ORACLE 'PROMISE' TO KEEP BIG PEOPLESOFT CUSTOMER BASE

Business software maker Oracle has promised to do everything it can to keep PeopleSoft's giant customer base, whose departure could threaten the financial success of its proposed $US9.2 billion takeover of PeopleSoft. Oracle executives said this week they would "oversupport" PeopeSoft's existing 12,750 customers to help keep their business if a merger is clinched. The New York Times/Reuters reports (7 Dec.) PeopleSoft's large customer base was a primary driver behind Oracle's takleover proposal, but the company is concerned PeopeSoft customers might abandon maintenance contracts that could help Oracle spend more on producing new software products to better compete with Germany's SAP, the world's biggest software maker.

H-P RESISTS MARKET CALLS FOR COMPANY BREAK-UP

For a year Wall Street analysts have been calling on Hewlett-Packard CEO Carleto S Fiorina to break up the company, and this week Ms Fiorina acknowledged that on three occasions the Hewlett board considered doing just that, but each time the board unanimously decided to keep it together. The New York Times (8 Dec.) reports that analysts had called for Hewlett-Packard to spin off its printer business, which they asserted would provide financial benefits to shareholders. The paper says Hewlett-Packard, with a market capitalisation of $US63.7 bullion, is a hydra-headed behemoth that sells a dizzying array of products. That includes not only printers and personal computers, but also computer systems that help corporations run their data centres and consumer devices like digital cameras. Computer printers accounted for 30 per cent of H-P's sales last year but 80 per cent of its profits.

TOSHIBA, MEMORY-TECH DEVELOP NEW DVD

Two Japanese companies - Toshiba and Memory-Tech - have just announced that they have developed a DVD that can play on both existing machines and the upcoming high-deifinition players, raising hopes for a smooth transition as more people dump old TV sets for better screens. The New York Times reports (7 Dec.) that Toshiba and Memory-Tech have said their disc has a dual-layered surface that can store both types of data on the same side. For consumers that would eliminate the potential headache of having to own two types of DVD players - both will be able to read such discs, though only the newer equipment can take advantage of the higher-resolution technology. The new DVDs rely on the HD-DVD format.

UPDATE FOR MICROSOFT WINDOWS SERVER 2003 SECURES BETA STATUS

Microsoft has moved a little closer to delivering an update for Windows Server 2003 by showing a release candidate service pack for the OS. The Register reports (8 Dec.) that this first service pack for Windows Server 2003 arrives with a variety of new security features, including more stringent privilege policies, support for "no execute" hardware and a fancy security configuration wizard. Along with the release candidate for SP1, Microsoft said beta tester can play with release candidates of its 64-bit Server 2003 and XP operating systems for AMD and Intel's x86-64-bit chips. They are now expected to arrive in production form during the first half of 2005. The Register says customers will also be getting the Windows Firewall released earlier this year with Widows XP SP2.

APPLE BRINGING OUT 5GB iPOD MINI

Reliable sources on the internet suggest Apple is about to announce an updated 5GB iPod Mini, alongside the anticipated Flash iPod, which The Register says (7 Dec) is an obvous upgrade given that's the capacity offered by almost all mini rivals on the market today, such as Creative's Zen Micro. The Register says the iPod Mini is currently based on a 4GB, 1 in drive from Hitachi, or so it is believed. The Register says there's also talk of an iPod with integrated satellite radio to be found over on MP3newswire. It is claimed Apple may be planning to release a device that can receive signals from the US-based Sirius satellite radio service.

FIRST PEER-TO-PEER RADIO BROADCASTER

It's hardly news that millions of people use internet file-swapping networks for free, unfettered access to music. However, a Santa Clara, California start-up called Mercora has found a way to deliver just that - while complying with the letter of copyright law. The Mercury News reports (8 Dec.) that Mercora is the first peer-to-peer radio broadcaster, and its software lets people listen to songs off other people's computers. As with any file-swapping network, people can search for music by artist name or song title. The search results tell you where to go to hear a particular song. The Mercury says compared to a conventional radio broadcast that can reach an audience of millions simultaneously, peer-to-peer radio transmits music more intimately, from one person's computer to another's. The Mercury says the only wrinkle is that Merecora is licensed as an internet broadcaster. And, while you can listen to as many as 10 million songs in near-CD quality, you can't download a copy to your computer's hard drive, or burn it to CD. That's because Mercora plays music in a continuous stream. It's not a download store.

$US1 BILLION NVIDIA-SONY DEAL FOR PLAYSTATION 3

In a deal worth a potential $US1 billion to Nvidia, Sony has just announced that it will use the Silicon Valley company's graphics chip in the upcoming PlayStation 3 video game console. The Mercury News reports (8 Dec.) that the licensing revenue from the deal will likely become an important source of revenue for Santa Clara-based Nvidia at a time when income from a deal to supply chips for Microsoft's Xbox video-game consolse winds downs. Moreover, the Sony agreement ensures Nvidia's products will be at the heart of consumer electronics for years to come. The Mercury says that since 2001, Nvidia has generated nearly $1 billion in revenue from its deal to provide graphics and communications chips for the Xbox, accounting for about 20 per cent of total Nvidia revenue.

EXPERTS PUSH FOR US COMPUTER SECURITY EFFORTS

In the US computer security experts, including former government officials, have urged the Bush administration to devote more effort to strengthening defences against viruses, hackers and other online threats. The New York Times (7 Dec.) says the Cyber Security Industry Alliance has said that the government should spend more on computer-security research, share threat information with private-sector security vendors and set up an emergency network that would remain functional during internet blackouts.

IBM GIVES UP ON SCHLUMBERGER IRELAND BUYOUT

IBM has roportedly decided against buying the Irish arm of disaster recovery company Schlumberger, following a decision by the Competition Authority to block the deal. The Register in the UK reports (8 Dec.) that although IBM could elect to slog it out in the courts with the Competition Authority, it has decided to simply exclude Schlumberger's Irish operation from a global 200 million euro deal that should strengthen IBM's position in the disaster recovery business in Europe. Schlumberger Business Continuity Services (Ireland) is the biggest provider of disaster recovery services and "hot seats" in Ireland, accounting for 10 million euro of a 15 million euro market. IBM is its nearest rival.

CISCO MEETING REVENUE TARGETS

Cisco Systems, the maker of internet networking equipment, said this week that it was on track to meet Wall Street's estimates for 13 per cent growth in revenue for fiscal 2005. The company's chief financial officer told analysts that Cisco expected revenue to grow annually on the higher end of the 10 per cent to 15 per cent range through 2008, but some downward pressure on its gross margins was expected over the next several years. Cisco had revenue of $US22 billion in fiscal 2004, a 17 per cent increase over fiscal 2003.

