Wednesday, May 19, 2004

HIGHLIGHTS

INTERNET – ENGINE SEARCH

Google Desktop Search Tool Rumored & Software Principles Released
The New York Times is reporting that Google plans to release a desktop search tool in the near future. The rumor comes on the heels of a new "Software Principles" page the company posted yesterday.
Google already has a desktop presence in the form of its long-standing Google Toolbar and the Google Deskbar search applet released last year. But a full-blown desktop searching application is seen by some as a move Microsoft might make to lock-in users. The Google project appears designed to counter this threat, according to the report.
Among the major search engines, AltaVista offered its AltaVista Discovery desktop search tool back in 1998, but it was never widely used. More recently, Lycos introduced a desktop search tool in March.
Coincidental with the rumor - or perhaps not - Google released a new Software Principles page yesterday. It's a call to the software industry to be more transparent and clear with users about what exactly their applications will do.
Among the principles, Google suggests that software should
· Not trick people into installing it
· Provide clear disclosure of its functions
· Be easy to remove
· Be clear in responsibility for when it changes default behaviors
· Be upfront about personal data and other information gathered
· Not be bundled with other software that doesn't follow principles of good behavior
In other news, the Google Gmail email system that sparked amazement by offering 1 gigabyte of storage space in April appears to have increased that amount by 1,000 times to 1 terabyte, for some users.
Aaron Schwartz and Dave Winer are just to reporting this has happened to them. Checking my own Gmail account, I don't see this happening. Gmail still tells me that I have 1000 MB of space in total, with 17 percent of it currently used. Personally, I suspect a bug.
Google's move came after Lycos recently offered 1 GB of space to its email users and Yahoo declared it would greatly increase the free space offered to those using its email service.
Write; by Danny Sullivan

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

TELECOMUNIATIONS – MOBILE

Bank Espirito Santo launches 3G mobile banking
Portuguese bank, Bank Espirito Santo, has announced the launch of its bank services specially designed for the recent Portuguese UMTS platform.
Their wish is not only to maintain their domestic leadership of the mobile banking sector, but also to immediately assess the impact of the 3G mobile telephony in banking activities.
In order to help the spread of the use of this new service, the bank also announced its intention to help the costumers to purchase 3G handsets with special prices and credit conditions. The first available service will be based on the BES Internet Banking on the I9 TMN Portal. It will be possible to check accounts, transfer funds, and recharge mobile accounts.
At some point in the future, customers will also be possible to perform other transactions normally available via Internet banking such as stock exchange orders, and services payments.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

INTERNET – WI-FI

Tin.it launches wi-fi ‘virtual tokens’
Tin.it, Telecom Italia Media’s Internet service provider, has announced that it is to launch "virtual tokens" for for its wi-fi Internet service.
The tokens offer a temporary access code that may be purchased online via credit card from locations that host Tin.it hot spots, such as hotels, shopping centres, bars and yacht clubs. The token is available in three different denominations. One-hour, five-hour and twenty-four-hour tokens cost €2.95, €4.94 and €14.95, respectively. The twenty-four-hour tokens are on special offer throughout 2004 for €9.95.
Launching on 15 May, the service is aimed at business travellers and tourists who need to access the Internet.
Tin.it has 364 hot spots in the country, 245 of which 245 are up and running.
Source; TIN.it, May 2004



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

FOCUS


INTERNET – MARKETING

Reciprocal Linking: A Disturbing Trend
In the world of Internet Marketing, and Web site promotion, nothing changes faster than the parameters that rule good Search Engine rankings and placement.
This has led to a developed new science in the last few years, SEM (Search Engine Marketing). This new science, SEM, has been a boon to both Web Masters and the merchants that maintain Web sites as a way to increase exposure and revenue for their products and/or services.
SEM has become a much sought after entity, with SEM specialists, who focus on optimization of a site, routinely adding linking campaign management to their overall repertoire of services. This has resulted in a large influx of Web sites focusing on linking campaigns and reciprocal linking as it has been established that good, solid reciprocal linking campaigns increased traffic and visitors to a site exponentially.

However, like with everything else online, the idea of SEM and linking campaigns has spread like "wildfire", with sites seeking links seemingly endlessly. This has led to what can only be termed, "linking explosions", with many sites posting links to everything and anything in an effort to increase their Search Engine rankings and placements.

