China Unicom to take on Apple, Google with OS

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China Unicom, one of China's three largest wireless operators, plans to introduce its own mobile operating system to compete head-to-head with Apple's iPhone and Google's Android OS in China.

The Wall Street Journal reported today that the wireless operator, which is building a third-generation wireless network that competes with China Mobile and China Telecom, is developing a new mobile OS brand known as "WoPhone."

The new operating system is based on Linux, and it's geared toward mobile handsets and tablets. Companies that plan to build devices using the new OS include China's ZTE, Huawei Technologies, and TCL. South Korea's Samsung Electronics, U.S.-based Motorola, and Taiwan's HTC are also building devices using the new OS, China Unicom's parent company, China United Network Communications Group, said in a statement today.

The company said in its statement that it hopes the new software will help the company develop 3G wireless devices more rapidly, thus getting them into the market more quickly. This is important because the Chinese 3G wireless market is just heating up with the major carriers battling for new 3G subscribers.

China Unicom has a long way to go in terms of winning new customers and trails behind larger players, such as China Mobile. As of January, China Unicom had 169.7 million mobile subscribers, including 15.5 million 3G customers. Meanwhile China Mobile had 589.3 million subscribers, including 22.6 million 3G customers.
Late last year, China Unicom launched WoStore, a mobile-application storefront that it said would support "all open smartphone platforms."

Apple's iOS and Google's Android operating systems are starting to gain market share in China. But they are not as prevalent as they are in other markets, such as the U.S. or Europe.

In China, Nokia's Symbian platform still garners the greatest market share in the smartphone market with 60.1 percent of all smartphones, according to Analysys International, a Beijing-based market research firm. Windows Mobile has the second highest market share with 13.1 percent. Google Android is third with 10.7 percent of the market. And Apple's iOS has about 5.4 percent.

Other wireless operators in China have also said they'd build their own operating systems for wireless devices. China Mobile launched its Android-based OS called "Ophone" in 2009, but the platform hasn't been a hit with customers.

A China Unicom spokesman told The Wall Street Journal that the China Unicom WoPhone platform will not be based on Android. But he declined to comment on whether that is because of Google's dispute with China's government last year. Google moved its search servers to Hong Kong from mainland China because it was worried about hacking and censorship.

by Marguerite Reardon

Full Profile E-mail Marguerite Reardon

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies.

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Will Libya be going the way of Iraq or Afghanistan?

Midweek By BUNN NAGARA

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THE situation in Libya is fast deteriorating, but not as much as the diplomatic environment abroad concerning Libya.

Over the weekend the UN Security Council (UNSC) slapped an arms embargo on the country. The US itself imposed sanctions on Libya as soon as the last American nationals left last Friday.

US officials have since pressured its allies to act similarly. Germany has suspended oil payments for 60 days to stem the funding of Tripoli’s anti-revolt actions.

The US also blocked the international flow of US$30bil (RM91.3bil) in assets belonging to oil-rich Libya. It is the largest amount ever blocked by the US, and among the swiftest actions of its kind.

The US and British governments have also prepared their military forces for action. This week warships and fighter aircraft from the US Sixth Fleet began moving closer to Libya, supported by Australia.

However, Canada, France, Germany and Russia are less keen on another invasion of yet another oil-rich Third World nation. If this looks familiar, it is something of a replay of Saddam Hussein’s Iraq in early 2003.

All vested interests aside, there are some facts and realities that are irrefutable and certain issues that cannot be ignored.

Among the facts is that Libya has seen the worst violence out of all the troubled states in North Africa and West Asia. This has involved virtually every political sector: government, military, opposition groups and the general public.

A fact that follows is that Libya is now embroiled in civil war, despite the denials of Col. Muammar Gaddafi and his aides. After defections in the military, civil service and government departments, elements of a civil war were confirmed with the attacks by Gaddafi forces on rebel troop outposts.

However, the fighting consists largely of sporadic exchanges of gunfire apart from a few aerial attacks on munitions dumps by government forces. Fighter jets for example have hit military stores in Ajdabiya in the east and Rajma to the south.

Gaddafi has denied such reports, while Western sources tend to overplay them. Undeclared interests on each side are in evidence yet again.

Another fact is that Libya’s oil production has been cut by half, which amounts to just 1% of world output. A feared oil crisis resulting from Libya’s troubles has not happened and may never occur.

