China Watch Blog

China Watch Blog has learnt that a disturbing new type of telecom blackmail has appeared in Shanghai, one that seems to operate through enforcement loopholes of telephone companies and police.

Criminals are using telephone software to make very frequent phone calls to a victim’s cellphone, and threatening to keep it up until they are paid off, the Shanghai Daily reported.

In a recent case, a salesman surnamed Zhang said he received more than 2,000 calls, with a call every one to two minutes over two days, and as soon as he picked up, the call ended, the Shanghai Morning Post reported.

According to a message sent to Zhang, the harassment would stop only if he transferred 500 yuan to a designated bank account.

Zhang called police, but was told the amount of money was too small to file the case, and it is hard to collect evidence as the suspects usually use software and a server outside the city or country to make the calls.

Zhang’s phone service said it could act against only those calling or sending messages using their service.

The harassment started on Friday last week when a call that appeared as “private number” showed up on Zhang’s phone.

“I tried to call back, but the other side hung up right after the call was put through,” Zhang said.

In just 10 minutes, Zhang got 16 such calls. Zhang did not pay the 500 yuan and he received more than 2,000 calls that weekend.

Zhang dared not turn off his phone for fear of missing important calls.

“I think they found my number on the Internet,” Zhang said. “I’m so frustrated. I don’t want to change my number and I’m afraid they are just going to ask for more if I pay.”

“The suspects are very crafty as they asked for only a couple of hundred yuan just to avoid criminal charges,” a police officer said.

The phone company suggested Zhang set up his phone to allow only calls from contacts in his phone, which Zhang said wasn’t a good answer, either.

During the May Day holiday, Zhang turned off his phone and received no more of the calls when he turned it on again. He’s hoping they don’t come back.

China Watch Blog has learnt that China will pass the United States to become the world’s top country for active Android and iOS smartphones and tablets by the end of February.

According to US IT research firm Flurry, in a study that tracked more than 90 percent of the world’s smart devices, Flurry found that China added a staggering 150 million new devices from January 2012 to the same period this year, while the US just added 55 million units.

China Daily reported that China and the US had roughly the same active smart devices installed base in January 2013, 221 million in China versus 222 million in the US. But Flurry estimated that by the end of February, China will have 246 million devices compared to 230 million in the US.

The consultancy said it believes the US will not take back the lead, given the vast difference in population between the two countries. The only other country that might overtake China is India, but the country still has a long way to go, considering that it only has 19 million active devices now.

The study also showed that the US and China each have more than five times the active installed devices base than that of the United Kingdom, the world’s third-largest market. South Korea and Japan ranked fourth and fifth, with 30 million and 29 million smart devices nationwide, respectively.

China Watch Blog reports that iOS 6.1 hasn’t been Apple’s finest hour.

According to Shelly Palmer, so far it’s been plagued with connection issues, battery woes, and now it’s sadly insecure, too. You can bypass any lockcode on an iPhone using this straightforward sequence of button presses. The instructions are pretty simple.

First you have to pretend to turn the phone off, then make an aborted emergency call, then a quick bit of off button and cancel pressing. That boots you into the full phone app where you can pretty much call or message anyone you like, or edit phone contacts.

It’s not the first time a trick like this has plagued an Apple device; a similar iOS 4.1 bug allowed the same kind of access. It was fixed with the release of iOS 4.2—which came out a month later. So if history holds true, it could be a month until we see this patched up.

China Watch Blog has learnt that the Bane of Yoto by Joshua Viola is a transmedia experience that has it all! This four-time award-winning epic novel is now available as a comic App to millions of subscribers for the Nvidia Tegra platform for Android. Published by film, video game and TV music publisher and label FiXT, it features music by FiXT owner and cyber-rock artist Klayton of Celldweller.

A perfect blend of science fiction and fantasy, The Bane of Yoto’s action-packed plot keeps the adrenaline flowing at warp speed to the very end with dynamic, fully-developed original characters battling for their very existence in a brutal world.

Viola, art director for Leviathan Games and former professor of Game Art and Design, was “never impressed with comic apps I had installed.” Adding, “In my opinion, they didn’t work. So I wanted to approach that world in a different, revolutionary way.” And this visionary did just that with Dreamotion™ – Viola’s name for the process of taking numerous layers of traditionally generated 2D illustrations and artwork and bringing them to life in a fully-responsive 3D world.

