Online sales boom over Christmas

Online shopping boomed across Europe and the US over Christmas as expected, but Internet retailers piled up heavy losses and …

Online shopping boomed across Europe and the US over Christmas as expected, but Internet retailers piled up heavy losses and goods were often delivered late. Online spending over the festive period was estimated at more than £3 million in Ireland, £200 million in Britain, slightly more in Germany and around £65 million in France. In the US the picture was similar, with Amazon.com saying fourth-quarter sales jumped more than 150 per cent from a year ago. Its heavy losses have easily matched the growth in sales, however. According to Ernst & Young, consumers shelled out between $10 and $13 billion between mid-October and the end of December. The company estimates that online retail sales reached $25 to $30 billion for all of 1999.

MS Licence: Microsoft Ireland has launched a licensing guide to educate and assist organisations in identifying and acquiring legal software. The guide defines the different types of software licences available, the cost savings associated with each and the huge disadvantages associated with illegal software.

Eircell Enhancements: Eircell says it has invested £3.5 million in voice-enhancement features on its GSM network. These include background noise reduction, echo cancellation and automatic volume control, which monitors voice levels from call to call, producing a consistent volume level.

Consumer Passions: A wristwatch that plays music, a 3-D television and an Internet microwave were among the gadgets on show at the Consumer Electronics Show in Las Vegas last week. Sales of consumer electronics are predicted to reach a record $85 billion in 2000 in the US, according to the Consumer Electronics Association.

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Quids In: A 17-year-old is set to become an Internet paper millionaire by floating his website for the Jewish community on the stock exchange. Benjamin Cohen, who set up www.JewishNet.co.uk 10 months ago with £150, planned the business during a four-year battle with the illness ME. The site carries a range of information on cultural and religious subjects and boasts an email agony aunt and a "cyber rabbi".

No Ban: China has denied banning Microsoft's Windows 2000 from government computers. The Ministry of Information Industry set the record straight after an official newspaper said the government had barred Windows 2000 to support domestic software. The Yangcheng Evening News said government departments would be ordered to use Red Flag Linux, an operating system developed by a government think tank.

Intel Favours Linux: Intel has announced plans to base a range of Internet access products around Linux rather than Windows. The chip giant plans to develop web appliances, using its Celeron processor, which will enable home users to access the Net without needing a PC. The company said its decision to use open source was driven by the needs of customers who helped develop the product so far.

Cracks 'R' Us: US crackers have formed a company to advise the world's largest banks and hospitals on how to keep their data safe. Members of L0pht Heavy Industries have set up a consulting company, AtStake, and claim that they have over $10 million in funding from venture capitalists.

MS Book: Microsoft and Barnesandnoble.com plan to sell paper-free books that can be read on devices using Microsoft's Reader software. The eBook initiative will provide Barnesandnoble.com's customers with access to thousands of eBook titles.

Two Billion Dollar Plan: The White House is to take action to protect US computer systems from crackers and viruses, including subsidising college for computer students who agree to work for the government. President Clinton is to seek $2 billion in the next federal budget for computer security.

Real Deal: RealNetworks has reached a deal with Universal Music and Sony that will allow a vast selection of digital music from Universal's extensive catalogue - including music by Dr Dre, Nine Inch Nails and Hank Williams - to be sold and played on RealNetworks' software.

Registering Mistakes: Hundreds of Internet addresses are being revoked in a sweep blamed on a software glitch that allowed people to register website names nearly identical to those already owned by major companies. For nearly a month a handful of the 23 companies selling Web addresses permitted customers to register names such as www.microsoft-.com for $60 each.

In Brief...Oracle has announced a two-for-one split of its outstanding shares of common stock. . . Newbridge Networks has won a $200 million contract to supply network equipment and service management to New Edge Networks, a provider of wholesale DSL services. . . Apple's chief executive Steve Jobs has dropped the "interim" from his title after two years. . . Shares in Gateway fell nearly 10 per cent last week after the computer maker warned that fourth-quarter earnings would miss expectations. . . eTel Group, the Irish owned corporate telecommunications company, has announced the completion of first-phase funding to accelerate the company's expansion plans in Central Europe. . . Piercom has announced a new secure credit card payment gateway, Self-Serve, designed to redress some problems with existing e-payment facilities. . .