Pressure on Gaddaffi to expedite his own exit is being applied mostly by the US and Britain. The US-UK axis has much to gain from a Western-friendly post-Gaddafi Libya, along with their ally Israel.

Among the realities is that neither Gaddafi nor his Western opponents possess the moral high ground. The Libyan people opposing Gaddafi know too well what happened in Iraq, and hope Libya will avoid a similar fate.

Add to this the reality that the spiralling violence cannot possibly end in the favour of “M. Gaddafi and Sons,” militarily, politically or diplomatically. There can no longer be “business as usual” whatever happens in the following days and weeks.

The situation continues to worsen in heading for the inevitable showdown. Yet however serious the consequences, they are an internal matter for the country requiring domestic political solutions.

Another reality is that parts of the country continue to ebb and flow between the government and its opponents. There is no clear distinction in territorial control, adding to an already murky situation.

A basic reality that the government needs to accept is that the official institutions of state are broken. They can no longer sustain, much less protect, Gaddafi’s hold on power.

Among the issues is that there is still no basis for anyone to claim global oil shortages or to act accordingly by raising prices. With countries like Saudi Arabia pledging to raise production to offset any shortfalls, self-seeking claims of a global crisis are premature if not spurious.

Politically, there is no clear successor to Gaddafi once he quits the scene. The situation is not unlike Egypt’s, where a shapeless revolution is aimed primarily at removing an incumbent rather than installing a successor.

In the interim confusion, Gaddafi has played the al-Qaeda card and indicated that allowing his government to fall could permit the influx of Islamist extremists. His authoritarian regime brooked little opposition, but his formula of an “Islamic socialism” also kept out militants.

As Western intervention looms, the question is whether a new Libya will be like Iraq, busy with mayhem and militants, or like Afghanistan, where an ineffectual government oversees little other than the prospect of more mayhem and militants.

'Chindia' rule the world in 2050?

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Will 'Chindia' rule the world in 2050, or America after all?

Economies of China & India will be 4 times as large as the US

With a small tweak in assumptions and the inexorable force of compound arithmetic, Citigroup and HSBC have come up with radically different pictures of what the world will look like in 2050.

US President Barack Obama meets China's President Hu Jintao in London in 2009. Photo: REUTERS

By Ambrose Evans-Pritchard, International Business Editor 10:05AM GMT 28 Feb 2011

Which of the two is closer to the mark will determine whether the West hangs on, or disappears as a relevant voice in global affairs.

For neo-Spenglerites - who believe the West is finished - Citigroup’s Willem Buiter offers some astonishing projections. The Muslim powerhouse of Indonesia will alone match the combined GDP of Germany, France, Italy, and Britain by mid-century.

The economies of China and India will together be four times as large as the United States, restoring the historic order of Asian dominance before Europe’s navies burst on the scene in the 16th Century. Panta Rei, says Dr Buiter: all is in flux; nothing will remain the same.

Africa will at last emerge from its long string of disappointments to take the baton as the fastest growing region, clocking 7.5pc a year over the next two decades.

It does not require miracles of performance for this to occur. Catch-up countries merely need to keep reforms on track, open markets, “don’t be unlucky, and don’t blow it”, and let convergence theory do the work for them.

Having rid themselves of calamitous nonsense – Maoism, the Hindu model, and other variants of central planning or autarky – and having at last achieved a “threshold level” of law and governance, nothing should stop them, or so goes the argument.

“Sustained growth prospects in per capita incomes across the world have not been as favourable as they are today for a long time, possibly in human history.” Global growth will quicken. GDP will quadruple again from $73 trillion to $378 trillion by 2050 (constant US dollars).

Dr Buiter’s team adds the usual caveats: “beware of compound growth rate delusions;” or “the bigger the booms, the more spectacular the bubbles, and the devastating the busts;” or indeed that “convergence is neither automatic, nor inevitable. In history, it has been more the exception than the rule.”

Argentina is a salutary lesson. Why did it diverge from its sister economy Australia, so similar in trading patterns in the late 19th Century? Why did it fall from the world’s fifth richest in per capita terms in 1900 to a third of Australia’s level a century later?

It is hard to pin-point where the rot began, though Peron clinched decline by bleeding farm wealth to fund his populist patronage, and by forcing the central bank to print the shortfall. Bad policies hurt.

