Dramatic growth for GSM networks

Early indications hint that 1998 was yet another record breaking year for global GSM take-up, said the GSM Association, as year end totals are expected to show 135 million customers - exceeding early industry predictions by as much as 15 million.

A company release quotes Chairman Richard Midgett: "We believe that around 65 million customers signed up for GSM services in 1998, almost doubling the previous year's total, taking GSM to 45 percent of the world wireless market, or 62 percent of the global digital market"

"On the back of this, we predict with confidence that the 1999 year end total could soar as high as 250 million."

The GSM Association, which represents 323 GSM and GSM/Satellite operators, administrators and regulators from 129 countries around the world, pointed toward examples of soaring global markets as key reasons behind continued impressive growth rates.

GSM impact once again stretched far and wide in 1998. By the mid year point, China became the largest single GSM market in the world, maintaining its lead to reach more than 18 million level by close of the year.

In North America, where final customer totals are expected to reach more than 3 million for end 1998, there is commercial GSM service offered in 2,400 cities - 43 US States and four Canadian Provinces - and GSM is present in eight of the top 10 and in 20 of the top 25 licensed markets.

In the UK, France, Germany and Italy national markets climbed above 10 million customer levels in 1998

Mahaweli Marine gets new logo 

Mahaweli Marine Cement Co. Ltd. (MMCCL) has effected a worldwide logo change in a bid to standardise their logo and ensure immediate recognition. 

Designed after extensive research by the Corporate office of Marine Cement in Switzerland, the new logo is imaginative and modern in design. 

MMCCL which is a joint venture between Blue Circle of England and Lafarge of France, markets Marine cement which has been utilised for the construction of buildings including the Echelon Towers, the Victoria, Randenigala, Kotmale, Samanalawewa and Maduru Oya Dams, Jaic Hilton, etc. 

Colin Nelson, Marketing Manager MMCCL, said that this was part of the company's globalisation strategy to ensure instant recognition. Internationally the Marine logo denoted superior quality, reliability and durability, hence it was essential to capitalise on this fact and institute a standard logo wherever Marine cement was marketed, he said. 

Insurance conference 

The Chartered Insurance Institute of London and the Insurance Institute of India, have for the first time, jointly sponsored an International Conference on Insurance. This is scheduled to be held on February 22 and 23 at Hotel President Cuffe Parade, Mumbai and the participants would be from India as well as other countries.

President of the Insurance Institute of India, Shri R.N. Tripathy, has once again invited Prof. J. W. Wickramasinghe, Chairman of the Sri Lanka Insurance Corporation Ltd., to present a paper on "Economic Environment, Economic Policy and Life Insurance Business" during this conference. 

Prof. J.W. Wickramasinghe has been appointed Chairman of the Federation of State Insurance Organization of SAARC Countries, in appreciation of the initiative taken by him towards the formation of this body, with the objective of fostering regional cooperation in the field of Insurance. At present, he is also the Chairman of the Asian Reinsurance Corporation, Bangkok. 

This Conference will focus mainly on how micro-economic situations would affect the insurance market, modern marketing techniques, product development, pricing models, information technology and acturial aspects of General Insurance Business. 

Sathosa Motors Limited slashes prices by 40 percent.

Sathosa Motors have slashed spare part prices by 40%, marketing manager, Janaka Hathotuwegama, told the Sunday Times Business.

The price cut follows an agreement between Sathosa Motors' owner, Itochu Corporation and the Isuzu and Opal spare parts dealers. 

Since its takeover in 1992 by Itochu Corporation of Japan the company has been in the process of streamlining its operations, part of which has been the price cuts of over 500 spare parts.

The reduction will make the genuine (original) Isuzu and Opal parts extremely competitive with the duplicates.

Since the takeover, Sathosa Motors spare parts division has doubled in turnover and gross profit. The spare parts division's turnover accounts for over 25% of Sathosa Motors turnover.

Purchasing will be easier when the new spare parts shop opens at their head office in April.

ALMERIA, SPAIN - The   Cable and Wireless round the world balloon leaves the launch site in Almeria, Spain February 17. British pilots Colin Prescott and Andy Elson will attempt to fly around the world in under 21 days. REUTERS

INNOVATIONS Two in balloon circle earth - Travel Get your ice cream from the internet - In the    future Pluto retains its planetary status - The stars From colour of electricity to sense of touch - Invention Venture capital firms in space - Investment

Travel

Two in balloon circle earth 

The first all-British bid to circumnavigate the globe by balloon has got off to a "perfect" start. 

