SDP to address Budget 2013 "shortcomings" in its own "Shadow Budget"






SINGAPORE: The opposition Singapore Democratic Party (SDP) said it'll address the "shortcomings" of the government's Budget 2013 and propose a more efficient way of prioritising Singapore's expenditure estimates in its own "Shadow Budget".

The party said on Tuesday that the measures in Budget 2013 have failed to address Singapore's long-term needs.

It said while the Budget attempts to address systemic problems, it still falls short of addressing what Singapore really needs.

The SDP welcomes Finance Minister Tharman Shanmugaratnam's effort to tackle the problem of income disparity through the Wage Credit Scheme (WCS).

However, it felt that the WCS will not be an effective remedy if the root cause of the income gap is not addressed.

The root cause, the SDP said,, is the continued downward pressure on wages brought about by the importation of lower-wage foreign labour.

The SDP welcomed the move to raise the foreign worker levy for 2014 and 2015 but urged the government to rethink its policy of importing more foreign workers and to introduce minimum wage.

Turning to healthcare, the SDP said it's heartening to note that the Budget will increase funding of Eldercare, a programme which it supports.

However, it wants the 3M-system of Medisave, Medishield and Medifund replaced by a single-payer system, as well as government healthcare expenditure raised from the current 30 per cent to the international norm of about 70 per cent.

- CNA/ck



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Koop, who transformed surgeon general post, dies


With his striking beard and starched uniform, former Surgeon General Dr. C. Everett Koop became one of the most recognizable figures of the Reagan era — and one of the most unexpectedly enduring.


His nomination in 1981 met a wall of opposition from women's groups and liberal politicians, who complained President Ronald Reagan selected Koop, a pediatric surgeon and evangelical Christian from Philadelphia, only because of his conservative views, especially his staunch opposition to abortion.


Soon, though, he was a hero to AIDS activists, who chanted "Koop, Koop" at his appearances but booed other officials. And when he left his post in 1989, he left behind a landscape where AIDS was a top research and educational priority, smoking was considered a public health hazard, and access to abortion remained largely intact.


Koop, who turned his once-obscure post into a bully pulpit for seven years during the Reagan and George H.W. Bush administrations and who surprised both ends of the political spectrum by setting aside his conservative personal views on issues such as homosexuality and abortion to keep his focus sharply medical, died Monday at his home in Hanover, N.H. He was 96.


An assistant at Koop's Dartmouth College institute, Susan Wills, confirmed his death but didn't disclose its cause.


Dr. Richard Carmona, who served as surgeon general a decade ago under President George W. Bush, said Koop was a mentor to him and preached the importance of staying true to the science even if it made politicians uncomfortable.


"He set the bar high for all who followed in his footsteps," Carmona said.


Although the surgeon general has no real authority to set government policy, Koop described himself as "the health conscience of the country" and said modestly just before leaving his post that "my only influence was through moral suasion."


A former pipe smoker, Koop carried out a crusade to end smoking in the United States; his goal had been to do so by 2000. He said cigarettes were as addictive as heroin and cocaine. And he shocked his conservative supporters when he endorsed condoms and sex education to stop the spread of AIDS.


Chris Collins, a vice president of amFAR, the Foundation for AIDS Research, said many people don't realize what an important role Koop played in the beginning of the AIDS epidemic.


"At the time, he really changed the national conversation, and he showed real courage in pursuing the duties of his job," Collins said.


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


Although Koop eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy, his nomination met staunch opposition.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed after he told a Senate panel he would not use the surgeon general's post to promote his religious ideology. He kept his word.


In 1986, he issued a frank report on AIDS, urging the use of condoms for "safe sex" and advocating sex education as early as third grade.


He also maneuvered around uncooperative Reagan administration officials in 1988 to send an educational AIDS pamphlet to more than 100 million U.S. households, the largest public health mailing ever.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop further angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


Koop maintained his personal opposition to abortion, however. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day, but Reagan would not interfere.


Koop, worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, opened his institute at Dartmouth to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was born in the New York City borough of Brooklyn, the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats.


He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


Koop received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it.


In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children, one of whom died in a mountain climbing accident when he was 20.


Koop was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine.


He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was by far the best-known surgeon general and for decades afterward was still a recognized personality.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


___


Ring reported from Montpelier, Vt. Cass reported from Washington. AP Medical Writers Lauran Neergaard in Washington and Mike Stobbe in New York contributed to this report.


