Archive for November, 2007

The package includes software that can reduce the energy used by base stations by setting some components to enter a power-saving mode at night, a time when network traffic dramatically decreases. Another feature changes the minimum temperature requirement for a base station. While base stations are typically stored indoors where the air is cooled to around 25 degrees Celsius (77 degrees Fahrenheit) Nokia Siemens found that increasing the temperature to closer to 40 degrees Celsius can reduce energy consumption at the site by as much as 30 percent. Nokia Siemens' energy-efficient package also includes network-planning tools that can allow operators to use fewer base stations, which would also save on energy costs. The company plans to reduce the energy consumption of its base stations from 800 watts for GSM (Global Systems for Mobile Communications) today to 650W and from 500W for WCDMA (Wideband Code Division Multiple Access) to 300W by 2010. The base-station energy-savings initiative is the first of others to come from the company, which said that it is committed to improving the environmental impact of telecommunications infrastructure. The move is better for the environment but also saves money for operators, Nokia Siemens said. In addition, lower energy use can make telecommunication infrastructure more attractive in emerging markets without an extensive electric grid. Nokia Siemens isn't alone in targeting these regions. For example, Motorola earlier this year said it would test sun and wind-powered base stations in Namibia. Siemens, before its merger with Nokia, supplied solar-powered base stations in Malawi.

Close to 75,000 developers have been testing early "alpha" versions of Firefox 3.0 code for several months now, but this first beta release of the code, unveiled Tuesday, should open up the software to a much larger group of testers, said Mike Schroepfer, Mozilla's vice president of engineering. "The move from alpha to beta typically means that we've hit a point of quality where we believe the browser is usable as a daily browser," he said. "For us, it's a step up in terms of getting closer toward the final release." Schroepfer expects a second beta to follow by year's end, followed by a final beta 3 update in early 2008. By the time the finished product is unveiled, sometime in 2008, the team hopes to have close to half a million users testing its software. One of the big changes with Firefox 3.0 is an overhaul of the way the browser bookmarks and keeps track of browsing history. With , browsing history will now be stored in a database, meaning that it will be much easier for Firefox users to search for sites they've visited. "Because of the new Places infrastructure, we're able to store a much larger component of your history," Schroepfer said. And the browser will now be able to search what is being typed into the address bar to see if it's relevant to previous Web visits. For example, someone who had recently visited a Web page entitled "Review of 2008 Toyota Prius," could type "Prius" into the address bar and would be directed to the review page. Security has also taken a front seat with Firefox 3.0. The browser is now integrated with Google's database of known malicious Web sites and will warn users before they visit sites that are considered to be dangerous. And Firefox's download manager is now better integrated with anti-virus software, making it easier to spot malicious files before they are placed on the desktop. The browser will no longer allow add-ons to be downloaded from insecure sites, mending a practice that could have serious security ramifications, . Much of the hardest work has been under the hood, however. Firefox sports a new HTML rendering engine, called Gecko 1.9, that will make it , where developers are trying to find new ways of running software whether the PC is connected to the Internet or not. "You won't see those as a user right away," Schroepfer said. "But you'll see Web applications do more interesting things and run more quickly in Firefox over time."

More a rock band simulator than a game, the title takes on the hit "Guitar Hero" series that has sold millions and become a cash cow for publisher Activision Inc (ATVI.O). Many retailers opened their doors at midnight so gamers could plunk down $170 for a "Rock Band" bundle that includes the game software and controllers shaped like a guitar, drum set and microphone. "Rock Band" is the headline act in Viacom (VIAb.N) unit MTV's plan to spend more than $500 million on games over the next two years as it expands beyond its traditional TV base. "Rock Band" is the crowning achievement of Harmonix, a Boston-based game studio started by MIT students seeking to make the experience of playing music accessible to the masses. A partnership with accessory maker Red Octane resulted in the hit formula of "Guitar Hero," but the teams parted ways as Activision bought Red Octane while MTV picked up Harmonix. "For the first time ever we had the resources to really go for it," Harmonix head Alex Rigopulos told Reuters. "For us it's a dream game. It's really sort of everything we've ever dreamed of doing." It's a dream many gamers apparently share. The "band in a box" won an average rating of 95 on , which compiles reviews from different gaming sites and publications. In "Rock Band," four people can play together on guitar, bass, drums and vocals. Players hit buttons on the guitar or tap drums in sync with notes on-screen. Players can also sing along, karaoke-style. If notes are hit accurately, the song plays properly and the band earns points. TRANSFORMER Much as MTV's music videos transformed the industry in the early 1980s, industry executives and analysts said, "Rock Band" may change the way people enjoy music. New songs will be available for download every week, with players able to tailor their game to their favorite genres or bands. Just as musicians tested the novelty of downloads a few years ago by releasing songs online at the same time as on CD, MTV is working with labels to release playable versions of new tunes alongside their debuts in established formats. "In 10 years people are going to look at idly listening to music the same way as we look at watching a TV show in black and white," said Geoff Keighley, co-chair of the Game Critics Awards that named "Rock Band" the best game of the industry's annual trade show in July. Game downloads are attractive to game makers and the music business because they are priced at about $2 — double the cost of a song from an online store. "I don't really expect it to be a huge source of income for the industry but it is a positive story when they need one," said Billy Pidgeon, an analyst with market research firm IDC. Activision Chief Executive Bobby Kotick said new songs for "Guitar Hero" will boost profit margins. Activision has sold more than half a million "Guitar Hero" song packs. That's only $3 million in revenue, but it's a highly profitable drop at a time when the overall music bucket is shrinking. MTV, for its part, aspires to build an iTunes for games. "We've moved from initial rounds of discussions with the labels to talking about how we can harness this platform to break new artists and to introduce new music from established artists," Paul DeGooyer, vice president of MTV Games, said in an interview. DRIVERS NEEDED The music business badly needs growth drivers. Downloads are expected to more than double over the next five years to $3.4 billion — more than a third of all music revenue — but that's partly because the industry is contracting, according to a report released Tuesday by JupiterResearch. For all its grand plans, "Rock Band" is still playing the role of an upstart new act that must meet several challenges. This year, the game is only available in $170 bundles that are nearly twice as expensive as "Guitar Hero." Individual instruments won't be offered until next year. There is also the issue of availability. MTV said it would ship more than a million units this year, but "Guitar Hero 3" sold 1.4 million units in its first six days on the market and is enjoying wider brand recognition. Moreover, "Rock Band" is only available now for Microsoft's (MSFT.O) Xbox 360 and Sony's (6758.T) PlayStation 3 consoles but there is no release date yet for Nintendo's (7974.OS) Wii, which has been the best-selling game console in 2007. Other game makers aren't expected to sit still, either. Electronic Arts Inc (ERTS.O), which is distributing "Rock Band" under a three-year deal, may jump in with its own music game at some point. While EA books the revenue from each "Rock Band" sale, its share of profits is much lower than if it was publishing its own game. Asked whether EA was working on its own game, EA Partners general manager David DeMartini praised Harmonix before telling Reuters: "That's not to say that we wouldn't at some point be involved in the genre, as this is a huge genre that hasn't reached full potential. We wouldn't rule anything out." (Reporting by Scott Hillis; Editing by Gary Hill)

