IN THE PAPERS
In the papers 15 April
15-04-2008
by Sylvia Leatham
Eircom in government talks over super-fast broadband | Siemens probe is expanded
The Irish Independent reports that Eircom has told the Government it can provide 50 to 55 percent of the Irish population with broadband that is as fast or faster than what is available anywhere else in Europe. It is understood the telco said it can provide half the population with speeds of up to 25Mbps within seven years if the Government agrees to change the way the company is regulated. In particular, Eircom wants the regulator to stop using different means of working out what rate of return the company can earn, and instead to opt for one system based on applying a multiple to the company's capital and operating costs.
The paper also says that German prosecutors have begun investigating suspected bribery at Siemens' power-transmission division, expanding the scope of what is already the country's biggest-ever corruption probe. A spokesman for the prosecutor's office said the investigation, which until now has mainly centred on the company's communications unit, had been extended to the former power transmission and distribution unit and its then manager, Uriel Sharef.
According to the Financial Times, Sage shares fell on Monday despite the software group stating that first-half results would be in line with market expectations. Analysts' average expectations estimate that sales for the six months to 31 March will be STG617 million, with earnings before interest, tax and amortisation of STG145 million. Shares in the company fell STG0.061 to STG1.924 on Monday, partly because of concerns about the prospects for a recovery in its US healthcare business and fears that a slowing US economy will hold back IT spending.
The paper also reports that Carphone Warehouse has forecast full-year pre-tax profits of STG215 million to STG220 million, before a write-off associated with the disposal of a Swiss retail business. Analysts said the profit forecast was slightly down on previous guidance due to higher interest costs because of higher debt. In a trading statement, Carphone Warehouse said year-end debt would rise due to the devaluation of sterling against the euro and Swiss franc and by rising capital expenditure and higher inventory levels.
The Wall Street Journal reports that some of the world's largest wireless-equipment makers have agreed to a licensing framework they hope will accelerate adoption of LTE (Long Term Evolution), the 4G wireless technology standard. The group, which includes Nokia, Alcatel-Lucent, Ericsson and NEC, have agreed to limit the royalty fees they charge to license each other's patents related to LTE. Within the next few years, mobile operators such as Vodafone, AT&T and Verizon Wireless are expected to build the latest generation of mobile networks using LTE. The technology promises to allow for faster web browsing and downloads over mobile phones and other wireless devices.
The paper also says that Google aims to become a market leader in China's internet search market in about five years, according to Kai-Fu Lee, president of the company's Greater China operation. Google is also exploring investments in Chinese companies that focus on social networking and mobile internet as part of its strategy to expand in China, a burgeoning market that analysts estimate may already exceed the US in the number of internet users.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 