Nokia feels the pinch due to credit crunch

Nokia Corp., the world's largest maker of mobile phones, reported Thursday a 69% drop in fourth-quarter profit as demand for its handsets fell sharply during the key holiday season, particularly in China, and as it lost market share in the lucrative high-end segment.

The European tech bellwether also lowered its dividend, slashed its 2009 forecast of global demand for phones and said it would cut roughly 1,000 jobs to keep a lid on expenses.

The results mark a reversal of fortune for the Finnish company, which earlier this year seemed to have all but crushed even its nearest competitor with its stronghold on emerging markets, efficient cost control and extraordinary distribution power.

Quarterly sales declined 19% to 12.66 billion euros, missing forecasts calling for a top line of 13 billion euros, as demand for phones dropped sharply.

The number of handsets shipped in the latest three months fell 15% to 113.1 million units. Sequentially, shipments slipped 4% -- an unusual development considering the fourth quarter is customarily the strongest one for phone makers.

Phone makers have been suffering in the past few months as consumers rein in their discretionary spending. In developed markets, many are delaying replacing their old mobile phones. In emerging markets, handset users often simply aren't buying new ones.

Underscoring this, Sony Ericsson, the phone-making joint venture of Japan's Sony Corp. (SNE) and Sweden's L.M. Ericsson (ERICY), posted its second straight quarterly loss last week and warned the market would deteriorate further in 2009.

Also last week, Motorola Inc. (MOT) said it would report a fourth-quarter loss and slash 4,000 jobs after its sales collapsed over the holiday season.

And on Thursday, Nokia lowered its outlook for global industry mobile-device volumes, saying it now expects them to fall 10% in 2009, compared to an earlier forecast of a 5% drop.

The projected decline would be sharper in the first half than in the second half, with volumes dropping more sharply than is customary between the fourth and the first quarter, Nokia said.

Higher profile for digital mapping

Among Nokia's individual divisions, the handset business suffered the most, with sales down 27% to 8.1 billion euros. The sharpest decline in the number of handsets shipped happened in China, which registered a 36% drop, followed by the Middle East and Africa, with a 23% fall.

Nokia estimated its market share at 37% in the quarter, down from 40% a year ago and 38% in the third quarter. It said it lost ground in the Middle East and Africa, North America and China. It also lost ground in the high-end, smart- phone category, which worried investors.

Nevertheless the phone maker said it expects to maintain its market share at 37% in the first quarter.

The average selling price of a Nokia handset slipped to 71 euros from 72 euros in the third quarter, even though many new handsets, such as the 5800 XpressMusic, hit the shelves in time for Christmas. The decline put pressure on gross margins, which narrowed to 33.8% from 36.5% in the third quarter.

The division's operating profit decreased 70%, to 766 million euros, in the latest quarter.

At the Nokia Siemens networks joint venture, sales fell 5% to 4.3 billion euros.

The division, half owned by Siemens (SI) of Germany, achieved most of its targeted cost savings but reported an operating loss of 179 million euros while it broke even in the same period last year.

At the Navteq digital mapping business, sales jumped 31% sequentially to 205 million euros. The unit's operating loss shrank to 73 million euros from 80 million euros in the third quarter.

'Hyundai Mobile' to test British waters for success

Hyundai Mobile has announced its UK launch and aims to achieve three to five per cent market share within the next five years.

Hyundai Mobile UK will initially be located at the Advantage Cellular distribution centre in Oxfordshire and will utilize its warehousing and logistcs facility. Former Advantage marketing manager Graham Jelfs has also been recruited as Hyundai Mobile’s head of marketing and communications.

The new manufacturer will be looking to take its largely prepay offering to UK networks, distributors and retailers. Its pitch is “niche products and mobiles for a broad, price-conscious target group”.

Ten to 15 handset models are planned annually across Hyundai’s ‘Basic’, ‘Music’, ‘Lifestyle’ ‘Innovation’ and ‘Business’ product segments. Product launches are scheduled for the first half of this year.

Hyundai Mobile UK director Roland Prinz said: “The central location and ability to get set up immediately was the reason for selecting the offi ce within Advantage House and we can use the facilities here to provide physical stock within the territory, rather than suffer delays shipping from the Far East to our UK customers. We are now eager to meet with networks and distributors that have direct routes to market, especially those focusing on the retail sector.”

The company is also recruiting for roles, including a head of sales responsible for networks and distributors. It will be exhibiting at Mobile World Congress in Barcelona in February.