Porsche this month revealed it had made EU3.6bn from share options in the year to July, compared with about EU1bn from sales of its cars. The news provoked comments from some analysts that the German luxury marque was acting more like a hedge fund than a carmaker. Yet many managers regard derivatives as essential tools to manage the risks of volatility in exchange rates, interest rates and commodity prices. When is it acceptable for manufacturers to place big bets on the market? Should investors be pleased or dismayed when an industrial enterprise makes money from financial speculation? THE ADVICE: THE ACADEMICJames Dow There are two general rules here. First, companies shouldn't use derivatives to speculate unless they specialise in this kind of trading. Shareholders of non-financial companies are, rightly, unsympathetic to this kind of activity. Second, derivatives are useful for hedging - taking positions that reduce overall risk because they are negatively correlated with risks elsewhere in the business - but there is a fine line between hedging and speculation. Unless risk management policy is fixed in advance, discretion on when and how much to hedge can turn hedging into speculation. So the market will be hostile to large hedging trades that are announced after the fact. Porsche's VW options can be justified by the cute argument that it protected itself against the rise in VW shares following the announcement of its possible takeover bid. But it is not clear the market favours the takeover anyway and Porsche has reportedly hinted that the price may now be too high. Since Porsche has great appeal for shareholders as a carmaker, why has it put itself in a position where its spokesman likens the company to a hedge fund that also makes cars? The writer is a professor of finance at London Business School THE CONSULTANTAlan Middleton Porsche should be praised for pursuing its core business, as it appears to be doing. It is following a sound business rationale that has secured a big financial upside. Porsche essentially means the "Porsche-Piech" family. Historically, the family has been entwined with Volkswagen: Ferdinand Porsche was Volkswagen's founder and designed the first Beetle. Until recently, the family protected its interests at the VW board with a minority shareholding and with Ferdinand Piech, the founder's grandson, as the head of VW's supervisory board. However, since the European Court of Justice ruled last month that Germany's "VW law" had illegally shielded Volkswagen from takeover, that approach was put at risk. So Porsche needed to act to secure two interests. First, sharing product platforms and technology with VW-Audi (Porsche cannot easily afford to develop these areas alone). Second, safeguarding the wholesale business of Porsche Austria, which generates around half the family's income. If one assumes that Porsche was acting to secure its core business - and that its decision was based on publicly available information - then the profit was simply a fortuitous windfall. The writer is CEO of PA Consulting Group THE ACCOUNTANTNigel Ruddock Porsche is not the only company to use sophisticated financial arrangements, but such arrangements require very careful consideration from both individual and institutional investors. The complexity and volatility of the global car industry offers ample justification for spreading risk and increasing shareholder value. However, with options trading on its stake in VW netting more than three times the profits derived from its core business, in many ways Porsche has acted more hedge fund than carmaker. The level of sophistication required to make investment choices in such companies is therefore much greater than it is when a business is focused solely on its core competencies. Primarily, shareholders must examine the risk profile of a company's hedging choices as closely as its business fundamentals and the track record of the management team controlling those options. If this trend continues it may become an increasing barrier for individual investors in particular, who often do not have access to data of a quality needed to make well-founded investment decisions. The writer is head of automotive services at Grant Thornton UK THE PRDave Senay Why shouldn't Porsche use every advantage to maintain its financial strength? Investment strategy can help turbo-charge results and fuel R&D, design, production quality and marketing. A failed strategy can hobble the very same things. But does the use of derivatives help or hurt the brand itself? Done well, it helps. Porsche customers want a smart, successful and well-funded company that can create the next generation of terrific cars. Affluent, discerning customers are often very committed to the brand. Many are financial professionals or executives themselves, so they appreciate smart financial management. But they also have plenty of brand choices, so it is essential that Porsche stays true to its enduring brand attributes in every way. The writer is president and chief executive of Fleishman-Hillard