DMU (a.k.a. The Shadow) v. Super-GAFA

March 11, 2020 - The UK Government takes a first measure to curb the progression of a devastating global, viral phenomenon across the nation by announcing a new Digital Markets Taskforce (and that coronavirus thing, which claimed its first British life the previous week? well... let's just wait and see, keep partying, and zoom towards herd immunity).

April 7, 2021 - The Digital Markets Unit is officially launched within the Competition and Markets Authority (CMA). Announced last November, the DMU is pitched as a tough superhero powerful enough to tame such supervillains as Google, Facebook, or Amazon, the 'SMS' level baddies (that's Strategic Market Status).

For the moment our superhero regulator is a 'shadow' without a proper license, and without any legal weapons, that will only become operational next year. Because we're talking about a launch "in 'shadow' non statutory form ahead of legislation granting its full powers. (...) The government will consult on the design of the new pro-competition regime this year and legislate to put the DMU on a statutory footing as soon as Parliamentary time allows."

Which leaves lobbyists plenty of time to show their muscle - picture Clark David Kent Cameron entering a BT phone booth to change into Supermean (BTW the Ofcom will be a key partner for The Shadow).

We've already seen plenty of action earlier - remember Facebook's memorable move, and Australia lawmakers pledging to defend the orphan and widow news companies? Frankly, I can't wait for the Netflix version of the novels published by the Taskforce ahead of Christmas: GAFA's answers to their Call For Information. My favorite remains Amazon's - the way they dismiss the need to even define their kind, the way they use the words 'care' and 'harm' when one of the key regulatory fights will be over the expected 'Duty of Care' for harmful contents... they've got great screenwriters for this Digital Markets Universe!

'A tough new regulator' - at least according to the Government's press release (20210407)

mot-bile 2021

Are the French unplugging from The Corporate Matrix?

Since I've been asked by a good friend what to make of the recent 'post-6-P.M. e-mail ban' in France*, I may as well share my two cents with you.

This agreement between two trade unions and two business federations was signed on April 1st, but is more serious than presented in foreign media, and part of a wider re-negociation of the old "Forfait Jour" framework, a specific working hour plan for executives in fields known for abusive work hours (see Article 4.8.1 "Temps de repos et obligation de deconnection" in the 'Avenant Forfaits Jours'**). This new right to be 'disconnected' during off-work hours is limited to executives in the fields covered by the two signing federations: 

• SYNTEC (syntec.fr): engineering, technology, IT/digital services, consulting, surveys, HR, training...
• CINOV (cinov.fr): intellectual services in consulting, engineering, digital. 

Note that, typically, the two signing trade unions are rather progressive: the politically agnostic CFE-CGC focuses on executives, while the CFDT follows a social/christian-democratic line. France's biggest trade union, the more 'hardcore' CGT (workers, ties to the French Communist Party), refused to sign the agreement because it didn't apply to all employees in the sector. 

From now on, even in very small structures or in groups where no specific systems have been negociated yet, abused employees have something to oppose to their persecutors, and caring employers more leverage to protect overdoing workaholics (NB: 'overdoing workaholics' is not a pleonasm when you need to distinguish workhorses in your stable). 

Even with overtime, the French law imposes a minimum of 11 consecutive hours without work every day + 35 hours every week (24 consecutive hours + 11 consecutive hours). The employer, who is responsible for the health, rest, and professional-personal balance of his employees, must make sure that their daily / weekly rest periods are respected. Now employers have also the obligation to provide the possibility to 'unplug' from the company, and employees the obligation to disconnect beyond these limits ("obligation de déconnexion des outils de communication à distance"). This double obligation clearly diminishes the 'guilt factor' and burnout risks, particularly during intense consulting projects, or on startup mode. 

So yes, some companies might opt for email bans after 6 P.M. if they fancy, but such radical, one-size-fits-all solutions sound more suitable for 9-to-5 administrations than for internet start-ups.

Overall, the measure looks more preventive than punitive, a deterrent system rather than a coercive law. The text doesn't go into detail because technologies are evolving all the time, and because ultimately it's about humans living well together.

