>From today's WSJ....

Nat

November 1, 2000

Swatch Hopes 'Internet Time'
Goes Beyond Marketing Ploy
By ALMAR LATOUR and EDWARD HARRIS
Staff Reporters of THE WALL STREET JOURNAL

Is Ericsson ticking right?

The Swedish telecom-equipment maker recently sent out party invitations to
celebrate the launch of a new mobile phone simultaneously in Stockholm,
Helsinki, London and Moscow. But while the party Tuesday was taking place in
four different time zones, Ericsson only indicated one starting time: @480.

For your information, that's not 4:80 a.m. or p.m. but 480 Internet Time,
equaling 11:32 Swedish time, 10:32 London time or 12:32 Finnish time. No,
we're not trying to clean your clock.

Ericsson is offering Swatch's Internet Time on its T-20 phones, released
yesterday, at left. At right, Swatch's Beat Aluminium watch.

Internet Time was developed by Switzerland's Swatch AG, a unit of Swatch
Group, in response to what its leader, Nick Hayek Jr., saw as an Internet
foible: Twenty-four time zones made it difficult to say something takes
place at one instant. His solution? Take the current 24-hour day, divide it
into 1,000 "beats", or one minute and 26.4 seconds per beat. Then move the
reference point for the beginning of a day from Greenwich, England -- time's
home since 1884 -- to Swatch's headquarters in Biel, Switzerland. This way,
at @480 Internet Time Tuesday, anyone who cared could tune into Ericsson's
handset launch without confusion. But will it help sell phones?

Ericsson, for one, hopes the times are a-changin'. It put Internet Time as a
feature on its new phone, the T20, unveiled Tuesday, and hopes it will
appeal to trendy youngsters around the globe. Telefon AB L.M. Ericsson, the
world's No. 3 mobile-handset maker, is struggling to compete with rival
Nokia Corp., the world's No. 1 mobile-handset maker, known for its stylish
phones and plentiful accessories.

"Internet Time makes it easier to keep track of appointments with people in
different time zones," says Peter Bodor, press spokesman for Ericsson. "It's
fun for young people who have friends all over the world."

Ericsson isn't the only company featuring Internet Time as its hourglass:
CNN.com has sported Internet Time on its Web page; Apple's Web site offers a
software download that will translate between Internet Time and regular
Greenwich Mean Time, the de facto standard. Sega uses the system to
coordinate online games and chats through its Dreamcast system. And comely
killer Lara Croft, virtual star of the popular Eidos Interactive video game
"Tomb Raider," helped Mr. Hayek launch Internet Time in October 1998.
Swatch, which has a trademark for Internet Time, has since sold over one
million of its 17 different watch models featuring it, the company said.

While Internet Time has enjoyed some success, Ericsson and others'
endorsements don't mean that the world is going to adopt the standard
anytime soon. Internet Time is essentially Central European Time, where Biel
is located, broken up with a mathematical formula -- all the minutes in a
regular day divided by 1,000. What's more, there is at least one competing
new-time standard. On Jan. 1, 2000, Tony Blair launched Greenwich Electronic
Time, or GeT, a collaboration between the U.K. government and an e-retailing
industry group. It is a network of servers around the world calibrated to
nuclear clocks based in London that constantly keep computers, whose clocks
are notoriously inaccurate, ticking together.

Is figuring out time zones really that difficult? Calculating time-zone
differences is easier than adding up the minutes in a day and dividing by
one thousand, says John Laverty, of the U.K.'s National Physical Laboratory,
the custodians of Greenwich Mean Time.

Mr. Laverty doesn't think Internet Time has a chance of wiping GMT off the
books. "Internet time is largely a marketing ploy," he says. "If there
really is a need for people to have time be ambiguous, then maybe Internet
Time has a chance. But the multiplication is not intuitive and you need a
watch to do it for you. Greenwich Mean Time is so heavily embedded in what
we do: laws of countries and international communications standards, I can't
see anything coming along that's going to change this."

Nonetheless, the idea of Greenwich Mean Time itself was constructed by the
French, the British and the English in 1884. As intercontinental shipping
thrived, a time zone that everyone recognized as "home" was needed to
coordinate shipping times. After a hot debate, Greenwich, England, was
finally chosen as the default. The decision was made not because of
Greenwich's thriving port but because of its shipping charts. Greenwich had
for years been producing popular charts which used its hometown as the time
default. And since the charts had become almost ubiquitous on European
ships, the countries grudgingly accepted Greenwich when they realized it
would take years to replace the charts with new ones bearing a new standard.

The Internet has further shrunk the globe, and Swatch hopes its new
definition of time can get Web users on the same foot like GMT did years
ago. So, on Oct. 28, 1998, Mr. Hayek unveiled the first Swatch Internet Time
products with a flourish. He appeared in a virtual form on the Web with the
lovely and deadly Lara Croft. In Biel, the company emblazoned a lurid red
stripe, representing the central meridian for Internet Time, on its
headquarters. In the following two years, Swatch has sold over one million
watches with Internet Time. A converter between Internet and regular time
has been downloaded four million times from its Web site, with over 500
other sites offering downloads also, Mr. Hayek said.

And while Mr. Hayek denies that Internet Time is a marketing, rather than
time-telling, device, he admits the publicity is useful. The company hasn't
spent one cent on advertising for the Internet Time products, but has let
them sell themselves by word of Web.

The success of Internet Time will of course depend on consumers. In
Stockholm, where Ericsson launched its T20, a handful of youngsters are
already using Internet Time to set up meetings. Michell Stachowicz, a
21-year-old acting and biology student, recently got a Swatch watch
featuring Internet Time from her boyfriend, who travels often to Singapore.
While she still prefers to wear her shiny silver-colored Tissot watch on
public occasions, she carries the military green Swatch watch in her pocket
when her boyfriend is away. Two weeks ago, she and her beau, who was in
London, decided to call each other @600. "It was so difficult to count all
the time changes and the different time zones in the past," she says. "I
didn't have to figure out what time it was for him. It worked well."

Sven Janson, an Internet analyst in Stockholm, has been carrying Internet
Time around his wrist for more than a year, using it both as a fashion
statement and a conversation starter at parties. "All the Internet people
wear a suit with sneakers here," he says. "I have a strict business suit
with an Internet watch. It's cool."

No matter how cool the new time, Mr. Janson's friends weren't nearly as
receptive to Internet Time. So far only one friend has downloaded Internet
Time onto his palmtop. "Other people are simply running behind the time,"
says Mr. Janson.

Mr. Janson's enthusiasm for Internet Time started waning recently, however,
when he discovered that his watch is running three beats behind the official
Swatch Internet Time, a mistake he attributes to bad watch batteries. "I
guess even Internet Time watches can be inaccurate," he sighs. "Sometimes a
watch is just a watch."

Write to Almar Latour at [EMAIL PROTECTED] and Edward Harris at
[EMAIL PROTECTED]

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