The two men waved to hundreds of local well wishers on the surrounding hilltops in the resort of Almeria as they lifted off into clear skies and dazzling sunshine.

By 1145 GMT the pair were 20 miles south-west of Almeria and being carried along at up to 45mph by winds at 16,000ft. 

Speaking from the London control centre, flight director Ian Ashpole said: "It is so far so good. Everything is working fine. 

"We are all very glad to be off. We have been planning for a year and on standby for months, so it is great to be up there. 

"They are in the air and everything is functioning, so yes, it seems to be the perfect start." 

Mr Elson, 45, from Wells in Somerset, and his co-pilot Mr Prescot, 48, from Stockbridge in Hampshire, were tracking along the Moroccan coast and should be halfway along the country by midnight, he added.

The balloonists face a longer journey than they had originally planned because China has refused to allow them to cross its air space. 

Beijing barred British-registered balloon attempts after Virgin tycoon Richard Branson's ICO-Global balloon strayed into restricted air space during his round the world attempt in December. 

It was China's refusal to allow Mr Elson and crewmates to cross the country which scuppered his last attempt to circle the globe on board the Swiss Breitling Orbiter balloon last year.

Mr Elson could face a head-to-head race with his former crewmates if weather allows Breitling to launch its latest bid at the weekend. 

"When we thought they were taking off last weekend we were genuinely excited because we thought it would be good to have both bids in the air at the same time," he added. 

The British balloonists will spend much of their journey flying low on much slower winds which they hope will take them far enough south to avoid China. 

They intend to head north-east, but the pair will begin by travelling in the opposite direction, towards the Canary Islands - again in order to avoid China. 

The 200-ft balloon has been adapted to carry three tons of extra fuel which the crew hope could keep them aloft for up to 30 days, giving them time to use the slower low altitude winds. 

Both men have been ballooning for more than 20 years.Mr Elson set the world record for the longest balloon flight on Breitling's attempt to circle the world last year. He and his crew stayed aloft for 10 days before having to abandon their flight when China refused to let them cross its airspace. 

Mr Prescot has his own balloon stunt company, which is currently organising manoeuvres above the Millennium Dome in London for a forthcoming James Bond movie.

Get your ice cream from the internet

Running low on ice cream? No problem. Just swipe the near-empty bucket across your freezer's bar-code reader and a fresh supply will be on its way. 

It sounds like the stuff of 1950s Popular Science features, but a British company on Wednesday unveiled what it is calling the first Internet-connected fridge. The ultimate information appliance can be used to order groceries over the Web, read e-mail, play games, or watch TV. 

Due on the market in early 2000, the Electrolux Screenfridge is a standard Electrolux Bluprint fridge with a 13-inch LCD touch-screen and bar-code scanner built into one of its doors. 

The device invites appliance owners to scan near-empty jars and milk cartons that are running low, and add them to a digital shopping list. The list would then be beamed over the Internet to a grocer selected by the consumer. 

Depending on the shopper's preferences, the groceries can then be delivered, or picked up. The list could also be held at the store with pointers to appropriate aisles for those who still want to experience real-life aisle surfing. 

Electrolux previewed the prototype of Screenfridge at the ICL Future Focus Centre in Reading. ICL, a software and services firm, will provide software and network support for the fridge. 

Roberts said that pricing had not been set and that the company in the next six months will launch a large-scale trial. 

"We're in discussions with a number of English grocers and retailers," Roberts said. "We haven't quite worked out the proposition of whether it's sold only in shops, in specialty shops, or as part of a customer loyalty package from a retailer." 

Although grocery shopping via the Internet is nothing new — companies like Peapod and NetGrocer have offered it for years — Roberts said that ICL is the first company with a serious plan to bring an Internet-connected home appliance to market. 

The device will be launched initially in the United Kingdom, although European retailers have also shown interest, Roberts said. ICL also has a prototype Internet fridge based on a standard US model. 

Initially the fridge will feature a standard modem, Roberts said, although future models may have built-in ethernet or wireless data capabilities. 

