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‘Web-n-Walk’ may help T-Mobile gain market share

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LONDON: T-Mobile UK, the British arm of Europe’s largest telecom operator Deutsche Telekom AG, threw a challenge at its fixed line rivals by announcing a mobile Internet service called “Web ‘n’ Walk”.

The new service, believed to be crucial for the company’s business in the UK, allows customers full Internet access for £9 a month. Customers will have 40 MB of data usage which equals around 2,500 emails or 500 web pages. They will be able to use the mobile in exactly the same way as they would a computer; such as making online purchases, browsing, etc. The service comes through a portal headed with the search engine Google.

The mobile operator’s managing director Brian McBride told journalists over a teleconference that the company aimed to displace fixed-line usage with their total Internet usage. He pointed out that Internet services on mobile devices had so far been slow, difficult to navigate and “bloody expensive”. But T-Mobile’s “Web ‘n’ Walk” would change all that.

The company despite losing market share had been busy planning high-speed broadband mobile data services to its customers by integrating its networks with upgraded technology. It has also planned a launch of the HSDPA next year, a technology which enables broadband Internet speed on 3G networks.

The company also announced five devices for the new service and promised three more by Christmas. These include the MDA Pro Smartphone handsets that make browsing the Net much easier than on conventional mobile phones. These handsets are designed for 3G and WiFi networks as well as the analogue spectrum.

McBride said he expected hundreds of thousands of people over the next two years to begin using the Internet through their mobile phones. The service had already been launched by its parent Deutsche in Germany. The UK launch will be marketed using a £10 million advertising campaign.

T-Mobile customers will have a choice of three tariffs that will include ‘Web ‘n’ Walk”: £30, £38 and £55 a month. Each would offer 40 Mb worth of data download but with differing voice minutes.

For most mobile operators, including Internet service as part of the services package is crucial for business in the current “overheated market” according to an analyst. It seems like the only way to increase data revenue.

Pupils to be barred from eating outside school

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LONDON: The government plans to snatch junk food, chocolates and crisps from 8 million school children. According to an announcement yesterday, the School Meals Advisory Panel is going to revise national school curriculum with the inclusion of cookery classes for boys and girls between 11 and 14. It will also ban junk food and sugary fizzy pop type drinks from school and canteen vending machines.

Under the enforced “healthy eating” plan, reconstituted meats will be replaced with at least two portions of fresh fruit and vegetables daily; oily fish will also become a regular 3-weekly feature; fried food will be limited to two dishes a week. And pupils will be barred from leaving the school gate; which means pupils have no choice but to eat what the school canteen provides.

The panel said it aimed to instill the concept of ‘healthy eating’ among pupils by phasing out all old unhealthy meal menus and eating habits. This may prove more difficult than is imagined. A separate study by the Foods Standards Agency showed that half of all students chose burgers and chips whereas barely 2 percent chose fruits.

Knowing that children are not going to welcome the food changes, the panel plans to implement the changes gradually – over the next two years for primary schools and until 2009 for secondary schools. By that time stringent nutrient-based standards will be in place at all schools across the UK. These will feature a total of 23 standards of which 14 will regulate the proportion of nutrients that children must get and the remaining nine will require children to get at least one portion of fruit and one of vegetables or salad every day. Pupils will have access to “unrestricted” quantities of bread and free, fresh, chilled drinking water.

Pupils would be made to understand what kind of food is good for them; they will also be taught practical cooking skills, especially how to prepare vegetables and other healthful dishes.

Education secretary Ruth Kelly supported the panel’s recommendations and said that even parents needed to be told what food is permitted in packed lunches. She also welcomed the suggestion that pupils be barred from leaving school grounds to buy fast food products.

The panel comprises teachers, public health organisations, caterers, unions, consumer groups and local authority representatives.

Until now pupils were required only to study food technology in design and technology classes. With the panel’s efforts a course in cooking is set to become a requisite of the new curriculum.

