Verizon Wireless, Mozilla Join LiMo Foundation (TechWeb)

Hoping to give Linux a boost on mobile devices, several hardware and software vendors including Verizon Wireless and the Mozilla Foundation on Wednesday signed on to join the LiMo (Linux Mobile) Foundation.

In addition to Verizon Wireless and Mozilla, new members joining LiMo include Infineon Technologies, Kvaleberg AS, Red Bend Software, Sagem Mobiles, SFR, and SK Telecom.

"Verizon Wireless is committed and invested in encouraging innovation, providing developers the opportunity to deliver wireless choices and expanding the mobile market," said Kyle Malady, the firms vice president of network, in a statement. "We expect our involvement with LiMo to advance these principles."

When will the first Verizon handsets based on LiMo appear? Malady said its first LiMo phones will likely appear next year, relatively simple designs before smart phones work their way up the Verizon food chain later.

The global consortium of mobile wireless firms was created a year ago by Motorola, NEC, NTT DoCoMo, Panasonic Mobile Communications, Samsung, and Vodafone Group with the goal of providing a Linux software framework that can be quickly designed into handsets. The group competes directly with the Open Handset Alliance (OHA) a Google-backed consortium that rallies around its Android software.

"It is now clear that LiMos transparent and participative governance model and total focus on the handset operating system -- which are designed to avoid value-chain distortion -- are proving to be very attractive to the whole industry, Morgan Gillis, executive director of the LiMo Foundation said in a statement."

The decision by Verizon Wireless to join the LiMo Foundations "open and transparent governance model" intensifies the war of nerves between Verizon and Google over exactly which firm will have the more "open" cell phone service.

The two firms have been sparing for months over the so-called openness of cell phone service with Google earlier this month agitating Verizon by asking the FCC to require the carrier to make certain that there will be open access to Verizons recently-acquired 700MHz spectrum.

Now Verizon has responded indirectly Wednesday by becoming the first U.S. major wireless carrier to join the LiMo Foundation and becoming a core member and a board member of the foundation, which pledges to deliver an open handset software platform based on Mobile Linux. Although Google is neither cell phone service provider nor handset supplier, its Android OHA follows the search engine firms version of an open architecture.

Sprint Nextel and T-Mobile are members of the OHA group while AT&T hasnt joined either organization. Since both OHA and Limo have open memberships, carriers and handset developers could join at a later date.

For instance, AT&Ts Mobility CEO Ralph De La Vega has said his firm may provide phones for the OHA and Verizon Wireless has said it wont rule out providing products for OHA.

Both OHA and LiMo have reported progress. The LiMo Foundation has been making APIs available to its members for several weeks. Gillis said recently that because early releases of the foundations platform will include technology and designs already proven in the marketplace, the LiMo releases should get to the marketplace quickly.

As for the OHA, its leaders have predicted that early Android handsets will appear by the end of the year.

See original article on InformationWeek.com

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Glitch Mars Launch of Wi-Fi on High-speed Trains (PC World)

The train was on time, but the commercial launch of Wi-Fi Internet access service on high-speed trains between Brussels and Paris was marred by a technical glitch that kept many travelers offline for much of the inaugural journey.

Train operator Thalys is installing Wi-Fi access points on its high-speed trains running between Paris, Brussels, Amsterdam and the German city of Cologne to connect travelers to the Internet via a satellite link or 3G (third generation) mobile networks while the train is moving, or to Wi-Fi hotspots in stations along the route.

But for the senior executives of the train operator and the systems developers gathered on board the 1:13 p.m. departure from Brussels for the commercial launch of the service on Wednesday, pride quickly turned to dismay as they realized that dozens of journalists invited to test the service were unable to log in.

As technicians attempted to restore service, Henry Hyde-Thomson, founder and chairman of 21Net, the company behind the technology, said the satellite link was still working but that the problem was with the on-board equipment.

"The DHCP server has given up for some reason," he said, referring to the system that hands computers the IP (Internet Protocol) addresses they need to use the system.

When working, ThalysNet allows first-class passengers to create an account and connect to the Internet free. Passengers in second class can access an on-board portal offering travel information and ticket reservations for free, but Internet access costs EUR6.50 (US$10) an hour, or EUR13 for the full journey. The trip from Paris to Brussels takes only one hour and 20 minutes, but the journey to Cologne is over three hours long.

By journeys end, the server was working and it was possible to search Google and see the news headlines on CNN.com.

Jean-Michel Dancoisne, CEO of train operator Thalys, sees broadband Internet access quickly becoming a basic need among business travelers. The ability to deliver it will be a major differentiator between rail and air travel, he said.

ThalysNet is managed for Thalys by a consortium of three companies: 21Net, which developed the satellite communications system for high-speed trains; Nokia Siemens Networks, which supplies some of the equipment and installs and integrates the systems on the trains, and Telenet, a Belgian Internet service provider and hotspot operator, which provides the billing and authentication system.

So far, seven of Thalys 26 trains have been fully equipped for Wi-Fi: Paul Broekhuizen, head of the consortium, expects to have work on all 26 trains completed by October.

Signals are bounced off a satellite over the Atlantic Ocean and down to a base station in Spain. The company currently allocates around 2M bits per second to each train-- although with compression, that looks more like 4M bps to users, said Hyde-Thomson.

There are no plans yet to shape or block particular kinds of traffic, and unlike many mobile phone operators, ThalysNet allows video streaming and voice-over-IP calls. The only restriction is that access to certain Web sites carrying adult content is not allowed, said Ines Clenjans, business manager for Wi-Fi on trains at Nokia Siemens Networks.

For now, the Wi-Fi-enabled trains are easy to spot: in addition to the "Wi-Fi inside" stickers in every window, they have a large white radome on top, protecting a satellite dish 80 centimeters in diameter and 72 cm high. The dish is motorized to keep it pointed at the satellite, however the train turns. 21Net is seeking certification for a lower-profile dish that is oval in shape and just 45 cm high, said company spokesman Philip Haines.

In the future, the company hopes to use a phased-array antenna just 3 cm thick, "covering as much of the trains roof as we can," said Haines. Phased-array antennas are composed of many flat elements which each transmit the same signal at different times to direct the beam. Picture a "Mexican wave" in the crowd at a football match, where each person in the crowd jumping up and down creates the impression of a wave moving around the stadium. The wave can be sent in another direction by changing the order in which people jump. With a phased-array antenna 21net hopes to do away with moving parts and bulky covers.

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Sony TV on UK iTunes Store

Apple is continuing to expand on its newfound variable pricing policy for TV shows, an announcement for the UK reveals. The region's iTunes Store has added a variety of shows under the Sony Pictures label (iTunes link), including episodes of Damages, NewsRadio and The Larry Sanders Show, as well as the kids' programs Spiderman and Jackie Chan Adventures. Pricing is staggered at three different levels, with NewsRadio, Spiderman and Jackie Chan being priced at �1.19, Larry Sanders at �1.49, and Damages at �1.89.

The scheme follows the debut of variable pricing at the American iTunes Store, where episodes of Rome, Deadwood and The Sopranos are a dollar more than other HBO shows such as Flight of the Conchords. The trend began back at the UK store, where NBC/Universal programming is now on sale despite NBC's infamous row with Apple, and its competing Hulu website.

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BUILT sleeves, backpacks

Online vendor Koyono has introduced two notebook cases by BUILT to its lineup, the Cargo Laptop Sleeve and the Laptop BackPack. The sleeve uses a thick neoprene layer, which stretches to accommodate the shape of different notebooks; there are additionally three external pockets, sized to fit gear such as iPods, power adapters and cellphones. Zig-zagging stitches are used to improved durability and protection against water. The sleeve comes in black, brown, green and orange colors, and 13-, 15- and 17-inch sizes; prices range from $40 to $50.

The BackPack uses a different approach, and holds all notebooks in a space with enough room for a 17-inch system plus books and folders. Phones and iPods are kept in a strap compartment, while miscellaneous items are stored in one on the main body. Black and green colors are available for $80.

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MO-Call international service optimized for iPhone

Morodo on Friday unveiled an iPhone-compatible web app version of its MO-Call low-cost calling service, allowing iPhone users to place international calls at low per-minute rates. The service requires an account signup at the company's mobile website, and Morodo is currently offering a free trial of the service for users in Canada, the US, and Hong Kong. International rates start at around 8� per minute for calls to land lines.

"The iPhone is a very desirable object but I think everyone agrees that there's not much to like about Mobile Network Operator call charges," said Andrew Reid, managing director for Morodo. "MO-Call for the iPhone provides a great money-saving alternative for consumers. This is yet another step towards our goal of becoming a global Virtual International Mobile Network Operator."

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Apple quadruples iPhone TAM, stock set to take off

Analyst firm Piper Jaffray on Friday offered analysis of the recent additions of many new carriers and countries to the iPhone fold, pointing out that Apple could quadruple its total addressable market share from 153 million potential subscribers to 575 million in 42 countries. In a note to investors, senior analyst Gene Munster says the recent agreements with Orange, Vodafone, SingTel, American Movil, and Swisscom put Apple's international rollout of the iPhone eight months ahead of schedule.

