| Nokia Delay Siemens Merger |
19/12/2006 |
| Cell phone maker Nokia and telecommunications equipment maker Siemens are postponing the merger of their mobile-network units because of an ongoing investigation into allegations of bribery at Siemens.
The deal, which will create a new company called Nokia Siemens Networks, was supposed to be finalised January 1, 2007. But in a press release last week, Nokia said it expects the deal to close in March.
Nokia said it is postponing the deal because it is concerned about the ongoing bribery investigation that has already led to the arrest of several former Siemens employees, including Thomas Ganswindt, former head of the German company's telecommunications equipment division.
"In light of the current investigations of Siemens, the scope of which includes the carrier-related business to be transferred to the new company, Nokia and Siemens intend to adjust their agreements in order to have Siemens conduct an appropriate compliance review prior to closing of the transaction," the company said in a statement. "This adjustment is an addition to the previously agreed closing conditions. Nokia will participate actively in the review."
Siemens and Nokia, based in Finland, announced plans to merge their wireless-equipment divisions in June. The new company would combine wireless products from both companies that are sold to telephone operators. |
| 40 New Jobs as Unicom Opens In Newcastle-Upon-Tyne. |
18/12/2006 |
| Telecom service provider Unicom, which specialises in supplying small businesses, has opened a website sales office in Newcastle-upon-Tyne, creating 40 new jobs.
The Manchester-headquartered business, which recently reported record annual growth, opened the new regional office in response to demand from North East businesses for its website design and hosting service.
"The vast majority of small business owners appreciate the benefits that having an online presence will have for their business, but are usually put off by the high design costs, and most do not have the time or skills to design and develop them themselves," said Chris Earle, Unicom's Operations Director.
"It is becoming common practice for consumers of all goods and services to only make a purchase or use services after viewing the seller's website - a website provides comfort and credibility, as well as information about products and services. There is a danger that small businesses will be left behind their larger competitors by a lack of an online presence - at Unicom we hope that we can help reverse this trend.
"We have created a package at £19.99 per month for website design and hosting - with no upfront fees. This works out at 66 pence per day and means that we remove a key concern for small business owners who think that they cannot afford a website.
"We design the site and make it available on the web. Simple as that. And now we're bringing the service to small businesses in the North East.
"We provide our customers with highly competitive prices, which we fix for three years, and we ensure that all customers genuinely receive the highest possible levels of service - that makes us extremely attractive to those customers, and also drives loyalty," said Chris Earle.
"We're a small business with a small, closely-knit and efficient management team - and we are absolutely clear in our minds about what makes the difference to our customers: a UK call centre with real people answering the telephone, 98% of calls answered within six seconds, and managers and directors who are hands-on and accessible. |
| Redstone Closes £16m School Project |
18/12/2006 |
| Reseller Redstone has successfully concluded contract negotiations for the design, implementation and managed IT services for the Lancashire Schools for the Future project. The project will see the building of nine new secondary and primary schools over a three year period starting January 2008.
Working in a consortium with Catalyst Land Lease, Capita Symonds Group and financiers; Halifax Bank of Scotland, Redstone's Converged Solutions Division and Managed Solutions Division will be providing the complete integrated IT and communication systems for new schools to be built in Lancashire, along with a seven year managed IT services contract which will commence in September 2008.
The project, which is part of the first wave of the Government’s Building Schools for the Future programme, will be completed in three phases between 2008 and 2010 with three schools delivered in each of 2008, 2009 and 2010. The combined ICT project is worth in the order of £16m. Redstone's phase 1 contract for the first three schools is worth £6.3m and, as the exclusive provider of ICT equipment and management services for the entire project, expects to contract for phases 2 and 3 in due course.
Martin Balaam, CEO Redstone commented, "This contract demonstrates the value of the combined skills of Redstone Converged Solutions and Redstone Managed Solutions and further cements Redstone as one of the leading IT and Communications integrators in the UK and Ireland. It is also satisfying to see that the investment the Company has made in tendering for major long term projects is paying dividends and underpinning future revenues." |
| BT Tackles Pension Deficit |
18/12/2006 |
| BT is to put more money into its pension fund during the coming years after the deficit increased to £3.4bn.
