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Oonagh Reidy

Telstra Launch New SMB Broadband

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Telco is to unveil a new broadband solution later today. The “new national broadband solution” called Telstra Digital Business is designed for small businesses. 

The solution will be an “affordable and easy to use communication system” and will give SMBs the same fast internet enjoyed by big business, Telstra claims.

This latest bid encouraging business to make the “digital switch” comes in light of the NBN test phase, in which the telco is to take part.

Further details will be available later this morning after the announcement by Telstra CEO, David Thodey, and Federal Minister for Small Business, Nick Sherry.

It will be available for one million small businesses currently in Australia.

This news also comes as Telstra has been given a 90-day extension of its deadline to submit a plan to separate its retail and wholesale arms just last week, as it examines the fine print of the $11bn deal to migrate to the National Broadband Network .

However, reports this morning indicate David Thodey and NBN Chief, Mike Quigley, have held increasingly in-depth talks with their legal teams over the final terms of the deal, with an announcement before the end of May on the cards.

Are Big Brands Always Better?

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Last week, I acquired an iRiver Mp3 and was somewhat sceptical to say the least.Last week, I acquired an iRiver Mp3 and was somewhat sceptical to say the least.

Having never heard of the device, let alone the brand, I wondered what I was letting myself in for.  

Although far from a die-hard Apple fan, I have owned a couple of their iPod models, back when the 80GB version was first out in 2005.

When I say a couple, I mean Apple replaced my original purchase when it broke six months into the year-long warranty.

A lousy battery was the problem there, although countless friends of mine also had similar experiences.            ; 

When my 8GB broke again, which at the time cost me more than $400, just outside the warranty I swore never again would I give Steve Jobs’ company a penny of my hard earned cash.                     ;   

The reason I bought it? iPods were seen as the coolest thing in town five years ago so as a teenager I was dying to hop on the ibandwagon.  

So how long it would be before it be before my iRiver suddenly decided to go kaput or the headphones wiring snap off.  

However, from the moment I turned it on, I was very pleasantly surprised.   

The sound was crisp and clear – a far cry from the Sony Walkman Mp3 I previously owned – and could never remember my iPod being so easy to use as this little wonder-device.
 

 

So why do we buy pricey brands, is it reputation, prestige, innovation?

I recently read a blog in the New York Times which flouted the idea that buying technology is essentially a subscription, in other words that consumers are subscribing to the notion that they will inevitably have to replace the model in a matter of years. 

But is it more than that?

Tech consumers are in my view subscribing to a way of life, a lifestyle, a belief in better technology and the benefits it (supposedly) brings.

But unfortunately these products don’t always live up. Where do they turn to then?

I’m turning to my trusty iRiver and vowing to look before I leap before buying big ever again. 

Calls To Dump Ballmer From Microsoft

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As he spoke about losses to piracy in China, rumour has it Ballmer could be losing something of his own. His job.


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There are whispers in the US calling for Microsoft to drop its chief in command, Steve Ballmer, and give ” give someone else a chance.”

That’s according to one hedge fund manager David Einhorn, from Greenlig Capital fund, who told investors his continued presence at the helm was impacting negatively on share prices. Ballmer has held the top spot for 11 years overtaking from Bill Gates in 2000.

“His continued presence is the biggest overhang on Microsoft’s stock,” Einhorn told the Ira Sohn conference in New York conference Wednesday.

The hedge fund manger owns more than 9 million shares in the software giant, is known for his scathing attacks on struggling companies and infamously unleashed his wrath at Lehman Brothers just before its collapse. Microsoft shares jumped 2 percent to $24.67 following the speech.

The Windows maker who recently announced an update to its W7 OS called Mango has seen its fortunes fade in recent years and its earnings surpassed by iOS rival Apple for the first time in history.

Ballmer also recently coughed up $8.5 billion for VoIP giant Skype, despite its relatively limited profitability to date, which provoked shock within many investors and analyst alike.

