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The Economist: Telecommunications

Newspapers and technology: Network effects
Thu, 17 Dec 2009 11:02:54 -0000
How a new communications technology disrupted America’s newspaper industry—in 1845CHANGE is in the air. A new communications technology threatens a dramatic upheaval in America’s newspaper industry, overturning the status quo and disrupting the business model that has served the industry for years. This “great revolution”, warns one editor, will mean that some publications “must submit to destiny, and go out of existence.” With many American papers declaring bankruptcy in the past few months, their readers and advertisers lured away by cheaper alternatives on the internet, this doom-laden prediction sounds familiar. But it was in fact made in May 1845, when the revolutionary technology of the day was not the internet—but the electric telegraph.It was only a year earlier, in May 1844, that Samuel Morse had connected Washington, DC, and Baltimore by wire and sent the first official message, in dots and dashes: “WHAT HATH GOD WROUGHT”. The second message sent down Morse’s line was of more practical value, however: “HAVE YOU ANY NEWS”. (There was no question-mark in Morse’s original alphabet.) As a network of wires spread across the country, referred to as “the great highway of thought” by one contemporary observer, it was obvious that this new technology was going to have a huge impact on the newspaper industry. But would the telegraph be friend or foe? ...
Belize and Lord Ashcroft: Crossed lines in the Caribbean
Thu, 22 Oct 2009 10:43:08 -0000
Belize’s prime minister is attacking one of Britain’s most powerful political figuresAT THE end of August the prime minister of Belize, Dean Barrow, rushed through the nationalisation of his country’s dominant telecommunications company, Belize Telemedia. The following day a new, state-appointed board was in control of the company. There were few dissenters. Only three of the six opposition members of the 31-seat lower house of parliament voted against. Mr Barrow is no Hugo Chavez. Unlike Venezuela’s president he is a pragmatist, not an ideological firebrand. When the dust settles, he wants to see the company privatised again, but with a more diverse and mainly local shareholding. “It is plain and simple, a special measure for a special case,” he told parliament. ...
Macrofinance in Bangladesh: Call of the market
Thu, 15 Oct 2009 10:48:54 -0000
The biggest IPO in the country’s history may be the start of even bigger thingsTHE word grameen means “of the village” in Bengali. But Grameenphone, Bangladesh’s biggest mobile-phone firm with over 21m subscribers, is now the toast of the town. On October 4th it opened the largest initial public offering (IPO) in Bangladesh’s history, aiming to raise 4.86 billion taka ($70m) from Bangladeshis at home and abroad. Non-residents have until October 18th to apply but the offer is already heavily oversubscribed. It has attracted over 1m applications, according to Citigroup, which arranged the offering.Grameenphone is owned by Telenor, a Norwegian telephone company, and Grameen Telecom, a non-profit company founded by Muhammad Yunus, a pioneer of microfinance. His Grameen Bank gave millions of village entrepreneurs somewhere to borrow from. Grameenphone will give almost 350,000 budding Bangladeshi capitalists something to invest in. ...
Finishing the job
Thu, 24 Sep 2009 10:53:33 -0000
Mobile-phone access will soon be universal. The next task is to do the same for the internetHOW long will it be before everyone on Earth has a mobile phone? “It looks highly likely that global mobile cellular teledensity will surpass 100% within the next decade, and probably earlier,” says Hamadoun Toure, secretary-general of the International Telecommunication Union, a body set up in 1865 to regulate international telecoms. Mobile teledensity (the number of phones per 100 people) went above 100% in western Europe in 2007, and many developing countries have since followed suit. South Africa passed the 100% mark in January, and Ghana reached 98% in the same month. Kenya and Tanzania are expected to get to 100% by 2013.Even 100% teledensity does not mean that everyone has a phone, because many people have several handsets or SIMs. But nor is everyone a potential customer: the under-fives, for instance, still usually manage without. But at current rates of growth it seems likely that within five years, and certainly within ten, everyone in the world who wants a mobile phone will probably have one. 3G networks capable of broadband speeds will be widespread even in developing countries, and even faster 4G networks will be spreading rapidly in some places. Then what? ...
Beyond voice
Thu, 24 Sep 2009 10:53:33 -0000
New uses for mobile phones could launch another wave of developmentIN A field just outside the village of Bumwambu in eastern Uganda, surrounded by banana trees and cassava, with chickens running between the mud-brick houses, Frederick Makawa is thinking about tomatoes. It is late June and the rainy season is coming to an end. Tomatoes are a valuable cash crop during the coming dry season and Mr Makawa wants to plant his seedlings as soon as possible. But Uganda’s traditional growing seasons are shifting, so he is worried about droughts or flash floods that could destroy his crop. Michael Gizamba, a local village-phone operator, offers to help using Farmer’s Friend, an agricultural-information service. He sends a text message to ask for a seasonal weather forecast for the region. Before long a reply arrives to say that normal, moderate rainfall is expected during July. Mr Makawa decides to plant his tomatoes.A few miles away in the village of Musita, Michael Malime, another village-phone operator, explains how his customers have been using the same service to get farming tips. Rice farmers who had trouble with aphids texted for advice and received a message telling them how to make a pesticide using soap and paraffin. A farmer with blighted tomato plants learned how to control the problem by spraying the plants with a milk-based mixture. ...
Up, up and Huawei
Thu, 24 Sep 2009 10:53:33 -0000
China has made huge strides in network equipmentIN THE 1960s, when Japan emerged as a manufacturing exporter, it soon became a byword for low cost and low quality. Much fun was made of unreliable Japanese watches and cheap Japanese cars. But quality improved and Japan became a powerful force in electronics, carmaking and other industries. Today Toyota is held up as a model of efficient manufacturing, and Japanese firms lead the world in clean technology, carmaking and consumer electronics. China hopes to make a similar transition. For now, foreigners think that its home-grown electronics and cars are cheap and shoddy, as Japan’s were thought to be 40 years ago. But quality is steadily improving and China is being taken increasingly seriously as an innovator. The firm that embodies this new, high-tech China is Huawei, the country’s largest telecoms-equipment company.Founded in 1988, Huawei has risen astonishingly fast. Last year it was the world’s fourth-largest maker of network equipment, ranked by sales (see chart 6), and this year it is expected to move into third place, according to BDA, a consultancy. It is already ranked a close second in optical networking and third in mobile-network gear. Only slightly behind is ZTE, China’s second-largest maker of telecoms equipment, founded in 1985. Last year it was in eighth place, and it is moving up the field—not least because Nortel, the number seven, went bankrupt in January. Both Chinese firms specialise in network infrastructure, but they also make handsets. In a fiercely competitive market, ZTE became the world’s sixth-largest handset-maker last year. Its goal is to be the number three in handsets within five years. ...