INTEL 'RECOVERS' FROM MISSTEPS, POWERFUL NEW CHIPS INTRODUCED

Intel will miss its 2004 product cost reduction targets because of a widely publicised string of product delays and problems, but those missteps are largely behind it now, the world's largest chip maker told the markets this week. The company says it has recovered from the "missteps" and "the machine is firing on all eight cylinders in terms of new product introductions". The NYT says Intel has said it will not meet its goal of reducing microprocessor unit costs by 15 per cent this year due to "ups and downs", but unit costs will fall by 20 per cent between 2003 and 2006, even as Intel introduces more powerful features into its chips. Intel has added extra resources to introduce a chip-making technology called dual-core that boosts the power of computers to churn through multiple tasks at the same time, the paper reports.

IBM SELLS PC BUSINESS - ANNOUNCEMENT IMMINENT

IBM has reached an agreement in principle to sell its personal computer business to Lenovo, China's largest PC maker, in a deal valued at between $US1 billion and $2 billion, according to people close to the negotiations, reports The New York Times (7 Dec.). The paper says IBM is expected to maintain a small minority stake in the business and the sale is expected to be announced in China this Wednesday morning, or Tuesday night US time. The report by the NYT coincides with another report in the paper, also 7 December, where the Hong Kong listed Lenovo Group said it is "in acquisition talks with a major international technology company", but didn't name the company with which it is holding talks. Trading in the shares of Lenovo Group, formerly Legend, was suspended yesterday (6 Dec.) on the Hong Kong Stock Exchange when the company formally announced it was in acquisition talks. The paper says the tenative deal would include features to retain IBM customers and maintain the IBM brand for a bridge period of a few years, to give Lenovo the best chance of retaining IBM customers. For a period IBM would provide assistance with technical support and financing and access to IBM sales channels outside of China.

CLINTON LAUNCHES NEW, CHINESE-BACKED SEARCH COMPANY

Former US president Bill Clinton this week helped launch a new internet search company backed by the Chinese government which says its technology uses artificial intelligence to produce better results than Google. "I hope you make lots of money" Clinton told executives at the launch of Accoona Corporation, which donated an undisclosed amount to the William J Clinton Foundation. The New York Times/AP reports (6 Dec.) says the Chinese government, one of several large backers, has granted Accoona a 20-year exclusive partnership with the China Daily Information Company, the government agency that runs an official Chinese and English web site. The paper says the deal gives Accoona data on some 5 million Chinese companies, which Accoona sees as a lucrative opportunity as US businesses seek to do business in China ahead of the 2008 Olympic Games. According to the NYT, unlike traditional search engines that seek specific "keyword" matches, Accoona will acces web pages that may have no exact keyword matches but are still relevant to the query.

DELL SLASHES PRICES, BENEFITING FROM CHEAPER COMPONENTS

Dell has announced that it has cut prices by as much as a fifth for a range of products aimed at US corporate customers, as the computer maker passes on savings from cheaper components, including components from Intel. The New York Times/Reuters report (6 Dec.) says the world's largest maker of personal computers said it was reducing prices on server computers, workstation, desktop and notebook PCs and flat-panel computer displays. The NYT says the price reflects lower prices for components such as memory chips, computer hard disks and microprocessors, with price cuts ranging up to 22 per cent on a workhorse Dell PowerEdge server - the 4600 dual-processor model with four hard disk drives - which is now priced at $US4,194. Analysts say both contract and spot-market prices for computer memory chips fell in November, and they predict further declines in December.

IBM SEALS $US971 MILLION DEAL WITH LLOYDS

IBM has announced that it will provide voice and data services to British financial-services company Lloyds TSB Group for seven years in a deal worth $US971.6 million. IBM will act as the strategic technology partner for Lloyds TSB as the bank moves to a national network supporting both voice and data communications, reports The Mercury News (6 Dec.). The paper says the new infrastructure, to be rolled out over the next 20 months, will feature a single network for voice, data and video with direct links to mobile devices and call centre services. The deal includes 70,000 VoIP telephones, and will reduce Lloyds' network costs.

MYSTERY BIDDER ACQUIRES VALUABLE INTERNET PATENTS

In the US, an anonymous bidder has just acquired a set of patents covering important aspects of commercial inernet transactions for $US15.5 million, patents which some intellectual property experts say could be used to challenge internet services offered by companies like IBM, Microsoft and Sun Microsystems. The New York Times reports (7 Dec.) that the mystery unfolded in the Federal Bankruptcy Court when a lawyer acquired the patents for an anonymous bidder. The paper says the patent portfolio was auctioned as part of the bankruptcy of Commerce One, a highflier in the dot.comn era, and that the patent applications cover basic activities like using standardised electronic documents to automate sales over the internet. The acquiring company was identified only as JGR Acquisitions.

BELLSOUTH OFFERING NEXT GENERATION TECHNOLOGY

US telco BellSouth , the dominant local phone company in nine states, plans to deploy a next-generation DSL technology that will allow internet connections up to twice as fast as its existing service. SiliconValley.com reports that the network upgrade will cost up to $US2 billion, the company this week told an investor conference, and the technology, ADSL2+ will enable download speeds bewteen 4 megabits per second and 6mbps, and upload speeds from 512 kbps to 768kpbs. This would be up from the current maximum download speed of 3mbps with uploads of 384kbps available. The new BellSouth service is due to arrive in select markets by next year, with the company saying it may be able to reach 80 per cent of households in its territory with the new technology at a cost of roughly $US300 per household.

ORANGE UNVEILS 3G PHONES IN LONG-DELAYED LAUNCH

Orange has unveiled its third-generation (3G) mobile phones in a long-delayed commercial launch, with seven new handset models aimed at its key French market and at least four at Britain in time for Christmas. France Telecom unit Orange, which has spent more than 7 billion euros ($US9.4 billion) on licenses for high-speed 3G services in the UK and France, said it was targeting more than 10,000 3G customers in France by year-end and 1.5 to 2 million in Britain by 2007, reports The New York Times (6 Dec.). The paper says Orange's 3G phones will provide services including quality music and video, movie clips, TV and speedy mobile web access. Orange follows Germany's T-Mobile, Spain's Telefonica Moviles and Italy's TIM in bringing 3G phones to home markets. But, market leader Vodafone unveiled the most comprehensive 3G launch last month, with 10 handset models across 13 markets, the NYT reports.