Last month, Steve Jobs’ giant Apple trounced its rival for the first time ever since 1991, announcing $24.7bn revenue with a net profit of $6bn compared to Microsoft Q3 revenue of $16.43bn.

This was on the back of huge iPad and iPhones sales, something which its Windows OS is looking to replicate, with a joint venture with European phone maker Nokia.

 

Its revenue for Windows 7 OS also recently fell 4 per cent, as consumers turn their backs on desktops PC’s.

1980’s star child IBM also recently managed to recover its fortunes and surpass its PC rival in terms of value, for the first time in over 15 years.

However, a Reuters reports later suggested Microsoft directors still supported their boss, who has worked at the company since 1980, citing company sources.

“Bill Gates is a ruthless capitalist. If he wanted to, he’d walk Ballmer to the door himself,” said one fund manager with Microsoft stock.

Microsoft’s head was in China this week, speaking about the losses his company was making due to piracy software operators.

Blackberry Bows To Internet Porn Pressure

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Enough is enough: RIM given two weeks to filter internet porn – or face complete blackout – by the Indonesian government.
The Smartphone maker, RIM, has announced it will release filters preventing access to adult material which the government has rendered morally salacious material for the predominantly Muslim population.

“Research In Motion confirms that it shares minister Tifatul Sembiring’s sense of urgency on this matter and it is fully committed to working with Indonesia’s carriers to put in place a prompt, compliant filtering solution for BlackBerry subscribers in Indonesia as soon as possible,” the company said in a statement of intent released yesterday.

The order is part of a wider state censorship drive on porn, which began with the passing of the 2008 anti-porn bill by conservative Islamic ruling party.

The choice given to RIM and other telcos which was basically do it or die, with threat of total Internet cut off for the 2 million Blackberry users looming fast over the Canadian based phone maker.

“We have repeatedly asked them to do it and we have given them some time,” Indonesian Communications and Information Technology Minister Tifatul Sembiring was quoted as saying in the Jakarta Globe on Saturday last.

“If they keep delaying, we will shut down their operation here because they fail to comply with our laws.”

“We’re not negotiating, if RIM does not comply with the rules and laws of Indonesia, enough is enough!”

This marks the latest attempt by government to censor internet content.

Earlier last year, the Australian government proposed banning of images of female genital and other sexual acts.  

Woolworths Masters DIY To Flog Appliances

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Retail giant goes headlong into new home stores venture with US giant Lowe’s, could rival Harvey Norman.


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The new Masters stores, which will pose as DIY stores will also sell white good appliances, a spokesperson confirmed to Channel News.

“We are hoping to provide a new offering in the home improvement sector, selling large items as well as goods for customers homes,” he added.

The new retail joint venture between Woolworths and Lowe’s is looking to get a share of the lucrative DIY sector, worth $42 billion annually, and say the “category is ripe for a new name.’ 

US based DIY specialists Lowe’s, sell brands like Samsung, Whirlpool and Bosch, and go by the slogan “lets build something together.”

The Masters stores will offer more than 35,000 DIY goods include lighting, paint, kitchens and outdoor furniture and could hit Harvey Norman in particular, who are the household name in appliances and kitchen categories  as well as other players like The Good Guys.

It will also be the first time such a diverse group of categories will be sold in a single location, it said in a statement today.

The Masters first store will open at Braybrook, Melbourne later this year,  with a 13,500 sq-metre outlet “with a separate trade-only area dedicated to the building and professional industries.” 

Other stores will soon follow in other parts of Victoria and Queensland and are looking to blitz the nation, aiming for locations in 150 sites within five years.
 

 

With just a few months to go until opening, we’re putting the finishing touches to our plans and we are confident that our  customers will be as excited as we are when they visit for the first time,” said Masters CEO Don Stallings.

And its not just a run of the mill DIY shop – “we are offering products, value and service that will really excite our customers about improving their home and quality of living,” added.

