Saturday, April 30, 2005

AOL's AIM to get an extreme makeover

AOL's AIM to get an extreme makeover Beta version of next-generation AIM now available for download

By Juan Carlos Perez, IDG News Service April 29, 2005

America Online (AOL) is giving its AIM instant messaging software a complete overhaul, including a major redesign of the user interface and a remodeled underlying code architecture. The user interface is being altered to take into account that instant messaging now goes beyond simple PC-to-PC text exchanges and also includes video and audio communication, as well as connections with wireless devices.

Meanwhile, the code architecture is being transformed to integrate into the product some important software advancements that have become available in recent years.

A early beta version of this next-generation AIM, code-named Triton, is now available for free download at http://beta.aol.com/.

"This [early] beta is the first of many steps we're taking to improve this application. Over the coming months going into the fall what you'll see is that every few weeks there will be an incremental improvement made to the product," said Chamath Palihapitiya, vice president and general manager of AIM and ICQ at Dulles, Virginia-based AOL. "By the end of the fall, it will be more than a beta, more of a full product that we feel comfortable upgrading people to and recommending as a next step for AIM."

Before Triton exits its beta, or test, phase, there will be one last upgrade to the current AIM 5.9 software, an initiative that isn't related to the Triton project.

AOL is designing a light and clean Triton interface that makes it easier to organize multiple simultaneous AIM communications. AOL noticed that users often are communicating with nine or 10 people simultaneously, using text messaging with some, and voice chat and video chat with others, Palihapitiya said.

To that end, the Triton user interface features tabs to easily toggle among ongoing sessions with multiple people and among different communications options, such as text messaging, voice chat, file transfers or online games.

"We really needed to find a way for people to organize [their AIM experience]. The Triton user interface helps you eliminate a lot of the clutter and lets you organize your communications a lot more effectively," Palihapitiya said.

Regarding the underlying architecture, AIM is getting rebuilt "from the ground up," baking into it the latest networking, code development and code compiler technologies, with the ultimate goal of extending the functionality of the application and making it easier to use, Palihapitiya said. "It allows us to do a lot of configuration and quality of service and management on behalf of the user so that all they have to do is decide: Who do I want to reach and how do I want to communicate with them," he said.

Other specific new features in Triton include:

-- Multiparty voice chat, whereas the current AIM software only supports one-to-one voice chat;

-- an IM Catcher feature that intercepts messages from senders not on the user's contact list and lets the user preview the message and decide whether to accept it, ignore it or report it to AOL as an unsolicited commercial instant message, or spim.

Downloading the Triton beta will not remove AIM 5.9 from users' machines, nor should users remove AIM 5.9 manually either, since the Triton beta lacks some key AIM features, such as live video instant messaging and file transfer, and, as is common with software in test phase, it has bugs; a list of these "known issues" can be found at the AOL Beta site. This current Triton beta only works on Windows XP PCs.

Thursday, April 28, 2005

Nokia Unveils Digital-Music Player In a Cellphone

 

Nokia Unveils Digital-Music Player In a Cellphone

By DAVID PRINGLE
Staff Reporter of THE WALL STREET JOURNAL
April 28, 2005

Nokia Corp., the world's largest cellphone maker, unveiled its first handset with a built-in hard drive, taking aim at the market for iPods and other stand-alone digital-music players.

Nokia, of Espoo, Finland, said the cellphone, earmarked to go on sale world-wide in the fourth quarter, will be able to store 3,000 songs and have a built-in Wi-Fi radio and camera. Dubbed the Nokia N91, the device will have a retail price of about €700, or about $908, before any subsidies by cellphone-service providers, Nokia officials said. That price compares with about $200 for an iPod mini with a similar storage capacity; the number of songs that can be stored varies because of different compression techniques. IPods are made by Apple Computer Inc.

[Nokia N91]
Nokia's N91, which has a built-in hard drive, will retail for about $900.

Nokia's N91, unveiled alongside two high-end camera phones at a news conference in Amsterdam yesterday, underlines how cellphone makers are trying to displace other electronic gizmos as they search for sales growth. Motorola Inc., Schaumburg, Ill., Samsung Electronics Co. of South Korea and Sony-Ericsson Mobile Communications Ltd., a joint venture between Sony Corp. of Japan and Sweden's Telefon AB L.M. Ericsson, are among the other cellphone makers aggressively targeting the digital-music-player market.

While the Nokia N91 is more expensive than Apple's iPod, Nokia says the cellphone should be attractive to music buffs because of its ability to download music via third-generation cellphone networks or via the Internet using the short-range wireless standard Wi-Fi. Nokia said the N91 will be able to play music for 12½ hours, compared with about 18 hours for the iPod, on one battery charge.

"Stand-alone music players are not as interesting as they used to be," said Anssi Vanjoki, head of Nokia's multimedia division.

Some analysts, however, say many people will still prefer to buy devices that just do one thing well. "Most of these [Nokia] products are technically impressive," said Ben Wood, an analyst based in London with research firm Gartner Inc. "But converged devices are inherently a compromise."

Apple, of Cupertino, Calif., couldn't be reached for comment.

Still, Apple, which has licensed its music-player software to Motorola, also is looking at the market for cellphones that double as music players.

Jorma Ollila, Nokia's chief executive, said his company plans to ship 40 million handsets with a built-in music player this year. However, many of these will only be able to hold a small number of tracks and aren't a realistic substitute for a specialist digital-music player. Apple said it shipped 5.3 million iPods in the first quarter.

Nokia also said it has signed an exclusive agreement with lens maker Carl Zeiss AG to use the Oberkochen, Germany, company's lenses in camera phones. Nokia said the Carl Zeiss lenses will improve the quality of pictures taken by camera phones.

The first handset, the Nokia N90, to include a Carl Zeiss lens is earmarked to go on sale world-wide in the third quarter and to be priced at €700 before any subsidies by cellphone-service providers.

Despite the high-quality lens, the Nokia N90 will only have a camera capable of taking still pictures comprised of two million pixels -- a much lower resolution than most stand-alone digital cameras or some of the camera phones developed by Samsung.

Still, Nokia officials said the N90 handset will also be able to record video pictures well enough to be viewed full screen on a laptop computer.

Thanks to an improving product portfolio, Nokia's share of the wider cellphone market climbed to 31% in the first quarter from 28.5% a year earlier, according to figures from research firm Strategy Analytics. Last week, Nokia estimated its market share at 32% in the first quarter. Strategy Analytics said that industry shipments of cellphones totaled 172 million in the first quarter, up 10% from a year earlier.

Write to David Pringle at david.pringle@wsj.com1

URL for this article:
http://online.wsj.com/article/0,,SB111462022403018448,00.html

Hyperlinks in this Article:
(1) mailto:david.pringle@wsj.com

Networking Online

 

Networking Online

Here's a look at a number of social and business networking sites and what you have to do to join.