The panel pointed out that the government was expected to provide an additional Ł266 million to fund the programme for improving school meals. Ms Kelly had earlier allowed Ł220 million which would not be enough for the three year transition period to the new ‘healthy eating’ standards, the panel said.

New gambling laws under the scanner as ‘super casino’ deliberations begin

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LONDON – New laws to regulate gambling in the UK are all set to make it easier for gamblers to indulge in thier favorite activity even as charities and consumers’ organizations are voicing concerns that the new laws will give rise to a generation of ‘problem’ gamblers.

The government appears to have taken this point into consideration since a new regulator called the Gambling Commission will oversee all gambling activity to make sure that it is fair, safe and above all socially responsible. Culture Secretary Tessa Jowell assured consumers that the UK gambling industry will be heavily regulated and it would be near impossible to hoodwink people. The new commission will regulate online betting, a gray area in the UK scenario. It would also make sure that organized crime does not gain a backdoor entry into the society via gambling.

Meanwhile, a five-member Casino Advisory Panel is due to deliberate from Monday on the possible location of a Las Vegas style ‘super casino.’ The government had initially proposed to have 40 such casinos across the country, but under pressure from the Conservatives decided to scale down this number. Tessa Jowell will take advise from this panel to identify locations in England, Wales and Scotland for one “super casino” and 16 other smaller ones. Blackpool and Glasgow are being thought of as front-runners for the super casino, but nothing has been finalized yet.

However, concern has been running rife that the opening up of gambling in the country would not be a healthy sign, “Responsible providers of gambling want the cachet and the respectability that a license from the Gambling Commission will provide. And that will provide some assurance to those who go on those sites that the sites are properly run,” said Peter Dean, chairman of the Gambling Commission, defending the reforms.

Major Bill Cochrane, of the Salvation Army, said that the government should not hasten to introduce the super casinos all over the country, “The potential consequences do not offer an attractive proposition to any local community and that is why no more super casinos should even be considered until the impact of the first one has been measured,” he commented.

Consumer confidence hits the bottom, finds survey

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LONDON: Consumer confidence is at its lowest in a year, after a fall in September abetted by a bleak prospect for the economy, says a report by consultancy firm GfK Martin Humblin.

The firm, which maintains a confidence barometer, said the reading for September fell to -5 from -4 in August, the lowest reading since October 2004, when it was -6.

However, economists are not worried. In broad terms, they say, this is an indication of stability for the consumer’s sentiments. Even a decision by Bank of England to keep the interest rates at 4.5 per cent will not alter this situation, they feel.

The survey, however, indicated that when it came to major spending, people were not unduly worried. The index measuring whether it was a good time to make major buys rose to +9 from +8.

According to the firm, the decline in the main index was essentially on account of a fall in the sub-index measuring optimism over the future course of the economy — it fell to -16 from -13. The respondents to the survey were also concerned about their personal financial situation as the concerned sub-index fell to +10 from +12.

The findings are almost in line with those earlier this week of Confederation of British Industry, which said retail sales in September reached the lowest in 22 years.

The Office of National Statistics too had revised down annual GDP growth to just 1.5 per cent in the second quarter, the lowest level in 12 years.

Country’s top medical officer says Avian flu will kill 50,000 Britons

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LONDON – UK’s top medical officer has issued a stern warning that the bird flu pandemic could has the potential to ravage Britain and kill as many as 50,000 people.

Sir Liam Donaldson, the Chief Medical Officer for England said today that the impact of such a pandemic would be devastating, “It’s inevitable that when the flu pandemic comes, and we don’t know whether that will be next winter or even in five or 10 years’ time, that it will have a very serious impact on the health of our country. That’s a biological inevitability,” he said. He dodged questions as to whether Britain was ready to cope with a flu pandemic of such proportions and only said that the government’s contingency plans estimated that 50,000 lives would be lost in the UK.