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Americans Targeted for Allegedly Running Underage Prostitution in Philippines












Arthur Benjamin is sitting at the edge of a small stage, wearing a lavender Hawaiian shirt and nursing a bottle of San Miguel Light beer. The 6-foot-6 mustachioed Texan lazily watches the half dozen or so girls dancing rather unenergetically around the stage's pole.


"I forgot your gift again, it's in the car," Benjamin says to one of the girls on stage, shouting above the pop music blaring from the speaker system.


The small, dingy bar, which Benjamin says he owns, is called Crow Bar. It's in a rundown part of the picturesque Subic Bay in the western Philippines, about a three hour drive from the capital, Manila. Home for 50 years to a United States naval base, Subic Bay has become synonymous with foreigners looking for sex in the long string of bars that line the main road along the coast.


Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET


The bars in this area are often packed with older foreign men ogling the young Filipina women available for the night for a "bar fine" of around 1,500 Filipino pesos, or just over $35. Many of the bars are owned and operated by Americans, often former military servicemen who either served on the base or whose ships docked here until the base was shuttered under political pressure in 1992.










Most of the prostitutes working in the bars are indeed 18 or older. But in the Philippines, just a small scratch to the surface can reveal a layer of young, underage girls who have mostly come from impoverished rural provinces to sell their bodies to help support their families.


Benjamin, 49, is, according to his own statements, one of the countless foreigners who has moved beyond just having sex with underage girls to owning and operating a bar where girls in scantily-clad outfits flaunt their bodies for patrons.


"My wife recently found out that I have this place," he tells an ABC News "Nightline" team, unaware they are journalists and recording the conversation on tiny hidden cameras disguised as shirt buttons.


Benjamin said that a "disgruntled waitress" had written his wife on Facebook, detailing his activities in Subic Bay.


"She sent her this thing saying that I have underage girls who stayed with me, that I [have anal sex with them], I own a bar, I've got other girls that I'm putting through high school, all this other crap," he said.


"All of which is true," he laughed. "However, I have to deny."


He sends a text message summoning his current girlfriend, a petite dark-skinned girl called Jade, who he said is just 16 years old. Benjamin says he bought the bar for her about a year ago and while most still call it Crow Bar, he officially re-named it with her last name.


"She needed a place to stay, I needed a place to do her. I bought a bar for her," he says, explaining that she lives in a house out back by the beach.


"You're not going to find anything like this in the States, not as a guy my age," he said as he looked down at Jade. "Ain't going to happen."


Benjamin is the latest target of Father Shay Cullen, a Catholic priest with a thick Irish brogue and fluency in the local language, Tagalog. Through his non-profit center called Preda, he's been crusading against underage sex trafficking in the Philippines for 40 years.




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Cuban leader Raul Castro says he will retire in 2018


HAVANA (Reuters) - Cuban President Raul Castro announced on Sunday he will step down from power after his second term ends in 2018, and the new parliament named a 52-year-old rising star to become his first vice president and most visible successor.


"This will be my last term," Castro, 81, said shortly after the National Assembly elected him to a second five-year tenure.


In a surprise move, the new parliament also named Miguel Diaz-Canel as first vice president, meaning he would take over if Castro cannot serve his full term.


Diaz-Canel is a member of the political bureau who rose through the Communist Party ranks in the provinces to become the most visible possible successor to Castro.


Raul Castro starts his second term immediately, leaving him free to retire in 2018, aged 86.


Former President Fidel Castro joined the National Assembly meeting on Sunday, in a rare public appearance. Since falling ill in 2006 and ceding the presidency to his brother, the elder Castro, 86, has given up official positions except as a deputy in the National Assembly.


The new government will almost certainly be the last headed up by the Castro brothers and their generation of leaders who have ruled Cuba since they swept down from the mountains in the 1959 revolution.


Cubans and foreign governments were keenly watching whether any new, younger faces appeared among the Council of State members, in particular its first vice president and five vice presidents.


Their hopes were partially fulfilled with Diaz-Canel's ascension. He replaces former first vice president, Jose Machado Ventura, 82, who will continue as one of five vice presidents.


Commander of the Revolution Ramiro Valdes, 80, and Gladys Bejerano, 66, the comptroller general, were also re-elected as vice presidents.


Two other newcomers, Mercedes Lopez Acea, 48, first secretary of the Havana communist party, and Salvador Valdes Mesa, 64, head of the official labor federation, also earned vice presidential slots.


