Olympic fever being fuelled by high-tech in SKorea (AFP)

SEOUL (AFP) - Cutting-edge technology is fuelling Olympic fever in South Korea, with employees using hand-held TVs or mobile phones to follow the Games live during work or off-duty hours.

The nation of 49 million people was third in the medals table as of Tuesday night, with five golds. It also has six silvers and one bronze medal.

Park Tae-Hwan, dubbed "Marine Boy," has become a national hero after winning the country its first-ever gold in swimming in the 400-metre freestyle on Sunday. He followed up Tuesday with a silver in the 200-metre freestyle.

Koreans follow the events at work, or during bus and subway journeys, on palm-sized TVs or mobile phones equipped with digital multimedia broadcasting (DMB) systems.

JoongAng Ilbo newspaper recounted the case of Nam, a typical young office worker, who left her desk and locked herself in a washroom cubicle with her mobile phone Monday to watch Park compete in the heats.

She shouted with joy when he qualified -- and realised she was not alone when similar shouts erupted from other cubicles.

South Korea, an IT powerhouse, has more than 14 million DMB terminals.

Samsung Electronics said handsets with DMB accounted for 33.5 percent of all its mobile sales last month, up from 23.1 percent in May.

"Thanks to the Olympic Games, the proportion of DMB phones is likely to rise further this month," a spokesman told AFP.

Thousands of company employees also secretly watch the Games online, with fingers poised to click back to a work-related window when bosses appear.

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iPhone to shake-up Japan's cellphone industry: Softbank official (AFP)

TOKYO (AFP) - The arrival of Apples iPhone 3G will force Japanese cellphone makers to revamp their handsets to allow increasingly sophisticated software, a senior official at Softbank Mobile said Wednesday.

Faced with increased competition, Japanese handset providers will have to provide more software-oriented machines like the touch-screen iPhone, said Tetsuzo Matsumoto, a senior executive vice president at Softbank Mobile.

"Its now the turning point," said Matsumoto, whose company is the only Japanese carrier so far to have launched the iPhone 3G in Japan.

The iPhones key advantage is that more features and applications can be added to suit the needs of users, he told a press conference.

Softbank Mobile launched Apples iPhone 3G for the first time in Japan in July, drawing long queues and helping the operator to add more subscribers.

But other operators, such as industry leader NTT DoCoMo, are more sceptical about the iPhones prospects of success in Japan.

Japans mobile phone market has developed differently than those in other countries. Here mobile operators, rather than handset makers, develop software and services, and foreign-made handsets have traditionally been unpopular.

NTT DoCoMo, the pioneer of third-generation (3G) telephones, has its own popular "i-mode" high-speed Internet service.

"I think Japanese handsets were uniquely ahead, but such uniqueness may not be so significant" compared with Apples approach, said Matsumoto.

Mobiles are becoming "more and more sophisticated, more and more PC-like. The conventional way of developing handsets will not work any more," he said.

Despite their popularity at home, Japanese handsets lag far behind those made by global leader Nokia in terms of overseas sales.

Softbank, Japans number three mobile telephone operator, was a late entrant to the competitive market, buying British giant Vodafones struggling Japanese unit for 15 billion dollars in 2006.

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iPhone 3G Problems Could Be From Flawed Chipset (NewsFactor)

Apples iPhone 3G reception issues could be more than a network problem -- or even a firmware problem. The issue could run as deep as the hardware, which could cause the handset maker millions in product repairs or replacements.

iPhone 3G users have been complaining about dropped calls, abrupt network switches, poor reception and service interruptions.

One financial analyst recalls similar complaints with 3G phones launched in Europe five years ago and speculates that the culprit could be the chipset inside the iPhone 3G. The new handset runs on an Infineon 3G chipset.

"We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain that Infineon is the 3G supplier," Richard Windsor, a financial analyst at Nomura, wrote in a research paper. "This is not surprising as the Infineon 3G chipset solution has never really been tested in the hands of users. Some people will not experience these problems, as it is only in areas where the radio signal weakens that the immaturity of the stack really shows."

IS AN IDISASTER BREWING?

Infineon could not immediately be reached for comment on the possibility that its chip could be the cause of 3G reception woes. Apple has not yet acknowledged any issues with its latest handset.

Although some commentators have made strong arguments that Apples 3G issues are due to a hardware issue rather than a network or firmware problem, at this point its impossible to know exactly where the problem lies, according to Charles King, principal analyst at Pund-IT Research.

"If it is an underlying problem with the processor, that makes repairing it either difficult or impossible. If that is the case, that could be a disaster for Apple," King said. "In any case, the 3G performance is obviously a problem."

King figures both Apple and AT&T are working behind the scenes to correct the issue. But, he said, Apples tight-lipped approach to the problem could come back to haunt the company.

"Sitting on your hands and either not discussing the issue publicly or claiming there is no problem when a firestorm of people are online complaining about difficulties means the inferno is just going to get bigger and bigger," King said. "If Apple finally does admit there is some sort of systemic issue, the result would be disastrous."

A CULTURE OF SECRECY

As King sees it, the underlying issue here is Apples culture of secrecy. He pointed to iPhone-related issues Apples secrecy has already created. Most recently, the kill-switch fiasco is a strong example.

"Apple installing a kill switch and not telling anyone caused a firestorm in the application-developer community online," King said. "Steve Jobs admitted to the fact that a kill switch does exist and tried to explain what the purpose of it was, but if Apple had simply announced it early on and the reason for it, there would not have been such controversy. Apples handling of the situation is emblematic of how it does business. it points to a real systemic weakness as Apple moves forward."

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NBC sees new media habits form with Olympic games (AP)

NEW YORK - About half of the people who are using mobile phones to pull down video or information about the Olympics have been trying out that technology for the first time, NBC said on Wednesday.

NBC Universal, a unit of General Electric Co., has been using the Olympics as something of a research lab to track the adoption of new media technology. Since the opening ceremony last Friday, the company has made content available online, through video on demand and via cell phones along with traditional TV.

The number of people requesting Olympic content over their phones is still relatively small -- 494,506 on Sunday and 476,062 on Monday -- but NBC executives say they're stunned at how many of those never used the phones for this purpose before.