The H5N1 strain of Avian flu has already started to claim lives in the Far East. Official estimates put the death toll at 60 over the last two years, but experts say that many deaths could have gone unreported as China has yet to open its doors for inspections by the WHO. The world’s premier health organization sought to quell fears of a worldwide death toll of 5 million to 150 million people that its infectious disease expert Dr David Nabarro has predicted.

The UK on its part has ordered 14.6 million doses of Tamiflu, a drug that can lessen the symptoms of avian flu and prevent its fatal course. According to the latest reports, 900,000 doses have been delivered so far. “Those won’t eliminate the problem but for people who get it, it should reduce the severity of their attack and it should prevent many people from dying,” Sir Liam confirmed.

WHO officials are worried that the H5N1 strain will eventually mutate thus spreading easily from birds to humans. They say that the only method to prevent a pandemic would be to detect the virus early and treat 20,000 people closest to the area where the outbreak occurs. The WHO has stockpiled three million doses of the anti-viral drug to combat such an outbreak.

BNFL is set to sell its nuclear decommissioning unit

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LONDON: British Nuclear Fuels Ltd (BNFL) is all set to sell its independent division that handles tasks relating to decommissioning of the country’s redundant nuclear power stations.

According to newspaper reports, BNFL’s board of directors has taken a firm decision to sell the business, called British Nuclear Group and which employs 15,000 people. The division ensures the safety of 12 nuclear power stations in the country and other six sites outside.

It is a politically sensitive issue. Prime minister Tony Blair had declared recently that he is open to building more nuclear power stations in order to meet the increasing energy needs of the country.

Analysts pointed out that as the government owns BNFL, the board can only communicate its recommendation to the government. A final decision is left with secretary of the department of trade and industry Alan Johnson.

BNFL later admitted it is reviewing its options for the unit. It had already publicised its plans to sell its U.S.-based nuclear power station-building unit Westinghouse. And once the British Nuclear Group sale too is accomplished, BNFL will be left with Nexion, a small research and technology business. The break-up of BNFL was made possible with the government deciding to set up the Nuclear Decommissioning Agency early this year.

The country’s labour unions have not taken lightly to the sale proposal. They said they cannot digest the prospect of a foreign-owned company handling the sensitive operations of the country’s nuclear installations.
Mike Graham, a Prospect union official, said the unions would be very concerned about the health and safety record and the environmental background of any potential bidder for the business.

BNFL too has clarified that any decision to sell the unit will have to be discussed with its constituents, mainly the trade unions.

Tesco swaps overseas assets with French retailer Carrefour

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LONDON: The UK-based stores chain Tesco today agreed with French international rival Carrefour to swap stores in countries where they have low market share.

Under the deal, Britain’s leading retailer will hand over six stores and two sites in Taiwan to Carrefour. It will also pay £39 million to the French group. The value of the exchange, including debt and equity, would total approximately £130 million.

For Tesco, parting with the Taiwan assets means effectively exiting from Taiwan where it lacked “critical size” and had been struggling to get a foothold, a spokesman said. The British retailer had similarly exited from France in 1997.

In exchange for the Tesco assets and the sum, Carrefour will part with its 11 outlets in the Czech Republic and four in Slovakia.

Both the retailers have an overseas presence with Carrefour ranked as the world’s second largest stores chain after US-based Wal-Mart. Lagging far behind, Tesco still makes 20 percent of its revenues from its stores in China, Malaysia, South Korea and Thailand.

With Carrefour’s Czech and Slovak stores, Tesco will be able to further strengthen its position in Eastern Europe. The store believes these regions to be highly competitive and offering good scope for growth.

Tesco is believed to have made “significant investment” in price cuts in its stores in these two countries during the last 12 months. It runs 25 stores in the Czech Republic and 30 in Slovakia and now plans a multi-format approach to widen the revenue scope. It will open hypermarkets, compact supermarkets and stores offering both food and non-food merchandise as part of the plan.

House prices hit nine-year low even as interest in property market surges

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LONDON – House prices continued their slide in September even though the number of people interested in the property market as well as the mortgage lending increased in the same month, according to the latest report from the Nationwide building society.

