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Friday, April 29, 2005

Children on the Internet

What is it with these studies that describe the dangers that the Internet poses? In Australia, one such study found that 25% "of all children surfing the internet have been contacted by a stranger. The report also found 38 per cent of parents said their child had experienced an issue of concern while using the internet at home. Of that figure, 16 per cent said their child had been exposed to pornography. Of the children surveyed, 23 per cent said they had been contacted or sent messages by people they did not know."

This is "fine" so far (however fine this can be). The last sentence of the article says that the most common way to approach children was via spam. Now I ask you: What happened to spam filters? Who could educate the children about the way to work or ignore spam if not the parents?

I mean - it is like: "Never Talk To Strangers" which can be translated to Never Open Mail from Strangers", right? Parents need to understand that the Internet has some pretty dangerous sides. What means that they shouldn't just put the children in front of a computer, but sit beside them to educate them about how to go about the Internet. What do you think?

(By Asia Business Consulting)

Malaysia's biotech adventure

The Malaysian Prime Minister announced that Malaysia is planning a forray into biotechnology. At the first glance, this is a worthwhile undertaking. To go into biotech is an emerging industry and thus, a clear sign that the country bets on the future. This is different from IT and ICT, for example, sectors and facilities, that are taken for granted around the world. I.e.; if you invest in a country, you expect to have high-class ICT facilities (nevermind that there are hiccups in Malaysia as well).

Biotech is pretty localised. A country benefits from local sources, if it can capitalise on the higher value activities, and builds up a related industry that, however, need jumpstarting with great names in the industry. It basically is tough to develop the industry on your own.

This is actually the second trial of Malaysia - the first was in 2001 with the Bio Valley project venture when officials hoping to attract US$10 billion in foreign and local investment in the biotechnology industry in 10 years - clearly an adventure that was too ambitious at that time - by now, only 3 companies have signed up to establish plants.

There are some challenges ahead for Malaysia anyway:

  • The country needs to have regulating governmental bodies;
  • The country needs a workforce that can cope with the challenges imposed by biotech;
  • The country needs a lot of highly educated employees.

Major challenges come from competing, neighbouring countries are far ahead of Malaysia and could attract the big boys of the industry. We have India, that aims to become a biotech center already - and has a great advantage with its input of highly educated IT people and the sheer number of fresh graduates that come out from the universities each year. We have Singapore that develops its Biopolis and is already a strong player in the pharmaceutical industry. "Singapore, for example, set aside US$2 billion to offer as incentive to attract leading research corporations and to invest in local and foreign biotech start-ups. To bolster its universities' research capabilities, Singapore is also offering competitive salaries to attract professors from top-ranking US institutions - something Malaysia is finding difficult to do." Additionally, Australia, Japan, South Korea and China have all introduced new legislation and provided funding to jump start their life-science industry.

Another challenge is the time that it takes to develop a successful biotech product: "A study of 51 biotech centers in the US by the Brookings Institution revealed that it often takes a decade or more to develop biotechnology-based products, and perhaps only one in 1,000 patented biotech innovations produces a successful commercial product. The study also showed that most biotechnology firms are quite small and typically contract with global pharmaceutical firms to produce, market, and distribute successful products rather than attempting to create their own capacity to do so.

The losses, too, have been tremendous. According to accounting firm Ernst and Young, publicly traded biotechnology companies in the US lost US$41 billion from 1990 to 2003. As the saying goes, the road to hell is paved with good intentions gone astray, and Malaysia's national biotechnology policy might be another headstone in a graveyard of investors' dreams." Can Malaysia afford this?

Next - there is the conflict between the timber barons and the biotech industry. While Malaysia has a great diversity in its rainforests - one of the world's oldest - the timber industry is an industry that also has an interest in exploiting its commercial interest (so I don't necessarilty agree with them). The challenge here is that ones a promising plant for biotech has been found, it could have disappeared because of loging activities.

And lastly - the discussion about genetically modified food, one component in the global biotech discussion, is also ongoing.

A lot more could be said. I believe it is good that the government of Malaysia takes a forward looking approach. But challenges are ahead and let's see, if the country can grow along the challenges.

(By Asia Business Consulting)

Newspapers on the defence

"Currently, more than 26 percent of online adults prefer the Internet for national and international news, compared with 19 percent in 2001." This equals growth of 35% in the last four years.

It is not clear from the article who is gaining the upper hand in the online news provision. May I doubt that companies that lock their content behind walls belong to the winners group.

Publishers of newpapers and magazines all across the world need to develop compelling online strategies - otherwise, their users simply run away - not all, but it surely is not their aim to become a niche provider.

(By Asia Business Consulting)

Thursday, April 28, 2005

Employers are checking your e-mail

Even so it is not creating the most productive environment more and more companies report that they monitor the e-mails of employees. "Almost 33 percent of 140 North American businesses nationwide report they conduct regular audits of outbound e-mail content."

As if employees wouldn't find ways to get around this. Still, what a mistrusting, unforgiving employer!

So even while about 20% of all incoming mail to corporations are of personal nature, we shouldn't forget that employees are often working longer and more than they are paid for.

I rather go for those Best Employers that clearly show a more caring and trusting attitude.

(By Asia Business Consulting)

IPod challengers

IPod clearly had the time of its life. Apple clearly owned the market and the great success that came with the IPod shot the company to the top again - it was the brand of the year in 2004. There were even shortages in the market due to the demand.

Companies pile into the market if there is great growth in one segment. It is the need or urger to capitalise on the growth. That was one of the reasons, why Samsung launched an IPod rival earlier.

Yesterday already in my article about the future of mobile phones, value added services by mobile phone companies were seen as the holy grail to reverse the declining Average Revenue Per User (ARPU). The BlackBerry is one of such tools, and music is another one that fills companies with hope. Samsung offers a 2.5-Gbit MCP for 3G Phones mobile phone that could hold songs as well.

Nokia now enters the market as well. The company unveiled its new line of music and photo phones the "Nseries," including the N91, the N90 and the N70. With the announcement of the N91, potentially competing with Apple's iPod.

Rhapsody, an online music store also raised the competitive bar. It starts to offer a tiered music service that allows non-subscribers to listen to 25 songs monthly for free. In addition, it will automatically arrange songs for paying customers and put download music files onto selected portable audio players.

Well, let the games begin.

(By Asia Business Consulting)

Wednesday, April 27, 2005

Protests in China nurtured through SMS, and emails

This is the new world. This is the world where the new generation of Internet users and texters uses technology to create smart mops. Smart mops that sometimes challenge the authorities or even overthrow governments, as happened in the Philippines.

The current protests in China against Japan are heavily organised via SMS, e-groups or emails. There is hardly any media news coverage.