"To some extent, the Olympics are beginning to influence how people use new technology," said Alan Wurtzel, research president for NBC Universal.

By far, however, television is still the preferred format. Of the estimated 107 million people to experience at least a few minutes of the Olympics on Sunday, 95 percent watched it on TV, NBC said.

Given the choice between a high-definition TV placed before a couch or a small, grainy picture on a computer screen, it's still a pretty obvious call, Wurtzel said.

NBC's prime-time ratings are running well ahead of the Athens games in 2004. Through five days, the average prime-time viewership for NBC is 31.3 million, the network said. Interest in Athens started slowly but heated up with gymnastics, while the Beijing games have been a draw from the start.

It has become a communal event that the country has enjoyed sharing, Wurtzel said, a rarity in the day of media fractionalization.

"I don't think you're going to see too much of this in the future," he said.

Americans downloaded some 1.7 million video streams of Monday's stunning swimming relay where the American team came from behind to beat France and keep Michael Phelps' gold medal streak alive. An estimated 1.5 million video streams were e-mailed from one person to another, Wurtzel said.

NBC Universal worried in past Olympics years that its decision to air much of the events on cable outlets like CNBC, MSNBC and USA would siphon interest from prime-time, which is still where the network earns the bulk of its advertising revenue.

But the opposite proved to be true and, this year, the same thing has happened with the digital content, said Gary Zenkel, president of NBC Olympics.

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Virgin Mobile USA 2Q profit declines (AP)

WARREN, N.J. - Wireless service provider Virgin Mobile USA Inc. said Wednesday its second-quarter profit dropped sharply as revenue declined and the company lost net subscribers.

Virgin Mobile earned $3.5 million, or 7 cents per share, down 50 percent from $7.1 million, or 14 cents per share, in the same period a year earlier.

Revenue slipped 3 percent to $317.4 million from $327.6 million.

Analysts, on average, were expecting a profit of 2 cents per share on sales of $314.3 million, according to a poll by Thomson Reuters.

The company lost 111,273 net customers during the quarter, up from a loss of 53,424 net subscribers a year earlier. Gross customer additions totaled 728,370 during the quarter.

Churn, or subscriber turnover rate, was 5.6 percent.

The company forecast third-quarter results of a breakeven to a profit of 3 cents per share. Analysts expect a profit of 8 cents per share. It also expects net service revenue to "stabilize and be consistent with the second quarter," in the range of $285 million to $295 million.

Virgin Mobile USA is the U.S. wireless unit of Richard Branson's Virgin Group. It went public at $15 per share last October.

Shares climbed 26 cents, or 9.5 percent, to $3 in after-hours electronic trading. The stock closed unchanged at $2.74.

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Swedish magazine blames iPhone 3G woes on hardware (AP)

SEATTLE - Spotty wireless broadband connectivity for some of Apple Inc.'s new iPhones most likely results from a hardware problem introduced during mass production, a Swedish technical magazine reported Wednesday.

Ny Teknik, Sweden's foremost engineering weekly, obtained a report on tests conducted by unnamed experts that showed some handsets' sensitivity to third-generation network signals is well below the level specified in the 3G standard.

So-called 3G networks offer the promise of faster Web surfing on cell phone browsers, and make bandwidth-hogging applications like video calling feasible. Phones that access 3G networks must meet certain engineering and technical specifications, which are set and maintained by the International Telecommunication Union, a Geneva-based organization.

The report said the most likely cause of the 3G problems is defective adjustments between the antenna and an amplifier that captures very weak signals from the antenna. This could lead to poor 3G connectivity and slower data speeds.

The iPhone 3G, which on sale July 11 in the United States and 21 other countries, was meant to offer faster Web browsing than the year-old original model.

Since the launch of the next-generation iPhone, Apple's message boards have been flooded with complaints of dropped calls and poor 3G connectivity indicated by few or no "bars" on the phone's display.

Some users said they performed side-by-side tests and found that the iPhone had connectivity problems in locations where 3G phones from other manufacturers did not. The reports were made by users who said they lived the United States, Canada, Japan, Britain and other countries.

Apple spokeswoman Natalie Kerris declined to comment on whether the problem lies in the iPhone's hardware or software, or with the various carriers' 3G networks.

In the United States, AT&T Inc. is the only wireless provider to sell the iPhone. Mark Siegel, a spokesman for AT&T's wireless unit, said AT&T has not received a significant number of complaints and that, "overall, the new iPhone is performing just great on our 3G network."

In an interview, Siegel recommended that iPhone 3G users sync the devices with Apple's iTunes program frequently to take advantage of improvements that may come via updated software.

Connectivity is just the latest of Apple's problems with the iPhone 3G.

Just hours before the new phones were set to go on sale, users of the Cupertino, Calif.-based company's old data-synching service were locked out of their accounts when it took Apple longer than expected to get the new version, MobileMe, up and running.

On launch day, Apple's servers buckled as buyers tried to activate new iPhones in stores, while owners of older iPhones and the iPod Touch were updating and reactivating their devices at home.

Francis Sideco, a senior analyst for El Segundo, Calif.-based research group iSuppli Corp., said the connectivity problems described by users -- dropped calls and the low number of bars in particular -- could be caused by any of a number of parts, from the phone's antenna and amplifier and the radio frequency transceiver to the baseband that processes the digital signal and sends it to the speaker or screen.

A faulty part could cause the phone to think there isn't enough signal strength to keep a call connected, he said, and could prompt the phone to display too few bars.

Different parts from different manufacturers also vary in their ability to draw the 3G signal from the air, the analyst said, which would support users' claims that different phones held side by side show different numbers of bars.

Ny Teknik's report suggested the error was introduced during mass production. Sideco noted that cell phone chips, or the phones themselves, go through a testing and certification process before reaching consumers, but only a fraction of the chips or handsets are tested.

"We've seen this in the past before, in Motorola's Razr line. It was a very big seller, but the first version of that phone had RF (radio frequency) problems. They had to recall it, fix it, (and) put it back out there," he said.

Sideco said such a problem could explain another oft-heard iPhone 3G complaint, the shorter-than-expected battery life.