“Dreamotion was our answer to that problem,” says Viola. “It’s all responsive to movement; when the user rotates their device, the world comes to life. The characters on screen animate and move as you are looking through every little detail in 3D — and all without glasses.”

“The Tegra audience consists of more hardcore consumers than most other markets,” says Viola. “They’re looking for something with depth that they can really get into. I think my comic App will allow them to do just that.”

While DC and Marvel comic book artists Tyler Kirkham, Nick Runge, and Steve Scott are responsible for some of the stunning visuals, the music was provided by Klayton of Celldweller, whose work has been featured in such films as “Iron Man 2,” “Spiderman 2,” “Ghost Rider 2,” “Mission Impossible: Ghost Protocol” and more. Also available through FiXT is The Bane of Yoto merchandise, with PlayStation 3 Dynamic Themes, Sculptures, T-shirts, posters, and more.

Drawing rave reviews for both originality and vision, The Bane of Yoto has won awards from the 2012 New York Book Festival, the 2012 Hollywood Book Festival, and was winner in the Science Fiction category at the 2012 Halloween Book Festival. This is the first installment in a trilogy of science-fantasy novels by Viola. For more information on this extraordinary novel and 3D comic App, please see: www.baneofyoto.com and www.facebook.com/baneofyoto.

China Watch Blog reports Apple’s revenue may have missed expectations as sales of the iPhone reportedly disappointed. However, data from leading independent digital marketing agency, Greenlight, shows no slump in the number of online searches pertaining to iPhones, in the lead up to Christmas.

In fact, search volumes for the term ‘iPhone 5’ saw a dramatic 594% jump. However, the opposite was true for the term ‘Blackberry’. Just last week, its inventor, Research in Motion (RIM), showed off two new smartphones for its newly built BlackBerry 10 operating system.

According to Greenlight’s ‘Brown Goods Sector Report – Issue 14’, in November 2012, a total of 12 million searches were made on Google UK for Audio & Accessories, Cameras & Camcorders, PCs, Laptops and Tablets, Phones & Accessories and TVs & DVD Players, up 5 million on August 2012 levels.

Phones & Accessories-related search terms proved most popular. They accounted for 53% of all Brown Goods-related queries compared to 32% in August, when searches pertaining to PC’s, Laptops and Tablets dominated (48%).

‘iPhone 5’ search volumes see a six-fold rise

According to Greenlight, the term ‘iPhone 5’ was queried more than 4 million times, accounting for 34% of all Brown Goods-related searches in November, up from August’s 673,000.

In the case of ‘Blackberry’ however, the opposite was true. Greenlight’s data shows search volumes for the term totalled 246,000 compared to 301,000 in August.

Apple knocks Amazon UK off top spot to become the most visible site for Brown Goods

Greenlight also assessed which brands, retailers and review sites were the most visible in both Natural Search* and Paid Media** results and therefore had the greatest share of consideration when UK consumers searched on Google UK for Brown Goods in November.

Greenlight’s Integrated Search league table shows that Apple, which in August lay in fifth place, snatched Amazon UK’s lead to become the most visible website overall. In November, it achieved a dominant share of visibility across both the Natural Search and Paid Media listings – 60% and 72%, respectively.

Whilst Amazon UK was relegated to fourth place, it was one of just three sites that managed to hold on to a spot in Greenlight’s top ten, from August.

China Watch Blog reports that many people are unaware that cyber criminals target mobile devices – or think that putting a four-digit PIN code on their phone is sufficient protection.

But yahoo reports that cybercrime on mobiles is already real. In the UK, 22% of users report that they have received text messages requesting that they click a link or dial a number to access a ‘voicemail’ message – a common attack used by cybercriminals

App stores such as Google’s Play are also filled with ‘fake’ apps – often made to look like real hits such as Angry Birds – which can infest phones with adverts or even run up huge bills calling numbers abroad.

Mobile adware – or ‘madware’ – attacks have risen 210% in the past year, according to figures from Norton.

‘Your smartphone is as sophisticated if not more than your PC,’ says Norton’s director of security response, Kevin Haley. ‘It has all the same information, it’s got your work information and your personal information. It even has financial transactions on it. Why wouldn’t the bad guys target it?’

Safe use of smartphones will come into focus once more on Tuesday, February 5 (that is today), which is the tenth Safer Internet Day.