Of course, at the legal level, precedents are bound to happen, some potentially disruptive in very competitive fields... which, combined with the new 75% tax, and the projected multi-billion fine on Google, certainly wouldn't boost start-ups in France! 

But as for now, this sounds like a genuine progress. France is simply starting to adapt to our 'always on', 'smartphone slavery' times, and Germany could follow soon.

mot-bile 2014

* see for instance "Updated: The French Move To Protect Workers From After-Hours Email" (FastCompany.com - 20140410), "Mails, SMS, téléphone : Syntec reconnaît le droit des cadres à la déconnexion" (Les Echos - 20140406)
** see for instance:

• the PDF of the CFDT-SYNTEC agreement: "Avenant Relatif a la duree du travail - 1er avril 2014"
• Also on CFDT's website: the focus "Bureaux d'etudes - signature de l'avenant relatif aux forfaits jours" and the press release "Bureaux d'etudes - Des avancees sur les forfaits jours"
• On CINOV's website: "Avenant forfait jours signe".
• ...

FCC : the end of regulation or the end of non-regulation ?

mot-bile 2010 - A regulator that fails to regulate may need some fixing.

After being awarded the right to deregulate broadband by a Supreme Court ruling in 2005 on the ground that it would not be a telecom service but an information service, the FCC allowed broadband subs to plug whatever hardware or software they pleased to their access, but after that ordered ISPs to fight against peer-to-peer abuses. Comcast logically sued and won the case at a federal court.

That same FCC has also been working on a much advertised National Broadband Plan which now appears to be left to its own devices.

The only way out of this farcical situation would be for lawmakers to restore some regulatory power, a move that could prove unpopular for partisans of freedom on the liberal front (no regulation for the internet : that's fascism) as well as on the libertarian side (no regulation whatsoever : that's socialism). If Obama thought he was done with ideological battles between health care madness and financial reforms, here's yet another hot potato to catch before mid-term elections.

Korea : Onse Telecom wants to be a MVNO

Onse Telecom announced its intention to become a MVNO by 2011, lobbying the National Assembly to pass the law obliging 3 incumbents to open their networks.

The landline operator boasted it could claim 5% of the market (about 2M customers), thanks to lower rates and "differentiating" offers.

I guess Onse execs are more interested in "diversification" than "differenciation" : VoIP is bound to hit seriously their core business in Korea (international voice services - ie Shinbiro calling cards), and all 3 incumbents are also integrated fixed-mobile players, only bigger : LG Telecom is about to follow SK and KT and to merge all its telecom units.

Differenciation through creative marketing ? Don't expect support from the new mother company : Taihan Electric Wire is into wires, fibers, powerlines... Onse itself delivers equipments and systems, even if it stopped its terminal manufacturing activity last year.

Onse Telecom is expected to post profits in 2009, but that will be a premiere after an eight year losing streak. Lately, they've mostly been converting third bonds with warrants into shares...

So the message is not "Onse Telecom wants to be a MVNO" as much as "if you want to become a MVNO in Korea, Onse Telecom can help you face the big guys." Of course they could leverage on their customer base, but they also enjoy a certain technical know-how, and the experience of interfacing with different network operators. So they could position themselves as the ideal MVNE, starting with themselves as the first customer.

mot-bile 2009

3DTV, 2D screens, 1Dollar from the referee

Imagine the referee, in the middle of the game, paying from his own wallet new recruits to improve the quality of play.

In Korea, convergence is also about blending roles : mobile operators can become banks, and regulators invest directly in new technologies. Well, isn't it about regulating the pace of innovation ?

In that field, Korea Inc. usually needs to be cooled down but when it comes to 3DTV, the country's lagging behind Japan, even if LG released a product last summer.

So the KCC will invest KRW 2 bn (1,000 Korean wons = about USD .85 these days) to facilitate the first 3DTV commercial tests in the country in 2010. Too late for the World Cup ? Officials are rather mentioning the 2011 IAAF World Championships in Athletics, to be held home in Daegu (good PR), and the 2012 London Olympics. The actual target for worldwide recognition and mass market HDTV.

mot-bile 2009

Umbrellapps : iPhone but you can't VoIP

James W. Cicconi wrote a letter to Ruth Milkman on August 21, 2009, received on the same day (confirmation # 2009821776906).