"It could end up drawing more power because now the phone thinks it's (getting a) worse signal than it actually is. When it goes to talk to the network, it speaks louder than it needs to," he said.

The analyst said similar complaints from people in more than one geographic location indicates that the problem is with the phone, not the network.

Without knowing exactly what is going wrong, Sideco could not say whether software or firmware updates could fix the glitch, or whether Apple could be facing the possibility of a recall.

___

Associated Press Writer Louise Nordstrom in Stockholm contributed to this report.

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FCC Sets Rules for Cell-Phone Alerts (PC Magazine)

Federally supervised cell phone alerts about national emergencies came one step closer to reality Thursday when regulators released their final rules for how mobile providers must implement the Commercial Mobile Alert System (CMAS).

CMAS is a voluntary system available to wireless providers that will send text out message blasts in the event of a national disaster like Hurricane Katrina, or the September 11, 2001 terrorist attacks. Though providers are not required to join the CMAS, major providers like Verizon, AT imminent threat alerts and child abduction emergency or Amber alerts.

Initial implementation of the system is not expected until at least April 2010. Providers have until October 2008 to complete a CMAS industry standard, while development and testing will be conducted from October 2008 to October 2010, the FCC said.

The system has its origins in the Warning, Alert, and Response Network (WARN) Act, a bill Congress passed in 2006 as part of a larger port security bill. It allocated $106 million to create the voluntary, national emergency alert system.

Since then, the FCC has been working with wireless carriers as part of the Commercial Service Alert Advisory Committee (CMSAAC) to develop recommendations for how to execute CMAS. The FCC adopted an initial framework for CMAS in April and adopted further rules for educational and public broadcasting stations in July.

The Federal Emergency Management Agency (FEMA) pledged in late May to be the federal agency in charge of sending out the alerts, but not without some controversy. FEMA initially refused to coordinate the CMAS, prompting a public tongue lashing from the FCC commissioners.

The FCC did not take on that role itself because it did not have experience with originating emergency alerts; had received federal funds for operating an emergency alert system (as FEMA has); and did not have statutory authority to borrow money against the DTV Transition Fund to implement the WARN Act, as the Departments of Homeland Security and Commerce have, Democratic Commissioner Michael Copps said in April.

So far, FEMA has no concrete plans for the CMAS, but if they do not provide the FCC with specifications about the system by December 31, 2008, the FCC will convene an emergency CMSAAC meeting to address the issue, the order said.

But what does this mean for the average cell phone user?

Though most of the major providers are currently on board to participate in CMAS, it is not a done deal, and they have the option to back out at any point.

The FCC said Thursday that providers must notify the agency within 30 days about whether or not it will participate in the CMAS. If they opt out, providers will have to notify potential and current customers that they are not participating, but the FCC left it to the provider as to how that notification should occur.

Customers of providers who opt out will not receive alerts until 60 days before the CMAS is operational, or approximately February 2010.

"We believe the relevance of this decision may be lost if notification is delivered to prospective and existing customers too far in advance of CMAS commercial availability," according to the FCC order.

If you are a customer of a provider that opts out or signs up and then backs out, you can cancel your service without incurring a penalty or an early termination fee, the FCC said.

Similarly, if you subscribe to a service that will be provider alerts, you cannot opt out of presidential alerts, but can select not to receive "imminent threat" texts or Amber alert notifications.

As for the cost, providers are banned from imposing a "separate or additional charge" specifically for the CMAS, but they "have the discretion to absorb service-related costs" and pass those on to customers. So essentially, wireless customers will not see a separate "CMAS Fee" on their bill, but their providers reserve the right to up their monthly fees to recoup the costs associated with CMAS.

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IBM Ready To Connect and Secure Mobile Devices (NewsFactor)

IBM announced new software and services for mobile workers Friday, including applications for the iPhone and Blackberry devices. The Armonk, N.Y.-based company cited a surge in mobile devices as an important new market for traditional desktop, storage and server vendors.

IBMs internal research by its Institute for Business Value estimates that more than one billion people will be connected to the Internet this year -- a 191 percent jump from 2006. This makes mobile computing one of the fastest-growing markets in the world.

MOBILITY@WORK

IBMs focus is on consulting and implementation services for businesses called Mobility@Work. Spokesperson Jan Walbridge said, "The program has been under wraps for six months. But with the attention to mobile-device security, new mobile devices, and considering how companies are trying to save money on energy lately, we felt it was time to announce the initiative."

Enterprises can call in the Mobility@Work team to analyze their systems, ERP and current devices, and get suggestions for a productive mobility strategy.

"Companies need to ask: Will it be productive, does it really add value to our bottom line?" Walbridge said. The Mobility@Work team then helps companies implement a final strategy and provide a post-implementation analysis measuring the return on investment.

For example, mobile workers with the right applications can work with backend systems such as real-time inventory, pricing and order placement.

TOO MANY DEVICES, TOO LITTLE TIME

Many companies are currently going mobile whether they officially approve it or not as employees are hooking in iPhones, Blackberries and Windows Mobile devices. Whether the mobility is providing a real value is a concern.

These companies need to ensure that the applications are secure and efficient. In fact, a feature at the Black Hat Security Conference was a Wall of Sheep -- the most vulnerable devices and environments on the market today -- and to no ones surprise, mobile devices are at the top of the shame list.

Add a plethora of mobile-device operating systems and interfaces, and the challenge for businesses is daunting. Walbridge said Mobility@Work includes a team of device experts whose job is not only to stay on top of mobile-device advances but work with clients to make sure the devices suit the clients needs.

PHONE HOME

IBMs solution depends on a devices ability to communicate with IBMs integration platform dubbed HATS -- Host Application Transformation Services. HATS allows developers to quickly develop custom applications for mobile devices to securely access client systems with PDAs or mobile phones.

The companys service includes the ability to tie into IBM WebSphere business monitoring software. That can provide real-time monitoring of business activities and send alert and custom data to mobile devices in real time. This software is available for Blackberry devices now, and will is expected to be available for the iPhone before the end of the year.

Additional integration software is also available for the Symbian S60 and Windows Mobile.