China Watch Blog’s attention was captured by Monica Foster of the Ascot Media Group, when she wrote the following. Just like in the Old West where hired gunfighters were brought in for specialized “situations,” large publicly-traded enterprises have seen the need to do the same for their complex telecom and technology contracts.

Large global enterprises look to Dave Roberts, CEO of Teligistics, as their “hired gun” for multi-million dollar telecom deals. A tough negotiator with a Texas flair, Roberts is a widely known expert in this field with a U.S. patent to his credit and another patent pending. He is also a serial entrepreneur, public speaker and published author.

Teligistics announced it has surpassed the $7 billion mark in total contract value procured on behalf of client companies since its founding in 1997. Referring to this significant milestone, Dave Roberts, CEO and founder of Teligistics, says “We are undoubtedly the leading source for large enterprise procurement of complex global voice, data and technology related contracts. We continue to win for our clients ‘Best in Class’ contracts because we have the technology, subject domain expertise, experience and the market data necessary to deliver outstanding results.”

Teligistics launched the proprietary and ground-breaking online eProcurement tool branded as Telibid™ in 2011. This web-based sourcing tool allows enterprises to publish an RFP (request for pricing/proposal) online via customizable telecom templates for all categories of telecom services (wireless/mobility, local, long distance, audio/web conferencing, MPLS, Managed Services, Internet access and more). Telibid includes an optional state-of-the-art reverse auction format.

Roberts continues “Telibid is the next generation of sourcing tools for enterprise-level telecom users. The design was based on the subject matter expertise we have assembled from sourcing thousands of large and complex global telecom contracts. Our methodology for analyzing telecom provider rate plans, for which we received a U.S. Patent in 2005, is the basis for the financial analysis reports that are created from the RFP bidder responses. Teligistics clearly continues to be the market leader for this type of in-depth analysis.”

Roberts adds, “Despite the fact that the cost of technology and communications services generally go down over time, most large organizations are faced with ballooning telecom budgets but can’t figure out why. This is generally due to the fact that the average telecom cost per employees is exploding with the primary culprit being wireless mobility. The rate of telecom consumption is outpacing the natural downward trend of technology in the marketplace. The rate of increase in telecom costs per employee is only second to employee healthcare.”

Founded in 1997, Teligistics is a closely-held private Texas corporation and the leading provider of enterprise-level telecom cost control solution tools in the United States. Sourcing of large telecom contracts continues to be a core-competency of the firm, serving many Fortune® 1000 clients. Teligistics also provides client solutions in TEM (Telecom Expense Management) through its proprietary TEAM™ (telecom expense & asset management) platform for auditing, allocating and processing of telecom invoices for client companies. eMobilegistics™ manages thousands of mobile/wireless devices for client companies.

China Watch Blog reports that Hutchison’s comments to the Commission’s Statement of Objections on Sept 21.

“Instead of opposing the merger of the two smallest operators in Austria, the Commission should allow it to proceed and facilitate the entry of new, competitive MVNO players in the Austrian market”. Canning Fok, Group Managing Director, Hutchison Whampoa Limited

As anticipated last week, the Commission has now issued a Statement of Objections with respect to H3G’s acquisition of Orange Austria. We are analysing the Statement and will be responding to the Commission’s objections.

In our view, the approach taken by the Commission in this case is wrong and fails to sufficiently reflect the market realities in Austria.

The Commission’s assumption that a reduction in the number of operators in Austria from 4 to 3 will materially reduce competition is ill-founded. H3G has every incentive to continue to compete aggressively as the unquestioned challenger in the market, as it has since launching its business in Austria and elsewhere in Europe.

While we understand that the Commission may have serious concerns about the reduction from 4 to 3 operators in much larger markets such as Germany, Spain or the UK, it is wrong to apply this logic in a much smaller market such as Austria. With a population of 8 million people, scale and satisfactory returns on network investments are difficult to achieve, particularly for a new entrant challenger such as H3G.

It is also unprecedented to engage in a Phase 2 extensive scrutiny of a merger involving the two smallest operators in a market with a combined market share of only 22%.

Post-merger, we are aiming to achieve a market share of 30% by 2015. The merger will give H3G the means and scale it needs to compete against the two dominant incumbent operators who hold a combined 78% of the market.

It has taken H3G more than 10 years to reach a market share of 10%. Absent the merger, our 30% market share target will be a distant goal. With the merger, we can accelerate our business plan with early LTE roll-out, the offer of new products and technology and aggressive pricing.