The deficit, which has to be calculated every three years, was arrived at using a more conservative actuarial methodology, BT said today. The method used when the deficit was last calculated in 2002 would have shown "a modest surplus" for the end of 2005, BT said.
BT will make an advance payment of £840m by April, representing three years' instalments, and will then pay £280m a year between 2009 and 2015. This agreement with trustees of the fund replaces a previous pledge to contribute £232m annually for 15 years. BT also increased its forecast for the annual return of the scheme to 3.2pc, up from an earlier prediction of 2.5pc. The scheme has made an average return of 7.2pc over the last 20 years.
However, BT has agreed to pay in more if returns do not reach 3.2pc a year and may contribute less should returns exceed the forecast.
Sir Christopher Bland, chairman of BT, said: "This is a fair and prudent deal for pensioners and for shareholders which re-confirms that BT stands fully behind its pension obligations."
Most of the deficit stems from the defined benefit scheme, which BT closed to new members in April 2001 and replaced by a defined contribution scheme.
BT said the existence of the Crown Guarantee - an insurance policy to protect the pensions of BT staff should the company go bust that was granted at privatisation in 1984 - has not been taken into account. A BT spokesman said no agreement has yet been reached with the Department for Trade and Industry about the extent of the Crown Guarantee, which BT argues covers 75pc of their scheme. |
| IT Directors Voice Concern over IT Effectiveness |
18/12/2006 |
| Over half of UK IT directors within the financial services sectors wish to upgrade their IT networks in a bid to boost network performance and deliver better business results, according to a Vanson Bourne survey of over 300 IT managers.
The study, commissioned by value-add distributor of best-of-breed open-system convergent solutions provider Zycko, discovered that 73% of financial services respondents are concerned about IT not delivering results for business. The same percentage also stated that they lost sleep over the poor performance of their IT systems.
In addition, 71% of respondents claimed that maintaining network performance for end users is their primary networking headache.
David Galton-Fenzi, group sales director at Zycko, said: “The IT director within a financial services company is faced with many challenges - compliance, managing and securing growing data volumes and ensuring it is always accessible for employees.
“Bottlenecks or Internet downtime is not an option because this could result in lost business opportunities, annoyed customers, increased client churn, financial loss and in some cases financial penalties. As such, the pressure to deliver new technologies, including VoIP or video conferencing services is intense.”
According to the research, 40% of financial services IT directors questioned admitted that being locked into proprietary systems with expensive licensing upgrades is their heaviest grievance.
Data management, such as securing increasing data volumes, also continues to plague financial services IT managers, with 39% admitting that it is a major headache.
Half of all respondents also admitted that they are not happy with their current supplier and 59% stated that they believe open standards networking will deliver significant cost savings, for example through improved choice and flexibility.
“IT managers have traditionally relied on tried and tested brand names for their networking requirements, but 2007 will see a revolution in purchasing,” added Galton-Fenzi. “The market is growing and there are already high quality open standards networking systems available to deliver the best performance available. Moving to open systems can help alleviate network headaches, save money and improve overall business performance.” |
| Siemens Former Telco Chief in Custody as More Cash goes Missing |
15/12/2006 |
| Reports throughout European press are saying that pressure is mounting on top executives at Siemens after the arrest of a former senior manager in a growing investigation into possible corruption at Europe's biggest engineering company.
The firm is now saying it is probing possible bribery of more than £283m in consultancy payments, more than twice previous estimates.
Thomas Ganswindt is the most senior former manager to be detained in the investigation so far. Munich prosecutors said they had taken the former head of the company's telecoms equipment division into custody as part of an investigation into the siphoning off of millions of euros into overseas funds as possible bribes for contracts.
German reports cited former colleagues of Ganswindt claiming he had known about and participated in the alleged embezzlement scandal. Ganswindt, who was once seen as a potential chief executive of Siemens, left the firm in September, after 17 years, to become chief executive of Luxemburg-based metering service company Elster Group.