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US intelligence alerts travelers to cyber spies (AFP)

WASHINGTON (AFP) - A US intelligence office Friday warned Americans traveling to the Beijing Olympics or elsewhere to expect cyber spies to surreptitiously compromise their laptops, cellphones, and other electronic devices.

The unusual advisory issued by the National Counterintelligence Executive (NCIX) did not single out China by name, but the head of the office did in a press release and a television interview.

"Somebody with a wireless device in China should expect it to be compromised while hes there," Joel Brenner, head of the NCIX, told CBS television.

Brenner said the Chinese public security services can activate a persons cellphone or Blackberry when he or she thinks it is off, and use it as a microphone.

His suggestion is to remove the battery. Or better yet leave it at home.

"If you can do without the device, dont take it," his offices advisory said.

A press release quotes Brenner as saying the security advice "applies to travel to virtually any overseas destination, from a Mediterranean beach to this months Olympic Games."

The advisory said travelers should have no expectation of privacy in Internet cafes, hotels, offices or public places, adding that phone networks and hotel business centers are regularly monitored in many countries.

All information sent electronically -- by fax, personal digital assistant, computer, or telephone -- can be intercepted, the advisory said.

"Wireless devices are especially vulnerable," it said.

Security services and criminals can then insert malicious software wirelessly, it warned.

"When you connect to your home server, the malware" can migrate to your business, agency, or home system, can inventory your system, and send information back to the security service or potential malicious actor," it said.

Malware can also be transferred through USB sticks and computer disks.

"Corporate and government officials are most at risk, but dont assume youre too insignificant to be targeted," the advisory said.

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HTC Android Phones May Be Delayed Until 2009 (NewsFactor)

According to a Web report, there may be some problems with integrating the Google-led open-source mobile platform Android into devices, delaying the release of an Android phone until early next year.

The Barrons Tech Trader Daily Web site published a report Thursday that said the so-called "GPhone" cell phones, which are being manufactured by a variety of makers, could be delayed beyond the current expected release in late 2008. The site raises this possibility because one analyst, Trip Chowdhry of Global Equities Research, is quoted as saying that handset maker High Tech Computer (HTC) is having "structural problems" incorporating Googles feature set.

The report follows recent assurances from HTC that its Android phones are on track.

MINIMUM REVENUE GUARANTEE?

Chowdhry also said that not enough developers are being drawn to Android, because new software toolkits from Microsoft, Apple, Research in Motion and Nokia have lured developers to those established platforms. He also told Barrons that HTC is "demanding a guaranteed minimum revenue surety from Google, because it does not expect there will be enough demand for [the] GPhone."

However, a Google spokesperson told news media that "we remain on schedule to deliver the first Android-based handset this year, and were very excited to see the momentum continuing to build [for] the Android platform among carriers, handset manufacturers, developers and consumers."

Michael Gartenberg, an analyst with industry research firm JupiterResearch, downplayed the report of a delay. "Its one rumor, based on speculation, relating to one manufacturer," he said, noting that HTC itself is saying that the device remains on schedule.

Last year, Google announced the open-source mobile platform, as well as dozens of companies who had joined in a new Open Handset Alliance. The alliance members include HTC, Motorola, T-Mobile and Qualcomm.

T-MOBILE ALSO ON TRACK

Android is a Linux-based software stack with an operating system, middleware, interface and applications. Android-based applications are written using Java and run on a custom virtual machine, called Dalvik, that has been designed for embedded mobile use and runs on top of a Linux kernel.

Initially, Google said that the first phones with Android would be released sometime in the second half of 2008. In June, a report in the Wall Street Journal indicated that the Android handsets would be coming out in the fourth quarter. Reportedly, Sprint Nextel and China Mobile wont release their Android phones until next year, but T-Mobile has said its devices are on track.

Unlike some other mobile platforms, Android is not tied to a particular device, but is expected to work on a variety of devices. Some observers are hoping for a new generation of interface approaches and applications, which could also help create a mix-and-match ecology that will take advantage of the new, "open device/open software" networks.

The energy surrounding Android was demonstrated at the Google I/O conference in San Francisco earlier this summer, which had nearly 3,000 developers in attendance.

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JaJah Service Translates Languages Via Phone (NewsFactor)

Your cell phone might become your personal translator if one of the new services from Internet telephone company JaJah catches on -- a free, real-time, machine translation service.

The JaJah Babel service, offered in conjunction with IBM, is initially intended to translate between Mandarin and English, just in time for the Summer Olympics. The first Olympic team to have the service is the small contingent from Ireland, home of JaJah CEO Trevor Healey.

The companies say they expect to offer other languages later this year, and eventually to charge for the service.

ORDER DINNER IN CHINESE

The service allows a user in China to call a local number from any phone, speak in English, and hear the words returned in Chinese Mandarin. Similarly, a Chinese speaker can have a statement translated into English. Babel also works with local access numbers in the U.S., the United Kingdom, and Australia.

With this service, for instance, a user could order dinner in Chinese by speaking into the phone, then handing the phone to the waiter or putting it on speakerphone.

Offering, testing, and monetizing new, free services are a key part of JaJahs business model. "We offer customer alpha and beta products to help us determine how to monetize services," Healey told news media, adding that, once proven, the technologies move into partnerships with telephony companies.

In addition to the Babel translation service, JaJah has also announced it will offer another service, called Concierge, that utilizes a voice-enabled IP telephony platform from Mobivox. JaJah pointed out that hands-free voice commands to dial numbers, send text messages, or set up conference calls will keep users legal for laws requiring hands-free operation for phone calls while driving. Like Babel, Concierge can be accessed by calling a local number.

FOREFRONT OF VOICE 2.0

Healey said Concierge and the partnership with MobiVox puts the two companies "at the forefront of the development of voice 2.0 services." He added that MobiVox customers get enhanced voice quality, while JaJah customers get "a new service developed on MobiVoxs voice-application platform."

Montreal-based MobiVox provides VoIP services and applications, and both companies announced earlier this week that JaJah had been selected to provide call-termination and other back-end management functions to MobiVox. MobiVoxs offerings include voice-activated international dialing, mobile to peer calls, group communication, and voice-to-text SMS delivery from any phone.