"The underground noise grew so loud that last Friday the Chinese government moved to silence it by banning the use of text messages or e-mail to organize protests. It was part of a broader curb on the anti-Japanese movement but it also seemed the Communist Party had self-interest in mind."

An Asian diplomat is quoted as saying that "They are afraid the Chinese people will think, O.K., today we protest Japan; tomorrow, Japan. But the day after tomorrow, how about we protest against the government?"

This is a challenge for the country, where as China, which "as many as 50,000 people policing the Internet. Yet China is also now the largest cellphone market, with nearly 350 million users, while the number of Internet users is roughly 100 million and growing at 30 percent a year." The government balances precariously on a tight rope - suppressing the protests could also curb the continuous rise of the economy and threaten millions of dollars of foreign investment.

This is a tough choice and I believe the government is working heavily to make the right choices. But how can you contain a growing hot air balloon, so to speak?

(By Asia Business Consulting)

Future of mobile phones

This is actually a must-read article about potential future trends in the mobile phone industry - actually one of many that I currently feature. But it gives a great overview and links to the other articles in quite a nice manner.

The article at hand is based on findings made available by Ron Garriques, executive vice president of Motorola's personal communications sector. He says the following:

"The high-growth markets are India, Pakistan, the Middle East, Africa, Turkey and all of South Asia," he said. "These markets are dominated by Nokia, with over 60% market share. Nobody else has more than 10%." He indicates that the total global market size of the mobile industry is about US$100 billion that produces approximately 700 million mobile phones annually. A big challenge comes from Chinese mobile phone producers and the inherent trend in the industry to commoditize the products. "Motorola's competition with Nokia has heated up with Motorola's recent release of a US$40 phone. At that price, the phone is cheap enough to be sold competitively in poorer countries." "Affordability is especially important in China, which is flooded with phones. "There are about 200 manufacturers of cell phones in China that are state-owned enterprises," Garriques noted. "They believed that the market was a commodity business and created about 18 million cell phones that nobody ever bought. They are all being offered now for US$5 a piece. [These companies] called the market wrong. The technology curve changed -- from grayscale to full color, from candy-bar to clamshell -- and all those phones are just sitting there." And this is a huge number I believe.

The challenge for mobile phone operators is to increase the Average Revenue Per User or ARPU. It is clear that voice services becomes a commodity and that the industry intends to keep or increase ARPU with more value added services.

Garriques correctly doubts that phone-shared pictures and video will bring the kinds of gains companies want.

He put it this way: "I don't know about you, but the two worst fears I have when I go to someone's house are that they are going to show me their picture albums and home movies. Why would you think that, just because it's on a cell phone, people want to do it?"

Instead, he predicts that the email capability offered by, for example, a Blackberry will spread to more devices. "That's a real ARPU generator. Once you get a 'Crackberry' [so-nicknamed because of its addictive appeal], you use it over and over and over again."

I actually have to agree. Since I upgraded from a "normal mobile phone" to a PDA phone, I send more text messages or SMS, and I am more willing to access the Internet with it - thus, the recipe is easy, as usual: engage customer and make their life easier so that they can cope with more issues better.

(By Asia Business Consulting)

TV, SMS and advertising in China's Taxi

There are hundreds of thousands of taxis in China’s major cities – 42,000 in Shanghai and more than 66,000 in Beijing alone, with a total of 2m Chinese employed as taxi drivers despite government attempts to limit their numbers.

These are huge numbers and a huge market that attracts the attention of advertisers. Imagine you are stuck in a traffic jam and you have the ability to showcast the following range of programming:

  • Television commercials
  • Interactive content
  • Music videos
  • Movie trailers
  • Destination information

The most important point? According to the CEO of the organising company, Michael Fung of Capad (TV), its “biggest advantage is its interactivity, providing advertisers a means to engage with the audience. By tying Capad[TV] to SMS campaigns, it is possible to drive immediate point-of-sale transactions.”

Now this might be better than staring holes in the air in a traffic jam - or may be you prefer Karaoke?

(By Asia Business Consulting)

Residence of India's PM sold by fraudster

A lot can be sold in online auctions nowadays, and not all is according to the public taste. This one however, might be one of the items topping the joke box.

Some joker sold the residence of the Indian Prime Minister on probably eBay to an American business man for US$800,000. The ad described the residence as a "huge sprawling mansion in the heart of Lutyen's Delhi with 24x7 running water and electricity."

After paying the businessman received "the title deed for the house and arrived in the Indian capital late in March to take possession of the house for an office he planned to set up only to discover he had been cheated."

(By Asia Business Consulting)

Tuesday, April 26, 2005

Desensitized to Porn on the Internet?

I am actually a bit worried about the title since last time, when I wrote about Sex in China, I got a lot of hits from people looking for just like this. Well, this is not what this blog is all about.

Anyway - we have the first generation of Internet users and they are used to seeing porn. Sex is familiar feature for them - you can here it on the radio, see it in the Internet, get if via your mobile phone.

Every now and then, "adults" then complain that it is too much and that it is corrupting the youth. Does it?

It also doesn't make them ravenous for sex. "For all the sex in their sightlines, teenagers now have the lowest pregnancy, birth and abortion rates in decades. The vast majority of adolescents still are virgins at age 15, and the federal Centers for Disease Control and Prevention reported in 2002 that the size of that majority had increased since 1995. In a recent poll by Princeton Survey Research Associates commissioned by People magazine and NBC, 95 percent of 13- and 14-year-olds said they had not had intercourse, and 9 out of 10 said they disapproved of it for kids their age." (Which, of course, are pretty young kids when looking at it from the Asian perspective - I am aware of this!!).

It might be that the youth is just desensitized to sex and hardcore pornography.

"What we once called porn is just mainstream sex now, and what we now think of as pornography has shrunk to a tiny, tiny area. We've expanded the envelope of normative sex so much that there's not much room for ‘porn' anymore" is the comment from someone in the National Sexuality Resource Center.

Interviews with youth in the US reveals however, that the constant presence of sex in their environment influences the way they look at their own looks.

Related interview comments are :"You get the message that that kind of sex is glamorous, that you should be with these skinny blond types'' or ""You're supposed to have skinny thighs, big (breasts), flat stomachs,'' said Amy Liu, 14, brushing her long, dark hair behind one ear. "But then if you're fortunate to have that kind of body naturally, then they call you anorexic. ... You can't win.'' or "For one thing, it causes girls to think they need makeovers,'' said Kirstin Williams, a 15-year-old blonde in sweatpants and a hoodie. "Like, I know people who are considering plastic surgery.''

