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Updated: 9 years 3 weeks ago

BlackBerry Ltd CEO still trying to overcome ghosts of RIM ‘king of the hill’ days

BlackBerry Ltd. Chief Executive Officer John Chen has cut costs and started posting profits in his year and a half at the helm. But he’s still dealing with ghosts from the halcyon days.

Chen said his biggest challenge is convincing his employees that BlackBerry’s days as a smartphone-focused company are over.

“It’s a hard cultural shift in our company because we used to be the king of the hill,” he said at a May 5 event in the company’s hometown of Waterloo, Ontario. When Chen joined, the culture inside the firm was “everything has to be BlackBerry, if you’re not using a BlackBerry then you’re not very intelligent,” he said.

Chen’s turnaround plan centres on expanding BlackBerry’s software business to diversify away from handsets, whose global market share has dropped to less than 1 per cent. He’s building new applications for other companies’ smartphones and envisions a future where BlackBerry security software keeps billions of connected devices — from cars to pacemakers — safe from hackers.

Trying to persuade customers that the company has changed isn’t easy either.

“One of the biggest things that I’m working and struggling with, that everybody here can help, is our reputation,” he told a crowd of 400 Waterloo business owners and community members.

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About 2,200 enterprise customers bought BlackBerry software last quarter, he said. “More and more are doing it, but still a lot are sitting on the sidelines.”

Before Apple Inc.’s iPhone existed, BlackBerry had convinced businesspeople that they couldn’t live without mobile e-mail. “Crackberries” were a status symbol for the powerful and connected, and in 2008 one in five of the world’s mobile phones were BlackBerrys, according to researcher Gartner Inc.

As consumers flocked to the touch screens and massive application libraries offered by its competitors, BlackBerry’s global market share slumped.

‘Sea Change’

“The reason why we all grew up with BlackBerrys is because there were no other choices,” Chen said. “When the other choices started showing up I think we, collectively now, as a company, refused to believe that there was a sea change.”

The CEO took over in November 2014 after a plan to take the company private collapsed. In his previous job, he revamped business software company Sybase Inc. and sold it to SAP AG for US$5.8 billion in 2010, more than six times its value at the start of his tenure.

At BlackBerry, he’s still working at reversing revenue declines. Chen said in March that sales are nearing a bottom after slumping 32 per cent in the latest quarter. He’s aiming to double software sales to US$500 million by next March. On the device side, Chen has unveiled three phone models — the Leap, the Passport and the Classic — since September and plans more this year.

“Not long ago the company was in deep, deep trouble. We are now out of trouble, in terms of financials, but we haven’t established the growth,” he said.

On Friday, Chen sent out his first tweet from his official Twitter account.

.@JohnLegere in his @BlackBerry tee finally got me onto #Twitter. Can’t wait to get & wear my Magenta @Tmobile shirt.http://t.co/soeQHoufSj

— John Chen (@JohnChen) May 8, 2015

Bloomberg News

BlackBerry Ltd Leap review: Low price, but undeniably a BlackBerry

BlackBerry’s latest offering, the Leap, gives users who enjoy an all-touch experience the upgrade that keyboard lovers received with the Classic. It’s aimed at mobile professionals who want an economical way to get the power and security of a BlackBerry at a consumer-friendly price – as low as $0 with a two year contract (check with your carrier), or about $349 unlocked at ShopBlackBerry.com.

Despite the low price, the Leap is undeniably a BlackBerry. Build quality is solid. At 5.67 x 2.87 x .37 inches, it sits comfortably in the hand, and at 170 grams (6 oz), it’s not too heavy to handle. I found it easy to operate one-handed; the textured back and non-slip sides cut down the risk of drops.

The screen is very good: a clear and bright edge-to-edge 5 inch, 1280 x 720 HD display (294 pixels per inch, if you’re counting) with 24 bit colour and 16:9 aspect ratio. It can’t hold a candle to the Blackberry Passport’s display, of course, but it’s quite respectable, and good value for the price. The company did save a few bucks on some of the innards here and there to maintain the price point; for example, there’s no Near Field Communications (NFC), meaning many mobile payment mechanisms won’t work, and there’s no SlimPort for HDMI output, but it’s still a very well configured phone.

The cameras are fairly basic, with an 8 MP auto-focus rear camera with 5X digital zoom, flash, video image stabilization and 1080p HD video, and a 2 MP fixed focus front camera with 3X digital zoom and 720p video. Images were decent, and there was little shutter lag. The operating system has some clever photo features built in, such as Time Shift, which quickly snaps a series of images so you can capture that one moment when everyone’s eyes were open.

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BlackBerry didn’t skimp on the cellular capabilities. 4G and LTE/HPSA+ work fine. Bluetooth 4.0 Low Energy and EDR are built in as well, and the WiFi radio is 802.11.b/g/n. 4G Mobile Hotspot, WiFi Display, and Miracast are also supported, as well as FM radio (the headphone cable acts as an antenna). All latched on to signals and didn’t let go, even in dubious coverage areas. Voice quality was pretty good in most cases, thanks to dual noise-cancelling microphones.

Despite the fact that the speaker is a dinky little grille on the back of the Leap, I was pleasantly surprised by the sound quality. Playing the Sabadell flashmob version of Beethoven’s Ode to Joy, I could feel the bass as I held the phone. While you can’t get the richness offered by larger speakers, the Leap acquitted itself well. The designers even put some little bumps by the speaker to lift it off the desk and let the sound out if it’s lying flat. Obviously, they work best on a hard surface. Sounds are apt to be muffled on soft surfaces, unless the phone is face-down.

The sensor collection consists of an accelerometer, ambient light sensor, and proximity sensor, and there is, of course, a GPS.

The processor, a dual core 1.5 GHz Qualcomm, is not blazingly fast, but doesn’t suffer major performance lags. I found the 2 GB memory and 16 GB storage quite sufficient, but if you need more storage, the microSD slot supports cards up to 128 GB. Because the Leap is a sealed unit without removable battery, the microSD and SIM slots are under a cover on the left side, easy to access, yet protected. The cover seems sturdy enough to survive, rather than falling off after minimal use.

Pau Barrena/BloombergAn employee holds a new BlackBerry Ltd. Leap smartphone for an arranged photograph at the Mobile World Congress in Barcelona, Spain, on Tuesday, March 3, 2015.

Speaking of the battery, I was prepared to be disappointed that it wasn’t swappable, but the 2800 mAh is, to put it mildly, amazing. It’s rated at 25 hours of heavy use; I was able to go for over two days without worrying about finding a power plug. And that was without enabling any of the power saving features. Power saving mode lets you selectively throttle the CPU, reduce screen brightness, shut down wireless or location services, and turn off advanced features, to increase life by about 15 per cent. By default, it automatically kicks in if the battery capacity falls below 20 per cent, but you can configure it to do so sooner or later, or not at all.

A lot of the goodness in the Leap comes from the operating system. It runs the latest and greatest, BlackBerry 10.3.1, giving the device all of the benefits of BlackBerry security and business features, as well as BlackBerry Blend, software that allows you to access BlackBerry features on a desktop or tablet.

