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Paolo Gorgo on Hutchison Whampoa's “3” Italy customer (dis)service Good luck. We settled out of court, but they st...
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Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.
View Paolo Gorgo's Instablogs on:
Estimate A Company’s CDS (Risk Indicator)
Ploutos recently published a very interesting article here at Seeking Alpha:
Credit Default Swap Spreads And S&P 500 Constituents
The article goes on examining what CDS Spreads may mean for investors, why they are important while evaluating a business risk profile, and even why an increasing CDS Spread may be good news for shareholders, and bad news for bondholders, under special circumstances.
Private investors, unfortunately, face a harder time when looking for CDS data.
At Sticky Trading, we resumed a few links which might be helpful to everybody:
Additionally, we'd like to draw your attention to an easy tool (available for the iPhone) to estimate a company's CDS, from its senior bonds prices.
More info are available on our FAQ, including some comments on how CDS may be translated into "risk neutral probability" of default, why these numbers differ from "real world" possibilities, and why "cumulative probability of default" are scary even at relatively low CDS spreads…
Comments very welcome - we believe the topic deserves more attention, as private investors try to get a better understanding of risk and search for ways to reduce their disadvantage to institutional investors.
Disclaimer: this instablog is about a commercial product, Bond Calc, I've developed with a few partners at Sticky Trading
Immersion Corporation: New License Agreements and New Products Launched at Mobile World Congress 2011
A couple of press releases recently issued by the company, and some indirect confirmation of new products, launched at MWC 2011, that will contribute to its future royalty stream make it probably useful to update Seeking Alpha's reader about Immersion Corporation's (IMMR) latest developments.
On February 11, Immersion announced a licensing agreement with Bayer MaterialScience AG, a haptics technology provider with its affiliate Artificial Muscle.
Artificial Muscle describes itself as a manufacturer of actuator and sensing components based on a proprietary platform called Electroactive Polymer Artificial Muscle (EPAM). EPAM technology offers, according to the company, significant advantages over traditional technologies used to provide movement.
Here is a quote from their presentation:
On several occasions, Immersion's management team has been asked if there is any kind of competition for its IP. The company has always addressed this question saying that “no haptic” is the only real choice that customers are facing if they want to integrate a decent haptic effect into their products – a way to say that there is no other real competitor in the market.
Artificial Muscle was probably one of the new players emerging in the market behind these questions. This license agreement seems to confirm that Immersion's IP is needed to support their technology proposal, and bodes well for other similar situations.
Yesterday, Immersion announced that Alps Electric Co., a leading global components manufacturer, has extended and expanded its license to Immersions TouchSense haptics technology. The license was due to expire in 2012, and has now been extended through 2016, with a broadened coverage.
Alps is a premier supplier of automotive systems to some of the world's most important automotive brands. It is interesting that the previous agreement wa due to expiry exactly at the time when Visteon Corporation (VC) plans to introduce its haptic control panels, also licensed from Immersion.
Immersion's business model, based on royalties deriving from the sale of products incorporating its technology, makes it necessary to track any new development from its major partner. It is reassuring to notice that even the latest MWC, held in Barcelona, seems to bode well for the future.
Immersion Corporation recently updated its partner news page, whose read is always an interesting way to get an insight into of the launch of new products.
As Mobile World Congress 2011 recently came to an end, there are several new haptic phones/tablets that deserve being mentioned and whose success might positively impact Immersion's future revenues.
Let's have a look at some of these partners' product launches, after reminding our readers that royalties are reported in the following quarter after a product has been sold/shipped, so that if you are trying to model the impact on revenues of a new device, it is safe to add at least a quarter to its official launch date.
Samsung (SSNLF.PK) introduced at least two products that were positively received at MWC: the Samsung Galaxy Tab 10.1 and the new Galaxy S II phone.
Here are some of the articles quoted by Immersion, starting with fonehome UK, that describes the new Tablet as an “iPad beater”:
Engadget has also a very complete review of the device, including a nice video. We also get some information about the product launch:
CNET runs an extensive review of the Galaxy S II, including its main improvement over the previous model:
LG (LGERF.PK) launched one of the mobile phones that attracted the most attention in Barcelona, the Optimus 3D.
Here is a quote from Anandtech's review of the device:
Android Headlines has more information about the launch date:
For those of you who might be interested, there is a complete review of the LG Optimus 2X at Engadget, which you may read at this link.
Disclosure: I am long IMMR.
Hutchison Whampoa's “3” Italy customer (dis)service
A true story, unfortunately, happened to me during these past Christmas holidays, still unresolved.
More funny, if you consider that I follow the colocation niche, within the Telecom sector, where a one minute outage is considered a disaster, and all players are maniac about 100% service availability.
Customer service is the provision of service to customers before, during and after a purchase. (from Wikipedia).
Hutchison Whampoa Limited, listed in Hong Kong, is a leading international corporation committed to innovation and technology, with interests spanning the globe. The Company has five core businesses – among them, Telecommunication.
One of its major subsidiaries is, for example, Hutchison Telecommunications International Limited, listed in New York under the ticker HTX. In Europe, Hutchinson Whampoa is present in several markets with the brand “3”, having acquired licenses to operate 3G mobile networks .
In Italy, the brand “3” has been operating since 2003. Hutchinson controls about 95% of the local Company.
In December 2008 I became a customer. I chose a Blackberry subscription, where I was offered a subsidized phone in exchange for a commitment to a 24 month plan (€50 plus taxes a month, slightly shy of $80 including taxes).
Last December 15 I received a sms (short message) advising me that the service was going to be interrupted on December 21. Quite strange. I do pay my bills. A phone number was included for more information.