SITE FOR SALESPEOPLE TO SWAP CONTACTS

A new Californian start-up called Jigsaw (www.Jigsaw.com) says it is launching a platform where users can buy, sell and trade business cards, reports SiliconValley.com. SV quotes Jigsaw's CEO as saying salespeople will love the site because without it they consume about a third of their time searching for the right people to contact and then hunting down their details - and, venture capitalists believe him. The company raised $US750,000 seed money in December 2003 and also secured further money this year, in another $5.2 million package of funds. Launched officially this week, the site has had 205,606 business cards put in while running in test mode since May this year.

TELECOM ITALIA ACQUIRING MOBILE UNIT, FOLLOWS FRANCE TELECOM

Telecom Italia is set to approve a plan to buy the 44 per cent it does not own of its mobile phone unit, Telecom Italia Mobile, in a deal valued at about 20 billion euros ($US26.8 billion), according to people close to the negotiations. The New York Times reports (7 Dec.) that Telecom Italia will first make a cash offer worth about 12 billion euros for two-thirds of the outstanding shares of the mobile unit, and in a second step will make a separate stock offer for the unit's remaining shares. The NYT says Telecom Italia is travelling a path blazed recently by France Telecom which paid more than 6 billion euros this year to buy out the minority sharteholders of Orange, its mobile unit. The paper also reports that Deutsche Telekom is currently seeking to buy the shares it does not already own of its internet subsidiary, T-Online International.

'THINKING CAP' CONTROLS COMPUTER IN EXPERIMENT

Four people - two partly paralysed men who used wheelchairs and a healthy man and woman - were able to control a computer using their thoughts and an electrode-studded "thinking cap", US researchers reported yesterday. The New York Times/Reuters reports (6 Dec.) that researchers say their set-up could someday be adapted to help disabled people operate a motorised wheelchair or artificial limbs. The paper says the experiment was reported in the Proceedings of the National Academy of Sciences, and required no surgery and no implants. During the experiment the four volunteers faced a video screen wearing a cap that held 64 electrodes against the scalp to record brain activity, with the key a special computer algorithm - a program that translated the brain signals into a meaningful directive of what the users wanted the computer to do, the paperri reports.

ORACLE'S DILEMMA OVER EXPANSION IN MATURING INDUSTRY

Oracle's hostile bid for PeopleSoft has sparked plenty of fireworks over the past 18 months, but it has also highlighted a more subtle dilemma - Oracle's struggles to expand in a maturing software industry. Oracle's mainstay has been database software, a market where growth has just begun to pick up after the economic slowdown that choked off corporate spending. Applications software, a much smaller part of its business, has long been Oracle's weakness - hence its full-throttle campaign to acquire rival PeopleSoft. The report on Oracle in the MercuryNews (6 Dec) says that in its hunt for growth, Oracle aims to become more of a one-stop shop, providing virtually all layers of corporate software for its customers. The paper says that as Oracle navigates the fiercely competitive business-software industry, with tough competition from IBM and Microsoft, the company will showcase its plans for growth this week at a conference where 25,000 customers, business partners and others are expected to gather.

US REVIEWING LAW GOVERNING TELECOMMUNICATIONS & NEW TECHNOLOGIES

US lawmakers and telecommunications industry executives are talking about rewriting the eight-year-old landmark law governing the nation's telephone, cable and media businesses next year because, they say, it has already become outdated by new technology and industry trends. The New York Times reports (6 Dec.) that the law makes significant regulatory distinctions about certain industries, like cable and telephone, and certain kinds of services, including subscription and free over-the-air television, even though most consumers barely notice any differences among them. But, the paper reports, the law says nothing explicit about how to regulate such nascent services as telephone offered over the internet (VoIP). And, it never anticipated the enormous popularity of mobile phones, the rapid decline of the long-distance carriers or the prospect that regional Bell operating companies would begin to enter the television business.

SAMSUNG LEADS MOTOROLA IN MOBILE SALES, OR DOES IT?

Samsung is now the world's second-largest mobile phone-maker, behind Nokia, finally knocking Motorola into third place, according to market-watcher Gartner. The Register reports that despite the new figures for Q3, Motorola could still pull ahead again. During the third quarter, according to Gartner, some 167 million handsets were shipped worldwide, up 23 per cent on the same quarter last year. However, another researcher, In-Stat/MDR, had similar figures for the industry to Gartner, but did not put Samsung ahead of Motorola. It reported Motorola with a market share of 14.1 per cent and Samsung not far behind with 13.8 per cent.

SAMSUNG'S HUGE INVESTMENT BY 2010

Samsung Electroncs, the world's largest maker of memory chips, has announced it will invest $US24 billion in its semconductor business by 2010. In a statement to mark 30 years in the business, the Korean company also forecast that semiconductor sales this year will surge 60 per cent to a record high. The New York Times/Reuters reports (5 Dec) that Samsung reported 17.9 trillion won in chip sales in 2003, while capital investment in the business for 2004 is estimated at 5.77 trillion won. Samsung expected the investment in its business over the next few years would create 10,000 new jobs by 2010.

TELSTRA BACK IN BUSINESS EQUIPMENT MARKET

Telstra's back into the market for telecoms business equipment after a five-year absence with the launch of Telstra Business Systems. The AustralianIT reports (7 Dec.) that the telecoms giant has returned with a range of Telstra-branded equipment made by Korean manufacturing powerhouse LG, and deals with other vendors are set to follow. The paper says Testra has three products available - two LG systems and an Alcatel system; the company has two CPE (customers premises equipment) bundles with carriage, maintenance and installation, and there are 40 dealers up and running. Telstra says it is putting out requests for information for a broader range of manufacturers.

CIOs DOING WELL IN BUOYANT IT SECTOR

Many chief information officers are expected to take up new job opportunities next year buoyed by the end-of-year bonuses and healthy share options, according to new research. The AustralianIT (7 Dec.) says the upturn, after years of gloom in the IT sector, will put increasing pressure on salaries, with a CIO starting base of $200,000 - up from $180,000 this year. The paper says the research findings - by Ambition Technology Market Trends and Salaries Report Australia Summer 2005 - found that salaries rose by 10 per cent in 2004, with movement at middle levels in particular. Contracting rates rose by 16 per cent, driven by demand for multi-lingual support staff.

