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EU directive is putting the Shannon e-business park in jeopardy | WorldCom may file for bankruptcy protection this weekend
According to the Irish Times, an EU directive is putting the Shannon e-business park in jeopardy. The planned EUR150 million Westpark e-business park, to be developed by Concre Development, is expected to create 3,000 jobs over 10 years. An EU directive known as the Seveso directive has been cited by Shannon-based pharmaceutical company SIFA, which has lodged an appeal with An Bord Pleanala against Clare County Council's decision to grant planning permission for Westpark. The Seveso directive relates to safety risks posed by facilities that deal with hazardous substances and specifies certain controls for land use in the vicinity of existing industrial sites. SIFA, whose facility is adjacent to the proposed Westpark site, claims the proposal will lead to a restriction on the long-term potential for the future expansion of its facility and is contrary to the extent and provisions of the Seveso directive.
The paper also says that mobile phone companies in the Republic will not face price caps next January, telecoms regulator Etain Doyle has decided. The regulator is to review the Irish mobile market early next year before making a final ruling. The decision follows a consultation process during which mobile phone firm O2 warned that a decision to impose a cap on tariffs could lead to legal challenges. Separately, Doyle said that Eircom should continue to reduce its retail telecoms charges in line with set price controls, despite strong lobbying against the imposition of a new price cap by the company.
The Irish Independent reports that shares in Vodafone reached the STG1 mark on Thursday, boosted by good news from other telecoms companies. The shares had been struggling to rise above the two-digit-pence figure.
The paper also reports that software piracy is "seriously undermining" the Irish computer industry, according to high-tech lobby group ICT Ireland. The group said piracy costs the economy nearly EUR40 million every year in lost revenue. The piracy rate in Ireland grew from 41 percent in 2000 to 42 percent in 2001, the group said, adding that 5,000 extra Irish jobs in the sector would be created if piracy could be stopped.
The Financial Times says that Microsoft has reported better-than-expected revenues and earnings for the fourth quarter ending 30 June. The software giant reported net earnings of USD1.53 billion, or USD0.28 a share, compared with USD65 million, or USD0.01 a share, in the same period last year. The company took an exceptional charge of about USD1.2 billion to cover losses on the sale of its stake in AT&T Broadband and additional losses on its European cable investments. The company predicted strong growth in revenues, operating income and earnings per share during the year ending June 2003. Get more information on earnings from Microsoft and other tech giants from the ElectricNews.Net Markets section.
According to the Wall Street Journal, scandal-ridden WorldCom is planning to file for bankruptcy protection as soon as this weekend, people familiar with the situation said. WorldCom currently has between USD600 million and USD700 million in cash, but approximately USD250 million of that is controlled by its overseas operations, which are not expected to file for Chapter 11 protection. The remainder of the cash is being burned up not only by the cost of operations but also by WorldCom's panicked vendors, who are now demanding up-front payments. The filing by the troubled long-distance provider is not likely to have any immediate effect on the 20 million consumers and thousands of corporations who use its voice and data services.
The paper also reports that Sprint swung to a net loss of USD68 million in the second quarter, compared with a year-earlier net income of USD43 million. The third-largest long-distance company in the US said results were weaker than last year because of charges related to a write-down and a complicated revenue adjustment. The company's core long-distance service continued to be hindered by falling demand and aggressive pricing from competitors.
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