I wouldn't nevertheless say that porn is good for kids. It is just that a total restriction is just not possible. The effect of porn on kids has to be researched further, that is clear.

What do you think?

(By Asia Business Consulting)

Babies with handphones?

Is the mobile phone the future rattler? Well, that might be if all comes true what "leading entertainment executives" think. A mobile phone with mobile TV, that entertains the little ones with Sesame Street while on the road.

Can it be true? Look around you and you realise that more and more youngsters have a handphone. Disney and Warner Bros, and Anne Wood, creator of Teletubbies nurture deals already. Sesame Street reportedly has a deal with Verizon. "One New York market research firm says mobile television's current US$200 million business will grow to US$27 billion by the end of this decade with more than 250 million subscribers." Are these all babies, or do we find some adults amongst them?

Anyways, may be here is the one way that the industry found to finally nurture mobile TV.

(By Asia Business Consulting)

Is TV Making You Smarter?

Just last week, I wrote about this study that said that using e-mail and SMS would decrease your IQ. Now this week, there is this article in the New York Times, that argues on a different wavelength.

We all know the common discussion - television is full of violence and sex. The value of its contents declines and there is not much thinking involved - basically, we are just watching plain gore.

Not according to this article which follows the basic presumption that the story line, while may be more violent, is more complicated and challenge and enhance the thinking ability of the ones watching.

The author is not denying that the standard of television was falling but he states that "another kind of televised intelligence is on the rise. Think of the cognitive benefits conventionally ascribed to reading: attention, patience, retention, the parsing of narrative threads. Over the last half-century, programming on TV has increased the demands it places on precisely these mental faculties. This growing complexity involves three primary elements: multiple threading, flashing arrows and social networks." What means that basically, TV becomes more realistic. Good characters have bad habits and can fail, there is more than one bad character and a variety of shades exist.

The article doesn't come with facts and data to support its thesis, but provides plain anecdotal background. Nevertheless, an interesting point of view that has been taken here.

(By Asia Business Consulting)

Monday, April 25, 2005

Don't charge mobile phone at work

Ryan Air in Europe is one of the low cost carriers in the continent that is shaking up the establishment. Now, in a desperate first attempt to get even cheaper, they start nagging their employees. To save costs, those bad employees are no longer allowed to charge their handphones at work.

This has only been reported in the Mobile Magazine, but if this is a true case, it really is one of the cheapest stories around. Trusting your employees is way more profitable than tying them to rediculous and especially uncontrollable or un-implementable rules. What will they do if they catch an employee charging the handphone? Tell them they are fired?

(By Asia Business Consulting)

The importance of employee and customer satisfaction

A lot has been said in press and books that link employee satisfaction to customer satisfaction. It is a logical link, isn't it? An employee who is not engaged wouldn't necessarily engage a customer in a way that generates sales or revenues - that is why there was this Best Employers Study recently.

Optus of Australia, partially owned by Singapore Telecommunications is said to be in a peculiar or endangered situation. Apparently, their engagement level, as measured by Hewitt Associates has dropped from 48 per cent in November 2003, placed in the indifferent zone, to 40 per cent, at the edge of the serious zone.

Simultaneously, major customer accounts appear threatened. A study by McKinsey found that Optus is company at risk of losing $140 million (Not clear if this means US$ or AUD) in voice and data contracts.

This shows once again that it is very important, if not crucial, to dedicate sufficient time to employees. May be there is also a relation to the outsourced customer service?

(By Asia Business Consulting)

Saturday, April 23, 2005

Emails and texting more damaging than cannabis - oh really?

A new study has been published stating that when you use SMS and e-mails too often, it actually lowers your IQ by up to 10 points. This is the typically statement made every now and then, and well, while it sounds scary, it doesn't make too much sense. For me, it basically is a continuation of those statements that say that those who use their handphones too often are mobile phone addicted, those, that surf porn too much, are porn-addicted, and those that use the Internet excessively are Internet addicted. A long time back, I read that laying on the beach for two weeks in a row during holidays (basically a metaphor for doing nothing) would also lower your IQ.

SMS and e-mail, just like the Internet, are facts of the 21st century life. We are all pressured to do multitasking, be available all the times - speak 24/7 - find time during holidays to check e-mails and respond to SMS, or sit in meetings and draft a report outline that is due in another hour.

Sure it is a lot. But it is a matter of time-management and self- management. While some people have problems coping with distractions, the excessive usage of something, anything, is a symptom, not necessarily the cause. Oh - hey - I am addicted to blogging.

(By Asia Business Consulting)

Friday, April 22, 2005

Buckle up in English and computer knowledge and find a job

In Malaysia, fresh graduates are under pressure to buckle up in their computer and English in order to land a job. There are apparently 18,000 graduates who haven't found a job yet.
Both skills are important, nothing against this. Without English and computer knowledge, one is nothing on the job market today. Even so-called blue-collar workers need this to become competitive on the labour market.
This is the overall message.
The good news is that this is easy to comply with. If you have the cash. Mingle around with English speaking groups, read the English newspapers, listen to English radio or TV and, gasp, take a course. English language courses are the fastest growing business segment in China!
If you have the cash, get a computer, log on to the Internet and get over with it.
I believe that these are the easy roads into the world of working. What is more difficult is the marketing skills, or the attitude and mindset towards working. I don't know how good those are amongst graduates - but I believe that everybody started off fresh.

All in all, I wouldn't worry too much. Malaysia is growing fast and this means that all of those who want to enter the job market will find a job, sooner or later. This differs from European job markets where the economy is stagnant and huge structural shifts are commonplace. There, we have a social welfare system at the edge of collapse. And the challenge to change course after 100 years of such a system.

In Asia, economies are growing. The discussion, for me, only shows that the government is caring for even a small number of fresh graduates. So while the individual case is troublesome for the individual, I think it is solvable pretty quickly, if both sides work together.

(By Asia Business Consulting)

Registering prepaid phone SIM cards?

Customers will be required to show identification to purchase prepaid mobile phone SIM cards - this is what will be required in Thailand, but once it has been established, other countries might follow.

It is a move forward and comes from the experience of using mobile phones for terror attacks, or, in a milder manner, forward rumours in text messages.

(By Asia Business Consulting)

Thursday, April 21, 2005

Blogs Fall Prey to Trojans, Viruses

This is a warning by Websense that states that "blogs are increasingly being exploited as a means to distribute malicious code and keylogging software."

They are writing that "Cyber-criminals are now taking advantage of blog sites that allow users to easily publish their own web pages at no cost. Blogs can be attractive vehicles for hackers for several reasons - blogs offer large amounts of free storage, they do not require any identity authentication to post information, and most blog hosting facilities do not provide antivirus protection for posted files.

