More than a million extra families and businesses will be able to access high-speed Telstra broadband after the telecommunications dodged a roadblock today in Canberra with the Government announcing it didn’t plan to regulate Telstra’s ADSL2+ service at this stage.
Sarah Falson
JB Hi-Fi Strengthens IT Offering In New Stores
JB Hi-Fi will open a store in the basement of the famous Strand Arcade in Sydney at the end of the month, signposting the technology retailer’s second store opening in the Sydney CBD and strengthening the company’s presence in the business district.
The store will be located in the former Downtown Duty Free site, and will officially open on 28 February.
The store’s wares will focus on DVDs, CDs, games, computers, IT equipment, cameras and navigation, and will incorporate two special areas designated to Apple and Telstra stock.
JB Hi-Fi says the new store location is a lucky win for the retailer, and will take some of the pressure of the existing store underneath the Queen Victoria Building.
“We are excited to have secured such a prominent location, our existing store in the CBD has been overtrading for quite some time and with Brazin closing the HMV Pit St Mall store we saw an opportunity to increase our market share as well as introduce to the city a substantial technology offering,” said JB Hi-FO CEO, Richard Uechtritz.
The new store will compete for foot traffic with a nearby Virgin Megastore located on George Street near Martin Place, which also stocks CDs, DVDs and games.
“We have two stores in Melbourne’s CBD, both trade strongly, which bodes well for Sydney,” said Uechtritz.
Coinciding with the Strand Arcade launch is the opening of a new dedicated computer and IT store in Elizabeth Street in Melbourne’s CBD, in close vicinity to the existing Elizabeth Street JB Hi-Fi outlet.
According to Uechtritz, the new computer reseller doesn’t flag the beginning of a new direction for the company, and is simply a one-off model.
“This is not a change in direction of the start of a new store concept. It is simply that our existing Elizabeth Street store has insufficient space to merchandise a full range of computers and accessories which has quickly become a core category for the business,” he said.
JB Hi-Fi began stocking computers and equipment in mid-2006.
Samsung Restructures Management After Record Sales
Samsung Australia has increased its sales by more than 36 per cent for the first time ever, mostly due to favourable sales in the consumer electronics industry, leading the way for a restructured CE sales division, according to reports from the company’s Australian subsidiary.
Determined to trump 2007’s record sales report, the company has brought on a new director of sales, Michael Richardson, who will taken over from Mark Beard who has returned to a sales role as general manager of CE sales.
Through his promotion, Michael Richardson will now be responsible for the strategic direction of the CE sales and commercial sales business, according to Samsung.
He will also be responsible for strengthening and developing relationships with key CE customer stakeholders, says the company.
“Consumer demand for CE products will increase with major events like the 2008 Beijing Olympics so this new structure will allow us to have a greater focus on our distribution networks and key national accounts. Together, the Samsung CE Sales team is looking forward to reaching new business goals,” said Richardson.
Michael has over three years experience at Samsung and over 20 years industry experience.
Taking over from Michael Richardson, Mark Beard will be responsible for managing the national sales business including all state and national account managers, says Samsung.
He will also be responsible for managing and maintaining Samsung’s national retail customer portfolio.
“I am excited by the opportunity to lead our national CE sales team into a very prosperous 2008 with both a buoyant industry and an excellent product line-up. I am confident our extremely passionate sales team will show the great commitment necessary for delivering even stronger results this year,” said Richardson.
Richardson’s knowledge and understanding of both corporate and product sales and marketing is unique and highly advantageous for Samsung’s CE business, says the company.
Clever Comms Performs Backflip Amid Losses
Clever Communications has generated positive operating cash flow for the first time in months following net losses two years running to the tune of almost $900,000.
The Melbourne-based Internet Service Provider (ISP) today reported an operating cash flow of $185,000 for the fiscal 2007 fourth quarter, even though the net operating cash flow for the half year ending 31 December 2007 was minus $438,000.
Following Clever Communications chairman, David Williams, announcing at the company’s annual general meeting in November 2007 that the company “has not lived up to its potential” and that “shareholder value has been eroded”, Clever has now taken a range of precautions to ensure it stays on deck financially.
