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Money Compass Write Up

Microsoft, Yahoo! In the new talk

     Microsoft Corp is once again trying team up with Yahoo! Inc to challenge internet search and advertising leader Google Inc, although at this point the renewed talks haven't escalated to another attempt to take over Yahoo!.
     The software maker disclosed the revived discussions on Sunday without providing any specifics about the nature of the deal being explored except to say it involved bolstering the companies' position in the online search and advertising markets.
     "There of course can be no assurance that any transaction will result from these discussions," the statement said.
In a statement late Sunday, Yahoo! said its board is exploring several "value maximizing" alternatives and "remain open to pursuing any transaction which is in the best interest of our stockholders."
     Microsoft emphasized that it hasn’t resurrected a US$47.5bil (RM157bil) takeover bid that its chief executive, Steve Ballmer, withdrew May 3 after Yahoo! CEO Jerry Yang – acting on behalf of Yahoo!’s board – demanded an additional US$5.5bil (18.2bil).
     But Microsoft left open the possibility that it might dangle another buyout offer of Yahoo!, depending on how the discussions progress between the two companies and their respective shareholders.

KL, the wireless online metropolitan

     Internet surfers will have to put up with the 512Kbps maximum speed of the KL Wireless Metropolitan Project now until most of the 3,500 designated hotspots are active.
     Packet One Networks Sdn Bhd (P1), one of the four WiMAX ­licensees charged with rolling out wireless broadband service in the country, expects the wait to be about two years.
     Currently, 200 hotspots have been activated and most of these are in the Kuala Lumpur City Centre (KLCC) area.
     P1 chief executive officer Michael Lai said another 1,300 hotpots in the city would be added by year-end, and the remainder by 2010.
     “There will be options to upgrade the speed in the future and in the meantime it’s a free service,” he told In.Tech early this week.
     Theoretically, WiMAX speeds can hit 70Mbps.
     Connectivity fees will only be charged from 2010, said Lai.
     512Kbps (kilobytes per second) is slow when compared to fixed-line broadband speeds offered by TM Net, which go as high as 4Mbps (megabits per second) now. But it is better than dial-up speeds which are typically 56Kbps — the service used by most Malaysians at this time.
     Another benefit of wireless broadband is that Internet surfers can roam the city and remain connected.
     Lai said P1 has also had to tweak its WiMAX 2.3GHz infrastructure so that it can be used by devices built for WiFi access. WiFi and WiMAX are different technologies that work the same way; with WiMAX having the greater range.
     “This has to be done because there are currently no WiMAX-enabled devices available for consumers,” he said. “These devices will likely start showing up in the market in the latter part of the year.”

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