SITE FOCUS HOW TO GET IN
www.asmallworld.net12 A self-described "high-end" networking site. Features include a hotel and restaurant guide for 60 cities. There's also a directory for limousine companies and yacht brokers. A hand-picked group of members are still allowed to invite new people. Many of them live in regions where the site wants more members.
www.catch27.com13 Users appear as baseball cards and can trade their friends for hotter, smarter ones. Anyone can join, but founder rejects those whose answers aren't smart enough for her tastes.
www.closedsociety.net14 Aims to be a place where friends can benefit from each others' networks. Features a directory, forums and member blogs. You need to be invited by a member or apply to be invited by one of the site's membership "ambassadors."
www.friendster.com15 Helps connect friends with their friends' friends to find everything from a date to former classmates. Features blogs, chat and discussions. Anyone can join
www.funhi.com16 "The most exclusive club on the Net," it claims. It features casting calls for television shows, and organizes member profiles based partly on the amount of "virtual" gifts users buy for others. Currently, anyone can join. The site plans to limit membership soon. The site "bounces" users lacking style.
www.linkedin.com17 Helps people find business contacts and job candidates. Users can only approach strangers if a mutual contact forwards a request to connect. Also features job listings. Anyone can join
www.myspace.com18 Helps connect people who share interests such as music and fashion. Features profiles from bands listing their upcoming shows. Anyone can join
www.ryze.com19 Helps people find jobs and make sales using their extended business network. Trade associations can host networks on the site where their members can interact. Anyone can join

URL for this article:
http://online.wsj.com/article/0,,SB111455358049717577,00.html

Hyperlinks in this Article:
(1) http://online.wsj.com/email
(2) http://online.wsj/email
(3) http://www.friendster.com
(4) http://www.asmallworld.net
(5) http://www.catch27.com
(6) http://www.funhi.com
(7) http://www.linkedin.com
(8) http://www.ryze.com
(9) http://www.orkut.com
(10) http://www.closedsociety.net
(11) mailto:jennifer.saranow@wsj.com
(12) http://www.asmallworld.net
(13) http://www.catch27.com
(14) http://www.closedsociety.net
(15) http://www.friendster.com
(16) http://www.funhi.com
(17) http://www.linkedin.com
(18) http://www.myspace.com
(19) http://www.ryze.com

The Gated Online Community

The Gated Online Community New Wave of Exclusive Sites Tout A-List Networking; A Revolt Against Friendster

By JENNIFER SARANOW Staff Reporter of THE WALL STREET JOURNAL April 27, 2005; Page D1

The people on the other side of the velvet rope have moved onto the Internet, and now they are trying to exclude you from their Web sites, too.

The sites that originally defined what has come to be known as "social networking," like the now-famous Friendster and online communities such as MySpace.com, let anyone join. Their aim was to let members benefit from the theory that everyone is connected by no more than six degrees -- that your friend's cubicle mate knows someone whose sister's college boyfriend should definitely be dating you and who it turns out went to junior high with you. Then, they try to help people use those connections by mapping them out on a Web site and giving members a way to get in touch with others. Some people use the sites for finding a job or an apartment or to track down a former classmate. Others use them as a networking tool.

Now, in a bid to build a new networking model beyond Friendster (www.friendster.com3), an increasing number of sites are touting their exclusivity. A site called aSmallWorld (www.asmallworld.net4) is geared toward those who regularly jet among places like St. Barths, London and New York. In November, it stopped letting the majority of the members invite others to join. Now, only 1% of the 60,000 members can do so, including people in countries like Brazil where the site wants more members.

On Catch27 (www.catch27.com5), which claims thousands of users and touts itself as the "most hip," member profiles appear as baseball cards. The site encourages members, many of whom fall between the ages of 18 and 30, to trade their friends for "hotter, smarter ones," and rank others by their "looks" and "smarts." The site also is launching a "black ball" feature that some members will be able to use to kick others off.

Elsewhere, FunHi (www.funhi.com6), with more than 150,000 active users, seeks to emulate a club and "bounces" users who lack style, like "meatheads" and people who "look homeless," according to Ray Savant, the site's co-founder. He estimates the site has bounced 20% of aspiring members. The site changes its invitation policy every few weeks.

The debate over how exclusive to be mirrors a broader issue facing many Internet businesses: whether to attempt to attract millions of eyeballs -- or to focus on a smaller but more devoted group of users. While people in the latter category might spend more time on the site or even be willing to pay a fee to use it, the former strategy can yield the kind of mass that some advertisers are seeking.

The sites' founders think the Friendsters of the world went wrong by letting anyone in -- and that, as a result, those pioneering services lost the feeling of a community mirroring an actual clique. They figure if they screen members, those that pass muster will better trust the travel tips, job leads, or date fix-ups from others.

Then, there is the question of how to profit from the sites. Friendster, which takes in revenue through advertising, says it just became profitable this year. While its rivals with their restrictive door policies aren't likely to generate massive earnings as a result of their smaller size, some of them already claim to be profitable. For example, FunHi, a unit of New York's Revenant Global LLC, says it is showing a profit by encouraging users to pay at least $9.99 for full membership and to pay more to keep sending other users virtual gifts.

ASmallWorld plans a premium membership service where members would pay for additional features. It hopes to have at least 50,000 paying members within a year and to be profitable by the fourth quarter.

The Internet was conceived as an open place for sharing academic research. As it grew, exclusivity emerged in the form of private bulletin boards or listservs. In 1996, for instance, New York's Echo virtual salon let any user create private conference areas.

The new focus on exclusivity comes as many social networking sites have been struggling to keep users interested once the novelty of seeing personal connections mapped out wears off. Less than half of Friendster's 16 million registered users are visiting the site regularly.

In fact, many of the older sites have seen their buzz eclipsed more recently by business-networking sites such as LinkedIn (www.linkedin.com7) and Ryze (www.ryze.com8). These encourage people to invite their business contacts to join and then facilitate introductions between them. Anyone can join these sites.

Last year, Google Inc. launched orkut (www.orkut.com9), one of the first invitation-only networking sites, but the company says it limited membership partly to expand in a controlled way rather than for the purpose of being exclusive.

The new exclusive sites are betting that sticking with a niche strategy will help boost user interest and willingness to pay. Denise Kaufmann Razzouk, a handbag designer who splits her time between New York, Paris and London and who says she is in her "late 20s," avoided joining a social networking site until she was admitted to aSmallWorld last June. Now, she visits it daily. "I wouldn't join another network because I'm not interested. It's not the same caliber," she says. "It's like all the people here will have the black American Express, but it's not nouveau riche."

Of course, most clubs cool off considerably a few months after opening. In fact, some new sites already are resorting to strategies like begging people to sign up via online ads. When a site called Closed Society (www.closedsociety.net10) launched, it opened its first 100 registrations to the public via a Google ad: "Join now and be a VIP." Only about 40 people applied.

Beyond networking, the new sites offer practical features from travel guides to casting services for aspiring actors and models. On aSmallWorld, members must join the site using real names so users can get trusted recommendations for say, five-star restaurants. "You're not on a site that has millions of people, and you have no idea if someone says this is a great restaurant and you go there and then you end up eating at Denny's," says Renny Harlin, a film director in Los Angeles and an investor in the site.

"If we let it grow, we would have lost control of who is a member, and we thought that quality is much more important than quantity," says Erik Wachtmeister, who started aSmallWorld in March 2004.

The site's features include a 60-city guide; a directory for limousine services, jewelers and yacht brokers; and a forum where users can post messages like "Day spa London/Paris. Girls, I am in need."

Write to Jennifer Saranow at jennifer.saranow@wsj.com11

Open Source to the Rescue

Open Source to the Rescue

By Cathleen Moore InfoWorld 04/25/05 5:00 AM PT

In founding Friendster, Chairman Jonathan Abrams sought to create an online network through which friends could connect with friends. When it launched, the service was powered by a Java back end running on Apache Tomcat servers with a MySQL database. That original architecture was soon crushed by the coming load of traffic.