"We need to be realistic about what will be out there in 2000," he said. "It looks like phones, of course, but it could be mobile, wireless, cable TV networks, whatever. We're leaving it open."

Pluto retains its planetary status

Pluto slips outside the orbit of Neptune to resume its role as the farthest planet from the sun. 

This return to normal comes just days after the littlest planet survived an attack that threatened to strip it of its planetary status altogether. 

Normally the most distant planet, Pluto has an unusual orbit that takes 248 Earth-years to complete one trip around the sun. During just 20 of those years, it moves inside Neptune's orbit to become the eighth planet instead of the ninth. 

Pluto moved inside Neptune's orbit on February 7, 1979, and was on course to cross back outside at 5:08 a.m. EST, scientists at the National Aeronautics and Space Administration calculated. 

Pluto will remain the most distant planet for the next 228 years. 

Just last week, the Paris-based International Astronomical Union, the world's leading astronomical organization, reaffirmed Pluto's standing as the smallest planet. 

News reports had said Pluto might be demoted to a minor planet, or — worse — a trans-Neptunian object. 

"No proposal to change the status of Pluto as the ninth planet in the solar system has been made by any division, commission or working group of the IAU responsible for solar system science," said the 80-year-old organization, the final authority on astronomical matters. 

Even though Pluto was crossing Neptune's orbit, there was no worry about a collision, NASA said, because the planets were going to be far apart at the time. 

Pluto was discovered February 18, 1930, by Clyde Tombaugh at Lowell Observatory in Flagstaff, Arizona. Its moon, Charon, was found in 1979. Some scientists regard the pair as a "double planet." 

With a diameter of 1,430 miles, Pluto is less than half the size of any other planet and only two-thirds as big as Earth's moon. (AP)

From colour of electricity to sense of touch

An MIT graduate student who developed implants that may give artificial limbs the sense of touch was awarded the prestigious 1999 Lemelson-MIT prize for inventiveness on Thursday. 

Daniel DiLorenzo, also was recognized for his work on patented medical devices, including one that helps break the habit of bed-wetting and another that controls swelling in brain tissue during surgery. 

The US$30,000 Lemelson-MIT prize, open only to MIT graduating seniors and graduate students, was established in 1994 to recognise talented innovators. 

DiLorenzo, said he is ready to file for a patent on his device that he says may give a sense of touch to artificial limbs. 

Many of the sophisticated artificial limbs have sensors that sense muscle activity that tells the device what to do but they can't feel, and that seriously limits the use of the device," DiLorenzo said. 

DiLorenzo traced his inventiveness to tinkering with Erector sets as a boy. 

"My parents knew they were in trouble when at age 2 1/2 I asked what was the colour of electricity," said DiLorenzo. "They tried to keep me occupied by buying me an Erector set." 

DiLorenzo is headed to the University of Utah this summer to continue his work that combines engineering with the health sciences. He envisions restoring normal movement to patients with neurological damage or disease, including patients with spinal cord injury. Reuters 

Venture capital firms in space

SpaceVest, a Reston, Va.-based venture capital firm that focuses on the space industry, just announced its new fund, SpaceVest II, with $66 million in capital. 

Armed with new capital, SpaceVest quickly made the first investment of its new fund in MSI Software. This Fairfax, Virginia-based company develops health-care workforce scheduling software. Its software technology is derived from an architecture originally developed for spacecraft altitude monitoring and control systems. 

The new fund's investment strategy will continue to focus on space-age technology, which the firm defines very broadly. "More deals and larger deals in the same sectors," says John Higgin-botham, founder and chairman of SpaceVest. The company will focus on four sectors within its definition of the space industry: telecommunications, infrastructure, emerging applications (like remote sensing and global positioning systems) and support services. 

According to Higginbotham, "We favour telecommunications on the infrastructure side," with about one-third of the investments from its previous fund going to this area. The other favored area is telecommunication services. Basically, SpaceVest is interested in anything satellite-related. 

Limited partners or investors in SpaceVest II include State Teachers Retirement System of Ohio; Sofical, a subsidiary of Caisse de Dépôt et Placement du Québec; and PNC Bank, North America (PNC). The firm plans to add a few more investors to the fund and increase its size by the end of March. 

