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Oonagh Reidy

Is 4G “A Curse”?

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It’s tipped as The Next Big Thing in mobile but 4G is not all its cracked up to be, warn Korean telcos

The boss of one of South Korea’s biggest telcos warned fellow telcos of “the curse of 4G” at the World Mobile Congress in Barcelona this week.

Suk-Chae Lee, the head of KT Corp, complained his company is not seeing the returns they’d like on their massive investment in 4G LTE networks at the World Mobile Congress in Barcelona this week.

The problem is, after the telco erected these super pricey networks, users are not prepared to pay more to use the faster LTE services.

“Our European colleagues complain that the explosion in data has not fully happened for them, that it did not come to reality.”

 “In Korea, they are data crazy. We have unprecedented demand. We cannot handle it,” Lee admitted.

“But the issue we have is that they are not willing to pay enough.

“So, the fundamental problem is, can we make any money out of it?”

Korea has one of the biggest LTE networks in the world and KT’s 4G service, called ‘LTE WARP’, covers the entire country.

Mike Wright, Telstra’s Networks and Access Technologies Director was not available for comment as he is currently in Barcelona at the World Mobile Congress himself, but we don’t doubt his ears were ringing at the warning.

High Hopes

Telstra did not comment on the warning by South Koreans when contacted by SmartHouse.

Just last week, Telstra unveiled its 4G strategy and said it would begin using 2G spectrum to deal with the “tsunami “of demand for mobile Internet data in OZ even in remote areas, Mike Wright, Executive Director, Networks and Access said.

Telstra’s 4G users are growing at 20% monthly, and outpacing 3G growth and last week announced technologies including LTE Advanced, HetNets to make sure it can meet 4G demand, part of its plan to expand network to 66% coverage across Oz.

The telco which set up the first 4G LTE network here 18 months ago is investing $1bn this year alone and has 1.5 million users on its LTE network the biggest in Australia, with Optus’ network still in its infancy.

But Telstra don’t seem to be doing too badly out of 4G – its mobile revenue grew by 4.6% to $4,5bn in the six months to 31 December 2012.

 

South Korean telecom’s Chief Technology Officer backed up his rival at WMC saying “the traffic increases but the revenue does not necessarily follow,” but did say average revenue per user rose $13 compared to 3G.

“It is good money, but it may not be enough to justify the huge investment needed in LTE.”

However, Jae W Byun predicts returns would increase as users numbers rose from 30% to 60%.

And with Telstra looking to wean mobile users off 3G and 80% of its smartphones sold will be on 4G networks this year, they are clearly thinking the same.

A Vodafone spokesperson is confident about the future of 4G telling SmartHouse: “Australia is the second highest penetrated smartphone market – an indicator which suggests it’s only a matter of time before 4G really takes off.”

Although the telco hasn’t yet revealed when 4G will go live (its still testing), they’re “very excited about the potential for 4G and is on track to roll out a competitive network in Australia later this year.”

And in fact, although behind rollout compared to Telstra and Optus, Voda’s LTE network could have the fastest speeds of all networks.

“Vodafone will be the only carrier to offer 20mhz contiguous spectrum in the 5 state capitals when we switch on in 2013. For data hungry customers that means faster speeds than they can get today from any other network,” the spokesperson added.

“Our industry is in transition. We’ve only begun to see the digital revolution occur and high speed, specially efficient technology such as LTE will play a key role in the full enablement of this revolution. “

Telstra Say Tata…& Make Global TelePresence Felt

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New Tata deal will provide Testra HD telepresence in 31 cities worldwide.

Telstra’s new interconnection deal with Indian telco Tata Communications will allow its Cisco’s TelePresence customers connect to high def video conferencing equipment globally.

Tata Communications’ Global Meeting Exchange provides private and public telepresence services spanning 31 cities across five continents. Telstra’s Cisco TelePresence managed service is delivered over its Next IP (TM) network.

Telepresence allows virtual simulation of meeting rooms, joining participants who are at different locations and can assist with employee collaboration across remote locations, boosting productivity reducing travel time and costs.