Munster feels that the agreements are not exclusive, with eight of the carriers sharing four countries. This goes contrary to Apple's earlier deployment strategy, with AT&T, Orange, O2, and T-Mobile all having exclusive distribution rights in their own countries. Munster believes that this will have a positive effect on overall unit shipments, but negatively impact iPhone revenue share.

Overall, Munster sees the situation as a growth opportunity for AAPL stock, citing that share pricing will be heavily reliant on units currently in shipment. The recent announcements solidify Munster's estimate that Apple would ship 12.9 million iPhones by calendar year-end.

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LG Electronics Watching Nokia's South Korea Plans (TechWeb)

By Marie-France Han

SEOUL, May 26 - LG Electronics, the worlds No.4 handset maker, is closely watching rival Nokia amid talk the top-ranked mobile phone maker may cut its prices and re-enter the South Korean market later this year.

Shares in LG Electronics tumbled more than 8 percent on Monday as investors gauged the impact of potential price cuts by Nokia. But an LG executive said the firm was generally positive about the industry this year.

"We are interested in the Korean market and investigating it, but we have not unveiled any products for that market," said Nokia spokesman Kari Tuutti, declining comment on future pricing.

LG shares ended down 3.8 percent, while Samsung Electronics, the worlds No.2 handset maker, closed down 4 percent. The main Korean market fell 1.5 percent.

"We are carefully watching Nokia," Chang Ma, LGs vice president for marketing strategy, told Reuters in an interview.

Analysts were split on the impact of a Nokia move.

"Nokias handset price cuts, if they actually happen, will certainly not be applied universally to all its models," said Lee Sung-june, an analyst at SK Securities.

"Besides, Nokia and LGs handset strategies are different in that while Nokia is more about offering cheaper models, LG is more focused on technologically advanced models."

John Park, analyst at Daishin Securities, noted that since LG had benefited from Nokia losing market share in North America, the Finnish firms possible expansion in that market could be a factor to watch for LG.

Ma said LG was also ready to seize any opportunities arising from difficulties at third-ranked Motorola Inc and No.5 manufacturer Sony Ericsson

Motorola has been losing market share to rivals after failing to follow up its blockbuster Razr phone, and Sony Ericsson saw its profit halved in the first quarter as demand slowed for its more expensive camera and music handsets.

"We see some risks from the economic slowdown, the rise of raw material prices and the possibility of unexpected moves by competitors, but we will compensate these risk factors with our product portfolio and our marketing strength," Ma said.

LG sold a record 24.4 million phones in January-March and looks set to beat its target of 100 million phones for the year.

First-quarter operating profit margin on handsets was 15.9 percent on a parent basis, almost double the previous quarters 8.3 percent and against 6.6 percent a year earlier.

Ma said he expected the handset division to post a "double digit" operating profit margin in the second quarter.

"The handset business remains strong in LGs overall earnings, accounting for as much as 80 percent of operating profit throughout 2008," said Daishins Park, though he added that handset marketing costs would likely grow and eat into margins in the third and fourth quarters.

In a separate interview, the head of LGs display division said the companys plasma business had suffered from lower than expected demand this year, but hopes to improve operating profits during the rest of the year.

"We are aiming to post better second-quarter operating profit ... from the first quarter," said Simon Kang, responsible for LGs plasma business, which makes screens for LGs own televisions and for external customers. "We also expect to post better operating profit in the second half from the first."

Kang acknowledged that demand from China had been slower than initially expected due to the snowstorm early this year and the recent earthquake.

LG is expected to post 2008 net profit of 2.5 trillion won, more than double last years 1.2 trillion won, according to Reuters Estimates. (Additional reporting by Tarmo Virki in HELSINKI and Park Jung-yun and Park Ju-min in SEOUL; Editing by Ian Geoghegan)

Copyright 2008 Reuters. See original article on InformationWeek.com

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Virgin USA in Talks Over Mobile Operator Helio (PC World)

Virgin Mobile USA is in talks with SK Telecom over a possible deal involving Helio, the U.S. mobile operator that gears itself toward affluent youngsters but has struggled to make a profit since its launch.

The talks, which could potentially lead to an acquisition or an investment, are in the early stages, and Virgin said Wednesday that it didnt expect to comment further unless an agreement is reached.

Helio was founded by SK Telecom and EarthLink in 2005 and launched the following year. It is known as a mobile virtual network operator (MVNO) because it rents capacity from a third party rather than owning its own network. SK Telecom became the majority owner after EarthLink reduced its ownership to 22 percent last year.

Both SK Telecom and EarthLink have sunk hundreds of millions of dollars into Helio, which continues to post losses despite boasting some of the best customer spending and usage metrics in the mobile industry.

At the end of last year, Helio said its users spent more than US$85 per month, compared with an industry average of $50. Helio customers send an average of 550 text messages per month, and 95 percent of Helio users access the Web from their phones, the company said at the time.

Still, EarthLink expected Helio to report a year-end loss for 2007 of as much as $360 million on revenue of as much as $170 million. Thats after SK Telecom and EarthLink started the company with a combined $440 million. Since then, both companies have made additional investments in Helio.

Virgin Mobile USAs earnings for the first quarter were down from the same period a year earlier. It had 5.1 million subscribers in the first quarter, compared to Helios 200,000 at the end of 2007. Like Helio, Virgin Mobile USA is also an MVNO, and both use Sprints network to deliver their service.

The companies have different types of customers, however. While Helio is after big-spending mobile users, Virgin offers only prepaid services and targets people looking for a lower-cost service. Combining the companies could allow the new entity to offer both pre- and post-paid service and attract a wider spectrum of the market.

Helio and Virgin arent the only struggling MVNOs. Ampd, which was also geared toward young mobile users, filed for bankruptcy and then shut down last year. Other MVNOs such as ESPN Mobile and Disney Mobile have suffered similar fates. In addition, Qwest dealt a blow to the concept of MVNOs earlier this month when it decided to stop selling its own branded mobile service, using Sprints network, and begin selling service branded by Verizon.

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Windows 7 unveiled, has iPhone-, Mac OS-like features

Microsoft Chairman Bill Gates and CEO Steve Ballmer on Tuesday unveiled a small preview of the company's next operating system � tentatively referred to as Windows 7 � at the All Things Digital executive conference. The preview demonstrated the integration of multi-touch directly into all application layers, allowing users to use multiple fingers in Paint, resize and rotate photographs, and performing many actions similar to that of the iPhone.

The demonstration also showed Microsoft Virtual Earth, which can be navigated by touch in both "road" and "aerial" views. Users can search for a location, such as Starbucks, and touch the push-pin representing the desired location, and information about the caf� will appear.

In the photo management application, users are able to toss around and organize photos as though they were on a surface. Photos can be rotated, drawn on, zoomed, organized into a 3D slideshow, viewed in a grid mode, or scattered across the virtual surface.

Interactive, on-screen musical instruments, as well as several other possibilities were also shown. Gates hinted briefly that this would just be the beginning, that Microsoft would explore speech, gesture, vision, ink, and other near-future technologies.

In terms of interface elements, Windows 7 will allegedly bear even stronger resemblances to Mac OS X, with the presence of a Dock. Microsoft did not extrapolate on how the "dock" functions, but will most likely be revealed in the near future.

Windows 7 is supposedly about 18 months away from seeing store shelves.

[via Gizmodo]

Video: Multi-Touch in Windows 7

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Reliance Comms in talks with S.Africa's MTN (Reuters)

MUMBAI (Reuters) - Reliance Communications (RLCM.BO), Indias No.2 mobile operator, has started exclusive talks with South Africas MTN Group (MTNJ.J) that could create a 63 billion telecoms giant, knocking shares in both companies down sharply.

Reliance Communications was quick to fill a void left after its bigger domestic rival, Bharti Airtel (BRTI.BO), pulled out of talks at the weekend aimed at taking control of MTN, sub-Saharan Africas biggest mobile operator.

A source with knowledge of the negotiations said Reliance would not be looking for the same kind of structure in the deal.

"Reliance Communications and MTN Group have agreed to enter into exclusive negotiations with respect to a potential combination of their businesses," Reliance said in a statement on Monday, adding there would be a 45-day exclusivity period for talks, during which neither party can talk to any other entity.

Reliance Communications Chairman Anil Ambani, one of Indias richest men, said a deal with MTN could "provide investors, customers and the people of both companies a global platform for exponential growth."

MTN had 68.2 million subscribers as of March, compared with Reliance Communications 48 million.

"Reliance Communications is smaller than MTN, and lacks the financial muscle for a takeover, but it is not going to want to be a subsidiary, either," said Ravi Dodhia, a telecoms analyst at KR Choksey Securities.

He said the two firms were instead likely to create a new company, with MTN taking a 51 percent stake.

Bharti said on Saturday it called off talks after MTN proposed a new structure which it said would have seen the Indian firm become a unit of MTN.

Harit Shah at Angel Broking said Reliance and MTN might swap shares, as the foreign holding in Reliance Communications was considerably lower than in Bharti Airtel, a factor that was seen as a possible roadblock for Bhartis attempted deal.

Foreign ownership of Indian telecom firms is capped at 74 percent, and Bharti is 30.5 percent owned by Singapore Telecommunications (STEL.SI).

RELIANCE, MTN SHARES FALL

Shares in Reliance Communications, valued at about 28 billion, fell as much as 5.7 percent to their lowest since May 12 on concerns about the cost of a deal.

