worrying for Ireland's international reputation in the ICT sector.

According to the Financial Times, Apple and China Mobile have called off talks to launch the US firm's iPhone in China, dashing speculation the device will hit the country's stores soon. "Our parent has terminated talks with Apple over the iPhone," a spokeswoman for China Mobile said, confirming several unsourced internet reports. The spokeswoman did not elaborate.

The Wall Street Journal reports that multinationals including IBM, Sony, Pitney Bowes and Nokia are set to unveil a "patent-sharing plan" whereby companies can donate intellectual property that improves the environment. The project, dubbed the "Eco-Patent Commons", builds on the experience of the open-source software movement, said David Kappos, IBM's assistant general counsel for patent law, who helped design the system. He said "the advantage of using this commons approach is efficiency, scale and visibility." The founders of the commons are donating about 30 patents to get it started.

The Sunday Tribune reports that the Irish Times is attempting to create Ireland's first 24-hour newspaper by integrating its online operations into the paper. Staff at Ireland.com, who were formerly officially employed by the new media subsidiary Itronics, were transferred to the Irish Times two weeks ago. The online journalists are believed to be moving to the main newsroom, integrated into different departments, and the Tribune claims that staff will be expected to provide round-the-clock news coverage. However, both union and management sources have claimed that the process is at an early stage and it is too soon to say what form the integration will take.

The Sunday Independent reports that mobile operator Three Ireland may be eyeing up rival network Meteor, and has hired the investment bank Goldman Sachs to advise it. However, Eircom has not officially said the mobile network is up for sale, although there are rumours that it is planning to split the telecoms company into two units -- a wholesale unit, NetCo, that will own the infrastructure, i.e. the physical phones lines and broadband equipment, and ServCo, which will look after the business and residential telecoms business, including Meteor.

The Sunday Business Post writes that Google is planning to add up to 500 new jobs to its workforce in Ireland in the coming two years, but describes reports of doubling the staff numbers to 3,000 as "overly optimistic". The report comes from a planning application by the landlord of Google's premises, which seeks to expand the premises to accommodate up to 3,000 employees.

The same paper reports that revenue in the Irish music industry fell 13 percent last year, and the blame is being laid on illegal downloading. However, although the number of CDs sold fell 10 percent, netting the industry EUR110 million, legal downloads almost doubled, and some 80 percent of singles are now purchased online. Managing director of IRMA, Dick Doyle, said a change in how music piracy was tackled is on the cards, and ISPs could play a greater role, including a possible "three strikes" rule for offenders. This would involve ISPs booting off those who are caught illegally downloading three times. However, ISPs are likely to fight such a move.

The same paper reports that software firm Propylon suffered losses of EUR923,000 for the year ending December 2006, but this loss was in line with expectations. Accumulated losses now total EUR1.72 million, but the firm says it is in a "growth phase" and has its eye firmly on the US market. Propylon develops software for legislative bodies.

The same paper reports that software consultancy firm Asidua saw its yearly pre-tax profit rise 22 percent to STG574,009 or EUR768,111. The firm, which is based in Belfast, now has accumulated profits of almost STG1.6 million, while turnover rose 38 percent during the period, which ended 31 March 2007.

The paper also says that few Irish firms are making the journey to Las Vegas for the Consumer Electronics Show, but those who do can expect to see the benefits -- including Irish firm Redmere. The chip firm told the paper it had some 150 meetings in three days, and although it was unlikely to sign any major deals at the trade show, it was important in paving the way for future deals. The firm demonstrated its chip that can be used in high-definition cables. Silicon and Software Systems (S3) also exhibited at the event.

The Sunday Business Post also reports on Irish software company Rockall's planned expansion in the US. The firm is counting on growing awareness of compliance issues among financial institutions to drive growth during 2008. Rockall has already provided a collateral management system for the Federal Home Loan Bank of Boston, and has made a similar agreement with the FHLB of New York. Five more institutions are currently talking to Rockall. The company also has plans for a formal launch in Britain.

The same paper writes about software firm WestGlobal's new range of software, which is due for release at the World GSM Congress next month. The company provides software to manage service and customer experiences and is targeting firms such as Vodafone and O2.

The Sunday Business Post also reports that cable firm UPC has scrapped its connection charges for digital TV and cut the cost of upgrading for analogue customers to EUR2.50 a month. The company recently said that it had already upgraded half of its network to allow it to offer digital TV to 300,000 customers. However it is also fighting for customers ahead of the expected analogue switch-off in 2012, with a number of companies offering free satellite TV and a growing number of illegal digital boxes in Ireland.

The same paper briefly reports that Ergo Software has linked up with Nua Homeloans to develop an automated online mortgage system that brokers can use to process applications online. Any necessary paper documentation can be scanned and subsequently uploaded to the new system.

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