As well as being a great first BlackBerry for a mobile professional, the Leap is an ideal upgrade for the BlackBerry Z10 user whose contract (or phone) is expiring. It has a 40 percent larger screen, is faster, and has better battery life, while preserving the excellent touch keyboard (sometimes I think it’s psychic, the way it anticipates what I’m about to type) and other features of the all-touch Z10.

In the box, all you get is the Leap itself, a micro USB cable, a charger, and a wired stereo headset, but BlackBerry has also released several accessories, including a charging/sync cradle known as the Sync Pod, as well as several cases and shells. I received the Flex Shell with my review unit. It’s a simple plastic shell that turns into a stand that props the device horizontally or vertically when you pop out the cutout on the back. It’s pricey, at about $35, but it does the job.

The BlackBerry Leap will be available from Bell Mobility, Rogers Wireless, Sasktel, TELUS, WIND Mobile, ShopBlackBerry, and select Tbooth wireless and WIRELESSWAVE locations starting on May 7th, 2015, for as low as $0 on contract. A variety of accessories, including cases, carrying solutions, chargers, and audio peripherals, are also available through the carrier partners or ShopBlackBerry. BlackBerry has also introduced three new Accessory Value Bundles that include an unlocked BlackBerry Leap with accessories, offering additional savings. The BlackBerry Leap Efficiency Bundle, BlackBerry Leap Travel Bundle and BlackBerry Leap Power Bundle are available now on ShopBlackBerry.

Microsoft Corp is not considering takeover bid for Salesforce.com Inc: report

Microsoft Corp. is not mulling an offer for Salesforce.com Inc., according to a Reuters report on Thursday citing two sources.

An earlier report by Bloomberg News, citing people with knowledge of the matter, said that Microsoft is evaluating a bid after the San Francisco-based cloud software provider was approached by another unnamed would-be buyer.

But Microsoft sees Salesforce’s current market valuation of US$47 billion expensive, though it could review a bid for Salesforce in the long term, Reuters reported, citing two people familiar with the matter.

Microsoft jumped 2.7 per cent to US$47.95 and gave the biggest boost to the S&P and the Nasdaq after Reuters reported that the company was currently not weighing an offer for Salesforce.com. Salesforce.com fell 2.2 per cent to US$72.86.

Oracle Corp. Chief Executive Officer Safra Catz said recently an acquisition of Salesforce would create disruption in the software market. She declined to comment on whether Oracle was interested in buying Salesforce.

Salesforce was involved in strategic-alliance discussions with SAP SE last year, people with knowledge of the matter told Bloomberg last week. SAP said it’s not considering a bid for Salesforce.

For any buyer, Salesforce offers a leading position in customer relationship management, or CRM, software, as well as cloud computing — the delivery of business software and services via the Internet.

Compiled with files from Reuters, Bloomberg News

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Project CARS review: A PC racing simulator that’s unapologetically for gearheads

Project CARS knows exactly what it wants to be: A hardcore racing simulator.

This is perhaps to be expected given its rather less than traditional genesis.

It was financed largely by a new and curious crowd-funding platform called World of Mass Development (WMD), the brainchild of the game’s British developer, Slightly Mad Studios (Need for Speed: Shift, Shift 2: Unleashed).

WMD is clearly designed to attract people keen to have a say in the sort of game on which they’re spending their money. It allows backers to be more like investors, providing design input and potentially even earning some of the money they contributed back via a profit sharing system. They have a legitimate stake in the project.

The first product of this lengthy funding and development process is Project CARS, a vast and visually magnificent racing game well worth the attention of hardcore car aficionados, though it does have a few wrinkles that may make it a difficult pill for folks who straddle the line between enthusiast and casual racing fan.

Slightly Mad Studios

Before getting to the nitty-gritty, I need to divulge that while I play loads of racing games, I’m not exactly a gearhead.

And Project CARS is definitely made with gearheads in mind.

It’s a decidedly European-style simulation racer (though with an odd, ill-fitting American-accented woman providing voiceover explanations of various game systems) concerned much more with delivering an authentic racing experience than the sort of gimmickry that’s become the norm in many modern racers. There’s no ability to rewind to recover from crashes, no leveling or artificial progression systems. There’s just you, your car, and the race at hand.

In career mode, these races pop up on an annual calendar of events and come in the form of short series and one-offs in a variety of classes, from superkarts all the way up to true Formula rides. You can enter or skip any race your current contracts allow. Many are framed as true motorsport events, complete with practice, qualifying, and race sessions (sometimes with mandatory pit stops) spread out over a full racing weekend.

At the end of the season you’ll be offered new contracts. You can track your career performance and measure your progress toward a variety of milestones, including long-term historic goals – such as winning a triple crown over three years – and smaller objectives, such as earning endorsements and accolades.

Online play, meanwhile, allows players to completely customize each session, designing every aspect of a full race weekend from scratch. In perhaps the most overt indication that this is indeed a game intended for hardcore racing nuts, the default options when creating an online match include manual rather than automatic shifting, a gritty helmet view cam, and a good deal more laps than most casual racing fans are probably interested in when playing online.

Slightly Mad Studios

Slightly Mad’s passion for true motorsport shines through in just about every aspect of the experience.

The cars are wonderfully lifelike and bursting with detail inside and out, from the interior plastic mouldings of headlights to working real-time gauges in the cockpit. You can even see the individual stitches on your driver’s racing gloves.

The dozens of real-world tracks (plus a few fun fictional ones) are equally stunning. Familiar circuits like the Nürburgring and Laguna Seca burst to life in fresh ways, with active and detailed crowds and some truly impressive particulate effects as cars shed debris in crashes and spin up grit when their wheels leave the course.

And don’t even get me started on the weather effects. If you’re playing on a tricked out PC you’ll be treated to individual water droplets pattering windshields before being quickly swiped away by wipers, tail lights reflecting off small raceway puddles, and patches of thick, dynamic fog. Longer races may take you in and out of multiple storm systems; a few laps raced in a deluge, then a few more in sunlight slowly drying out the tarmac – even as a second wave of clouds close in for another downpour to close out the race.

However, the developers’ ambition to giving us an authentic racing experience seems to have occasionally left them blind to the interests of people who may not want to play the way they do.

For example, they clearly assume that players will want to view their game from inside the car for maximum immersion, and have provided multiple interior camera angles to do just that – including a lovely centre-console view just to the side of the driver’s head.

However, there’s only one behind-the-car camera, and it’s a little low and close to the butt end of your vehicle. Going over a steep hill often causes your car to get in the way of your view of the track ahead. I found myself trying to peer through the rear window and windshield to see what was coming up whenever this happened. A second exterior angle that pulls the camera back a few metres would have easily solved this problem.

Slightly Mad Studios

Vehicle handling may also prove challenging for people who don’t want to play the way Slightly Mad intends.

The developers want you to be able to really feel what each of the game’s cars are like to drive, free of any synthetic interface aids. Superkarts, with their low mass, overpowered engines, and small but wide tires, are wildly grippy and corner like crazy. Weightier cars, meanwhile, are insanely easy to spinout, and correcting fishtails without completely easing off the accelerator can be maddeningly difficult.

A huge array of tuning options – downforce, springs, slips, weighting, brake balance, tire pressure…the list goes on – and a bevy of pit strategy options to do with fuelling, tire compounds and pressures, and damage repair help to further immerse car fanatics in the fantasy that they are actually driving and tinkering with the rides of their dreams. They’ll be in heaven.