After one-off costs relating to a business restructure including an expensive re-branding exercise that saw the company merge its fully-owned subsidiaries – Access Providers, Saise Telecom and Activ Australia – and change its name to Clever Communications Australia, the company is now looking positively to the future to regain lost money, according to Williams.
“The restructure of the business has been completed and has resulted in a reduction in headcount’ a reduction in the operating cost base of the business and the addition of experienced senior management,” said Williams in the notice.
Williams also said an “aggressive” sales and marketing program had been developed and implemented over the quarter-period to drive increased sales, while a focused program to penetrate the wholesale channel has also been launches and has been “received positively”.
“We continue to work closely with our key suppliers to improve pricing and terms and to assess opportunities to enter into commercial arrangements to enhance our service and product offerings to the marketplace, and to improve margins,” said Williams.
Telstra Spruiks Next G To Businesses
Telstra is talking up the benefits of its Next G wireless broadband and mobile services for business users by citing statistics from a study commissioned by the telco in conjunction with Ericsson, that states that according to a sample of Australian businesses using Next G, their productivity has risen 9.3 per cent.
The research covered a selection of businesses operating in rural and remote areas and some with staff working out of the office, such as sales people. Independent research company Econtech carried our the study, which included “detailed interviews” with 26 businesses which had been using Telstra Next G for seven-and-a-half months on average.
Telstra reports the respondents gained productivity by remotely accessing information through mobile broadband allowing them to cut administration staff costs; accessing the internet while travelling, converting ‘dead time’ into productive time; using video calling to provide on the spot technical troubleshooting; and improving inventory management by recording and sending details of parts and equipment used.
Telstra Business Group managing director, Deena Shiff, says mobile communication is revolutionising the way Australian businesses operate.
“The independent research has confirmed that businesses are discovering new and innovative ways to use mobile phones and wireless internet and this is helping their bottom line,” she said.
“Telstra’s Next G network is offering faster mobile internet speeds which has blurred the lines between what is possible in the office and what can now be done out on the road.
“Companies of all sizes are now integrating Next G mobile technology into their every day business dealings, which in some instances has helped some customers achieve productivity gains as high as 27 per cent.”
Companies participating in the preliminary research represent fifteen industries including: agriculture, forestry & fishing; mining; manufacturing; construction; wholesale trade; retail trade; accommodation, cafes and restaurants; transport; finance and insurance; property and business services; government administration and defence; education, health and community services; cultural and recreational services; and personal and other services.
Courts Lenient On Price-Fixing
Price-fixing offenders are being penalised less today than they were in the last decade, suggesting ambivalence on the government’s part, according to a report in today’s Australian Financial Review (AFR), based on information gathered from an academic at Melbourne University.
The average penalty for price-fixing from 2000 to 2007 was $52,543, with the maximum penalty resting at $500,000. From 1993 to 1999 however, the median penalty was $72,196, according to Melbourne University academic, Caron Beaton-Wells.
Beaton-Wells says her findings represent ambivalence from government, businesses and courts regarding the seriousness of the offence, and sends doubt on the willingness of judges to incarcerate price-fixers if the government makes cartels a criminal offence, as promised in 2005.
“Overall there is a low level of support in Australia for treating serious cartel conduct as crime, or at least that such support should not be taken for granted,” Beaton-Wells told the AFR.
This news comes in the midst of a landmark price-fixing case against packaging company Visy, which could see the company and its head, Richard Pratt, fined a record $36 million.
According to Beaton-Wells, the Australian Competition and Consumer Commission is more than willing to roll Pratt’s penalty into the company’s, rather than prosecuting him separately as is the case with certain other price-fixing cases such as the case against former Topfield-distributor, Digital Products Group, and its director Jai Kemp, who were ordered to pay $238,000 and $42,000 respectively.
Two other Visy executives could be penalised separately to the tune of $2 million combined.
Family First leader Steve Fielding said separately yesterday that individual executives who perform price-fixing should be jailed up to 10 years due to the seriousness of the crime, which is twice the amount proposed by the Government, said the AFR.
“Price fixing is fraud, it is theft, and the punishment must fit the crime,” he told the AFR.
12% Of Electronics Purchases Online
Online shopping services such as eBay have made a huge impact on the bricks and mortar retail environment with GfK recording that the online channel is now responsible for 12 per cent of total consumer electronics sales in Britain – but this doesn’t necessarily spell doom for the retailers.