The comms tool “is an increasingly popular way to conduct global business meetings because of the time, cost and environmental efficiencies it delivers,”  saysPhilip Jones, Executive Director of Telstra Innovation, Products and Marketing. 
The new agreement will help address the demand for telepresence meetings globally, he added. 

To organise a telepresence meeting, Telstra customers will be provided with instructions on how to reach their conference on Tata Communications’ Global Meeting Exchange platform.  

Assistance is available to Telstra customers via their local Telstra service desk number in each region.  

The interconnection agreement will also benefit other organisations that do business across the globe, Peter Quinlan, VP, Integrated Business Video Services, Tata Communications, said.

 

“The agreement with Telstra further demonstrates our commitment to drive Telepresence as a tool for true global collaboration where customers can connect with each other regardless of service provider or network,” Mr Quinlan said.

Huawei Ascends $499 Smartie To OZ

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Look out iPhone: Chinese giant Huawei is planning to ‘disrupt’ the market with its dual-core smartphone for $499.
The Ascend P1, which has been flagged as “where beauty meets brains,” is a slim smartphone with a 7.69mm body but houses a super bright 4.3″ qHD Super AMOLED display and potent dual-core 1.5GHz Cortex-A9 processor for faster multi tasking.

Similar to the S III, Google Nexus and other Androids like HTC and Motorola, Huawei’s “flagship” Ascend P1 runs Android’s latest platform, Ice Cream Sandwich.

Other specs of note include an 8MP high dynamic range camera with flash, Full HD 1080p video recording, Dolby Mobile 3.0 Plus for impressive 5.1 surround sound when connected to a home theatre system and 1GB RAM.


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The dual flash LED and HDR effect optimisation on the camera will “capture every detail in any environment,” says Huawei who until recently stuck to low end budget devices, but have now upped the ante and could prove a serious rival to other Android players in OZ.

Software wise, Ascend P1 also allows you edit PowerPoint and PDF documents.


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“The Ascend P1 is not only a highly capable smartphone packing powerful technology; it offers users something that is beautifully designed and crafted,” commented Mark Treadwell, Head of Marketing, Huawei.

 

“The launch of this flagship mobile in Australia is further proof Huawei is a disruptive player in the competitive smartphone industry. We are committed to providing Australian consumers with high-quality mobiles combined with honest pricing

The Huawei Ascend P1 can be purchased outright from Dick Smith for $499, but no other carriers are selling the device to our knowledge, although Mobicity are selling it for $489.

The Chinese brand are set to launch a slew of high end mobile devices in Oz later this year. 

Its Coming: .XXX Porn Names Open, Thousands Celebs Banned

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Angelina Jolie, Beyonce and even former British PM Margaret Thatcher are all banned as .XXX domain names for porn sites, which has officially opened for registrations.

The .XXX domain is a sTLD (sponsored Top Level Domain) designed specifically for the ‘adult entertainment’ and porn industry and will separate the dodgy sites from the more legit ones. 

And 4,000 celebrities have already been banned- from Donald Trump to Angelina Jolie and Beyonce. 

.XXX applications, opened by ICM Registry today, with the ‘Sunrise’ registration program, the first part of the three-part rollout of “red light” domain, which is set to go live on December 6. 
1,500 .xxx domain names have already been allocated with 35 porn companies, according to reports. 
Sunrise A allows registered trademark owners and existing registered domain names to apply for .XXX domain names. 
If you own an existing domain name that isn’t trademarked, like adultdomain.com, you can apply for the matching name. 
Registration, being taken by Florida based  ICM Registry, means the adult sites will be a “trusted brand, globally recognized and extolling responsible and safe behavior.” 
Holders of .XXX domains will also benefit from “global marketing campaigns and greater awareness” in the mainstream world, say ICM, who is also developing a search portal for .XXX sites, like a Google for the sex industry. 
And for those businesses who wish to stay out of the porn domain – can register their names to be blocked. 
So, we’re sure Apple.XXX or Acer.XXX wont be appearing on the web any time soon. 
Registration for this first phase runs for 52 days, starting from September 7. 
 

For more information,  visit ICM Registry 

Gerry Harvey Gets Gloomy, Predicts Mass Closures

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Baton down the hatches: Harvey Norman boss is predicting dire times ahead for retail.