Mountain View, Calif.-based JaJah, which calls itself "the worlds most innovative communications company," provides next-generation telephony services using an open telecommunications platform. Its major service is international calling for more than 10 million customers, and it has partnerships with Yahoo, Microsoft, Intel, Deutsche Telekom, Harmony, Plaxo, Jangl, IBM Lotus, and others.

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Sprint eyes sale of Nextel's iDen network (Reuters)

NEW YORK (Reuters) - Sprint Nextel Corp (S.N) is considering a sale of the Nextel wireless network it bought in 2005, but may have trouble finding a buyer for an asset whose value has plunged about 80 percent to an estimated 5 billion.

Sprint has struggled to integrate Nextels iDen network, used by public safety and construction workers, with its own services and has lost millions of customers since paying about 35 billion for Nextel Communications three years ago.

Aside from having to compete with newer network standards than iDen, which has a walkie-talkie feature, any buyer would find it tough to reverse the now-completed integration of the iDen business, including its billing, broadcast towers and customer service, analysts say.

"They spent the last few years trying to integrate it," said Stifel Nicolaus analyst Chris King. "There are a lot of questions that a buyer and the government would have to have."

Sprint, the No. 3 U.S. mobile service, already faces pressure from the U.S. Federal Communications Commission to relinquish a key chunk of iDen wireless airwaves for emergency communications networks.

Bernstein analyst Craig Moffett also noted that iDen technology, developed by Motorola Inc (MOT.N), was being left behind by newer mobile services with broadband Web links.

"Its not exactly a healthy asset. Its a sub-scale narrow- band network that has limited capacity and has a subscriber base thats leaving in droves."

About 14.6 million subscribers, or 28 percent of Sprints total 51.9 million customers, were exclusively using the iDen network at the end of the second quarter. Another 1.7 million used phones working on both iDen and CDMA networks.

Sprint said in a regulatory filing this week that it was exploring alternatives for iDen that include "improving operations, making additional investments, entering into strategic partnerships and considering potential divestitures."

Sprint included a letter to Keith Cowan, an executive in charge of strategy and development, offering him a 1 million bonus for "the strategic resolution of the iDen network."

CNBC said on Friday that Latin American service provider NII Holdings Inc (NIHD.O), which uses iDen technology, or private equity investors may be interested in the network.

Sprint shares rose 12 percent, also helped by its surprise decision on Thursday to cancel a 3 billion convertible share sale that had been unpopular with shareholders.

Sprint and NII, whose shares rose 0.43 percent, were not immediately available for comment.

POSSIBLE SUITOR

Analysts said it made sense for money-losing Sprint to look for ways to improve its finances, even though it does not face an imminent liquidity crisis. Sprint ended the second quarter with a 23 billion debt, and cash and marketable securities of 3.5 billion.

"Every piece of the business is for sale at a certain price right now because they continue to struggle," said King.

But he noted that an investment in the iDen network, rather than an outright purchase, could make more sense for NII, which operates in countries such as Mexico and Brazil that have faster wireless growth rates than the United States.

The iDen network has faced technical issues Sprint says it has fixed, but customer cancellations have been exacerbated by the weakening U.S. economy and Sprint expects to continue to lose iDen customers in the next few quarters.

In the fourth quarter, Sprint took an impairment charge of 29.7 billion to write off most of the value of Nextel.

Stanford Group analyst Michael Nelson questioned whether Sprint would be able to find a private equity buyer in such a tough credit market.

"Even if they want to sell iDen, I dont think theres a buyer," Nelson added.

Pali Capital analyst Walter Piecyk said in research note that Sprint could attract multiple bidders willing to pay 5 billion or less for the network, without naming suitors.

(Additional reporting by Jessica Hall in Philadelphia, Editing by Derek Caney and Andre Grenon)

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Singapore Telecom's regional mobile users near 198 million (AFP)

SINGAPORE (AFP) - Singapore Telecommunications (SingTel) said Monday its regional mobile user base was up 45 percent to almost 198 million in the second quarter against a year earlier.

India led the way as SingTels mobile associate Bharti added a record 7.4 million new users to bring its total mobile base to 69.38 million at the end of June, the Singapore telecom carrier said in a statement.

Bharti, the largest GSM operator in India, makes up 35 percent of SingTels mobile base in the Asia-Pacific.

SingTel, the largest telecom firm in Southeast Asia, holds a 30.44 percent stake in Bharti as well as stakes in other mobile firms in the region.

For SingTels other associates, mobile users at Indonesias Telkomsel rose by 1.11 million during the June quarter to 52.44 million and Thailands AIS subscribers increased by over 877,000 to 25.96 million.

Among other associates, Globe of the Philippines added 1.46 million to 22.74 million, Pakistans Warid grew its base by 1.10 million to 15.49 million and Pacific Bangladesh Telecom Limited expanded its users to 1.70 million, SingTel said.

SingTels wholly owned Australian unit Optus added 101,000 users during the quarter to 7.24 million while in Singapore, its mobile subscribers grew 182,000 to 2.75 million.

SingTel usually releases an update on its regional mobile user base on the eve of the companys quarterly financial results.

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RIM hits 10 percent U.S. market share record (Reuters)

NEW YORK (Reuters) - For the first time Research In Motion Ltds (RIM.TO) BlackBerry cornered 10 percent of U.S. cell phone sales in the second quarter in a market that grew more than 5 percent despite economic concerns, Strategy Analytics said on Monday.

The research firm said Canadas RIM was seeing huge success with both consumer and enterprise handsets in the United states where total mobile phone shipments rose 5.3 percent to 41.9 million units from 39.8 million in the second quarter of 2007.

Also in the second quarter Motorola Inc (MOT.N) managed to keep the lead in its home market.

While some analysts have been expecting Motorola to be overtaken by rivals even in its strongest market the phone maker had better-than-expected U.S. sales in the quarter, giving it 25.8 percent of the U.S. market compared with its global share of less than 10 percent.

Motorola barely squeaked ahead of LG Electronics (066570.KS) to keep its global No. 3 ranking in the second quarter. It has been losing market share to rivals such as Nokia (NOK1V.HE) and Samsung Electronics Co (005930.KS) for well over a year amid criticism of its handset line-up and a lack of phones with high-speed Web links.