Esteban Lazo, a 68-year-old former vice president and member of the political bureau of the Communist Party, left his post upon being named president of the National Assembly on Sunday. He replaced Ricardo Alarcon, who served in the job for 20 years.


Six of the Council's top seven members sit on the party's political bureau which is also lead by Castro.


Castro's announcement came as little surprise to Cuban exiles in Miami.


"It's no big news. It would have been big news if he resigned today and called for democratic elections," said Alfredo Duran, a Cuban-American lawyer and moderate exile leader in Miami who supports lifting the U.S. trade embargo against Cuba. "I wasn't worried about him being around after 2018," he added.


The National Assembly meets for just a few weeks each year and delegates its legislative powers between sessions to the 31-member Council of State, which also functions as the executive through the Council of Ministers it appoints.


Eighty percent of the 612 deputies, who were elected in an uncontested vote February 3, were born after the revolution.


EFFORT TO PROMOTE YOUNGER GENERATION


Raul Castro, who officially replaced his ailing brother as president in 2008, has repeatedly said senior leaders should hold office for no more than two five-year terms.


"Although we kept on trying to promote young people to senior positions, life proved that we did not always make the best choice," Castro said at a Communist Party Congress in 2011.


"Today, we are faced with the consequences of not having a reserve of well-trained replacements ... It's really embarrassing that we have not solved this problem in more than half a century."


Speaking on Sunday, Castro hailed the composition of the new Council of State as an example of what he had said needed to be accomplished.


"Of the 31 members, 41.9 percent are women and 38.6 percent are black or of mixed race. The average age is 57 years and 61.3 percent were born after the triumph of the revolution," he said.


The 2011 party summit adopted a more than 300-point plan aimed at updating Cuba's Soviet-style economic system, designed to transform it from one based on collective production and consumption to one where individual effort and reward play a far more important role.


Across-the-board subsidies are being replaced by a comprehensive tax code and targeted welfare.


Raul Castro has encouraged small businesses and cooperatives in retail services, farming, minor manufacturing and retail, and given more autonomy to state companies which still dominate the economy.


The party plan also includes an opening to more foreign investment.


At the same time, Cuba continues to face a U.S. administration bent on restoring democracy and capitalism to the island and questions about the future largess of oil rich Venezuela with strategic ally Hugo Chavez battling cancer.


(Editing by Kieran Murray and Vicki Allen)



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Putin signs law banning smoking in public places

 





MOSCOW: President Vladimir Putin signed a law banning smoking in public places in Russia from June, a cornerstone of the government's bid to improve public health, the Kremlin said Monday.

The law, called "On protecting the health of citizens from the danger of passive smoking and the consequences of the use of tabacco," makes smoking illegal in restaurants, cafes, hotels, trains and a host of other places.

-AFP/sb




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Terror mastermind Fayyaz Kagzi shifts base from Saudi to Pakistan

NEW DELHI: FayyazKagzi, a Lashkar-e-Taiba operative wanted in the 2010 German Bakery blasts and the 2006 Aurangabad arms haul case, is said to have recently shifted base to Pakistan from Saudi Arabia, even as agencies here counted on the Saudi authorities to deport him.

According to intelligence sources, Kagzi was based in Saudi Arabia since 2009. He is accused of recruiting terrorists from India along with 26/11 handler Zabiuddin Ansari alias Abu Jundal, who was deported by Saudi authorities last year.

Agencies believe that Kagzi, who hails from Beed district of Maharashtra, decided to shift back to Pakistan, where he had lived after escaping from India in the wake of the Aurangabad arms haul, on seeing the heightened cooperation of Saudi authorities in meeting India's requests for deportation of terror fugitives like Jundal and Fasih Mahmood.

While Jundal was deported in June 2012, Mahmood was handed over by Saudi authorities in October 2012. The two deportations had heightened the expectations of Indian agencies for Kagzi's custody as well. "But as per our latest information, Kagzi is living in Pakistan," an intelligence officer said.

Kagzi had fled to Pakistan via Bangladesh in the wake of the Aurangabad arms haul with the help of Hyderabad terror operative Shahid Bilal. He later shifted to Saudi Arabia and oversaw recruitment of Indian youth for LeT operations.

His aide Jundal told Indian investigators last year that he and Kagzi had a meeting in Colombo in 2008 to which Himayat Mirza Baig, also from Beed and now being tried in the German Bakery blasts case, was summoned. During the meeting, Jundal and Kagzi gave money to Baig to buy explosive devices and pay for indoctrinated youths to travel to Pakistan for terror training.