As Harvey Norman owned Clive Peeters and Rick Hart outlets run aground, Gerry Harvey predicts similar fate for other electronics businesses. 

 “There’s no doubt in the world in the next six months many (electronic retailers) will have to close. It’s just a matter of how many,” he said in an interview this week. 
 Times are a-changing, the 71 year old admits. 
“Every year in my life I’ve said this is going to be the best one ever”, confessing he no longer holds this sunny outlook, predicting a dismal sales period in H2 for Aussie retail. 
 However, there was some light at the end of the tunnel – called iPad 2, which was “selling like crazy” in store, he said, with Android’s playing catch up. 
But laptops and flat screens were delivering less joy to the bottom line – while volumes are up, profit margins and revenue are tightening.  
However, the retailer did recently report growth in white goods, cooking, home appliances and floor care. 
He also said competition from online traders was “negligible”, which is interesting, considering only yesterday the Harvey Norman Chairman confirmed his giant was entering online world of selling next month. 
“Eighty percent of our retail products will be online in September,” he confirmed yesterday. 
“I’m sick of talking about online [retail] to journalists” a fed up Harvey added. 
 

These latest comments suggest Harvey is still in denial about the elephant in the room that is online trading (or lack of) and the huge impact it has had on his bricks and mortar business. 

Gerry Harvey’s previous refusal to sell goods on its website may be one of the reasons behind its dull sales figures – posting a 3.6% fall in its most recent results last week. 
Global sales for the year to June 30th were $6.18 billion, with the retailer saying revenue had fallen in its franchisees due to a challenging operating environment, a stronger Australian dollar and falling TV prices. 
And this is part of an ongoing southward profit trend at the retailer.  
In its previous results to December 31 profits slid 16.5% to $198.61m (before tax) – from high of $237.77m, in spite of having increased its store numbers from 195 to 198. 
Harvey’s have now moved to close seven Clive Peeters and Rick Hart group stores due to poor sales following its acquisition last year for $55M, announced last week. 
 In comparison, Harvey’s biggest rival and darlings of the web, JB Hi Fi, announced a 13.3% rise in profits and an 8.3% rise in sales.  
And ditto for Dick Smith, who also have a massive online presence, reporting a 7.1% jump in comparable sales for the full year to June 26, which it attributed to “the refreshed online store.”

 

Doesn’t that tell you something, Gerry? 

Priced This Way: Amazon Flogs GaGa At $0.99, iTunes $11.99

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Death to iTunes? A massive music battle is underway – and its not between the artists.


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Amazon has come out with an all guns blazing, death to iTunes strategy, pricing Lady GaGa’s new album at its digital download music market place at a measly $0.99 on Monday last, the first day of sale.

The same release was priced at $11.99 on its rival iTunes, who despite the cut ptice bi its music rival also reported brisk trading on what is tipped as one of the biggest releases of the year by possibly one of the most controversial sensations of the 21st century.

One music industry sources indicated first day sales fell in the 250,000 – 350,000 bracket between the two download retailers. 

E-tailing powerhouse Amazon is also pricing the album at a massively competitive $6.99 thereafter – well below the wholesale price of around $9, the WSJ believes.

It is also selling many other titles by Katy Perry and Arcade Fire at $5 a pop.

However, although iTunes accounts for 70 per cent of music downloads in the States alone, it must also be remembered mass retailer Amazon.com is one of the most visited sites worldwide including Australia, thus can attract eyeballs to cause Apple some headaches.

 

But it wasn’t just the latter that Amazon’s Lady GaGa loss leader strategy has caused issues for.

Its own servers crashed as a result of the cut priced album sending fans in to a frenzy to snap up the deal.

“We have been experiencing high volume and downloads of today’s Deal of the Day, ‘Lady Gaga, Born This Way,’ have been delayed,” the company announced in a statement on Monday.

 “All customers who order this album today will get the full  album for $0.99.”

 Amazon introduced its cloud player service for Android OS earlier this year, although the service is not yet available in Australia.

Mouthy Kyle “Deeply Offensive & Derogatory”: Watchdog

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Hey Kyle, your comments were “deeply derogatory and offensive”AND you’re in breach of the Radio codes of practice.


