E-gambling, Profits and the UK
Prior to today's budget announcement by Chancellor Gordon Brown, which included plans to drop betting duty in favor of a tax on companies' gross profits, Merrill Lynch predicted in a report that major profit increases would result from just such a move. The report suggests, for example, that Hilton Group plc's pre-tax profits, of which its Ladbrokes betting and gaming division contributes an estimated one-third, would see a 25 percent increase. They also suggest that Ladbrokes would gain 3.5 percent of the global online
sportsbetting business and 1 percent of the global Internet casino business. Using "conservative estimates", the researchers also say that Stanley Leisure would benefit from a 49 percent increase. The report additionally lists revised estimates of several U.K. betting firms' worth, upping their valuation of Ladbrokes' e-gaming division, from £600 million to £854 million, while Stanley Leisure's valuation was
given a 55 percent increase.
Security Foul Ups
Even though many companies with on online presence have put together a security policies, most executives have little idea when or how often the policies are changed. This knowledge gap could have
serious consequences given that Internet security breaches cause more than $15 billion damage worldwide, reports Datamonitor. Researchers surveyed executives from more than 250 companies in putting together their "eSecurity - what is security?" report. In the report, analysts found that even though 75 percent of the companies surveyed claim to have a clearly defined security policy, 70 percent of these executives were unable to tell when changes were made to these policies, causing analysts to believe that companies are not taking security issues seriously. "Just because a company has passwords to authenticate their users,
anti-virus software and firewalls does not necessarily mean that there is a security policy in place," commented one analyst. "It is likely that respondents that do not know when their policy is revised in fact do not have one in place. When businesses become aware of the risks that are inherent to e-business and have implemented advanced security systems to protect themselves, clearly defined policies will be a necessity."
Giving Privacy Issues Their Due
Since the inception of the Internet there have always been concerns about privacy, but the advent of wireless location-based services has added a new level of worry to the issue. "Anyone who thinks the privacy issue has peaked is greatly mistaken," said Jay Stanley, analyst at Forrester Research. "We are in the early stages of a sweeping change in attitudes that will fuel years of political battles and put once-routine business practices under the microscope."
A new report from Forrester finds that companies are facing mounting customer anxiety and a growing labyrinth of U.S. and foreign regulation. And to survive, the report adds, they must institutionalize their commitment to protect and manage their customers' privacy by taking a comprehensive, whole-view approach to privacy.
Among their suggestions:
- Companies must name a high level person--a chief privacy officer--who would be accountable on privacy issues, have a broad view on how the company operates, and have the clout to stop dangerous activities.
- Companies must then assemble an accurate and comprehensive picture of their existing information practices, by taking a top-to-bottom assessment that reaches across divisions and business partnerships.
- Following that step, a company-wide privacy policy must be developed and implemented.
3G Wireless Revenues Continue Growth
Research by The Strategis Group shows that global 2.5 and 3G network revenues will surpass revenues for second generation build-outs in 2003, reflecting the global shift toward next generation technologies. In their "Global Next Generation Wireless Technology and Infrastructure Forecasts" report, Strategis analysts say that WCDMA will be the global technology of choice, especially in Europe and Asia where the transition from 2G to 3G is beginning. Operators choosing WCDMA will do so, add researchers, based on
two key criteria: global roaming and easier migration to 4G.
Strategis analysts have also determined that the GSM platform, which includes GSM, GPRS, EDGE and WCDMA, will eventually make up more than 70 percent of all base stations globally by 2007, compared to 63 percent currently. As part of that 2007 estimate, say researchers, WCDMA will account for 30 percent of all base stations. Meanwhile, 1xRTT and 3xRTT/1xEV solutions will have the largest presence in North America and Latin America, accounting for 53 percent of the world's infrastructure rollout of these technologies.
"The key concern over the short term is whether infrastructure suppliers can match demand for the equipment," added Christine Stasikowski, a senior analyst. "Vendors will therefore need to have production and personnel strategies in place today in order to meet the equipment demands that we expect to see in a few years."