UK’s biggest building society’s monthly house price survey found that house prices in September fell by 0.2 percent as compared with those in August. These figures forced the annual rate of growth to its lowest level in more than nine years. The annual increase hit its lowest level since May 1986 and slid to just 1.8 percent. However there was good news for first time buyers since the house price rise is well below the concurrent increase in wage growth making houses more affordable to this segment.

Nationwide’s group economist, Fionnuala Earley commented that their monthly data since the start of this year has been pretty mixed, “with several months of small falls and rises, but looking at changes over three months shows the underlying trend more clearly. House price growth stalled in the three months to September, with no increase on the previous three months. Yet house prices are still higher than at this time last year.”

The average price of a house in the country was £156,517, a marginal increase as compared to £153,727 at the same time last year. Ms Earley pointed out that the relatively low level of inflation had served as a buffer and had kept the borrowing costs under control, “This may help to explain why we have seen a surprisingly swift return of buyers to the market,” she said.

These comments were substantiated by the data from the Bank of England, which showed that the number of mortgages approved in August for purchasing property was 107,000. This was almost 8,000 more than the previous month and easily beat the average of 94,000 in the last six months. “Estate agents have consistently reported increased buyer interest over the last few months, which should help to support the market going forward,” Ms Earley concluded.

Datamonitor acquires Verdict for 4.7 million pounds

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LONDON: British business information group Datamonitor Plc is set to acquire Richard Hyman’s retailing research group Verdict for 4.7 million pounds in cash. Verdict offers research and data on several retailing sectors from do-it-yourself stores to groceries and clothing. Founded by Hyman in 1984, it is today a leading commentator on the retail business in the U.K.

Datamonitor, which provides research into industry segments such as automotive, food, beverage and tobacco, consumer products, pharmaceuticals and health care, energy and utilities, technology, financial services and transport and logistics, has an international reach. It said the acquisition will increase its coverage of consumer goods.

Verdict, with expert commentaries by Hyman, is an authentic source of information on the U.K. retail scene. The venture began as a one-man show by Hyman and now has a staff strength of 35 and offers researched data on retail sub-sectors like clothing and footwear, DIY, home wares, grocery, furniture, health and beauty, and electrical goods. The company has no borrowings.

Hyman said his company was too small as an independent business and, as part of a largest group, it could expand internationally. He hoped the deal will offer his company an exciting opportunity for growth not only in the U.K. but at an international level.

The deal provides for Hyman to receive 70 per cent of the agreed amount upfront and the balance in a three-year earn-out. Before starting Verdict he was editorial director of market research business Mintel.

Spike in mortgage graph raises market hopes: BBA

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LONDON: The mortgage approvals curve has at last started rising as a sign that the sluggish housing market was being nudged into action by the rate cut, according to the British Bankers’ Association.

Data provided by the BBA confirm that the number of mortgage approvals – loans agreed but not yet made – went up in August: it was 8.5 percent higher (and 26 percent higher by value) compared to same month last year. On a monthly tracking, it rose from 65,611 in July ’05 to 69,499 in August, making the market reasonably optimistic of a turnaround. The BBA numbers mark the first annual increase for more than a year.

Many economists echoed the view that Britain could now easily avert a house price crash, although it may be hard to imagine the same levels as were seen during the boom last year. Conversely, it’s also difficult to expect a sharp correction in house prices, in the near future.

Most were certain that stability had at last returned to the housing market.

A parallel study by the Royal Institution of Chartered Surveyors also confirmed the belief that the 0.25 percent reduction in borrowing rate had slightly lifted the gloom over the market.

A few economists felt they could not share the sentiment and were worried whether the upturn could be sustained. They felt it was just a temporary reaction to the cut in interest rate and could not be sure it was the sign of a market recovery.

Meanwhile, the slowdown on high street continued with spending on credit cards remaining subdued throughout the last quarter.

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