The actual attainment of effective linking campaigns, is a work oriented, tedious undertaking, with literally months spent developing a good campaign. While a good linking campaign does increase rankings overall, with the Search Engines, the question remains, "does it increase sales"? After all, consumers are the ingredient that facilitates the sale of a product/service in the long run, not the rankings or placement of a site. Questions about whether linking campaigns increase revenue for a site are coming into play now.

Recent data has shown that consumers, now more than ever, are arriving at Web sites via "search features", not by direction to a Web site via another Web site link. The use of "search features" to arrive at a site has increased by almost six percent in the past year. In addition, direct navigation by visitors to a Web site, has also increased from a year ago, by almost ten percent. In direct contrast, Web link "arrivals" of visitors has dropped in the past year, by a somewhat staggering, twenty percent!

The World Wide Web quite obviously has now become more utilitarian to consumers, and linking campaigns, as a result, may become more ineffective as time goes on. Linking campaigns, by their very nature, promote "browsing" and the consumer finds time-consuming “visiting” of many sites, before the product/item/service. As the Web progresses and consumers become increasingly discerning in their overall approach to the Web, they are now going right to the source, more often, via "search features" and direct navigation.

Accordingly, then, the "digging around" on other sites, has diminished over the past twelve months, and in all likelihood, will continue as a trend well into the future, hampering the effectiveness of linking campaigns overall. This trend reflects an international shift towards this method of finding information on the Web, and is not localized whatsoever, crossing many demographic and geographic barriers.

It's really difficult to effectively pinpoint the cause in this shift for consumers. However, the sheer magnitude of the linking campaign craze that is so prominent now, may account, at least in part, for the shift in the attitudes of consumers. Because of the popularity of linking campaigns as a method of increasing rankings and placement, attaining "quality" links (those with a Page Rank of 5 or higher) has become more difficult for Web masters. In addition, the sheer volume of linking requests to pages with a high ranking, has also increased, to the point where higher ranked Web sites are inundated daily with linking requests, interfering with their ability to attend to their own business.

Web masters have now oftentimes taken to using any links whatsoever; as long as the links added have the appropriate Page Rank. Little thought seems to be given at times, to the theme of a links page or the relevance of links that have been added, leaving visitors to some sites confused and frustrated. This will in all probability lead consumers to turn to the Search Engines and direct navigation even more in the future, not less.

This could have dire consequences for many Web sites down the road, as those at the bottom of search listings could conceivably be forced out of business.
There are methods however that can aid in the retention of top rankings and listings with the Search Engines, in and above linking campaigns.

These methods would also hold greater appeal for consumers in general, as they would add quality to a Web site, as well as content, something that will add "longevity of appeal" to a Web site:
1. The writing of good, content oriented copy, which imparts value to a Web site. Good copy has always been utilized to establish good overall traffic and conversion patterns. Even Search Engines seem to understand this and routinely rank Web sites with good pertinent content, higher than other Web sites.
2. The placement of ads on high traffic sites. Just one good ad, placed on another Web site with good overall traffic, will significantly increase rankings and placement by the Search Engines.
3. The submitting of a Web site to all possible, pertinent directories. Directories were always a good method of increasing rankings and placement, and they still, to this day, are a good choice.
4. The optimization of all other aspects of a Web site, from the meta-tags to the design. Meta-tag optimization, like directory listings, continues to be a good overall optimization technique. The design of a Web site can also enhance rankings and placement, as the site needs to be "readable" to the Search Engines, and some flash and other enhancements, can prevent "readability", thus hampering rankings and placement.
5. The enhancement of traffic by offline marketing campaigns. This is one facet of Web site traffic management that many individuals neglect, but that can successfully increase rankings significantly.
6. The use of PPC (Pay Per Click) campaigns. While these can be expensive, if care is not given to the bidding, they can also enhance traffic to a Web site, as "traffic begets more traffic", establishing a ranking pattern for the Search Engines.
7. The addition of keywords that are relevant to a site, throughout the copy, the title, and the meta-tags and any other text, such as articles and reports. Keywords are the "guides" that the Search Engines use to find a site and rank it. The addition of good relevant keywords always enhances rankings and placement.
Linking campaigns, as you can see, while having their overall place in effective rankings and placement within the Search Engines, are not the "be all and end all" of optimization or rankings. Many various fundamentally sound methods of optimization still exist, and should be utilized in any well-rounded Search Engine Marketing campaign.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

