IN THE PAPERS
In The Papers 22 December
22-12-2009
by Sylvia Leatham
ComReg to auction GSM spectrum | DTT rollout moves closer
The Irish Times reports that Avaya has done a deal to acquire a division of Nortel Networks, as reported by ENN on Monday.
The paper also says that ComReg has confirmed it will auction the mobile spectrum used by Vodafone, O2 and Meteor to provide GSM services when their licences begin to expire in 2011. This could raise up to EUR182 million for the exchequer, according to recommendations in a consultants' report published by ComReg. The spectrum, which is in the 900MHz band, was previously reserved for GSM or 2G services, predominantly voice and basic data services. The three operators also have 3G licences which can carry voice and high-speed data.
The paper also notes that General Motors has hired Chris Liddell, the chief financial officer of Microsoft, as its new finance chief.
The Irish Independent reports that IDA Ireland helped secure EUR1 billion in foreign direct investment during the year, with over EUR500 million for projects in research and development and innovation. Read more on this story on ENN.
The paper also says that the chances of resolving the impasse over Digital Terrestrial Television (DTT) are understood to have "improved considerably" in recent days after Eircom moved to take a 65 percent stake in the One Vision consortium. Originally equally owned by Eircom, Setanta, TV3 and UK firm Arqiva, the One Vision consortium had been contemplating its DTT options since 11 May, when it was awarded the contract for the technology's commercial rollout. It is understood that after a period of limited engagement over the autumn, RTE and One Vision have embarked on discussions with renewed vigour in recent days. Under proposed changes, notified to the Broadcasting Authority last week, Eircom would take a 65 percent stake in the venture, while Arqiva would take 25 percent, Setanta 10 percent and TV3 a "nominal" shareholding.
The Wall Street Journal reports that Yahoo is to shut down its offices, except for "essential functions", from 25 December through 1 January, as the internet giant searches for new ways to cut costs. Yahoo spokeswoman Dana Lengkeek said the move is the company's first mandatory worldwide shutdown, although Yahoo has encouraged US employees to take the week off in the past. Shutting down "during a traditionally slow week allows employees to recharge, and the company to reduce operating costs for the week," said Lengkeek. US staff can use vacation time or take unpaid leave for the days not covered in the holiday schedule. Outside the US, "time off will be paid consistent with local standards and laws".
According to the Financial Times, the prospect of a UK price war over Apple's iPhone has receded after Vodafone revealed its tariffs for the smartphone. Vodafone said it would seek to compete with other mobile operators selling the iPhone by stressing the quality of its network. Vodafone's iPhone deals start with the older 3G version at STG30 per month on contracts lasting 18 months. Customers will pay STG99 for the handset, so the total cost is STG639. Deals with O2 and Orange involving 18 month contracts have a total cost of about STG625.
The paper also says that the BBC has been given the go-ahead for a venture to bring internet services to TV sets in the UK. The venture, known as Project Canvas, is designed to strengthen free-to-air broadcasters in the internet age. Set-top boxes using Canvas software are expected to be available late next year for about STG200, allowing people to access websites such as the BBC's iPlayer, NHS Direct and Amazon through their TVs.
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