Posts Tagged ‘information’
USA: AT&T is forecasting global economic recovery from next year
August 24th, 2009 | 
Author: The 2009 AT&T Road to Growth Study is based on more than six dozen one-on-one interviews with IT executives employed with multinational companies in the U.S. and Europe. The U.S. portion of the study included CIOs and senior information technology executives from approximately four dozen multinational companies averaging $4.75 billion dollars revenue and operations in 28 countries. All U.S. executives interviewed for this study work for a U.S company or a U.S. subsidiary of a foreign company, and they have responsibility for making decisions about IT strategy and budget allocations.
2009 Road to Growth Study Key Findings:
Time horizon to achieve ROI narrowed by 50%: In today’s economic climate, U.S. companies have significantly shortened the time frame over which return on investment (ROI) is delivered.
More than half of U.S. IT executives interviewed stated they are under pressure to deliver a return on investment in half or less than half the time. As a result, two-thirds cited that the
change has affected their IT budgets, strategies and priorities. The study found that companies are less willing to invest in longer-term projects or projects where the return does not come quickly. One CIO stated that the added pressure has forced the company to focus on IT projects that give at least 100% ROI in 12 months; otherwise, the project(s) get dropped.
Cost cutting and improving productivity are top priorities: Cost cutting and increasing revenue remain the two primary business goals cited by U.S. companies. To achieve the goals, survive the recession and move towards growth, IT strategies are focused on:
Reducing operating costs: 87 percent cited “reducing operating costs” as “extremely or very important”;
Improve collaboration with customer and partners: 85 percent cited “improved collaboration with customers and partners” as “extremely or very important”;
Enhancing workforce performance and productivity: 83 percent cited “enhancing workforce performance” as “extremely or very important”.
“U.S. companies are under added pressure to deliver, and IT investments are more critical than ever before,” said Bill Archer, chief marketing officer, AT&T Business Solutions. “From the study, we expect U.S. companies to come out of the recession leaner and more agile. Technologies that cut cost, reduce redundancies and loss, and improve efficiencies top the priorities list.”
Short and long term strategies are similar: The Road to Growth study found that U.S. companies employ multiple strategies to address business goals, and do not distinguish between short-term and long-term strategies. It appears that U.S. companies are reducing the time period for their long-term forecasting until after the recession is over. The role IT plays in helping U.S. companies achieve long-term strategies is very similar to the role IT plays in supporting the companies’ short-term business strategies.
Business continuity & security solutions have the highest positive impact: IT investments and priorities will go towards lowering cost, reducing risks and improving productivity and efficiency. The study found that “business continuity and security solutions” will have the biggest positive impact on business growth as U.S. companies prepare for an economic turnaround. This is closely followed by “enterprise mobility solutions” and “Web delivery solutions”. Areas of IT investment that are expected to have a high to moderate impact on businesses are “unified communications services” and “hosted solutions.”
These findings are in line with AT&T’s annual study on business continuity and disaster recovery preparedness for U.S. businesses in the private sector, conducted in June this year. The dramatic rise in social networking and mobility trends is presenting new challenges to companies’ network security, disaster planning and business continuity programs. Businesses are stepping up their technology investment and efforts to meet these challenges, despite the economy. IT executives indicated in the Road to Growth study that they expect to make the biggest financial investments in business continuity and security solutions and hosted solutions in the next 9 months.
Disparate views in Europe: The European portion of the Road to Growth study found that in contrast to the U.S., European executives have a consensus view that the global economy will rebound between Q1 and Q4 2010. The majority of executives expect a recovery towards mid to the end of 2010. Additionally, 50% of the European executives stated that there is no change in the time period with which they achieve ROI.
The consensus between European and U.S. IT executives is that the two largest global economies – the United States and China – will emerge first from the current recession.
For more information on the AT&T Road to Growth Study including the complete research results, please visit www.att.com/roadtogrowth.