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The Communications watchdog has given 2Day FM’s Kyle Sandilands a taste of his own medicine, branding his comments on the Kyle & Jackie O Show about News Ltd Journalist on 22nd November as offensive and amounted to a breach of the Commercial Radio Codes of Practice 2011.

Motormouth Sandilands branded News.com.au deputy editor Alison Stephenson a “little troll,” “a bullshit artist,” criticising her hair as “very 90s” and her blouse on his show last year. His remarks prompted outrage and led to advertisers including Vodafone, Telstra and the Good Guys dropping their sponsorship of Kyle and Jackie O show.

“You haven’t got that much titty to be having that low-cut a blouse. Watch your mouth or I’ll hunt you down,” he said.

A “fat slag” was also another remark that came from the smarmy Radio DJ’s mouth.

And it looks like Sandilands’ comments has landed his employer 2Day Fm in a whole lot of trouble with the Australian Communications and Media Authority.

“The Authority found the comments by Mr Sandilands deeply derogatory and offensive and, in all the circumstances, a licence condition is the appropriate response,” said ACMA Chairman, Chris Chapman.

ACMA has now begun “formal steps” to impose a second licence condition on 2DAY FM which would “prohibit it from broadcasting indecent content and content that demeans women or girls,” it said today.

If 2DAY-FM does not comply with its additional licence condition, ACMA may suspend or cancel the licence, it warned today.

In response to Kyle’s rant , 2DAY-FM introduced several safeguards, including: instructing Mr Sandilands and his management of the sort of remarks that are unacceptable and must not be repeated and extending the broadcast delay for the program from 10 seconds to 30 seconds

2Day FM also said it will be Installing a red light warning system in the Sydney (and Los Angeles) studio to notify announcers when content may be of concern.

However, this is not enough said ACMA. In 2010, the same program breached the equivalent indecency provision of the earlier version of the codes.

However, Austereo rejected ACMA decisions, saying ”2Day FM’s core audience is women, predominantly young women,” Southern Cross CEO Rhys Holleran said.

Holleran also branded the watchdog’s license conditions as unworkable, saying “ACMA has issued no guidance on the licence condition and in light of that, we consider the condition to be unworkable.”

”Our difficulty with the proposed licence condition is that terms such as ‘decency’, ‘demeaning’ and ‘undue emphasis on gender’ are broad and ambiguous and mean different things to different people.”

 

The ACMA appears to have ignored the steps which 2Day FM put in place, he added

“In a 10 year period in which 2Day FM has broadcast approximately 87,000 hours of programming, it has breached the Code only four times.”

2Day FM will have the opportunity to make representations to the ACMA on the proposed licence condition before a final decision is made.

Dick Smith Drags Woolies Down

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Woolworths feels the pinch as consumer electronics continues to slide.


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Woolworth’s latest H2 2011 results, just announced, reveal net profit fall of 16.8% due to discontinued operations and $300 million provison it was forced to make for the divesting of Dick Smith, it said today.

In January last, Woolies said it would sell off its Dick Smith electronics operation, and would close over 25% of its stores immediately here and New Zealand due to poor performance.

As a result of the divestment, Consumer Electronics division has been disclosed as a ‘discontinued operation’, forcing it to make $300m provision and dragging earnings for H2 down for the Woolworth’s group.

Dick Smith sales increased just 0.7% for the half year to December, a disappointing result in what should be one of its busiest trading period including Christmas, although comparable store sales did increase 2.4%.

However, Woolies said sales for second quarter were “pleasing” given that consumer electronics continues to be impacted by the poor trading environment, price competition and price deflation in key products.

The new format DS stores, which now account for 74% of all stores also continue to outperform older format stores and enjoyed sales growth of 8.7%, which could read as a sales pitch to any potential buyer.

The process of getting rid of its electonics business is now underway and a “number of potential purchasers have expressed interest,” Woolworths Group said today.

Read: Woolies Give Dick Smith The Boot

Apart from electronics, Woolies’ other businesses are booming as total sales grew 5.2% to $ 28.9bn. Food and Liquor sales for the half-year were $19.6 billion – an increase of 4.3% on last year.

