Matteo Stefan's Blog

One of the most fascinating stories to recently begin trending throughout the media is associated with one of the largest hotel chains in North America. This past week, Marriott International was fined $600,000 for blocking conference attendees and exhibitors personal Wi-Fi connection. The fine came after a lengthy investigation by the Federal Communications Commission (FCC) who was given a tip by a guest at the Opryland Hotel in Nashville, Tennessee. The guest complained that the hotel was “jamming devices in its function room” (The Independent, 2014). Shortly after, a similar complaint was made about another Marriott property. Upon detailed investigation, the FCC learned that the Hotel giant not only blocked personal Wi-Fi hotspots but charged its guests double to use the hotel Wi-Fi connection. If users didn’t pay the double charge, they risked losing Internet connection once they approached a conference centre. By disabling Wi-Fi, the hotels were able to charge conference attendees between $250 and $1,000 per device to use its own Wi-Fi. Although Marriott International defended the practice by claiming that it protects against “rogue wireless hotspots that can degrade service, insidious cyber-attacks and identity theft”, it agreed to pay the fine (The Independent, 2014).

In my opinion, this is a pretty tasteless and detrimental move on Marriott’s part. Marriott International attracts business men and women from all over the world. Companies from all over the globe use Marriott facilities for week long conferences while individuals travelling on business look to Marriott International for a safe and accommodating stay. Nothing is more frustrating for a hotel guest, specifically one who is away on business, when Wi-Fi does not work properly or guests are charged a ridiculous sum of money for Wi-Fi access. As a hotel giant who has built its brand on serving the business sector, Wi-Fi should be included and there should most definitely not be a scandal of this calibre. I fully agree that companies should take precaution and ensure that all guests are provided with safe access to Wi-Fi hotspots. However, intentionally disabling personal hotspots while also charging consumers alarmingly high fees to use the hotels own Wi-Fi network is absolutely intolerable. This practice not only forces users to pay double if they chose to embrace the high Wi-Fi access fee, however it also encourages many to forge their Internet access. Thus, hindering the company’s promised service to its guest and making the hotel chain an unlikely accommodation for its business clientele. The financial repercussions for these crimes against their clientele as well as the hindrance to their reputation will surely be felt by the hotel conglomerate for years to come.

Source of Article: http://www.nbcnews.com/tech/tech-news/marriott-fined-600-000-fcc-blocking-wi-fi-n217886

“Marubeni Corp., a Japanese trader that with a partner bought Canada’s Grande Cache Coal Corp. for about $1-billion (U.S.) three years ago, said it would dispose of the asset for a nominal $1 to a Hong Kong mining investor. “

This article was quick to grasp my attention because I was able to create an instant connection. As previously discussed in class 9, costs under uncertainty can ultimately lead to fatal losses for investors. Three years ago when coal reached new highs, Marubeni Corp. over paid significantly for stakes in Grande Cache Coal Corp. As a result of optimism surrounding Chinese steel makers growing demand for coal, Marubeni Corp. over paid 70% for stakes in a company which many believed had great potential for economic growth in the future. However, as demand slowed and coal prices began to plummet, Grande Cache Coal Corp lost a great deal of traction and appears to not be recovering anytime soon. Like so many business ventures, almost all investments come with some form of risk. With direct reference to the article“A 120-Year Lease on Life Outlasts Apartment Heir” even though financial returns sometimes seem inevitable, in business you must always expect the unexpected. Whether it be the case of a woman living till the age of 120, or a company with great potential that completely falls apart, there is always uncertainty when it comes to financial transactions. Personally, this article humored me a little. Despite being an established trader, you would presume that Marubeni Corp. would know better than to simply jump on board a company when commodity prices are at all-time highs. I am no expert, however in my limited investing experiences it seems as though the general rule of thumb is to buy low and sell high. Although this general rule may seem quite obvious, time and time again we see investors pouring money into stocks as they reach all time highs, with hopes of reeking substantial returns on their investment. In the end, Marubeni Corp. sold their stakes in the comapny for significantly less than what they originally paid.

Source of Article/image: http://www.bnn.ca/News/2014/10/1/Japanese-trader-offloads-1-billion-Canadian-coal-mine-for-1.aspx