In The Papers 7 November

07-11-2008

by Sylvia Leatham

Gardai demand data retention from telcos | Andor Technology posts 65pc jump in profits

The Irish Times reports that details of the webpages viewed by internet surfers will be retained for possible future criminal investigations if telecoms operators comply with a letter from the Garda Commissioner. The request for real-time browsing information -- the content or the URL of every webpage browsed by users of mobile handsets, palmtop devices or 3G modems -- goes beyond the European Union's data retention directive, which the Government intends to implement as a statutory instrument. Such a measure would also cover the content of web-based e-mail. "The [EU] directive does not pertain to the retention of content, and this would be very concerning," said Deputy Data Protection Commissioner Gary Davis. Industry sources confirmed that Vodafone had received a letter from the Garda Commissioner about the matter. Vodafone executives are believed to have questioned the legal basis under which it could retain this type of data.

Separately, the paper says that customers are likely to foot the bill if telecoms operators are forced to retain this data. The EU directive requires telecoms operators and internet service providers to retain data in case they are needed by Gardai for criminal investigations. But operators say the huge costs of complying with the legislation will affect their industry and be passed on to customers. Vodafone Ireland estimates it will cost EUR5 million in the first year to set up and run a system to store and manage customer data. Costs ultimately will depend on what companies are asked to retain under the legislation.

The paper also notes that cable TV operator UPC Ireland generated over USD91 million in revenues during the three months to 30 September. Read more on UPC's results on ENN.

The same paper reports that Belfast-based Andor Technology has recorded a strong set of results, with a 65 percent jump in pretax profits. Andor posted pretax profits before exceptionals of STG2.11 million on a turnover of STG24.7 million. In the 12 months to the end of September, earnings before interest, tax, depreciation and amortisation rose 35.7 percent to STG2.9 million, while pre-exceptional earnings per share leaped 47.6 percent to STG0.0645.

The paper also says that Singularity, a Northern Ireland-owned software company, plans to invest over STG3.5 million to expand its operations, a move that will create 62 jobs in Belfast and Derry. Singularity currently employs 200 people in Northern Ireland, New York, Singapore and India. The investment will increase its workforce to 161 people in Northern Ireland. The company will receive financial aid from Invest Northern Ireland totalling STG1.28 million towards the cost of the investment project.

The paper also reports that Microsoft has unveiled the Irish details of BizSpark, its new global initiative to support technology start-ups with technology, advice and publicity. Start-ups who sign up to the programme will get access to development tools and server and application products which they can use to launch commercial products. Companies who are in business for less than three years and have revenues of under USD1 million will qualify for BizSpark. Veteran venture capitalist and technology executive Brian Caulfield says the value of the software alone could be worth EUR100,000 to a start-up.

The paper also notes that more than 120 patents and 170 invention-disclosures have been filed arising from University College Dublin research. And 15 spin-out companies have formed as researchers attempt to commercialise their discoveries. The figures were revealed as UCD this week marks the fifth year since the opening of its EUR11 million NovaUCD innovation and technology-transfer centre.

The Irish Independent reports that John Hartnett, one of the top Irish technology executives in Silicon Valley, is stepping down as head of global sales with mobile technology group Palm. Limerick-born Hartnett declined to discuss his next move in detail, but said he was "going to a new opportunity -- an exciting new venture". The executive is also a venture partner and investor in technology private equity consortium Atlantic Bridge Ventures.

According to the Financial Times, Deutsche Telekom is set to reach its profit target this year and at least match that performance in 2009. Europe's largest telecoms company by revenue said its international mobile phone business was holding up to the pressures of the economic slowdown. Deutsche Telekom is targeting a steady EUR19.3 billion in adjusted earnings before interest, taxes, depreciation and amortisation this year and next.

The paper also reports that Microsoft chief Steve Ballmer has said emphatically that his company would not bid for Yahoo again, following comments by Yahoo chief Jerry Yang which added to the belief that the embattled internet company was seeking a return to negotiations. Ballmer, addressing a conference in Sydney, said there were still opportunities for future partnership based on the two companies' internet search engines, but he poured cold water on expectations of a Microsoft takeover of Yahoo. "We made an offer... We made another offer. It was clear that [Yahoo] doesn't want to sell the business to us and we moved on. We tried at one point to do a partnership around search, not an acquisition. And that didn't work either, and we moved on... and they moved on... We are not interested in going back and re-looking at an acquisition. I don't know why they would be either, frankly. They turned us down at USD33 a share..." said Ballmer.

In other news of Microsoft, the Wall Street Journal says the software giant is working to steal a deal with Verizon Wireless away from rival Google. Google has been in talks for months with Verizon to make its search engine the default option on most Verizon phones, according to sources. But Microsoft has gotten the mobile operator's attention by offering a sweeter deal to put its search service and related advertising on Verizon phones. Microsoft is also offering more generous revenue-sharing and a guarantee of substantially higher payments to Verizon, say these sources.

Free! "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.