In some cases, the culprits create a blog on a legitimate host site, post viral code or keylogging software to the page, and attract traffic to the toxic blog by sending a link through spam email or instant messaging (IM) to a large number of recipients. In other cases, the blog can be used as a storage mechanism, which keeps malicious code that can be accessed by a Trojan horse that has already been hidden on the users computer."

I had cases when I blog-hopped via Blogger's tool and was warned by my system about an intrusion to install a Trojan Horse. It happens, clearly. But it wouldn't be too surprising when Websense will soon release a commercial tool that prevents intrusion, but makes their cash register ring.

(By Asia Business Consulting)

China - and it runs and runs and runs

China's economy is still unstoppable, despite all the talks about bubbles, accidents and labour crunches.

"China's economy, which accounted for a 10th of global growth last year, expanded more than expected in the first quarter as exports and investment surged.

Gross domestic product rose 9.5 percent from a year earlier to 3.14 trillion yuan ($379 billion), matching the fourth- quarter's gain, the National Bureau of Statistics said in a statement released in Beijing. That exceeded the median 9 percent gain forecast in a Bloomberg News survey of 11 economists. Fixed- asset investment rose 23 percent."

The interesting piece is that the State-Owned Enterprises (SOE) participate in the rapid growth - "China's central State-owned enterprises (SOEs) realized a 31.2 per cent profit growth year-on-year in the first quarter, based on steady growth of output and more effective control of costs."

This is a lot, especially when someone thinks about the so-called "Law of Big Numbers", which says that it becomes increasingly harder to add another 10%, when the baseline is big already. This basically means that it is easier to grow 10% from a 100 than 10% from a 1,000 - to provide an easy example. Any comments?

(By Asia Business Consulting)

Do we have Best Employers in Malaysia?

If you followed the news carefully, you will have realised that there are new rankings in the making. The Edge started the ball rolling on April 18, when they wrote that the "winners of a third “Best Employers in Malaysia” study would be announced yesterday with Deputy Prime Minister Datuk Seri Najib Razak to officiate the event. The award ceremony was shown yesterday evening in the Late News of TV3. The Star online published something, not much, here.

But if one checks the relevant webpage, it is possible to get to the list.

Hewitt Associates just published a list of the Best Employers in Malaysia. There will be a similar event for other participating countries, such as Thailand (also took place yesterday), Singapore , and China. The round closes with a regional award ceremony on April 25, 2005.

Here is the list for Malaysia:
1. The Ritz-Carlton, Kuala Lumpur
2. Dumex (Malaysia) Sdn. Bhd.
3. SP Setia Bhd.
4. The Ascott Group Limited
5. Brunsfield Group of Companies
6. American Express (Malaysia)
7. Komag USA (Malaysia) Sdn.
8. Federal Express Services (M) Sdn. Bhd. 9
. Microsoft (Malaysia) Sdn Bhd
10. Tenaga Nasional Berhad

What do you think of the list? There are great companies on the list – everybody knows what the Ritz-Carlton is doing for their employees and their guests. Just take a look at their thiking - Ladies and Gentlemen serving Ladies and Gentlemen, and you realise that a whole new world is opening.

Or, look at the dynamism of Amercan Express: Lee Siew Lee, their CEO for Malaysia and Brunei says in an interview that “You can’t simply make changes and just wait for things to improve. Trouble-shooting, decision-making and providing directions are not enough. She further comments that leaders must spend time communicating with staff in order to sell company ideas across the board. Lee attributes her success to her skill in rallying people, rather than harassing them to work harder. “You need followers to be a good leader.”

There is another list that has already been published, namely for Hong Kong:

1. The Ritz-Carlton, Hong Kong
2. J.W. Marriott Hotel Hong Kong
3. Urban Group
4. Marriott Asia Pacific Management Ltd
5. Federal Express Pacific Inc
6. Jones Lang LaSalle Management Services Ltd
7. UBS AG
8. Ricoh Hong Kong Limited
9. Noble Group Limited
10. Circle K Convenience Stores (HK) Ltd

Again, it shows market players such as FedEx and the Ritz that are able to succeed across the region. this shows, that it is possible to align your values across the region.

(Asia Business Consulting)

Monday, April 18, 2005

SMS and earthquake rumours in the Philippines

Have you received one of those SMS or e-mails that states that an earthquake will hit, either Manila, or, as I received a longer time back, Negeri Sembilan? Forget it - this is just one of those e-mails or SMS that try to create a hype around the current fear of earthquakes that people in the Asian region currently have.

A related SMS in the Philippines apparently caused panic in Manila, and of course, the House Committee on Public Information will look into it. Naturally, they want the relevant entities - here the National Telecommunications Commission and the telecommunication carriers - to look into it.

What do they propose? A strengthening of the relevant laws and regulations. As usual. Sure, people are scared of earhtquakes and pretty much on the edge to react to such e-mails or SMS. However, wouldn't it be better for the authorities to open the communications channel and inform people where to find information, whom to contact, and push this into the public consciousness? Contact your friends, check the Internet (especially blogs), call authorities that are in charge of information, switch on the television (what else?) - but don't just react to those mails or SMS.

(By Asia Business Consulting)

Friday, April 15, 2005

Video upload - Did Google do it already?

Just after I wrote about the possibility that Google might launch video blogging, they have launched a beta for Video uploads. In the usual quiet Google manner - with a big buzzzzzz.

Well, take a look for yourself.

Asia Business Consulting

India-China axis: what is the impact for the rest of the world?

Interesting article, following a recent theme in my blog as well. India and China, two powerhouses in Asia, are nearing each other. These are the strongest contesters in the race for global, well, not domination, but power.

The big Q is, what will happen, if the two countries un-do what is actually feasible? Undo their ties with the US? At least India could feel "betrayed" after the US started its closer relation with Pakistan after September 11?

What is happening when Asia, in general, doesn't park their capital in US Treasuries anymore?

What, if both countries keep growing and start to develop complimentary products, somewhat ignoring the rest of the world? Can do, since they have such huge potential consumer markets. What, if they start to integrate South East Asia into their economies. How is Japan, as the closest partner for the US fairing in this situation? They could get totally ignored in this, and the recent verbal conflict with China shows a new assertiveness of China. Japan is under pressure, because the country is so expensive, and sandwiched between those two countries offering cutting-edge technology at cheaper prices?

I am not even talking about Europe and the decline of that continent.

Will this be the theme of the New Asian Century? Chinese Premier Wen alread sees an 'Asian century' for IT industry!

What is your thinking around this?

(By Asia Business Consulting)

The real extend of China's control

I wrote a couple of times about the fact that the Chinese authorities filter Internet content and, in general, make it difficult ofr Internet users to get their voices heard.