Higginbotham, last summer when speaking about his firm, SpaceVest, and its investments said that SpaceVest's first two portfolio companies would be going public by the end of 1998. Neither Constellation Communications, which uses satellites for local and long-distance telecommunication services to rural regions, nor Analytical Graphics, which develops operational software for satellites, went public last year. 

Analytical Graphics did file for an IPO, but chose to pull the offering. "Because of market volatility," says Higginbotham, "we elected to delay." 

So far, according to Higginbotham, SpaceVest has not exited, whether by IPO or acquisition, from any of its 11 prior investments in its first fund. This doesn't bother Higginbotham, since he maintains that at least one exit is imminent. 

He also doesn't feel that competition between venture capitalists is a problem in the space sector. 

CB co-sponsors euro seminar

A seminar on the practical aspects of dealing with the euro will be held on March 4, at Hotel Taj Samudra.

Organised by European Business Information Centre (EBIC), the European Chamber of Commerce of Sri Lanka, and the Delegation of the European Commission to Sri Lanka the seminar is sponsored by Commercial Bank of Ceylon and the Deutsche Bank.

The areas that are to be covered at this seminar are adaptations in sales strategy, pricing policy, production plan, accounting issues, legal matters and personnel management when dealing with euro. A perspective on "Two months into the euro" is also on the agenda.The Head of European Commission delegation to Sri Lanka, Ambassador Likka Uusitalo will lead the session.

Inquiries on reservations for the event could be made from EBIC Sri Lanka, Trans Asia Hotel, 115, Sir Chittampalam A. Gardiner Mw., Colombo 2, Tel: 074 715078, 074 715079, Fax: 448779.

NEXIA Accountants meet

The Asia Pacific Regional Conference of NEXIA International, one of the "middle ten" accounting networks in the world will be held from February 24 to 26 at the Trans Asia Hotel. 

Twenty delegates, including Director General of Nexia, Nigel Hodges, from the Secretariat in London, and Selwyn Mar, the Regional Chairman from Hongkong, will participate at this conference. 

Nexia accounting firms have a multi-deciplinary dimension providing services to the business community in corporate finance, audit, tax, information technology and many other areas of business activity. Nexia also regularly publishes books and newsletters on international taxation, financial accounting and corporate governance. 

The local member firm of NEXIA International is B.R.de. Silva and Co., Chartered Accountants, who are celebrating their 45th anniversary during this period. In this connection the company has organised a series of functions including an alumni get together at the Trans Asia Hotel on February 25 at 7.30 p.m. 

Management for excellence

Sunil Kumar, lecturer in leadership skills and personality development will conduct a full day workshop on "Management for Excellence" at the Hotel Ceylon Inter-Continental on February 24. 

Mr. Kumar has extensive experience in leadership training in Australia, New Zealand, Philippines, Fiji, Japan and Macau. 

The workshop is organized by the Behavioural Programmes Sub-Committee of the Management and Professional Development Committee of the Chartered Institute of Management Accountants, Sri Lanka Division. 

The workshop on "Management for Excellence" will focus on the changing global scenario and the new leadership skills that are required to achieve the mission statements of individuals and organizations. 

The workshop is ideally aimed at Chief Executives, Senior and Middle Managers involved in marketing finance and human resources in private and public sector organizations.

Horticulture study at Nuwara Eliya

More than 70 representatives from the plantation and private sector produce growers, Department of Agriculture research officers, and government officials participated in a recent study tour to the Bandarawela and Nuwara Eliya areas to see new horticultural production technology in action. 

Organised by the National Horticultural Association of Sri Lanka and supported by AgEnt, the participants witnessed different protected agriculture growing systems such as imported and locally fabricated polytunnels, hydroponics, cocopeat, grow bags, row covers, rolling benches, hybird seed varieties, drip irrigation, and sprinkler irrigation under commercial production, a news release says. 

Highlights of the tour included a look at high and low-tech growing systems for strawberries, bell peppers, lettuce, flowers and tomatoes. Participants were exposed to the ultra-modern vertical coir fibre grow bag system for strawberries at the new Kelani Valley Plantations greenhouse of 450 square metres imported from the United States. They also visited the AbsGro Ltd. iceberg lettuce growing operation in Nuwara Eliya. This company operates three imported polytunnels from the United States, one of which is equipped with the space-saving rolling bench growing system. 

