IN THE PAPERS
In The Papers 26 May
26-05-2009
by Sylvia Leatham
China to get Android smartphone | Vodafone loses tax-avoidance case
The Irish Times reports that O2 is launching a new service that allows mobile phone users to block unwanted messages from other phones. Read more on this story on ENN.
The paper also reports that web and mobile technologies risk following the path taken by radio, TV and film -- moving from being open and entrepreneurial markets to markets monopolised by one or several large companies. That's according to Tim Wu, a professor at Columbia Law School, who spoke on Monday about the future of telecommunications at the Institute of International and European Affairs in Dublin. Wu is writing a book that ponders the question of whether it is a natural progression or a choice for new technology to follow the pattern of invention, founding, opening up into an all-inclusive entrepreneurial market, and then being dominated by the major company in the market. When states regulate these industries they should aim to have a market entry price which makes it possible for a large number of people to start a new company, Wu said.
The Irish Independent says that Bahrain-based private equity firm Arcapita, which owns electricity company Viridian, has emerged as a potential buyer for Eircom. The other private equity group involved in discussions that could lead to a sale of the beleaguered telecoms firm is CVC Capital Partners, which is housed in Luxembourg. Eircom executives are this week putting case-for-investment presentations to the two groups and Singapore Technologies Telemedia.
The Irish Examiner reports that the Limerick Regeneration Agency is proceeding with the installation of a major CCTV system throughout Southill to improve security on estates. While the new system will cost EUR600,000, the regeneration agency for Southill has received a commitment of EUR400,000 from the Department of Justice and Pobal, the organisation set up to assist developments in socially disadvantaged areas and under-resourced communities.
According to the Wall Street Journal, China's HTC will next month begin selling a smartphone based on Google's Android operating system, the first Google-based phone in the Chinese market. The new HTC phone is a version of the company's Magic model, unveiled in February, that has been customised to incorporate software from China Mobile. Taiwan-based HTC launched the world's first Android-based smartphone last September and remains the only vendor shipping Google phones.
The paper also notes that Vodafone Group has lost a UK tax-avoidance case in the Court of Appeal that could cost it as much as STG2.2 billion, although the company can still apply to the House of Lords to appeal the decision. The case, brought by Her Majesty's Revenue & Customs after Vodafone won a High Court ruling last July, relates to the payment of taxes on one of the company's Luxembourg subsidiaries. The ruling means the government's inquiry into Vodafone's relevant tax returns can go ahead.
The Financial Times reports that Bharti Airtel, India's biggest mobile operator, has revived talks with MTN of South Africa for a cross-share holding deal that could lead to a full merger and the creation of one of the world's biggest telecoms groups. The cash and share swap would value MTN at about USD19 per share -- a market capitalisation of about USD36 billion. Were the companies to merge, they would have a combined market capitalisation of about USD63 billion based on Monday's stock prices. With more than 200 million subscribers, it would be the third biggest operator in the world after China Mobile and Vodafone, although revenue would be only about a third of that of the other two.
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