A week in tech

Hong Kong

Mobile/Wireless
• Hutchison Whampoa disclosed that its global $22 billion 3G- investment would break even. Observers recall that the company said its 3G businesses in nine international markets would achieve break-even before interest, taxes, depreciation and amortization (EBITDA) by last year, and on earnings before interest and taxes (EBIT) level by this year. Analysts, however remain enthusiastic about the prospects for the 3G business of the company, claiming increasingly stable average revenue per user (ARPU) and a critical mass of 11.9 million for its global 3G customers, which makes the break-even target realistic. The group reported an 11 percent growth in its net profit to HK$14.3 billion ($1.8 billion), a performance that the company ascribed to exceptional gains from asset sales, revaluation of properties and windfalls from buying back assets at a lower price than their original cost.

Software
• Tradelink Electronic Commerce, a software developer, said it is considering bidding for the right to manage the government's loss-making electronic certification service after refining its existing trading software. The company earlier announced a 45 percent gain in its net profits in 2005 to HK$91.3 million ($11.7 million), a figure that went beyond its forecast of HK$80 million ($10.3 million) forecast. Enduring losses of almost HK$90 million ($11.5 million) in losses in the past five years, Hong Kong Post’s e-cert services will be tendered to the private sector this year. The winning bidder will run the service between 2007 and 2011 with the Hong Kong Post Certification Authority. Reports show that only 10 percent of the 1.2 million people who had their personal e-Certs embedded into their smart ID cards between 2003 and 2004 had used the service. The digital certificates are accepted for about 70 types of e-government services, including tax returns, and about 20 types of e-commerce activities, such as banking and online betting. Tradelink Electronic Commerce said it had made more than HK$10 million ($1.2 million) in investment in 2005 for the further development of its existing software used to facilitate trading. The company said it would begin marketing the Digital Trade and Transportation Network (DTTN), which was developed with the government. Investment in DTTN was HK$150 million ($19.3 million), with Tradelink taking a 51 percent stake.

Media, Entertainment and Gaming
• Television Broadcasts (TVB), Hong Kong's largest free-to-air television broadcaster expects its advertising revenue this year to post from 3 to 5 percent growth over last year, as it takes note of the intense rivalry competition from other media groups. TVB announced a 64 percent rise in its net profit to HK$1.1 billion ($141.7 million), on a 9.4 percent growth in revenue to HK$4.1 billion ($528.3 million).

• Sony Computer Entertainment and PCCW announced a partnership that will allow the offering of a wireless video gaming and video entertainment for PlayStation Portable (PSP) users in Hong Kong. The two companies said their alliance will offer films, music, TV programmes, exclusive web dramas, video-game trailers and video-game demos to PSP users at more than 300 Wi-fi hot spots operated by PCCW. The partners are offering the service free until the end of next month. To use the service, PSP users must have their service warranty registered in Hong Kong. Consoles bought in the United States, Europe and Japan will not allow the offering. A network utility disc is needed under this offering aside from the usual signing up requirement.


Singapore/Malaysia/Philippines/Indonesia
Internet
• The internet arm of Globe Telecom unveiled in the Philippines a new product solution dubbed the GlobeQuest Web Phone, said to be the country’s first PC-based VoIP (Voice over Internet Protocol) service that utilizes traditional prepaid cards. To avail of the service, a PC user, preferably with a broadband connection, must go to the GlobeQuest website and click the Web phone icon to launch the service. Only those with a Globe1 prepaid cards can make calls on the Web phone. According to GlobeQuest, the quality may not be that good yet but the service will enable users to save as much as 78 percent in international calls. The offering can also be used to call a landline and mobile anywhere in the country and abroad at a lesser rate. The company underscores one point about the Web phone as unique in the sense that although the underlying technology behind the service is VoIP, the business model employs the use of widely circulated prepaid cards.

• Yahoo Inc. announced the launching of three new localized home pages for Indonesia, the Philippines and Vietnam as part of a strategy to tap rapid growth in the number of Southeast Asian Internet users. The company said it plans to further increase its investment in regional operations. Currently, Yahoo has localized home pages for five markets in the region. Singapore and Malaysia were the first two countries in the region to get localized Yahoo sites. The company plans to roll out a Yahoo site for Thailand within the next six months. According to Yahoo Southeast Asia, which is headquartered in Singapore, the number of Internet users in Southeast Asia is expected to rise by 83 percent to 100 million by 2008 from 54.7 million current users. Yahoo said the region's Internet penetration rate is projected to rise to about 20 percent over the same period from 11.3 percent, noting that Southeast Asia has become of the fastest-growing markets in the world. Singapore and Malaysia account for more than 50 percent of Yahoo Southeast Asia's revenue, with about 10 percent of Yahoo's 429 million Internet users a month located in Southeast Asia. The company said it aims to use Singapore as a "test bed" for new services for the rest of the region.

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