Who says open source Latest News about open source can't measure up to commercial software for mission-critical applications? Far from being a mere quick fix or low-cost alternative, open-source software is helping real-world companies solve their most pressing IT problems.

Perhaps no more dramatic example exists than pioneering social networking site Friendster. When Friendster launched in March 2003, no one imagined that within two years the site would reach 60 million page views per day. Unfortunately, as the site's traffic increased, so did its performance issues. The problem, in essence, was that Friendster had unexpectedly become a phenomenon.

"When I arrived it was a crisis point -- absolutely, all day, every day," says Chris Lunt, Friendster's director of engineering, who joined the company in the summer of 2003. At that time, he says, Friendster's architecture was nearly breaking beneath the traffic load. Fast Track

"[Friendster] had taken off much faster than anyone could anticipate," Lunt says. "We had our millionth user [when] the site had been up only six months. The thing was overwhelmed."

Friendster's performance problems needed to be solved, fast. Rather than stick to the paved road of commercial software, however, the company's engineers took a major risk by betting on the open-source application stack known as LAMP, which consists of and is named for -- the Linux OS, Apache Web server Get the IBM Storage Resource Management Whitepaper. Latest News about Servers, MySQL database, and PHP (PHP: Hypertext Preprocessor) scripting language.

Fortunately, that gamble paid off. LAMP not only allowed Friendster's engineers to scale the site's architecture to address its unwieldy growth, but along the way, they implemented creative configurations that brought the LAMP technologies themselves to a new level. Brought to Its Knees

In founding Friendster, Chairman Jonathan Abrams sought to create an online network through which friends could connect with friends. When it launched, the service was powered by a Java Latest News about Java back end running on Apache Tomcat servers with a MySQL database. That original architecture was soon crushed by the coming load of traffic.

During the summer of 2003, Friendster was plagued by performance issues. Often, the millions of users pounding the site where unable to access it, and when they could, results were inconsistent from page to page. User profile changes failed to show up because of lags in the distributed architecture, and messages were dropped.

"If you had a huge network [of friends], you couldn't search ePilot Search Engine Advertising - Click here to add your site today. it because just building your list and comparing to the network took longer than the browser would allow you to wait," says Dathan Pattishall, senior database and software engineer at Friendster. Pattishall joined the company in November 2003 to tackle the site's database issues.

Tomcat and Java weren't the problem so much as the fact that the site's back end was not architected to accommodate millions of users. Friendster had grown to such a huge extent that simply throwing more hardware at the problem wasn't enough. The site had to be re-engineered to make better use of the hardware and applications.

Of course, that was easier said than done. At the time, Friendster's IT team consisted of two engineers, and the challenges they faced were daunting.

"Developing for your desktop is one thing, but when [your site needs to support] millions of hits a day, it is a different story," Lunt says.

The Tomcat-based Java implementation was bulky, difficult to manage, and couldn't scale to meet the surge in traffic. Moreover, the MySQL back end was a bottleneck. According to Pattishall, "Every application and subapplication had a problem. And we had to fix it." Lighting the LAMP

Lunt had some prior job experience in the late 1990s with a variety of open source combinations, including running MySQL and Linux on Intel (Nasdaq: INTC) Latest News about Intel hardware and developing applications using Perl as a scripting language. He had also experimented with PHP, a language similar to Perl but optimized for Web development. After considering his options, Lunt led the charge to completely re-architect Friendster using Apache and PHP.

"We had to go back and rewrite the site," Lunt says. "That was not a popular choice here. They had a couple Tomcat authors here who were pretty threatened by that."

Still, Friendster pushed forward with LAMP because it was the only toolset that would allow the company to create its vision, according to Pattishall. "The one thing we kept the same was using open source software - using MySQL, code we could look at, and stuff we could download off the Net. This let us do things [our own] way," he says.

Pattishall says the benefits of open source include better visibility in the architecture and more control of fixes. "With open source you can look directly at what is causing a problem, write your own fix, and get up and running in such a fast manner. Instead of waiting four weeks for a vendor to provide a qualified patch, you provide the fix yourself," he says.

The transition to LAMP wasn't entirely smooth. "What we were doing was challenging and hard. We were a top 40 Web site Get a Free E-Commerce Start-up Kit from Verisign. We were dealing with a volume of traffic that most sites don't dream of," Lunt says.

Late-night emergencies were common, and firefighting consumed the whole of many days. The problems were so severe that discussions were had as to whether it might be more prudent to go a more traditional engineering route.

"There were discussions of ditching open source. Should we just buy off-the-shelf software that would do what we want?" Pattishall explains. "We investigated the market but found there wasn't anything close to what we wanted to do, and it was way too expensive. We wouldn't be able to execute on any business Get the IBM Collaboration demo for mid-market. plan because we spent too much just on the software."

What's more, although taking the open-source route may seem intimidating because of the difficulty in obtaining support, Lunt says traditional vendor support is not always a safety net, adding, "Commercial software support contracts are often a support blanket." Re-architecting the Data

Some of Friendster's biggest headaches came from the site's MySQL implementation, according to Pattishall. "Everything was wrong with the usage of MySQL when I came in," he says. "Everything was going through one location, which was a huge bottleneck. All our writes were taking forever."

Rather than ditch MySQL for a large commercial RDBMS such as Oracle (Nasdaq: ORCL) Latest News about Oracle, however, Friendster's IT team decided to rebuild its MySQL implementation, this time engineering it the right way.

"We worked to customize MySQL. We had great support from [MySQL AB, the parent company of the software]. We wouldn't be able to do this with Oracle," Lunt says. "The licensing costs would kill us.... It's a good product, but not that much better to justify the cost."

One problem Friendster's engineers had to address was optimizing the way queries were performed against the database. "Imagine asking a question to a database, and in that question, you ask 700,000 to 5 million questions to be answered all at the same time. That was what was being done to produce the social network part of site," Pattishall says.

A key design goal for the new system was to move away from maintaining session state toward a stateless architecture that would clean up after each request, Lunt says. In addition, according to Pattishall, the team rebuilt the MySQL data in a more compact form, re-indexing and repairing tables in order to stabilize the site, improve page load times, and better handle traffic.

Another important step in stabilizing the site was getting more hardware in place and setting up a system to automate the hardware selection process. "Rather than buy big, centralized boxes, [our philosophy] was about buying a lot of thin, cheap boxes. If one fails, you roll over to another box," Lunt says.

Friendster changed to a different white-box vendor, Open Source Storage.

"They gave us rock-solid, stable machines so we could skip time in qualifying the actual hardware itself," Pattishall says.

According to Lunt, another key step to stabilizing the service was to install a monitoring system that could alert engineers when a system or hardware piece failed. For that part of the puzzle, Lunt chose the open source network monitoring program Nagios. Creative Configurations

With site stability within reach, Pattishall developed some creative MySQL tools of his own that wouldn't have been possible with off-the-shelf technologies. To address the lack of management features available with MySQL, Pattishall developed a management tool that provides a real-time view of a cluster and that graphs database statistics across time. Pattishall is releasing the tool as an open source project.

