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UPDATED: Telstra Says “Sorry” For Third Big Outage In 30 Days

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Telstra who took a week to fix BigPond broadband problems over Xmas then had two major mobile outages back to back, is again having to manage a national closedown of their network, which they constantly claim is the “Most reliable in Australia”.

UPDATE: Telstra chief executive Andy Penn has been forced to hand out another day of free data and mobile services after another major outage that affected more than eight million customers.

Speaking at the company’s headquarters in Melbourne on Friday morning, Mr Penn apologised and blamed a system error for the outage. 

“At about 6pm last night a lot of our customers were disconnected due to an issue,” he said. “It was the attempt to reconnect customers at the same time that caused the congestion.”

Mr Penn said he was bringing international experts to Australia to conduct a deep review of Telstra’s network and services.

“I’m sincerely sorry to all of our customers,” he said. “At a personal level I’m deeply disappointed and I want to apologise to all of my customers.
“It affected around 50 per cent of the calls and we have about [16.7 million] customers on our network so can roughly approximate around 8 million customers across that time.”

Users were unable to make calls or access the internet from their phones for around 4 hours during the evening commute period on Thursday night.
Mr Penn said the domestic mobile services were caused by a problem in Telstra’s international undersea cable.





The outage that hit at about 6.00 pm as millions of people were heading home meant that navigation systems were lost, consumers were unable to make calls and millions were unable to get access to the Internet using a Telstra dongle.

I was in Melbourne doing a presentation when the dongle on my PC failed.

Later as I drove back to Melbourne people were pulling over to the side of the road as they tried to work out why their mobile network had crashed. 

This is the third time over 30 days that Telstra has had to respond to a major network crash.




A Telstra spokesperson said, “We are aware of an issue affecting some of our mobile customers who are having difficulty making and receiving calls, and using data.

“We are looking into the cause of this issue and apologise for the inconvenience this is causing. We are doing everything we can to restore services as soon as possible.”

It’s understood around half the company’s mobile network was affected.

The outage that lasted over two hours in Melbourne saw tens of thousands log onto social media to complain as soon as the network came back up. 

Telstra blamed their last big outage on an “embarrassing human error” after a core node was knocked offline.

The telco, which has about 16.7 million mobile users, later offered a ‘free data day’ the following Sunday as an apology for the interruptions.

When the last outage hit Teresa Corbin, chief executive of the Australian Communications Consumer Action Network, said given the size of Telstra’s network, a large number of customers would have been affected.

“A short outage may not be catastrophic but it has a significant impact on business,” she said.

She added that the scale of disruption not only highlighted how important connectivity had become to users, but also the need to look at telecommunications as an essential service.

“There’s a need to consider whether we need a national roaming strategy that provides basic connectivity in an emergency,” she said.

COMMENT:Has Kogan bought A “Toxic” Lemon From Dick Smith

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A few days after we exclusively revealed that Ruslan Kogan had stuck his hand up to buy the ailing Dick Smith online operation, which has seen a massive slump in revenue since its parent Company was placed under administration, a senior Vice President of a leading brand said “there is no way that we will deal with Kogan”.

Now it’s official, Kogan has not only got the Dick Smith and Move names along with their related web sites he has also got access to the trading records along with the name and addresses of over one million Dick Smith customers who face being bombarded with Kogan or rather Dick Smith deals.   

This deal was not about the Dick Smith web site but all about the data mining potential of the one million plus name that Dick Smith have on their database.

The real risk is that he has overpaid for a database that from day one could see tens hit the unsubscribe button in protest at treatment that Dick Smith dished out to their customers.

Right now the Dick Smith name is “Toxic” according to marketing experts after thousands of their customers were burnt by a Company who took money from consumers and then failed to deliver as promised. 

Now Kogan, who really wants the brand to add a new layer of credibility to his operation, months out before an attempted float is going to have to deal with a lot of baggage associated with the Dick Smith brand, this includes a Senate Inquiry, a possible ASIC investigation and an ongoing media campaign.

Online forums are riddled with people who have had problems buying a Kogan product, this could have a major impact when people research information on the Kogan operation ahead of any float. 

By acquiring Dick Smith Kogan is attempting to buy legitimacy. 

He want’s people to think that he is making it in life and that by buying the Dick Smith and the Move online brands that he is capable of growing revenues and profits.

When Dick Smith online was run by Dick Smith customers had hundreds of stores where consumers could easily pick up a product, in fact more than 28% of Dick Smith customers collected their online orders from a local store. 

All that disappears with Kogan.