"Motorola is not yet out of the woods, but these are encouraging, early signs of stabilization," said Strategy Analytics analyst Neil Mawston, citing the companys strong distribution network and its U.S. carrier relationships.

Strategy Analytics said LG took second place in the United States for the first time in almost two years, due partly to sales of phones with high-speed Web links by the countrys No. 1 wireless service AT&T Inc (T.N).

(Reporting by Sinead Carew, editing by Richard Chang)

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Steve Jobs Confirms iPhone Has a Kill Switch (NewsFactor)

Apple CEO Steve Jobs has confirmed that the iPhone 3G has a kill switch that can remotely remove software from the devices.

Jobs told The Wall Street Journal that Apple needs the capability in case it inadvertently allows a malicious program -- such as an application that steals users personal data -- to be distributed to iPhones through its App Store.

"Hopefully we never have to pull that lever, but we would be irresponsible not to have a lever like that to pull," Jobs said.

SWITCH NOT USED

Jobs statement reveals Apple hasnt used the kill switch yet, but the company did remove an application from the App Store last week.

Apple removed the $999 "I Am Rich" application, which had the sole purpose of showing people the owner has money. The program creates a red icon that sits on the iPhone deck with a the words "I Am Rich" underneath. After the user activates the application, it glows on the handset like a ruby.

Apple initially approved the application, which bumps up against the pricing limit for applications sold on its App Store. The company was not immediately available for comment on why it decided to pull the plug.

DISAPPEARING ACTS

But the real controversy started when Jonathan Zdziarski, author of the books iPhone Open Application Development and iPhone Forensics Manual, discovered a URL buried in Apples firmware. That URL links to a file dubbed "unauthorizedApps" where malicious or simply bad apps might go once they disappear from the App Store.

According to Zdziarski, I Am Rich isnt the only app to disappear. BoxOffice (renamed to Now Playing) and NullRivers NetShare were also removed. But removing the applications from the App Store and removing them from a consumers iPhone are two different issues.

"The kill switch is a very controlling gesture. I am not sure why Apple didnt disclose it up front as simply a security measure," said Avi Greengart, an analyst at Current Analysis. "Consumers will accept an awful lot if you let them know what they are accepting."

WHAT ELSE IS APPLE HIDING?

In the past, Jobs has said he wants to be careful not to allow applications to bring down the network. Greengart doesnt see that as a major threat, especially since Apple is approving the applications.

However, Greengart said hes less concerned with the "heavy-handed and Big Brotherish" kill switch than the fact that Apple didnt disclose it in the first place. As far as he knows, no other mobile phone has a kill-switch capability.

"To my way of thinking, the issue is that you dont really know what your phone might be doing or not be doing," Greengart said. "I am not 100 percent sure what the capability is or is not. That is the problem. What is the capability? When might they use it? When wouldnt they use it? Is there anything else Apple is not disclosing?"

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Best Buy Gadget Kiosks Land at Airports (NewsFactor)

Youve been there -- late for a business flight, you forget your cell phone charger. Or, with a six-hour family vacation flight staring you in the face, the kids need something to keep them busy. You can relax: Chargers, Sony PSPs and even digital cameras will now be easily available in 12 U.S. airport terminals, courtesy of Best Buy.

Best Buy has announced a pilot rollout of electronic-gear kiosks at major U.S. airports. Nine are already in place, with the remaining three to be deployed by September 1. Airport terminals already sporting the bulky vending machines are: Atlanta (ATL), Boston (BOS), Dallas (DFW), Houston (IAH), Las Vegas (LAS), Los Angeles (LAX), Minneapolis (MSP) and San Francisco (SFO). "These are similar to kiosks consumers are already familiar with," said Jeff Dudash, spokeperson for Best Buy. "Consumers are already comfortable with buying cosmetics and other items like this from vending machines." The company hopes people will flock to vending machines that deliver SD cards, MP3 players and USB cables, as well. THE PRICE IS RIGHT

Unlike $3 bottles of soda and ridiculously expensive hamburgers, Best Buy promises to keep prices low in its vending machines. "These are not airport prices," said Dudash. "Customers can expect the same type of price on items that theyd find in our retail stores."

The kiosks were developed by ZoomSystems, maker of the popular iPod kiosks. ZoomSystems claims it has 61 "ZoomShops" in 11 major U.S. airports already. Other locations that sell kiosks with everything from cosmetics to iPods include hotel lobbies, shopping malls and department stores. The company recently signed a deal with Macys to set up iPod vending machines in many of its department stores. TERMINAL VENDOR VOID

A number of electronics players have tried and failed to sell their wares in airport terminals. In January of 2008, Palm decided to close all of its PalmOne branded stores, including those that operated in airports, according to a source working with Palm. The stores sold not only Palm devices and Palm accessories, but also chargers, batteries and even portable DVD players for passengers.

Another airport terminal vendor with multiple outlets was Sharper Image. The stores were built for business travelers, primarily focusing on cell phones and accessories. The company went into bankruptcy more than two months ago and shut down all its stores, including airport venues.

But these latest failures were storefronts, not kiosks, with the weighty overhead of running a full walk-in establishment. Kiosks require only floor space, electricity and maintenance. A ZoomSystems source said kiosks cover an average of only 32 square feet.

The key to success for the Best Buy kiosks will be their product mix, according to some analysts. While Best Buy is a brand name with positive recognition with consumers, if the products people need are not on display, the operation could be a bust. The sheer number of cell phones alone makes the selection of which accessory cables and chargers to sell a daunting marketing task.

Best Buy did not have data available on how it will choose products for sale in the terminal vending machines.

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Leap asks FCC to ban Verizon-Alltel purchase (Reuters)

NEW YORK (Reuters) - Leap Wireless International Inc said on Monday it had asked the U.S. telecom regulator to refuse permission for the Verizon Wireless 28.1 billion plan to buy Alltel and become the No. 1 U.S. mobile service.

Their smaller rival Leap said risks include less competition and difficulties creating roaming agreements that allow customers of one carrier to use anothers services when traveling outside their home network coverage area.