Then there are guys like me, who just want to enjoy a quick roll around a gorgeous track in an envious vehicle and, you know, maybe win some races.

To that end, we’ve been given a healthy array of driving assists to fiddle with. Problem is, it takes a lot of fiddling to get things just right. And even then you may run into a few technical problems.

I typically play racing sims with assists like stability control and anti-lock braking switched on and opposing driver AI set somewhere above rookie but below professional. It quickly became apparent that I wasn’t going to have much success in Project CARS using these settings. At least not all the time.

The smallest mistakes – like dipping a couple of tires just off the track – were often enough to send me spinning out of control. That can make races on especially narrow circuits like Road America and Oulton Park, where there are long stretches of track that can barely fit two cars abreast, incredibly tricky.

Slightly Mad Studios

This led me to switch on assisted steering – which helped, but not as much I’d have thought. Plus, assisted steering suffers a curious bug on some circuits that sees your car attempting to turn into the pit at the very start of the race, forcing the player to wrestle back control.

(And that’s just one of a number of technical problems I ran into during my 200 or so races, another of which was an occasional tendency for the game to think my car had left the track – invalidating my lap time – when my vehicle was clearly in the centre of the road.)

Plus, the (optional) cornering line that players like me rely on to know when to brake and how best to approach tricky bends doesn’t seem to be optimized by class. I found it often transitioned from green to red too early when in less powerful cars, prompting me to decelerate early and lose critical time, which kind of defeats its purpose.

Of course, Project CARS‘ target audience probably prefers not to rely on such assists – which could be why Slightly Mad didn’t lavish them with attention. That just tells me that this could be an instance in which the influence of a traditional publisher interested in delivering a product for a broader audience might have had a positive influence, pushing for such systems to be better tuned and polished.

Keeping all of this in mind, I was eventually able to settle on a selection of driving aids that felt comfortable and gave me a fighting chance at winning most races against average AI opponents. It just took a while. And there are still some races that I find myself avoiding on the calendar simply because I know I’ll likely be frustrated.

Slightly Mad Studios

If you tend to look to racers simply for quick bits of disposal high-speed thrills and lean more toward the Hot Pursuits and Burnouts of the world than the Gran Turismos and Forza Motorsports, Project CARS could end up leaving you gripping your controller with white knuckles of aggravation.

That said, Simply Mad’s latest earns a pretty easy recommendation for anyone looking for a racing game unambiguously and unapologetically locked in the simulation category. Its vision is clear, and there can be little doubt that much love and passion was poured into its crafting.

Project CARS occupies a niche, but does so with confidence and aplomb. Wouldn’t it be nice if more developers were similarly self-assured?

Slightly Mad Studios

Tesla battery orders have been ‘like off the hook,’ says CEO Elon Musk

Tesla Motors Inc. is already building a 5-million-square-foot battery factory. It’s not big enough.

That was the message from Tesla Chief Executive Officer Elon Musk this week while discussing, for the first time, the early response to his new product line of storage batteries designed for use in homes and businesses. The numbers are impressive. In the first few days of reservations since the battery announcement late on April 30, Tesla booked orders worth roughly US$800 million in potential revenue, according to figures compiled by Bloomberg Business.

“It’s like crazy off-the-hook,” Musk said during an earnings presentation on Tuesday. “The sheer volume of demand here is just staggering.”

Before anyone gets too excited, it’s important to note the biggest caveat: reservations don’t necessarily convert to sales. That’s especially true for the home storage batteries sold under the name Powerwall. Anyone excited about a future of inexpensive solar power can now place a reservation online, years in advance, with no money down and no commitment to buy. To reserve a Tesla Model X vehicle, by contrast, requires US$5,000 up front.

There’s also no way for Tesla to keep up with the level of demand reflected by the early reservations. The company is sold out of storage batteries until mid-2016. Musk claimed the production of storage batteries alone could “easily” take up the entire capacity of Tesla’s US$5 billion factory in Nevada, which is scheduled to open next year. The massive facility was originally slated to devote about two-thirds of its output to electric-vehicle batteries.  “We should try to make the factory bigger,” Musk said.

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As for profit, Tesla is probably making very little from early battery sales. Musk said the gross margins will initially be “low” but will rise to “somewhere around 20 per cent” after production ramps up at the new factory.

Analysts are still trying to figure out how to value the new business. Baird & Co. and Morgan Stanley don’t yet include the battery storage products in their valuations of Tesla. Getting an accurate estimate of demand may take more than a year, Morgan Stanley’s Adam Jonas wrote in note to investors on Wednesday. JPMorgan Chase’s Ryan Brinkman values the new storage business at US$15 a share, or about US$1.9 billion. “While we believe it is still quite early to estimate with a good degree of accuracy,” he said, “we do look kindly upon it.” Here’s the Math on Tesla’s US$800 Million Storage Battery
Even with the caveats, interest in Tesla’s new batteries is massive. Cheap electricity storage is something utilities have pursued for years with little success–a product that has the potential to bolster the power grid and increase the spread of solar power. But Tesla hasn’t been willing to publicly put a dollar figure on the reservations.

Here’s how Bloomberg Business crunched the numbers behind the US$800 million:

The Powerwall home batteries designed to be paired with rooftop solar systems received 38,000 reservations, according to Musk’s comments during Tuesday’s earnings call.

Some customers order more than one battery, with an average reservation amounting to somewhere from 1.5 to two batteries. Musk described the total demand as “more like 50,000 or 60,000; batteries in early reservations. Let’s call it 55,000 batteries.

The Powerwall comes in two designs sold at different prices: US$3,000 and US$3,500 each. Let’s split the difference: US$3,250 apiece.

Total Powerwall Orders So Far: US$178.8 million

But the more significant interest in power storage is from businesses and utilities. When Tesla announced the product line last week, the company said it was already working on projects with Target and Amazon and with electric utilities that include Southern California Electric and Texas-based OnCor. That product, called the Powerpack, comes in 100 kilowatt-hour battery blocks.

Musk said the company has received 2,500 reservations for the commercial-scale batteries and that the typical installation comes with “at least 10 Powerpacks.” So that’s 25,000 units totaling 2.5 million kilowatt hours.

Musk used Twitter last week to disclose pricing for the Powerpack at US$250 per kilowatt hour.
Total Powerpack Orders So Far: US$625 million.

Add the estimates and you have Tesla’s grand total for battery reservations: US$803.8 million. 
 
“Your math looks right,” said Khobi Brooklyn, a spokeswoman for Tesla. “In the coming months, we will work with our distribution partners to ensure that customers are well informed and know what to expect when deliveries start this summer.”

Bloomberg.com

Rogers Media Inc cutting 110 jobs, mainly at Omni multicultural TV stations

TORONTO — Rogers Media Inc. said Thursday it’s cutting 110 jobs from its television operations, mainly at its Omni multicultural stations, as it replaces traditional newscasts with interactive current affairs shows.

The subsidiary of Rogers Communications (TSX:RCI.B) said it will no longer produce Omni newscasts starting on Monday, laying off production staff and reporters.

The changes come as the broadcaster shakes up its programming across Omni stations in an effort to merge the multicultural brand’s operations with its City stations.

Omni currently airs local news in Cantonese, Italian, Mandarin and Punjabi.