Another problem was the management of the hardware, which proved labor-intensive; disks often failed, requiring manual replacement. Lunt and Pattishall looked for a better way to manage the systems, eventually creating a unique configuration consisting of 64-bit Get your complimentary copy of the IBM 64-Bit Computing Decision-Maker's Guide. AMD (NYSE: AMD) Latest News about AMD Opteron hardware running on Linux with a custom kernel for talking to a SAN.

"The boxes connect over a fiber link, so if a box fails, we don't lose all those disks and can get back up quickly. No one was using the configuration we're using," Pattishall says.

Pattishall also developed a custom configuration to load balance MySQL traffic using an appliance from NetScaler that was originally designed for accelerating Web pages.

"When our Web server makes a database [request], from the application point of view it looks like it is connecting to a single server. Because of the load balancer, we can take one request and put on 20 boxes. We are able to handle more load than if we stuck all those requests on a single box," Pattishall says.

Development on the new version of the Friendster site running Apache and PHP was completed in June 2004. In the process, Friendster's development team had grown to 20 engineers, primarily focused on rolling out new features to the service.

"Open source makes it easier to do that. The majority of new features have been built on open source," Pattishall says.

According to Tim Denike, senior Unix administrator at Friendster, open source was the only solution to conquer the site's massive growth problems. "Open-source tools allowed us to scale a massively complex application across a system that required very little administrative overhead compared to those of other companies," he says.

So the next time your company has to weigh its technology options for an IT project, don't hesitate to throw open source into the mix. Mature open-source technologies really are ready for prime time; the new and improved Friendster is living proof.

Monday, April 25, 2005

Chikka says it has 15M subscribers to mobile IM service

This story was taken from www.inq7.net
http://news.inq7.net/infotech/index.php?index=1&story_id=34803
Chikka says it has 15M subscribers to mobile IM service
Posted 07:50pm (Mla time) April 24, 2005
By Erwin Lemuel Oliva
INQ7.net

SINCE the launch of its service in 2001, the Manila-based mobile technology provider Chikka said that subscribers to its mobile instant messaging service has grown to over 15 million.

"That number already includes the PC-based and mobile phone subscribers to the service," according to Chito Bustamante, chief operating officer of Chikka Asia Inc. He adds that there has been an average of 30,000 registrations in a day.

Chikka currently handles at least 10 million text messages in a day, says Bustamante.
Founded by a group of Filipinos who established the defunct e-commerce website eregalo.com, Chikka was one of the first local start-ups that focused on business of text messaging or short messaging service (SMS), close to the tail-end of the dotcom crash in 2000.

For the past four years, Chikka has built a business around text messaging technology. Its first "killer application" was Chikka

Text Messenger, combining the power of SMS and the Internet.

Chikka's mobile messaging service allows PC-based users to send a text message to a mobile phone subscriber. The phone subscriber can in turn reply to a sender for a fee--a technology eventually patented by the company.

Bustamante noted that five of the 15 million Chikka mobile messaging subscribers are PC-based, with at least three million of them PC-based users living abroad. This indicates a growing base of overseas Filipino workers using its mobile messaging service.

The technology behind Chikka Text Messenger was among the first of 20 patents granted by the Intellectual Property Office of Singapore under the International Patent Cooperation Treaty.

While there were similar mobile Instant Messaging applications when Chikka was launched, they didn't offer a reply-back feature, Bustamante said.

Chikka is now looking at expanding its mobile instant messaging to other countries through affiliates or partners. It has recently set up a wholly-owned subsidiary in China to bring this service to that country, the Chikka executive said.


Friday, April 22, 2005

Lost Your Cell Phone? Call a Cab!

Amazing loss rates for personal tech. home server, home server, home server....

========================== Lost Your Cell Phone? Call a Cab!

Taxis across the world are hotspots for misplaced electronic devices.

Erin Biba, Medill News Service Thursday, February 17, 2005

WASHINGTON -- Lost-and-found centers: They're not just for umbrellas anymore. Taxicab companies across the world report that cell phones, PDAs, Pocket PCs, and laptops are being mistakenly left in the back seats of taxis by the thousands.

And it's a global problem. About 900 drivers for cab companies in Chicago, Copenhagen, Helsinki, London, Munich, Oslo, Paris, Stockholm, and Sydney reported a deluge of discarded gadgets in their taxis over a recent six-month period.

In Chicago, more than 85,000 phones were found in taxis--about four for every taxi in the Windy City. A little more than half of those were reunited with their owners--in almost all cases by the drivers, says Pointsec Mobile Technologies, which conducted the survey.

While forgotten phones form the base of the mountain of abandoned electronics, 21,000 PDAs and Pocket PCs were also found in Chicago cabs, and about 14,000 of them were eventually returned.

Passengers even left about 4500 notebooks behind. Not surprisingly, these expensive devices were reclaimed at the highest rate--about 80 percent.

Of course, many items get left in cabs. Surveyed drivers reported forgotten condoms topping the list; however, pets, undergarments, knives, and luggage were in the running, too. British drivers turned in a harp, a throne, more than $150,000 in diamonds, and a baby.

Nationwide Predicament

Misplaced electronic devices are a problem in many American cities. In Washington, D.C., the law allows taxi drivers to turn the devices in either to the police or to the District of Columbia's Taxicab Commission. Kimberly Lewis, an attorney with the commission, says that the problem of left-behind electronics is significant.

In one instance, the owner of a lost BlackBerry "was messaging us, and he was doing it in Spanish," Lewis says. "We had somebody who was actually able to respond, so he got it back."

In Washington, as in Chicago, the most frequently lost electronic devices are cell phones, Lewis said; but occasionally passengers leave behind laptops and BlackBerrys.

"Usually, we've found that, with items of that nature, people are pretty quick to call us or call the cab companies," says Lewis.

Lost in the Heartland

Tom Tomoser, operator of Tom Tomoser's Taxi in Omaha, says that even in his smaller city, many cell phones and BlackBerry devices are accidentally forsaken. Tomoser says customers of his independent cab, when sitting in the back seat, often "take the cell phone out and put it in the seat pocket behind the front seat..." Then, he says, the devices drop out of sight and the owners forget about them.

Once riders realize that their precious hardware is missing, Tomoser says, they are so eager to retrieve it that they're willing to compensate him. Once the hackie found himself on the other side of town when his last customer called. "She said, 'turn your meter on and bring me back my phone,'" Tomoser recounted.

Privacy Issues

As electronic devices become more sophisticated and improve their capacity to hold large stashes of personal information, having them--and your precious data--fall into strange hands can be scary.

"One of the things about lost property," says Kenny Bryson, a Washington police officer, "is a lot of it is left up to an honest person to turn it in."

Tomoser in Nebraska says that he doesn't fiddle with the devices left behind. If the phone is off, he will turn it on and keep it with him the front seat. "Usually within an hour or so [the owners will] call it," he says, and he arranges to return it to them or to their hotel if they are from out of town.

With expensive items like notebooks, "It's not like just losing a wallet," says Bryson of the D.C. police. When the Washington police receive electronic devices from taxicab drivers, he says, they try to locate the owners, often by turning the devices on.

"[We] have to be careful," Bryson says, "[we] don't want to go into the private domain of an individual."

Lewis, of the D.C. Taxi Commission, agrees, "We try not to do anything that's invasive," she says, but "it's not like we're pilfering people's things."