And considering all the furore about online e-tailing of late, the new venture is looking to add to the customer retail experience, with highly trained staff and air conditioned, comfortable stores, which they are hoping will differentiate it from rivals.

Motorola DEFY Goes To Optus

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Motorola DEFY available on Optus from today. The new model which includes MOTOBLUR is a new addition to Optus $49 plan on a 24 month contract.


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The smartphone was first released in November last on Telstra’a  Next G Network with 1GB of data for the same price.  

Running Android 2.1 on its 3.7 inch high re touch screen, the smartphone includes a 5.0 megapixel camera that has a resolution of 2592 x 1942 pixels and provides auto focus, as well as image stabilisation and geo-tagging, in addition to an LED flash.

DEFY can act as a 3G mobile hotspot to connect up to five WiFi enabled devices, so you turn practically anywhere into a hive of productivity.

It also comes with a MP4/MP3 music and video player and a stereo FM radio that has RDS functionality. The Motodefy has an internal memory capacity of 2 GB which can be expanded to 32 GB with a slim SD card.

The new device which is currently in the top ten of most desired phones in the UK, according to research, is designed for users that expose their handset to high levels of usage so can withstand pressure and is water proof, dust and scratch resistant.

It comes in either black or white.  

Read our review here

 

The DEFY will also feature the latest version of Motorola’s MOTOBLUR, which makes it even easier to manage all emails, messages and social updates in one place, with the additions of filtering, resizeable widgets and added security.

Its On: Telstra 4G Goes Live

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4G wireless service is live and kicking in Oz for the first time.The telco is the first to deploy 4G broadband technology into its Next G wireless network and hopes to roll it out nationally before the end of the year.

The first 4G base stations using Long Term Evolution (LTE) technology, have been switched on in Sydney, Perth, Melbourne and Brisbane, Mike Wright, executive director Telstra Networks said today.

4G data has also been sent over the network for the first time outside of field trials.

Taking over from 3G, LTE gives faster data speeds, high quality video conferencing and faster response times for customers using mobile devices allowing speeds as high as 150 megabits a second on the net, it previously stated. One example of this is a full length movie can be downloaded in less than 2.5 minutes.

However, in its statement today it resisted in divulging precise speeds users can expect on the upgrade.

Telstra announced in February it would upgrade with LTE technology in CBDs of all capital cities and “selected regional centres” by the end of the year, to meet “meet ever-growing customer demand.”

Over one million mobile and wireless broadband customers have signed on to its Next G network in the past 12 months: 
“Data usage on the Next G network doubling every year, the increased network capacity LTE will provide is vital,” Telstra said in a statement this morning.

 

“However, the biggest benefit it will bring is additional capacity, meaning more customers can do more things on the network at the same time.”

By the end of 2011 when the initial 4G LTE network has been deployed, it will sell dual mode LTE/HSPA+ mobile broadband devices that will operate over both 1800/850MHz spectrum bands, giving 4G where available.

It will also allow the switchover to 3G HSPA technology and will continue to invest in the 3G network.

Currently around 12% of their customer base was now using wireless as their primary broadband source, Telstra CEO David Thodey revealed and anticipates this growing to 24% very quickly in line with the US market.

Telstra is partnering with Ericsson to roll-out the LTE network, with Sierra Wireless developing the dual mode mobile broadband devices.

 “This is an exciting development that demonstrates Telstra and Ericsson are on track to deliver Australia a 4G network by the end of 2011,” said Ericsson CEO, Sam Saba.

Vodafone Deny Egyptian Propoganda Yet Sends Pro-Gov Texts

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Mobile carrier strongly denies Egyptian propoganda accusations.

Following an outbreak of criticism on Twitter, the mobile carrier has come out strongly defending the texts it sent its Egyptian mobile customers, claiming it had no choice in the matter. 

The texts, one of which appeared to criticise the anti-government protesters , encouraging “honest and loyal men to confront the traitors and criminals and protect our people and honour” and was signed off directly from the company.    