INTERNET – WEB PORTALS

Search Engines & Web Portals Going 1GB Email Crazy
Making news yesterday, Lycos Europe introed a paid 1GB email service which beat the slow paced Google GMaillaunch. However, GMail’s functionality may make it stand out to users and web emailers more so than its added storage size. Besides, other established mail servers have already or are starting to offer 1GB mail accounts. Here’s a comparison of search related email account offerings from Pras at Cinematic Rain
Yahoo! Mail:
- Upgraded their free accounts to 100MB 1GB mail coming soon
Lycos Mail:
- 1GB available for about $6 a month
Google GMail:
- Still in beta testing
- No news of when it will officially be launched to the public
SpyMac:
- 1GB email accounts
- 350MB combined storage

The “All-You-Can-Eat Buffet” Effect
Finally the mailbox providers are realizing its not about how much storage people are really going to use, but instead of actually offering a whole lot of space. Its like a buffet, you offer tons of food and unlimited servings. But out of the potential diners, only a few will gorge themselves till they’re racing to the restroom.
All that aside, one must ask, where is Hotmail nowadays? Are they happy to be stuck with 2-4MB storage? What does MSN have up their sleeve, if anything?
Yahoo and Hotmail don’t change their ways, their advertising cluttered email pages will send mass pilgrimages over to Google GMail and other similar offerings, about two of the best-known e-mail services, MSN Hotmail and Yahoo Mail (my least favorites), I visualize their ad-laden, cluttered screens.

GMail knocks Hotmail and Yahoo! Mail hard. Speed is extra ordinary. It simply is too fast that you fear if it’s indeed a secure service.” Mittal adds his opinion on GMail’s controversial email content targeted Google Adwords advertising, I did not see many ads. In fact most pages did not have any. One big mail with some good content showed the adsense ads, which are creating furors in the market. They are not intrusive, irritating. They just are present at one side. It’s not something that’s in your face. And that is something wonderful. Compare that to Yahoo’s big flash ads and Microsoft’s heavy pages.
Just when things were starting to heat up in the big search engine version of King of the Hill, Google came out with their 1GB GMail, stirring the pot and starting a new battle trying to get registered mail users to their search friendly email systems. It should be interesting to see how MSN, Yahoo and others fully respond.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


Tuesday, May 18, 2004

HIGHLIGHTS

IT – Software Tech

Citrix tests Web conferencing service
Citrix Online hopes to build on its popular GoToMyPC service for remote computer access with a new Web conferencing program.

The company, a division of networking software seller Citrix Systems, plans to begin offering a free preview version of GoToMeeting on Monday. The service enables customers to present PowerPoint slides, run applications and handle basic collaboration tasks over the Web.

The service will compete in an increasingly crowded market dominated by Web conferencing specialist WebEx. The niche has drawn attention from major software makers such as Microsoft and Macromedia.

Citrix Online will distinguish its service partly through simplicity, said Klaus Schauser, chief technical officer for the Santa Barbara, Calif., and company. Instead of loading the service up with complex interactivity and polling features, GoToMeeting will focus on what actually happens in meetings: talking and looking at PowerPoint slides.

"We're focusing on everyday meetings--this is not a Webinar product; this is not a training product," Schauser said, making the comparison with online seminar products. "Our motto has always been that 'simpler is better,' even though there are some pretty sophisticated capabilities in the product. We can very quickly go from something that's presentation-only to something that's more interactive."

The simplicity goal will also extend to pricing. Citrix Online will charge a flat monthly fee based on the number of simultaneous users, rather than the per-minute pricing typical of the market.

Matt Reid, a senior vice president for product marketing at Citrix Online, said the goal is to make online meetings an everyday choice to improve productivity and cut down on travel and other expenses.

"People like the technology around Web conferencing--they just aren't using it as much as they could," Reid said. "And the product needs to actually get used to generate the savings. That's why we really want to make sure it's affordable for the masses to use."