Nortel bankruptcy creates worry for 2010 and 2012 Olympics

Everybody by now knows what happened to Nortel. On 13th January Canada's Nortel Networks filed for bankruptcy in Delaware under Chapter 11 and Chapter 15 guidelines.
Nortel has been struggling financially from the past couple of years and was cutting jobs at regular intervals. Toward the end of the year, the Toronto-based company was warned of a possible de-listing from the New York Stock Exchange.

The Chapter 15 filing enables a company to seek a U.S. bankruptcy court's recognition of a foreign bankruptcy case as the main or controlling proceeding.

There might be some potential buyers for Nortel but let’s see what happens in the coming days.

Nortel Networks at the moment is of course the topic of much conversation and speculation. In my view following are the key issues which Nortel has to deal with in the immediate future:

• It might loose some of it major partners, like Microsoft and how does the bankruptcy will affect its smaller partners, like Airvana,


• How long it can hold onto skilled talent in places like Ottawa, Ontario, and Richardson, Tex, and,


• Where the company should continue to focus its product energies as its fate plays out.

These events have affected many in the industry but one of them in particular is the organizers for the 2010 Vancouver Winter Olympics and the 2012 London Olympics. Remember Nortel is the official sponsor for these two Olympic events and any trouble in Nortel is to stimulate significant trouble for these events.

Although Nortel Networks says, at least for now and before the bankruptcy court gets involved, that it remains committed as a sponsor and official network infrastructure provider to the 2010 Vancouver Winter Olympics and the 2012 London Olympics.

Back in July, Nortel signed up as a Tier One Olympic sponsor, and, to support the London Olympics. In addition to million of dollars in cash, Nortel also committed to provide the network infrastructure for communications in cooperation with British Telecom for the 2012 Olympics.
At the moment Nortel is giving every signs to reassure its commitment to the games as a 'tier-one' local sponsor and official network infrastructure provider for the London games.
Under the London sponsorship deal, Nortel is to supply network infrastructure, including secure networks, local wireless networks, call center and fixed landline infrastructure to support more than 205 international sporting organizations, 20,000 members of worldwide media, 9 million spectators, and "billions" of television viewers.

This looks quite staggering so just imagine the scenario where Nortel can’t fulfill its commitment.
Just like it has done with the 2012 organizing committee, Nortel is assuring the Vancouver Olympic organizing committee that it will stand behind its commitment to the 2010 Winter Games.

It does makes sense that Nortel fulfill it’s commitment I think it would be able to do so as much of Nortel's support has already been delivered and is expected to be in place by May.

3GPP Earthquake and Tsunami Warning service (ETWS)

Earthquake and Tsunami Warning Service: is a service that delivers Earthquake and Tsunami Warning Notifications provided by Warning Notification Providers to the UEs which have the capability of receiving Warning Notifications within Notification Areas through the 3GPP network.

Earthquake and Tsunami Warning System: is a subsystem of Public Warning System that delivers Warning Notifications specific to Earthquake and Tsunami provided by Warning Notification Providers to the UEs which have the capability of receiving Warning Notifications within Notification Areas through the 3GPP network.

Earthquake and Tsunami Warning service is provided to users by PLMN operators. Warning Notification Providers produce Warning Notification to PLMN operator when an event occurs e.g. an Earthquake. PLMN operators distribute Warning Notifications to users by utilizing ETWS.

The ETWS consists of the PLMN that is capable to deliver Warning Notification and the UEs that are capable to receive Warning Notification. A Warning Notification Provider is able to send Warning Notification to the users in Notification Area by activating ETWS. Warning Notification is classified into two types depending on the purpose and urgency of the notification.

The first type of Notification is called Primary Notification. This type of notification delivers the most important information of the threat that is approaching to users (e.g. the imminent occurrence of Earthquake or Tsunami). The notification shall be delivered to the users as soon as possible.

The second type of Notification is called Secondary Notification. This type of notification delivers additional information, such as instructions on what to do / where to get help as long as the emergency lasts.

More Information at 3GPP TS 22.168: Earthquake and Tsunami Warning System (ETWS) requirements; Stage 1.

You may also find interesting this FAQ for Cell Broadcast (CB) in Public Warning.

Emergency Phone Network enabled on the London Underground

Airwave has completed its deployment to all 125 below ground London Underground stations - within budget and ahead of schedule.

The complete roll out of the terrestrial trunked radio (TETRA) network on the Tube means that British Transport Police, Metropolitan Police Service and the City of London Police will now be able to use the same radios underground.

Police Minister Vernon Coaker welcomed the completion, saying the system was now fully functioning ahead of schedule, and would help frontline officers carry out the work they already do in tackling crime.

Tim O’Toole, managing director of London Underground, said the roll out was achieved five months ahead of schedule.