In "AT&T Response to Wireless Telecommunications Bureau Letter, DA 09-1737 (July 31, 2009); RM-11361; RM-11497", Senior Executive Vice President, External and Legislative Affairs, AT&T notified Chief Wireless Telecommunications Bureau, Federal Communications Commission a few things:

- We read in the paper that Google Voice application to the Apple App Store had been rejected. AT&T was not consulted by Apple in the decision process.

- BTW : what is "Google Voice" anyway ? What lies behind that strange "umbrellapp" ? We had a quick look at their website and "'Google Voice' appears to be an umbrella term used to describe a collection of different services". Interesting, isn't it ? "AT&T expects that Google will provide a complete description of Google Voice in response to the letter it received from the Commission and we look forward to learning more about Google Voice based on that response".

- Maybe it has something to do with that other "Google Voice application specifically for BlackBerry devices, which AT&T customers may download from the Google Voice website. AT&T does not disable access to or use of this application". Who knows ? Anyway, any AT&T customer may use Google Voice on his or her iPhone without passing by that store, via web browsing. So maybe AT&T did some research on this weird app after all.

- AT&T and Apple do discuss about App services, including with third parties, to fix technical issues. And AT&T does have its say sometimes : "AT&T has discovered applications in the Apple App Store (after they had been approved by Apple) that raised concerns about the potential misuse of certain AT&T services or customer information. AT&T alerted Apple to our concerns and, in two cases, Apple referred AT&T directly to the application providers to discuss whether the concerns could be resolved. In the third case, AT&T understands that Apple addressed the matter with the application provider".

- and oh. "AT&T and Apple have an agreement regarding Voice over Internet Protocol (VoIP) functionality. Apple also is aware that AT&T’s wireless data terms and conditions prohibit subscribers from redirecting television signals." So we put on the same level VoIP and TV broadcasting. Maybe AT&T doesn't want VoIP because DRM issues are not solved yet for private conversations. Go figure...

- come to think of it, Amazon made a similar trade-off with its Kindle : no voice, but no monthly charge for connectivity. So not adding calling feature to an ebook reader would be equivalent to preventing a smartphone from making smart calls.


Here I want to mark a pause and applaud the poet(s) who wrote this beautiful sentence : "It is widely recognized by economists and jurists that parties to strategic alliances in competitive markets may enter into contracts to promote and protect their respective business interests and to refrain from taking actions adverse to those interests."

You liked it too ? There's a bit more of it until the next comma : "Consistent with such lawful, economically efficient practices common among parties to strategic alliances, including participants in the mobile wireless marketplace,". Now AT&T can deliver the news : "AT&T and Apple agreed that Apple would not take affirmative steps to enable an iPhone to use AT&T’s wireless service (including 2G, 3G and Wi-Fi) to make VoIP calls without first obtaining AT&T’s consent. AT&T and Apple also agreed, however, that if a third party enables an iPhone to make VoIP calls using AT&T’s wireless service, Apple would have no obligation to take action against that third party."

So basically AT&T and Apple agreed on a block of all VoIP applications on iPhones, except via exotic Wi-Fi access.

VoIPoiPhone ? Not OK

VoIPoWiFi ? OK, even on iPhone

VoIPoiCantSeeHowRightNowButSomewhereaGeekMayFindAWay ? Try me, but don't sue me.

One Stop Selling

Sony and Samsung are showing us how major players are bracing up for tougher times. This could be the final call for big players to simplify market interfaces.

Sony Pictures Entertainment decided to organize itself around one global platform. The US and international divisions will merge to address more efficiently a market that demands swiftness and reactivity.

Samsung will regroup all its local mobile and nomadic brands around the samsungmobile.com hub. At home, the brand needed some taming : Samsung being ubiquitous from real estate to life insurance, most business units had to develop specific brands for each line of products (ie Hauzen for air-con, Raemian for appartments). And it was not only a matter of branding : Samsung Electronics managed specific CRMs for its mp3 players (Yepp), laptops (Zaigen), and mobile phones (Anycall). Synergies seem obvious, to the point of scaring competitors : getting a share of a Samsung customer will get even tougher.