Opensources published a report that shows the real extend. Let me quote:

"The OpenNet Initiative tested China's Internet filtering of web content, blog postings, and e-mail correspondences. Our testing found efforts to prevent access to a wide range of sensitive materials, from pornography to religious material to political dissent. Unlike the filtering systems in many other countries, China’s filtering regime appears to be carried out at various control points and also to be changing over time. China operates the most extensive, technologically sophisticated, and broad-reaching system of Internet filtering in the world. China’s intricate technical filtering regime is buttressed by an equally complex series of laws and regulations that control the access to and publication of material online. However, ONI found that most major American media sites, such as CNN, MSNBC, and ABC, are generally available in China (though the BBC remains blocked). Moreover, most sites we tested in our global list’s human rights and anonymizer categories are accessible as well."

Question: How much longer will this continue? I think that once you open the lid to the pot, water spills out and it will be tought to get the pot closed again. May be the current protests are a sign of change, of more to come? Or simply, of the power that is possible?

(By Asia Business Consulting)

Wednesday, April 13, 2005

How often do you change your mobile phone?

With prices for mobile phones dropping across the globe, voice becoming a commodity, and telecommunication companies encrossed in mobile wars - more and consumer learn how to profit from declining prices.

"75 per cent of the consumers surveyed in India said they upgrade their mobile phones more frequently than any other device.

In the US and France, this figure stands at 47% and 38% respectively. China on the other hand was found to have a similar scenario with India, with 75 per cent of the respondents saying they upgrade their mobile phones frequently."

But, what does this actually mean? Well, for one, I believe that since mobile phones become cheaper or more affordable (even higher value models), they also become more personal. So people see them as a commodity to change according to their own lifestyle. Secondly, mobile phones also get more and more functions that other tech stuff owned before. Like - a mobile phone that competes against an IPod. Or the challenge to watchmakers, since nearly all mobile phones have watches - who would need one then? Get it?


(By Asia Business Consulting)

Australia's R&D expenditure

I believe that the expediture to improve a country's and a company's products and services - short R&D - is crucial for the mentioned entities. It is the future, so to speak. Many countries across the globe start spending more on R%D, but others step a bit back.

A new report says that "Australia ranked among the top 10 OECD countries in 11 headline indicators. It performed well in having an educated workforce but business expenditure on R&D and patents was below average." "the nation went backwards in patents and investment and information and communication technology."

Okay - it also depends on what are you doing when you have developed great new products and services - either in break-through innovation or incremental improvements. Sometimes, it might be better to have a smaller but more focussed budget, so to speak. But in the end, it is execution, execution, execution.

(By Asia Business Consulting)

It still is China, Stupid

In June last year, I wrote the section on "It's China, Stupid". I now have to repeat the call. It still is China, and it will continue to be China. With India following behind. Despite the fact that the country is criticised for its human rights, and how it slams down on this and on that, every now and then. And also despite the fact that there might be a bubble. Because even when something is imploding, something else is left behind and new opportunities emerge.

"now become a large exporter of commodities like steel and chemicals, with steel exports nearly quintupling in the first two months of 2005 compared with a year ago. China is importing fewer cars and less heavy machinery as they are now made in China, and companies are making plans to export more cars and machinery.

China's imports and exports are believed to have grown 15 and 35 percent respectively in the first quarter of 2005 over the same period last year, says a report released on sunday by the State Information Center. The foreign trade surplus during the period was 13.5 billion US dollar, export volume reached 156.2 billion US dollar in the first quarter this year and import volume was 142. 76 billion US dollar.

Foreign trade has actually become the real "engine power" to China's economic growth. Government statistics show that from 1978 to 2004, China's share in world trade continuously rose. Last year, China became the world's third largest country in foreign trade, with exports accounting for over 30 percent of the country's GDP. The country's trade volume totaled 1.1 trillion US dollar. Exports increased by 35.4 percent to 593.4 billion US dollars, and imports grew by 36 percent to 561.4 billion dollars."

China becomes influential and it plays its muscle already - as you can see in the recent protests against Japan's aspiration for a seat on the UN security council. I honestly don't believe that they would let the protests continue for such a long time, if they wouldn't feel that powerful. I don't believe that the new laws on Taiwan, initiated last month or so, would have gone through, without the feeling of power.

And how do countries react, when they are scared? "The New York Times quote, "China's currency policies have angered Washington, where the Senate is considering a bill to impose a 27.5 percent tariff on Chinese exports unless Beijing revalues the renminbi." Revaluation of the Renminbi might be justified or not, but the pressure on other countries because of China is real.

(By Asia Business Consulting)

Tuesday, April 12, 2005

Why do you download music from "illegal websites"

Is the music industry finally getting the drift?

"Australians are driven to pirated music because just 65 per cent of the country's top music tracks are available from the three legitimate online music sites. Research by Alex Malik, of the University of Technology, Sydney, has found less than half the Australian Recording Industry Association's Top 20 singles chart was available from all of the nation's major legal download sites."

Isn't it true? People also don't always want to listen to the mainstream and look for music that is not available even in music stores. So are they expected to just give up their search or wait, until a new star discovers and revamps old music? No, they do it in a way we did it before the Internet. We went tho friends to get the song we wanted or asked around our circle of friends, if they have the song we lked. What happened then was that I, for example, got to know new bands, and new songs. Frequently, I ended up buying the record.

Isn't this the same case now, only with the Internet? It is clear that those terrible downloads don't hurt the industry and in fact, might spawn new business models. But like just about anything - it needs time and a lot of nerves to persuade incumbents that new business model might be a better way to be successful.

(By Asia Business Consulting)

Outsourcing - another report

I recently wrote about the Global Outsourcing Report and how the global environment for outsourcing will have changed by 2015.

Gartner now confirms the finding with the statement that it is very unlikely that India as the global market leader in outsourcing, or offshoring, will be toppled any time soon. "Its position at the top of the offshoring ladder is supported by English language skills; a well-established legal system; low labour costs; and a large pool of offshoring specialists with representation in client markets such as the US and Australia."

Nevertheless, competition is getting tougher, since they face their own usual problem - rising labour costs and lack of skilled employees. This provides other countries the chance to nibble away at the lower end of the market. Be also sure that more countries enter the market to get a share of a pie. The market is growing rapidly and global market size is expected to reach US$65 billion by 2007.

But I always wonder - countries see a chance in the "new normal". Now, finally, they have the chance to enter a market because the global landscape is just that : globalised. Through the advancements in ICT every country can play an active part in the economic development. It seems as if there are no limits to growth anymore for any country that enters the market for outsourcing.

My question is: What will happen if the market saturates? When the first fallout comes? Why do companies and countries have to follow what others do, over and over again? Any chance for leapfrogging?