SYDNEY FUTURES EXCHANGE SYSTEM DELAYED AGAIN

A new technology platform to settle $500 billion in bond and other security trades has been hit by a second delay after a group of banks and trading houses called for urgent work to be done on the system at the Sydney Futures Exchange. The Australian Financial Review (AFR 7 Dec.) reports that the delay means the system is not expected to go live until March next year, 12-months later than planned. The paper reports that the ambitious project was intended to go into use with up to 650 banks and other businesses last March but the date was put back to November, and then rescheduled after resistance from the traders expected to use it. According to the paper the delays are a significant setback for the platform, known as Exigo, which is regarded as the first of its kind in the world, not only for its technology but also for the use of an innovative outsourcing agreement.

JAP. MOBILE MAKERS IMPROVING SOUND SYSTEMS

Japanese mobile phone operators are taking phone sound systems to the next level with stereo-quality songs that can be fully downloaded and edited, as well as surround-sound systems that trick users into hearing a bell ringing behind them or a ball whizzing by. The New York Times/Reuters reports (5 Dec.) as consumers lose their fascination with embedded digital cameras, high-speed internet connections, action-packed games and other entertainment features, operators are turning back to the basics of sound as a way to differentiate themselves. The paper says mobile phone carriers and handset makers around the world are scrambling to combine music players with phones, but Japanese operators are also focusing on improving the quality of the sound itself.

GOVT. FUNDING FOR REGIONAL BROADBAND

The federal government will hand out a further $2.7 millon to push broadband in regional Australia through community-based broadband brokers. The second phase of funding announced by Minister for Communications, Information Technology and the Arts, Helen Coonan, is open to organisations that support brokers who promote broadband and aggregate demand within a local area. The AustralianIT reports (7 Dec.) that this second round of funding would begin on 1 July, 2005 and end on 30 June 2006. Each applicant could request between $50,000 and $300,000 to support the activities of their broker, acording to the tender documents.

EXPERT TO GIVE EVIDENCE IN KAZAA CASE

High-profile US academic Doug Tygar is on a list of expert witnesses, including some of the world's sharpest technology brains, expected to give evidence this week in court in Sydney in the ongoing Kazaa lawsuit. The AustralianIT reports (7 Dec.) that the professor of computer science and information management at the University of California, Berkley, has seen this sort of litigation before when he provided an expert's report in the 2000 Napster case, when the music industry first challenged the file-sharing networks. Record companies - including Universal, EMI, Sony BMG, Warner and Festival Mushroom - are taking on Kazaa's Australian owner Sharman Networks in a civil copyright violation case, arguing the company could stop its users trading pirated files.

SURPLUS CASH, NEW FOCUS ON CHINA BY VENTURE FIRMS

Venture capitalists are focusing on China as a place to put investment dollars, partly because they are sitting on more money that they could possibly invest in American-based start-ups. The New York Times reports (6 Dec.) that collectively, venture firms in the US have on hand $US64 billion, according to one research firm, yet they are investing only about $5 billion a quarter. The paper says investors who are focusing on semiconductor, telecommunications and internet start-ups also want to tap China's potential to provide outsourcing services to the companies already in their portfolios.

US TACKLES CHINA PIRACY PROBLEM

After years of careful, nuanced and largely unsuccessful diplomacy intended to stop the widespread piracy of American goods in China, the US has shifted its approach and posted an officer in Beijing to address the problem directly. The New York Times reports (6 Dec.) that American companies lose billions of dollars every year to counterfeiting, with the International Intellectual Property Alliance estimating that 90 per cent of the DVD's CD's and digital games hawked by street vendors and sold in shops in China are pirated. In 2003, American business lost $US2.5 billion to copyright theft originating in China, according to the alliance.

CHINA LOVES THE WEB, MOST OF THE TIME

As the number of people online in China has quintupled over the last four years, the government has shown itself to be committed to two concrete, and sometimes competing, goals - strategically deploying the internet to economic advantage while clamping down - with surveillance, filters and prison sentences - on undesirable content and use. The New York Times reports (6 Dec.) that experts predict that both trends are likely to continue, even though China's rulers are bent on putting communications, mobile phones, internet access and the new growth area, broadband, into as many hands as possible. The paper says China is already the largest mobile communications subscriber in the world, with more than 320 million subscribers. Internet users are estimated to be near 90 million.

AUSTRALIAN WIRELESS TAKEUP SLOW, BUT SHOULD SURGE SOON

Australian organisations are slow to adopt wireless technologies compared with their overseas counterparts, according to a global survey. The Australian Financial Review (AFR 7 Dec.) reports that a report by consulting company AT Kearney concluded that the use of wireless had been held back by concerns over security and poor geographic reach but that growth would surge soon. AT Kearney said sectors such as education, health care and transport would probably lead the use of the new wireless services, with many people currently at the business-case development stage.

ISPs RAISE CONCERNS WITH US FTA

The passage of the US Free Trade Agreement enabling legislation in the Australian parliament has been thrown into doubt after the government agreed to an 11th hour review of key concerns outlined by the Internet Industry Association (IIA). The Australian IT reports (6 Dec.) that concerned ISPs met with the Trade Minister Mark Vaile to outline their problems with items 11 and 13 of the legislation amending the Copyright Act. They also met with Attorney-General Phillip Ruddock and Communications and IT Minister Helen Coonan, as part of a last-ditch campaign to have the additional copyright requirements amended.

AUSTRALIAN E-PASSPORTS PASS TRIAL IN US AIRPORT

United States authorities endorsed Australia's electronic passport last week after inaugural trials at a Washington airport showed the high-tech document was compatible with US border infrastructrure. The Australian Financial Review (AFR 7 Dec.) reports the success of the trials is a major milestone in the Department of Foreign Affairs and Trade's $160 million e-passport program that will result in new passports being distributed to more than 1 million Australians a year from October 2005 if it gets final go-ahead from the federal government.

FUJITSU, CISCO JAPAN ALLIANCE

Electronics maker Fujitsu and internet technology giant Cisco have agreed to work together on developing high-end routers used for advanced internet networks in Japan, the two companies have announced. The AustralianIT reports (6 Dec.) that the alliance will take advantage of Cisco's leadership in internet protocol technology and Fujitsu's edge in networking products. The companies will be able to provide better quality products to telecommunication service providers more quickly, according to a joint statement, reports The Australian.

BRAZIL'S AMBITIOUS SOFTWARE INDUSTRY

Brazil's drive to increase computer software exports is beginning to show results and the government expects the sector to sell about $US400 million abroad this year, four times what it exported in 2001. The New York Times/Reuters report that these figures are still well short of the government's ambitious target to put Brazil on the global software map with the likes of China and India and notch up $2 billion in software exports per year by 2007. The paper quotes a government spokesperson as saying that the government and the private sector invested at least 280 million reais ($103 million) in the software sector this year, and there are now some 15,000 software companies in Brazil.