What he is left with a click and deliver operation Vs a click and collect operation similar to what the likes of JB Hi Fi and Harvey Norman are able to deliver for customers.

From day one the value of the Dick Smith online operation is being eroded. Only 31% of Dick Smith customers have ever bought 3 products or more from the mass retailer.

Barry Urquart, managing director of retail specialists, Marketing Focus claims that it is not until a customer has purchased three products or more that they “actually become a real online customer”.
 
He said “72% of people shopping online still go into a store to complete the purchase. They are going to have to learn those patterns and routines,” Urquhart said.
 
Urquart, claims that Kogan has to be wary of fall-out from consumer creditors expecting him to honour their gift cards.

“If they are going to communicate it will be emotional, confronting and affronting,” Urquhart said.

“It has potential for huge brand damage. they are not buying the goodwill of Dick Smith, there is none.

Urquart told ChannelNews that the original Dick Smith made his name selling cheap made in Taiwan “made in Asia” products that consumers actually wanted. 

Urquart also told Mumbrella that “Because it has been extended for such a long period it is a toxic brand and you have Dick Smith the individual and then Dick Smith the brand. Dick Smith the individual they have no control over what he says and so it is very dangerous.

 “(I want) to save the legacy of this great Australian brand by transitioning the business to an online-only model, and providing Australians accessibility and affordability for the most in-demand electronics products,” Kogan said earlier today. 

Kogan who takes control of the business in July at the start of the 2017 financial year has not taken on the liabilities.

He is going to have to take responsibility for dealing with distributors and vendors in an effort to list the same brands that Dick Smith listed. 

According to sources 34% of the products listed on the Dick Smith web site were Dick Smith house brand products sourced by Dick Smith, these brands could be replaced with Kogan house brand products in some categories.
 
At the end of the day this is a high risk investment and one that investors should keep well clear of as it will take at least 12-18 months for any observer to get a clear picture of the value of the acquisition.
 
Let’s remember Dick Smith management kept telling us that everything was honky dory, sales were growing right up until the door was slammed in their faces and they were all sacked as the Company sank to a mire of debt, lies and overpriced stock. 

Samsung Set To Follow Apple With Cheap Smartphone Rental Plan, Carriers Set To Be Hit

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In what could be a major blow to Australian carriers Samsung is looking take a leaf out of Apple’s book and lease smartphones direct to consumers.

According to some analysts the move that could see sales of a handset switch to mass retailers.  

Insiders claim that Samsung is planning to launch a program for leasing its Galaxy phones in the U.S. market initially with a roll out to other markets including Australia in 2016. 

The planned program is similar to the one Apple announced just weeks ago, according to an industry executive with knowledge of Samsung’s plans.

“It’s a no brainer why they wouldn’t do this,” the source said.

The move could impact Telstra, Optus and Vodafone who rely on subsidised handsets to drive revenue.

Apple announced its leasing plan – called the iPhone Upgrade Program – at its September innovation event, where it also revealed the iPhone 6s, 6s Plus, the iPad Pro and an updated Apple TV. 

The upgrade program encourages consumers to buy iPhones directly from the Apple Store instead of going through their traditional carrier. Starting at US$32 a month, users sign a two-year financing agreement that allows them to get new iPhones every year along with Apple Care. Apple’s plan has been praised for providing better value to the consumer than anything sold by carriers in Australia.

Samsung executives in Australia have already been called in by carriers to explain the move and the potential impact on their revenues. 

For years, smartphone hardware was subsidized by carriers such as Telstra and Optus who locked customers into two-year contracts. 

Now, the carriers have been moving away from that, forcing many customers to buy their own hardware. The lack of subsidies threatens sales for high-end phones like the Apple’s iPhone and Samsung’s Galaxy series.

As a result, Apple announced its own program for making its pricey hardware more accessible to a wider swath of the population. Now, it looks like Samsung wants to make sure its devices are also within reach for consumers.

Samsung’s latest phones – Galaxy S6 Edge Plus and the Galaxy Note 5 – were announced in August. As iPhones sales have continued to soar, Galaxy smartphone sales have been disappointing for Samsung.

AMD Intel Sales Crash

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The Semiconductor Industry Association (SIA) released its figures for October but while the overall sector is pretty healthy with sales topping $20 billion, the month was bad for both Intel and AMD.

Analysing the figures, Handelsbanken SE said that Intel and AMD processor sales “plunged in October”. According to the analysts there, notebook PC chipset shortages hit Intel, while average selling prices fell from $110 to the mid $80 mark. That, said the group, “indicated that Intel had trouble delivering notebook PC processors in the month of October”.