Leap has roaming pacts with both Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, and Alltel, the leading rural U.S. mobile provider for certain parts of the country.

But Laurie Itkin, Leaps government affairs director, said unless the Federal Communications Commission sets rules requiring nationwide roaming agreements, a Verizon and Alltel deal could leave Leap users without service in some places.

"It means that in some parts of the country consumers will find their phone just doesnt work," said Itkin, who is also pushing for the FCC to force operators to offer roaming for data services such as cellphone Web access.

The complaint, which was filed at the FCC on Monday, follows a promise made by Verizon Wireless last month to honor the terms of any roaming agreements Alltel has with other carriers. Verizon Wireless also said it would divest assets in 85 markets if it wins regulatory approval for the deal.

Verizon Wireless spokeswoman Nancy Stark said the company has not yet seen the complaint but would respond to any comments through the FCC, which had set August 11 as the deadline for comments.

The company announced its plan to buy Alltel in early June and has said it expects the deal to close by the end of the year. Analysts have also said they believe the acquisition will likely win regulatory approval.

(Reporting by Sinead Carew, editing by Phil Berlowitz)

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Singapore Telecom Q1 net profit down 5.3 percent (AFP)

SINGAPORE (AFP) - Singapore Telecommunications said Tuesday first quarter net profit fell 5.3 percent from the previous year as a stronger Singapore dollar cut earnings from its regional mobile businesses.

Net profit in the first financial quarter to June came in at 878 million Singapore dollars (622 million US), down from 927 million dollars over the same period last year, Southeast Asias biggest telecom firm said in a statement.

Operating revenue rose 5.9 percent to 3.78 billion dollars from 3.57 billion dollars but the firm, also known as SingTel, warned that currency fluctuations could further hurt earnings.

"As we report in Singapore dollar, the financial results of our regional associates are exposed to fluctuations in foreign exchange rates," said SingTel chief executive Chua Sock Koong. "In this quarter, the impact was negative."

Pre-tax profit contributions from its regional mobile phone businesses fell 11 percent to 582 million dollars as the currencies of the countries where SingTel operates fell against the Singapore dollar.

Lower earnings from the Philippines Globe Telecom, Indonesias Telkomsel and losses from Pakistans Warid Telecom contributed to the decline, SingTel said.

Outside of Singapore, SingTel also has stakes in Indias Bharti, AIS in Thailand and PBTL in Bangladesh. It has a wholly owned subsidiary in Australia called SingTel Optus.

For the June quarter, 42 percent of SingTels earnings before interest, taxes, depreciation and amortisation (EBITDA) came from its regional mobile associates, while Optus accounted for 31 percent.

The Singapore home market accounted for the rest.

SingTel said that if regional currencies had remained stable, pre-tax profit contribution would have been flat.

For the quarter ended June 30, the Singapore dollar rose 13 percent against the Indian rupee, 15 percent against the Indonesian rupiah and 10 percent against the Thai baht from the same period last year.

SingTel said on Monday its regional mobile user base was up 45 percent to almost 198 million in the second quarter against a year earlier.

By midday Tuesday, SingTel shares were trading at 3.48 dollars a share, down ten cents from the previous day. The main Straits Times Index was up 1.12 points to 2,826.51.

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Google's unhappy Android developers (InfoWorld)

San Francisco - For a long time, Google has led a largely blissful existence, fostering a widespread perception -- sometimes in direct contradiction to the facts -- that it can do no wrong. Yet the companys controversial Android mobile platform venture threatens to seriously dent this notion, at least with some of the people it needs most.

As it readies its long-anticipated open mobile OS for public release, Google is behaving in a way that threatens to permanently taint its relationship with many Android developers. The companys actions -- including restricting access to key development tools and allegedly treading on open source principles -- have created, if not a full-fledged revolt, at least a sense of disappointment and disillusionment among many in the tightly knit Android development community, which numbers perhaps 2,000, according to an estimate by AndroidGuys, an independent Android blog site. Some developers have threatened to shift their attention to other mobile platforms.

[ GETTHE ANDROID SDK, THEN GET THE INFOWORLD Test Centers analysis of the SDK. ]

Mike Novak, a New York-based independent Android developer, says Google may be guilty of taking its developer base for granted. "Developers are the driving force behind Android applications, so without them it would be very hard for Android to have a stance in the market," he says.

Casey Borders, an independent Android developer in Columbus, Ohio, warns that Google will have to work hard to retain developer loyalty and attract new developers to its platform. "The Android platform has a very strong base and a lot of potential, but it also has a lot of competition," he warns.

The Android SDK controversy
At the heart of the developers discontent is the status of the Android Software Developers Kit (SDK). In July, Google announced that the latest SDK would be released first to the 50 winners of its Android Developer Challenge (ADC), a $10 million contest that the company is using to find the best and most innovative Android applications -- "cool apps that surprise and delight mobile users," as Google says on its ADC Web page.

While many developers cried foul, Google claims its SDK decision was designed to help the development community. "The ADC finalists are helping us update the latest version of the SDK before we release it to the world in the coming weeks," the company said in an e-mailed statement. "We wanted to limit the challenges developers face with an early release in a particularly critical time during the challenge to not disadvantage them. Weve separated the scheduled releases to not disadvantage these winners who are competing for money and the public will receive a release of the SDK soon with more documentation and tools."

But the news that Google was reserving its latest and best development tools for a handpicked group, as well as failing to announce a firm date for the SDKs general release, hasnt gone down well with many developers.

For many in the closely linked "Androidsphere," Googles announcement seemed to come out of nowhere, stinging keenly and contradicting the companys vaunted developer-friendly reputation. Borders believes that Googles decision violated an open source guiding principle. "The idea with open source software is to allow early adopters access to the buggier pieces of code so they can help fix them or let people who want to wait for a solid release the ability to do that," he says. "The key is choice, and Google has taken away that choice and is developing Android like every other piece of closed software."

Jack Gold, an independent technology analyst based in Northborough, Mass., believes that Googles mobile game plan is "strategically flawed." He notes that the companys goals are contradictory: to create an open mobile platform, yet still be able to exercise control over the quality of Android applications. Gold believes that Googles fundamental problem is that it has managed to put the cart before the horse.