AT&T Study: U.S. Companies Preparing for Economic Recovery in First Half of 2010
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Tags: amp, blog, blogs, budget, business, Communications, information, information technology, Marketing, Network, Network Security, Networking, research, rim, social networking, Technology | 
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Cybersecurity: an analysis of the changing challenges users face
Many people don’t yet fully understand the enormity of the threat — to individuals, their families and the companies that they work for, warns Andrea M. Matwyshyn, professor of legal studies and business ethics at Wharton. A frequent public commentator on the topic, Matwyshyn is the editor of a forthcoming book titled, Harboring Data: Information Security, Law and the Corporation.
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Tags: blog, blogs, business, information, Internet, online, research, rim |
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Europe: The Commission sets a new information society challenge to become literate in new media
Commission sets new information society challenge: Becoming literate in new media
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Kenya: Eassy claims prices will not fall yet, due to the uncompetitive market structure
The East African Submarine System says pricing for internet and voice services should fall by at least 70 per cent.
Kenya’s third fibre optic operator, the East Africa Submarine System (EASSy), on Thursday upped the ante in the ongoing internet pricing debate by accusing its rivals of deliberately denying consumers the benefits of broadband connection through exorbitant pricing.
The company, whose fibre optic cable is expected to land at the Kenyan coast in June next year, termed Kenya’s internet market as an oligopoly that lacks competitive pressure that would yield better pricing.
Chris Wood, the chief executive of WIOCC, the largest shareholder in EASSy, said that with the landing of the fibre optic cables, the cost of internet and voice service should drop by a margin of at least 70 per cent.
“The current argument that prices will only fall by 20 per cent is baseless as it does not recognise the value of competition in the market,” Mr Wood said.
An oligopoly is a market dominated by a few players acting in concert to foster self interest. Kenyans have been vigorously debating internet pricing since two fibre optic cables landed at the coast in the past four weeks.
The debate is informed by the high expectations that the landing of the cables would offer consumers access to high speed internet and significantly reduce prices.
Since the landing of the two cables however, service providers have maintained that prices will only drop marginally citing the large number of cost items associated with it.
Spur progressMr Wood said Kenya’s internet market is a victim of collusion among service providers to increase their profitability at the expense of public good.
“Were any of the two operators to move close to global pricing, a price would ensure that would bring prices down significantly,” he said.
EASSy says only a developmental rather than commercial approach to the business of information and communication technology would spur progress in countries like Kenya that have some catching up to do in a globalizing world.
EASSy says it would offer a more flexible pricing structure than is currently available from the East African Marine System (TEAMs) and Seacom.
Mr Wood said that his company is already selling an STM1 – a measure of a bundle of bandwith capacity on fibre optic – at $1 million less than its competitors.
“Our STM1 is priced at $2.5 million. We anticipate competition will drive this rate down to $1 million per STM1 sometime next year,” said Mr Wood, with a promise of corresponding drop in consumer prices.
EASSy’s rivals termed Mr Wood’s statement as a self serving excise meant to prevent consumers from sign up to what is available in the market with the false hope that a cheaper alternative is coming.
EASSy is betting on its bank of 12 African telecommunications operators who have committed to buying capacity from its cable for sale to customers at competitive prices.
WIOCC is the investment vehicle for the EASSy cable and owns a 30 per cent stake in the project alongside major national telecommunications operators including Telkom Kenya.
The remaining 70 per cent of EASSy is shared between development agencies and global telecoms operators.
EASSy officials ruled out the possibility of unscrupulous operators taking advantage of their access monopoly to fix prices, saying all operators have committed to maintaining an open access policy as dictated by key investors such as the World Bank.
“We have committed to bringing down prices through open and fair access mode of operation,” said James Wekesa, WIOCC Chief Commercial Officer.
The $263 million EASSy hopes to meet its ready for service date of June 2010 and is currently building its fibre optic cable in readiness for laying beginning next month.