Airwave, a Macquarie investment fund venture, won the contract to provide access to its TETRA network in January 2007. The National Policing Improvement Agency managed the roll out, linking the emergency services to London Underground’s Connect digital radio system.

The Connect system forms part of a £10-billion investment programme by Transport for London. And the TETRA Tube roll out was initiated after the London Assembly called for improved public safety communications underground in its report into the 2005 London bombings.

Mobile dating to get big by 2013

In Sep 2007, Juniper Research proudly claimed, "Mobile dating revenues to reach $1bn by 2012, according to a new study from Juniper Research ". Most of the predictions are for the next 5 years as its safe to predict that much in future.

Now their latest report claims, "Mobile Dating Revenues to Approach $1.4bn by 2013 as Event-based Charging Models Proliferate, says Juniper Research":

A new Juniper Research report has found that new revenue streams from event-based charging and advertising will help to push the value of the mobile dating and chatroom market to nearly $1.4 billion by 2013, part of a burgeoning user-generated content (UGC) market that will reach $7.3 billion by the same time.

The report says that while subscription revenues will continue to contribute the bulk of service revenues over the next five years, an increasing number of dating companies have now switched to offering event-based charging, through products which offer free registration but levy charges when end-users wish to contact one another, or else offer virtual gifts for subscribers to send to other users.

The Juniper report also observed that while the initial impetus for dating services was provided off-portal, network operators have become increasingly keen to offer services on-portal as part of their entertainment portfolios: Vodafone offers Dating Direct, while 3 UK has partnered with Flirtomatic.

Other findings from the report include:
• Less than 30% of mobile dating customers will be on flat-rate subscriptions by 2011
• The Far East & China region is currently the largest region in terms of subscriber numbers, primarily due to the success of dating services in Japan
• Advertising will provide the majority of mobile social networking revenues but less than one-third of all UGC revenues by 2013

Its just matter of time when Location Based Services (LBS) will combine with these and offer 'instantaneous flirting' and 'speedy dating' ;)

MMS of NY Plane Crash, first photo on the web

A dramatic picture of the US Airways aircraft that crashed in the Hudson River appeared around the world within minutes after a bystander uploaded a photograph taken with his mobile telephone on to the website Twitter.

In another illustration of the growing power of Twitter, where users post mini-messages, Janis Krums took the picture with his iPhone and sent it to the site.

Mr Krums, from Sarasota, Florida, posted: “There’s a plane in the Hudson. I’m on the ferry going to pick up the people. Crazy.”

Read complete article here.

What lies ahead in year 2009

In the year just gone i.e. 2008 we saw some unprecedented economic situations. I can clearly say that I have never seen anything like that but then I’m too young to say that anyway -:))

Talking to more experienced people in the industry I came to the conclusion that this recession indeed one of the worst one.

It's a very tough economic climate out there and there an every chance that no one will be reprieved by its effect. What I men by that and even if you haven't been touched by the downturn thus far, you will be. There is an argument that IT or technology shop has some advantage over other departments which makes sense as well as I can rarely think of a business these days which doesn’t use telecoms these days. Nevertheless, it would be unthinkable not to be wearing your flak jacket at all times.

Jos losses have started to happen in telecoms now with the likes of Motorola, Nortel already involved in this procedure. More than 50,000 tech workers lost their jobs before the financial meltdown hit, and more jobs may soon be axed.

Everyday we see ourselves into more gloom and doom with more bad news coming our way. Even India is getting affected by this and especially after what happened Satyam. The Satyam scandal had shocked India specially the IT world. This has definitely not helped to boost up the confidence with some of the IT companies shares plunging. The Satyam scandal what many has labeled as India’s Enron has put a big doubt into investor’s mind which is a very serious concern.
In way this scandal has done woken up many and will do some good in the future. Telecom companies are working feverishly to get their balance sheet right and hence already started taking drastic measures. I view it like this where everybody is anticipating a tsunami and to save themselves from high waves they are already moving onto high grounds.

I myself is involved in the situation where the salaries of the staff are frozen for at least one year. I believe any measure taken now although painful is a right thing to do. So when tsunami comes the high waves may not do the much damage and if doesn’t then it’s even better.
Companies are in the mindset of not spending in the coming months and plans to invest only in what it call key projects but with an increase of only 1 or 2 percent in the next 12 months.
LTE is considered as one of the key area of development but at the same time provide immense dilemma as well. Companies are no doubts thinking of concentrating on the current projects which guarantee a source of revenue but then want to spend in LTE product as well so that they are not behind when the good times begin.

People with high skills especially in wireless and VoIP may have got good chances of just clinging on to their jobs.

Remember everybody would need the skilled people when good times come back so it’s in companies interest to freeze the salaries instead of making make people redundant.