In Johannesburg, shares in MTN, which has a market capitalization of about 35 billion, fell as much as 7.6 percent to 145.11 rand, their lowest since April 30.

"The market is disappointed that MTN has called off its talks with Bharti Airtel," said Garth Mackenzie, a trader at BOE Stockbrokers in Johannesburg.

"The market was anticipating a buyout from Bharti of MTN of a controlling stake. Naturally, Bharti would have to pay a premium to the share price if shareholders were going to give up their shares," he said.

Media and analysts had speculated that Bharti Airtel was eyeing a 51 percent stake in MTN or engineering a merger in a deal that would value MTN at up to 50 billion.

"The reason (Bharti) investors didnt like talk of the Bharti-MTN deal was the price, and now Reliance Communications will have to pay a price that is at least equal to, or higher than what was being talked about," said Arun Kejriwal at investment advisory KRIS.

Shares in Bharti rose as much as 4.2 percent to 872 rupees, their highest since May 6, when they slumped more than 5 percent on news that Bharti was in talks with MTN.

AFRICA INTEREST

Reliance Communications bought Ugandan Anupam Global Soft Ltd in February, saying it would launch mobile services in Uganda by the end of 2008 and spend up to 500 million over five years to build a telecom network there.

Last year, it lost the 11 billion race for majority control of Indias third-largest mobile provider to Vodafone Plc (VOD.L), but has made several smaller overseas acquisitions, including a UK-based WiMax operator of 4G services.

Indias wireless market grew 25-fold between 2002-07, ringing up record profits for telecom firms, but that growth is expected to slow as the percentage of the population with a mobile phone tops 40 percent by 2010 from 22 percent now.

In contrast, MTN is present in some of the worlds most lucrative markets, such as Nigeria, Cameroon, Ghana, Zambia and Uganda, and has said it is keen to pursue more expansion opportunities in emerging markets.

Separately on Monday, Reliance Communications said its Reliance Globalcom unit bought UK-based global managed network services provider Vanco for 77 million.

(Additional reporting by Hiral Vora in MUMBAI and Gugulakhe Lourie in JOHANNESBURG)

(Editing by John Mair and Jean Yoon)

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Windows Mobile In Line For 50% Growth, Microsoft Says (TechWeb)

A Microsoft official on Tuesday said that the company expects sales of its Windows Mobile operating system to grow by at least 50% annually through fiscal years 2008 and 2009.

"Fifty percent growth is the minimum," said Eddie Wu, Microsofts managing director for embedded devices in Asia, in an interview with Reuters.

Wus remarks are consistent with previous Microsoft statements about the state of its Windows Mobile business. The company in its most recent quarterly report said that Windows Mobile sales are growing as a result of "increased market demand for phone-enabled devices and Windows Embedded operating systems."

Wu told Reuters that Microsoft expects to sell 20 million Windows Mobile licenses in its current fiscal year, which ends in June. It sold 11 million units in the previous fiscal year.

Microsoft has taken numerous steps of late to boost Windows Mobiles appeal in the face of stiff competition in the mobile software market from Apple, Symbian, and Research In Motion.

The company earlier this year unveiled the latest version of Internet Explorer Mobile and pledged that the software would bring "desktop grade" Web browsing to mobile devices.

With added support for industry standards like Adobe Flash, the updated version of Explorer Mobile lets users view full-screen Web pages and multimedia on their smartphones just as they would on a PC, Microsoft claims.

It also supports Microsofts nascent Silverlight Web display technology. Microsoft said the new version of Internet Explorer Mobile will be available to mobile phone makers in the third quarter and to consumers in the fourth quarter.

Microsoft also recently said it would support Adobe Flash Lite on Windows Mobile in a nod to the fact that many mobile application developers are still lukewarm over Silverlight.

The current edition of Windows Mobile, version 6.1, offers enhancements that let users view messages and appointments and play music from their home screen. A new "Getting Started" center makes it easier to configure devices for Bluetooth or Wi-Fi connectivity.

Theres also an improved zoom feature that makes document and Web navigation easier, according to Microsoft.

A number of handset providers have pledged to support Windows Mobile 6.1, including AT&T, Sprint, T-Mobile, Motorola, and Toshiba.

See original article on InformationWeek.com

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Justices turn down T-Mobile appeal over contracts (AP)

WASHINGTON - The Supreme Court handed a defeat to T-Mobile USA Inc. Tuesday, rejecting the company's appeal in three cases involving the legal remedies available in millions of cell phone contracts.

The issue in the three cases is the same: whether state laws that limit the ability of companies to prohibit consumers from banding together to pursue class action lawsuits are preempted by federal law.

T-Mobile included a prohibition on class actions in a part of its contracts that also required consumers to resolve any complaints through arbitration. The company's lawyers argued in court papers that federal law, which generally requires that arbitration clauses be enforced, overrules those state laws that limit the ability of companies to ban class actions.

Under contract laws in many states, class-action bans are considered inherently unfair and courts, including those in California, where the dispute originated, can choose to not enforce them.

Companies generally support arbitration because they consider it a faster and cheaper way to resolve disputes than litigation. Clauses requiring arbitration are included in millions of consumer contracts issued by credit card, cell phone and cable companies, among others.

A federal appeals court ruled in one of the cases, T-Mobile v. Laster, last October that courts can refuse to enforce arbitration clauses if they include bans on class actions. The Supreme Court's decision, without comment, lets that decision stand and allows the case to proceed to further litigation.

Consumer groups argue that class action bans are unfair, because in legal disputes over small amounts of money, individuals may not have the incentive to file suits.

Banning class actions, as a result, could essentially allow companies to avoid liability for practices that cost large numbers of people small amounts of money, according to court papers filed in the case by the consumer group Public Citizen.

The T-Mobile v. Laster case began when a woman named Jennifer Laster sued the company after buying a phone and signing up for wireless service in San Diego in 2005.

She alleged that T-Mobile engaged in unfair and deceptive business practices by promising free and significantly discounted phones, while charging sales taxes based on the full price of the phone.

The company responded that they were required to charge sales taxes on the full retail price under California law.

T-Mobile is owned by German telecommunications company Deutsche Telekom AG.

Two companion cases, T-Mobile v. Ford, 07-1103, and T-Mobile v. Gatton, 07-1036, were also turned down by the court.

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Apple Signs More Nonexclusive iPhone Deals (TechWeb)

As iPhone aficionados await the unveiling of new and faster models, they can look to the deals signed in recent days in Europe for hints of Apples new attitude toward service providers. Apple has signed agreements with service providers in Italy and Austria as well in a handful of smaller countries show that the company can deviate from its insistence on exclusivity.

Orange on Friday said it will sell the iPhone in several countries including Austria, where Deutsche Telekom has had the exclusive deal with Apple to sell the iPhone. Orange also will market the iPhone in Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland, and some African countries.

In Italy, Vodafone and Telecom Italia will market the iPhone while Vodafone will sell the phone along with Frances Orange in Egypt and Portugal, and possibly some other countries. The multiple supplier deals indicate that Apples insistence on exclusive marketing agreements is breaking down.

It isnt clear whether that new attitude will affect AT&Ts five-year exclusive contract with Apple to sell the iPhone in the U.S. The European arrangements may not be possible in the states. And there are other issues: Verizon Wireless and Sprint Nextel both run on CDMA wireless infrastructure, not the GSM technology that AT&T and the iPhone use. So they arent likely candidates to offer the iPhone. One option: T-Mobile, which uses GSM. Its German parent, Deutsche Telekom, has been selling the iPhone in Europe.

In recent days, AT&T and T-Mobile USA have begun offering Wi-Fi service side-by-side in Starbucks locations.

As is well documented, the iPhone can be unlocked relatively easily and then used on GSM networks.

The expected introduction date for upgraded iPhones is June 9, when Apple holds its Worldwide Developers Conference.

This story was modified May 16 to correct the network on which an unlocked iPhone will work.

See original article on InformationWeek.com

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Bharti, MTN merger talks could wind up this weekend: report (AFP)

NEW DELHI (AFP) - Merger talks between Indias biggest mobile phone services firm, Bharti Airtel, and South Africas flagship MTN Group could wind up this weekend, a report said on Saturday.

Bharti and MTN, Africas biggest cellular operator, were putting finishing touches to a funding structure for the proposed merger, Indias Mint newspaper reported, quoting unnamed people who it said were close to the discussions.

A Bharti official declined to comment on the report.

A merged group would create the worlds sixth largest mobile company with a network of 130 million subscribers -- 68 million from MTN and 62 million from Bharti -- that would dominate two of the worlds fastest growing cellular markets -- India and Africa.

Johannesburg-based MTN may have to be valued at up to 50 billion dollars, or 25 dollars a share, including debt -- about 25 percent more than its current stock exchange value for a deal to be struck, analysts say.

MTN, whose shares have soared since the merger talks were confirmed by the two companies on May 5, has net debt of around 2.9 billion dollars.

Bhartis shares have dropped seven percent since the discussions were announced amid concern the transaction could strain its balance sheet.

Indian newspapers have been reporting for days that Bhartis negotiations with MTN were at a crucial phase.

Bharti might offer the chairmans post of the proposed merged colossus to MTN group chairman M.C. Ramaphosa to sweeten its overtures, Indias Business Standard newspaper said on Friday.