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Under the new programming, Omni will launch interactive current affairs shows that will broadcast in Cantonese, Mandarin and Punjabi.

The Italian newscast is being scrapped entirely and replaced with popular novella “Raccontami,” an import from Italy.

Omni newscasts had production costs of about $9 million last year and brought in $3.9 million of advertising revenue, said Colette Watson, vice-president of television and operations at Rogers.

“The math didn’t work,” she said.

“It’s the magic of every television executive. You need to find the show that will resonate with audiences, so this is what we’re doing.”

The new shows will have a stronger focus on community stories, rather than news from overseas, Watson said.

As part of the changes, Rogers will scrap its Edmonton edition of “Breakfast Television” on City, and launch a new show called “Dinner Television” in the evening, hosted by NHL veteran Jason Strudwick.

Telus Corp posts strong results; adds 37,000 postpaid subscribers

The train that is Telus Corp. keeps chugging along, as the telco kicked off its fiscal year with a bang, posting strong results in both wireless and wireline.

The Vancouver-based company recorded a 11.5 per cent rise in its adjusted net income to $427 million from $383 million during the same three months in 2014 ended March 31. Analysts had been expecting an adjusted net income of $408.2 million, according to data compiled by Bloomberg. Operating revenue rose 4.6 per cent in the period to $3.03 billion, also beating the consensus estimate of $3.01 billion.

During the quarter, Telus returned $400 million to its investors: $244 million paid in dividends and $156 million spent on share purchases. It announced a two-cent hike to its dividend to 42 cents per share, the ninth increase since May 2011. Shares of Telus rose 1.9 per cent Thursday to $42.80 in Toronto.

Notably, the monthly postpaid attrition rate declined eight basis points year-over-year to 0.91 per cent, an achievement analysts at RBC Capital Markets called “impressive.” Chief executive officer Joe Natale credits this feat, as he always does, to Telus’s employees and their “customer-first approach” to business.

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“There are periods where there’s greater growth versus lesser growth, but the key for us is the loyalty rate,” Natale said in an interview. “The best customers to get are the ones you have already.”

The average revenue Telus generated on its monthly cell phone contracts and pay-as-you-go plans – a metric called blended APRU – increased 3.2 per cent to $62.34, marking the 18th consecutive quarter of year-over-year growth. Wireless network sales grew 6.4 per cent to $1.54 billion, driven by a 19 per cent spike in data revenue, as higher-value clients now make up 86 per cent of Telus’s total 8.3 million base.

Telus touted a net gain of 37,000 new postpaid wireless subscribers, which was 11,000 fewer compared to the same period last year, reflecting “slower market growth” and “increased competitive intensity.” Still, the company edged out rival BCE Inc.’s Bell Mobility, which added a net 35,373 postpaid users. Telus also shed a net 29,000 customers who prepaid much less to access its mobile network.

Telus attracted a net 21,000 Telus TV customers, 6,000 fewer than it gained in the same quarter in 2014, and added a net 23,000 high-speed Internet users. Shaw Communications Inc., a competitor to Telus in Western Canada, lost subscribers in both these service offerings, per its most recent financials.

When asked what oil’s prolonged price slump has meant and what the NDP victory could mean for Telus in Alberta, Natale said: “Is there some conservatism or trepidation on the part of the markets? Sure, there’s always pockets of that in any sort of shift or change in the price of a commodity or a currency, but fundamentally our prospects in Alberta are as strong as they are elsewhere across the country.”

Shifting to the ever-fluid regulatory arena, the company noted in its release that the ruling on wholesale domestic roaming rates issued by Canada’s telecom watchdog on Tuesday is “not expected” to “have a material impact on Telus’ operations.”

Financial Post
cpellegrini@nationalpost.com

First self-driving vehicle could be a Daimler Trucks North America LLC-manufactured 18-wheel

LAS VEGAS — Travelling about 55 miles per hour on a Nevada highway, the big rig’s driver looked like The Thinker, with his elbow on the arm rest and his hand on his chin. No hands on the steering wheel, no feet on the pedals.
Mark Alvick was in “highway pilot” mode, the wheel moving this way and that as if a ghost were at the helm.

Daimler Trucks North America LLC says its “Inspiration” truck, the first self-driving semi-truck to be licensed to roll on public roads — in this case any highway or interstate in Nevada — is the future of trucking. It’s a future that will still need drivers, but they might be called “logistics managers.”

“The human brain is still the best computer money can buy,” said Daimler Trucks North America LLC CEO Martin Daum on Wednesday.

Although much attention has been paid to autonomous vehicles being developed by Google and traditional car companies, Daimler believes that automated tractor-trailers will be rolling along highways before self-driving cars are cruising around the suburbs.

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On freeways there are no intersections, no red lights, no pedestrians, making it a far less complex trip, said Wolfgang Bernhard, a management board member of Germany’s Daimler AG, at an event in Las Vegas.
But it will be years before an autonomous truck hits the highway for anything more than tests and demonstrations, the company says.

The industry is watching the developments, said Ted Scott, director of engineering for American Trucking Associations, which represents trucking companies.

He questioned what the economic benefit would be, with companies paying a driver’s salary on top of the new technology, even given the potential safety advantages including less-fatigued drivers.

“Being a tired driver is not as big of a problem as it’s often made out to be,” Scott said.

The group representing truck drivers — the Owner Operator Independent Drivers Association — isn’t sure the technology would affect driving jobs, noting the abundance of job openings now and the industry’s high turnover.

“We mainly have questions,” said Norita Taylor, the group’s director of public affairs, citing current laws regulating how long a driver can drive and prohibitions on texting while driving.

Al Pearson, Daimler Trucks’ chief engineer of product validation, said all the same laws still apply: No texting, no napping while in motion.

“We need an attentive driver,” he said, with the technology removing some of the stress.

The human brain is still the best computer money can buy

Legal and philosophical questions stand in the way, as does perfecting the technology that links radar sensors and cameras to computers that can brake and accelerate the truck and handle any freeway situation.

Public perception of a self-driving car will also be a hurdle. Daum said society might forgive a number of deaths caused by tired truck drivers at the wheel but they would never forgive a single fatal crash blamed on a fully automated big rig.

For now four states, including Nevada, and the District of Columbia, certify testing of autonomous vehicles on public roads as long as a human driver is behind the wheel, and a few others are keen on allowing the tests.

Bernhard said more states need to allow testing of autonomous driving before fleets of self-driving semi-trucks fill U.S. freeways and interstates anytime soon.

The company is still far from taking customer orders for the trucks.

“We’re just getting people inspired,” he said.

Alibaba Group Holding Ltd shares leap after Jack Ma appoints new CEO

Alibaba Group Holding Ltd. shares surged after China’s biggest e-commerce company named a new chief executive officer and posted a 45 per cent increase in revenue.

Daniel Zhang will become CEO on May 10, replacing Jonathan Lu, who will remain on the board as vice chairman, the company said Thursday. The change was announced as Alibaba’s sales rose to 17.4 billion yuan (US$2.8 billion) in the three months through March, beating analysts’ estimates.

Alibaba’s results helped ease fears that revenue growth was slowing as China’s economy cools. The stock had also been falling out of favour from investors after Chairman Jack Ma said last month that there would be a hiring freeze and the Chinese government criticized the company’s business practices.