The merger will therefore benefit consumers with a combined entity better able to mount a more effective competitive challenge against the incumbents. It will also ensure the investment needed to guarantee early LTE roll-out, better network coverage, higher speeds and less network congestion.

The Commission’s preliminary conclusion that this merger will reduce competition ignores these obvious pro-competitive effects and is wrong. Rather, the merger will ensure sustainable competition in Austria for the longer term.

The Commission has recently said that consolidation in the telecoms field can be beneficial if it increases efficiency, emphasizing cross-border consolidation. It is wrong, however, to assume that only cross-border consolidation can achieve efficiencies.

It is widely recognised that the main source of efficiencies is the in-country consolidation of operations, including network, sales, marketing and administrative functions. The combination of H3G and Orange does exactly that.

H3G’s offer of remedies: In an effort to achieve a speedy approval of the merger (and despite our view that the merger results in compelling pro-competitive effects), we have engaged in detailed remedy discussions with the Commission. As previously indicated, we made a very favourable and comprehensive MVNO access offer to all comers that will introduce new and effective competition in the Austrian market. The terms we have offered are extremely attractive and unmatched in Europe and will ensure that Austrian consumers benefit from a choice of new and competitive mobile services in all segments of the market (voice, data, prepaid and postpaid).

Our offer has already been endorsed by two substantial market players, and we are in active discussions with a number of others.

Instead of opposing the merger of the two smallest operators in Austria on the basis of its 4 to 3 concerns, the Commission should allow it to proceed and facilitate the entry of new, competitive MVNO players in the Austrian market. Our MVNO offer creates the favourable conditions for that to happen. This, rather than a rejection of the merger, will ensure a pro-competitive outcome for Austria.

The Commission should also take into account, and be concerned with, H3G’s own ability to compete post-merger. The intensity and effectiveness of our continuing competitive challenge will depend largely on the means at H3G’s disposal to continue to drive the market with a better network and attractive pricing. Additional structural remedies or economic commitments imposed on H3G by the Commission mean adding adverse economic burdens on H3G, the smallest player in the market. That will only undermine H3G’s ability to be an effective competitor, to the detriment of Austrian consumers and the Austrian economy.

We will detail these and other points in our response to the Commission’s Statement of Objections and are hopeful that we can convince the Commission of the pro-competitive benefits of the proposed merger. We will continue to work with the Commission in order to achieve a positive outcome, Hutchison Whampoa’s statement said.

China Watch Blog has learnt that Apple has released the much awaited iPhone 5 model in eight countries, including Hong Kong on Friday.

Thousands of potential buyers queued up at Apple store in Hong Kong to buy the iPhone 5 model, which is expected to hit 50 million orders in a year.

The iPhone 5 represents the first major revision of the iPhone’s screen size since the first model was introduced in 2007. The new iPhone has an elongated screen —4 inches (10.16 centimeters) measured diagonally— that allows room for another row of icons and lets widescreen movies fit better. The calendar will now show five days at a time instead of just three. Previous iPhone models had 3.5-inch (8.89-centimeter) screens. The new phone is also thinner and weighs less than previous models. It can operate on LTE cellular networks and sports a new processor and updated software.

Aside from Apple stores, the iPhone 5 will be available at Apple’s website as well as through AT&T, Sprint, Verizon Wireless, some Best Buy, RadioShack, Target and Walmart stores and certain Apple authorized resellers. The phone will be available in more than 22 countries on Sept. 28

China Watch Blog has learnt that Apple has launched its iPhone 5 which has a 4-inch screen, 18% thinner, and 20% lighter.

Apple has given it a completely new avatar made of glass and aluminium on Wednesday in a bid to take on rising challenges from the Android brigade.

iPhone 5 is everything that a smartphone owner could possibly ever desire for: It is taller, leaner, lighter, shinier and packs in much more punch than ever. But the best part lies in its price tag. Apple iPhone 5 will cost the same as its predecessor – $199, $299 and $399 for 16, 32 and 64 GB versions respectively. These prices are applicable to the operator-locked handsets in the US market. Apple did not give out the prices of unlocked variants.

Pre-orders for the iPhone 5 will commence on September 14 and it will hit the shelves in US and UK on September 21 followed by a rollout in 20 more countries, including Canada, UK, Germany, France, Australia, Japan, Hong Kong and Singapore, by October.