The Schutzgemeinschaft der Kapitalanleger, a stockholder representative group that protects the interests of minority shareholders, has now asked former Siemens chief executive Heinrich von Pierer to step down as the head of its supervisory board. But Von Pierer, chairman and chief executive from 1992 to early 2005 when most of the siphoning is alleged to have taken place, has so far resisted calls to resign and said he would play an active role in investigations.
"If we were to construe a political responsibility in every case, we'd have a new management every couple of months," he said, adding that it was not the chief executive's job to check each single payment that was made. He repeated the claim by Siemens that a "group of employees" had teamed up to cash in at the company's expense. Chief financial officer Joe Kaeser said not all the payments under investigation were necessarily dubious.
The group's supervisory board said this week it had hired legal firm Debevoise & Plimpton as well as Michael Herschman, one of the founders of Transparency International, to examine its compliance rules and systems.
The German group was earlier this week forced to rewrite its full-year profits figures for the year to 30 September from 3.11 billion to 3.03bn, just a month after reporting the numbers.
Munich prosecutors have reported that they believe a criminal gang within the company may be behind the shortfall.
It had been feared that the company could be forced to revisit figures dating back as far back to 2002. However, the company said this week there could be further adjustments and investigations by US authorities.
German police last month raided more than 30 of the company's offices as part of the investigation. The searches, conducted by some 200 tax inspectors, also extended to the homes of some of the company's top managers. |
| Entanet Welcomes New Ofcom Broadband Rules |
15/12/2006 |
| UK wholesale provider of converged voice and data connectivity services, Entanet, has welcomed Ofcom’s decision to force ISPs to hand over MACs (Migration Authorisation Codes) without delay when users want to switch broadband providers. However, it says that the regulator must come down hard on any ISPs that fail to hand over MAC codes if the new rules are to be effective in encouraging competition.
The new rules will take effect from Valentines’ Day – the 14th February – next year.
The key points are as follows:
• Communications Providers (CPs) must comply with the MAC process
• CPs will not be able to withhold MACs where the customer owes them money (debt blocking), nor will they be able to charge for MACs
• There will be obligations upon resellers to give MAC to end users
• Ofcom will have the power to formally investigate potential breaches and where appropriate take enforcement action against broadband providers who have failed to fulfil their obligations
Entanet has welcomed the planned introduction of the new rules but says that it will be vitally important for Ofcom to flex its muscle as soon as any service provider fails to conform.
Carol Davies, Entanet’s Business Development Manager – Data, says: “The changes Ofcom has made are very positive but they will not be effective unless the rules are strictly enforced and Ofcom comes down really hard on companies that don’t follow them in a timely manner. If Ofcom does not use its powers to investigate and act against service providers who flaunt the rules, it’ll be British businesses and consumers who will suffer, as they will not be given the freedom of choice that Ofcom is supposed to protect.”
Entanet has always given MACs to customers when requested but is aware of many customers who have wanted to migrate to its service but have been unable to because their current provider refuses to issue a MAC. Davies states: “Some potential customers have told us of various excuses, or reasons, given to them as to why their incumbent ISP is unable to provide a MAC. Ofcom’s new regulation will ensure that all Providers have to have processes in place to allow a user to obtain a MAC. BT Wholesale makes it very easy for ISPs to request a MAC using XML and in most cases a MAC can be available within hours – there are no valid excuses”.
Under the Communications Act 2003, the two principal duties of Ofcom are set out as being “to further the interests of citizens in relation to communications matters”; and ”to further the interests of consumers in relevant markets, where appropriate by promoting competition.”
Entanet also draws attention to issues now arising with LLU (Local Loop Unbundling) that also need Ofcom’s urgent and decisive attention. Under BT’s current charging structure, users who migrate from an LLU supplier are currently being compelled to pay a new activation fee of £40, rather than the usual £11 for migrations between non-LLU providers. Entanet believes this is unfair and could dissuade some users from making a switch away from LLU. As part of its migrations policy, Entanet absorbs the £11 charge but is unable to waiver the higher £40 fee.