It's important, above all, to keep your skills at top form and be flexible with an employer going through tough times.

In the end I will mention the line from Judi’s blog which is
“Remember, don't panic. The trains cannot run without you”

'Sexting' is dangerous for teens

It's a popular trend among teens called "sexting."Middle and high schoolers are texting racey nude pictures back and forth, and it's causing an uproar across the country.

According to a recent study, one out of five teens have done it. The study also shows that teen girls are not the only ones sharing sexually explicit content. Almost one in five teen boys said they have sent or posted nude/semi nude images of themselves. One-third of young adults -- 36% of women and 31% of men ages 20-26—say they have sent or posted such images.

A year ago, a 19-year-old cheerleading coach was charged and prosecuted for taking a topless photo of herself and a 15-year-old girl.

And a boy was taken to juvenile court last year for taking explicit photos of his girlfriend.

Mr Brown, who is also resource officer at the areas primary school, said of the 14-year-old boy's mobile phone photos: "They were as graphic as you would see in any Penthouse magazine."

In the latest case, three teenage girls in Greensburg, Pennsylvania, who sent nude self portraits, and the three male classmates who received the images, have all been served with child pornography charges.

The girls have been charged with manufacturing and disseminating child pornography while the boys are accused of possessing it.

In Wisconsin, a 17-year-old was charged with child pornography after posting naked pictures of his girlfriend, who is a year younger, on the internet. In Rochester, New York, a boy aged 16 faces seven years in jail for circulating an image of a girlfriend to friends.

"Sexting" is fast becoming a moral and legal headache for school heads and police throughout America. The National Campaign to Prevent Teen and Unplanned Pregnancy last month published a study suggesting one in five teens had sent or posted images of themselves in various stages of undress.

Jim Brown, an official at Glen Este high school in the Ohio town of Cincinnati, told the Cincinnati Enquirer: "If I were to go through the cell phones in this building right now, of 1,500 students I would venture to say that half to two- thirds have indecent photos, either of themselves or somebody else in school."

Prosecutors are facing increasing dilemmas because case law has not kept up with the impact of digital media on teenage behaviour. Young adults can face lengthy sentences resulting from relationships with younger teenagers, with penalties varying state by state.

Federal law also requires hefty punishment for teenaged relationships that span the legal start of adulthood at 17. An 18-year-old in their last year of high school who dates a 14-year-old in the first year faces up to 30 years in jail for a first offence.

Keep your kids safe, get num8 from Lok8u

Launched at the Consumer Electronics Show (CES) in Las Vegas, the Num8 (pronounced 'new mate')watch from British company Lok8u (pronounced 'locate you') is said to be the first tracking device specifically designed to help parents keep tabs on wayward offspring.

The £149 Num8 looks much like any ordinary digital wristwatch, but it houses a GPS chip similar to that contained inside a satnav unit. This constantly keeps tabs on the location of the child - it is accurate to within 3 metres - and beams it back to Num8's website for monitoring.

Relatives can receive text messages about the watch's location direct from the device, pinpointing the street address of their youngster at the touch of a button.

"As far as the child is concerned it's a digital watch - for the parent it's a child locating product," said Steve Salmon, Lok8u's chief executive. He added that he hoped it would be used as a way to give children more freedom, rather than restricting them or promoting lazy parenting.

"Only 20% of children are now allowed to go out and play. It's my profound hope that Num8 will help parents feel more comfortable about letting their children go out to play," he said.

It is not the first time that a company has offered parents the chance to track their children by GPS, but most previous devices have been built into mobile phones - expensive pieces of technology that are notoriously easy to dispense with. By contrast, Worcestershire-based Lok8u says it has improved the situation by locking the watch on to the child's wrist.

If an errant child forcibly removes the watch - or has it taken from them - the system immediately trips an alarm, sending an alert to the mobile phone of a parent. Removing the gadget also triggers a warning that is sent by email, just in case the worried parent happens to be sitting in front of a computer.

And to get around the limitations of satellite tracking technology - such as going indoors to prevent the satellite overhead from establishing a direct connection - the system can also use mobile phone signal triangulation to determine a more approximate location for its target.

An Australian children's advocate is very upset with this device. He has already labeled this device as 'alarmist' and 'flippant'. According to him "There won't be a huge market here because I think Australians are smarter than that."

Even though this device is claiming to be the first, there have been other services that can already achieve this. In this article in Guardian, couple of years back, the author successfully tracked his girlfriend using a similar technique via some spying website. The accuracy was not as good though but because of many more cell sites, some of them micro-cell sites and with the use of A-GPS this should be easy.

Anyone aware of similar services out there?