CEAT and Kelani cut tyre prices

Associate CEAT and its strategic partner Kelani Tyres, the only automobile tyre manufacturers in Sri Lanka, have significantly reduced their retail prices for tyres manufactured for light and heavy commercial vehicles.

The price reductions which are in the range of 4% to 5% will result in savings of upto Rs. 378 on the prices of CEAT tyres, and savings of upto Rs. 155 on Kelani tyres, a joint announcement by these companies said.

Associated CEAT's General Manager Ashwin Padukone said the price reductions were made possible by increased production spurred by growing demand.

The chief beneficiaries of the price reductions would be users of commercial vehicles which are used extensively to transport agricultural produce and building materials, Mr. Padukone said.

The price reductions which came into effect in mid-January and early February would make CEAT and Kelani the most competitively priced among the reputed international brands in the market, Mr. Padukone said.

Leisureline joins Mast Industries

Leisureline (Pvt) Ltd., yet another investment from the Mast Industries Group of USA, commenced operations at Katunayake Export Processing Zone recently.

The factory, which will manufacture sophisticated knitted leisureware for export, was ceremonially inaugurated on February 5 by Martin Trust, Chairman, Mast Industries USA. Thilan Wijesinghe, Chirman, BOI was the guest of honour at the ceremony.

The new factory of Leisureline is the 30th joint venture project in Sri Lanka by the US textile company and will provide immediate employment for 250 workers. 

Investment in the state-of-the-art facility amounts to US $3 million (Rs. 205 million). The US Company has already made their mark in Sri Lanka's Textile/apparel industries, high quality apparel, buttons, elastics and garment accessories.

Their investments also include two ultra-modern textile plants and a clothing technology training institute.

Japan gives Rs. 1.6m to Badulla General Hospital

Japan has granted Rs. 1.6 million to improve Badulla General Hospital. 

The grant is to provide anaesthetic ventilator, defibrillator and bedside monitor to this hospital. Badulla General Hospital is the biggest hospital in the region, providing tertiary medical services in the area of Uva Province, a news release says.

It is also playing a role as a district centre for the cancer release movement, collaborating with the cancer hospital in Maharagama, as well as contributing to the district's health sector through circulating of medical staffs in the rural area. 

The Embassy of Japan believes that the medical equipment to be given under this grant will be utilized as effectively as possible.

The government of Japan has implemented 68 GGPs totalling US $1.8 million (Rs. 125 million) in Sri Lanka todate. 

Eagle's profits grow by 18%

On its 10th anniversary, CTC Eagle Insurance Company has recorded a 22% increase in premium income, and profit after tax by 18%. 

The company declared a dividend of 25%, an increase of 19% over the previous year, a company release said. 

Chandra Jayaratne has stated in the release that the general insurance premium income growth of 22% is a creditable achievement in this highly competitive environment, made possible only through a total dedication to customers - a core value of the company. 

During the year a longstanding issue relating to the failure of an insurance broker to pay CTCE the premiums collected from clients was resolved to the satisfaction of the Company. 

The company paid a life policyholders dividend of 10% which the company spokesman says is the best return in the industry and which once again was in excess of the returns promised. 

'Saving water' lessons from Unilever to students

Unilever Ceylon had developed and launched a unique educational calendar for primary schools in Sri Lanka. 45,000 full colour, 6 poster size pages, educational calendars printed in Sinhala, Tamil and English have been distributed to 11,000 primary schools in Sri Lanka, free of charge. 

Mike Thompson, Chairman Unilever Ceylon, when officially presenting the calendar to the Minister of Education and Higher Education said, "This initiative contributes to the fulfillment of our responsibilities to the environment and to the community in which we operate. We hope it will serve its purpose well in providing primary school children, and their teachers, with a greater appreciation of the value of good clean water." 

The Minister said he approved this "highly imaginative initiative" and thanked Unilever for both their generosity and thoughtfulness. 

This is the very first educational "water" calendar of this nature. The objective is to help educate children on the importance of conserving water and to develop an awareness amongst them of the value of water and the need to avoid waste and pollution of this valuable asset. 

Bindu's Water World calendar was born late in 1998 and launched in January 1999 with the theme "Water as a Source of Life". In year 2000, a similar calendar is envisaged with the theme "Water, Health and Hygiene". 

Return to the Bussiness Contents