IN THE PAPERS
In The Papers 13 September
13-09-2010
by Sylvia Leatham
Intel jobs could be at risk | Another Nokia exec to depart
The Financial Times reports that the clash between Chinese e-commerce firm Alibaba and Yahoo over business in mainland China has escalated. In an interview with the paper, Alibaba CEO David Wei said Yahoo, the main shareholder in Alibaba, was a business threatened with demise. The attack follows a push by Yahoo Hong Kong into mainland China, bringing it into competition with Alibaba. The Hong Kong unit said it was taking advertising from businesses on the mainland. Wei said his company's relationship with Yahoo was like that of an estranged grandson and grandfather. Asked whether Alibaba would take steps against the US web portal over Yahoo Hong Kong's move, he said: "Chances are the grandfather will pass away anyway."
In more news of Yahoo, the Wall Street Journal says that Yahoo is redesigning its e-mail service to help stem a user decline and compete with offerings from rivals Microsoft and Google. The planned changes to Yahoo Mail, part of a project codenamed "Minty", are aimed partly at increasing the speed of the service in overseas markets where internet connections are slower than in countries such as the US. Yahoo is also changing the look of the service to resemble the simpler design of the e-mail app that can be downloaded for mobile devices. The updates to the e-mail service are expected to roll out this autumn.
The same paper says that Hewlett-Packard is nearing a deal to acquire security software firm ArcSight for around USD1.5 billion, according to sources. The price per share is not known, but ArcSight was seeking around USD42 a share, according to other people familiar with the matter. A deal could be announced as early as Monday, sources said, but they cautioned that things were still fluid and could fall apart.
The paper also reports that another key executive has left Nokia, just days after the removal of Olli-Pekka Kallasvuo as chief executive. The surprise resignation of Anssi Vanjoki, head of the Mobile Solutions unit, was announced on Monday, just ahead of the company's annual product showcase. Vanjoki, who is also executive vice president and a member of Nokia's group executive board, has a six-month notice period and will continue in his position for now. "I felt the time has come to seek new opportunities in my life," he said in a brief statement. The 15th Nokia World event takes place Tuesday and Wednesday in London, where the company is expected to showcase its new flagship smartphone, the N8, and an upgraded version of its Symbian mobile platform.
The paper also notes that Apple has confirmed it will end its offer to give away free cases to iPhone 4 owners, which the company introduced in July after complaints about dropped calls as a result of the phone's unique antenna design. Apple also said that iPhone 4s purchased after 30 September would be subject to its normal return policy, whereby the customer can return the phone within 30 days for a full refund. "We now know that the iPhone 4 antenna attenuation issue is even smaller than we originally thought," the company said in a statement. An Apple spokeswoman declined to elaborate.
The Sunday Independent reports claims from the National Newspapers of Ireland (NNI) that RTE is using its EUR200 million licence fee funding to prop up its commercial activities, including online. The NNI says this is putting other media at a significant competitive disadvantage. It says RTE is promoting internet-based commercial activities in association with outside companies, including a dating site, car sales, and house sales and rentals, in addition to providing news content free of charge online and through mobile devices. The association wants to meet with Minister for Communications Eamon Ryan to discuss the situation. RTE denies the NNI's claims.
The same paper says that Eircom is to go ahead with plans to impose a minimum payment for those paying their telephone bills in cash instalments. Despite a request by the telecoms regulator to abandon the move, Eircom will force customers to pay a minimum of EUR20 a time. ComReg asked the telco to reconsider due to the impact on vulnerable customers. However, the change will be implemented on 1 October. Eircom says there are other alternatives to cash payments and the new rule will not affect the household budget scheme or the Post Point retail outlets.
The Sunday Tribune says that Gardai are working on introducing an IT procedure that will alert management when particular records on the Pulse system are accessed inappropriately. The new system was set to be implemented from July but it has not yet happened. Pulse has an audit system that can track which records are created and updated. The implementation of an alert system was recommended following an ombudsman commission report into the alleged leaking of official material from Garda sources to the media.
The Sunday Times reports that online insurance broker 123.ie, which was recently sold to RSA, reported pre-tax profits of EUR4.6 million in the year to March 2010. The company paid dividends of EUR1.4 million, including EUR942,706 to a company controlled by founder Derek Richardson and EUR412,589 to a company controlled by managing director Andrew Collins.
The Sunday Business Post reports that Irish firm Advanced Innovations has increased its profits 20 percent in the 11 months to the end of 2009. The company, which manages the design and manufacture of high tech products, increased turnover 26 percent to almost USD41 million, and has won a number of contracts for this year. The Limerick-based firm employs about 40 staff worldwide.
The same paper reports that there are jobs under threat at Intel's Leixlip plant because it is "outdated". The Fab 10 facility is said to be operating at a low capacity and making chips based on older technology. The closure of the facility, which could take place early next year if it does not get new orders, could put about 500 jobs at risk. Other areas of the Leixlip campus, including Fab 24 and 24.2, are understood to be performing well.
The paper also reports that the managing director of education publisher Folens has called on the Government to invest in technology and teacher training to boost the country's economy. John Cadell has said the Government's 'knowledge economy' plans do not go far enough, and it must concentrate on skill development at both primary and secondary level. He has called on the Government to invest further in technology infrastructure for schools too, and to offer teachers training.
The paper also says a new survey by KPMG has revealed that Irish consumers have no wish to pay for content online. The Consumers and Convergence report found that 88 percent of those surveyed said they would not pay for content, while only 10 percent said they would pay for some content. This compares to a global average of 40 percent of consumers who would pay for some content.
The same paper reports that troubled Anglo Irish Bank is updating its IT infrastructure and has issued a tender for the supply of a new storage network and management software. This includes 12 server machines. The bank is set to be split into an asset management bank and a funding bank under new plans from the Government.
The paper also says that a new report has revealed that Irish mobile broadband speeds are less than half of the speed advertised. The survey from Vilicom, commissioned by Meteor, showed speeds recorded in five Irish cities that were rarely better than 4 Mbps -- between a quarter and a half of advertised speeds. The test was part of a campaign by Meteor to highlight its broadband performance. However, other mobile networks are disputing the results.
The paper also says that Meteor is preparing a 4G network, with plans to introduce speeds of 21 Mbps on its mobile broadband network by Christmas. The network says it will use the standard Long Term Evolution (LTE). Meteor says it aims to extend its customer base to 75 percent of the population by 2011. Owner Eircom has committed EUR1 billion in investment to the network's infrastructure.
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