“Alibaba’s strong financial results re-affirm that it is a must-own stock,” said Brad Gastwirth, chief executive officer of San Francisco-based ABR Investment Strategy.

Shares of Alibaba climbed as much as 12 per cent to US$89.29 in New York, heading for the biggest gain since September. The stock had slumped 23 per cent this year through Wednesday. Shares in the September initial public offering were sold at US$68 apiece, raising a record US$25 billion.

Yahoo! Inc., which in January said it would spin off its stake in Alibaba, jumped as much as 8 per cent to US$44.98. The spinoff is expected to be completed by year’s end.

Singles’ Day

Ma elevated Zhang after the chief operating officer helped turn the Nov. 11 “Singles’ Day” shopping promotion into the company’s biggest sales event.

“Daniel is a proven international business leader and innovator with a strong track record of delivering results,” Ma said. “Today’s announcement reflects our commitment to continuing to develop strong leadership from within.”

Net income fell 49 per cent to 2.9 billion yuan, the company said. Adjusted net income, which excludes some items, rose 16 per cent to 7.74 billion yuan.

Zhang, 43, joined Alibaba as chief financial officer of Taobao Marketplace in August 2007 and has been COO since September 2013. The change is being made because Alibaba wants to promote young talent, Executive Vice Chairman Joseph Tsai said on a conference call.

Global Expansion

Lu, 45, joined Alibaba in 2000 and replaced Ma as CEO two years ago.

“Expectations going into the fourth-quarter earnings were quite low,” said Brendan Ahern, chief investment officer at Krane Fund Advisors LLC in New York. “The change of CEO shows that senior management is very attuned to the fact that the stock has lagged.”

Alibaba is trying to diversify its businesses while simultaneously tapping more of the 557 million Chinese who access the Internet from their smartphones and tablets. Alibaba announced at least US$2.4 billion in investments the past 12 months, including a Chinese soccer team, smartphone maker and mobile application for hailing taxis.

The company’s overseas strategy has seen it start e-commerce sales in Russia, Brazil and India through its AliExpress service.

Ma has set a goal of getting 50 per cent of sales from outside China as it expands beyond the country’s urban areas. That effort comes as the nation’s economy is projected to grow at its slowest pace since 1990.

“We will go further to build a global network,” Zhang said in an interview Thursday with Bloomberg Television.

Online commerce from China accounted for 80 per cent of total revenue in the March quarter, while international e- commerce sales were just 9 per cent of the company’s total, Alibaba said.

As it deals with the slowing Chinese economy, Alibaba also is battling criticism from the government. In January, a report by the State Administration for Industry & Commerce accused Alibaba of allowing merchants to operate without required business licenses, to run unauthorized stores that co-opt famous brands and to sell fake wine and handbags.

“Perhaps Jack is sending a signal to the capital markets and the regulator that he’s willing to make changes,” said Mike Clendenin, managing director of RedTech Advisors.

— With assistance from Meenal Vamburkar and Tony Robinson in New York.

Bloomberg News

Bit Bazaar 5: Indie games, art, and craft beer mingle in the Big Smoke

Indie game culture is kind of a thing in Toronto.

For proof, look no further than the fifth semiannual Bit Bazaar, being held this Saturday, May 9th, between 1:00 and 9:00 pm, at Bento Miso in downtown Toronto. Dozens of exhibitors – including game makers, artists, and local food and beverage vendors – will play host to around 3,000 attendees looking to experience a snippet of the city’s lively indie scene as they play games, buy comics and crafts, eat food, and drink beer.

Jennie Faber, cofounder of the Bento Miso Collaborative Workspace, one of the women behind the Toronto-based, not-for-profit Dames Making Games collective, and a partner in the software development firm Bento Box, chatted with Post Arcade via email to explain Bit Bazaar. Long dedicated to providing opportunities to fringe and disenfranchised groups working in games and media art, she explains how Bit Bazaar is a chance for local creators outside the mainstream to not only vend their wares but also interact with the gaming community.

N. Maxwell Lander

Explain Bit Bazaar for our readers.

Bit Bazaar is a game arts fair – kind of a zine fair but for videogames. You can play and purchase games, meet artists and creators and support them directly by buying art prints, zines, toys, records and t-shirts. Plus, you can snack on really superb local food and drink craft beer all day.

What’s typically the most popular part of the fair?

Because it’s a relatively small event – just 55 exhibitors – you really can see and do everything without feeling too overwhelmed or like you have to pick and choose what to check out.

Our food and beverage exhibitors are always hugely popular, and typically sell out before the end of the day, so come early if you’re hankering for vegan tacos al Pastor by Santo Pecado or Grub’s spicy salmon wonton nachos.

We are collaborating with game artist collective Attract Mode for a third year. Previous shows exhibited new original game-themed artworks by high-profile cartoonists, including last year’s Comics vs. Games 3D show featuring stereoscopic prints. This time around, visitors will experience a panel from three cartoonists (LA’s Hellen Jo and John Pham, and Toronto’s Michael DeForge) in immersive virtual reality, which is just a really wild and unexpected marrying of mediums.

The PanelScapes show opens in Bento Miso on May 7 and you can also check it out during Bit Bazaar.

How did Bit Bazaar come about? Did it have a precedent, or was it simply something you felt was lacking?

We owe much to the long-established format and ethos of zine fairs. Applying that to a game festival, where you’d normally expect to find a straightforward showcase of playable games, maybe some talks and a commercial undercurrent, brings developers and supporters together in a more humane way.

I was greatly inspired by the Toronto Comic Arts Festival, and we were lucky to partner with them for our spring shows the last two years as an official offsite event. This year, they’ve scaled back their games programming, but we’re keen to satisfy the huge appetite Torontonians have for pairing alternative independent games culture with food, beer, comics and analog art.

There’s no shortage of game events year-round in Toronto, but I think our event is pretty unique not just here but in the world.

How has Bit Bazaar grown?

This is the fifth Bit Bazaar. We’ve held the event every spring and winter since 2013, growing from around 500 attendees to close to 3,000. We had 40 applications for just 24 exhibitor spots for our first event, and about 150 for 55 spots this time around. At this point we’re limited only by our venue’s four walls!

The Tournament Arcade is new for spring 2015. We have 8 co-op and competitive indie games lined up, and anyone can sign up solo or with a team to compete for the championship medal in Asteroid Base’s Lovers in a Dangerous Spacetime, Metanet Software’s N++, Zephyrware’s PSHGGG!, and more. Registration is open online now, or you can join the waiting list at the event on Saturday.

We’re also expanding in a few other ways. We’re adding a summer edition, which will be held at a major event during the Pan Am Games in July, as well as a fall event in Los Angeles in collaboration with our partner Attract Mode. And we’ll definitely be back at Bento Miso for our popular winter edition in December.

It takes place in Bento Miso, a coworking space for game makers. Can you explain the relationship between the venue and the festival?

I am a cofounder of Bento Miso, a coworking and event space for all kinds of creative people. We opened in 2012, and since then a vibrant community of game makers has made it home. Bit Bazaar is really shaped by the kinds of work our community is doing in alternative games, independent game art, and design, and I’m glad we can take time away from furiously chasing deadlines to celebrate our accomplishments.