Protect and Defend

You can do several things to protect yourself against the loss of a mobile device.

First, evaluate how much personal information you keep on your device and how costly it would be if that information fell into the hands of a criminal. If that cost is higher than the cost of the electronic gear, you should consider protecting it.

In our story "Products for the Paranoid," we evaluate hardware and software options for protecting your data. They include:

* Use password protection: If your mobile electronic device contains sensitive information, protect it by using a password or even a fingerprint reader. Keep in mind, however, that your likelihood of retrieving a lost device will diminish if those who find it can't use it to access your contact information. * Back up: If you decide to password-protect your device, ita??s less likely that the device will be returned. It then becomes vital to make a copy of the information contained on it. That way no one can access your personal information, but you will be able to replace your valuable data.

And here are some tips for traveling by taxi with electronic gear:

* Look before you leave: Clearly, the best way to protect yourself from losing a cell phone or laptop is to make it a habit to check the back seat and the floor every time you exit a taxi. At the same time, it can never hurt to check your pockets, or your purse, to make sure all your devices are there. * Get a receipt, every time: A receipt for your fare contains a lot more than just how much you spent. Often, receipts contain the name of the taxi driver and the cab number. If you happen to leave something behind, having a receipt of your transaction will make it much easier to track down your device. * Avoid the seat pocket: Don't put your device in the pocket on the back of the front seat or on the seat next to you. Leaving it in a concealed location makes it easier to forget. Also, don't leave items on the top of a taxicab when you are paying your fare. * Don't let yourself get distracted: Try to not to talk on the phone while you are exiting a taxicab. If you are preoccupied, you won't remember to check for all your belongings before you leave.

If you do leave an item, call both the cab company and (if possible) the device itself. Arrange with the driver to have it delivered to you or to your hotel. Don't forget to tip!

M1 starts charging for 3G service

Feb 17, 2005
By Aaron Tan

MOBILEONE has leapfrogged its two bigger telco competitors by being the first to charge for its 3G service.

Starting today, M1 will offer video calls at 40 cents per minute, while video streaming, MP3 downloads and Internet surfing will remain free till March 31.

Existing M1 customers can upgrade to a 3G service at no extra charge simply by buying a 3G handset and switching to a 3G SIM card.

Mr Neil Montefiore, M1's chief executive officer, told the Straits Times in Cannes, France, that the 3G video calls are targeted at early adopters to see if the service takes off.

M1 rolled out its pilot 3G service in November, when it offered 100 handpicked customers 3G cards that could be slotted into notebook PCs for high-speed Internet access. In December, the next stage of the trial saw another 200 selected customers provided with 3G handsets.

By December, SingTel and StarHub had also started their own 3G trials. Press reports say SingTel is expected to start charging for 3G services next month, while StarHub will do so by the middle of the year.

In a statement yesterday, M1 said it is offering a specially priced pair of Motorola E1000 phones at $1,196 and Nokia 6630 sets at $798.

Mr Chua Swee Kiat, general manager of corporate communications at M1, said: 'The idea is that for video calls you need two handsets, otherwise you need to go around looking for people with 3G phones.'

M1 3G customers can also make international video calls to 12 countries, including Switzerland, Sweden, France, Germany and Hong Kong.

3G roaming will also be available in seven countries, including Japan, Hong Kong, France and Germany.

As a further inducement, M1's MiWorld portal will offer more than 4,000 MP3 song downloads, live video feeds from Channel NewsAsia, streaming music videos and movie trailers.

Mr Chua said that copyright has been cleared with the record labels and users will not face restrictions on music downloads.

The telco also said that it is working on other 3G content to entice customers, including a drama serial produced by MediaCorp exclusively for M1 and international sports and entertainment programmes.


Copyright © 2004 Singapore Press Holdings. All rights reserved.

Butter-fingered mobile device users create IT risk

Today's focus: Butter-fingered mobile device users create IT risk

By Joanie Wexler

The need for a structured approach to the management and security of mobile devices is escalating. Smartphone-style devices, in addition to supporting voice communications, are increasingly likely to also store sensitive corporate data and intranet connections. And they are most easily left behind for an outsider to find and potentially exploit.

Given a recent study reflecting the staggering rate at which mobile devices are lost, building policies around using passwords and encryption capabilities is becoming imperative for businesses.

Pointsec Mobile Technologies, a mobile data protection company (admittedly with a vested interest) sponsored a study among licensed taxi drivers in nine countries to measure the degree to which mobile devices are lost in transit. The U.S. company that was polled in the survey - a major Chicago cab company - reported the highest number of losses per taxi of all the participating companies: about 3 devices per cab over the half-year time frame.

The statistics work out to 85,619 mobile phones, 21,460 handhelds and 4,425 laptops being left behind in this company's vehicles during the six months.

Pointsec notes that many of today's mobile devices have a standard memory capacity of 80M bytes and can thus support the equivalent of 6,000 Microsoft Word documents, 720,000 e-mails, 360,000 contact details, or 7,200 pictures. Even if you personally aren't worried about the potential vulnerability implications, legislation is cracking down about the auditing and security of information. So the probability of legal action taken against organizations that do not protect the info on mobile devices is likely to only increase, Pointsec notes.

Bob Egan, president and CEO of Mobile Competency, a Providence, R.I. consultancy adds in his company's Mobile Viewpoint column this week, that these are among the reasons CIOs and IT managers should start paying attention to tools such as JP Mobile SureWave Mobile Defense and Sprint Managed Mobility Services. These tools let enterprises remotely disable lost or stolen handsets, or wipe them clean.

JP Mobile SureWave is a tool that allows IT departments to wirelessly deploy, update and enforce security policies enterprise-wide dynamically. Administrators control a range of security options over the air, including mandatory device lock and group settings, remote device wipe and remote password reset. For its part, with its Managed Mobility Service, Sprint takes responsibility for over-the-air configuration, security management, asset tracking and billing management of an enterprise's fleet of mobile devices.

In this spirit, note also that Version 9 of the Symbian operating system, a mobile operating system that runs in certain Motorola, Nokia, Panasonic, Siemens, Sony Ericsson and other smartphones, gives network operators and enterprises additional capabilities to manage the devices over the air. Version 9 was announced earlier this month.

RELATED EDITORIAL LINKS

Smartphone virus, spam threats loom Network World Wireless in the Enterprise Newsletter, 12/20/04 http://www.nwfusion.com/nlwir1090

Sprint, Intel tackle IT mobility mgmt. challenge Network World Wireless in the Enterprise Newsletter, 11/01/04 http://www.nwfusion.com/nlwir1091

Mobile Competency "Viewpoint" http://www.mobilecompetency.com/

Wireless: NextHop to play WLAN leapfrog Network World, 02/14/05 http://www.nwfusion.com/news/2005/021405-nexthop.html?rl

Mobile: Tool 'mobilizes' unstructured data Network World, 02/14/05 http://www.nwfusion.com/news/2005/021405-agillix.html?rl _______________________________________________________________ To contact: Joanie Wexler

Joanie Wexler is an independent networking technology writer/editor in California's Silicon Valley who has spent most of her career analyzing trends and news in the computer networking industry. She welcomes your comments on the articles published in this newsletter, as well as your ideas for future article topics. Reach her at . http://www.nwfusion.com/newsletters/wireless/index.html

Consumer electronics industry faces disaster

Consumer electronics industry faces disaster, academic says Commoditization could reshape the industry in the next few years

News Story by Paul Kallender

FEBRUARY 16, 2005 (IDG NEWS SERVICE) - The impending era of digitally networked homes will cause potentially devastating problems as well as golden opportunities for the consumer electronics industry, a senior academic said at a conference on Monday.