(By Asia Business Consulting)

Monday, April 11, 2005

Korea's first success in busting spam

From the 1st of April onwards, spammers or direct mailers in Korea needed to have the opt-in from users. In other words, those, who said no to direct marketing were very hard to reach. It seems that originators of spam thought that this wouldn't apply to them. Wrong thinking!

"Police on Sunday busted 36 phone sex businesses that reaped profits of US$ 42.4 million by sending “060” spam voice and text messages to mobile phone users advertising their services. This is the first palpable result since an “opt-in” system became effective on April 1. Under the opt-in system, senders of 060 advertising must first seek the consent of recipients. companies."

It seems that spamming in Asia got more difficult over the last couple of months.

(By Asia Business Consulting)

9 years of prison for spammer

Spamming is bad - we all know this and spammers frequently make jokes of those who actually respond to their spam and on the route, earnt a lot of money.

But it must have been a judge who was inundated by spam as well, since the sentence seems to be quite draconian - A US judge has sentenced a man to nine years in prison for violating anti-spam laws by sending out millions of unsolicited e-mails using fake addresses.

The article also confirms this income level above: Prosecutors calculated that the spammer took in between US$500,000 and $US750,000 a month through the sale of products through the e-mails.

What always gets forgotten in this and what I keep asking: Who are those that actually open spam mails and then respond to them? I mean, look, besides the usual Viagra and Printer Cartridges advertised in the subject line, this subject line is full of mistakes - I wouldn't even call these mistakes. Who in the world thinks that this is a serious business offer or product?

(By Asia Business Consulting)

Protests in China

It is pretty much known that the Chinese protest against Japan's application for seat in UNSC.

The protest is growing and last Saturday, more than 10,000 anti-Japanese protesters hurled rocks, bottles and eggs and shouted abuse at the Japanese embassy and the residence of the Japanese ambassador.

This is the biggest demonstration since the 1999 crack down on Falungong and might also remind of the Tiananmen Square movement in the 1980s.

What is missing is the official coverage of the protests. There is none - no reports on television, newspapers or news websites - does this sound familiar to the news reporting about the death of the Pope? The only media that is reporting are ant-Japanese websites.

Why would the government blend these protests out? The reason could be economic, since the ties between the two countries improve, and, for example, Japan's economic recovery after a longtime decline is very much related to China's economic boom - with benefits on both sides. This could be one reason - are there others?

(By Asia Business Consulting)

Saturday, April 09, 2005

Labour shortages in China

Many companies see China as a vast pool of cheap labour ready to consume whatever is brought onto the market. But just like any other country, China faces problems in labour quality, which, in the end, drives up costs and balances the labour markets. Ony that for a country of over one billion people, it takes a bit longer to balance the scale.

The demand for labour is nevertheless astonishing. The New York Times writes that China "is experiencing shortages of about two million workers in Guangdong and Fujian, the two provinces at the heart of China's export-driven economy."

As mentioned before, this demand favours labour: "No one thinks China is running out of workers. But young migrant workers coveted by factories are gaining bargaining power and many are choosing to leave the low pay and often miserable conditions in Guangdong. In a nondemocratic China, it is the equivalent of "voting with their feet." The reaction of local authorities is swift. Shenzhen announced that it would raise its minimum to US$83 a month from US$74. Still not expensive, but a sign of change - a change, just like anywhere else.

(By Asia Business Consulting)



Microsoft Helps Stop Child Porn

Microsoft doesn't always have a great life in my blog - I often criticise their initiatives.

Nevertheless, I acknowledge their moves and know that they are coming back and back with their products until it works. I once called them an amazing company and they are one - how else could they stay atop the game in such competitive markets. Well, in many markets, they are NOT number one, contrary to beliefs, and they actually struggle in some.

Anyway, their new initiative is worth the praise.

"Microsoft has joined international law enforcement agencies today to unveil a software that allows police agencies worldwide to share information for tracking online child pornographers."

And apparantly, the system is quite successful, contrasting their usual initiatives and launches (I just had to say that!!): "The new tracking system has already resulted in the November 2004 arrest of one alleged Toronto child pornographer. He was identified and targeted during beta testing of the computerized database and investigation system."

Keep it moving, Microsoft!

(By Asia Business Consulting)

Friday, April 08, 2005

New PSP a runner

If you read news, and I sure you all do, you will find that the usual analyst or reporter say that the new Portable PSP launched by Sony is pretty lame with a lot of user inconvenience in it.

Again, this is what the analyst and the reporter say.

The users themselves are curious and they kick this judgement with their feet. "Sony Corp announced that it has sold more than 500,000 units of its PlayStation Portable (PSP) handheld video game system in the first two days after the products’ launch in the North American market." They are selling fast. They still can do so, because of course, Sony initiated legal steps against the recent judgement that would forbid them to sell their PSP in the US.

(By Asia Business Consulting)

Microsoft tries advertising with new messenger and spaces

"In a bid to increase advertising dollars from free Internet services, Microsoft has integrated hip advertising into their messenger and MSN spaces. Microsoft hopes to attract users who are so taken by the advertising campaigns that they choose to associate themselves with the brand much like a person might buy a Starbucks Corp. coffee mug."

This is what they are saying but to me it looks more like a desparate way to catch up with the latest game that Google and Yahoo are playing.

It looks good if you like to associate yourself with brands. When you are one of those guys and girls that feel hip when they are seen in this and hop when they hang around there - just as Charlene Li with Forrester Research states.

Does this make it right? Nope - to me, it looks like Microsoft is still trying to impose on users what the giant think is correct not, what the users actually want - conversations on the Internet, undisturbed by advertising.

(By Asia Business Consulting)

In Hong Kong Bloggers post hopes for change

There was a time, around the last century, when news travelled slowly. It needed to be transmitted via letters, newspapers, or, how revolutionary, telephones. So it took a while until news about protests leaked through to other countries or even regions.

Things started to change towards the end of that century and some dangerous tendencies cropped up in a new media called Internet - blogs.

Blogs become increasingly powerful - and now are used to post about from personal affairs to political incidences.

In Hong Kong, this let to the posting of videos about protests in respectie posts:

"Two years ago, when more than 500,000 people flooded the streets in Central to protest against controversial Article 23 anti-sedition legislation, Yan Sham-Shackleton stood on a pedestrian overpass documenting it with her video camera.

At 5am, she had started writing Internet essays about Hong Kong's struggle for democracy.

A few hours after she went to bed, ``I woke up and went to the protest,`` she says. ``I took a lot of video. And cried a bit.''

Quite a nice article, just in case you are interested. The question is: Will China look on only and simply tolerate?

