Wednesday, March 31, 2004


Telecommunications – Wireless

Latvia Does 3G Wireless Call
The European TLC Latvian operator LMT has made the first public WCDMA 3G call in Latvia, using a Nokia test network.

The demonstration showcased a series of services including streaming, Internet browsing, downloading, and video telephony, at data speeds of up to 380 kilobits/second, the LMT performed the call and data applications at LMT premises using the commercially available Nokia 7600 phone.

Nokia has supplied a full WCDMA 3G test network to LMT, including 3G radio and core network equipment, as well as 3G terminals. The test network and the 3G call demonstrated today enable LMT to completely evaluate the technical advantages of Nokia's 3G technology. The call also accelerates LMT's roadmap to offer Latvia's first commercial WCDMA 3G service by the end of 2004.

This 3G call is a significant milestone in LMT's deployment of advanced mobile services, LMT leading the way with state-of-the-art service in Latvia, and are confident that are firmly on track to be the first here with commercial 3G service. Nokia has been LMT's sole supplier of GSM network equipment since 1992.

LMT is the largest and most experienced mobile communications operator in Latvia. The company operates a nationwide GSM 900/1800 network and is looking forward to implementing commercial 3G services in 2004. LMT leads the market by number of customers, financial indices, network quality and variety of advanced services. LMT was the first telecommunications operator in Eastern Europe to introduce a certified ISO 9001:2000 Quality Management System.

Telecommunications – European market

The Japanese DoCoMo confirms its studying 3G UK options

The future of DoCoMo's involvement with cellphone joint venture 3G UK remains in doubt as the company confirms it has been weighing its options but had yet to decide whether to pull out. NTT DoCoMo has been considering strategic plans with both Hutchison Whampoa and Hutchison 3G UK, and will continue to maintain good relations with both companies. NTT DoCoMo has made no decision about ending its investment in Hutchison 3G.

Speculation concerning DoCoMo's exit from 3G UK has been rampant for more than two weeks as the company considers what to do with its 20% stake in the 3G venture controlled by Hutchison. DoCoMo paid 184.6 billion yen - $1.75 billion at Tuesday's exchange rate - for its stake in 3 UK in December 2000 in a deal it hoped would bring its i-mode Internet phone technology to the key British mobile phone market.

3 UK, which has struggled to win customers and could lose its second investor in around five months, said earlier this month it was testing i-mode. But it has not adopted the service to date; triggering speculation DoCoMo might switch allegiance to independent rival mmO2. DoCoMo also owns a 24.1% stake in Hutchison's Hong Kong business as well as a stake in its British Virgin Islands venture.

Logistics – China market

China boom drives Sinotrans, FedEx revenues

The growth potential of the Chinese logistics market has been demonstrated by the latest results from two of the largest companies present in the market, one Chinese, one American. Sinotrans. One of the largest indigenous operators increased its revenues in 2003 by 28% to Yuan 17.43bn (€1.7bn), whilst at the same time increasing its net profit by 23% to Yuan 705m (€69m). The company has joint ventures in place with a number of foreign owned logistics and some of its major investors include UPS, DHL and Exel.

Meanwhile FedEx has revealed that in its latest operating quarter, revenues generated in China leapt by 40%. FedEx is expanding its network by adding another 100 locations to its network in the country.

International operators have benefited from the strong growth of the Chinese economy and the internationalisation of its manufacturing and retailing industries. However at present they are required by law to work with local players, and can only offer international services. Once the market is de-regulated in line with the commitments which the Chinese government has made to the World Trade Organisation, there is no doubt that the domestic market will offer the greatest growth potential for these companies.

However in the meantime western logistics operators will benefit from the sourcing strategies of many of the multinational manufacturers that are establishing factories in the country. A large proportion of companies investing in the region do so to take advantage of the cheap labour on offer in order to assemble components, which are produced elsewhere. A recent survey has identified that most Japanese manufacturers source 20% or less from local suppliers. This has fuelled the air and sea freight boom for imports as well as for the export of finished goods.


Internet – Regulations

The battle over triple 'x'
By the end of this year, Internet users could have an extraordinarily convenient place to find pornography: a new .xxx top-level domain.
Source;, March 04

Technology – Software

The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry.
The current rapid increase in offshore IT software and services outsourcing has sparked a debate on the costs and benefits of this trend to the U.S. economy. To help understand the comprehensive economic impact of offshore IT software and services outsourcing, Global Insight has undertaken a thorough analysis on behalf of the Information Technology Association of America (ITAA). The analysis was undertaken in the context of Global Insight's economic models and incorporates information from third-party research reports, members of the IT industry, and primary research surveys.
Source; ITAA, March 04

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