According to GfK, the majority of major companies selling goods online are those with High Street or stock market presence, opposed to ‘pure players’ who have a minor share in the online space.
This means that already successful retail giants are now taking bites of both cherries with successful traditional retail businesses along with successful online shopping sites.
“A closer look to the value of the market over the longer term shows that far from taking business from traditional retailing, online has added to the markets’ value,” said a report from GfK.
“The traditional retailing sector has quickly developed a strong position in the online market, building on the trust surrounding the retail ‘Brand’.” “
The audio/visual market in Britain in 1995 was worth 3.2 billion GBP, rising to 5.8 billion GBP by mid-2007, with 0.7 billion GBP of the latter coming from online sales.
Online shopping may account for a high portion of entire consumer electronics sales, says GfK, however with the whole market growing 1.9 billion GBP in 12 years, the outlook isn’t so bad for those retailers lacking an online presence.
Seagate Gets System Builders Vista-Ready
Seagate has unveiled a hard drive ‘toolkit’ to assist system builders boost profits and capitalise on the increasing convergence to Windows’ Vista operating system by providing the support to market and sell high-capacity storage that operates in harmony with Vista.The new resource will help system builders match a Seagate desktop, notebook or external hard drive to the correct version of Vista, which includes Ultimate, Home Premium, Home Basic, Business and Enterprise models. System builders will also gain assistance tailoring Vista-based systems to their customers’ requirements.
“Microsoft is pleased Seagate is offering drives that help increase Windows Vista users’ productivity by offering high-capacity, easy to access storage solutions for valuable data,” said Microsoft senior product manager, Trina Carlstrom.
“We are glad Seagate is continuing these efforts and supporting the channel with a range of initiatives and programs.”
According to Seagate, Vista requires high-capacity storage systems because of the amount of content available to create, store and share using the platform.
Personal computers powered by Seagate’s 1 terabyte Barracuda family of drives are especially suited for use with Vista, enabling users to expand the capabilities of desktop PCs in the home and office.
The Seagate kit includes a range of reference materials including white papers, brochures, sell sheets, a solutions guide, fact sheets, and FAQs. It is offered exclusively through the Seagate Partner Program (SPP) – a channel program that is designed to help solution providers close more sales and deliver better support, according to Seagate.
ARA Gags Garrett Bag Ban
The Australian Retailers Association (ARA) has called the Federal Government’s push to ban plastic bags, lead by Environmentalist Minister, Peter Garrett, an example of “populist politics” that won’t help to save the planet anyway.
Telcos To Revolutionise SMB In 2008
Small and medium-sized businesses (SMBs) are in for a “deep transformation” over the next few years due to the increased availability of tier-two service providers that offer solutions designed especially for SMBs including mobile broadband and IT outsourcing, according to IT analyst, IDC Australia.
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Over the next few years, SMBs are set to embrace faster broadband connections, which will allow a range of further services to be delivered remotely, according to the analyst.
According to a paper by Jean Marc Annonier called ‘Top 10 Predictions Ausralia Small and Medium-Sized Business 2008: Give Me More Broadband’, over the next 12 months SMBs should watch out for the following predictions:
1. Service Providers Will Increasingly Host Core IT Functions
2. Managed Service Providers Will Offer Adequate IT Outsourcing Services
3. Consolidation and Virtualisation Will Simplify the Server Room to Host Mainly the Relatively Basic Storage and Remote Access Services
4. Voice Communications Will Be IP Based, Driven by Software Towards a Ubiquitous Unified Communications Model, and the Traditional PBX Will Be Doomed
5. Software as a Service Will Become Mainstream and Will Concern an Increasing Number of Applications
6. The Traditional Office Environment Will Not Change Immensely, Instead Will Continue Its Trends Towards More Mobility and Convenience
7. Telecommuters and Mobile Workforce Will Strongly Benefit the Progress in Fixed and Wireless Broadband Speed
8. Server-Based Computing Will Become the Platform of Choice for Branch Offices That Will Reduce Infrastructure to a Minimum
9. Electronic Transactions Will Become Prevalent in the Way SMBs Deal with All Third Parties
10. Availability of Faster Broadband Internet Connections Will Drive Changes, as SMBs Will Become Increasingly Network Centric