I called the 800 number, and had the pleasure to talk to a lady who was probably answering from an Eastern Country, given her accent and her poor understanding of Italian (I must admit we are not really used to Companies outsourcing these kind of services in my Country, and it sounded odd).
I got as an explanation that it was a mistake, and several other people were calling for the same problem. I kindly asked to open a ticket, to avoid any future problem. “Yes, I'll do”.
On December 21, the service was suspended. I tried to write to the customer service on the Internet, but the site was basically unavailable (it would be the same for several days).
I went to the local “3” shop on December 23. The gentlemen called the special service line for the franchisee shops and got as an explanation that my subscription had been associated with a “test” USIM (SIM card) that was due to expire (it was explained to me that it was a “try and buy” card that the Company was using as a way to gain customers, offering a free service for a limited period of time). He suggested I had to sue the shop that sold me the subscription associated to the wrong card (it happens that I bought it at the flagship Company owned store in central Bologna, the major city in my region).
To cut a long story short, he gave me a new USIM card, which was apparently necessary to allow “3” to reactivate my old number on it. To get it free of charge, I had to put it under an equivalent contract, in price, which was obviously not meant to commit me for another 24 months – however that was apparently the only way to get around the problem, and I signed it. No mention of when I could get my old number working again, and a “god luck contacting the customer service” as “arrivederci”.
I contacted again the 800 number, where I had the nice opportunity to talk to a few more nice ladies with the same problem – poor knowledge of Italian, not a clue as to what to answer. I was finally given another customer service number, which soon converted into a paid number. I did call, and had to do it several times. After a one hour wait, someone answered.
I was given a fax number to open a ticket. Obviously everybody has a fax machine at home, according to “3” Italy. I wrote a few lines explaining the problem, and asked for someone to contact me in order to understand if and when the problem could be solved.
I resent the fax a few days later, as no-one was answering. Christmas had gone by, in the meantime, and nobody could contact me at my phone number – I obviously lost, and couldn't answer to, a lot of short messages with season's wishes, which are quite usual in Europe between friends/people you know. I certainly looked rude to many people. More important, my phone number is also associated to several services like alerts for credit card use, etc. I crossed my fingers.
I finally got a phone call from someone at customer service. Exciting. I explained once more the problem. Asked for an email. Here it is:
>>Dear Sir,
further to the ticket you opened on December 28 (I opened it on December 23, and sent it again on December 28, by the way...), we inform you that your USIM card is a test card and will be disconnected in the next few days.
If you want to recuperate your number, you'll have to activate a new USIM card and ask for a transfer of your number. <<
I won't comment about the fact that it's all info I knew already, with no real solution to the problem.
I'll also try to cut it as short as I can – I had several other communications, all with the same “tone”: never an apologize for interrupting the service, and it sounds like it's my fault that I do want to keep my phone number, so giving poor “3” to deal with trouble. But the best is still to come...
I take a half day off and hit the road toward Bologna and the "3" owned flagship shop that sold me the subscription. It's about 30 miles, I park in the outskirts, and walk downtown (you can't go by car). I luckily stumble into the same lady who sold me the plan, a year earlier, Federica. She gets all my anger, calls the dedicated line, she is explained that my subscription is associated with a test card, history repeats itself, with a change: she's sure she did not make any mistake.
To be honest, she's the only "3" employee who finally took care of my case.
As usual, they make me feel it's my fault I want to keep my old number. She gets a copy of my ID and Codice Fiscale (say social security number), which are necessary to try reactivate my number on the new USIM card. They have all these details on file, by the way, but they treat it like I'm a new customer who wants another subscription.
In the meantime I'm still writing to the customer service saying I won't accept paying for the period my service has been disconnected (I haven't used at all the new USIM, apart from contacting "3" customer service by phone, as they can check), and I want to know in writing when my contract expires (I don't want to get a new 2 year commitment starting with the new USIM, but keep the "old" one).
Federica reverts to me, a few days later. It seems they can reactivate the number. On January 13, at 2.23 pm. I get a sms on my phone: the number you requested is now active. Wow!
It happens that it's only the voice service, not the data one. I'm still fascinated, it only took about 3 weeks to reinstate the service I use the less. A phone call to thank Federica, she says data will follow in 24/48 hours. After 384 hours, as I am writing, it's still not active. No Blackberry service (the reason why I made the subscription), no Internet.
I also get a mail from customer service, the same day:
I'll resume it: they reply on January 13 to my mail dated December 30, and as to my request to put in writing the exact date the contract is going to expiry and that they will not charge me when the service was interrupted, etc., they answer that they need to TALK to me, and they have tried to contact me today but did not succeed...
To me, pure Kafka...
I immediately answer that THEY have just reactivated my old number, and can call me whenever they want, but the lady has never reverted back to me since.
Poor Federica is also the messenger of another news: as the service/subscription has been interrupted, they'll charge the Blackberry to my next bill. She also says they'll issue a credit note for the same amount, but she can't put it in writing. No answer (any doubt?) from the customer service I ask to put this info in writing. It also seems, according to Federica, that I am allowed to change phone provider with no further penalty, but as usual no-one will put this in writing. No news on the charges for the period I had no service. I assume they'll keep billing.
The last information Federica gives me is that this interruption of service was not related to the card she sold me, but effected 5,400 customers (I have no way to check if this is true).
Back of the envelop calculation: at an average subscription like mine, it's about $430,000, assuming the service has been interrupted to everybody for about one month, like in my case. Pocket money, I guess, for Hutchison Whampoa Limited. They can afford ignoring these few customers.
Last attempt: I try to log in on "3" - the site is finally working - to see what my subscriber's section is reporting about my data (expiry, bill, etc.). Here is what I find:
I just can't log in any more (they're smart, after all).
Just out of curiousity, let me report "3" Italy vision:
Mine, too.
Disclosure: No position