Bhartis billionaire chairman Sunil Mittal would be deputy chairman and group chief executive officer while MTN chief executive officer Phutomo Nhleko would be deputy group CEO, the paper reported.

Bharti has said "discussions being held are aimed at combining the strengths of two players from emerging markets" and that it was looking at "possible structures to achieve this objective."

Bharti wants to acquire a 51 percent stake. But MTN, which serves 21 markets across Africa and the Middle East, is pushing Bharti to buy out 100 percent of the company in a transaction that could be portrayed in South Africa as a merger of equals, reports said.

If it goes ahead, the deal would easily eclipse Tata Steels 13.7-billion-dollar takeover of Anglo-Dutch steelmaker Corus last year, Indias biggest foreign acquisition so far.

However, a deal could hit Indian regulatory hurdles as foreign ownership in the new merged group might exceed the allowed 74 percent, reports said.

MTN wants half the merger to be carried out through a share swap, the Times of India reported.

But any new share issue by Bharti to complete the transaction could hike the foreign stake in the Indian company to as much as 78 percent.

Foreign investors, including Singapores SingTelNet, already hold 65 percent of Bharti.

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Embarq CFO: May drop wireless customers after 2009 (AP)

KANSAS CITY, Mo. - Embarq Corp. will hold onto its wireless customer base for the time being, but could hand it over to another carrier next year, the company's chief financial officer said Wednesday.

Speaking in Washington, D.C., at an analyst conference broadcast on the Web, Gene Betts said the company would continue serving those customers until at least 2009.

"After that, we may decide to transition them to a carrier," he said.

Embarq, the nation's fourth-largest landline phone company, sold wireless services in its 18-state market through a partnership with Sprint Nextel Corp., which spun off the Overland Park, Kan.-based company in 2006. The service was sold in package deals aimed at improving competition with cable companies, which have increasingly gone after traditional telephone customer bases.

Embarq stopped marketing the service after the first of the year, however, because sales weren't meeting internal expectations. Betts said Embarq envisioned drawing 1 million or more wireless customers but ended up with only 112,000 by the end of 2007.

"It was becoming apparent that we couldn't obtain enough wireless customers to make a big difference," Betts said.

He said the company will instead continue developing and selling products that better combine home and wireless phone service, such as features that transfer phone calls seamlessly between the two or provide unified voicemail.

"We're trying to make functionality that integrates with any wireless device and isn't tied to a particular carrier," he said.

Betts said Embarq, which has struggled like other traditional telephone companies as customers drop landline service in favor of wireless or Internet-based telephone carriers, is looking to move into other arenas to boost revenue.

For example, the company has begun offering home computer repair service in some markets, taking advantage of high demand and the company's large pool of field technicians, he said.

"Maybe we could act as the CIO for residences and small business," he said. "We're just trialing it to see if it makes sense."

Embarq shares gained 76 cents, or 1.7 percent, to $45.75 Wednesday.

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Apple interested in solar?

Apple may be seeking to use solar cells to power future devices, a newly-published patent application suggests. Solar power may offer a means of greatly extending the battery life of Apple devices, including both MacBooks and handhelds like the iPod and iPhone; the difficulty, according to MacRumors, is that portables often have limited space to fit solar panels, and if they do have space the panels may be fragile, and occupy room that could be used for other functions.

Apple's proposed solution involves inserting solar cells into the display, beneath the protective glass and the LCD. Aside from conserving surface space, this would require virtually no exterior design changes, which Apple typically avoids unless it intends to make a major shift in aesthetics.

A Motorola patent from 2001 is said to describe a similar technology, but several limitations may have been addressed in Apple's implementation.

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LG Levinson HT Ships

LG this morning said it has started shipping a quintet of home theater systems that are tailored equally to traditional home theater and audio setups as well as portable digital audio. The flagship LHT888 is tuned by Mark Levinson and puts out 5.1-channel surround through a 700-watt speaker system with wireless rear channels. Its host receiver can both play DVDs as well as play media from USB devices, including iPod-specific navigation as well as more generic mass storage. Video can be upscaled as high as 1080p through the HDMI connection, which also supports CEC multi-device control when attached to Blu-ray players, TVs, and other devices that support the standard.

Two additional systems, the LHT874 and

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Apple sues over iPod gear

More frequently a target in legal disputes, Apple has filed a lawsuit of its own against general manufacturer Atico International. Atico is accused of a variety of patent infringements related to iPods, including ones for remote controls, the Universal Dock and three dock adapters; it is additionally accused of trademark infringements, involving the iPod mark and image, and perhaps most importantly the Made for iPod trademark, as Atico is said to be operating outside of the official Made for iPod program.

Atico products are sold under a number of different brands, such as the Living Solutions line sold at Walgreens stores. There the company has stereos, speakers and clock radios with built-in iPod docks. Apple's lawsuit was filed in the Delaware District Court, where no judge has yet been assigned to the case.

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Sprint's Instinct ships June 20, clashes with iPhone

Sprint today gave the Samsung Instinct its official ship date. The phone is now due to launch on June 20 and will represent Sprint's first attempt at a direct competitor to the iPhone, with a custom-designed interface that emphasizes media playback. Sprint also touts the device as its first non-business phone to support EVDO Rev. A Internet access and integrates GPS, on-demand voicemail, and access to Sprint's Internet video streaming services.

The cell carrier has stopped short of providing a price for the Instinct but is now timing the launch of the Samsung phone near that of an update to its Apple-made challenger from AT&T. An upgraded model of the phone with 3G support is believed to be ready for introduction at a Steve Jobs keynote on June 9th and is now expected by many to ship in mid-June.

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Singapore Airlines offers iPod, iPhone integration

iPods and iPhones are now supported on some flights out of the US, Singapore Airlines has announced. The company says that beginning today, business-class, non-stop A345 flights from Newark to Singapore will offer special 30-to-9-pin adapter cables to go along with its KrisWorld in-flight entertainment technology. This will allow passengers to not only listen to music through KrisWorld, but watch video on a larger LCD, and power their players at the same time.

In case of announcements, KrisWorld will temporarily interrupt any audio; the airline is also disallowing any calls on an iPhone, requiring owners to switch to Airplane Mode. Some other companies have begun experimenting with in-flight cellular service.

Singapore Airlines says it hopes to eventually expand iPod and iPhone support to all business-class A340-500 flights out of New York and Los Angeles, with the latter starting in August.

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LG Elec says "carefully watching" Nokia (Reuters)

SEOUL (Reuters) - LG Electronics (066570.KS), the worlds No.4 handset maker, is closely watching rival Nokia (NOK1V.HE) amid talk the top-ranked mobile phone maker may cut its prices and re-enter the South Korean market later this year.

Shares in LG Electronics tumbled more than 8 percent on Monday as investors gauged the impact of potential price cuts by Nokia. But an LG executive said the firm was generally positive about the industry this year.

"We are interested in the Korean market and investigating it, but we have not unveiled any products for that market," said Nokia spokesman Kari Tuutti, declining comment on future pricing.

LG shares ended down 3.8 percent, while Samsung Electronics (005930.KS), the worlds No.2 handset maker, closed down 4 percent. The main Korean market (.KS11) fell 1.5 percent.

"We are carefully watching Nokia," Chang Ma, LGs vice president for marketing strategy, told Reuters in an interview.

Analysts were split on the impact of a Nokia move.

"Nokias handset price cuts, if they actually happen, will certainly not be applied universally to all its models," said Lee Sung-june, an analyst at SK Securities.

"Besides, Nokia and LGs handset strategies are different in that while Nokia is more about offering cheaper models, LG is more focused on technologically advanced models."

John Park, analyst at Daishin Securities, noted that since LG had benefited from Nokia losing market share in North America, the Finnish firms possible expansion in that market could be a factor to watch for LG.

Ma said LG was also ready to seize any opportunities arising from difficulties at third-ranked Motorola Inc (MOT.N) and No.5 manufacturer Sony Ericsson (6758.T) (ERICb.ST).

Motorola has been losing market share to rivals after failing to follow up its blockbuster Razr phone, and Sony Ericsson saw its profit halved in the first quarter as demand slowed for its more expensive camera and music handsets.

"We see some risks from the economic slowdown, the rise of raw material prices and the possibility of unexpected moves by competitors, but we will compensate these risk factors with our product portfolio and our marketing strength," Ma said.

LG sold a record 24.4 million phones in January-March and looks set to beat its target of 100 million phones for the year.

First-quarter operating profit margin on handsets was 15.9 percent on a parent basis, almost double the previous quarters 8.3 percent and against 6.6 percent a year earlier.

Ma said he expected the handset division to post a "double digit" operating profit margin in the second quarter.

"The handset business remains strong in LGs overall earnings, accounting for as much as 80 percent of operating profit throughout 2008," said Daishins Park, though he added that handset marketing costs would likely grow and eat into margins in the third and fourth quarters.

In a separate interview, the head of LGs display division said the companys plasma business had suffered from lower than expected demand this year, but hopes to improve operating profits during the rest of the year.

"We are aiming to post better second-quarter operating profit ... from the first quarter," said Simon Kang, responsible for LGs plasma business, which makes screens for LGs own televisions and for external customers. "We also expect to post better operating profit in the second half from the first."