RUSSIA WANTS HIGH-TECH TIES WITH INDIA

Russia's president Putin has sought to put Moscow's economic ties with India on a new high-tech footing, after backing its bid for a veto-wielding seat on an enlarged UN Security Council. The AustralianIT reports (6 Dec.) that Putin told business leaders in a speech in Bangalore that Russia wanted an economic relationship with its old Cold War ally that would put greater stress on high-tech, rather than traditional commodities and raw materials. He stressed the need for both nations to set "broader objectives" in spheres such as information technololgy, telecoms, electronics and drugs.

COPYRIGHT, FILE-SHARING : THE ARTISTS HAVE THEIR SAY

The battle over digital copyrights and illegal file sharing involving the recording industry and online music junkies who want to download and share copyrighted material without restriction, rarely seems to take into account the views and opinions of the artists. However, the New York Times reports (6 Dec) a survey by the Pew Internet and American Life Project - titled "Artists, Musicians and the Internet" has surveyed 2,755 musicians, who were recruited through email notices and other online means, with 37 per cent of them saying that file-sharing services and those who use them ought to share the blame for illegal trades. Only 17 per cent singled out the online services themselves as the guilty parties. The paper says the survey found that only about half thought that sharing unathorised copies of music and movies online should be illegal and nearly two-thirds said such services should be held responsible for illegal file swapping, with only 15 per cent holding individual users responsible.

IT INDUSTRY ABUZZ OVER IBM DECISION TO SELL PC BUSINESS - WHAT WILL HP & DELL DO?

IBM's reported decision to sell its PC business (see story below) has sent the rumour and gossip mills in the IT industry into overdrive. Is IBM negotiating to sell the business, which some say will fetch up to $US2 billion, to giant Chinese computer maker, Lenovo. Executives at Dell and Hewlett-Packard are reportedly smiling, and analysts are speculating on what the two companies might do about trying to grab IBM's customers. Lenovo reportedly has sales of over $US3 billion last year and is currently ranked eighth globally among PC makers.The New York Times and SiliconValley.com report (4 Dec.) that many in the industry are concerned that an IBM withdrawal could accelerate competition in an industry where prices are already falling. One analyst, reported the NYT, said an IBM deal with China's Lenovo "would put up a significant roadblock to Dell and H-P's Asia Pacific expansion. Others noted that a larger Lenovo, already China's biggest PC maker and partly owned by the Chinese government, could have the power to further squeeze down prices because of its track record as a producer of low-cost machines. While reports say IBM is also negotiating with another potential buyer, most analysts don't believe that another US company is interested in IBM's PC business. Both papers say the sale of IBM's PC business could provide a temporary boom in business for Hewlett-Packard and Dell as they swoop in to snare confused IBM customers.

IBM SELLING PC BUSINESS: PRICETAG $2 BILLION

IBM has reportedly put its personal computer business up for sale in a deal that could fetch as much as $US2 billion, as the company apparently moves to shift its focus to more lucrative segments of the computer business. Both the New York Times and SiliconValley.com carry the report (3 Dec.), with sources close to the sale negotiations saying that IBM is in serious discussions with the Lenovo Group, China's biggest maker of personal computers, and at least one other unidentified prospective buyer for the unit. The NYT says that while IBM long ago ceded the lead in the personal computer market to Dell and Hewlett-Packard, so it could focus instead on on the more lucrative corporate server and computer services business, a sale would nonetheless bring the end of an era in an industry that it helped invent. The paper says the retreat from the business may be the ultimate acknowledgement that the personal computer has become a staple of everyday life, a commodity product, yielding very slim profits. SiliconValley.com reports that analysts have said a sale of the PC business would make sense for IBM, with the business accounting for about 10 per cent of IBM's total sales. SV.com also quotes a Morgan Stanley analyst as commenting that IBM's profits from the unit have been slim, with PC business contributing less than 1 per cent of the company's earnings per share. According to SV, while IBM designs all its PCs, the company no longer makes PCs at any plants it owns alone, with all its PCs now either produced through joint ventures or outsourced to other manufacturers.

LEGISLATION PROHIBITS INTERNET TAXES

State and local governments in the US will be barred from taxing connections that link people to the internet for the next three years under legislation signed on Friday by President Bush. The New York Times (3 Dec) says the measure blocks taxation of all types of internet connections, from traditional dial-up services to high-speed broadband lines. The new law, which remains in effect until 31 October 2007, will help ensure that less-affluent Americans can afford internet access.

US SUPREME COURT CONSIDERING HOW TO CLASSIFY THE INTERNET

The US Supreme Court last Friday stepped into one of the most heated debates over the future of the internet - how to classify high-speed internet cable service for purposes of federal legislation and, ultimately, for the question of whether competing internet service providers are entitled to use the cable companies' networks to reach their subscribers. The New York Times (4 Dec.) said the Justices accepted appeals by the Bush administration and the cable industry for a federal appeals court decision that struck down large portions of a deregulatory order issued by the Federal Communications Commission in 2002. The order freed companies that provide cable modem service of the obligation that federal law places on providers of "telecommunications services" to open their networks to their competitors.The FCC had decided after two years of study that broadband cable service was an "information service" and not a "telecommunications service". But the US Court of Appeals disagreed, ruling last year that cable broadband service was a hybrid that could not be freed of administrative decree from its common-carrier obligations.

LYCOS ABANDONS ANTI-SPAM COUNTER ATTACKS

Only days after announcing the launch of new screensaver software to fight spam, European web-portal, Lycos, has now terminated its spam-fighting campaign after it was criticised as a breach of internet civility. SilconValley.com reports that Lycos' decision to abandon its campaign followed complaints from security experts that the company was acting as a vigilante and could potentially harm legitimate web sites by distributing a screensaver program that aims to overwhelm what Lycos defines as spam servers. SV.com reports a Lycos spokesman as saying that the "Make Love Not Spam" campaign was always meant to be temporary. He said Lycos had decided to stop it solely because the company felt satsified the program had managed to raise awareness and spark discussion. Reportedly, about 100,000 people had downloaded the free screensaver, but those screensavers willl no longer send such traffic because Lycos disabled the site list.