Vodafone blames Egyptian authorities, whose leader is beleagured president Hosni Mubarak, for the propoganda style texts.

Another text sent urged Egyptians to attend a pro-Mubarak rally in Cairo on Wednesday.   

“Vodafone Group has protested to the authorities that the current situation regarding these messages is unacceptable. 

We have made clear that all messages should be transparent and clearly attributable to the originator,” the company said in a statement.  

Vodafone also say other carrier in the country were also carrying out similar government orders.

Inflation Down, But Price Rises Still To Hit, Says JP Morgan

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Prices fall might not mean good news for retailers.

Weaker than expected inflation figures for Q4 2010 won’t necessarily bode well for economic prospects this year, say analysts.  

The inflation figure of 0.4 per cent recorded for the last quarter of 2010, was below the expected 0.7 per cent figure although this won’t necessarily mean more activity at the tills, with interest rates still forecast to rise on the back of the catastrophic Queensland floods, which took place earlier this month.  

The lower than expected figures also won’t prevent the RBA from raising their cash interest rate over the long term, JP Morgan economist Ben Jarman told the Sydney Morning Herald.   

“We are still coming to grips with the impact of those floods.”  

The drop in the price of consumer goods was despite an annual yearly inflation increase of 2.7 per cent, which also fell below forecasted 3.0 per cent figure.   

And rises are on the way, he says.  

“There might be a knee jerk reaction here that the RBA has some time (before raising the cash rate),” he said.

“But they can’t wait too long.”

Oz Retail Exposed As Uncompetitive: Morgan Stanley

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Harvey Norman and Co are in for a shock.Retail landscape is in for a shakeout in 2011, say analysts.

Some of the major retail giants – Harvey Norman, JB Hi-Fi and Myer included are in for a huge shock, with analysts saying their trading could be uncompetitive.   

In its 2011 forecast, Morgan Stanley has said the Productivity Commission investigation into retail landscape here, is likely to find that it is ‘uncompetitive,’ despite claims by CEOs that GST is killing trade.       

The investigation, established following the furore kicked up by retailers claiming that internet trading eating into their sales figures, and demanding a GST of 10% be introduced on all online goods purchased from international retailers, who are currently exempt from the tax.            

Major price discrepancies between Australian and foreign retailers are clear – the Samsung Galaxy Tab is available online for $500 online from US retailers, while it retails for almost double that – at $899 in Harvey Norman stores.   

The recent strength of the Aussie dollar also meant consumers were getting more bang for their buck buying from overseas. 

It’s not the first time the market analysts have forecast shaky ground for the ASX listed giants – late last year they warned that retailers including JB Hi-Fi and Harvey Norman were set to make major financial losses due to the growth of online rivals.

However, reports this morning indicate that all is not lost for the retail sector.

Share prices at Harvey Norman, JB Hi-Fi and David Jones are on the way up after better than expected end-of-year financial results were reported at outdoor retailer Kathmandu and Super Retail Group. 

New Zealand based Kathmandu announced a sales hike of more than  whopping 10.3 percent  in the second quarter of last year, while Super Group profits were more than double that forecasted – jumping from a conservative $9.5m rocketing to $25m.

However, analysts expressed caution about the likes of Harvey Norman and Dick Smith repeating this success and expects profit figures to suffer a fall, according to Evans & Partners analyst Tony Wilson.  

However, despite this share prices still floated higher for the tech retailers, with prices on Harvey Norman stock opening on a 3.22 high this morning.

 

Massive product margins and a domestic market of 20 million consumers all to themselves are just some of the conditions retail stores enjoyed for many years – although not much longer it seems.   

However, that’s not the only surprise in store for Harvey Norman.          

This year could also see the electronic kings issuing shares to pay a special dividend, say Morgan Stanley.          

In previous years, almost half of the analysts’ predictions came through, although we’re sure Gerry Harvey has his fingers crossed one or two of these fail to materialise.