It said that strong Chinese PC production in October had probably drawn down existing stocks of chips, but as it pointed out, “October is a heck of a time to have a chipset shortage”.

The figures show that microprocessor sales for October were $3,481,000,000 – that compares rather unfavourably to September figures of $6,301,000,000 Intel releases its mid quarter analysis next week, so we should be able to take the temperature a little better then.

Sales of DRAM chips fell in October too, that’s because the whole memory market appears to be still subject to intense pricing pressure.

Contrariwise, as Lewis Carroll might put, sales of flash memory soared, with NAND flash being particularly high. Sales of NAND rose by 95 per cent year on year, and Handelsbanken SE reckons that at some time during 2006, flash memory will surpass the DRAM market in size. NOR flash sales fell in October.

Big Retailers Moving To Magento eCommerce Platform

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Australian retailers are adopting a new generation of online platform technology faster than Countries like Germany, the UK and the USA according to the executives at Magento a subsidiary eBay Company.

At a conference in Sydney yesterday Companies like Harvey Norman and Dick Smith were praised with Harvey Norman singled out for the introduction of new cross platform technology that lets consumers order from either a tablet or smartphone.

It was also revealed that Harvey Norman is now fulfilling customer orders direct from a local Harvey Norman store a move that allows franchisees to benefit from a local sale.

According to Magento executives Australia is one of their fastest growing markets with Companies like Woolworths, Dick Smith, Harvey Norman and Bing Lee investing in Magento technology in an effort to attract local online sales.

Also running on the Magento platform is DoorBusters an online operation that is owned by Woolworths.

Roy Rubin the CEO of Magento said that Australian retailers who are moving to new online platform technology after the Click Frenzy debacle late last year will benefit from new systems that allow for the integration of smartphone and tablet ordering that has changed consumer behaviour. 

He said “Consumer behaviour is changing content is king and the more content there is the better experience a retailer is able to deliver. 
Consumers are now using a multitude of devices to go online to shop and it is critical that retailers are able to deliver a good experience”.

Magento executives acknowledged that moving a website from one platform to another, particularly a large site, such as Dick Smith which had resided on the Woolworth online infrastructure, is no mean feat and it can be a very daunting undertaking, however once it is completed retailers reap the benefits of improved sales and happier customers.

Rubin claims that both big and small retailers are now adopting the Magento platform over the IBM Websphere offering which both David Jones and Myer are currently moving to, he said that Magento has 29% of the ecommerce platform market.

One retail attendee said “After working on a Websphere roll out and then a Magento roll out you realise that there is a big difference. Websphere is expensive and there are layers of costs every time you ask a question or scope an issue you get charged” they said.

Magento who witnessed 80% growth in 2012 see Australia as a key market. A recent Forrester report reveals that retailers who move to a Magento platform get a 159% return on investment within five to eight months.

Forrester researchers said that a merchant can experiences an average revenue uplift of 17.3% by rolling out new eCommerce technology.

One retailer who moved to the Magento patform claimed that up to 80% of their revenue uplift was due to the Magento platform.

They said that this achieved because they were able to drive by more frequent marketing activities and sales events.

Retail executives attending the Sydney Live event said that a Magento platform delivered them the scalability and stability to meet traffic volume demand that was not there when they took part in last years Clik Frenzy event.

Several retailers said that prior to the Clik Frenzy debacle when most retailer web sites crashed  they did not realise the importance of having a platform that scaled to meet business demand. “We thought we were investing in a web site that delivered everything what we got was a facade that crashed when we needed to scale up to meet demand”. 

Spending Rises Consumers Confident Say ABS

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Spending in Australia has risen 1% which is twice as much as economists estimated according to the Australian Bureau of Statistics.

A survey by Bloomberg of 20 economists predicted a rise of 0.5%.

Australia was one of the few major economies, to expand in the first quarter following hand outs by the Federal Government. Also helping is the lowest interest rates in 49 years. Retailers like David Jones Ltd. and JB Hi-Fi Ltd, have both raised their profit forecasts in recent weeks.

According to Bloomberg “Interest-rate cuts have worked their magic, together with the stimulus applied by the government,” Craig James, chief equities economist at Commonwealth Bank of Australia in Sydney, said ahead of the report. “The lift in consumer confidence is translating into greater activity at cash registers, and tax cuts will give consumers more reason to visit shopping malls.”