NSW POLICE TENDER PROMPTS FIERCE COMPETITION

NSW police appears poised to reap the rewards of fierce competition between communication services suppliers after it pitted more than 20 vendors against each other for a single element of its controversial $250 million computer systems overhaul, reports The Australian Financial Review (AFR 6 Dec.). The paper says the move lines 21 suppliers up against each other for a share of millions of dollars worth of business managing and maintaining the computer networks that link hundreds of NSW police stations and offices. The AFR says the 21 short-listed businesses now have until 6 January to submit tenders for network management project, with AAPT, Optus, PowerTel, Soul Pattinson Communications, Macquarie Corporate, Dimensions Data, Marconi Australia, MCI Worldcom Australia, NEC, NCR and Hewlett-Packard all in the running, the paper says.

IT JOB VACANCIES RISE

The latest data from Olivier Recruitment Group's November survey of internet job advertisements shows vacancies in the IT sector rose 5.97 per cent on a seasonally adjusted basis during the month. The Australian Financial Review (AFR 6 Dec.) says the survey showed that the IT index on a seasonally adjusted basis was now at 81.62 per cent higher than last year. On average 13,496 IT jobs were advertised in November, with the AFR saying the rise in vacancies indicates it is a good time to apply for jobs.

BERRI PLANS MAJOR BUSINESS SYSTEMS UPGRADE

Fruit juice manufacturer Berri is planning a wide-ranging upgrade of its business systems next year as it joins a host of organisations spending tens of millions of dollars on new and updated software to cut supply chain costs, reports The Australian Financial Review (AFR 6 Dec.). According to the AFR the upgrade will affect a number of applications installed as part of Berri's enterprise resource planning (ERP) system, including financials, distribution, sales, manufacturing and warehousing. The paper says the Berri upgrade parallels high-profile business software projects under way at companies such as BlueScope Steel and Super Cheat Auto

DO-IT-YOURSELF BAGGAGE CHECK-IN IN US AIRPORTS

Experienced travellers have grown accustomed to handling many duties that use to fall to airline personnel, from booking tickets to printing boarding passes. Now consumers are taking charge of another responsibility - checking in baggage. The New York Times reports (5 Dec.) that several US airlines, including Alaska, Northwest and Southwest, have begun using machines in a growing number of airports that allow passengers to print out their own baggage tags, albeit under the watchful eye of a nearby counter clerk. Once the stickers are affixed to suitcase handles, passengers tote their bags over to security screening machines, hand them to an attendant, and watch them go up a conveyor belt and vanish into an X-ray machine, after which the bags are sent on to airplanes. The NYT says it is the latest way for passengers to save time and for airlines to save money, a top priority for an industry that is expected to lose another $US5.5 billion this year, on top of $30 billion in losses snice 2000.

MICROSOFT ACTION AGAINST SENDERS OF 'SEXUALLY EXPLICIT' SPAM EMAILS

Microsoft has just announced it has filed seven lawsuits against senders of spam, or unsolicted email, for transmitting messages without labeling them as sexually explicit content. The New York Times reports (2 Dec.) that Microsoft said the defendants, who had yet to be identified in the lawsuit, violated the "CAN-SPAM" federal US law requiring email containing readily viewable sexually explicit images to be clearly identified. The law requires that such emails contain the label "Sexually-Explicit" in the subject line and at the top of the email messages. The paper says Microsoft is currently involved in more than 100 lawsuits against spammers globally.

DELL-PHILLIPS $US700 MILLION DEAL

Dell has announced that it has won a $US700 million five-year contract to provide computers and services to Royal Phillips Electronics. SiliconValley.com reports that Dell will supply the Dutch electronics giant with desktop and notebook computers for 75,000 workstations in 60 countries. Dell said the deal supported the company's decision to build its managed-services business starting three years ago, where it competes against more-established services companies such as IBM, H-P and Accenture. In October, Dell won a 3-year deal to manage 16,000 desktops and notebooks for Honeywell International in 15 European countries.

INTEL'S DRAMATIC RISE IN REVENUE FORECASTS

Semiconductor giant Intel has dramatically raised its fourth-quarter sales forecast, citing surprisingly strong demand across its line of chips for personal computers. The New York Times and SiliconValley.com both report (2/3 Dec.) that Intel has now said its revenue for the fourth quarter would be $US9.3 billion to $9.5 billion, substantially higher than the $8.6 to $9.2 billion the company predicted in October. Both publications say the announcement provided some relief to Wall Street after a string of product delays, inventory problems and project cancellations in recent months by Intel. Intel's chief rival, AMD, has made its biggest gains in revenue market share since 2002.

NAPSTER FOUNDER BACK IN MUSIC BUSINESS

Teenage Napster founder, Shawn Fanning, once reviled by record labels as the creator of the renegade song-swap service, this week launched a new service designed to turn the threat of still popular peer-to-peer services into an opportunuity for music companies and artists. The New York Times reports (3 Dec.) that Fanning, now 24 is part of a new venture called Snocap which has just reached a deal for Vivendi Universal's Universal Music Group to license its catalog. After registering music and copyright information in Snocap's database, labels and artists can manage online distribution through Snocap's copyright management system, which lets them set rules for each track on a global basis. The paper reports Fanning as saying that Snocap will expand the digital music market by giving authorised services the broad selection of track music that makes peer-to-peer services popular. The original Napster was eventually shut down in 2001 by copyright litigation and then sold to Roxio which re-launched it as a paid online service.

iPOD SALES STRONG, BUT APPLE SHARE RATING LOWERED

Sales of Apple's iPod music player are expected to reach 3 million units in the fourth quarter after hitting 2 million in the second quarter, just as analysts this week downgraded Apple stock to "hold" from "buy", sending the share price down by $2.53, of 3.9 per cent. SiliconValley.com reports (3 Dec.) that analysts said, in lowering the rating, that any future earnings increases, particularly from the iPod music player, have already been priced into the stock. SV.com reports that the iPod currently has 80 per cent of the market for music players with hard drives, but analysts cautioned that a continuation of iPod's exponential growth was clearly impossible, adding that iPod's market share could fall to 60 per cent if better competing players are introduced.

APPLE iTUNES MUSIC STORE OPENS IN CANADA

Apple Computers this week launched its iTunes online music store in Canada, the 14th country in which the popular service is available. The New York Times reports (2 Dec.) that iTunes, which only works with Apple's market-leading iPod digital music player, is in addition to the US, available in France, Germany, England, Spain, Portugal and other countries. Apple reports that the demand for iTunes Music Store in Canada has been overwhelming, and the new Canadian store has more than 700,000 songs and dozens of exclusive tracks from a variety of worldwide artists. Users of iTunes stores can play songs on up to five personal computers, burn a single song onto CDs an unlimited number of times, burn the same playlist up to seven times and listen to music on an unlimited number of iPods, the NYT reports.