Kagzi hails from Feroz Shah Nagar, New Shahenshai Nagar, near Aqsa mosque in Beed. It is learnt that Kagzi and Jundal had formed a group of around 10 youths, who were selected from and around Beed to wage terror strikes.

On June 8, the National Investigation Agency (NIA) registered an FIR against Jundal and Kagzi for being part of a terror organization. The FIR was based on information that Kagzi and Jundal were trying to organize explosives for certain LeT and IM operatives in India for attacks in Delhi and Mumbai. Both Jundal and Kagzi have been charged under sections 18 and 20 (for being part of a terror organization) of the Unlawful Activities Prevention Act ( UAPA).

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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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Oscars 2013: 'Argo' Wins Best Picture












"Argo" took home the top prize as best picture at the Oscars Sunday night, with first lady Michelle Obama announcing the winner from the White House.


"You directed a hell of a film," co-producer Grant Heslov told director and fellow producer Ben Affleck. "I couldn't be more proud of the film and more proud of our director."


Affleck was snubbed in the directing category but humbly accepted the best picture Oscar as one of the three producers on the film. George Clooney was the third.


Affleck thanked Steven Spielberg and the other best picture nominees and his wife Jennifer Garner for "working on our marriage."


"It's good, it's work," he said, adding, "but there's no one I'd rather work with."


For Full List of Winners


Acknowledging his last Oscar win, as a screenwriter for "Good Will Hunting," Affleck said, "I was really just a kid. I never thought I would be back here."


In the acting categories, Daniel Day-Lewis won the Oscar for best actor, being the first actor to three-peat in that category. As he accepted the award from Hollywood's greatest actress, Meryl Streep, he joked, "I had actually been committed to play Margaret Thatcher. ... Meryl was Stephen's first choice for Lincoln."


He also thanked his wife, Rebecca Miller, for "living with some very strange men," with each new role that he takes on.


"She's the versatile one in the family and she's been the perfect companion to all of them," he said.






Kevin Winter/Getty Images













Jennifer Lawrence won the award for best actress. She tripped on the stairs on her way to accepting her award but picked herself up and made her way to the stage, earning a standing ovation.


"You're just standing up because you feel bad that I fell and that's embarrassing," she said, before rattling off a list of thank-yous and leaving the stage looking slightly stunned.


Watch Jennifer Lawrence's Oscar Tumble


"Life of Pi," which had a total of 11 nominations, was another big winner of the night. Director Ang Lee took home the Oscar for best director over Steven Spielberg and David O. Russell.


"Thank you, movie god," Lee said, accepting his award.


As expected, the film took home the first technical awards of the night for cinematography and visual effects. "Life of Pi" also won for best original score.


The first big acting awards of the night went to Christoph Waltz and Anne Hathaway in the supporting actor categories.


In one of the biggest tossups, Waltz claimed the award for supporting actor for his role in "Django Unchained." It was his second Oscar for a Quentin Tarantino film; his first was for Tarantino's "Inglourious Basterds."


PHOTOS: Stars on the Red Carpet


As expected, Hathaway took home the award for best supporting actress for her role as Fantine in "Les Miserables."


"It came true," she said, launching into a breathy speech, in which she thanked the cast and crew, her team and her husband. "The greatest moment of my life was when you walked into it," she said.


Tarantino won the Oscar for best original screenplay for his slave revenge western "Django Unchained." He thanked his cast.


"I have to cast the right people," he said. "And boy this time did I do it."


Chris Terrio won the award for best adapted screenplay for "Argo," which also won for film editing.


For only the sixth time in Academy history, there was a tie at the Oscars. "Zero Dark Thirty" and "Skyfall" tied for sound editing.


See Other Ties in Academy History






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Italian polling stations open in key vote for euro zone


ROME (Reuters) - Polling stations opened for the first day of voting on Sunday in an election to choose a successor to the technocrat government of Mario Monti, appointed just over a year ago to save Italy from financial crisis.


Voting began at 8 a.m. and will go on to 10 p.m. (2100 GMT)Polls will re-open on Monday at 7 a.m. and remain open until 3 p.m. (1400 GMT), with the first exit polls for both the lower house and Senate expected soon afterwards.