Kang acknowledged that demand from China had been slower than initially expected due to the snowstorm early this year and the recent earthquake.

LG is expected to post 2008 net profit of 2.5 trillion won, more than double last years 1.2 trillion won, according to Reuters Estimates.

(Additional reporting by Tarmo Virki in HELSINKI and Park Jung-yun and Park Ju-min in SEOUL; Editing by Ian Geoghegan)

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Nokia sells line fit automotive business to Novero (Reuters)

HELSINKI (Reuters) - The worlds top cellphone maker Nokia said on Wednesday it would sell its line fit automotive business to Germanys Novero GmbH.

Nokia did not disclose the value of the deal, but said it expected to complete the transaction by June.

Novero is owned by the former head of Nokias enhancements unit, Razvan Olosu, and German private equity firm Equity Partners.

Some 240 employees would be able to continue working for the units operations in Bochum, Dusseldorf and Detroit.

Shares in Nokia were 0.9 percent stronger at 18.46 euros by 1530 GMT, in line with the general Helsinki bourse index.

(Reporting by Agnieszka Flak; Editing by Richard Hubbard/David Hulmes)

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Memorial Day sale on carbon fiber iPhone case

Belch Co. is offering users a Memorial Day discount on its new carbon fiber iPhone case, which normally costs $80, available until midnight on Monday for $65. The new case offers almost complete chassis protection for the iPhone, leaving access to the dock connector, volume switches, and ring mute. Belch Co. says that the case only weighs seven grams, so it does not add a significant amount of weight to the device.

The case features a hard exterior, made of aerospace-grade carbon fiber, while the interior is lined with neoprene, which also adds a cushion against impact.

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Jays introduces m-Jays earpiece for iPhone

On Monday, Swedish designer and manufacturer of digital media accessories, Jays, announced the release of its m-Jays Music Adapter to allow its earphone range to be used with Apple's iPhone. The 3.5mm mini-plug is skinny enough to allow connection to the iPhone's recessed headphone port at one end, and any standard set of headphones with a similar jack on the other. Both are gold-plated.

A call answering button as well as a microphone are integrated into the unit, doubling its usefulness as a headset as well. The cord is approximately 35 inches long, allowing the m-Jack to act as an extension cord.

A two-year warranty is included with the adapter. Together with j-Jays stereo headphones, the adapter sells for an equivalent of about $77, and can be had for about $19 on its own.

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Windows 7 unveiled, has iPhone-, Mac OS-like features

Microsoft Chairman Bill Gates and CEO Steve Ballmer on Tuesday unveiled a small preview of the company's next operating system � tentatively referred to as Windows 7 � at the All Things Digital executive conference. The preview demonstrated the integration of multi-touch directly into all application layers, allowing users to use multiple fingers in Paint, resize and rotate photographs, and performing many actions similar to that of the iPhone.

The demonstration also showed Microsoft Virtual Earth, which can be navigated by touch in both "road" and "aerial" views. Users can search for a location, such as Starbucks, and touch the push-pin representing the desired location, and information about the caf� will appear.

In the photo management application, users are able to toss around and organize photos as though they were on a surface. Photos can be rotated, drawn on, zoomed, organized into a 3D slideshow, viewed in a grid mode, or scattered across the virtual surface.

Interactive, on-screen musical instruments, as well as several other possibilities were also shown. Gates hinted briefly that this would just be the beginning, that Microsoft would explore speech, gesture, vision, ink, and other near-future technologies.

In terms of interface elements, Windows 7 will allegedly bear even stronger resemblances to Mac OS X, with the presence of a Dock. Microsoft did not extrapolate on how the "dock" functions, but will most likely be revealed in the near future.

Windows 7 is supposedly about 18 months away from seeing store shelves.

[via Gizmodo]

Video: Multi-Touch in Windows 7

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Microsoft Expects Explosive Growth for Windows Mobile (NewsFactor)

Microsoft expects its Windows Mobile software to grow by at least 50 percent worldwide in this and the next fiscal years. According to a report by Reuters news service, Eddie Wu, Microsofts managing director of OEM embedded devices in Asia, projected the software giant will sell 20 million units with Windows Mobile in the fiscal year ending in June. In the last fiscal year, it sold more than 11 million units.

NOT OUT OF THE QUESTION

He added that growth of Windows Mobile devices is greatest in Asia-Pacific, the Middle East, Brazil, Russia and India. Windows Mobile is featured on a wide array of devices from Samsung, Motorola, High Tech Computer, Asus and others. Its main competitors include Symbian-based operating systems, such as those on devices by LG Electronics, as well as mobile operating systems on Apple, Research in Motion (RIM), and Palm products.

In a recent quarterly report, Microsoft said its Windows Mobile sales are due to increased market demand for "phone-enabled devices and Windows-embedded operating systems."

Avi Greengart, an analyst with industry research firm Current Analysis, called the sales projection "bold, but not out of the question."

He noted that Windows Mobile is being used by an increasing numbers of licensees, and in an increasing number of form factors. Its also being featured in new product lines, such as the Xperia line from Sony Ericsson.

In "classic productivity" devices, Greengart said, Windows Mobile is very strong, adding that were also seeing Windows Mobile devices in high-end multimedia smartphones.

EXPLOSION OF ENTRY-LEVEL SMARTPHONES

He pointed out that a key driver in the growth of Windows Mobile is the "explosion" in entry-level smartphones, especially in the U.S., but abroad as well. Customers are finding that, for a somewhat higher price than what they were expecting to pay, they can get a smartphone to track e-mail and do other tasks.

Worldwide, smartphone sales totaled nearly 12 million units last year, representing a growth of more than 50 percent over the previous year.

As it competes with the trend-setting iPhone from Apple, Microsoft said it will be offering full Web-browsing capabilities later this year. Earlier this year, the company showed a new version of its Internet Explorer Mobile browser. It said the new IE Mobile supports Flash and allows users to see full-screen Web pages and multimedia comparable to a desktop experience. Apple has not yet found a version of Adobes Flash that it likes enough to include in the iPhone.

Windows Mobiles competition with RIMs BlackBerry has led to an emphasis on productivity tools, such as mobile versions of its desktop-dominating Office suite. And Microsoft has been increasing the operating systems flexibility and ease of use -- for example, allowing music to be played from a devices home screen or making it easier to set up for Bluetooth connectivity.

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Italian designers Dolce and Gabbana in tax probe: report (AFP)

ROME (AFP) - Italian authorities are probing fashion designers Dolce and Gabbana,creators of luxury items ranging from clothes to beachwear, sunglasses, jewelry and mobile phones, for alleged tax evasion, a report said Saturday.

Milan tax officials claim Domenico Dolce and Stefano Gabbana set up two front companies in Luxembourg to conceal earnings of 260 million euros (404 million dollars) and thus pay less tax in Italy between 2004 and 2006, the La Republica reported without quoting a source.

They couple, who are widely considered two of Italys richest people, had no comment on the report when asked by the Italian news agency ANSA.

According to figures published online by the finance ministry, each earned some 29 million euros in 2005 and each paid more 12 million euros in taxes during that period.

The designs of their fashion house Dolce & Gabbana are popular in celebrity circles.

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Dubai's Tecom in talks with Dell, plans buyouts (Reuters)

SHARM EL-SHEIKH, Egypt (Reuters) - Tecom Investments, a telecom investor owned by the ruler of Dubai, is mulling a joint venture with Dell Inc. (DELL.O) and said it expects to make up to three acquisitions in the Middle East and Africa this year, including in a mobile phone firm.

At least one of the purchases is likely to be in the United Arab Emirates, of which Dubai is a member, Abdullatif al-Mulla, chief executive officer of Tecom Investments, said in an interview in Sharm el-Sheikh, ahead of a World Economic Forum conference.

Tecom has been in contact with Dell about a possible joint venture, Mulla said, declining to be more specific about Tecoms plans.

(Reporting by Will Rasmussen; Writing by James Cordahi; Editing by Amran Abocar)

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TouchTunes iTunes promo

TouchTunes is giving away iTunes material as part of a multi-pronged promotional strategy, according to an announcement. Visitors to bars and other public places can now queue Usher's "Love in This Club Part II," from one of TouchTunes' digital jukeboxes; by agreeing to submit an e-mail address, they can pre-order Usher's new album on iTunes with three bonus tracks, and meanwhile download the single, plus the original "Love in This Club" music video. The album otherwise goes on sale May 27th.

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iPod nano 1.1.2 update

Apple has released a new firmware update for third-generation (video) iPod nanos, bringing the software up to v1.1.2, as on the iPod classic. The update is available only through iTunes, and is not described on Apple's support pages; accompanying release information, however, indicates that it is a minor update, addressing miscellaneous "bug fixes." Installing the update simply requires synching a Nano with an Internet-connected computer.

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Mophie Ratchet for iPhone, new iPods ships

iPod accessory manufacturer Mophie today unveiled the Ratchet 360� Belt Clip Swivel case for the iPhone, iPod touch, 3G Nano and Classic. The case includes a Base Case silicone sleeve, which the Ratchet then tightly grips from the sides, and pivots to store the device at any angle. Mophie offers the Ratchet 360� in two color combinations: pink/black, and grey/black, with a clear Base Case. It is currently selling for $20 for the iPod nano and Classic, while the iPhone and Touch model sell for $30.