A recent Westpac consumer sentiment report said that consumer confidence jumped by the most in 22 years in June and business sentiment in May had the biggest gain since 2001.

Sales at department stores advanced 5.5 percent from the previous month and spending on clothing gained 2.9 percent, today’s report showed. Sales at restaurants climbed 1.4 percent.

Toshiba and Sony Fail To Agree

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Struggling electronics company Sony have failed to cut a deal with Toshiba in negotiations over the format for next generation DVD’s. Sony who lost the beta Vs VHS battle could face the same problems again.Japanese electronic maker Toshiba has given up on negotiations with a rival camp led by Sony to agree on a unified format for next-generation DVDs, a media report said late Tuesday.
Toshiba leads a group of companies that support the HD DVD format and has been in talks with a Sony-led bloc, which backs the Blu-ray format.
“It is regrettable but unavoidable that two formats will remain [on the market],” Kyodo News agency quoted an unnamed Toshiba official as saying.
Officials were unavailable for immediate comment late Tuesday.
The two blocs developed their DVD formats separately, but growing concern about confusion among consumers over the different formats prompted Sony and Toshiba to start negotiations on a unified format earlier this year.
Kyodo said, however, that two rival formats were certain to continue as Toshiba’s move follows a decision by Matsushita Electric Industrial Co. from the Sony camp to also abandon the negotiations.
Sony’s Blu-ray disks have a more sophisticated format and play back 25 GB of data compared with HD DVD’s 15, but are more expensive to produce.
Both sides are already developing products that feature the respective DVD formats. Toshiba plans to roll out HD DVD players by the end of this year, while Sony’s popular game console PlayStation 3, which will play Blu-ray disks, is due out in spring 2006.

More Data Being Downloaded

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With more than 1.8 million Australians connected to broadband and more than 2 million more accessing the web from work ISP’s are reporting bigger data downloads.

Australians who are connected to the Net are downloading more and more data, the latest report from the Australian Bureau of Statistics shows.

 Stats’ Internet Activity Report for the quarter to March 31 estimates total data downloaded by Australia’s 5.98 million subscribers during the quarter was a record 14.12 billion megabytes. This was up 28 percent on the September 2004 quarter total of 11 billion megabytes – though well below the 72pc growth rate experienced during the September 2004 quarter. It’s also more than four times the 3 billion megs downloaded in the March 2003 quarter (see chart).

 It isn’t just a matter of more subscribers. The figures show individual users are downloading more – an average of 2435MB per subscriber in the latest quarter, compared with 2057MB in the September quarter. That’s an 18pc jump in the average amount each subscriber downloads.Household subscribers, representing 86pc of all subscribers, downloaded a total of 10.56 billion megabytes, or 75pc of all data downloaded. Business and government subscribers downloaded a total of 3.56 billion megabytes – a 39 percent increase on September.

The growth of broadband subscriber numbers is mainly responsible for the surge in downloading, it seems. “Non dial-up” users make up only 30 pc of the total subscriber numbers, but they were responsible for 87 percent of the total data downloads.

 

CE & IT Values Are Up But TV Values Are In Decline Say GFK

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As the going gets tough vendors and retailers are looking to the bottom line as opposed to getting a sale for the sake of a sale says David Ackery the General Manager orf Electrical at Harvey Norman and if the latest research from GfK is anythig to go by some vendors are making big returns with the product tracking Company reporting record growth in several key categories.

As the going gets tough vendors and retailers are looking to the bottom line as opposed to getting a sale for the sake of a sale says David Ackery the General Manager orf Electrical at Harvey Norman and if the latest research from GfK is anythig to go by some vendors are making big returns with the product tracking Company reporting record growth in several key categories.
 
GFK have reported  that the overall “value” growth in the consumer electronics market is 3.3 per cent for February 2009 versus the same period last year and YTD growth of 5.9 per cent. In the appliance market maket fans and air conditioning retailers benefitted from the recent bout of hot weather with GFK reporting that the sector had  combined growth of 83 per cent according to GfK Retail and Technology Strategic Planning Manager, Gwenno Hopkin.

GFK have also said that the  the home office segment grew by 14.6 per cent, driven by notebook growth of 26 per cent, storage growth of 31%  and networking growth 53 per cent. IT Peripherals had growth of 22 per cent with Ihe Ink Cartridge category up by 10 per cent.

In the digital still camera market  year on year value growth has been14 per cent however flat panel TV have declined year on year by 4.7% with several vendors claiming that this has been caused by a shortage of display panels. While set-top boxes grew by 21.5 per cent DVD players declined by 10%.