Oddly, Britain will scrape through in Citigroup’s global reshuffle, just holding on as the world’s 10th biggest economy in 2050, the only EU state left in the top ten. It will even overtake the US in per capita terms.

Can this be so? Britain has slipped to 25th in reading, 28th in maths, and 16th in science in the Pisa rankings. Shanghai’s school district takes top prize across all three, ahead of Korea and Finland. While the UK faces a less disastrous ageing crisis than much of Europe, this is thanks to our unrivalled leadership in unwed teenage pregnancies.

HSBC’s report also sketches an era of unparalleled prosperity, yet the West does not sink into oblivion. China overtakes the US, but only just, and then loses momentum.

Chimerica, not Chindia, form the G2, towering over all others in global condominium. Americans prosper with a fertility rate of 2.1, high enough to shield them from the sort of demographic collapse closing in on Asia and Europe. Beijing and Shanghai are 1.0, Korea is 1.1, Singapore 1.2, Germany 1.3, Poland 1.3, Italy 1.4 and Russia 1.4.

Americans remain three times richer than the Chinese in 2050. The US economy still outstrips India by two-and-a-half times. This is an entirely different geo-strategic outcome.

My own view is closer to HSBC, perhaps because my anthropological side gives greater weight to the enduring hold of cultural habits, beliefs, and kinship structures, and because of an unwillingness to accept that top-down regimes make good decisions in the end.

Both studies rely on the theories of Harvard economist Robert Barro, but differ on how easy it is to handle population collapse. The great unknown is what rapid ageing does to creative zest, and how many decades it takes to turn the demographic super tanker.

China’s workforce peaks in absolute terms in four years. While the population keeps growing until the tipping point in the mid 2020s, it is ageing very fast. Hence warnings by Chinese demographers that there may soon be an epidemic of suicides, as the elderly step out on the ice to relieve the burden.

Zhuoyan Mao from Beijing’s Institute for Family Planning said China’s fertility rate had been below replacement level for almost twenty years. “Population momentum” turned negative over a decade ago in Beijing, Tianjin, Shanghai and Liaoning, but the countryside is catching up. “The decline speed in rural areas is faster,” he says.

It is bizarre that China should still cling to the one-child policy, though Shanghai’s local authorities have been encouraging couples to have a second child since 2009. The policy is losing its relevance at this stage, though gender picking (female infanticide, at the ultrasound stage) has left the legacy of a male/female ratio of 1.2 to 1, with all that implies for social stability.

China’s fertility rate is collapsing anyway for the same reasons as it has collapsed in Japan and Korea – affluence, women’s education, later pregnancies that stretch generations, in-law duties, and costly housing. You cannot reverse this with a wave of the wand. The lag times can be half a century.

George Magnus, UBS’s global guru, writes in his book “Uprising” that China faces a “triple whammy of ageing”. The number of children under 14 will fall by 53m by 2050; the work force will contract by 100m; and the over-60s will rise by 234m, from 12pc to 31pc of the total.

Mr Magnus is scathing about the “muddled thinking” of those who fall for BRICs hysteria, or who succumb to the facile conclusion that the global credit crisis finished the West and served as catalyst for a permanent hand-over to Asia.

The crisis also exposed the fragility of Asian mercantilism, even if this has been disguised for now by a stimulus blitz in China that has pushed credit to 200pc of GDP.

I might add that China is depleting the non-renewable aquifers of its northern plains at an alarming place, and faces a separate water crisis from receding Himalayan glaciers.

Cheng Siwei, the head of China’s green energy drive, told me a few months ago that eco-damage of 13.5pc of GDP each year outstrips China’s growth rate of 10pc. "We have an intangible environmental debt that we are leaving to our children," he said. That debt is already due.

Perhaps the 21st Century will be America’s after all, just like the last.

Related Articles

• Growing out of control? China by numbers  08 Feb 2011

• Oil 'could hit $220 a barrel' 23 Feb 2011

• Obama tests bond markets with mega-deficits 14 Feb 2011

• China lowers growth targets 27 Feb 2011

• IMF fears civil wars as inequalities worsen 01 Feb 2011

• Egypt and Tunisia usher in the new era of global food revolutions 30 Jan 2011

US stays the top Investor in Penang

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GEORGE TOWN, Feb 28 (Bernama) -- The United States (US) remains the top investor for Penang with RM7.9 billion in investments last year.