�With Ratchet, we�ve given consumers a wide array of options to carry their iPods and iPhones,� said Ross Howe, Sales and Product Development Director for mStation and mophie. �You can clip it to your belt, pocket, backpack, etc. providing easy access to your media no matter what you�re doing, and because the Ratchet and Base Case are designed for each other, you never have to remove your iPod from one to use the other.�

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Japan panel urges limit on mobile phone use by children (AFP)

TOKYO (AFP) - A Japanese government panel called on parents and schools Monday to help limit the use of mobile phones by children to prevent them from accessing "harmful" information on websites.

The advisory council on education made the proposal to Prime Minister Yasuo Fukuda as children become more prone to crimes involving dating websites and bullying on Internet school bulletin boards.

The panel said it would urge "parents, schools and other people concerned to cooperate in preventing elementary and junior high school students from using mobile phones unless it is necessary."

It called for limiting mobile phone use just to calls.

These measures are necessary to "protect children from harmful information and other negative influence involving the use of mobile phones" including "crimes and bullying," the report said.

Press reports have linked some crimes by children to dating websites.

"It is true that the use of mobile phones causes various problems," Fukuda told reporters. "I think the panel has made timely discussions on the problem."

He added: "First of all, I wonder if there is any need for children to possess mobile phones."

The panel also recommended that English be made compulsory for children in their third year at elementary school, instead of the current first year at junior high school.

The government will take the proposals into consideration in working out its policy guidelines next month.

While about a third of Japanese primary school students aged 7-12 use mobiles, by the time they get to high school that figure rises to 96 percent, according to a government survey last December.

There are fears for students safety as only about one percent of them have blocks on potentially harmful material, meaning they could reveal personal information, making them prey for fraudsters and paedophiles.

But even on protected sites such as school bulletin boards, bullies are able to anonymously post comments without teacher oversight or intervention.

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Vodafone CEO Sarin to Step Down (PC World)

Vodafone Group CEO Arun Sarin will step down as head of the mobile operator, the company said Tuesday.

More to follow.

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Vodafone yearly profits up, CEO to step down (AFP)

LONDON (AFP) - Mobile phone giant Vodafone unveiled a 5.7-percent rise in operating profits on Tuesday and announced that chief executive Arun Sarin would step down at the end of July.

Sarin leaves after five years at the helm and will hand over the reins to deputy chief executive Vittorio Colao. Vodafone chairman John Bond said Sarin had done a "tremendous" job during his time in charge.

The news came as Vodafone reported its full-year figures, revealing adjusted operating profits of 10.1 billion pounds (12.7 billion euros, 19.9 billion dollars) for the 12 months to March 31.

Underlying pre-tax profits rose 2.0 percent to 8.93 billion, the group said in a statement.

India-born Sari, 53, joined Vodafones board in 1999 and became chief executive in July 2003, enduring a rocky patch in 2006 when nearly 10 percent of shareholders voted against his re-election.

But the company has since outperformed profit forecasts, enjoying big revenue growth in fast-growing markets such as India and Turkey. In January, the firm revealed that most of its clients were now outside western Europe.

Sarin helped steer the firm, which sponsors Englands cricketers, through the wreckage of the dotcom crash and has boosted its customer base from 120 million to 260 million globally.

"It has been a privilege to lead Vodafone for the last five years and to have been involved in the company for such a long time," he said in a statement.

"I feel that I have accomplished what I set out to achieve, particularly in developing and implementing a new strategy.

"I am very proud of what Vodafone and its 71,000 people have achieved and the good momentum we have in the marketplace.

"I know that the business is in capable hands with Vittorio Colao. Having worked with him for many years I know that he has the experience and vision to take Vodafone on to future success."

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Microsoft sees Windows Mobile unit sales up 50 pct (Reuters)

TAIPEI (Reuters) - Microsoft Corp (MSFT.O) expects global unit sales of its Windows Mobile software for cellphones to grow at least 50 percent per year in fiscal years 2008 and 2009 as demand for smartphones rises rapidly.

"Fifty percent growth is the minimum," Eddie Wu, the software companys managing director of OEM embedded devices Asia, told Reuters on the sidelines of a news conference on Tuesday.

He said Microsoft expects to sell 20 million units in its 2007/2008 fiscal year ending in June, and expects to grow at least 50 percent annually over the next two years. It sold over 11 million units of its Windows Mobile software in its 2006/2007 fiscal year ended June.

"Were actually still seeing very good growth (for our mobile software) in markets like Europe and the United States," said Wu.

Wu added that growth of Windows Mobile is seen fastest in Asia-Pacific, Middle East, Brazil, Russia and India.

Microsofts mobile communications division provides operating systems for smartphones and other mobile devices based on the Windows Mobile platform. Its clients include South Koreas Samsung Electronics (005930.KS), Motorola (MOT.N), High Tech Computer (HTC) (2498.TW) and Asustek Computer (2357.TW).

Microsoft competes against Symbian-based operating systems which are used by vendors such as Nokia (NOK1V.HE) and LG Electronics (066570.KS).

It also faces stiff competition from other players such as Apple Inc (AAPL.O), Blackberry maker Research in Motion (RIMM.O) (RIM.TO), and Palm Inc (PALM.O).

"Even if Microsoft is growing at a rate of 50-60 percent, it doesnt mean they can gain that much share since Microsoft and Apples mobile operating system is still much smaller compared to the Symbian system," said Citigroup analyst Kevin Chang.

"But they (Microsoft) are one of the few players which are offering touchscreen platforms so that is helping them grow," said Chang, adding that vendors such as Sony Ericsson may soon also launch touchscreen smartphones with Windows Mobile.

Global smartphone unit shipments grew 52.5 percent from a year ago to hit around 12 million units in 2007, based on data by Gartner, and the market is set to continue to increase in high double-digits in 2008 and in 2009, analysts said.

Microsoft also said earlier this year that it would offer full Web browsing capabilities for mobile phones in the third quarter this year, following in the footsteps of Apples iPhone, which has won praise for the way it displays Web sites as they would appear on a computer.

(US1=T30.5)

(Reporting by Sheena Lee, Editing by Baker Li and Anshuman Daga)

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Israel's Altair to supply chips to Japan (Reuters)

TEL AVIV (Reuters) - Israels Altair Semiconductor, which develops chips for fourth generation (4G) mobile services, said on Tuesday it will supply the chipsets for wireless devices operating on Willcom Incs Personal Handyphone System in Japan.

The companies did not disclose financial details.

Willcom, which is controlled by Carlyle (CYL.UL), held 4 percent of Japans mobile market at the end of March.

Dwarfed in a market dominated by mobile phone carriers NTT DoCoMo Inc (9437.T) and KDDI Corp (9433.T), Willcom has been focusing on high-end pricey phones with PC-like capabilities.

Under terms of the agreement between the two companies, Altair said it will supply its ultra-low power and high performance chipsets to Willcoms authorized mobile handset and handheld device manufacturers.

Willcom, one of only two licensees of 2.5GHz mobile broadband spectrum in Japan, will deploy its next generation network using technology aimed at achieving higher capacity and lower cost compared with 3G and 3.5G cellular technologies.

Altair co-founder Eran Eshed said the cellular industry will eventually migrate to next generation broadband technology, which includes the technology known as wireless WiMax.

In contrast to WiFi, which only works near a transmitter, WiMax provides Internet access over long ranges and can be used while the user is traveling by car or train.

"Wireless and broadband are the future of how people will connect to the Internet," Eshed told Reuters in a recent interview.

Altairs ultra-low power, high performance mobile chips take high-speed wireless Internet access beyond notebooks and USB adaptors to battery-operated handheld devices.

The company is privately held and has raised a total of 26 million in two rounds of financing.

(Reporting by Tova Cohen; editing by Sue Thomas)

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Japan urges limiting kids' cell phones (AP)

TOKYO - Japanese youngsters are getting so addicted to Internet-linking cell phones that the government is starting a program warning parents and schools to limit their use among children.

The government is worried about how elementary and junior high school students are getting sucked into cyberspace crimes, spending long hours exchanging mobile e-mail and suffering other negative effects of cell phone overuse, Masaharu Kuba, a government official overseeing the initiative, said Tuesday.

"Japanese parents are giving cell phones to their children without giving it enough thought," he said. "In Japan, cell phones have become an expensive toy."

The recommendations have been submitted from an education reform panel to Prime Minister Yasuo Fukuda's administration, and were approved this week.

The panel is also asking Japanese makers to develop cell phones with only the talking function, and GPS, or global positioning system, a satellite-navigation feature that can help ensure a child's safety.

About a third of Japanese sixth graders have cell phones, while 60 percent of ninth graders have them, according to the education ministry.

Most mobile phones in Japan are sophisticated gadgets offering high-speed Internet access called 3G, for "third-generation."

But the panel said better filtering programming is needed for Internet access to protect children.

Some youngsters are spending hours at night on e-mail with their friends. One fad is "the 30 minute rule," in which a child who doesn't respond to e-mail within half an hour gets targeted and picked on by other schoolmates.

Other youngsters have become victims of Internet crimes. In one case, children sent in their own snapshots to a Web site and then ended up getting threatened for money, Kuba said.

Cell phones tend to be more personal tools than personal computers. Parents find that what their children are doing with them are increasingly difficult to monitor, Kuba said.