After an initial bonanza from new generations of products and services, commoditization could lead to the disintegration of the electronics industry as we know it, according to Eli Noam, professor of economics and finance at Columbia Business School. He spoke before an audience attending the Global Information Summit 2005 in Tokyo this week.

The digitalization of nearly every device from TVs to audio devices, mobile phones and cameras holds electronics makers hostage to Moore's Law -- the idea proposed by Intel Corp.'s Gordon Moore that computer chip power doubles every 18 months or so. As chips become more powerful, many stand-alone products -- such as Blu-ray Disc players, TVs and PCs -- may not be needed and "disappear," Noam said.

A look at today's consumer electronics products shows this is already happening. Consumer PCs now come equipped with TV and recording functions. Vendors have combined DVD, CD and VHS players into single units that have hard disk drives. This week, not satisfied with adding cameras to their products, mobile phone vendors Nokia Corp. and Sony Ericsson Mobile Communications AB announced that they will equip handsets with sophisticated music player functions.

The market for networked products for the home, which includes home servers, flat-panel displays and next-generation optical recorder and player equipment, could be worth hundreds of billions of dollars for vendors during the next seven years, Noam said.

But after that, profits could "disintegrate" for consumer electronics companies because many of the networked products now being developed will be replaced by a single box or hub. Around the home, people may interact with only a few thin clients, such as display screens, that will be wirelessly connected to a central computing system, he said.

"The good news is that this will mean an initial spike in demand for makers. But it also means fewer hardware boxes being sold," Noam said.

At some point, even the thin clients and hubs will become commodity items mass produced by any number of companies, not just consumer electronics giants such as Sony Corp. or Matsushita Electric Industrial Co. So, after spending billions of dollars developing ever-more powerful chips, technologies and products, electronics companies will find it difficult to make profits, Noam said.

"Twenty years ago, IBM offered a home network, and it cost $20,000. Now it costs a few hundred. ... Chronic price deflation shows no sign of abating," he said.

Because they will be used at home, home networks and products will have to be reliable, easy to use and glitch-free, he said. That will create new opportunities that arise from the need to service home networks, he said. A breed of specialized service vendors, called CSPs, or Consumer Electronics Service Providers, could emerge. These vendors would knit together home, community and work-based networks, providing services based around contents provision, security and assurance, he said.

Eventually, even those services will be commoditized, spelling more difficulties for the industry, Noam said.

new service for putting music into cell phones.

MOTOROLA IRADIO: In a strange grown-up-attends-kindergarten moment, Motorola was the only big technology company presenting at Demo, with a new service for putting music into cell phones.

Due to launch in October, iRadio will send songs through the Internet to your home computer for about $5 a month. Then you connect your cell phone to the PC through a USB cable, and the songs will move to a memory card inside the phone. You can also transfer songs from your own library of MP3 tracks.

You'll have to buy a new generation of Motorola phone, expected to cost about $200 to $300. Using Bluetooth short-range wireless networking and a $75 adapter, iRadio songs can also flow from your phone to your car stereo.

New technology offers high data speeds similar to those of fixed-line ADSL services

HSDPA is a mouthful for speed
New technology offers high data speeds similar to those of fixed-line ADSL services

By John Blau, IDG News Service
February 16, 2005

CANNES , FRANCE -- If the acronym HSDPA means nothing to you, read on because the technology behind this string of letters could soon significantly change the way you work and play on your mobile device.

  
  

High Speed Downlink Packet Access (HSDPA) is one of the new technologies being talked up and even demonstrated at the 3GMS World Congress in Cannes.

The technology, a rival to the EV-DO (evolution data optimized) standard in CDMA (Code Division Multiple Access) found in the U.S. and parts of Asia, promises something surprisingly missing in early 3G (third-generation) mobile broadband networks -- high data speeds similar to those of fixed-line ADSL (asymmetrical digital subscriber line) services.

Remember all the talk about 3G offering data downloads at speeds up to 2Mbps? Well, yes, those speeds are achievable -- in a lab with a handset held next to the base station. It's a theoretical speed that looks good in promotional brochures but is nearly impossible to achieve for the ordinary Joe Blow subscriber.

The first wave of 3G technology, Release 99 (R99), offers a maximum speed of 384Kbps. Even that's a peak rate, or something you might reach if you're alone in a mobile cell at 5 a.m. Most likely, you're going to have speeds between 150Kbps and 250Kbps, according to John Leonard, vice president business strategy at Lucent Technologies.

With HSDPA, expect initial throughput rates of between 400Kbps and 600Kbps, with a peak rate of 14.4Mbps.

HSDPA technology is the key feature of the Release 5 specification approved in 1999 by the 3GPP (Third Generation Partnership Project). The technology offers several significant improvements over R99 networks.

Unlike R99, HSDPA introduces an additional transport channel, called the high-speed downlink share channel. Up to 15 of these channels can operate in the WCDMA (Wideband CDMA) radio channel, allowing multiple users to share the entire downlink channel.

The additional channel is designed to take advantage of bursty data traffic, typical in data networks, through multiplexing. For example, once your data has been dispatched, other users can gain access to the network in much the same way they do with DSL technology.

Another feature is adaptive modulation and coding (AMC), a technique used to compensate for variations in radio conditions. With this technique, a network node schedules the transmission of data packets to a user by matching the user's priority and estimated channel operating environment with the appropriate coding and modulation scheme, thus increasing throughput under favorable conditions.

In addition, HSDPA offers a retransmission mechanism for quick error correction. In spread-spectrum networks such as WCDMA, handsets confirm when they receive data and communicate key information such as channel condition and power back to the network. While this process is handled by the Radio Network Control (RNC) system in R99 networks, with HSDPA, it is processed directly in the base station, enabling a much faster response.

Several operators have already begun HSDPA tests, including Vodafone (Profile, Products, Articles) Group in Japan and New Zealand, and mm02 PLC on the Isle of Man in the U.K.. Many others, such as T-Mobile International, are in the starting blocks.

"This is a first big step to give users of mobile devices an ADSL experience," said T-Mobile Chief Technology Officer Hamid Akhavan. "We're very excited."

For those still undecided, several vendors, including Telefonaktiebolaget LM Ericsson, Nortel Networks (Profile, Products, Articles), and Siemens (Profile, Products, Articles), have been conducting live demonstrations in Cannes. You have to be blind not to see the improvement.

Lucent, for instance, showed video clips in both R99 and HSDPA. While the images transmitted over R99 were a bit fuzzy, those over HSDPA were DVD-quality, with latency speeds of just over 70 milliseconds.

Nine video clips can be transmitted with HSDPA in the same time required to send one with R99, according to Lucent.

So when can you expect HSDPA? In Cannes, several vendors including Siemens and Motorola unveiled HSDPA PC cards, with initial peak speed rates of 3.6Mbps.

The first HSDPA handsets will be available on the market early next year, with the technology to be integrated into PCs a year later, according to Mikael Bäck, vice president of WCDMA radio networks at Ericsson.

