BT targets DiData?

Microsoft's billion-dollar patent infringement fine dominated the international ICT market last week. At home, the speculation that British Telecom Group may acquire Dimension Data has been avidly embraced following the publication of articles in the British media.

* A US federal jury ordered Microsoft to pay $1.52 billion to Alcatel-Lucent for infringing patents on a fundamental technology for digital music. This judgement means that many other companies could be liable for using the popular MP3 format.

* Excellent interim numbers from Pinnacle Technology, with revenue and profit both up over 85%.
* Good 10-month figures from IFCA Tech Group.
* Good interim figures from African Cellular Towers, with revenue up over 20% and profit up over 50%.
* Satisfactory interim numbers from Business Connexion, with revenue slightly up but profit up over 50%.
* A positive trading update by Metrofile Holdings.
* The Constitutional Court dismissed Telkom's appeal on its litigation with Telcordia.
* The government announced it would switch all departments over to open source software.

* A consortium led by Wataniya International formed Sprint Nextel Middle East to serve the Middle East and Northern Africa.
* Bill Hoggarth, SA country manager for SAS, was made responsible for SAS's MEA region.
* Econet acquired Eskom's stake in Telecom Lesotho.
* Kuwait's MTC, the owner of Celtel, plans to invest $10.5 billion in Africa this year through an expansion of Celtel's operations on the continent.
* Gateway Communications will launch a pay-TV service in the African market.

A US federal jury ordered Microsoft to pay $1.52 billion to Alcatel-Lucent for infringing patents on a fundamental technology for digital music.

Paul Booth, MD, Global Research Partners

* Sonaecom SGPS SA, a Portuguese telecommunications group, increased its offer for Portugal Telecom. The company's board has already rejected the offer.
* UK's Zergo, a mobile platform developer, plans to spin off its m-commerce subsidiary, Broca.
* Cisco acquired Reactivity, a developer of XML security, performance and availability technology.
* SAP purchased Pilot Software, a provider of strategy management software.
* LogicaCMG sold off its telecoms messaging business.
* A negative result warning from NEC.
* Planned IPOs from Dual Holdings, a provider of payroll and communications services; Proservia, a French IT services provider; Redknee Solutions, a Canadian-based telecoms software group; and Xchanging, a BPO company.

* Netherlands-based IT services company Ordina NV may take over Getronics NV.
* A possible flotation on the LSE by Sophos.

* Global server revenue grew 2% in 2006 to reach $52.7 billion, says Gartner.
* Worldwide SMS revenue is expected to reach $67 billion by 2012, according to Portio Research.

* JSE All share index: Up 1.1% (highest-ever weekend close)
* Nasdaq: Up 0.8% (highest weekend close for over five years)
* Top SA share movements: Alliance Data (-8.6%), Beget (-25%), ERP.com (+8.7%), FoneWorx (+8.3%), Infowave (-9.3%), Labat Africa (-20%), Stella Vista (-25%), Vestor (+60.9%) and Zaptronix (+16.7%).
* Top international share movements: Brightpoint (+21.8%), Elcom International (-30%), MIDGARDXXI (+300%), Opta (-95.8%) and Verigy (+25.1%).

My research into the value of the South African ICT market in 2006 suggests it is about R55 billion, a number not too dissimilar to that reached by BMI-TechKnowledge. However, according to an article in Business Report last week, the number is estimated to be R120 million and is coupled with a growth rate of 10%. I wonder who dreamed up these figures? Apart from the overall number being over 100% out, even the growth rate is substantially more than has been suggested by other parties, ie between 7% and 8%.