Some Japanese children commute long distances by trains and buses to schools and cram-schools and parents rely on cell phones to keep in touch with their children.

Parents typically pay about 4,000 yen ($39) a month for cell phone fees per child.

Japan boasts a relatively low crime rate compared to other industrialized nations, but some people are concerned that the Internet could be exploited for serious crimes.

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Market For Securing Mobile Devices Yet To Take Off (TechWeb)

BOSTON - The market for software to protect mobile devices such as smartphones has yet to take off despite brisk sales of devices such as Research in Motions BlackBerry and Apples iPhone.

Symantec Chief Operating Officer Enrique Salem estimates that it is currently worth a few hundred million dollars a year.

"It is growing. But given the number of handsets, the number of smartphones, you would think it would be growing at a much higher rate," Salem told the summit. "I cant give you an exact number but it is not as fast as you might think."

Like Symantec, McAfee sells security products for mobile devices and has more in the works.

"Certainly we see opportunity there," McAfee CEO Dave DeWalt told the summit.

For now, security on mobile devices is seen as an extra feature on programs designed to fight malicious software on personal computers and laptops, said Mike Haro, senior analyst with Sophos, the largest privately held security software maker.

But that is starting to change, he said.

"Customers are beginning to look at what their strategy is for smartphones," he said in an interview.

Some of the most sophisticated security products for mobile devices are available in Japan, where carriers like NTT DoCoMo offer security software that customers can download onto their phones. They pay a monthly subscription fee to use the software, Salem said.

"You are starting to see more and more of that type of strategy being deployed. It is another service for them that they can make money off of, as well as important protection to the device itself," DeWalt said at the summit.

Experts say that one reason for the slow growth is that unlike the world of personal computers -- where Microsofts Windows operating system sits on the vast majority of machines that are shipped -- a dominant platform has yet to emerge for mobile devices.

That makes them less attractive to hackers, who dont want to bother worrying about developing technology to break into multiple systems.

"If youre a bad guy looking to make money off of somebody, you want to spend the least amount of effort to do that. The quickest path to riches is usually the fast one," said Andrew Jaquith, a security analyst with The Yankee Group.

So the chances of getting hit by a hacker are far smaller than those of data on a lost mobile device being compromised when somebody picks it up from the back of a taxi.

"If were talking security on smartphones, we are talking about encryption, or we are talking about remote wipe," Jaquith said.

Mark Rasch, managing director for technology at FTI Consulting, says his firms clients are increasingly asking whether they should be worried about mobile phone security.

He says that they should be worried about risks associated with loss of the devices, rather than the prospects of a rogue hacker breaking in.

Mobile encryption and remote wiping software are necessary to keep those devices safe and are effective in doing so when the right products are used, said Rasch, an attorney who spent 25 years prosecuting computer crimes for the U.S. Department of Justice before moving to FTI.

"You can have extraordinarily secure mobile communications," he said. (Reporting by Jim Finkle, editing by Gerald E. McCormick)
By: Jim Finkle

Copyright 2008 Reuters. See original article on InformationWeek.com

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Jawbone's Bluetooth Headset Merges Tech and Style (NewsFactor)

New legislation prohibiting drivers from talking while behind the wheel, combined with a demand for more fashionable and advanced devices and more sophisticated phones, is driving Bluetooth headset makers to innovate. The latest addition to the wireless world is Aliphs Jawbone with NoiseAssassin technology.

Aliph set out to blend science with beauty in a new design thats 50 percent smaller than the original Jawbone and features noise-elimination technology that promises better voice quality. The new headset is available exclusively at AT&T retail stores and at Jawbone.com.

"In creating the new Jawbone we focused on improving our audio performance beyond the market-leading noise solution that we already had, and elevating the design to a point where it would appeal to a broad range of consumers who would love to wear it," said Hosain Rahman, CEO and cofounder of Aliph. "Jawbone provides amazing audio quality in a form factor that is a true lifestyle accessory -- its a new and complete departure from the typical gadgetry of the Bluetooth category."

EXPLORING NOISEASSASSIN

The new Jawbone features military-grade NoiseAssassin technology, designed to address real-world noise environments like busy streets, cars and airports. Aliph said it has 10 times better voice clarity than competing headsets -- meaning it transmits 90 percent less noise.

Jawbones NoiseAssassin offers a patented Voice Activity Sensor (VAS). The Jawbone headset uses the VAS to distinguish the sound of your voice from ambient noise and then uses proprietary Digital Signal Processing (DSP) algorithms to subtract the noise so only the sound of your voice comes through.

NoiseAssassin was originally developed by Aliph for DARPA (Defense Advanced Research Projects Agency), which creates and delivers technology for the U.S. military.

HEADSET OR EARWEAR?

The new Jawbone is designed to look and feel like an accessory along the lines of jewelry and eyewear. It offers a customized fit with three sizes of earbuds and four ear loops that can be worn on either ear -- two sizes of soft, stitched leather ear loops and two sizes of slim ear loops, ideal for use with eyeglasses.

"This new product is fashion-conscious. It is designed to be not only functional but also appealing in terms of form; something you really wouldnt be embarrassed to wear or self-identifying yourself as a geek or technology aficionado. Thats important," said Michael Gartenberg, an analyst at JupiterResearch.

In a commodity market where Bluetooth headsets are a dime a dozen, he continued, Aliphs ability to stand out with a product like Jawbone is significant and raises the bar for what customers can expect going forward. The new Jawbone is not a dime a dozen in more ways than one. It sells for $129.99 in matte black. Silver and rose-gold colors will soon be added.

"Consumers view technology as an extension of themselves. Their phones are an extension of their persona," Gartenberg said. "People are really paying attention, particularly younger demographics and women, and they are saying that how a product looks is as important as it performs. They want a sense of style."

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Say Goodbye to Muni-Fi (PC World)

In late 2004, the idea of city-wide Wi-Fi networks was electric. These metro-scale Wi-Fi networks would cross the chasm of the digital divide by bringing affordable broadband to low-income parts of major cities, and broadband of any kind to marginal neighborhoods, small towns, and largely rural counties. In mid-2008, the juice has drained out; yesterday, the last of the three major independent city-wide Wi-Fi network builders, MetroFi, said theyre pulling the plug. EarthLink, another of the large providers, had already given notice of their exit in August 2007, and filed suit this week to remove the equipment for their flagship Philadelphia network. (Kite, a provider mostly in the Southwest, abandoned their Wi-Fi networks starting in early 2008.)

MetroFi predates the muni-Fi movement, having being founded in the early part of the century when broadband penetration via cable and DSL was still modest in many parts of the U.S., prices were high, and current and future speeds were low and expected low. Wi-Fi could compete admirably against these wired networks, it was thought, and against the weak first wave of third-generation (3G) cellular, on price, speed, and availability.The incumbents dont stand still, and Wi-Fi, designed for interiors, didnt scale well. While it turns out to be possible to build a large-scale seamless Wi-Fi network that delivers from 1 to 4 Mbps of service outdoors to a laptop, and indoors through a $100 to $200 signal booster, it also proved true that a provider needed two to three times the number of Wi-Fi nodes across a city to achieve those speeds than was estimated when networks were largely bid out in 2005 and 2006. If you budgeted for 20 to 25 nodes per square mile and need nearly 50 of these multi-thousand-dollar transceivers, its hard to imagine how that affects the bottom line. USI Wireless, which biult Minneapoliss network, appears to be the only firm that got the numbers and engineering to add up for them so far.

Meanwhile, AT&T, Sprint Nextel, and Verizon Wireless all moved their 3G networks into the next generation, with speeds they peg at 600 Kbps to 1.4 Mbps for average downstream rates, with higher peak rates. Thats what they say, but I just tested a new Sprint USB modem in my office--nestled inside a building--and crossed 2 Mbps for sustained downloads quite easily. True, the 3G services have 5 GB monthly combined upstream and downstream limits (except Sprint), and cost $60 per month with a two-year contract. But theyre there, and they seemingly deliver. WiMax and the widely committed Long Term Evolution (LTE) standard for cellular network evolution will bring even higher speeds over the next 2 to 4 years, rivaling todays fast wired broadband.Wi-Fi was ahead of its time for city-wide deployment: In 2004, it seemed like the best choice because everyone had or could easily get an adapter; no one owned the spectrum; and the cost of broadband was high, unevenly available, and not clear how much better it would get. Its a lot different in 2008, which relegates municipal Wi-Fi to more of a niche market, perhaps, oddly enough, as a good outdoor-only technology for purely municipal purposes.

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Garmin is mystery bidder for Raymarine: paper (Reuters)

LONDON (Reuters) - U.S. mobile navigation device company Garmin Ltd (GRMN.O) is the mystery bidder behind a takeover approach for Britains Raymarine Plc (RAY.L), the Sunday Telegraph reported, citing sources close to the deal.

Garmins approach could be worth as much as 200 million pounds (389 million), it said.

Raymarine, which makes navigation equipment for the marine market, said last month it had received an approach from an unnamed party, sending its shares rocketing.

The UK company makes a range of nautical devices including satellite navigation for boats, autopilots, satellite radio and radar systems. It is seen as an attractive target for larger players as the market for satellite and mobile navigational devices consolidates.

A number of private equity companies are also thought to be eyeing Raymarine, the Sunday Telegraph said.