(By Asia Business Consulting)

Thursday, April 07, 2005

Dow Jones says: Lock the content

It is a bit of an older news, but still interesting to bring it up again. Just when we had the discussion about AFP suing Google for putting copyrighted material on the web and AFP in turned being "flamed" by one of their customers for threatening their business model, well, Dow Jones, publisher of the Wall Street Journal comes and supports the move to lock up material.

Dow Jones is hoping that other online newspapers follow their move and says that "publishers in all mediums have tended to devalue their brands.

Wrong, wrong, wrong.

Isn't it a step back to an old business model? Those using the Internet want to participate in the discussion, and they don't want their news behind walls. The Walled Garden is dead. Aren't citizen journalists and blogs living proof that co-creation and participation with conversation is the way to go? Well, Dow Jones probably wants others to join their model, since they might have realised that otherwise, they won't become relevant again.

What do you think?

(By Asia Business Consulting)

Amazon and Print on Demand

Even Amazon is not able to store books endlessly, but what impresses me is the fact that they still consider the need of customers for even the most remotely available book.

Let's talk about print-on-demand. What does it say - well, if you need a book, but it is not available in any bookstore anywhere, you would normally give up.

Not with Amazon. Through their acquisition of printing fulfillment company BookSurge, users are now able to place an order for a book that will be printed on demand. ""Print-on-demand has changed the economics of small-quantity printing, making it possible for books with low and uncertain demand to be profitably produced," Greg Greeley, vice president of media products for Amazon.com, said in a written statement."

This is also a part of the Long Tail Phenomen, which allows to access material that is no longer found elsewhere. And as such, also part of the Internet revolution with all the great impacts that it has.

(By Asia Business Consulting)

Wednesday, April 06, 2005

Google plays with video submissions - off to video bloging?

Google is doing it again - a first.

Just after increasing their Gmail Inbox size to 2GB ++ (this means it is growing once it reaches 2GB), the company announced "that users would be able to archive their video clips in a few days."

"In the next few days, we're actually going to start taking video submissions from people, and we're not quite sure what we're going to get, but we decided we'd try this innovative experiment," Larry Page, a co-founder of Google said.

Page didn't provide any further details of the plan, but Google promises more information soon - are they soon into one of the fastest growing segments of blogging - video blogging?

Rock on, Google.

(By Asia Business Consulting)

Having fun online - vote for your favourite bachelor

This is part of an activity that Malaysia's Time dotCom's Internet service provider TIMENet, in conjunction with Cleo magazine initiates. Visitors to a webpage can vote for their favourite bachelor.

The website features each "contender's profile and an e-mail service that allows vistors to communicate with their favourite bachelors".

Will this create a buzz? Have you voted already? What happens if someone from outside Malaysia votes and falls in love with one of the guys? Do we get a Sepet and a lot of excitement and what is possible amongst people and what not? (sorry - readers from outside Malaysia might not understand, but Sepet is a Malaysian movie that highlights the issue of two people that fall in love, but are of different religions. It has caused a bit of a stir amongst local authorities - read a great review here)

(by Asia Business Consulting)

China blocks Internet comments on the pope

The rest of the world mourns the Pope. Leaders from all religions and countries send their condolences.

A large number of people visit the Vatican to pay the last respects to the Pope.

However, China is opposing the trend. "China's web portals have blocked prayers, blessings and other comment on the death of Pope John Paul II from being posted on the Internet.

"An official with Sohu.com confirmed the company had censored the comments, using sophisticated technology to allow only the writer to see his or her own comments." Which is - a very lame excuse!

(By Asia Business Consulting)

Tuesday, April 05, 2005

Education, reshaped

Online studies have clear advantages. For all sides involved - the students, the professors and the universities.

The universities, because they can reduce their fees, but reach an audience that might live on the other side of the world.

The professors, who are able to reach out and become known to a wider audience.

The students, who in general get a high quality education for a cheaper price. And those working adults, who are pressured for time, but would like to upgrade their skills to stay competitive in the new economy - they also have a chance to foster further knowledge.

All this of course only, if a couple of crucial factors play well together. The university must have a great reputation to attract high class professors and a sufficient number of applicants. The technology must fit - first class broadband connection - nobody wants to study online with dial-up connection.

Well, it was a dream, for long, to have such online study course available, but it took a while to get the technology in place. Now it might become reality - and the tipping point might soon be reached.

Australian figures show that "student enrolments increased by more than 25 per cent this year. Undergraduate numbers grew by 27.3 per cent this year. Postgraduate numbers were up 96.3 per cent.

By contrast, demand at traditional universities in Victoria fell by 4 per cent this year while the number of full-fee-paying students rose ( (by the way, traditional unis are the ones bound to lose) .

Time-poor adults aged 31 to 55 were also keen.

About 82 per cent of working adults don't have a university degree -- yet increasingly they realise they need one to succeed in today's economy."

(By Asia Business Consulting)

Imaginative, but illegal

A car dealer in Australia probably thought he has got a great idea to get his SMS messages to customers out when he harvested newspapers for mobile phone numbers. I guess he is not the only one who is looking for ways to get more mobile phone numbers. But this wasn't the best idea since Australian -spam laws forbid direct marketing with consent.

Just like what is introduced in Korea, direct marketer in Australia need to have the consent to send messages. But he can at least praise himself of being the first to be charged with this.

(By Asia Business Consulting)

China creates safer Internet

China's Internet is a frequent target for hacking and other malicious attacks. In 2004, the regulating body (National Computer Network Emergency Response Technical Team/Coordination Center (CNCERT)) received reports of 64,686 incident reports. Govermental webpages appear to be a favourite target.

What they are trying to do is to pass a new set of rules and regulations to gradually establish an Internet emergency control mechanism.

My question is: May be the attacks are just a sign of protests? May be protests from those who are exposed to the frequent curbs of the web and other online activities by the government?

In addition, may be the new set of rules really means a tighter control of Internet users, to avoid incidences where news about situations in China were picked up from international media via the web?

So, may be the attacks stop or are reduced once Internet users get a feeling that the web is safer and freer to use?

(By Asia Business Consulting)

Monday, April 04, 2005

Governmental webpages

Governmental webpages, from any country, can be seen as the window to the world. Anybody who is just curious, or wants to know more about a country for whatever reason, will find those pages. They are also useful for those citizens that live overseas. Additionally, governmental webpages are also a way to reach out to the constituency. A way to communicate with the population, or just to inform the population and provide information about your operations.

In this sense, they are also a tool to brand a country - it shows how a country sees itself, how efficient the country and its governmental servants are.

