NEWS IN BRIEF
Daily Digest 22 January
22-01-2009
by Emmet Cole
National Broadband Scheme unveiled, finally | Microsoft to axe 5,000 jobs worldwide
The National Broadband Scheme (NBS) -- the Irish Government's scheme to deliver broadband services throughout the entire country by September 2010 -- was announced Thursday by Communications Minister Eamon Ryan. Back in November 2008 Three Ireland won the contract to deliver the scheme. NBS is tasked with providing the remaining 10 percent of our population (or approximately 33 percent of the area of the country) with broadband services. The scheme will see an investment of EUR223 million from a combination of Exchequer funds, EU co-financing and Three Ireland, and will create 170 direct jobs. The product provided by Three Ireland will cost EUR19.99 per month with a connection fee of EUR49.
Fine Gael Communications spokesman, Simon Coveney TD, welcomed the NBS announcement "in principle", but expressed "serious concerns" about the project and the future of rural broadband. Coveney highlighted the fact that the NBS is already six months behind its original schedule and expressed concerns that the scheme is based almost solely on mobile broadband on a mobile network.
Meanwhile, Chambers Ireland welcomed the NBS announcement, noting that it offers "every chance" of Ireland being in a position to provide entry-level broadband nationwide by September 2010. "The case for fixed line broadband going to every business in the state is hard to justify in a time of significant fiscal challenge for the Government. It follows that a wireless and scaleable broadband offering is a viable option for rural business provided that it is always on, is easily accessible and is good value," said Claire Cunningham, Chair of Chambers Ireland's Digital Policy Council.
Microsoft has announced that it is to axe up to 5.5 percent of its global workforce (about 5,000 jobs) in the next year and a half. Microsoft said it is to cut 1,400 jobs immediately, with the rest of the cuts coming by June 2010. The company hopes the moves will support its goal of saving USD1.5 billion in operating expenses and USD700 million in capital expenditure in 2009. The software giant made the jobs announcement on Thursday, when it also posted fiscal second-quarter earnings that were lower than analysts' forecasts. Net income for the quarter was USD4.17 billion, down 11 percent from the year-ago quarter. The company reported earnings per share of USD0.47. According to Briefing.com, the consensus amongst analysts was per share earnings of USD0.49. Shares in the company fell 7 percent in early US trading on the news.
Here in Ireland, Microsoft has confirmed a "small number of positions in Ireland are included in the immediate job elimination plans announced by the company today". While some reports have indicated that there will be 20 jobs cut at Microsoft Ireland, a spokesperson for the company has confirmed to ENN that the figure will be less than 20, though they did not provide an exact number. Microsoft employs 1,200 staff in Ireland and in a short e-mail statement said it "remained committed to our business in Ireland".
Tanaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD has announced that Gerson Lehrman Group is to establish a European office in Dublin. Gerson Lehrman Group (Ireland) plans to create 50 new jobs by 2011, with almost half being employed within the next 12 months. Recruitment has already commenced for third-level graduates for positions that include C#/ASP/.Net software engineers and quality assurance engineers, product managers and other professionals. Gerson Lehrman Group Ireland's activities will include sales and client service, software development, including next-generation technology platform and research software. IDA Ireland campaigned for Dublin to be chosen as the site of the new office and the organisation is now assisting Gerson Lehrman Group Ireland with the start-up of the new facility.
Finnish mobile giant Nokia has reported a nearly 69 percent drop in its fourth quarter net profit to EUR576 million. In the three months from October to December 2008, the firm sold 113 million mobile phones but its market share shrank to 37 percent down from 40 percent in the fourth quarter of 2007. Nokia expects global mobile device sales volumes to decline about 10 percent in 2009, compared to 2008, but the company says it is aiming to increase its own market share.
Meanwhile, LG Electronics (LG) also announced its fourth-quarter earnings results for 2008 on Thursday. LG recorded a net loss of SKW671.3 billion (USD490 million), down from a net profit of SKW621.3 billion a year earlier. This represents LG's first net loss since the first quarter of 2007, when it posted a loss of SKW123 billion. Meanwhile global sales rose 23 percent to SKW13.37 trillion from SKW10.91 trillion in the year-ago period. The company predicts that slow market demand and intensified competition will continue in the coming year causing changes in industry dynamics.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 