The paid version of GoToMeeting is set to launch in July. The basic service will cost $49 per month, or $468 per year.

Citrix Online is mainly known for GoToMyPC, a product it acquired from specialist Expertcity that allows any PC to be accessed remotely over the Web.
Source; CNET News.com, May 2004
Write; by David Becker

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Telecommunications – Mobile

Kejian launches GSM phones in India
China Kejian Corporation has launched several GSM phone models in India; the prices range from Rs 4,905 to Rs 16,650. All phones come with a lifetime warranty against manufacturing defects.
Kejian has entered into an exclusive relationship with the Rajgarhia group, under which Trust Telecom Technologies, a new entity floated by the Rajgarhias, will represent, sell and service Kejian handsets in India and the SAARC region.
India is the first foreign market where Kejian has launched its products, and the company is aiming to invest heavily in positioning and branding here.
Source; Express Computer, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Telecommunications – VoIP

Hanoi Telecom Interconnects with T-Systems in Vietnam
Hanoi Telecom has interconnected its network with T-Systems, allowing Hanoi to have its international calls routed over T-Systems' IP network.
T-Systems established nine PoPs within the country. T-Systems is using VocalTec's packet tandem switching solution for the deployment.
Source; Hanoi Telecom

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Internet – Legislation

FCC Plan Would Use Vacant TV Channels For Internet Connections
Lengthy Rulemaking Process Under Way
Washington - Federal regulators have endorsed a plan to use vacant TV channels for high-speed Internet connections. Federal Communications Commission Chairman Michael Powell says it would "dramatically increase" the availability and quality of wireless Internet connections - especially for people in rural areas. Powell says it would be like "doubling the number of lanes on a congested highway."
But TV broadcasters oppose the proposal. They argue that it would interfere with over-the-air television signals for millions of people. The FCC commissioners voted unanimously to begin the lengthy rulemaking process for the plan.
Source; Copyright 2004 by The Associated Press. All rights reserved. May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

IT - Law

Lebanon still the pirates haven
Music piracy levels in Lebanon are still over 70 per cent, way ahead of the next worst Egypt at 50 per cent, according to the International Federation for the Phonographic Industry. Piracy is reckoned to cost the global music industry some USD4bn annually.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Internet – Airlines

Connexion and Lufthansa Launch World’s First Airborne Internet
Connexion by Boeing and Lufthansa German Airlines made history today on flight LH 452 from Munich to Los Angeles by giving passengers the opportunity to be the first in the world to experience real-time, WiFi-based, high-speed Internet connectivity on a commercial flight route. The successful launch of Connexion by Boeing’s commercial airline service was confirmed by e-mail at 3:18 a.m. Pacific time when David Friedman, vice president of Marketing and Direct Sales, sent the following message to his team on the ground: “Hello from 33,000 feet above Germany. The system is on and everything is A-OK. Lots of buzz on board, as this is the start of a new era of communications and aviation history.”
Source; Lufthansa Airlines, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

