IT PRO News roundup: Ofcom delays 3G auction, LogicaCMG dumps CEO, Microsoft cancels major user conference
A busy Bank Holiday Monday in the world of technology as the UK telecoms regulator bows to pressure from mobile phone network operators and delays plans for a cut-price auction of leftover 3G wireless spectrum, IT services company LogicaCMG parts company with its chief executive following a damaging profits warning and shareholder unrest, and software giant Microsoft cancels its biggest and most important user conference as Longhorn Server slips into 2008.
Ofcom postpones cut-price 3G spectrum auction
The existing five licence holders - comprised of the four existing GSM or 2G mobile phone network operators and newcomer 3 - paid a total of ₤22.5 billion for their spectrum licences at the height of the technology boom in 2000. The five organisations argue that allowing another operator to gain a 3G licence for a fraction of the cost each of the five paid would create unfair competition.
An Ofcom spokesman told The Times newspaper: "It is the biggest auction we are planning to do and [we] want to make sure we consider everyone's responses."
The auction, originally planned for later this year, will now be delayed until at least the middle of 2008.
LogicaCMG ousts chief executive following profits warning
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Martin Read has been at the helm of the business for 14 years, but the combination of a downturn in business in the IT services market, a lacklustre acquisition strategy and fierce competition from foreign rivals such as Indian-based Wipro and Infosys has seen the company and its share price struggle and his position questioned by some shareholder groups. LogicaCMG shares worth ₤20 each two years ago are now worth just ₤1.80 each. Earlier this year the company raised 265 million in cash by selling its SMS text messaging business to a private equity buyer in order to return 130 million to investors through a share buyback.
Read will remain with the company until a successor is found.
Microsoft cancels major trade show
The Professional Developer Conference (PDC), usually held every two years, was due to take place in Los Angeles at the beginning of October.
"As the PDC is the definitive developer event focused on the future of the Microsoft platform, we try to align it to be in front of major platform milestones," the company said in a post on its developer web site.
PDC has traditionally been used to preview major forthcoming technologies to press and developers, but with delays to its Windows Server 2008 (Formally known as Longhorn Server) product and no other major releases in the works this year to coincide with it, the event was at risk of becoming a damp squib. No new date has been announced, with the company instead trying to encourage developers and IT managers that would have bought PDC conference passes costing thousands of dollars each to other events it is running in the US and Europe.