Business Global Scene

Commercialisation of 3G places

Broadband mob- ile standards such as wideband code division multiple access (WCD- MA), high speed downlink packet access (HSDPA), and CDMA2000 1x EV DO are rapidly making inroads in the Asia Pacific wireless network market, with an increasing number of mobile operators adopting these standards.

Coexistence of these standards is placing mammoth demands on measurement accuracy and versatility of test and measurement equipment, spawning test systems that can support multiple standards.

New analysis from Frost Sullivan (www.testandmeasurement.frost.com), Asia Pacific Wireless Test Market, finds that the market earned revenues of ê370.4 million in 2006 and is expected to grow at a compound annual growth rate (CAGR) of 18.8 percent from 2006 to 2013.

“Promptly reacting to the demand for sophisticated test equipment from Network Service Providers and Mobile Equipment Manufacturers, wireless test equipment vendors have integrated a multitude of advanced testing techniques in a single wireless test unit enabling them to measure several parameters such as signaling conformance, interoperability with network elements, and physical layer performance. In addition to these integrations, vendors also have to focus on developing low-cost equipment,” remarks frost Sullivan Research Analyst Arun Kumar.

3G wireless services are being rolled out in Australia, New Zealand, Southeast Asia, and Taiwan. Japan, South Korea, Singapore, and Indonesia have moved beyond 3G and have begun the deployment of 3.5G/HSDPA services.

The upgrade to 3G and 3.5 G is expected to drive the overall demand for wireless test equipment.

With the commercialisation of 3G services, a steep decline in the prices of 3G/3.5 G mobile handsets is expected to happen by achieving “economies of scale.” Consequently, 3G Commercialization is expected to exert immense pressure on the test vendors to float low-cost mobile test equipment.

Test equipment manufacturers should focus on developing high-speed test environment and high performance test equipment to reduce the complexity associated with implementing new technologies and to handle the peak data rates introduced by HSDPA and HSUPA.

Since Mobile service providers have started offering voice, data, graphic, and voice-based information at a higher speed, along with Internet connectivity, market participants need to ensure that their test devices can handle higher and varied data traffic.

“In an era of converging 3G wireless and wired next-generation IP networks, ensuring quality of service (QoS) proves to be the foremost challenge for mobile service providers.

This convergence is further saddling the test equipment vendors with an onus to deliver sophisticated test equipment with added functionalities,” says Arun.

Asia Pacific Wireless Test Market is part of the Test Measurement Growth Partnership Service Programme.

Singapore, (BSW)

Philips sells down stake in South Korean LCD unit

Dutch electronics giant Philips has sold down its stake in a joint venture in South Korea to below 20 per cent as part of its move to adjust business portfolios, company officials said Thursday.

Philips Electronics sold a 13 per cent stake in LG Philips LCD, the world’s second largest maker of flat panel screens, to raise 2.2 billion dollars, the joint venture said.

“They divested the shares to international and local financial institutions in a block sale deal in the pre-opening session this morning,” an LG Philips LCD spokeswoman said.

Through the sale the Dutch company reduced its holding to 19.9 per cent from 32.9 per cent. Its Korean partner, LG Electronics, is the largest shareholder in LG Philips LCD, with 37.9 per cent.

Nomura Securities analyst Kim Hee-Yeon said Philips was able to sell the shares more swiftly than expected at a good price because LG Philips LCD posted surprisingly strong third-quarter results this week.

“It’s disappointing that Philips failed to find a strategic investor this time, but given its willingness to exit, the rest will likely go to a strategic partner,” she said.

Seoul, AFP

Infosys reports second-quarter profit rise

Infosys Technol- ogies, India’s second-largest software firm, said Thursday second-quarter profit rose 18.4 percent as it won new clients and increased fees to counter a surging rupee.

Profit rose to 11 billion rupees (280 million dollars) in the quarter ended September 30, from 9.3 billion rupees a year earlier, Bangalore-based Infosys said. Sales rose 19 percent to 41.06 billion rupees from 34.51 billion rupees.

“We have achieved yet another milestone by crossing one billion dollars in revenue this quarter,” said chief executive Kris Gopalakrishnan. “Our unique business model continues to help our clients grow profitably.”

Infosys shares fell 80.15 rupees, or 3.77 percent, to 2,044.4 rupees within minutes of trade opening Thursday as investors gave the thumbs-down to an earnings statement that met market expectations but lacked an upside surprise.

Infosys added 48 new clients during the quarter, increased billing rates 1.9 percent and hedged dollar exports against a rising rupee.

“Pricing remained stable with an upward bias,” said S.D. Shibulal, chief operating officer at Infosys. “Our continued focus on consulting and business solutions has augmented our capacity to serve clients in a competitive market place.”

The local currency has appreciated more than 10 percent this year and risen to beyond the psychologically important level.