FOCUS

Telecommunications – UMTS

Russia Preps for 3G
The huge boom in Russia’s cellular industry has led carriers to plow investment into regional W-CDMA (Wideband Code Division Multiple Access) network trials, with analysts touting the country as a potential hotbed of 3G activities.
By the end of April 2004 wireless penetration in Russia had reached 30.8 percent, taking the total to 44.7 million subscribers, according to analysts at Moscow-based J'son & Partners.
With GSM (Global System for Mobile communications) technology dominating 95 percent of the market’s current cellular services, Russia is expected to adopt the European W-CDMA standard as its 3G technology of choice.
The W-CDMA air interface is part of the Universal Mobile Telecommunications Standard (UMTS). Used with existing GSM core networks, the theory goes, W-CDMA-compliant handsets and base stations can increase wireless data transfer rates to a potential maximum of 2 Mbit/s.
In its latest report, J'Son & Partners states that Russian carriers have conducted extensive trials of W-CDMA networks over the past three years.
Mobile TeleSystems OJSC (MTS) the country’s largest carrier (16.1 million subscribers), has trialed kit from NEC Corp.; Tokyo: 6701), Siemens AG; and Huawei Technologies Co. Ltd. Number two, JSC Vimpel-Communications (VimpelCom) (13.9 million) has tested equipment from Alcatel SA; Third-place MegaFon (8.1 million subscribers) is testing kit from LM Ericsson NEC, Nokia Corp. and Siemens.
J’Son claims that 3G licenses are likely to be awarded in the fourth quarter of 2004 and the first quarter of 2005, with network deployment slated for the second or third quarter of 2005. Commercial 3G-service launch “in major Russian cities” is expected in the first and second quarters of 2006.
The Russian 3G market has a great potential to develop through a combination of positive circumstances. The government has a key role... by limiting the influence of market inhibitors and ensuring success through a timely and intelligent development of 3G.
The attraction of Russia’s cellular industry has already led a number of Europe’s Tier 1 carriers to take significant stakes in the market’s three main players. T-Mobile International AG has a 25 percent stake in MTS, and Telenor ASA, which is keen to build a growing presence in the region, holds a 29 percent stake in VimpelCom. Scandinavian powerhouse TeliaSonera AB that is also amassing mobile assets in Northern and Eastern Europe owns 43.8 percent of MegaFon.
Vodafone Group plc is also rumoured to be making a move on the market following its failed bid to take over AT&T Wireless Services Inc. (NYSE: AWE - message board).
Strategically, Russia is a very important market for carriers, there is the potential for huge growth, and many global carriers will be gauging the opportunity for 3G. The fact that licenses are set for award in the next twelve months is another reason why Vodafone may be eyeing up the market.
Source; market sources and corporate data, May 2004-05-18
Write; by LuisB

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


Friday, May 07, 2004

HIGHLIGHTS


e-Business – Asean

Piecing together a Chinese software giant
Hong Kong-based chinadotcom, considered a "pioneer of China’s Internet," is reinventing itself as a provider of enterprise software to Chinese manufacturers. The company rose to prominence as a major player in the Chinese Internet portal market, but has now embarked on a series of acquisitions and partnership agreements in the USA, Canada and India to beef up its presence in the enterprise software market. Also on tap: plans to turn the company into a "software outsourcing shop." While most tech analysts are bullish on the company’s prospects, the article points out that chinadotcom "will face plenty of competition" from enterprise software rivals in China such as SAP and Oracle.
Source; Business Week, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Business – Technology

Sun Microsystems opens smart-tag plant
Sun Microsystems plans to open a 17,000-square-foot RFID test facility in Dallas as part of a strategy to help manufacturers meet a January 2005 deadline imposed by Wal-Mart for using RFID tags. According to Sun, Wal-Mart suppliers will be able to load pallets of actual products in their original packaging and "run them through mock-ups of loading docks," enabling them to test whether RFID-tagged products can be read by Wal-Mart systems. Three other tech firms - Nortel Networks, Texas Instruments and i2 - will join Sun Microsystems in the RFID initiative. If all goes according to plan, Sun will open a similar RFID facility in Scotland by the end of the summer.
Source; AP, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Business – Corporate

SCO cuts jobs to reach product profit
In an effort to restore its core business to profitability by the end of July, the SCO Group has made an across-the-board reduction in its workforce. The company did disclose the exact size of the layoffs, noting only that less than 10% of the workforce would be affected. SCO also noted that the move to shore up financial performance was not the result of pressure applied by BayStar Capital, which earlier threatened to pull its $20 million investment. In its most recent quarter, SCO posted a net loss of $2.25 million on revenue of $11.4 million.
Source; News.com, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Internet – Entertainment

Sony launches online music service
Sony Connect, the latest entrant in the increasingly crowded digital music market, will offer more than 500,000 songs from artists on major and independent labels at the standard price of 99 cents each. In addition, Sony Connect will offer full album downloads starting at $9.99. Sony - like its competitor Apple iTunes - hopes that its online music service will lead to additional sales of its audio devices. But, as critics point out, the company’s late start in the market may be difficult or impossible to overcome: "They're behind the curve already and they have to play catch-up on two fronts, on selling their audio players and getting people to use their music service. There's roughly three to four million people that have already placed that bet."
Source; AP, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Internet – Business