New HSDPA handsets, according to John Leonard, vice president business strategy at Lucent, will need to manage higher power consumption and heat dissipation requirements in addition to integrating new algorithms in their chip sets.

Now if you're wonder whether the industry is tinkering with technology to upload data faster, the answer is yes. Another standard is in the pipeline: HSUPA (High Speed Uplink Access). The technology is to deliver a maximum speed of 5.8Mbps. In addition to speed, the technology will enable VoIP (Voice over Internet Protocol) over the radio link. "You need to have a symmetric link, and HSUPA will provide this," Leonard said.

But, like its download cousin, HSUPA will also require operators to make some software and even possibly hardware changes in their networks, and handsets manufacturers will need to deliver new phones -- all of which will require time and, above all, money.

And if you think the innovation stops there, come back to this show next year when the focus most likely will turn to "super 3G," or what some in the industry are calling 4G (fourth generation).

The technology, a further evolution of 3G, will target download speeds of up to 100Mbps and upload speeds of up to 50Mbps with low 50 millisecond latency rates, according to Ericsson Chief Technology Officer Hakan Eriksson. It could be standardized by 2007, with the first products available by 2009, he said.

The 3GSM World Congress runs through Thursday.

M1 to launch 3G service with price plan, handsets

Feb 16, 2005

MOBILEONE (M1) will commercially launch its third-generation (3G) mobile phone service in Singapore on Thursday.

It is the first telco here to state the cost for one of the main attractions of a 3G service, video-calls, at $0.40 a minute.

M1 also said it will offer lower-priced handsets as well as for existing customers to upgrade easily to a 3G plan, from their present ones.

A pair of Motorola E1000 3G phones will cost $1,196, while the Nokia 6630 will be sold at $798 each.

Existing M1 customers can move to 3G services on their current plan by first buying a 3G handset and switching to a 3G SIM card.

The other two telcos, StarHub and SingTel, have both been making announcements about its 3G services, largely in their content offerings, in a run-up to their respective commercial launches.

Neither have announced charges yet.

For instance, SingTel, which is expected to start charging in March, is currently offering free video calls and movie downloads to its 3G users.

M1 is also offering free MP3 downloads and Web surfing till the end of March.

Full story in The Straits Times on Thursday.


Copyright © 2004 Singapore Press Holdings. All rights reserved.

Japanese firm uses S'pore as base to Romance gamers

Feb 16, 2005

By Billy Teo

SINGAPORE'S steady march towards becoming a regional computer gaming centre took another step forward yesterday when Japanese game developer Koei officially opened a studio in Chinatown.

Koei Entertainment Singapore will use the studio to develop an online version of its classic strategy game, Romance Of The Three Kingdoms, which earned the company $437 million in revenue last year.

The Tokyo-listed company expects the online version, which will be launched in 2007, to lure one million paying subscribers in Asia alone.

The online PC gaming market in the Asia-Pacific region, excluding Japan, earned US$761 million (S$1.26 billion) in subscriptions in 2003, according to research firm International Data Corporation. By 2008, this figure is expected to grow to an estimated US$1.84 billion.

Koei, known globally for its Chinese and Japanese mediaeval action and strategy games, invested $3 million in the studio. This is the first time Koei has used a studio outside Japan to develop a full computer game from scratch.

Already, 20 game developers are working on the online version of Romance. Another 80 will be hired this year. The studio will also produce Japanese, English and Chinese versions of the game for the global market.

Koei's chief executive officer, Mrs Keiko Erikawa, flew in from Japan for the opening ceremony. Also present was Mr Teo Ming Kian, chairman of the Economic Development Board, which collaborated with Koei in 2002 to send several Singaporeans to train at its game studios in Japan.

Mrs Erikawa said Singapore's multicultural background was one of the key factors that attracted Koei here.

Speaking through a translator, she told The Straits Times: 'We need to design, customise and package our games for different markets. Here in Singapore, there is language and cultural awareness. We can easily research and check if there are some minute things we don't understand about any culture.'

Mrs Erikawa and her husband Yoichi founded Koei, which means 'glory' in Japanese, in 1978. It focuses on creating strategy and action games based chiefly on Chinese and Japanese mediaeval history.

Its Romance series of games has sold more than seven million copies since 1985, while the Dynasty Warrior action-strategy games have sold six million copies since 2000.

Koei's studio brings Singapore another step closer to becoming a regional centre for game players and developers.

Another Japanese game developer, Genki, set up an office here last year to develop games for mobile phones and game consoles.

Lucasfilm, the animation and visual effects studio set up by Star Wars creator George Lucas, will also open a studio in Singapore later this year that can develop games.

Later this year, Singapore will host the World Cyber Games.


Copyright © 2004 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access.

More 3G phones on the way

Feb 16, 2005
COMING SOON: One of the new 3G phones, the Nokia 6680, will be available next month.

CELLPHONE makers announced more than a dozen 3G phones at the 3GSM World Congress here on Monday, as the telecom industry readied a major push to get people hooked up to the high-speed mobile phone service this year.

This is bound to boost the confidence of operators worldwide, including SingTel which starts charging for 3G usage next month.

SingTel Mobile's chief executive Lim Chuan Poh, a speaker at the conference, said that it may be too early to say 3G is gaining widespread acceptance, but people can start 'feeling optimistic' about the technology this year.

Agreeing, Nokia's executive vice-president and general manager for networks, Mr Simon Beresford-Wylie, added that over 70 million people are expected to sign up for 3G this year, a sharp rise from the 16 million last year.

The annual 3GSM show is an important venue to launch new models and woo key customers.

Motorola is launching 16 devices this year that can hook up to 3G networks. It unveiled four of them here: the A1010 personal digital assistant, the E1120 and E1060 phones and the D1100 PC card that can be slotted into PCs for high-speed access.

Nokia's new phones come with enhanced multimedia features such as video sharing, direct photo printing and music playback.

Available next month, the Nokia 6680 offers 3G connectivity and sports two integrated cameras for video conferencing which can be used for one-to-one or multi-party calls. It has a built-in media player and also PictBridge, a feature that lets users print their pictures directly on a printer.

Sony Ericsson's K600i 3G phone comes with a 1.3-megapixel camera and built-in radio, and does not look as bulky as earlier 3G phones.

The new 3G devices, scheduled to hit the shelves as soon as next month, will add to the dozen or so models available in Europe and Asia-Pacific.

Interesting

Interesting. First time for me using a blog. Looks and feels like a forum, except it contains only things I'm publishing to the world.

Wi-Fi phones don't add up to much

Tracked down the original source report.

http://www.infonetics.com/resources/purple.shtml?ms05.wip.4q.nr.shtml

The editorial take was from Cnet

Wi-Fi phones don't add up to much

A new study suggests it will be a number of years before Wi-Fi phones, supposedly a revolutionary telephone technology, manage to fulfill expectations.

Analysts at Infonetics Research say portable phones using Wi-Fi, the popular technology that creates 300-foot zones of high-speed wireless connectivity, are taking hold in hospitals and businesses, but worldwide sales werenegligible last year.

The results are disappointing. After years in development, the much-anticipated devices were supposed to take off in 2004. But with just 113,000 such handsets sold last year, or US$45 million in total sales, it's apparent the prognosticators were wrong. Rather, the sales "represent amarket at its birth," as Infonetics analysts put it.

