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TELECOM

Sony cuts Sweden workforce by 15 percent

Sony said Thursday it would chop 15 percent of the workforce at its struggling mobile phone unit and move its headquarters to Tokyo from Sweden as the Japanese consumer electronics giant slashes costs.

Sony cuts Sweden workforce by 15 percent

The move to cut 1,000 jobs at Sony Mobile Communications comes about six months after Sony bought Swedish telecom company Ericsson’s share in their former joint venture, called Sony Ericsson, set up in 2001.

The joint venture struggled to launch popular smartphones amid stiff competition from rivals including Apple and South Korea’s Samsung Electronics.

On Thursday, Sony said the job cuts in Sweden, expected to be completed by 2014, were part of a bid to “increase operational efficiency, reduce costs and drive profitable growth”.

“We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings,” Sony Mobile chief Kunimasa Suzuki said in a statement.

“A more focused and efficient operational structure will help to reduce Sony Mobile’s costs… and bring the business back to a place of strength.”

Sony, which makes PlayStation game consoles and Bravia televisions, has already said it would cut about 10,000 jobs worldwide and spend nearly $1.0 billion on an overhaul that its chief Kazuo Hirai described as “urgent”.

The Japanese firm lost a whopping 456.66 billion yen ($5.81 billion) in the year to March, its fourth consecutive annual loss.

It also reported a widening loss in its latest quarter and cut a profit forecast for the year as the struggling firm overhauls its business.

The losses have been particularly acute in Sony’s television business. Japanese electronics firms have been hurt by a strong yen, shrinking profit margins and stiff competition from foreign rivals.

Piracy has threatened its music and film assets while Sony was also hurt by

last year’s quake-tsunami disaster in Japan.

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TRANSPORT

‘We’re running late on this’: Deutsche Bahn promises better Wifi on German trains by 2026

German rail operator Deutsche Bahn has vowed to address what is widely considered to be one of the weakest areas of the country's telecommunications network: internet on trains.

'We're running late on this': Deutsche Bahn promises better Wifi on German trains by 2026
A Wifi hotspot sign is displayed on the side of a German train in Hamburg. Photo: picture alliance / dpa | Rainer Jensen

Deutsche Bahn chairman Dr. Richard Lutz made the promise in a press conference on Wednesday, where he announced a new partnership with German telecommunications operator Deutsche Telekom to improve the Wifi on trains by 2026.

“Trains are not just a means of transport to our customers – they are an office, conference room, and place to relax all at the same time,” he said. 

“To do all that, our passengers rightly demand that there be gap-free coverage with the mobile communications network. We are now laying the foundations needed to achieve this.”

He appeared together with the CEO of German telecommunications operator Deutsche Telekom, Tim Höttges, and the Minister for Transport, Andreas Scheuer (CSU), in the Bahn’s headquarters, high above Berlin’s central train station.

Deutsche Bahn’s rail network covers a total of 33,400 kilometers, 7,800 kilometers of which are major routes which are used by all ICE trains as well as main IC trains.

READ ALSO: Delayed train? Germany’s Deutsche Bahn to give online refunds for first time

Deutsche Telekom wants to supply these major routes with fast broadband by the end of 2024. 

By 2025, the company aims to supply another 13,800 kilometers of heavily-travelled routes – used by more than 2,000 passengers daily – with consistently fast Wifi.

The rest of the train operator’s routes should then be competed by 2026.

A “radical improvement”?

The patchy signal along Germany’s railway networks has long been considered one of the weakest areas of the country’s telecommunications network.

In 2015, the government insisted that the networks take action to improve the poor Wifi network on trains by 2019 – but the operators continue to drag their feet.

According to a report by the Federal Network Agency, there are around 550 fewer antennas near railway tracks than are needed to provide consistent service.

In his opening conference remarks, Höttges expressed his discomfort at returning to the age-old topic: “We’re running late on this, I’m fully aware of that,” he told journalists. 

Also attending the press conference, Minister for Transport Andreas Scheuer welcomed the new partnership.

READ ALSO: This new European high-speed rail network will take you from Vienna to Berlin in four hours

“The time of ‘I have no network’ must come to an end,” he said. “Mobile surfing and telephony must be possible everywhere and at all times.” 

Though the proposed changes are set to take another five years to be completed, Deutsche Bahn and Telekom described the plans as a “radical improvement” on the current situation.

Vocabulary

Wifi access – WLAN-Zugang

Railway lines – (die) Bahnstrecken or (die) Bahnstrecke 

Connection – (der) Anschluss

Dead zone – (das) Funkloch

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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