Officials at Raymarine were not immediately available to comment.

(Reporting by Ben Hirschler; Editing by Jason Neely)

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Review: Foneshow makes podcasts available by cell phone (AP)

BOSTON - A new service named Foneshow offers a quick and easy way to access the downloadable radio shows known as podcasts. Instead of synching your music player to a PC to get audio clips that interest you, Foneshow lets you listen to podcasts on demand from your cell phone.

In a way Foneshow is an update of old-fashioned telephone information lines, those 1-900 numbers offering sports scores or weather updates. There are two main differences: Foneshow is free, and its pool of content is potentially vast, since any podcast on the Internet can be converted into a Foneshow.

When I tested the service I found it easy to use. I liked being able to squeeze podcasts into little slices of the day, on a whim. When I had to sit in my car for a few minutes, waiting for 9:30 a.m. to strike so my parking spot shifted from tow zone to legitimate, I entertained myself by dialing up a mock news show by The Onion. While waiting for a train, I tried to get smarter with a minute-long science show from Scientific American.

You sign up for Foneshow online. You enter your cell phone number but don't have to give any other information. Then you select which of the few hundred available podcasts you want to subscribe to. Some last a minute, others an hour or so.

The variety should multiply because Foneshow doesn't hand-pick all the content. Anyone can post a podcast's Internet feed to Foneshow, which will relay it.

Once you subscribe to a Foneshow, the service sends a text message to your cell phone the instant a new segment is available. The text message reveals the number you have to dial to hear the podcast. That's especially simple to do if your phone, like most, will automatically call a number embedded in a text if you hit "Send" while viewing the message.

When the audio is playing, you can pause, rewind or fast-forward the file with the phone's number keypad. If you hang up in the middle, Foneshow will resume from where you left off if you call back.

Foneshow hopes to fund itself largely through advertising, but in this early stage of the service it's unclear how obtrusive those ads might be. Right now the text messages come with easily ignorable ads at the very bottom.

The downside of listening to audio clips on the phone is that well, you're on a cell phone. You're likely out and about, not in a quiet place where it's easy to hear a prerecorded broadcast.

Also, this service probably will work only for people with unlimited text-messaging plans. If you lack such a plan and pay 20 cents per message, a common rate charged by wireless carriers, subscribing to a few Foneshows suddenly gets expensive.

Fortunately for the pay-as-you-go people and for people who might find endless text reminders annoying, Foneshow lets you click an on-vacation box on its Web site to temporarily stop the messages.

Another flaw is that once you're given a number to dial for a Foneshow, you can call it only from your cell phone, not a landline. The service will not connect a call made from numbers its caller ID doesn't recognize.

That rule exists because allowing calls from any phone could swamp Foneshow's Internet-based network, forcing Foneshow to buy a bigger bank of phone numbers to handle incoming calls. But Foneshow should slightly relent and let people subscribe from one or two landlines in addition to their cell phones.

Otherwise potential users might face the dilemma I found a few times, when I decided against calling for a Foneshow because I didn't want to eat up minutes on my wireless plan. However, I would have been happy to call from the office phone in a slow moment at work. Not that those exist, of course.

___

On the Net:

http://www.foneshow.com

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EarthLink Backs Out of Philly Wi-Fi Deal (NewsFactor)

EarthLink has notified its Wi-Fi customers in Philadelphia that the broadband service provider will soon be terminating its metropolitan Wi-Fi service in the city. The company, which stopped accepting new customers to the network in early May, said it would provide its Philly customers with a 30-day grace period through June 12 to transfer to another provider.

EarthLink incoming CEO Rolla Huff decided last November that there was no money to be made from metropolitan Wi-Fi. "After thorough review and analysis of our municipal wireless business," he said, "we have decided that making significant further investments in this business could be inconsistent with our objective of maximizing shareholder value."

Houston subsequently elected to allow EarthLink to back out of its deal with the city, and the broadband provider is currently in negotiations to ease out of its contract with Anaheim, Calif. However, finding a graceful way of out its agreement with Philadelphia has been problematic.

FINDING AN ALTERNATIVE

EarthLink says it has been trying to reach an agreement for months on a free transfer of its entire $17 million Wi-Fi network in Philadelphia. Moreover, the company said it had even offered to sweeten the deal with cash payments and the donation of new equipment.

"Unfortunately, our hope that we could transfer our network to a nonprofit organization that had planned to offer free Wi-Fi throughout Philadelphia will not be realized," Huff said. "Since we have exhausted our efforts to find a new owner of the network, our only responsible alternative now is to remove our network at our cost, and assist our Wi-Fi customers with alternative ways to access the Internet."

EarthLink has filed a proceeding in federal court seeking a declaration that EarthLink may remove its equipment from the citys streetlights. The lawsuit also attempts to limit EarthLinks potential liability in Philadelphia to $1 million or less.

HOUSTON, WEVE GOT A PROBLEM

Wireless Philadelphia CEO Greg Goldman said that transfer of the EarthLink network is by definition a complex, time-intensive, multiparty transaction, and there is nothing in his organizations 10-year network agreement with the operator to provide access "that would permit EarthLink to unilaterally impose deadlines for the networks transfer, turn off the network, or remove network equipment."

"Wireless Philadelphia and the city are still working actively together to identify alternatives for preserving this network and applying it to numerous civic, commercial and social purposes," Goldman said. "We remain optimistic for an orderly resolution of this matter."

Metropolitan Wi-Fi may be down on the mat in Philly, but dont count the city out of the fight just yet, if Houstons experience is anything to go by. After EarthLink missed its deadline for starting work on Houstons network, the network provider paid $5 million to get out of its agreement with the city, according to media reports.

Houston currently plans to spend $3.5 million to start work on one of 10 "Wi-Fi bubbles" targeting low-income housing areas representing a population of nearly 480,000 residents and more than 160,500 households. Houston is also pondering several other ways to bring free Wi-Fi to city residents.

For example, the city is currently considering possible mixed-use approaches for extending free Wi-Fi access to Houston residents and visitors alike. Moreover, Houston said in a recent request for information document that it might also attempt "to simultaneously monetize excess network capacity through the use of ad-based hot-spot business models."

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Apple user account patent

Apple has been working towards increasing the portability of user data, a newly-published application at the US Patent and Trademark Office reveals. While Mac OS X already supports multiple user accounts, guests on a machine must either create their own account, or rely on someone else's. The proposed Apple scheme would let users carry their user settings from one computer to another on a portable device, much as some USB flash drives attempt to do on Windows PCs. In the same manner, portable accounts could be password-protected.

A difference is that like a backup drive, the Apple device would also carry with it the contents of a user directory, so that key files or just chosen ones are always accessible. The company further proposes that settings and data could be carried on a media player rather than a dedicated drive, likely meaning that the technology is intended for iPods and iPhones. While users can already sync some personal data with Apple handhelds, the company has never had a simple solution for transporting the bulk of it.

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First iFund-backed devs

The iFund -- a $100 million resource set up by venture capital firm Kleiner Perkins Caufield 10 others are said to be under serious consideration.

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Apple fighting Swiss levy

Apple is resisting a blank media levy imposed by the Swiss government, according to local newspaper Basler Zeitung. The levy is managed by SUISA, the Swiss Society for the Rights of Authors of Musical Works, and is intended to compensate labels and musicians for the effect of piracy. It applies to all media players sold in the country, but Apple is said to be arguing for exemption, on the basis that Swiss iPods sold online are actually shipped out of Ireland.

The levy may be having significant impact on both Apple and the public, as the fees on RAM-based players are said to be extremely high. It is currently set at 42 CHF per player, but until April 1st it was even greater, at a cost of 153 CHF for a 32GB iPod touch. Apple insists it has not passed the price difference on to shoppers, but anecdotes claim that a recent price drop was equivalent to the drop in the levy.

Apple will soon be launching the iPhone in Switzerland, but it is unclear whether the product will be classified as a media player.

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PhoneView 2.0 ships

Ecamm has announced the release of PhoneView 2.0, a new edition of a program formerly known as MegaPhone. The software lets iPhone and iPod touch owners manage the contents of their devices, beyond just music, videos and photos to include notes, contacts and SMS messages, as well as call histories. Notes can be automatically created from PDF and Word files as well as regular text documents. For backup or transport purposes, any collection of Mac files or folders can be copied over.

The v2.0 software introduces searches, and lets users add and edit notes without rebooting for each alteration. Similarly, undo and redo commands for notes have been added. Also new is full access to an iPhone's Contact List, and the automatic archival of SMS and call history. Finally, files are saved with correct creation dates, and synched photos can be browsed by album. PhoneView 2.0 costs $20, and requires Mac OS X 10.4.11 and iTunes 7.3.

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H20 iSH2 Shuffle headset

Accessory maker H20 has introduced a new product for iPods, the iSH2 headset. The unit is designed explicitly for second-generation Shuffles, and waterproofs them to a depth of 10 feet. The Shuffle is safeguarded in a case on the back of the head, which still has controls for playing, pausing and skipping tracks; the silicon earbuds are meanwhile designed to hold out water, when used in tandem with included earplugs, and can clip to swimming goggles.

Alternately, owners can use the headset with the bundled sportband. Two sets of earplugs are included in the package, which selling for $80 online and at Apple Stores.

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