In The Papers 11 September

11-09-2008

by Sylvia Leatham

Stolen HSE laptop was not encrypted | Magnet says Eircom pricing is 'anti-competitive'

The Irish Independent reports that the chairman of the Independent Broadcasters of Ireland has called on the motor industry to promote digital radio by putting DAB (Digital Audio Broadcasting) technology in cars. Willie O'Reilly, who is chief executive of Today FM, said that car makers will dictate the future of DAB, which offers sound reception with no hiss, crackle or fade. "It won't be entrepreneurial skills or government policy that will decide the success of digital; it'll be decisions taken by the likes of Ford, BMW and Toyota," he said. However, O'Reilly is not convinced that car makers see digital radio as an in-car entertainment priority.

The paper also notes that independent directors at Belfast-based digital camera maker Andor have withdrawn their support for a takeover bid from Thorndale Trading, as reported by ENN on Wednesday.

The same paper says that the Data Protection Commissioner's office has expressed astonishment that a laptop stolen from the home of a Health Service Executive employee -- containing the details of 1,000 health workers -- was not encrypted. Gary Davis, the deputy commissioner, has sought an urgent meeting with HSE officials to find out why sensitive medical information held on the device was unprotected. Gardai are also investigating how the laptop, a BlackBerry device and data disc were stolen last week. The HSE confirmed that the data -- which was password-protected but not encrypted -- contained the name, address, date of birth, telephone numbers, GP name and address, and information on the occupation of the workers concerned.

The Irish Times says that e-learning firm Houghton Mifflin Harcourt plans to invest EUR350 million over the next five years in a research and development hub that will create 450 jobs in Dublin. Read more on this story on ENN.

The paper also reports that broadband firm Magnet Networks has formally complained to telecoms regulator ComReg about what it claims are anti-competitive pricing tactics by Eircom. Mark Kellett, Magnet's chief executive, said the prices Eircom was allowed to charge for wholesale products was making the market uncompetitive for investment. Magnet feels there should be a larger price differential between Eircom's wholesale products, which require a relatively low investment by other telcos re-selling them, and local loop unbundling. LLU involves placing equipment in Eircom phone exchanges in order to take control of lines and so requires a significantly higher level of investment. "Eircom have been allowed to price-squeeze the LLU providers," said Kellett. On Wednesday night a ComReg spokesman said he was not aware of any formal complaint from Magnet. Kellett was speaking following the launch of Magnet's free PC TV and 'turbo boost' broadband services, as noted by ENN.

The paper also says that the number of broadband subscribers in Ireland surpassed 1 million this summer, according to new figures released from ComReg. Read more on this story on ENN.

According to the Wall Street Journal, Apple chief Steve Jobs and several other current and former Apple executives have agreed to a tentative settlement in a shareholder lawsuit that alleged improper stock-option practices at the firm. Under the settlement, insurance companies that provide liability coverage for company officers and directors will pay USD14 million to settle claims about their alleged participation in a system to pick favourable option grant dates at Apple. As part of the settlement, Apple also agreed to make several changes to its corporate governance practices and other company processes. Because the lawsuit was a derivative action, Apple itself will receive the USD14 million. In such a lawsuit, the company generally receives any settlement money, with a portion usually being paid to plaintiffs' lawyers.

The paper also says that online bookseller Amazon has struck a deal with a publisher to offer separate biographies of the two potential first ladies of the US on an exclusive basis to users of Amazon's Kindle electronic book reader. The two titles, "Cindy McCain: Elegance, Good Will and Hope for a New America" and "Michelle Obama: Grace and Intelligence in a Time of Change" are being published as e-books by Lyons Press. Only the title of the winning candidate's wife will go on to be published as a traditional paperback.

Separately, the paper says that Amazon plans to start selling wine from Napa Valley and other US regions on its website later this year. An Amazon spokesman declined comment, but Terry Hall, communications director of Napa Valley Vintners, said the company will begin selling wine at the end of September or the beginning of October, from about 26 states.

New! "In the papers" email newsletter -- get the full text to your in-box every business day. Email itp@enn.ie with 'subscribe' in the subject line.