But Korea has reached the point where choices had to be made in favor of convergence instead of competition. The country wasted too much time and money in sterile IPTV wars between telcos, cablecos, and broadcasters, threatening Korea Inc.'s overseas (see "IPTV in Korea", "IPTV wars and WiBro truce ?"). Korea could display its technological know-how in convergence, but no commercial offers.

A converged broadcasting-telecom regulator was created last year (the KCC - Korea Communications Commission), and a few months after mobile leader SKT wolfed down #2 fixed broadband operator Hanaro, landline leader KT is merging with #2 mobile operator KTF. At last, triple play offers and VoIP are taking off. Korea Telecom is advertising massively for QOOK, its new brand for convergence.

The current crisis will accelerate concentration, and a few ambitious players will emerge stronger in both size and R&D. Korean, Japanese, European, or American players cannot afford keeping a defensive profile for long : after stimulating R&D and investments (TD-SCDMA, stimulus plans), China will probably force mergers among telecom manufacturers the way it is pushing carmakers to join forces.

IPTV wars and WiBro truce ?

The Korean telecom regulator awarded IPTV licenses to KT (mega TV), Hanarotelecom (HanaTV), and LG Dacom (myLGTV). Trials start next week, and negociations with broadcasters are still raging.

Up to now*, the trio mostly competed on VOD exclusivities (price for myLGTV), but after an intensive summer of lobbying, they expect to propose real-time TV from major broadcasters from October on.

Korean authorities are also considering Voice over WiBro, the very day KT announced a MOU with a Japanese player.

But UQ Communications Inc is not likely to roll out WiBro : it is supposed to launch a WiMAX service next year, and recently inaugurated its first WiMAX trial base station. Besides, Intel owns part of its shares (other investors : KDDI Corporation, Kyocera, East Japan Railways, Mitsubishi UFJ Financial Group, the Bank of Tokyo, and Daiwa Securities Group).

The MOU is about finding roaming solutions at the hardware and middleware level, so that WiBro users (mainly pro users) can somehow use the same device when they travel to Japan.

Korean players making the first move, and the regulator giving a push to the techno... combined the same day, these two pieces of news don't sound that positive for WiBro


* see "IPTV in Korea" (20080508)

Free the airwaves ? "Yes we can" says Google

Google opened a brand new lobbying website devoted to their Free the Airwaves campaign (freetheairwaves.com - see also the "Time to "Free the Airwaves"" post on their Google Public Policy Blog).

They suggest that the unused airwaves between broadcast TV channels ("white spaces") be "liberated" for free wireless internet. Nothing new, except the way of proceeding : web based grassroot approach, mobilization of citizens through petitions addressed to FCC members or calls to Congress members...

Ever the chameleon*, Big G is now playing the role of Barack Obama.

No fundraisers needed here : Google's war chest is full, and this is more likely to empty the wallet of broadcasters who will have a tough time competing on their own mediatic turf... just like MNOs a couple of months ago in the bloodless battle for spectrum**.



* starting from the shapeshifter of a logo (rather China-PC correct these days)
** see "Back To Square Auctions" (20080108) - Google eventually didn't spill any green drop

Viacom - vae victis, YouTube

Viacom had better prove the importance of copyrighted content for YouTube users : the traditional media giant had its nextgen rival (now a Google brand) ordered by a NY judge to release user data, but at the bulk level. So no User-Generated Discontent ahead : John and Jane Doe shall remain anonymous criminals. And the blame (if any) on YouTube's broader shoulders. Or the shame on Viacom's, should the figures turn out to be disapointing.

Across the Atlantic Ocean, another safe was apparently cracked as the European Commission allowed NRAs to open for WiMAX part of the 2.6GHz spectrum devoted to FDD / TDD. Not the kind of news John and Jane Does love to download, but who knows, some may find some value in it.

106.8% penetration rate for broadband

106.8% for Seoul, 99.2% for Incheon, 100.7% for Gyeonggi province... as of May 2007, 90% of Korean households had a fixed broadband connection, Jeollanam-do being the usual local laggard with a 58.4% penetration rate most G8 countries would dream of posting.

