IN THE PAPERS
In the papers 18 June
18-06-2007
by Jonathan Farrelly
Google under pressure to improve privacy measures | 3G stores seek investors
The Financial Times reports that European privacy regulators are likely to increase pressure on Google to improve its data protection measures after saying that the internet search giant's latest efforts were "not enough". "The main problems we have raised have not all been solved and there is still room for discussion on this," said the office of the German federal commissioner for data protection and freedom of information, which is heading the EU's examination of Google's data policies. EU privacy officials are concerned about Google's practice of keeping information on individuals' internet searches.
The paper also says that Japanese mobile operator NTT DoCoMo is set to make a "sizeable" investment in the booming markets of Vietnam, China or India, reversing a long-held decision to stay away from overseas markets. Masao Nakamura, president of DoCoMo, said the company's strategy was to expand abroad as a way of countering the saturated Japanese mobile phone market. "Our focus is Asia. Overseas revenues will drive our growth in the future," said Nakamura in an interview with the paper.
According to the Wall Street Journal, sales of videogames, including hardware and software, jumped 49 percent in May 2007 from a year earlier, on the back of demand for Nintendo's Wii console and Sony's PSP device. May sales were USD815.5 million, according to market research firm NPD Group. The results were down 2.8 percent from April's USD838.6 million, however, as the industry heads into its summer slowdown.
The paper also says that Yahoo Japan has entered into an agreement with Apple to allow users to download songs from Apple's Japanese iTunes Store when searching for music on Yahoo's Japanese website. The move allows visitors to the music section of Yahoo Japan to have access to the iTunes Store. The companies said they also will develop exclusive content from popular artists.
The Sunday Business Post reports that Dublin software company Changing Worlds is in the process of negotiating new deals with three mobile operators in Europe. The company's software is used by mobile phone companies to personalise the menus on mobile phones. The terms of the deals have not been disclosed yet, but sources indicate that the agreements would generate significant business.
The same paper states that Tony Boyle is looking for an investor in his chain of 3G stores, in a deal that could lead to a mobile phone operator buying half the business. Boyle has appointed IBI Corporate Finance to find a strategic investor. The 3G retail operation had sales of about EUR21 million last year, but is loss making, as it incurs the cost of opening new stores.
The same paper says that Eircom stands to make about EUR35 million in extra revenues arising from the increase in charges announced last week. The company said average customer bills were likely to rise by about 3.6 percent as a result of the increases in line rental and voice call costs when the increase takes effect at the end of next month.
The paper also says that a State-backed venture capital fund has emerged as a major investor in the company that took over Smart Telecom's failed phone and broadband business following its spectacular collapse last year. Funds from State business development agency Enterprise Ireland, as well as Bank of Ireland and a number of private investors, will be used to contribute approximately EUR3 million towards Smart Yuroe Broadband (SYB), a company set up by Brendan Murtagh, who had been Smart Telecom's biggest shareholder with a stake of around 20 percent.
The same paper reports that TextHelp Systems, a Belfast firm whose technology helps people with learning difficulties, had sales of STG1.5 million last year as it expanded into the US. The firm made a pre-tax profit of just over STG406,000 in the financial year to the end of September, despite hiring more staff and investing heavily in research and development. In the previous year, TextHelp had sales of STG4.2 million and made a profit of almost STG780,000.
The paper also reports that Norkom, the anti-fraud software firm that floated a year ago, expects to have revenue of at least EUR35 million this year, up from EUR25 million last year. The firm last week reported its first full-year results as a quoted firm, which showed a 38 percent rise in revenue. Paul Kerley, founder and chief executive, said that the firm would hire 75 more staff this year -- including staff for a new office in Sydney -- bringing its total staff numbers to more than 300.
The same paper reveals that Saongroup.com, the online recruitment company owned by Denis O'Brien and Leslie Buckley, has further expanded its business by entering the market in the Middle East. The company launched Recruitgulf.com last week, advertising vacancies in the Gulf, to be based in Dubai. Ken Fitzpatrick, chief executive of Saongroup.com, said the company tended to focus on emerging markets because of their growth, both economically and in terms of internet penetration.
The Sunday Tribune says that Google is expected to announce landmark deals with European television broadcasters to make content available on European versions of its video-sharing service, YouTube, this week, but so far RTE and TV3 have been left out. YouTube has signed with the BBC and is expected to announce deals with major French television stations on 19 June, according to reports in the French media.
The same paper reports that calls for the creation of a dedicated 'digital minister' have fallen on deaf ears. The programme for government did not satisfy the wishes of the Digital Media Forum (DMF), which hoped the new government would appoint a single individual with responsibility for championing information technology and creative digital industries. The DMF said its model was the aftermath of the 2002 general election, when disparate transport agencies were consolidated under a minister for transport.
The Sunday Independent states that Barry Maloney's Balderton Capital has wasted no time in sealing its first deal, by buying out minority shareholders in videogame company Codemasters. It is widely speculated that Maloney will float the EUR350 million publisher of the 'Lord of the Rings' videogames in the stockmarket in the next 18 months. Goldman Sachs has invested nearly EUR75 million in Codemasters as part of the deal.
Finally, the Sunday Times reports that Carphone Warehouse is in talks to offer a mobile music service on most of the handsets it sells in its stores this Christmas. The mobile retailer is seeking an exclusive deal with Omnifone -- the British firm that has secured widespread backing for its Music Station service -- which will offer unlimited downloads for STG1.99 a week.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 