Tech Deals is a weekly column covering the latest deals in one of the busiest sectors for M&A. To read previous articles go to our Tech Deals page.
Apple may have kick started its Worldwide Developer’s Conference 2012 with a leaner, meaner MacBook Pro, deeper Facebook integration and a host of software updates, but the tech giant is still facing plenty of headaches in Australia as far as its last big product launch is concerned. That product is the new iPad, whose somewhat spurious 4G label, has got Apple into trouble with the Australian Competition and Consumer Commission (ACCC).
After months of debate, the ACCC has managed to add a major feather to its cap now that a penitent Apple has agreed to pay $2.25 million to atone for its 4G sins. It should be smiles all around at the regulator after sticking it to Google for false and misleading advertising in April it has now cut the mighty Apple down to size. But does the punitive action have more to do with sticking it to the tech giants and less about making any meaningful impact for consumers?
Well for one thing, the new iPad isn’t going to cost you any less. In March, Apple agreed to offer a full refund to those customers who thought they had been led astray by the 4G labelling, unsurprisingly, the queues of the disgruntled demanding their money back failed to materialise.
Then in May, Apple dropped the 4G branding in hopes that the measure would be enough to appease the regulator. As it turns out the ACCC was always going to get its pound of flesh and the question boiled down to how much. It’s a question that presently remains unresolved despite the meeting of minds between Apple and the ACCC, because Justice Mordecai Bromberg isn’t quite convinced that the penalty is appropriate. A ruling is now expected this week as Judge Bromberg pores over the financial information and sales figures for the period the device was sold with the 4G moniker and explores the technicalities that set 3G and 4G apart.
Judge Bromberg will need some help on the tech front because there is no clear definition of the term 4G. Telstra’s 4G network runs on the 1800MHz band and the IPad only runs on 700 MHz and the 2100 MHz bands. The existing HSPA networks in the country are actually faster than 3G but not quite 4G LTE, however, they do technically fall into the broad standard of 4G set by the International Telecommunication Union. Similar networks run by US carriers, AT&T and T-Mobile, are also labelled 4G.
Perhaps Apple’s biggest mistake was to defend the branding in the first place, given the current state of our 4G networks the tech giant probably shouldn’t have laboured the point and paid the fine. As for the ACCC, it’s an easy win while far knottier issues lay untouched. Taking Apple to task for misleading advertising isn’t quite as challenging as making the tech giants pay more taxes or lowering the exorbitant prices paid by Australians for tech.
Apple is no stranger to legal action – in fact it is a technique that it routinely utilises to attack rivals – and the fiscal penalty certainly won’t have an impact. At the end it all comes down to publicity – bad publicity for Apple and good publicity for the ACCC – however, will it hurt local sales of new iPad? Not on your life.
UXC transformation pays dividends
In other news, Listed IT services firm UXC has signed a $12 million three-year deal to provide the New South Wales government’s integrated transport authority, Transport for NSW with managed network services.
The new contract covers a range of services, including network management, help desk management, WAMN/LAN/WLAN management network business continuity and DR management.
The company is also working on a number of additional transformation projects at Hills Industires, GrainCorp and Toyota Australia
UXC is providing Graincorp with project management and finance system help, assisting Toyota Toyota with its SAP upgrade and is working with Hills Industries on a global Oracle JD Edwards template build and Fusion Middleware implementation.
The contract wins, worth a combined $34 million, are a clear sign that the company’s decision to consolidate its three IT infrastructure units – Integ Group, XSI Data Solutions and UXC Connect – under one banner and sell the Field Solutions Group for $61 million last year was the right one. The new look UXC’s focus on its core IT business mean that it has been able to better sell its core competencies and the proof is there for all to see.
Kondoot launches new website, Sophos extends ANZ presence
Social Live video network outfit, Kondoot Holdings Limited has launched a new website, which includes a brand new look and design.
The launch comes at a busy time for Kondoot, with the company is currently working on its new smartphone app which is due for release soon.
“It’s an exciting time for Kondoot at the moment. Not only have we just launched our brand new website, we are also working really hard on getting our new smartphone app ready,” Kondoot co-founder and executive director Mark Cracknell said.
IT security and data protection company Sophos has signed a new cloud partnership agreement with secure Infrastructure as a Service (IaaS) and cloud provider VMVault to provide security solutions to VMVault’s SMB Managed Services Provider (MSP) partners.
This is a brand new move for Sophos in the ANZ region and the company said the deal will allow the company to build on its growth strategy in the region.