Mobility is also behind with 87.3%. Despite a nationwide HSDPA coverage, 3G remains an EVDO thing for SK Telecom (55% of total subs). With the technical help of DoCoMo, KTF reached the 1st million mark for HSDPA (about 10% of their total customer base + 42% for EVDO) and expect 2.7M for EOY 2007.

IPTV remains relatively low, but more than 500,000 households have already subscribed to HanaTV (Hanaro's VOD service), and after the recent opening by the regulator, KT can at last target 300,000 subs EOY for MegaTV (1M for EOY 2008). Mobile leader SKT is out of that race and tries to enter the PC to mobile communications business. For them, international activities and payment solutions appear once more as one of the few remaining drivers for growth.

NB : this photo "Wireless Korea" (2003) is available on SnapVillage.com as "power lines".

.XXX ? Sorry, ICANN'T - Not In My BitYard

A 9-5 vote against the ''.xxx'' domains : is the Web's Supreme Court turning conservative ?
Not exactly : the score is more balanced than ever. Because this is the third time the Internet Corporation for Assigned Names and Numbers (ICANN) rejects the opening of Pandora's box.
Beyond the laconic comment of Chairman and Chief Internet Evangelist Vint Cerf ("This decision was the result of very careful scrutiny and consideration of all the arguments. That consideration has led a majority of the Board to believe that the proposal should be rejected"*), the ICANN gave us some good reasons, including :
- "The ICM Application raises significant law enforcement compliance issues because of countries' varying laws relating to content and practices that define the nature of the application, therefore obligating ICANN to acquire a responsibility related to content and conduct.
- The Board agrees with the reference in the GAC communiqué from Lisbon, that under the Revised Agreement, there are credible scenarios that lead to circumstances in which ICANN would be forced to assume an ongoing management and oversight role regarding Internet content, which is inconsistent with its technical mandate."

So this courageous body is worrying about the consequences : I am not the UNternet and I certainly don't have troops to send to Darfur (nor Hugh Efner's mansion, for that matter).

But don't translate this into "Not In My BitYard, folks".

What the ICANN could be telling us is this : the adult business needs to actually grow to adulthood, to stop taking the money and running only, and to invest into self regulation.

In other words : for a change, to produce some useful spent.


Also (TBC) : iPhone could be launched on June the 11th during Apple's developper conference. What's the point here ? That was for the .mob part, going on .$$$**.


* icann.org/announcements/announcement-30mar07.htm
** remembering "madult content : follow the .$$$" (20050716)

3G license part III - France's fourth wedding or a funeral ?

France's NRA, the ARCEP, reopened the 3G beauty contest for a fourth license : previous tenders were launched in August 2000 (SFR and Orange got their pass in June 2001) and December 2001 (Bouygues Telecom in December 2002). The price tag remains at EUR 619.2M (+1% of the turnover afterwards), and the first contenders look as French as the 3 incumbents.
They also look less like "beauty pageants" than like brides looking for grooms : even with reasonable coverage obligations (Bouygtel still hasn't launched but must cover 20% by April 2007), 2G national roaming agreements, and site sharing opportunities, neither Iliad / Free nor Noos / Numericable can really afford 3G as they are today, especially with their ambitious FTTH rollout plans. Iliad and Noos are even considering same-sex marriage to strenghten their position on the French market.

Who would invest in a greenfield venture with such tenderfeet ? At a time when even a Vodafone takes some distance with network management ?

Actually, the main bidders are the 3G license holders who want to get a slice of spectrum leftovers and pushed for the consultation last year. What's up for grabs ? 2*15 MHz FDD + 5 MHz TDD in the 2 GHz range. Note the FDD and TDD thing, plus the "UMTS" title over the ARCEP communique : if you intend to seize the opportunity and promote an alternative 3G technology, go knock at some other door*.

So here we have a minister saying "let them now speak, or forever remain silent" without even having a marriage to perform. Actually, his job seems to make sure no wedding will ever take place.

France is too busy filing for divorce with new entrants. And as usual, people are fighting over child care. No price tag is set yet for this not-born / not-borne spectrum. Fish to fry and money to collect for France's next president.