The tone of the event is very much shaped by the place we are striving to build here; a space that practices inclusivity, that centres on marginalized creators’ work, that makes space for challenging content, new forms, and respectful collaborations.

In some ways Bit Bazaar is an extension of the idea behind bringing people together in the same physical space. We are asking game makers to stretch and do something a bit weird: work in an analog context, creating DIY, handmade, and other one-of-a-kind pieces that relate to their digital games. It’s a place to form connections, and the event is incredibly local, incredibly personal – just like our experiences with the small, nontraditional games they create.

Who ought to attend an event like this, and what should they bring?

Set aside your expectations about game and fan conventions. Bring your friends and family, come hungry and ready to play! Cash is good, and many of the artists are happy to barter and trade.

If people want to become participants in future Bit Bazaars, what should they do?

Come check out the fair to get a feeling for the kinds of games and work we are looking for, then join our mailing list to be notified when applications open up for the next edition.

The preceding interview was lightly edited for length and flow.

Zynga Inc founder Mark Pincus to cut 18% of jobs to save US$100 million

Zynga Inc. founder Mark Pincus is cutting 18 per cent of the casual-games company’s work force, less than a month after retaking the reins as chief executive officer.

The firings, amounting to 364 jobs, are part of a cost-reduction plan that will save US$100 million annually, the company said Wednesday in a statement. Pincus, who replaced CEO Don Mattrick on April 8, is also cutting back on outside services and reducing central functions as he works to develop hit titles for mobile devices, he said in an interview.

“We have urgency to focus the execution of the company,” Pincus said. “We’re just at the beginning of launching the most exciting mobile slate in our history.”

The job cuts will mostly affect corporate and central-services roles, Pincus said. The company, known for FarmVille and Words With Friends, is exiting sports and focusing on mobile games that fit into five categories, including casino and racing. The company’s first mobile action-strategy release, Empires & Allies, went live on Tuesday.

Zynga advanced 5.4 per cent to US$2.74 in extended trading. The shares rose 4.4 per cent to US$2.61 Wednesday in New York before the job cuts were announced. The stock is down 1.9 per cent this year.

The company ended development of two sports titles, NFL Showdown and Tiger Woods Golf, being worked on under Mattrick. Zynga will make six to eight games this year, Pincus said on a conference call with investors.

Related

The job reductions, including the closing of a studio in Orlando, were announced with first-quarter results. Zynga showed growth in mobile games, where the company has lagged behind competitors. Mobile bookings rose 84 per cent from a year earlier, and accounted for 63 per cent of total business, the company said.

The loss was 1 US cent a share, excluding some items, narrower than analysts’ projections for a loss of 2 US cents, the average of estimates compiled by Bloomberg. Bookings totalled US$167.4 million, versus the average estimate for $163.4 million.

Bookings at Zynga are based on purchases made during the period, while the company’s official sales include revenue deferred from earlier periods.

For the current second quarter, Zynga projects a range of US$145 million to US$160 million in bookings, below the US$161.8 million estimate, and an adjusted loss of 2 US cents a share, which matches analysts’ views.

Zynga, once the leader in social games played on Facebook, has struggled to make the transition to mobile phones.

Mattrick, a former Microsoft Corp. executive, joined the company as CEO in July 2013. Since Pincus’s return, senior Zynga executives including Chief Operating Officer Clive Downie have left. Pincus brought back a former lieutenant, Marcus Segal, as senior vice president of operations.

Bloomberg News

BlackBerry Ltd Leap features touchscreen, 25-hour battery life and a lower price tag than rival devices

TORONTO — BlackBerry Ltd. launches its new BlackBerry Leap smartphone in Canada on Thursday, a lower-priced device for consumers who want a touchscreen, but don’t want to pay the hefty price of an iPhone or Samsung Galaxy handset.

It’s the first touchscreen phone from the Waterloo, Ont.-based company since it launched the Z30 more than a year and a half ago.

Since then, BlackBerry has focused on releasing models with a keyboard, like the Passport and Classic, as they’ve proven to be more popular with the company’s business-centric customers.

Features on the Leap include a 25-hour battery life and an eight-megapixel camera.

The company says wireless carriers will offer BlackBerry Leap for free when users sign a two-year contract, or it can be purchased without a contract for $349.

Higher-end smartphones, including some alternative BlackBerry devices, tend to be priced in a range from $400 to $900 with a contract, depending on the model.

BlackBerry Leap will be available from an array of wireless carriers in Canada, including Rogers, Telus and Bell, as well as Wind Mobile, Sasktel and BlackBerry’s own web store.

Apple Inc faces big Irish tax bill

Apple Inc. may face a tax bill approaching the US$20 billion dollar range if the worst case scenario plays out with the European Commission.

Its investigation of the tech giant’s tax structure in Ireland began in June 2013, but Apple recently disclosed that risks associated with an unfavourable ruling could be material.

J.P. Morgan analyst Rod Hall believes recent disclosures such as this may be leading up to a significant decision point by the European Commission.

An Irish tax entity allows Apple, as is the case with other major corporations, to shield a large portion of its overseas earnings. Because of differences between U.S. and Irish tax laws, and successful tax negotiations between Apple and Ireland, it is estimated that the company pays very little tax on approximately 59%, or US$42 billion, of its global income.

In June 2014, the European Commission concluded that Apple’s tax structure may represent illegal state aid.

Assuming a full Irish tax rate of 12.5 per cent is applied to approximately $153 billion of relevant Apple profits over 10 years, Hall estimates the potential recovery could be about US$19 billion.

However, the analyst considers this largely irrelevant for Apple’s share price given its US$193 billion cash holdings.

“The bigger issue in our opinion is how ongoing taxation would be handled,” Hall told clients, noting that such a tax rate hike would reduce the company’s earnings by an estimated 10 per cent.

“Based on our work so far, we do believe that a negative EC ruling is more likely than not, but we note that the issues are complex and that there is likely a spectrum of potential outcomes with greater and lesser impacts for Apple,” he added.

Manitoba Telecom Services Inc plans to slash quarter of its Allstream workforce and cut its dividend

TORONTO — Canadian telecom company Manitoba Telecom Services Inc said on Thursday it would cut a quarter of its headcount within its Allstream division, reduce capital expenditures and slash its annual dividend following a strategic review.

Low interest rates and a spiraling defined-benefit pension bill have stung the Winnipeg-based company, which faces tough competition in the sparsely-populated central Canadian province where it sells MTS-branded telephone and Internet services and nationally where its Allstream fiber optic network connects mostly mid-market companies.

The company’s long-time CEO Pierre Blouin retired late last year. His replacement, Jay Forbes, said in February the company had “hidden gems” and could potentially offer new services.

The company said on Thursday that it would slash its annual dividend to $1.30 per share from $1.70 a share.

Manitoba also said it planned to reduce capital expenditure in its Allstream business by 20 to 30 per cent.

The company said it has pre-funded $120 million into its pension plan using its existing credit facilities. It said this one-time move will eliminate the need for solvency payments for 2015 and 2016 under any reasonable economic scenario.

It said some 100 employees have left the Allstream business already and a further 400 have received working notice and will exit the business throughout the current year and into 2016.