"Rather than trying to push yet another platform, Google ought to be bringing the market together and building applications, which is where theyre going to make their money," he says. "The developer discontent is just part of what has turned out to be a flawed strategy."

But Rob Enderle, an independent technology analyst, says he understands why Google chose to restrict access to the latest Android SDK. "Its the very same reason why Apple didnt do third-party developers first, and thats to assure the process and the program and the quality thats initially being offered," he says. "They???re pretty sure they can get 50 quality applications."

Independent developer Novak also doesnt view Googles SDK decision as a misstep, given the pressure the company faces. "The community must not forget that Google is dealing with partners in the cell phone industry, and they certainly have a reputation of a closed-source, tight-lipped mentality," he says. "The community can cry foul if Google releases the newest SDK to developers a week before handsets hit the stores, but as far as I have heard that is far from the truth."

Bad timing: iPhone and Symbian steal the show
Whether or not Google made the right decision with its SDK release, the company could have hardly selected a worse time to tick off developers. With Apples iPhone 3G grabbing sales records and headlines, the recent news that Symbian is going open source, and the fact that Android remains months away from release, Google is facing the possibility that its platform may become nothing more than a follow-up act, lost in a sea of mobile OSes.

Persistent rumors that Google and Nokia may soon merge Android with the now-open source Symbian platform has also done little to warm many developers hearts. "Within the next six months, Symbian and Android will combine into a single open source OS," predicts Gold. From the viewpoint of many developers, such a move would undercut the basic reason for Androids existence while threatening to trash months worth of development work.

"Combining code bases isnt exactly a trivial task," Gold says. "On the other hand, it would be much easier to do now than to tackle it in the future when developers are that much farther down the road."

Analyst Enderle doesnt expect a Google-Nokia hookup anytime soon. "To tie Symbian and Android together would require an awful lot of heavy lifting between Google and Nokia, and to do that kind of an agreement would be problematic," he says. "It would have been easier while Symbian was small and independent, but now that Symbian is basically a subsidiary of Nokia, it???s going to be pretty difficult."

Symbian aside, Novak believes that developers who are serious about addressing the largest number of potential customers will ultimately decide to create both Android and iPhone versions of their products. Enderle agrees. "If you develop for Apple, youve got a ready market," he says. "If you develop for Android, its a crapshoot because theres no assurance that the Android platform is even going to sell."

Limited options may keep enough developers on board
Google may still be able put its Android development house in order, but time is running out. Enderle notes that the company will have to work hard over the next several months to assure developers that there are good, financially rooted justifications for creating Android applications. But he acknowledges that Google faces a tough sales job as it feels its way through its first major mobile software venture. "While Google does simple well, this is Googles first device, as opposed to Apple, which clearly has been doing devices for a while."

Google can take some comfort in the fact that Android developers face a limited set of distribution alternatives, primarily Apple and Nokia. And both companies -- Apple in particular -- have also experienced developer discontent. "Apple is treating developers terribly and really undermining the community," Novak says. "The fact that applications have to go through the iTunes Store in order to be distributed really shows how much control Apple has over the entire OS."

Other marketing options open to developers include Microsoft Windows Mobile and Palm OS. Yet many developers view both of these platforms as unexciting and dated, rooted in a PDA past and increasingly irrelevant in a wireless mobile world.

Enderle believes that developers are ultimately going to embrace whichever platform or platforms promise a good return on their development efforts. "At the end of the day, developers want to make money," he says. "So theyre going to develop on a platform and put resources on a platform that will make them money."

Discontented Android developers also need to consider the fact that skipping out on Google at what is still a relatively early stage could turn into a big mistake should the company manage to turn Android into the next big mobile thing -- or even a respectable second-place platform.

Mark Murphy, author of The Busy Coders Guide to Android Development, says that Googles recent actions have managed to split the development community. "Undoubtedly, some developers have written Android off and will never return," he says. But Murphy also notes that many developers remain unperturbed by the commotion, and some plan to assess the situation over time. "Lots arent paying a darn bit of attention to the whole mess because there arent any devices ready yet," he says.

Novak, however, is optimistic that Googles Android strategy will eventually pan out. "Android is going to be something unlike anything currently out there in the cell phone industry," he says. "While it might not be an overnight rock star, it certainly will change the mobile world for the better."

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Two improved invisibility devices show themselves (USATODAY.com)

Harry Potters cloak it isnt, but scientists report the creation of two visible-light "invisibility cloak" prototypes that promise improved optics and cellphones and, yes, invisibility.

The microscopic devices arent actually in a cloak at this point, but they do bend light around their surfaces, researchers headed by Xiang Zhang of the University of California-Berkeley say. The devices rely on metamaterials, specially structured materials that in these cases have surfaces dotted with holes smaller than the width of visible light waves, less than 0.00003 of an inch across, which smoothly shuttle light rays around them.

"Being able to bend light in unusual ways is important for applications that almost resemble magic," physicist Ulf Leonhardt of Scotlands University of St. Andrews, who was not part of the prototype teams, writes in an e-mail. "There still is a long way to go, but the Berkeley team made an important step."

The field has been a hot area of study. Invisibility devices up till now have involved metamaterial devices that were "invisible" only from one angle or to microwaves but not visible light.

One of the new prototypes is a woven fishnet of silver nanowires, each one about 10,000 times thinner than a human hair. It was reported this week in the journal Science.

The team tested the device for red, or visible, light and infrared light and said the prototype bends red light from all angles hundreds of times more effectively than in past attempts.

The other device, reported this week in Nature magazine, relies on 21 stacked grids of silver and magnesium fluoride of similarly small sizes. The researchers found that the device bent infrared light around the grids.

Applications for invisibility devices extend beyond shielding oneself for an escape from a wizards academy. Shielding lenses from unwanted light frequencies would improve camera function, for example, and antennas invisible to noisy electromagnetic waves would fine-tune cellphone and radio communications.

And unlike Harry Potters cloak, these fragile metamaterials would be blown away by the gentlest breeze.

"Developing a way to manufacture these materials on a large scale will also be a challenge," the researchers said in a university statement.

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