CHIP PRICE FIXERS AGREE TO SERVE JAIL TIME

Four sales executives of German chip maker Infineon Technologies have agreed to plead guilty, pay fines and serve time in prison for participating in a conspiracy to fix the prices of computer memory chips. The New York Times reports (3 Dec.) that the four men - three Germans and an American - will serve up to six months in prison and pay $US250,000 in fines, according to a plea agreement filed in a federal district court. The move comes two months after Infineon agreed to plead guilty to price-fixing charges and pay a $160 million fine as part of the Justice Department's two-year probe into the prices of dynamic random access memory used in computers and other electronics.

CALIFORNIA TO NOTIFY 1.4 MILLION OF HACKING RISK

The State of California will next week spend $US691,000 mailing notices to 1.4 million Californians alerting them that their personal information might have been accessed by a hacker in August. SiliconValley.com reports (3 Dec.) that the mailers represent the state's latest effort to warn those residents about an attack on a University of California-Berkley computer, in which a hacker gained entry to a system with names, addresses, birth dates and Social Security numbers. The state had provided the information to the university for a study of recipients and caregivers in a program asssisting the sick and elderly in their homes.

INTELSAT REGAINS SATELLITE CONTROL

Intelsat has regained control of a communication satellite whose failure had threatened the planned $US3.1 billion sale of the company. SiliconValley.com reports (3 Dec.) that service from the Americas-7 satellite was lost last Sunday following a sudden electrical distribution anomaly. The satellite, launched in September 1999, provides service to North America, Alaska, Hawaii, and part of South America. The loss gave Zeuss Holdings the right to cancel its acquisition of Intelsat under a deal announced in August, reports SV.com.

CENDANT TO BUY UK ONLINE TRAVEL BUSINESS, EBOOKERS

Cendant, which franchises hotels and owns the Avis and Budget rental-car businesses, has agreed to acquire ebookers PLC, one of Europe's leading internet travel sites for $US404 million. SiliconValley.com reports (2 Dec.) that Cendant has been pushing hard into the online travel business, having purchased US site Orbitz in September for $1 billion. Although it is one of the more popular travel bookers in Europe, with operations in 13 countries, Britain-based ebookers has posted a string of profit warnings the past two years.

MICROSOFT TO OFFER BLOGGING TO MASSES

Hoping to keep more inernet users faithful to its brand, Microsoft has become the latest company to offer blogging to the masses, announcing that MSN Spaces will debut in test form this week. SiliconValley.com reports (1 Dec). that MSN Spaces makes it easy to set up web journals without needing highly technical skills, and it is targeted at home users who want to share vacation pictures, text journals or a list of favourite songs. The service will be free to anyone with a Hotmail email or MSN Messenger account, both of which are also free. MSN Spaces will be supported by banner ads.

GOOGLE ALSO ENHANCING INFORMATION SHARING SERVICES

As Microsoft announced its new MSN Spaces service to enhance information sharing, so Google has anounced that this week it plans to bring out a second version of its Google Groups service, based on Usenet, the online message archive which it acquired in 2001. The New York Times reports (2 Dec.) that the new version of Groups is intended to make it easier for inernet users to manage lists for online discussion groups and create both public or private discussion groups on any topics. Google said that the Groups service is now the company's third-largest source for advertising revenue behind its web and image search services. Google's search engine has become a powerful - and lucrative - drawing card, but the company is battling to maintain its edge as both Yahoo and Microsoft's MSN put their marketing muscle behind their own rival products. The NYT says that through September, Google held a 34.9 per cent market share of online search followed by Yahoo at 31.5 per cent and Microsoft at 15.2 per cent.

WALT DISNEY GETTING INTO WIRELESS PHONE SERVICES

US sports cable channel ESPN is to launch its own branded wireless phone service next year, the first in a series of branded cell phone services planned by the Walt Disney Company, reports SilconValley.com (1 Dec.). The venture will sell ESPN-branded handsets, accessories and applications, including access to sports headlines, photos, ring tones and streaming audio and video over Sprint's high-speed data network. ESPN has said the service will begin testing in the second half of next year, with a limited rollout in 2005 and a national rollout in 2006. Sprint, which has about 2.8 million customers of its wholesale business, will sell the time to ESPN on a wholesale basis in a similar deal it has begun with Virgin Mobile and AT&T.

IBM'S NEW CELL CHIP: A REAL THREAT TO INTEL PENTIUM

Details are leaking out about IBM's new Cell chip, developed jointly with Sony and Toshiba, and which experts who now know more about it, say it might challenge Intel Pentium's chip market dominance. The New York Times reports (2 Dec.) that the Cell chips are expected to have a wide impact on everything from handheld computers to supercomputers, but the biggest potential use is for Sony's PlayStation 3 video-game console which is expected to debut in 2006. The paper reports that many analysts believe that if the Cell is successful, it will become the biggest threat to Intel's dominance of the chip industry. In a disclosure, IBM has said it has made the Cell chips that run at 4.6 gigahertz and operate at 1.3 volts. Analysts say that the speed is notable because Intel cancelled its 4-gigahertz Pentium 4 chips this year.

NOKIA EASILY LEADS MOBILE PHONE MARKET

Nokia increased its global market share of mobile phone handsets for a second successive quarter, reaching 30.9 per cent with sales of 51.7 million units, according to research by Gartner. The New York Times/AP report (1 Dec.) that the announcement came as Nokia said this week that it planned to invest as much as $US150 million in a new plant in India to manufacture handsets and other mobile appliances to meet growing regional demand. Gartner said Nokia managed to increase its market share from 29.7 per cent in the second quarter mainly because of price cuts on new models, many of which sport camera phones and some clamshell-style models. The paper says South Korea's Samsung was second ranked with 13.8 per cent, followed closely by Motorola of the US with 13.4 per cent, Germany's Siemens with 7.6 per cent, South Korea's LG at 6.7 per cent and the joint Swedish-Japanese venture Sony Ericsson with 6.4 per cent.

EUROPEANS MOVING AWAY FROM TV WATCHING TO THE NET

The inernet is causing more people in Europe to spend less time watching TV, according to new market research. The Register (2 Dec.) reports a study entitled "Evolution of Media Use in Europe-Web Inmpacting Consumption" by Jupiter Research as showing that 27 per cent of web users in Europe are spending less time in front of the telly and are instead surfing the web. In 2001, only 17 per cent of respondents to a similar study admitted watching fewer hours of TV in favour of the net. The report covered six of the biggest economies in Europe, including Germany, Sweden and Italy. Juniper Research concluded that the internet was having the greatest negative impact on TV consumption in the UK, France and Spain. It said that in these markets higher broadband penetration is a key driver of cannibalisation as broadband users tend to spend more time online compared with dial-up users. In western Europe, the report revealed that an average of 40 per cent of broadband users said they spent less time watching TV since using the web. The Register says the study also noted that Europe's taditional newspapers will also face turbulent times, with 18 per cent of internet users in the survey admitting they spend less time reading papers. In 2001 that figure was 13 per cent.