Tesla Motors Inc’s new battery doesn’t work that well with rooftop solar

Tesla Chief Executive Elon Musk introduced a new family of batteries designed to stretch the solar-power revolution into its next phase. There’s just one problem: Tesla’s new battery doesn’t work well with rooftop solar — at least not yet. Even Solar City, the supplier led by Musk, isn’t ready to offer Tesla’s battery for daily use.

The new Tesla Powerwall home batteries come in two sizes—seven and 10 kilowatt hours (kWh) — but the differences extend beyond capacity to the chemistry of the batteries. The 7kWh version is made for daily use, while its larger counterpart is only intended to be used as occasional backup when the electricity goes out. The bigger Tesla battery isn’t designed to go through more than about 50 charging cycles a year, according to SolarCity spokesman Jonathan Bass.

Here’s where things get interesting. SolarCity, with Musk as its chairman, has decided not to install the 7kWh Powerwall that’s optimized for daily use. Bass said that battery “doesn’t really make financial sense” because of regulations that allow most U.S. solar customers to sell extra electricity back to the grid.

For customers of SolarCity, the biggest U.S. rooftop installer, the lack of a 7kWh option means that installing a Tesla battery to extend solar power after sunset won’t be possible. Want to use Tesla batteries to move completely off the grid? You’ll just to have to wait. “Our residential offering is battery backup,” Bass said in an e-mail. 

Musk said in a quarterly earnings call on Tuesday said that demand for the batteries has been “crazy off the hook,” with 38,000 reservations for the Powerwall. While storing residential power with the Powerwall is still more expensive than grid power, he said, “that doesn’t mean people won’t buy it.” Demand for the new batteries, including those for businesses and utilities, has been so strong that the company may need to considerably expand its US$5 billion battery factory that’s under construction in Nevada.  

SolarCity is only offering the bigger Powerwall to customers buying new rooftop solar systems. Customers can prepay US$5,000, everything included, to add a nine-year battery lease to their system or buy the Tesla battery outright outright for US$7,140. The 10 kilowatt-hour backup battery is priced competitively, as far as batteries go, selling at half the price of some competing products.

But if its sole purpose is to provide backup power to a home, the juice it offers is but a sip. The model puts out just 2 kilowatts of continuous power, which could be pretty much maxed out by a single vacuum cleaner, hair drier, microwave oven or a clothes iron. The battery isn’t powerful enough to operate a pair of space heaters; an entire home facing a winter power outage would need much more. In sunnier climes, meanwhile, it provides just enough energy to run one or two small window A/C units. 
For more demanding applications, Tesla made its Powerwall batteries so they can be attractively stacked, side-by-side.

But SolarCity doesn’t offer a discount for multiple batteries. To provide the same 16 kilowatts of continuous power as this US$3,700 Generac generator from Home Depot, a homeowner would need eight stacked Tesla batteries at a cost of US$45,000 for a nine-year lease. “It’s a luxury good—really cool to have—but I don’t see an economic argument,” said Brian Warshay, an energy-smart-technologies analyst with Bloomberg New Energy Finance.  

Yes, Tesla’s Powerwall is cool technology with massive disruptive potential. As battery costs continue to fall and electricity regulations continue to evolve in the U.S., it’s going to make ever more sense to own a home battery. SolarCity said in its earnings call on Monday that it plans to offer an off-grid package next year in Hawaii, where electricity prices are almost triple the U.S. average.  

And the home-battery system is just one offering in the new lineup of Tesla batteries. The company is also doing business with big companies like Wal-Mart, Amazon and even with electric utilities like Southern California Electric and Texas-based OnCor. The economic argument for the commercial systems is straightforward in states with the right incentives, including battery subsidies and expensive electricity charges during peak hours. Tesla now has a clear pricing advantage against its battery competitors.

But the Powerwall product that has captured the public’s imagination has a long way to go before it makes sense for most people. Even in Germany, where solar power is abundant and electricity prices are high, the economics of an average home with rooftop solar “are not significantly enhanced by including the Tesla battery,” according to an analysis by Bloomberg New Energy Finance. 

That won’t stop homeowners from buying Tesla’s new batteries. Germans are already buying storage systems by the thousands at significantly higher prices. In the U.S., the product’s launch prompted a record day of inquiries from prospective new customers, according to SolarCity’s Bass. “There’s a tremendous amount of interest in backup power that’s odorless, not noisy and completely clean,” he said.

Tesla is probably making very little profit on the home batteries at this point and might even be selling them at a loss, according to research by BNEF. Both Tesla and SolarCity are just getting started, trying to get some traction before Tesla’s massive US$5 billion battery factory begins production next year. That’s when the battery market really gets interesting.

One of the reasons Tesla’s Powerwall batteries don’t make sense for many U.S. customers is the policy called net metering. These laws require utilities to buy back excess solar power sent from rooftop systems to the power grid. Net metering is one of the biggest government incentives for installing rooftop solar—and it’s also one of the biggest reasons not to use Tesla’s batteries for storage. 

There are 43 states that have net metering policies, according to the Solar Energy Industries Association. At least 12 states are weighing legal disputes over the policies, according to Bloomberg New Energy Finance.

If net metering goes away in states with expensive electricity, the argument for pairing solar with home battery storage will improve. 

At least 12 states are weighing legal disputes against the rules, according to BNEF.

Peak demand charges in California can account for as much as half of a commercial electricity bill. Those costs can be greatly reduced by storing electricity from cheaper hours to be used in more expensive hours—a practice known as peak shaving. California also offers subsidies for commercial battery projects that can cover up to half of the eligible costs.

Bloomberg.com

Quebecor Inc not likely expanding cell service across Canada following CRTC decision, say analysts

MONTREAL – The CRTC’s decision to regulate wholesale roaming rates is good news for small Canadian cell phone carriers such as Quebecor Media’s Videotron, but analysts say it doesn’t mean the Montreal-based company will rush to expand outside the province.

“I think among all the decisions the CRTC could have taken, this was not the best outcome that would have increased the odds of them going to Western Canada,” said Maher Yaghi, a telecom analyst at Desjardins Securities.

Though the CRTC will cap the amount Bell, Rogers and Telus can charge other carriers for allowing their customers to piggyback on major networks while roaming, it decided against other regulations the smaller rivals were pushing for. The regulatory body chose not to mandate pricing for leasing broadcast towers, as requested by Quebecor and Wind Mobile.

“What new entrants were hoping to get from the CRTC was some kind of a normalization or standardization of what they should pay the incumbents to place their antennas on these towers,” Yaghi said.

“I think this is going to lead to many sorts of delays getting set up if someone decides to build a wider area of wireless network outside of their current home base.”

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The new entrants – including Quebecor – had also asked that incumbents be forced to provide seamless roaming when travellers switch from one network to another. The CRTC decided the big carriers did not have to do this.

“Reduction in roaming fees outside Quebec does help reduce the cost of operating a network, however, it is a very small part of the overall cost structure,” said Yaghi.

Quebecor has said publicly that it’s holding off on rolling out national cellular service until it knows the final wholesale roaming rates in areas where it won’t be building its own networks. Although the CRTC has decided to regulate rates, the actual price won’t be announced until November.

“The rates will be one of many factors considered.  The others will include prospective partners, spectrum and financing,” said Rob Goff, telecom and new media analyst at Euro Pacific Canada.

