ROUNDUPS
In the papers 10 February
10-02-2003
by John Cradden
ComReg set to tell consumers how to get more value from their phones | Sun Microsystems due to cut prices on server range
The Irish Times reports that there will be more competition on telecom tariffs in the future as fixed line operators fight for business with mobile, satellite and cable companies, according to a new study. The study by KBC Asset Management says Irish call charges are already low by international standards but are likely to drop still further. The low differentials between fixed line and mobile means that there is increasing competition among fixed line companies on broadband provision, which in turn will lead to downward pressure on prices for broadband services.
The Irish Independent reports that a new EUR65 million "technical ring road" is to be built around the country, encompassing 19 cities and towns. Get the full story as reported on ENN.
The same paper reports that the communications industry regulator, ComReg, is to release a free leaflet on how to get the best value from mobile and landline phones. The leaflet, which advises people to check their landline usage before signing up for a particular company and provides information on how to change service providers, is to be distributed to libraries and citizens' advice bureaux. The leaflet also gives a list of useful service providers with Internet and contact phone numbers.
The Financial Times reports that Tibco Software wants the Reuters Group to reduce its 43 percent stake in the company and is willing to use part of its USD640 million cash reserves to make a deal. Vivek Ranadive, chief executive of US-based Tibco, said the stake should be cut significantly to increase Tibco's independence.
The same paper reports that Sun Microsystems will announce on Monday that it is to cut prices for mid-range and high-end servers by as much as 35 percent, a move the troubled computer maker hopes will enable it to remain competitive with rivals such as IBM and Hewlett-Packard. Sun will also make a series of product announcements, including the release of its first blade servers -- thin computers increasingly popular with corporate customers because they generate less heat and use less space.
The same paper reports that Hong Kong phone company Pacific Century Cyberworks (PCCW) will confirm reports it will revive a multi-billion-dollar bid for Cable & Wireless. The move followed news that PCCW and Texas Pacific Group plan to send a letter this week to the Cable and Wireless board, possibly as soon as Monday, asking the UK telecommunications company to open discussions about a possible takeover.
The Wall Street Journal reports that major US retailers have voluntarily expanded the number of states in which they collect sales tax from Web customers. The move is said to represent another step in a movement by bricks-and-mortar retailers to persuade the US government to impose sales tax on companies such as Amazon.com that operate only on the Web.
The same paper reports that the US's second largest telephone company, SBC Communications, has entered the battleground for control of Hughes, the largest satellite broadcaster in the US. The move will be bad news for Rupert Murdoch's smaller News Corp., which has struggled for three years to grab control of DirecTV, Hughes's flagship broadcasting unit.
The Sunday Times reports that Euronet Worldwide, a Nasdaq-quoted electronics payments company, is considering a takeover approach for Alphyra. The company said it is willing to bid if the "conflicted position" of the management team trying to buy the Alphyra business "can be sorted out." Michael Brown, chairman and chief executive of Euronet Worldwide, said he was interested in acquiring the electronic payments business, although the comments were made before MBO vehicle Rendina upped its offer by EUR8 million on Friday.
The paper also reports that investors financing the buyout of Riverdeep have been given a EUR30 million insurance policy against figures contained in the offer document. Alchemy, the British venture capitalist, and MSD, a private company controlled by Michael Dell, were given the insurance policy before agreeing to fund the privatisation. MSD is financing the buyout to the tune of EUR20 million and Alchemy has contributed EUR87.4 million.
Also carrying a report on Riverdeep, the Sunday Tribune writes that the Irish e-learning company agreed to pay executive director James Levy a USD2 million signing bonus in July 2001, according to leaked documents. That bonus has been cut by USD500,000 and Levy has also agreed to give up 500,000 options as part of renegotiations.
The paper also reports that soon-to-be-introduced mobile number portability, which will allow mobile subscribers to retain phone numbers when changing networks, will cost operators about EUR40 million. The paper cites industry estimates in calculating this sum.
The Sunday Business Post reports that British supermarket chain Tesco is to cut over 65 jobs in its Irish IT operations. In what the company is calling "part of its global IT restructuring," 16 permanent jobs and over 50 contract IT jobs will be phased out over the coming months, the newspaper says.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 