A week in tech, July 13 - July 20

Hong Kong

Telecommunications
· Lucent Technologies (Lucent) will provide its leading IP Multi-media Subsystem (IMS) platform to New World Telecommunications (NWT), enabling the telecom operator to create and deliver simple, seamless, secure, portable, personal multimedia services to its subscribers over its optical IP network. With the agreement, NWT is Hong Kong´s first fixed line operator to deploy an IMS platform. According to Lucent China, NWT’s use of the IMS Platform in its fixed network will enable it to pursue a new service model that will allow for faster and more cost effective implementation of new and innovative end-user applications. Backed by its advanced Next Generation Network, NWT has evolved from a traditional telecom carrier into a next generation IP and telecom service provider, offering a wide spectrum of unparalleled integrated communications solutions, applications and content services, such as broadband, IP telephony, VPN, IPLC, as well as local and international voice services.

· Fiorlatte, a private equity firm wholly-owned by former investment banker Francis Leung Pak-to, has signed an agreement with Singapore-listed Pacific Century Regional Developments (PCRD) to acquire a stake in PCCW. Leung did not identify the names of other investors joining him in the HK$9.1 billion bid ($1.1 billion) although he promised to reveal their names in November. By that time, the first installment of HK$2.7 billion ($347.2 million) will have been paid and the necessary approvals obtained. Analysts see this development as part of an effort to stop PCCW’s core assets from being taken over by foreign investors. Australian investment bank Macquarie and US private equity firm TPG-Newbridge have offered about HK$60 billion ($7.5 billion) for PCCW’s telecom and media assets.

Hardware
· DVN (Holdings) has entered into an agreement that would see it give a 25% stake to Citic Group in exchange for the right to sell some 6 million set-top boxes and related software to cable television networks. Under the deal, Citic becomes DVN's largest shareholder, ahead of Motorola which owns 19.7%. However, sources indicated that Motorola has plans to increase its stake in DVN. The deal also stipulates that in case DVN is unable to sell the agreed number of set-top boxes, Citic Group has to pay HK$354.5 million ($45.5 million) for the 236.3 million new shares that DVN will issue as payment. Citic Group has 49% stakes in 21 cable networks in China. DVN is the exclusive set-top box provider in several large cities and provinces in China.

Internet
· A study indicated that some 27,000 people in Hong Kong are deriving income from online sales. The report, which was commissioned by eBay and conducted by ACNielsen, revealed that about 12,000 people rely on online sales as their major source of income. The survey said that one in 10 eBay businessmen would consider giving up their jobs in favour of doing online trading on a full-time basis. eBay noted that online businesses are becoming a trend as it gives people more flexibility with regard to their working hours.


Singapore/Malaysia/Philippines/Indonesia

Semiconductors
• Samsung Electronics and Siltronic, a leading maker of silicon wafers and a unit of German chemicals group Wacker Chemie, announced plans to build a joint 300-millimetre wafer factory in Singapore. The factory would be a 50-50 joint venture and would be called Siltronic Samsung Wafer. It marks the first time that a semiconductor maker has teamed up with a silicon wafer manufacturer, a partnership represented by an investment of US$1 billion.

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