In 2008, Quebecor was among the successful bidders in the AWS-1 spectrum auction. Then in March 2014, the company picked up seven licences in the 700 MHz spectrum in Quebec, Alberta, British Columbia and Ontario for $233 million. However, Yaghi says that for Quebecor to run a successful wireless business elsewhere in Canada, spectrum is only a small part of the equation.

“You need to build the network, you need to open points of sales, you need to subsidize handsets, and you need to brand. You need to do a lot of things to be successful, which they did in Quebec,” he said.

Still, Yaghi says the CRTC’s decision will have an impact on the company, even in Quebec. In 2013, Quebecor spent about $14 million on roaming fees within the province.

“Any reduction by the government of roaming fees, even inside Quebec, is a positive for them,” he said.

Quebecor is not yet saying how the CRTC’s decision will affect their business strategy, though they do consider the move to regulate roaming rates “a step in the right direction.”

I think among all the decisions the CRTC could have taken, this was not the best outcome that would have increased the odds of them going to Western Canada

“The final rates set by the CRTC will be decisively important for the viability of genuine competition,” said Quebecor Media vice-president of public affairs, Martin Tremblay, in a news release.

When contacted, Quebecor did not provide further comment on the decision. In Desjardins Capital Markets’ report it says that while the company does have a multi-product service offering in Quebec, it does not have the same advantages outside its borders.

For that reason, Yaghi says Quebecor may be better off strengthening its presence in Quebec, perhaps even buying up the 24.6 percent of the company owned by a subsidiary of the Caisse de dépôt et placement du Québec pension fund.

“Given how well they are doing in Quebec, they should stick to what they have been doing so well, and double up on that,” he said.

Financial Post
Dvanderlinde@nationalpost.com
Twitter.com/DamonVDL

Bell Media’s Super Bowl appeal can proceed, Federal Court of Appeal rules

Bell Media’s court case appealing a ban on the simultaneous substitution of Canadian commercials over U.S. ads during the Super Bowl can go ahead, the Federal Court of Appeal has ruled.

In January, Canadian Radio-television and Telecommunications chairman Jean-Pierre Blais announced Canadian television stations will be barred from the practice, known as “simsub,” starting with the 2017 Super Bowl.

He said the CRTC had received complaints from Canadians who want to see the big-budget, hotly anticipated U.S. advertisements that run during the event.

In response, Bell filed a motion with the Federal Court of Appeal in March, arguing the CRTC had overstepped its jurisdiction, violated the tenets of the Broadcasting Act and unfairly discriminated against Bell.

Bell also released the results of a Nanos Research survey finding only one in five Canadians thought the ability to watch U.S. Super Bowl advertisements was more important than supporting Canadian broadcasters who paid for the rights to air the event.

The court ruled Bell can proceed with its appeal on Monday.

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Crowdfunding campaign for home espresso machine brews backlash

TORONTO — Backers of a failed effort on the crowdfunding website Kickstarter are considering their options after founders of a coffee maker missed a mid-April deadline to get the project back on track.

ZPM Espresso claimed its Nocturne coffee maker was the world’s first smart espresso machine for the home because of a programmable control chip, more common in commercial machines, that would allow consumers to create the perfect shot of concentrated java by precisely controlling water pressure and temperature.

Yet the company’s plans never materialized, and now supporters who spent as much as US$1,000 on the machine — and assorted bonuses including T-shirts and coffee paraphernalia — are looking for answers.

Christopher Browne, a Toronto-based computer scientist, said he contributed $350 during ZPM Espresso’s original Kickstarter campaign from December 2011 to January 2012, which was supposed to cover the cost of the machine as well as a few extra gifts. The campaign raised US$369,569, well above the original US$20,000 goal.

The creators posted frequent updates in the beginning, Browne said. As the months passed, he remained positive even as the company ran into problems. There were issues with the quality of the manufacturing, and ZPM Espresso hired outside consultants to adapt the design.

Browne said he knew the project was destined for failure last fall as updates became less frequent and problems seemed to multiply.

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In January, ZPM Espresso announced it was shutting down and that only a small amount of the initial money remained to return as refunds. The news prompted other backers to complain on Kickstarter and social media, Browne said, with some comments from those who felt “betrayed” by the company turning vitriolic.

In an interview, one of the founders of ZPM Espresso shed light on some of the problems.

“The way you make something at volumes of 50 is completely different than the way you make things at volumes of a thousand,” said Gleb Polyakov.

Consumers need to understand that crowdfunding is a different consumer experience than buying an existing product from an online retailer like Amazon, he added.

“That feeling of involvement and early access and participation is probably the main reason people go towards crowdfunding as a platform and find it exciting,” he said.

“But when a company is only three people instead of IBM or Apple, the manufacturing process and the customer service process looks much different.”

On its website, Kickstarter says the responsibility for completing the project lies with the creator and that any refunds must be processed between the creator and the backers.

The company has updated its rules and terms of use several times since the site launched. Last year, it clarified the legal rights of backers to sue creators if they fail to bring the project to its “best possible conclusion.”

Browne said he and other backers have discussed going to court to pursue a refund or some other remedy.

“The agreements that Kickstarter set up are worded such that this isn’t formally a product, where you can have a direct expectation of delivery,” he said. “Anyone that’s looked at Kickstarter with any care ought to be aware of that, but people like to imagine otherwise.”

Despite that, Browne hasn’t soured on the idea of crowdfunding. On April 24, he posted on Twitter that he was proud to be the 1,119th backer of a specialized 3.8-litre insulated flask for storing beer that claims to be the world’s largest personal keg.

Facebook Inc’s Oculus to sell virtual reality headsets for consumers from early 2016

Virtual reality technology company Oculus said it would start shipping the much-awaited consumer version of its Rift headset in the first quarter of 2016.

Pre-orders for Rift will start later this year, Oculus, which Facebook Inc bought for US$2 billion last year, said.

Previous versions of the VR headset, available since 2012, were aimed at developers to make games and run tests. The consumer version was widely expected sometime this year.

“In the weeks ahead, we’ll be revealing the details around hardware, software, input, and many of our unannounced made-for-VR games and experiences coming to the Rift,” the company said on a blog post.

Screen grab/OculusA first look at the Oculus Rift. Screen grab/OculusThe inside of the Oculus Rift.

© Thomson Reuters 2015

Facebook Inc, IBM Corp partner to integrate cloud analytics, advertising services

Facebook Inc. and IBM Corp. announced on Wednesday that the two tech giants are partnering to provide brands with a targeted marketing service.

The companies will integrate IBM’s marketing cloud and enterprise analytics services with Facebook’s advertising capabilities, which will provide brands with deeper, more accurate insights into customers’ interests, IBM said in a statement.

The deal might allow, for example, a retailer looking to launch a new line of running gear to specifically target long-distance runners, then find insight into their preferences and offer deals based on their location’s climate.

“Brands understand the increasing need to provide customers with powerful and personalized experiences to nurture loyalty,” said Deepak Advani, general manager of IBM Commerce, in a statement.

“Through this collaboration, consumer product companies and retailers will be able to quickly and easily gain deeper insight into what their customers expect and provide them with compelling experiences that bridge the physical and virtual divide.”

IBM’s latest tie-up with another major tech company comes after it set aside a decades-old rivalry with Apple Inc. last July.  The two companies announced a plan to develop enterprise applications together.

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