The election, in the middle of a deep recession, is being closely watched by financial markets amid concern that it may fail to produce a clear winner capable of continuing the broad course of budget discipline and economic reform begun by Monti and backed by Italy's European partners.


The last opinion polls published before a pre-election blackout two weeks ago put a center-left coalition led by Pier Luigi Bersani in the lead although former prime minister Silvio Berlusconi had been closing the gap.


Uncertainty over the result has been increased by a surge in support for the anti-establishment 5-Star Movement of comedian Beppe Grillo who has ridden a wave of public anger against corruption and privilege in Italy's political elite.


(Reporting by Catherine Hornby; Editing by Alison Williams)



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Apple, Samsung face onslaught at mobile fair






BARCELONA - Chinese handset makers will lead an onslaught on smartphone titans Samsung and Apple when the world's biggest mobile fair opens on Monday in Barcelona, Spain.

Offering big-screen, slick, slim smartphones at lower prices, Chinese manufacturers Huawei, ZTE and Lenovo will leverage the Mobile World Congress to chip away at the mighty duopoly, analysts say.

The handset battle is part of a broader revolt against a handful of companies with a stranglehold on the booming industry's handsets, operating systems and microchips, they say.

Apple, as usual, is steering clear of the February 25-28 congress that draws 1,500 exhibitors to this Mediterranean city in northeastern Spain, and Samsung is not expected to launch its next big offer, the Galaxy S4, until some time after the show.

That may leave the field clear for rivals to tout their ambitions for a slice of the smartphone market, which is set to grow to a record one billion handset shipments in 2013, according to a forecast by global consultancy Deloitte.

"I think we will see challengers trying to make noise at the Mobile World Congress this year," said Ian Fogg, London-based senior mobile analyst at research house IHS.

New players face a daunting task, though.

Samsung and Apple accounted for more than half of all smartphone sales in the final quarter of 2012 -- 29.0 percent for Samsung and 22.1 percent for Apple -- according to research firm Strategy Analytics.

Behind Samsung and Apple, however, Chinese firms held the third, fourth and fifth spots -- with 5.3 percent for Huawei, 4.7 percent for ZTE and 4.4 percent for Lenovo.

Demand for smartphones in developing countries could give Chinese firms a bigger opening, said Magnus Rehle, senior partner at telecommunications management consultancy group Greenwich Consulting.

"Hundreds of millions of Africans and Indians and Asians want to have a smartphone and so far the blocking point has been the price," said Rehle, speaking from Ghana.

Now the Chinese firms were offering attractive smartphones at lower prices, he said.

"I think they will be quite successful in grabbing the new market outside of Europe and the US, and that is where the growth is," Rehle said.

An even mightier duopoly holds sway over the operating system software that makes the smartphones work.

Google's Android ran 69 percent of all handsets sold last year and Apple's iOS 22 percent, said a study by independent analytical house Canalys.

Yet they face challengers, too, including Mozilla's new open-sourced Firefox OS, backed by an array of mobile phone operators.

Microsoft's new Windows Mobile operating system is struggling, however.

"The number of apps that is available is one thing that is blocking Windows from being successful," Rehle said.

"They have had problems and everybody is hoping this will change because the duopoly is maybe not good for the market."

Firefox could face similar difficulties, he predicted.

A battle has broken out, too, over the processor chips that run the smartphones.

Santa Clara, California-based Intel is offering new high-performance chips to break its way into smartphones, of which almost all now use chip technology licensed by ARM, based in Cambridge, England.

Chinese group Lenovo, for example, is launching a new handset, the IdeaPhone K900, just 6.9mm thick with a 5.5-inch high definition screen, which contains an Intel Clover Trail processor.

The potential rewards for Intel could be rich: the market in processor chips for smartphone applications was worth nearly seven billion euros (US$9 billion) last year, said Francis Sideco, communications technology analyst at IHS.

Despite robust growth in smartphones and tablet sales, however, the mobile industry still faces a major challenge moving customers over to new ultrafast fourth generation, or 4G, networks, which can offer speeds similar to a fixed fibre-optic connection.

"There are 3G networks in many parts of the world like in Sweden that have been overcrowded and then you have parallel 4G networks that are almost empty," said Greenwich Consulting's Rehle.

Network operators need to convince their customers to pay a little more for the faster speeds, he said, pointing to videos as the "killer application" to lure people to the system over the longer term.

If the operators succeed, they can make more money and invest in greater capacity, the analyst said.

"Otherwise, they will have problems."

- AFP/ir



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