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- Info-tech houses seek safer investments -

Hi-tech companies across Europe are facing the same problem: how to sustain business in a wavering market. ICT (information, communications and technology) firms, whether they are specialist or offer a broad range of services, are being forced to adjust quickly as the new economy slows. The main reason is that European telecoms companies are delaying investment as they are saddled with huge debts as a result of bidding for 3G (third generation) mobile licences and facing the cost of building networks. Tom Rusting, chief executive of Anglo-Dutch firm CMG, which provides business information services and wireless data solutions, says: “Telecoms companies will increase investments in short message services (SMS) because they would be crazy not to. The service is one of their best money-making options, and you can see the impact of lost revenues very quickly when operators fail to upgrade.” In April, the firm entered a global alliance with Openet Telecom. This positions the latter’s convergent mediation software, FusionWorks, as one of the key components of CMG’s next-generation billing solutions. FusionWorks is the preferred component for providers of 3G mobile and broadband because it enables the billing of voice, data, entertainment and other content-based services. CMG has already integrated FusionWorks with its Wireless Service Broker system and demonstrated real-time mediation and billing based on the volume of downloaded data and content for mobile users. Mr Rusting is optimistic that the European ICT market will expand.

“Mobile penetration is high and SMS is widely used. The real revolution has not begun yet,” he says. “The sim card in a cellphone could be used as a credit card, effectively replacing traditional ways of payment, and the mobile internet is likely to explode with the introduction of next-generation technology.” Sweden is generally regarded as the birthplace of mobile internet technology and players in the market can rely on world-leading companies such as Ericsson. The firm recently signed a contract with Swedish-based Aspiro, which offers a wide range of solutions from pre-packaged portal services to industry-specific solutions. Ericsson will distribute Aspiro’s services as part of its mobile portal, WISE. Over the past year, Aspiro has increased its customers from five in three countries to 40 in 10 countries, and has expanded its portfolio of products from 25 to 180.

Chief executive Lena Wittbjer says Aspiro’s June flotation on the Stockholm bourse brings with it “an assurance of quality and thereby greater trustworthiness among customers, suppliers, retailers and the financial market”. And Halebop, launched in May 2000 as an independent wireless web portal, began a collaboration earlier this year with Swedbank, Sweden’s leading internet bank. Halebop chief executive Roland Svensson says: “Sweden has become a mature market when it comes to the internet and the adoption of new technologies.”