E-biz strikes again!
The disruptive power of the Internet means, "big companies are again under assault" in a number of very different industries. As during the late 1990s, the Internet is "threatening to force down the prices charged by traditional players, squeeze their margins, and even put some out of business. New technology, new ways of doing business and new approaches to cutting out the middleman mean the old pricing power is collapsing in a series of industries…" Business Week trains its eye on six industries that are about to be disrupted: jewelry, bill payments, telecom, hotels, real estate, and software. While nobody is claiming that this is "1996 redux," the fact remains that the online players that survived the brutal Internet shakeout are stronger, savvier and leaner than their boomtown brethren.
Source; Business Week, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

e-Activities – Internet

Blogs counter political plottings
Political activists are embracing the power of the Web – especially online community networks and blogs - in order to "re-engage people" in grass-roots political movements, according to panelists at a recent journalism conference at UC-Berkeley. According to one social networking expert at the conference, the Howard Dean campaign has been a key catalyst: "We'll look back and see (the Howard Dean presidential campaign) as the beginning of the change." The key, say political activists, is to understand the "traditional ways campaign work" - and then use new Internet-based tools to counteract these tactics. Included: a few tips for motivating blog audiences and re-energizing social networks.
Source; Wired News, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

FOCUS


Telecommunications – Canada

Canada's phone giants face Internet threat
Examines the impact the emergence of VoIP service geared is having on the Canadian communications industry and the regulations that govern it. At issue is the same debate that rages in the U.S.: whether VoIP service will be taxed or regulated at all. The article notes that the Canadian Radio-Television and Telecommunications Commission (CRTC) recently began a review of existing regulations as well as relays the comments of some of Canada's fixed-line providers who say existing rules discriminate against them. The CEO of Bell Canada Enterprises, for instance, said in recent remarks that regulators must recognize that "once-separate industries have become one common industry, that needs common public policy treatment."
Source; New York Times, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Government – India

Pension contest looms in India
Government plans to open up retirement-investment market
New Delhi - Sanjay Sachdev visited six Indian ministries over eight years to push for an overhaul of the country's pension system. He says it was time well spent.
"India has the potential to be one of the largest pension markets in the world," said Sachdev, managing director of Principal Mutual Fund, the Indian subsidiary of Principal Financial Group, the biggest provider of retirement plans to U.S. companies.
After more than a decade of debate, the Indian government this year plans to license private fund managers to invest the savings of India's 400 million public and private workers - about 90 percent of whom have no retirement security, according to a government-commissioned report.
Principal, ING Groep, Merrill Lynch, Aviva and about 20 other asset managers are vying for access to a market that India's Finance Ministry forecasts will be worth $100 billion within a decade. The number of licenses has not been decided.

"The pension business in India has the potential to grow up to $350 billion during the lifetime of a generation," said Yvo Metzelaar, managing director and chief executive of the Bangalore- based ING Vysya Life Insurance, a subsidiary of the largest Dutch financial services company. "Pensions have become a top priority for us."

Metzelaar has concerns, too.

India has no social benefits system and most workers earn less than $1,000 a year, meaning they will struggle to build pension assets.

"The presence of a social security system in India is very important for a thriving pension system," Metzelaar said. "A social security system provided by the government will cover the basic minimum level of pensions these people need."

The pension process is unlikely to be straightforward in any case. Last year, the Indian government set up an interim Pension Fund Regulatory and Development Authority to frame rules that will be enforced by a new, independent authority. Parliament must still approve that new watchdog - a move that is on hold until after a five-phase general election ends on Monday.

License applicants may face further delays because the current pension plan does not provide any government guarantee, said Mukesh Anand, an economist at the New Delhi-based National Institute of Public Finance and Policy.

The Finance Ministry says details about the number of pension licenses, the method by which they will be awarded and rules governing both funds and contributors will be published by the end of the year.

License holders then must overcome the challenges of distribution in a country with 1 billion people.

Uncertainties have not cooled the enthusiasm of companies. Indians, about half of whom are under 25, deposit $78 billion a year into fixed and savings accounts in commercial banks, according to a government survey. Their savings make up 14 percent of the economy.

"The challenge is to channel these savings into long-term investments to finance infrastructure that India needs," said Sachdev at Principal. "That's where pension fund companies come in."