International fibre optic cables are essentially pipes that contain thin strands of fibre that are able to carry high amounts of data quickly across long distances.
They are typically laid along the sea beds that line continents, and provide cheap access to high quality television, high speed internet and clear voice services compared to the more commonly used but unreliable satellite technology used in this region.
EAASy has spent an additional $2 million to secure military support and procure war zone insurance to fend off threats from pirates in the cable’s route.
Avoid piratesIt has also been forced to implement a 400km reroute of its cable in the seas off the Horn of Africa to avoid areas targeted by pirates.
In addition, the project will feature in-built redundancy options which will provide seamless service even if a cable connection is lost.
“Redundancy is a key differentiator between our cable and the other two projects. We have multiple links to various points so that there are no single points of failure on the cable,” said Mr Wood.
First conceptualised in over five years ago, EASSy was the first fibre optic cable project planned for the East African seaboard and hopes to connect 20 African countries using a 10,000 km cable.
Political intrigues have seen its construction lag behind other projects which have since been completed such as Seacom and TEAMs. Both those cables were finalised in the last month.
Winning bidderThe potential and need for a submarine cable along the east coast of Africa became even more evident after May 2004, when South Africa was announced as the winning bidder to host the 2010 FIFA World Cup.
Positive economic growth in sub-Saharan African states between 2004 and 2007, coupled with the great drive by African governments to foster the growth and adoption of ICT in various sectors, further underscored the need for submarine connectivity to meet Africa’s growing need for affordable high-speed international bandwidth.
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Tags: blog, blogs, business, car, Communications, connectivity, construction, consumers, ford, high speed internet, information, Internet, national telecommunications, service providers, system, Technology, telecommunications operators, world |
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Nigeria: NITEL is up for its fourth (4th) privatization under a new board of directors
In what seems like a battle for spoils, parties involved are set for a show down.
And should the development be left unchecked, the entire exercise might lead to another round of failure and by extension short changing the Nigerian people.
Following the revocation of the Share Purchase Agreement of the telecoms outfit to Transcorp, the federal government in June set up a technical board consisting of members to oversee the company and to also get a credible core investor for it.
In a statement signed by Senior Special Assistant (Media and Publicity) to the Vice-President, Ima Niboro, the Technical Board under the chairmanship of Permanent Secretary, Federal Ministry of Information and Communication Dr. Abubakar Muhammad, the board will be responsible for the day-to-day administration of the company in the interim, pending the completion of the on-going core investor sale process.
Other members of the board are Director-General, BPE, Dr. Christopher Anyanwu; Permanent Secretary, Ministry of Finance Steve Oronsaye (now, Head of Service); Acting MD, NITEL (to be appointed); Director, Information and Communication, Ibrahim Kashim; SSA (Econs) to VP, Mr. Sam Worlu; representative of the Chairman, National Council on Privatisation (NCP); and Managing Director, NIGCOMSAT Ltd.
At the moment, a substantive Managing Director has not been appointed for NITEL and MTEL. Speculations are rife in the media that one of the board members is currently angling to head the conglomerate whereas the BPE, which is represented by two members i.e. the DG and a director is given to having an in house head for the company. Apart from that, while the BPE wants the company sold in bits, some members of the board are said to be striving to convince the federal government to invest and reactivate it instead of outright sale at the moment.
Daily Trust reported an unnamed source at the weekend, who is believed to be a member of the technical committee of accusing the BPE of being bent on rendering the technical board useless and conniving with interested parties to sell NITEL as scrap without value.
“We have evidence that the BPE does not mean well for NITEL. We are aware of a security report showing that BPE is behind the various crises bedevilling the technical board since it was constituted to manage the affairs of NITEL after the cancellation of its sale to Transcorp. The two BPE members on the Technical Board have stopped attending our meetings and even before then the BPE refused to implement the decision to pay 50% of SAT-3 debt. We asked the BPE to also pay so that it would not be disconnected from London. We recently had to also pay PHCN debt of N350, 000 to prevent them from totally disconnecting NITEL facilities.”
