Wednesday, June 27, 2012

EU court upholds bulk of billion-dollar Microsoft fine

European court held billion-dollar EU fine against Microsoft on Wednesday but reduced the punishment of tens of millions of euros.

The General Court, the European Union's second highest court, dismissed Microsoft's attempt to cancel the penalty, but cut the U.S. software giant fine of 39 million euros to 860 million ($ 1.07 million).

The fine was imposed by the European Commission in 2008 after Microsoft failed to fulfill an order to share product information with rivals so that their software can work with the ubiquitous Windows operating system.

The court, in a statement said it "essentially upholds the Commission decision imposing a periodic penalty payment by Microsoft to not allow their competitors access to interoperability information on reasonable terms."

EU Competition Commissioner Joaquin Almunia said the ruling confirmed that Brussels was right to impose punishment.

"Today's judgment fully vindicates the law enforcement actions that the Commission take to ensure Microsoft's compliance with its obligations," Almunia said.

"The requirement that Microsoft disclose information to their competitors as well as to allow interoperability between the dominant Windows architecture and rival work group servers offered significant advantages for users," he said.

Microsoft has expressed disappointment at the ruling but did not indicate whether it call on the European Court of Justice, the EU top court.

"Although the General Court slightly reduced the fine, we will annihilate with the Court ruling," a company statement said.


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Friday, June 22, 2012

At the Salo end of Nokia's deep crisis

Nokia workers in Room thought chief executive Stephen Elop signaled that their plant, in Europe last major mobile phone factory, survived when he visited in February, but last week he announced his closing anyway.

This last chapter in Nokia long goodbye to manufacturing in Finland will claim about 850 jobs, about 1,000 announced earlier in the year, and rob the city of 90 per cent of its tax revenue.

Once the world's dominant mobile phone provider, Nokia has been exceeded in the smartphone war to Apple and Samsung and other phones running Google software. It is also losing share in the market for more basic phones.

His strategy to reverse his fortune, leaving his own Symbian smartphone software in favor of a largely untested alternative of Microsoft, Elop's former employer, he limped from recession to misfortune.

Sales of Nokia's new Windows Phone models, the Lumia series, has been slow to pick up, while the bottom has fallen out of the market for old phones running Symbian dead end.

As recently as this week, Microsoft revealed that a new version of its software does not run on the existing Lumia range, and the Wall Street analyst said the software giant looking to make their own phones in direct competition with his new partner.

For two years, workers at Nokia have become familiar with bad news, but not yet inured to it.

"During all my time, 15 years and 10 months with a Nokia, someone was always saying Nokia will leave Finland. But it still came as a surprise," said Katja Taskinen, who took a buyout offer in a previous round of cuts this year.

Rivals have long been focused on Asia, and analysts said Nokia should do the same, but the workers believed they had made an exception.

"We promised continuity," said Anne Malm, chief shop steward of the Salo plant, which was set up in 1970 and is often held as a model for other Nokia factories around the world.

"Room is where it all started. Room was the benchmark. If there were problems in other factories, Room was the place where teams were sent to extinguish these fires."

Promises, promises

Some hope for government intervention.

"The government promised us that they will use all instruments available to help us," said Antti Rantakokko, Room Mayor.

Jukka Roos, a local member of the Social Democratic Party and a former lawmaker, said the government should not allow the country's flagship technology company to make such drastic cuts.

"The government and unions have to react and push Nokia," he said. "What the hell are they doing?"

At its peak, Nokia accounted for about 4 percent of Finnish GDP and supporting eco-system of suppliers and technology start-ups in the economy previously centered on forestry, and metalworks. Now represents less than 1 percent, according to analysts.

His problems had a knock-on effect on Finnish electronics companies, including Elcoteq, which presented the bankruptcy last October after Nokia turned to cheaper Asian suppliers.

In Sales, local unemployment is around 11 percent, already above the national average of 8 percent, and the city expect it to spike to about 20 per cent once the Nokia jobs to go.

The government has said it will accelerate an existing program in which they plan to around 300 million euros in capital spending and tax breaks for research and development during his term, which ends in 2015.

But beyond that, there was little Prime Minister Jyrki Katainen could promise when he visited the Chamber on Wednesday. He had canceled a trip to the United Nations conference in Brazil to visit Salo and Oulu, a city affected by Nokia lay-offs.

"I quite understand the cry," he said. "But we must also bear in mind that Nokia has brought us enormous wealth in the past."

He rejected suggestions that the state should buy Nokia shares, which fell to 50 per cent since the beginning of the year.

While the state holds stakes in companies considered crucial to its national interests, including forest and chemical companies, and is mostly a shareholder in the airline Finnair and energy company Fortum, owning shares does not help to overcome global competition.

While Finland is one of a dwindling band of triple-A rated countries in the euro zone, its exports have been declining, with old industries such as forestry is also struggling to compete with low-cost rivals.

Its current account slipped into the red last year, and the central bank expected the deficit to continue through at least 2014, when analysts said Nokia might be short on cash if it continues to burn through reserves in the current rate.

While analysts began to think the unthinkable, Finns find difficult to contemplate the loss of a company that has become integral to national pride.

Harri Niinisto, accidentally first Finnish President Sauli Niinisto, also Room native, remains hopeful, although he took a redundancy package from Nokia this year and set up his own consulting firm.

"Today, we can not see what will end up happening," said Niinisto. "Still, I want to keep believing in Nokia."



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Wednesday, June 20, 2012

HCL to launch a new 3G tablet for Rs. 18,000 in August

IT major HCl Infosystems divided that it plans to launch third generation (3G) tablet PC in August this year to around Rs. 18,000.

"The code name of the product is Y2, and will be released in August," said Gautam Advani, executive vice president and chief Mobility, HCl Infosystems Ltd.

He further added that the company enjoys 15 percent market share in the overall tablet market while in the sub-Rs. 10,000 category, its share is around 50 percent.

HCl Infosystems into the tablet market in October last year with the launch of 'ME Tab X1' at Rs. 10,990.

The company has launched another tablet 'U1' price Rs. 7.999 in April this year.

Advani said ME tables in the market for eight months now, and the company gets a good consumer response to them.

HCl Infosystems on Tuesday launched two models under the Beanstalk range of All-in-One PC in a price range of Rs. 37,908 - Rs. 33,696 and intelligent series notebook to Rs. 20,990.

"HCl Infosystems has a strong tradition in consumer computing products and now with the unveiling of the first set of consumer computing 2012 products we take another important step as a manufacturer of computing devices," said Princy Bhatnagar, VP and Chief Consumer Computing, HCl Infosystems Ltd.

Asked if the company bid for manufacturing 'Aakash 2', the improved version of the world's cheapest tablet PC, Advani said the company can decide only after seeing specifications for the upgraded version.

Telecom Minister Kapil Sibal said that specifications for 'Aakash 2' would be out of the end of June.

'Aakash' was released in October last year by Sibal.

It comes with a price of Rs. 2,276 only for high-end tablet PC cost anything between Rs. 25,000 and Rs. 40,000.

However, since the launch, the project was running behind schedule.


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