In this manner it is timely that Prime Minister Datuk Seri Abdullah Ahmad Badawi of Malaysia directed all government departments and agencies to update their websites and make them more interactive for relevance and to improve the quality of the public service sector.

The New Straits Times reported that this is not the first time, governmental departments have been asked to buckle up. "On June 26, 2003, when Abdullah was Deputy Prime Minister, he issued a similar directive to government departments and agencies." An improvement is also needed, considering the recent defacing of Malaysian webpages.

(By Asia Business Consuling)

VoIP - The fear of telcos

It is clear that Voice over the Internet (VoIP) is threatening the business model of telecommunications companies, due to its convenience and cheaper costs.

Currently, many of the Asian players live in denial - they just don't see it as a major disruptive threat. Now, telecommunication companies in the Philippines get a first taste of it.

"The National Telecommunications Commission recently came out with a draft policy that would allow even non-telco players to provide voice calls through the Internet for as low as 10 US cents per minute.

Major telco players are currently charging an average of 40 US cents per minute."

What cards are played out? The usual, as you can see when you read on:

"PLDT said VoIP providers would encroach on the operations of legitimate players, increasing the risks of non-telco companies bypassing the networks of telcos and allow foreign carriers to provide services in the country.

"The telecommunications industry may collapse because the [telcos'] stable source of revenue, like voice service for both domestic and international, and inbound and outbound calls, which are sources of subsidy to local exchange carriers, will be eaten up by the [VOIP providers]," said PLDT in its position paper."

It is better to live in denial - but when there is technology, there is a way. Market players might get regulation to prevent the entry of VoIP providers, but when there are programmes availble, such as Skype, they better get into the frame to adjust their business model. Otherwise, their customers adjust the model for them - and then, it might be too late!

(By Asia Business Consulting)

India to follow China in online crackdown

Benchmarking can be good. It gives you an idea of how other companies or countries are doing in handling challenges that you might face. Or are going to face. You might take over something from here and try to implement it into your organisation of course considering that this needs to be adjusted to your own setting, culture, values and so on.

Benchmarking can also be done wrongly, and that is what I believe is happening here. My point, over and over in this blog has been that it is impossible to put the genie of the Internet back into the bottle. There are good things in the Internet and bad things. Let the good things blossom, and manage the bad ones via education. Not via regulation because if you start to regulate, or police it, you will drive it underground or across the border, so to speak.

India's moral police is apparently following China to eradicate "the "ill-effects of sex and violence on the youth".

In the wake of dance bars being targeted the gaming fraternity also has suffered a big blow. The 'crackdown' on sex and violence has hit hard, as the moral police have confiscated gaming consoles and game CDs from retailers in the state. It is planning to clamp down on the kind of games that youngsters are buying and those they are playing in gaming cafes."

Be aware that this is a country that plans to play a dominant role in software development, outsourcing, and e-commerce (I know it is all related) and that has been called an example for the rest of the world. May be no longer?

(By Asia Business Consulting)

The passing of the Pope

My condolences on the death of the Pope to all Catholics. He surely was a great man, with great leadership skills.

He also moved the church into a more conservative direction, but it appears as if this didn't stop the Vatican to use modern technology to announce his death on Saturday.

Reuters writes that it took the Vatican just 15 minutes after his death to sent journalists an SMS message alerting them to a pending statement.

Television networks across the globe were already on standby a minute later when the email communique was beamed to a sea of state-of-the-art handheld computers, purchased by journalists at the suggestion of the Vatican. "TV spectators across the globe learned of the Pope's death even before the thousands of faithful gathered in prayer below the Pope's window in St. Peter's Square.

Archbishop Leonardo Sandri only informed them minutes later and their reaction -- a long round of applause, an Italian custom -- was captured on television in real time. "

(By Asia Business Consulting)

Friday, April 01, 2005

Google's plans

Its been a year - April 1, 2004 - that Google planted a little seed for further growth - it launched its e-mail service that only recently opened up to the public - before that, new users could get access only via invitation. And at that time, it launched it with a big bang - 1GB, and everybody stood in awe. This must be an April Fools Joke, was on many people's mind.

Today, just a few days after Yahoo finally caught up and notched up their own storage space to 1GB, Google hit it again.

They announced that they would increase the storage space to 2GB.

But there is another trick behind. After users reach their 2GB limit, Google will add a yet-to-be-determined amount of extra storage daily, with no plans to stop. This sure will create a buzz. It surely is better than just open up the space in total, at once. It will be fun for userss to see their usage space grow. It is a customised service for heavy users. Google clearly realises that many users use their service not only for e-mail, but that the storage is used to save pictures, big attachments and all.

Well, keep on rocking, Google! I think your user love it!

(By Asia Business Consulting)

China Telecom and its business strategy

We all know that the Internet in China is growing. Let's talk about one beneficiary of the growth, China Telecom.

"China Telecom, the Hong Kong-listed unit of the country's biggest fixed-line operator, said net profit doubled in 2004 thanks to the growth in its broadband Internet business, which is likely to remain an earnings driver as it cuts back investment in mobile services."

In their conference about the business growth They believe that broadband will remain the main business driver, and I agree. Broadband usage across the region and especially China is still small.

What I don't agree with is the suddent decision to move away from a core strategy, just because leaders get worried about future growth.

"They are saying that "given the maturing of the fixed-line market," the company plans to switch its strategy to an "integrated information services provider'' and has also recently discussed plans to offer pay-TV services.

First of all, everybody talks about integrated services nowadays, just like companies did talk about provision of solutions a couple of years back - and still talk about it. This is not necessarily a differentiator - it only is if you are good at it, and it takes some time to get great at it.

Secondly, I am not sure if pay-TV really is the way to go. They say that they want to enhance customer satisfaction by network quality enhancement, instead of geographic expansion. That is fine.

But may be they should also take a look to where the Internet is developing - since they are doing so well here already. Why not enhancing the user experience in the Internet space first before diversifying into Pay-TV?

(By Asia Business Consulting)

Google and Firefox

When the largest search engine teams up with the fastes growing Internet Browser, how will Microsoft or Yahoo react to this move?.

I don't know.

But I knew that cooperation between Google and Firefox increased when Google started to hire executives from Firefox. You just don't give up contacts, but you build on them. So now they are working together. Apparently, "Google has added a new feature to its search engine that allows Firefox users to obtain search results more quickly."

Reza Behforooz, a software engineer at Google says that "When you do a search on these browsers, we instruct them to download your top search result in advance, so if you click on it, you'll get to that page even more quickly." It is being criticised by people on the Mozillazine site, so. You'll run into trouble if the first match is a porno site and your company's proxy logs it--you get all cookies of the first match without seeing the page," one Firefox user said.

What do you think?

(By Asia Business Consulting)