Earnings before tax grew 4.1% from continuing operations (total Group EBITDA before Consumer Electronics $300m provision was up 3.9%).

Net profits from Woolworths’ ‘continuing’ group operations including food, liquor and home improvement divisions which also grew to $1.1bn – up 3.1%, before consumer electronics was taken into account, the supermarket giant said.

Consumer Electronics’ New Zealand sales increased 2.2% for the half year and comparable sales increased 6.5%, which it said was “strong” given New Zealand challenging macroeconomic environment and significant price deflation.

Sales for BIG W, however, fell 1.3% for the half year to $2.4 billion. Comparable sales fell 2.8%, compared to a decrease of  4.2% in H1.

Customer numbers and items sold increased during the second quarter (Oct-Dec period) although price deflation continued, averaging 5% and was most evident in Home Entertainment and Toys categories, the giant confirmed.

“Trading over the Christmas was pleasing with positive customer and unit growth in December offset by deflation resulting in lower average basket sizes.” 

Strong results were achieved in DVDs, Books, Toys, Sporting categories whilst cooler weather in December had a “modest” effect on apparel and outdoor categories.

 

Earnings at the discount store fell 4.3% to $119.6m, however Woollies said the result for the second quarter was pleasing and showed positive growth, compared to 2010.

“Woolworths Limited today reported an increase in net profit after tax from continuing operations of 3.2%. It was also pleasing to achieve an increase in our trading result of 5.6% before central overheads and our investment in Home Improvement,” said Woolworths Chief Executive Officer, Grant O’Brien.

“This is a sound result considering subdued consumer confidence,deflationary pressures and the significant investment we are making in the business in line with ourstrategic priorities for growth.”

Woolies also announced a 3.5% increase in fully franked interim dividend to 59 cents per share.

Currently there are 386 Dick Smith stores between Australia and New Zealand. In January Woolworths will close up to 100 of these stores before the sale over two years.

Len Wallis On Sound, Big TVs And Why Foxtel Better Watch Out

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Len Wallis a leader in the specialist AV market is restructuring in an effort to better engage with customers.

The Sydney based AV specialist is undertaking a major refit to better engage with his customers who spend up to a million dollars on AV and automation fitouts. 

Len Wallis’ showroom at Sydney’s Lane Cove already has 10 sound-lounge/theatres, a virtual smart-house and an on-site service centre.

But in a time when bricks-and-mortar stores is in decline and facing economic uncertainty, why is Wallis developing his state of the art showroom even further?

The “substantial drop in price points of AV equipment” is driving traffic into his store, owner Len Wallis admits, but is also the result of “genuine increased interest in better quality by the consumer,” he says.


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Demonstrating the gear in the connected environment is also critical, says Wallis, as is a WiFi network.

Having an in-house wireless network is “absolute and we developed our system over time,” he says but “we’re pulling it out and have just installed a really stable network.”

“Its got to be done” he admits.

So what are the big in the AV business at the moment?

Security is a big issue for custom gear but from Len Wallis’ point of view, entertainment is the main one.

“The changes in Australia over six months are going to change everything as far as content provision goes ..the days of listening to music the way we used to are totally dead now. 

“Entertainment is now about the sheer amount of content available and the ease of getting it as you can stream content straight to your system rather than messing around with iPods and downloads.”

This means content players of old may be in for a shock.

Traditional content providers including the likes of Pay TV giant Foxtel “is going to have to be very careful that a video version of Mogg suddenly appears on their doorstep and then they will have real problems.”

There are a few players working on delivery at the moment so, watch this space, he says.

The likes of Google, Apple and Microsoft are “perfectly positioned” to enter this market and Wallis reckons it’s where content is going to go.

“Foxtel is going to have to pick a side and partner up with someone,” if they are going to make it in the new content provision era of cloud, streaming and IPTV.

Quality of devices is also improving in general, with most now starting at 320Kbps instead of 128Kbps and there’s now an upgrade path available on audio files, but the sheer amount of content available is the big thing.

Quality of projectors has also jumped and customer feedback has been extremely positive, Wallis adds.

In the custom space, the AV guru says there is still traction in non-dedicated theatre systems which is going away from the general trend.