Davies says: “A key part of Ofcom’s remit is to enable consumer choice. The very fact that migrating from an LLU provider will incur a new activation fee doesn't do much to support that aim. This may well have been something that was unforeseen when the rules around local loop unbundling were drawn up, but whatever the reasons for the current situation, it needs to be put right. We can take some encouragement from the changes Ofcom has made with regard to broadband migrations this week and we hope the regulator acts soon to urgently review the situation with regard to LLU as well.”
Entanet is also hearing complaints from potential customers who have been moved to LLU without either their knowledge or approval. Davies says: “Several of the LLU providers are moving customers over from their IPStream platform to LLU without the customers’ knowledge. Customers are coming to us with the intention of migrating, only to find that they’re currently on LLU. This means that it will cost them to move, hence taking away their freedom of choice.”
The full statement from Ofcom can be found at www.ofcom.org.uk/consult/condocs/migration/statement/ |
| Ofcom to Make Broadband Switch Easier |
15/12/2006 |
| Ofcom has announced new rules intended to ensure that customers are able to switch to a different broadband provider quickly and easily. This follows a public consultation published in August.
From 14 February 2007, General Condition 22: Service Migrations will require broadband providers to supply consumers with a migration authorisation code upon request and free of charge. The new rules will also make it the responsibility of all broadband providers to ensure that technical and operational problems such as tag on line do not hinder consumers’ ability to switch. |
| 50% of Large UK Organisations Want To Cut Their IT Suppliers |
15/12/2006 |
| Research by Matrix Communications shows enterprises believe they are using 20% too many IT suppliers
Matrix Communications, the UK Virtual Network Operator (VNO) and wholly owned subsidiary of the Calyx Group plc, shows that the industry trend among large UK organisations to aggressively streamline their business operations for leaner growth will hit IT suppliers hard. The research, taken from a survey conducted by Matrix Communications among senior IT managers, found that 53% wanted to reduce their number of contracted IT suppliers and solutions providers. Across all respondents, the average number of IT suppliers used presently is 5.54, while the desired number was given as 4.32 – a reduction of over 22%.
Respondents offered a wide range of differing reasons for why they see fit to rationalise their IT supplier arrangements. A total of 35% felt it would realise cost savings or drastically reduce management overheads, while another 24% agreed that a fewer number of suppliers would actually invest far more in meeting their business needs and objectives.
“This marks the death knell for any complacency remaining in the UK IT sector,” said Andy Mills, Sales Director of Matrix Communications. “The technology services industry may well be booming, but only for those providers offering genuine value and innovation. Large enterprises are rightly scrutinising all of their costs and processes, but this evidence demonstrates that they are putting IT under the spotlight and believing there is no small measure of waste to throw away.”
More facts and figures from the research:
•Only 12% of respondents used between one and two IT suppliers. 52% used seven or more •Of the respondents using a large number of IT suppliers, only 6% agreed they did so in order to “keep them all on their toes”
•A total of 49 respondents completed the survey in Autumn 2006; all of whom are senior IT decision makers at large UK private and public sector organisations |
| BT Fusion Now Available With Wi-Fi For Small Businesses |
15/12/2006 |
| BT has launched BT Fusion Wi-Fi for business, bringing together the benefits of fixed and mobile convergence on one mobile device, with seamless two-way handover between Wi-Fi and GSM.
The new service will give small business customers a range of benefits to increase their productivity and performance, including: high speed access to business applications in Wi-Fi mode at up to five times faster than GPRS, free access to all your fixed and mobile voice messages stored in one place, and call rates as cheap as 5p for 60 minutes from the office and out and about.
Two cutting edge dual-mode Wi-Fi mobile handsets are available from BT immediately, the Nokia 6136 and the Motorola A910. Samsung’s P200 will be added to the range next month.
When combined with BT Business One Plan, BT’s triple-play package for mobile, fixed and broadband, prices start from just £15 a month including the handset, allowing businesses to squeeze extra value from their existing BT broadband line.