Chief Minister Lim Guan Eng said Penang had recorded Foreign Direct Investments (FDIs) totalling RM10.5 billion in 2010.

"We are proud of the American presence here as 75 per cent of the state's FDI is from the United States," he told reporters after the courtesy call on him by the United States Ambassador to Malaysia, Paul W. Jones, at his office at the Kompleks Tun Abdul Razak (KOMTAR) on Monday.

He said among the top two foreign investment companies from the US in Penang are leading data storage maker, Western Digital Corp and electronic solutions firm, Jabil.

"Penang had the highest total capital investments in manufacturing projects in Malaysia last year at RM12.2 billion with Western Digital Corp contributing about RM4.3 billion while Jabil had RM2.3 billion," he added.

He added that from the early 80s until 2010, the state had attracted about RM26.4 billion in US investments.

Based on figures from the Malaysian Industrial Development Authority (MIDA), Penang's RM12.2 billion in total capital investments in 2010 was a 465 per cent increase from 2009.

Jones said he is proud of the partnership between Penang and the US.

"We are proud that American businessman are still continuing to invest in Penang significantly and also in terms of health and education," he added.

Last year, Malaysia's electronic and electrical sector attracted the highest US investments of RM10.2 billion, followed by the machinery and equipment sector at RM496 million while that for scientific and measuring equipment attracted RM61.7 million.

-- BERNAMA

Big pay hike!

Professionals and top execs set for huge increments
By JOSHUA FOONG  joshuafoong@thestar.com.my

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PETALING JAYA: Professionals from the information and communication technology (ICT) sector, accounting and finance industry, banking, logistics and sales have a lot to cheer about this year – their salaries are set to rise by as much as 30% compared with last year.

The Robert Walters Global Salary Survey 2011 for Malaysia has revealed that a wage increase of between 5% and 30% would sweep across these industries this year, partially influenced by inflation rates and market conditions.


The take-home salaries could, in fact, be much higher as these figures are exclusive of bonuses, other benefits and allowances.

Highly-qualified employees with five to 10 years’ experience are expected to benefit from this salary increase as firms in these industries are scrambling to hire and retain the best talents.

“The job market has gradually moved to become more employee-driven. Some firms are even willing to offer premiums to attract good local and foreign talent with niche skills,” Robert Walters country manager Sally Raj told The Star yesterday.

“Salary reviews can range from 5% to 15% depending on market conditions.

“The real jump in salary scale can be seen among sought-after talent – going from 10% to 30%,” she said.
For example, a 29-year-old top investment banker with some six years of working experience can earn up to RM180,000 per annum on his basic salary, she added.

Robert Walters, which has a presence in 20 countries, is among the world’s major professional recruitment consultancies. It is to release the findings of the survey today.

According to the survey, the banking sector will see the biggest salary boom as the wage bracket for investment bankers with five to eight years of work experience increased from RM180,000 to RM288,000 per annum this year, compared with RM157,000 to RM240,000 last year.

Private equity bankers with the same number of years in work experience also saw their salaries upped from RM160,000 to RM264,000, compared with RM126,000 to RM240,000 last year.

In the ICT industry, software, voice and network engineers are expected to see up to a RM5,000 increase in their annual earnings and business application specialists, up to RM10,000 this year.

In the accounting and finance sector, cost controllers and auditors may stand to earn up to RM10,000 more while wages for account managers in charge of taxation and pricing may make some RM20,000 more.

Malaysian Employers Federation executive director Shamsuddin Bardan said while the average wage increment was expected to be around 5.5%, sectoral increases would be evident as these key industries had been given emphasis by the Government.


“Talents, especially in the 12 National Key Economic Areas (NKEA), will be in demand,” he said.

National ICT Association of Malaysia (Pikom) chairman Wei Chuan Beng said the ICT sector, which is one of the NKEAs, would see expansion with demand for highly-qualified and experienced talents to grow rapidly.

The Malaysian Institute of Accountants (MIA) estimates that about 2,500 locally-recognised accounting graduates with an estimated 1,200 members of professional accountancy bodies recognised by the Accountants Act will join the workforce this year.

“Present development which is taking place in various industries, especially changes and development in corporate governance, tightening of accounting regulations, pressure of globalisation and technology advancement across industries are contributing factors towards this trend of expansion,” the MIA said in a stateme