BBC News | Business | World Edition

Greece votes for big budget cuts
Thu, 24 Dec 2009 00:20:43 -0000
The Greek parliament votes in favour of adopting big public spending cuts that aim to lower the country's high levels of debt.
Disney chief's pay slips to $29m
Thu, 24 Dec 2009 09:23:00 -0000
The pay of Disney's chief executive Robert Iger decreased by 28% to $29m in 2009 as the firm's profit declines.
US mortgage bosses may earn $6m
Thu, 24 Dec 2009 22:50:51 -0000
The heads of bailed-out US mortgage giants Fannie Mae and Freddie Mac may each be paid up to $6m (£3.7m) for 2009.

NYT > Business

Vietnam Is Refining Its Role on the Global Stage
By PRADNYA JOSHI Fri, 25 Dec 2009 06:46:57 -0000
Creating quality products like handicrafts or specialized clothing has not freed Vietnam from its dependence on the United States market.
Airlines in Asia Resist the No-Frills Trend
By BETTINA WASSENER Fri, 25 Dec 2009 06:55:40 -0000
Cultural differences mean that carriers are more likely to keep perks that major American and European airlines now charge extra for or have dropped.
Rise of Wind Turbines Is a Boon for Rope Workers
By KATE GALBRAITH Fri, 25 Dec 2009 06:43:06 -0000
A growing number of people who enjoy rock climbing are finding work inspecting, cleaning and repairing wind turbines.

 
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