Not done yet, the source said, “The downfall of NITEL started with the intervention of the BPE in the privatisation process. When Obasanjo took over in 1999, NITEL was worth $8 billion. Today, thanks to the BPE which first gave the company to Pentascope and later Transcorp, NITEL value now stand at less than $200 million and they have never deemed it fit to apologise to Nigerians for misadvising government on the competence of these companies they have been off-loading NITEL to. He said since 2004, NITEL had no audited account and management were and BPE never cared because they want to sell NITEL as scrap.”
But the BPE sees this as a waste of money. The BPE’s spokesman told Daily Trust on phone that, “There is disagreement on procedures. Our stand has always been that while privatising, there is no need for refurbishing and rehabilitation because it is wasteful.”
Other members of the technical board are believed to be taking sides with the position canvassed by the proposal of the member, because “they are ministry people and that is where they will get contracts from,” a source said.
These are some of the intrigues of interest currently facing the once flag bearer of Nigeria telecoms industry.
Anichebe had said last week in an interview told Daily Trust that the CVs of top managers at the company were being scrutinised to get a capable hand for the firm.
“I am suspecting they should have the short list ready before council meeting where whoever is recommended will be approved by the council. The next council meeting comes up next (this) week. We are looking at general managers and Deputy General Managers. Within that ranks, we hope to get somebody who will be able to be in charge till we find another investor,” he said. The three deputy managers are Mrs Laraba Abbas, Sabo Ibrahim and Pius Ugandem.
NITEL in 2002 had 553,471 functional lines and a generated income at N53.41 billion as a viable company apart from labour related issues, a debt overhang of over N20 billion, stripped assets and liabilities arising from unpaid workers arrears, and pensioners’ dues, NITEL is no doubt a shadow of its old self.
In 2002 when the first attempt to sell the company to Investors International London Limited (IILL), NITEL had over 10,000 employees. In 2003 before Pentascope took over, NITEL generated and collected N51.43 billion as revenue in one year from about 555,055 connected lines. After 23 months of Pentascope take over, the connected lines dropped to 440,000 and a debt profile of over N40 billion was incurred which eventually led to the revocation of deal with Pentascope. In 2005, Orascom, the Egyptian telecoms giant failed to buy the company because their $250 million bid was said to be below the reserved price.
The takeover of NITEL by Trans-national Corporation (Transcorp) in 2006 was celebrated with fanfare. The $500 million deal promised to turn around the company but three years after, they left it in a sorry state.
When they took over, NITEL’S connected line was 400,000. Three years after, it dropped to less than 100,000. Working lines was 296,000, it has dropped to 5,000. M-tel had about 1.3 million lines when Transcorp took over, but today, the lines stand at less than 100, 000. The 250,000 CDMA lines that were at 90% completion before Transcorp took over have not been completed. There were 249 (out of the original 284) active exchanges in the NITEL network nationwide at the time Transcorp took over. Today less than 60 of them are working, many of them shut down due to power problems.
The Transmission link nationwide through optic fibre network and the Micro-wave (Radio) link have broken down. Today, calls cannot be made in any part of Nigeria (e.g. Abuja to Kaduna) on a land line. Most observers are waiting earnestly to see whom the BPE will hand over NITEL to this time around.
Globacom has not hidden its interest in acquiring NITEL but those opposed to this move think that it could create monopoly in the Nigeria telecom industry.
The National Council on Privatisation (NCP) chaired by Vice President Goodluck Jonathan with up to five ministers as members will definitely have the final say. However, the term of reference among others given to the board upon its appointment was to hold the forth and make NITEL/MTEL as a going concern till a credible investor is found.
How the battle of wits and interest plays out in the nearest future can only be left for time to tell but no doubt the entity to suffer most is NITEL itself and the staff who have suffered untold hardship over the years.
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