IBM SIGNS OUTSOURCING DEALS WITH DANISH COMPANIES

IBM has just announced that it has signed a pair of outsourcing contracts worth more than $US1 billion with two Danish companies, continuing its push into northern Europe. The New York Times/AP report that the two Danish companies - the Dankse Bank Group and the shipping giant A.P.Moller-Maersk Group - have signed deals with IBM to take over their date centres and information technology work. The outsourcing deals are part of IBM's acquisition of both companies computer services units this year.

IBM GATHERS ASIAN BACKERS FOR ITS POWER CHIP PUSH

IBM plans to unveil this week a group of partners to promote its Power computer chips in a range of electronics, seeking to bring the community-minded innovation of Linux software to hardware. The New York Times/Reuters report (2 Dec.) that IBM has said it will announce in Beijing an organisation called Power.org (http://power.org/) with backers including Sony, Novell, Chartered and Semiconductor Manufacturing International. The paper says the world's largest computer maker is seeking to capitalise on the in-roads IBM has had in winning over makers of major viedo game consoles, automotive electronics and other speciality electronics to use Power miocrprocessor.

LOW-COST VERSION OF WINDOWS FOR DEVELOPING COUNTRIES

Microsoft has just announced that it will begin shipping a low-cost version of ts Windows XP operating system to three Asian countries and Russia within weeks, tapping developing markets as growth slows elsewhere. Windows XP Starter Edition will launch in Malaysia and Indonesia by the end of the month and in Indian and Russia early next yerar. It is already available in Thailand, where Microsoft kicked off a one-year pilot program for the stripped-down software last month. Starter Edition combines basic features of the full XP software with a help system designed for first time users and local language options, reports the NYT.

MORE EVIDENCE THAT INTERNET ADVERTISING IS HOT AGAIN

In another consolidation in the hot-again business of internet advertising, a web video specialist in the US called Viewpoint has agreed to buy Unicast Communications, which delivers ads to web sites for marketers, for about $US7.4 million. The New York Times reports that the deal follows other mergers and acquisitions by both small and large companies vying to become one-stop web shops for advertisers, more of whom are getting online in a big way. For example, this year America Online paid $435 million for Advertising.com which sells ads on a network of websites. And, Digitas, the interactive and direct marketing agency, brought Modem Media in a stock transaction valued at about $200 million, reports the NYT.

NINTENDO DS VIDEO GAME RUSHED AT MARKET LAUNCH

Ninetendo's DS video game player saw strong sales on its debut in Japan this week, kicking off what is expected to be a fierce fight with rival Sony's Playstation portable. The New York Times/Reuters report (2 Dec.) that many Tokyo stores opened three hours earlier to accommodate eager fans looking to get their shopping in before work, and retailers reported a steady stream of customers. Some 500,000 of the Nintendo machines, about the size of a paperback book and with two screens - one of which is touch-sensitive, went on sale at 15,000 yen (US146) apiece. Ninendo rival Sony launches its PlayStation Portable (PSP) machine in Japan on 12 December at 19,800 yen.

iPOD SPAWNS SERVICE INDUSTRY

The growth of Apple's iPod as a must-have consumer item has, in turn spawned some entepreneurial enterprises to service users of the music device. The New York Times reports one young entepreneur. Catherine Keane, 23, in New York has started a business called HungryPod, which converts CD's to MP3 format and loads them onto an iPod or any other digital music player. Ms Keane will go to a customer's home or office, pick up CDS and take them back to her office. The paper reports another New York company, RipDigital started offering its services nationwide late last year to convert music libraries to MP3 .

WARNER-ERICSSON DEAL TO DISTRIBUTE MUSIC ON MOBILE PHONES

Looking to expand its offerings to European consumers, Warner Music International and Telefon AB Ericsson this week said they plan to start distributing some of the label's artists music via mobile phone in Europe. The New York Times/AP reports (1 Dec) that by using Ericsson's mobile music service M-USE, Warner will be able to distribute some of its most popular artists in as many as 28 markets in Europe, through traditional ring tones, as well as artist logos, autographs and ring tones based on original recordings. Warner Music content is already available through M-USE in Austria and Sweden, but the new agreement will expand throughout most of Europe, the NYT reports.

HUGE INVESTMENT IN FLAT LCD TV PLANT

The LG.Phillips LCD Company, the world's second-largest maker of liquid-crystal display television sets, plans to spend a record 5.3 trillion won, or $US5.1 billion, to build the world's largest plant for flat-panel sets. The New York Times/Bloomberg report (2 Dec.) says the venture between LG Electronics of South Korea and Phillips Electronics of the Netherlands, plans to begin mass production at the plant in the first half of 2006, making panels for 42-inch and 47-inch LCD sets. LG Phillips and rivals like Samsung Electronics are investing in bigger plants to cut costs and lower prices to spur demand for LCD televisions, which can sell for as much as $5,500, with the market forecast to grow 21 per cent to $43 billion in 2005.

COMCAST MUSIC VIDEOS ON DEMAND OFFER

Comcast plans to begin offering music videos on demand to its 6.7 million US broadband internet subscribers early next year, as part of a multiyear deal wirth the television network Music Choice, reports SiliconValley.com (1 Dec.). SV.conm says Comcast's customers will have access to the cable company's new service at launch and, in addition to being able to choose from a selection of music videos, computer users will also be able to buy song downloads through a partnership with Napster 2.0 and browse dozens of music videos and audio channels.

INSIDER TRADING CHARGES NOW LAID

In the US Federal prosecutors have charged one of Network Associates (now McAfee) former controllers with securities fraud, the third executive implicated in the software company's past financial troubles, report SiliconValley.com (1 Dec). Evan Collins is accused of engaging in illegal insider trading and capitalising on information that other executives had been cooking the company's books in the fall of 2000.

NEW LAW LIMITS CITIES IN OFFERING NET ACCESS

In a victory for Verizon Communications in the US, a measure in a new Pennsylvania law will make it harder for cities to build high-speed internet municipal networks that compete wth major telecommunications providers. The New York Times re