HSBC Holdings, ABN AMRO Holding and Deutsche Bank are among banks to set up asset management companies during the past three years in anticipation of pension reform.

Insurers such as American International Group, the Munich-based Allianz and Standard Life Assurance, based in Edinburgh, Scotland, have established joint ventures with Indian partners in line with a rule limiting foreign investment for insurers to 26 percent.

"When we entered the insurance business in India, the understanding was that the pensions market would also be opened up," said Stuart Purdy, chief executive of the New Delhi-based Aviva Life Insurance, a subsidiary of Aviva, Britain's largest insurer by premiums.

Aviva, which started selling Indians life insurance in 2002, will apply for a pension license. "It's such an under-provisioned market and the savings rate is huge," Purdy said.

The prize license will cover India's 3.2 million federal government workers. Since Jan. 1, about 50,000 new employees a year have had to contribute 10 percent of their wages to a fund still to be set up.

The government is matching that contribution, with all funds held by India's controller-general of accounts until licenses are awarded.

Previously, the government paid all contributions for its current workers and 7 million retirees, or their surviving dependents, from its revenue. Its pension bill quadrupled to $3.5 billion in the decade to March 31, 2003, Finance Ministry figures show, or 3.2 percent of total spending.

"Reforms are overdue - people are living longer and they need security," said K. C. Mishra, director of the National Insurance Institute. "The government's own pensions bill is becoming unmanageable."

Whoever wins the government-fund license also will have access to voluntary contributions by about 350 million self-employed workers and seasonal contractors, from rickshaw drivers to doctors.

Workers in India's 28 state governments and its state-run companies, such as Indian Railways, the world's biggest employer with 1.5 million workers, are expected to join as well.

"The numbers will grow," said Mukul Asher, a public policy professor at the National University of Singapore who advised the Indian government on pension changes. "Overseas investors are right to get excited."
Source; Bloomberg News, May 2004
Write; Cherian Thomas

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

POLICY NEWS

e-Democracy – Political

Electronic voting still in infancy, critics say
The Election Assistance Commission established by Congress to guide the transition to electronic voting is having its first meeting today. With only six months until the presidential election, no policy is in place to govern the development and supervision of e-voting machines, reports the piece, and "the federal research intended as the basis of the standards has not been financed, much less begun." Most pressing is the widespread desire for e-voting machines to leave a paper trail due to security concerns. Doug Chapin of www.electionline.org: "If you think of election problems as being like a forest fire, the woods aren't any drier than they were in 2000, but more people have matches."
Source; Washington Post. May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Internet – Intellectual propriety

Report: Other nations doing more to combat piracy
The Office of the U.S. Trade Representative (USTR) Monday released the Special 301 report, its annual report on intellectual property rights, praising countries like Poland and the Phillipines for passing anti-piracy legislation. The article reports that the European Union made USTR's "Priority Watch List" for countries or unions slacking on intellectual property protection or enforcement. According to the International Intellectual Property Alliance, the U.S. economy lost ""about $10 billion to intellectual property theft in the 52 nations listed in the report in 2003, not including Internet piracy."
Source; InfoWorld, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

BioTech – Research

Sea of dreams
A good overview of the growing field of industrial biotechnology with discussion of the efforts of Craig Venter's Institute for Biological Energy Alternatives and companies such as Diversa that are prospecting for genes that could be used in chemical and industrial processes. The article says the industry's in its "infant" stage but is "rapidly developing" as researchers search for ways in which to make "useful chemicals via genetically modified organisms." As an example the piece presents the case of Diversa and its search for genes that can be exploited for such purposes in locales such as hot springs, ocean beds, and the Arctic tundra. A prediction worth noting: McKinsey says that about 5% (by value) of the world's chemical output is bioetch-based, a number that's expected to grow to 10% over the next six years.
Source; The Economist, May 2004

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

DIGITAL DIVIDE

Humanitarian - Korea

Korea crash stirs South's hearts, hopes
South Korea, Seoul - The images of the burned faces of semiconscious children have tugged at South Koreans' deepest sensitivities, as well as their purse strings, following the North Korean train explosion that killed at least 169 people and injured more than 1,300 others.
Source; The Christian Science Monitor, May 2004
Write; by Donald Kirk

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -