'Prepare'에 해당되는 글 3건

  1. 2008.12.11 Slimmer Rio Leads The Way by CEOinIRVINE
  2. 2008.12.10 How to prepare for February's digital-TV switchover by CEOinIRVINE
  3. 2008.12.02 GM, Ford Prepare for Congress by CEOinIRVINE

Slimmer Rio Leads The Way

Business 2008. 12. 11. 04:38

As the miner cuts 14,000 jobs, its rivals will be preparing similar cost-cutting moves.

Rio Tinto's plans to cut 14,000 jobs and slash spending look dramatic, but similar moves can be expected from rivals like BHP Billiton and Anglo American, as miners are forced to adjust to the reality of a looming global recession.

Rio Tinto's "very realistic" plans to cut production or commodities like iron ore are likely to be followed by competitors such as BHP Billiton, said Damien Hackett, an analyst at Canaccord Adams. "Companies may of course handle the news differently. While some will announce a reduction in levels, others will lower production. You can't keep producing iron ore if there is no one to buy it."

He added that at a meeting with analysts within the past week, BHP had indicated that it would be following Rio's path of relying on its own permanent staff to save costs. "At the meeting, we were discussing cost reduction and they said that contractor jobs were going to be targeted."

Rio Tinto's (nyse: RTP - news - people ) rivals are unlikely to restructure quite as dramatically: Rio has a $39.0 billion debt mountain to contend with, built up through the acquisition of Canada's Alcan in July 2007. The company had planned to sell many of the Alcan assets even at the time of that takeover, and despite the current inhospitable economic environment, it will have to follow through.

"Others will cut costs but not in the same way as Rio," said Michael Rawlinson, head of mining research at Liberum Capital. Anglo American (nasdaq: AAUF - news - people ) will announce its plan for cost cutting on Dec. 17, while Xstrata will do the same at the beginning of the year, he added.

Rio announced Wednesday that it was axing thousands of workers and selling assets in order to tackle its hefty debt burden. (See "Rio Scrapes For Cash.") The dramatic downturn in the global economy since the collapse of Lehman Brothers in September and subsequent slide in commodity prices has forced the mining sector to adjust quickly. Several have already warned of the need to scale back production, but Rio's announcement on Wednesday is the first fundamental change to take place so far.

Investors seem to be welcoming the news as a sign that, starting with Rio, miners are finally accepting and adjusting to reality: Rio's shares soared by 11.6% on Wednesday morning in London, following its announcement, while BHP Billiton (nyse: BHP - news - people ) rose by 3.1%, to 11.93 pounds ($17.644).

Last month BHP Billiton announced it was walking away from its takeover bid for Rio, claiming it would have struggled to get good value for the assets it would have had to sell to satisfy competition regulators in Australia and Europe. (See "BHP Bails On Rio Tinto.")

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(CNET) -- Television as we know is about to change drastically in the U.S. in February when broadcasters switch solely to transmitting digital signals. And even though there are many benefits to this transition, there are also a few downsides.

On February 17, U.S. broadcasters will begin transmitting their TV signals only in digital format.

On February 17, U.S. broadcasters will begin transmitting their TV signals only in digital format.

Here's the lowdown on what you can expect from the new digital TV service, the good, the bad, and the ugly.

First, let's start with the good. On February 17, broadcasters throughout the country will flip a switch turning off their old analog TV transmitters, and they will begin transmitting their TV signals only in digital format. Over 90 percent of TV stations today already broadcast both analog and digital stations, which means that consumers don't have to wait until February to test and tweak their TVs to get digital TV.

For the most part, the switch to digital TV will benefit all Americans, regardless of whether they watch over-the-air TV.

Digital signals use wireless spectrum much more efficiently than analog signals, which is why the government mandated the switch in the first place. Congress set the February 17, 2009, deadline so that the government could free up wasted spectrum so that it could be used to build more robust emergency wireless networks, as well as provide the private sector with more spectrum that could be used to develop new wireless broadband services.

The government has already auctioned off most of the unused spectrum. And after February, service providers who won licenses in those auctions will be able to get to work building their next-generation wireless networks.

For over-the-air TV viewers, the switch to digital also has many benefits, including sharper pictures, better sound quality, and more content. Using analog signals, broadcasters can only transmit one channel of content at a time.

But with digital signals, broadcasters can transmit multiple channels at once. In fact, many broadcasters have already launched three or four separate digital channels, each carrying programming of interest to diverse communities. And because there is more bandwidth available, broadcasters are also transmitting some of these channels in high-definition.

In some cases if consumers have a high-definition TV, they'll even be able to get some HD channels for free. For example, all the major networks--ABC, CBS, Fox, and NBC--transmit some shows over the air in HD. This means that many consumers will be able to access HD content without subscribing to a pricey cable package.

"Digital broadcast will vastly improve free TV viewing," said Graham Jones, the director of communications engineering for the science and technology department of the National Association of Broadcasters. "All the networks are broadcasting in HD, and viewers can receive it for nothing. They don't have to pay a cent. And with modern receivers and antennas, reception is very solid."

Better for many, not all

But with the good, also comes some bad. Unfortunately, not everyone in every corner of the U.S. will experience all the great benefits of digital TV. Because analog signals transmit over longer distances than digital signals, some over-the-air viewers living in rural areas may find that they do not get all the same channels they were able to when they received analog TV.

This scenario is mostly true for people who already receive weak analog TV signals. For example, if someone generally gets a snowy or fuzzy picture using an antenna to receive an analog TV signal, there's a good chance that the viewer won't be able to receive the digital signal at all.

"Some people may have been able to put up with a poor analog signal, because the receiver still received the transmission, albeit in a fuzzy form," Jones said. "But if a digital signal is weak, the receiver can't decode it, and the transmission stops, which means people simply get a blank screen."

This is exactly what happened to some viewers in Wilmington, North Carolina, when the Federal Communications Commission and local broadcasters tested turning off their analog signals earlier this year.

Broadcasters have tried to compensate for this issue by boosting transmission power, but Jones said because digital and analog signals are broadcast at different frequencies it may be difficult to replicate broadcasts exactly, which means some people may be left without some channels they could have received with analog transmissions.

The issues won't be limited to rural consumers. Some city dwellers may also have trouble receiving certain channels. Even though people living in a city such as New York or Chicago will likely be able to receive strong digital broadcast signals, they could fall victim to other issues that preclude them from receiving certain channels further up the dial. The reason is simple. Channels broadcast at higher frequencies don't go around buildings or through walls as easily, and this could disrupt transmission.

Consumers may have to do a little research

But consumers shouldn't throw their hands up in defeat too quickly. With a little investigation and a few extra dollars spent on new equipment, even viewers in some challenging geographies could still receive a good quality digital TV experience.

So what's a consumer to do? First, consumers who rely on over-the-air broadcasts need to determine whether they want to keep their old analog TVs or invest in new digital or high-definition TVs. If a consumer keeps his old analog TV, the government is offering $40 coupons to help defray the cost of buying a digital converter box, which attaches to the TV and costs about $60.

These boxes essentially turn an old TV into one that can view digital signals. If he is already getting a good analog signal, he'll likely be able to keep the same antenna for the digital service. But if he was already getting a poor signal, Jones recommends upgrading to a better antenna.

But Jones also emphasizes that to get the best digital TV experience consumers should buy a new digital or high-definition TV. As of March 1, 2007, all television reception devices, which includes TVs, VCRs, and DVRs, sold in the U.S. have been required by law to contain a digital tuner. And with smaller HDTVs selling for as little as $400 or $500, high definition has also become an affordable feature.

But even with a new digital TV, Jones said that consumers will still need an antenna to receive the over-the-air signals. For help in determining which kind of outdoor antenna you might need, check out AntennaWeb.org. This is a Web site set up by NAB and the Consumer Electronics Association that allows consumers to enter their address and provide details about their immediate surroundings, such as how many trees or tall buildings are nearby, to help determine which type of antenna would be best.

Jones also recommends that before consumers buy a new antenna they try their old one first. Several retailers, including Best Buy, are offering workshops around the country to provide information to consumers. There is also information on the Web site DTVanswers.com.

And Jones suggests that consumers call their local broadcast stations directly to figure out in which direction they should point their antenna for the best reception. Local broadcasters will also be able to provide information about whether consumers are even within range to receive the new digital signal.

"There are some 1,700 broadcasters in the U.S.," Jones said. "The local stations will know better than we will how to help viewers in their specific region. So if people have questions, they should call their local broadcasters. And these broadcasters should be available and able to help them."

Several local stations have already set up hotlines for consumers to call. And broadcasters around the country have been "soft" testing the transition. During these tests, broadcasters turn off their analog signals. If consumers are still trying to view the channel using an analog TV, a screen will pop up where the program had been informing viewers of the deadline and how to get ready for the digital switch.

A bill passed in the U.S. Senate last week that would require some broadcasters to offer this information screen to viewers for 30 days after the February 17 deadline. The measure must still pass the House of Representatives before it becomes law.

But even if it does become law, Jones said that not every broadcaster would be able to continue broadcasting the message over its analog channel, because as of that date, new spectrum holders will have access to those airwaves. Instead, he has been encouraging viewers not to wait until the deadline to test their digital TV readiness.

"Broadcasters are already transmitting digital signals today," he said. "So there's no reason for people to wait until February to make their equipment tweaks and start benefiting from digital."

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U.S. automakers plan to reopen their union contract and may sell Saab and Volvo to the Swedish government as a way to pare brands

http://images.businessweek.com/story/08/600/1201_volvo.jpg

Ford said on Dec. 1 that it is considering selling Sweden-based Volvo, as the struggling U.S. automaker tries to survive the industry crisis. Joe Raedle/Getty Images

General Motors' (GM) board was meeting on Dec. 1 to review a plan that management hopes will persuade Congress to lend the company about $12 billion in public funds. Collectively, Detroit wants $25 billion in bridge loans. The plan includes moves that will cut executive pay, narrow the cost gap vs. Japanese carmakers, and review several of its brands for sale or cuts.

Sources say GM will tell Congress (BusinessWeek.com, 11/20/08) that it plans to reopen the labor agreement to negotiate a deal with the United Auto Workers that would narrow that cost gap. GM will also make a case that it is pushing hard to improve the fuel economy of its lineup. And it is looking at different strategic options for as many as four brands—Saab, Saturn, Hummer, and Pontiac. If any of them go away, namely Saturn or Pontiac, it would be done by slowly phasing them out over several years.

GM is trying to work out a sale of Saab, BusinessWeek has learned. For several months, GM has been shopping the brand to Chinese, Indian, and Russian carmakers, as well as to the Swedish government, sources familiar with the talks said. Saab Managing Director Jan Ake Jonsson and GM-Europe President Carl-Peter Forster have been leading the efforts to find a buyer, or at least get someone to take the company off GM's hands.

Taking a Loss

Meanwhile, Ford (F) said it is also willing to sell Swedish carmaker Volvo to raise cash while the company asks the U.S. government for a loan. Ford has been trying to sell Volvo for more than a year. It has even rejected an offer, says one industry source, from a Chinese automaker. Ford has wanted as much as $3 billion to $5 billion for Volvo, which it purchased from an independent holding company in 1999 for $6.4 billion. But both GM and Ford may now have to settle for a deal that pays them little in exchange for a majority stake by the Swedish government.

Part of the problem for both automakers is that members of Congress who are opposed to or reluctant to granting government loans to the automakers said in last month's Capitol Hill hearings that they were against any of the money going to overseas operations or jobs. As long as both Saab and Volvo are wholly owned and losing money (BusinessWeek.com, 5/6/08), the companies cannot make that promise.

Volvo will have about 18,000 employees by yearend, and it lost $458 million in the third quarter alone, as its sales declined 24%, to $2.9 billion.

In a statement issued on Monday, the Swedish government said it was willing to consider its options and was talking to the carmakers. "The Swedish government has to be worried about this," says David E. Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. "In the case of Saab, they won't want to lose that facility in Trollhattan [Sweden]."

GM has about 5,000 employees in Sweden, most of whom work in the Saab factory in Trollhattan, where the 9-3 and 9-5 models are built. GM has shelved plans to build the 9-5 at its plant in Russelsheim, Germany, since the brand's future is under review.



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