Big operators also put a lock on digital radio : the government seems to be pushing T-DMB instead of DAB, more popular among small players. The winners in digital TV (TNT) were also major players (TF1, France Televisions, Canal+, Lagardere...). Everywhere, infrastructure and operating know-how remain the best barriers to entry. To become a big fish in the pond, you either have to invest in them (ie NRJ Group with Towercast) or to build a media empire as quickly as possible (ie Bollore).

* 3G is mentioned in the ARCEP annex as IMT 2000. The recent courting of the ITU by WiMAX (see "3G & 4G - WiMAX flirts with ITU" - 20070303) adds some spice to the affair, considering Free already holds WiMAX licenses (recycled WLL).

Is SKT's MelOn-opoly MP3 game over ?

One day SK Telecom is fined 3.8 billion wons for illegal subsidies and the next 330 million for anticoncurrencial behavior in the mobile music field (these days KRW 1,000 = about EUR 0.827 or USD 1.090).
Even ten times lower, the second punition could be most bitter to swallow : if "subsidies" were a simple breach of clearly written rules (decision by Korea Communications Commission), market dominance demanded a much more complex analysis and reached a much higher level (decision by the Fair Trade Commission). In any case, two blows in a row cannot be considered good news.
The KCC gave SKT 60 days to allow the subscribers to his service to play MP3 files downloaded from other providers.
As seen earlier in these columns, MelOn is Korea's favorite flavor in the juicy market of mobile music, with millions of subscribers paying 5,000 wons a month to download from their mobile phone as well as from the web. Yet, it gives SKT the music major a 60.2% market share on the mobile music market which is only slightly over that of SKT the mobile operator. This isn't what I would call a MelOnopoly. But from the "customer share"'s point of view.
SKT appears to be eventually experiencing the drawbacks of its pervasive strategy, and may not remain free of entering any given market without assuming the burdens of his leadership in mobility. At home at least.
On the other hand, compelled to open up its entertainment / financial / you name it activities could lead it towards even higher ambitions.

Pandora's set top box

The F.C.C. ruled that municipalities had to take quick decisions (within 90 days) regarding video franchise agreements with telephone companies. Due to excessive delays, telcos often cannot compete with cablecos on their highly profitable turf (Comcast & Co charge an average $43 per month, 5% more than last year and double the rate of 10 years ago). And the battle reaches beyond services : rolling out a fiber optic network can be prevented on the ground that it can deliver television and video.
But Verizon & Co haven't won yet. Is the F.C.C. the relevant authority ? Is the American broadcasting ecosystem ready to open all gates at such a crossroads (convergence, DRM issues, free DIY n-to-n casting for everyone...) ?
We already know that USA doesn't mean United Spectrum of America, but things are not that easy in the fixed arena either, where Federal, State and local layers also pile up. We already know that US operators always finish last in the lobbying race : media / content groups are tough opponents and high tech players make sure the game remains open to all of their kind.
Ten to fifteen years ago, Europeans would dream of a US like market where local calls would be free and hundreds of TV channels available to almost everyone.
Nowadays, I guess many US players are envying their European counterparts. If they cannot even leverage on the scale of their own country / continent, they should be worrying about yet another set of competitors (Asia, Middle East, you name it).

Broadcom - Qualcomm - chips and magnum

The "Anticompetitive" label definitely stucks to Qualcomm these days. In the last throes of a Sun vs Microsoft like insurgency, Irvine based Broadcom claims some good news from the legal side. For all you know, the San Diego Fee Chargers could even enjoy a rather disturbing scissors crisis with decreasing CDMA fees and increasing legal fees...
On the other hand, if Q manages to prevent B chips from cruising along the West Coast and beyond, its weakened competitors could land in a Middle Kingdom very much in need of patents. Beware, Doc Jacobs, be China aware...

