IN THE PAPERS
In the papers 2 July
02-07-2007
by Jonathan Farrelly
Bid speculation mounts for Virgin Media | US consumers snap up Apple's iPhone
The Irish Examiner reports that acquisition speculation involving Virgin Media returned this weekend after it was reported the cable company could be about to get an USD8 billion (EUR5.9 billion) approach from private equity firm Carlyle. The move is expected to trigger an auction of Virgin Media, which last year completed a merger with NTL Telewest.
The Wall Street Journal writes that AT&T is working to sort out a problem preventing some 2 percent of buyers of Apple's eagerly-awaited iPhone from activating the handset, according to a person familiar with the situation. Phone activation also activates the iPhone's other features, such as playing music or movies and surfing the net. "There are a small percentage of iPhone customers who have had a less-than-perfect activation experience," Apple spokeswoman Natalie Kerris said. "We're working hard to resolve any issues quickly."
In more news of Apple, Universal Music has said it that it isn't renewing a long-term contract to sell digital-music downloads through Apple's iTunes Store, according to a person familiar with the situation. Instead, the Wall Street Journal writes, Universal hopes to go to a short-term sales agreement rather than a contract that lasted more than a year. An Apple spokeswoman said the company doesn't comment on "rumors and speculation."
Still with news of Apple, the Financial Times reports that AT&T has admitted to "dwindling" supplies of iPhone, which went on sale in the US on 29 June. "Virtually all of our stores sold out of the iPhone last night," AT&T spokesman Mark Siegel said on 30 June, refusing to disclose how many units had been sold.
The Financial Times reports that Canadian telecoms group BCE has agreed to a CSD34.8 billion (USD32.6 billion) cash buyout by a group that includes the Ontario Teachers Pension Plan and two US private-equity groups, Providence Equity and Madison Dearborn. If it goes through the buyers would also assume CSD16.9 billion (USD15.9 billion) in debt.
The Sunday Business Post reports that three years after starting up its business again from scratch, Irish software firm Xiam Technologies has recently signed a new deal with US company Qualcomm. Colm Healy, chief executive of Xiam, said that, in the last six months, it had signed five new deals with operators in Western Europe and North America. Xiam is also finalising three new deals with Asian operators.
The same paper also divulges that PolarLake, the software firm that was spun out of Xiam, has made considerable progress since it became an independent company. The firm raised about EUR3.2 million in initial funding before completing a EUR6 million funding deal in 2005. PolarLake software is used by large companies and government departments to integrate disparate technology systems and has offices in Ireland, Britain and the US.
The same paper also reveals that Dublin-based company Arantech has signed a six-figure deal with a Central American mobile phone operator. As yet, further details of the deal are unavailable, according to a spokeswoman for Arantech. The new deal marks the company's first agreement with a Central American operator. The other party is one of the biggest operator groups in Central America, according to the Arantech spokeswoman. Arantech was set up 1999 and has its headquarters in Dublin. It employs about 100 staff across its offices, with the majority based in Ireland. It also has sales and support staff in the US, Britain, Japan, Spain and Australia.
The same paper also acknowledges that Apple's iPhone has been described as "a step backwards" by one Irish mobile operator, as speculation intensifies as to which European network will be appointed to carry it. "It would be taking a step backwards for us to take on a phone like that," said Graeme Slattery, head of music with Three Ireland. "It's not suitable at all for the European market in the way it's currently configured." Slattery criticised the iPhone's lack of download speed, music compatibility and operator software and said the sales model being used in the US with AT&T would have "little chance" of succeeding in an Irish or European market.
The Sunday Times says that Wexford businessman Bert Allen is one of a number of investors in a new EUR2 million fundraising for mobile phone technology firm Qtelmedia. Allen, who owns one of the country's largest meat processing companies, Slanely Meats, made his EUR135,000 investment via an Isle of Man entity.
The same paper also writes that Martin Naughton, the founder of Glen Dimplex, and Lochlann Quinn, the former AIB chairman, are part of a consortium of lenders who backed the EUR65 million refinancing of Brendan Murtagh's Smart Telecom, which was announced last month. Naughton and Quinn have rolled over EUR8.4 million of existing Smart Telecom loan notes into the new five-year financing package put together by Smart YuRoE Broadband. The pair could have sought repayment of the existing loan notes but have extended the credit to the reformed entity.
The Sunday Tribune reports that Google is facing a landmark defamation suit in Britain that could have repercussions for Ireland's attractiveness as a destination for online businesses. The search giant has been sued by London businessman Brian Retkin, who claims the US company is responsible for providing links to inaccurate or malicious information about him and his business posted anonymously on the internet. Legal observers and Google's Dublin based legal team are watching the case unfold as defamation laws in the Republic are significantly less up to date than English laws on online libel.
The same paper also divulges that mobile operators are giving birth to more subscribers than humans are having babies. Statistics from telecommunications analysis firm The Mobile Word show that over 1,000 customers signed up to a mobile operator every minute in the first three months of 2007. The global birth rate was around 144 per minute.
And finally, the Sunday Independent tells that Second Life, a computer game where you navigate a virtual world and can interact and chat with other people, is expected to achieve a GDP of EUR500 million by the end of the year. There are 4.8 million users, and with at least 250,000 regular users paying USD9.99 (EUR7.50) a month to use it regularly, it's not a bad little earner for owner and creator, US firm Linden Lab.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 