 

Sonos is still “enormous..it’s everywhere and people are still going to multiple boxes as its simply, cheaper and easier to handle.”

The issue of service provision is also on the horizon for Wallis but there’s an interesting twist on it.

“Some customers are looking to us as service companies to install and program devices they bought at somewhere cheaper like Bing Lee.

“They’re looking at us to do the service on it as they perceive someone else as cheaper.

“However, we’re not geared up as a service company of that nature just yet..but it’s certainly something we are going to look at”, he says.

So what about the TV market?


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Wallis cites Panasonic VT series 65″ Plasma TV which he says is “unbelievable..a stunning screen” models but availability is scant on the Australian market.

However, you “cannot get a Panasonic screen for love nor money in Oz at the moment,” he says.

This supply side issue is due to Pana’s local entity not ordering enough, despite the company saying otherwise.

“I would have sold 30-40 on orders [if the stock was there], which for us is a lot as we’re not a screen company. “

 And is the demand for larger screens like 75″ or 80″ growing as prices fall and bigger OLED screens emerge?

“We don’t stock anything above 65″ in the shop, but we’re certainly looking at it,” Wallis says.

“We’re being very cautions of who were dealing with at the moment,” he tells ChannelNews.

“We’re selling screens but not making any money out of them in some cases,” resounding the battle cry on every retailers lips at present.

The old reliables of pricing and margin squeeze are still a big problem, and customers are still not sure about spending which is a “big issue,” Wallis says.

“But those customers who are spending are bringing their expectations down,” he notes. 

Fetchtv Flogs Cantonese Packs $49

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Fetch are reaching out to 244,000 Cantonese speakers in Australia with launch of new TVB pack.


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244,000 Cantonese speakers in Oz are now being offered five of the “most popular” channels from TVB, one of Hong Kong’s largest broadcasters, including TVB Jade, Junior, Xing He and Lifestyle.

Fetch’s IPTV Cantonese pack costs $49.95 per month, plus basic subscription which starts at $9.95 and the five channels available include:

TVB Jade (TVBJ), boasts Hong Kong latest drama series, news and information from mainland China and Hong Kong and access to Australian shows including Australian News, Public Forum, Today Tonight, Finance Caf_ and Smart Guide.

TVBN is another current affairs station in the pack showing 24/7 news and current affairs from Hong Kong and around the globe.

TVB Junior for young viewers and parents, screening Cantonese language learning programs, general knowledge, cartoon, and dramas series, while Xing He – the world’s first Chinese TV drama channel showing TVB’s classic drama series.

TVB Lifestyle screens shows hosted by celebs and other professionals on health, travel, food and fashion trends in China and abroad.

Because FetchTV is delivered over broadband from ISP’s Optus, Internode, iiNet, Adam Internet, Westnet, Netspace and MyTelecom, the new service can be accessed by those in apartments and rented accommodation.

Programming is also unmetered, meaning it doesn’t count towards internet downloading quotas.

The FetchTV IPTV service includes: a 1 terabyte personal video recorder to record live TV, access to on-demand new-release movies, and other content from providers.

Read: Haa! Shi! Optus FetchTV Invades Asia Here

Last month, Optus announced expansion of its fetchTV IPTV service, MeTV, introducing 51 new foreign language channels and 4 world packages – offering Hindi,  Chinese Mandarin, Korean, Mandarin (Singaporean / Taiwanese) programs.

iiNet also has several Chinese and Mandarin world packages for Asian audiences as well as others from India, South Korea and Hong Kong.

The Cantonese channels are live on all ISP services, except Optus, which will commence later this month, Fetchtv confirmed.

“The TVB Cantonese pack offers the very best of programming for Australia’s large Cantonese speaking population. The TVB channels are extremely popular in Australia, but this is the first time they have been available without a satellite, making it an ideal choice for customers living in multi-dwelling units, or for those customers looking to combine the very best of Cantonese and English programming,” said Scott Lorson,  FetchTV CEO.

 

“TVB is pleased to partner with FetchTV in making our Cantonese channels available to those Australian households who are not currently able to access them,” said Patrick Wong of TVB.

Together, TVB & FetchTV will now be able to connect even more Australian Cantonese speakers with home. ”