In the office, or at BT Openzone hotspots, for up to 60 minutes customers pay 5p for UK fixed line calls, less than the cost of a text; 15p for calls to BT mobiles, and 25p for calls to other UK mobiles. On the move all calls to both fixed and mobile numbers are capped at 25p for up to 60 minutes.
Steve Andrews, managing director of Mobility and Convergence, said: “This is a great day for small businesses. Customers tell us they need communications services that are better, simpler and faster to help them succeed wherever they are working.
“BT Fusion brings together in one service, high speed access to critical business information, free access to all your messages stored in one place and a great value calls package – wherever you are, all on one high quality handset.”
BT’s estate of around 2,000 Openzone hotspots at premium business locations, such as airports, railway stations and hotels, as well as an increasing number of leisure sites, mean that it is in a unique position to offer customers even more places where they can get higher quality, ultra high-speed access and fixed line rates for all their BT Fusion calls.
Additionally, BT’s plans to build a first phase of 12 Wireless Cities by the end of March next year means that most of the UK’s major city centres will soon offer comprehensive, high quality, Wi-Fi coverage with Openzone access.
Andrews said: “We were the first to market in the world with BT Fusion, we’ve already offered UK businesses the first triple-play tailored for their needs and now we are the first to offer them fixed-mobile handsets using Wi-Fi, at home, in the office and out and about with BT Openzone. And we will continue to build on our extensive and growing Wi-Fi network.”
The new service also includes a free 20Mb GPRS data allowance so that businesses can use their mobiles for more than just phone calls without worry. Customers can use their handsets to access their e-mails, business applications and the mobile internet, in the office and at BT Openzone hotspots at faster speeds than GPRS.
Also available free is Call Minder Multi, BT’s smart messaging service, which combines the customer’s mobile and landline voicemail, giving them only one mailbox to call to pick up all their messages. |
| BT Signs New PBX Deal with Nortel |
15/12/2006 |
| BT and Nortel have signed a new, three-year partnership agreement to drive the uptake of VoIP, multimedia, instant messaging and mobile communications by UK enterprises of all sizes.
The new agreement aims to enhance the ability of BT's existing and new customers to exploit the opportunities for more easy to use, cost-effective communications made possible by the convergence of multiple voice and data networks into a single, efficient IP-based network. Nortel and BT are developing new solutions based on Nortel's portfolio and BT's networked IT services designed to evolve enterprise communications towards improved fixed-mobile convergence.
"BT's customers are turning to convergence to improve the efficiency and flexibility of their businesses. To support them we must ensure that we have the right partners in place with leading-edge portfolios, the highest levels of commitment and a shared vision," said Andy Green, chief executive officer, BT Global Services. "Through this new agreement with Nortel we will be working closer together than ever to offer our customers fresh solutions and perspectives on how their business can thrive in the digital networked economy."
"People are increasingly using Internet-based video, instant messaging and voice communications at home and on the move," said Mike Zafirovski, president and CEO, Nortel. "It's vital that industry leaders like BT and Nortel demonstrate the benefits that similar capabilities can bring within enterprises and organizations."
The signing of the new agreement between BT and Nortel is part of an extensive review by BT of its vendor partnership strategy. It supplements the companies' existing supplier relationship for voice and data equipment.
BT and Nortel have worked in partnership since 1990, delivering market-leading converged communications solutions to businesses in all sectors and of all sizes across the UK and beyond. BT is Nortel's largest EMEA enterprise partner and one of its three main global partners. BT is fully accredited as a Nortel Gold partner and has over 1,000 Nortel-trained technicians.
BT is the UK market leader for the supply of enterprise telephone systems (PBX/IP PBX), with a 27 percent share of total extensions for Q1 2006, according to researcher MZA. Nortel is the leading supplier of PBX/IP PBX equipment in the UK market with a 20 percent share in Q1 2006, according to the same research.
The new relationship adds further momentum to BT's drive to move this extensive installed base of Nortel telephony customers onto converged networks and applications and to win a greater share of the IP communications equipment and services market. |
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