A fine slap on the wrist

1.78 billion seems quite a heavy fine but we're talking Korean Wons and not even 2 million bucks. Korea's Fair Trade Commission found out a collusion meeting occurred between the 3 MNOs on June 24, 2004 in order to put a stop to flat rate systems, an attractive concept for customers but a repulsive one for shareholders. For a much milder crime, French operators had to pay hundreds of millions (Euros this time).
Competition again : SK Telecom said their new HSDPA service* would mark a shift in the market "from membership-based competition to service competition". Don't expect this elaborate wording to mean "price war" either. I guess it will go beyond the cultural shift where average customers won't have to take a ticket to be served at the customer service boutiques (VIPs should still enjoy the operators' lavish lounges).
What does this "+ life"** mean then ? A better customer experience for videocalls, downloading and roaming. Videocalls will become faster and cheaper : a W Standard Rate is comin'up soon at a mobile theater near you at 1.3 won per 0.5k packet. Automatic roaming just started with 02 in Frankfurt, Hannover and Leipzig - a 100% coverage for Korea's first round in FIFA World Cup 2006. Voice calls to Korea range from KRW2,444 to KRW2,826 per minute and videocalls stand at KRW 5,829 per mn. Still not cheap.


* see last post "Commercial HSDPA live in Korea" (200060517)
** SKT labels the service "3G+" or more simply "3+"... which makes Hutch a Three Minus ?

Qualcomm and Microsoft - the unusual fees plus expenses

Microsoft are in danger. Washington sent a diplomat to Brussels. As if Redmond Inc needed lessons in that field. From the Administration that sent John "UN Bomber" Bolton whack the United Nations...
Qualcomm are in danger. After the EEC, Korea's Fair Trade Commission (FTC) is investigating the CDMA Ksar, even visiting its offices in Seoul. We're talking about the very state that invested in Qualcomm a few years ago, creating a CDMA heaven in a GSM world... a state that is now not very likely to let MediaFLO bloom in the land of DMB.
The royalty of royalties are in danger. Windows and Office are going Live and the company that used to not believe in the worldwide web may find a way to counter Linux, Mozilla, OpenOffice & Co, but neither Microsoft nor Qualcomm will enjoy the same wealth ten years from now if they don't change their business models or better, their ways of doing business.

Saving private Korea Inc - back to subsidies, but no way back

Better late than sorry. The MIC eventually allowed cellcos to subsidize handsets. Korea Inc can now boost DMB, WiBro and W-CDMA technologies at home. Bad news for SK Telecom's competitors*, good news for Samsung, LG & Co, who would have preferred this help much earlier for their international competitiveness**. Yet, note that debitel's DMB trials in Germany*** have just been confirmed, along with a nationwide coverage in 2007 (8 cities for the World Cup, 12 by the end of 2006).
The MIC set a few rules for subsidies (only 62% of subscribers can enjoy them now, and 18 to 24 month will be required between each favor)... with the notable exception of next gen handsets (DMB, W-CDMA, WiBro...). To avoid a loss of face, the Government intends to monitor the process even more closely than it does with real estate, thanks to a weird kind of reverse auction.
This Monday morning, March the 27th, each MNO will give its subsidy grid to the regulator and no change will be allowed untill April 27. You can give more but can never lower your level of subsidy.
Analysts expect a reasonable start (around KRW 100 k per handset - about $100), but all gloves are off... which might help those who'll purchase the brand new ring / wrist phones recently announced by manufacturers.
But the device of the week was presented by Samsung at their Mobile Solution Forum in Taipei. It's not a handset but the World's first SSD (Solid-State Drive) laptop : the 32 Gigabyte flash-chip drive is four times lighter than a 30 Gigabyte HDD, and the manufacturer expects the technology to snatch 30% of the laptop market with a $200 unit price by 2008 (the price is set**** at $500 right now).



* even if KTF will turn a few heads with KTF Technologies Inc's ultra-slim phone (7.9 millimeters - MP3 player - 1.3-megapixel camera - electronic dictionary with over 300,000 English words...).
** see "Subsidies : boosting subscriptions of exports ?" (20051026).
*** see "CeBIT unnovations" (20060312)
**** I don't say "fixed" because Samsung joined Hynix in sending employees in jail for price-fixing in the semi-con sector (the $300M fine paid last year didn't protect the individuals working for the company).

Apple - something rotten beyond the Kingdom of France

Proprietary digital media players are now illegal in France : consumers should be able to play the tunes they purchase on any given platform.
RealNetworks, Microsoft and Sony have less to lose than Cupertino's darling : Apple is even more iTunes dependant than iPod dependant.
If abandoning the French market won't kill the group, clinging to a non-durable business model certainly will. Steve Jobs can't say he wasn't warned : his company has a knack for narcissist autism.