Wi-Fi phones combine two very hot and potent technologies--Wi-Fi and voice over Internet Protocol (VoIP) software, which lets Internet connections double as extremely inexpensive phone lines.

Typically, VoIP subscribers use a wired phone line, whether a single home phone or any number of phones in an office setting. But many service providers see an opportunity to create wireless versions of their services using Wi-Fi. Introducing the appropriate VoIP services and technology couldturn hot spots into giant phone booths.

But it could take at least until 2009 before the cost of Wi-Fi phones drops enough for a mass market breakthrough, according to Infonetics.

"Voice over wireless Internet devices have the potential to be a hugely disruptive technology," Richard Webb, Infonetics directing analyst said astatement.

"As VoIP goes wireless, this will present a challenge not only to fixed line operators, but to mobile operators."--By Ben Charny, CNET News.com

Phone makers to put MP3 players into cellphones

Feb 15, 2005

CANNES (France) - With a covetous eye on the success of portable music players, mobile phone makers are going after would-be iPod buyers by building high-quality players into their handsets.

Sony Ericsson announced on Monday it will soon market music-player mobiles under its parent's Walkman brand, drawing on the music catalogue of its sister company Sony BMG, the world's No. 2 record company.

And Nokia, the world's leading phone maker, announced an alliance with software giant Microsoft that will allow mobile subscribers to load music from a PC onto their phones - much the way that a digital music player works.

Unlike owners of dedicated MP3 players, Nokia users will also be able to download tracks wirelessly onto their handsets and transfer them to computer for storage or burning onto a CD.

At a news conference on the first day of the 3GSM World Congress, a major mobile industry gathering on the French Riviera, the company also unveiled a new 3G phone with an integrated music player and high-quality stereo output.

Mobile phone makers and networks are looking for ways to boost their revenue as it becomes more difficult to find new customers on saturated industrialised markets and even in some developing countries.

Free voice calls over the Web, which could soon be possible with mobiles - Motorola and Internet phone company Skype Technologies SA have just teamed up to explore that possibility - pose a further threat to revenues, forcing mobile operators to look to entertainment and data services for their future profitability.

With high-speed 3G networks now widespread, companies like Nokia hope demand for pricier, more sophisticated phones and airtime will be spurred by new features from wireless gaming and instant messaging to pay-TV and remote banking services.

The uptake of 3G phones last year fell short of earlier predictions, but it said on Monday it still expects the number of people using them to reach 70 million people at the end of this year from 16 million in December 2004.

The company unveiled on Monday a phone that has a music player delivering high-quality audio through a stereo output as well as a new application that organises music tracks into iPod-style play-lists. With up to a gigabyte of storage - or a quarter of the Apple iPod Mini's capacity - it can hold more music than many of the flash-based mp3 players currently on the market.

It has partnered with Seattle, Washington-based Loudeye to provide a download service to make songs available and hinted that deals with record labels could follow.

Nokia, Microsoft, Sony Ericsson and others believe a strong musical offering - unlike ring tones and other essentially cosmetic downloads - has the potential to win over new customers for mobile networks and the handset brands they offer. -- AP

Music brings Microsoft and Nokia together

By Kim Peterson Seattle Times technology reporter

The trans-Atlantic freeze between Microsoft and mobile-phone giant Nokia began to thaw yesterday as the companies announced they would work together to make it easier for people to transfer digital music between their handsets and their personal computers.

The partnership also involves another regional company. Seattle-based Loudeye and Nokia launched a service yesterday that cellphone carriers could brand and use to sell music downloads playable on a phone or a PC. The announcements were made in France at 3GSM World Congress, an annual conference for the mobile-phone industry.

But the Finnish company hasn't fully embraced Microsoft, a company it once seemed bent on keeping out of the mobile software arena. The music service doesn't use Microsoft's digital-file format or its digital-rights management technology, and instead opts for alternatives expected to be more commonly used within the mobile industry.

Microsoft has agreed to make its Windows Media Player software compatible with those alternatives. In return, Nokia said it would enable its handsets to play music in Microsoft's format and work with Microsoft's digital-rights management system in the future. The service will also use Microsoft's digital media player to handle music played on PCs.

The companies didn't announce which cellphone carriers would begin using the technology or which handsets would be compatible. Nevertheless, the partnership is significant in that the world's largest software maker and the world's largest mobile- phone maker have agreed to begin collaborating.

"I think we'll probably see more alliances like this from companies that used to be fairly hard-core competitors in the given marketplace," said Mike McGuire, an analyst with GartnerG2.

Nokia dealt Microsoft a blow in the past when it decided to power many of its phones with operating systems made by Symbian, a London company of which Nokia owns a 48 percent stake. The relationship didn't seem any better last November, when Nokia quit the Computer and Communications Industry Association the day after the group ended its antitrust fight against Microsoft.

Why the turnaround? Perhaps the change of heart has something to do with Motorola and Apple Computer. Those companies are developing cellphones that will use Apple's iTunes music-player software.

A Nokia executive said yesterday that Nokia was simply more interested in bringing the cellphone and the PC closer together.

"We are focusing on the fact that we bring interoperability between the PC world and the mobile world and making the user experience much easier," said the executive, Pekka Pohjakallio.

The service developed with Loudeye allows customers to purchase a song or a musical ring tone and download it directly to their cellphones. The charge for the music would be added to their monthly cellphone bill. Customers can also download the same song to their computers, as well as move songs previously stored in the computers onto their phones.

Is the iPod killer finally here? Probably not. For one thing, the memory cards that can hold music for cellphones are generally limited to a 1 gigabyte capacity — enough to hold about 16 hours of music. Apple's iPod portable player can hold as many as 40 gigabytes.

Pohjakallio said yesterday that by next year the memory capacity for mobile devices could increase to anywhere from 4 to 6 gigabytes.

Michael Brochu, Loudeye's chief executive, said he expects the mobile digital music market to grow significantly this year.

"In the next 12 months, you're going to see this market really take off," he said. Devices are becoming more prolific and people are downloading music onto a vast number of them, he added.

Nokia is also working with yet another local company: RealNetworks. The two companies announced last week they were extending a partnership formed in 2002 so that RealNetworks' audio and video software could be shipped on a greater number of Nokia handsets.

RealNetworks' Helix technology is not compatible with the Loudeye service, but that could change if the market demands it, Loudeye said.

Kim Peterson: 206-464-2360 or kpeterson@seattletimes.com

Qpass acquires German company

Qpass, which helps wireless carriers manage data services, said yesterday at the 3GSM World Congress in Cannes, France, that it has acquired Encorus Technologies. It didn't disclose terms of the deal.

A subsidiary of eONE Global, Germany's Encorus was acquired for its mobile-payment-software business called PaymentWorks. The program uses Simpay, a system employed by many European carriers.

Last month, the Seattle company acquired ucp morgen of Vienna, Austria.

Seattle Times business staff

business 101

> As soon as Drkoop.com's conference call with analysts ended, Jupiter > Communications' switchboard must have lit up with calls from > journalists. The Times' AP story quoted one of Jupiter's analysts > dubbing the just-ended conference call a "funeral call (for) a patient > on the operating table that's gone into heart failure." CNET's Greg > Sandoval found a Jupiter expert, analyst Rachel Terrace, to pinpoint > the Netco's main problem: "Drkoop didn't diversify their revenue > streams enough to include commerce. This is an old story. Content > sites can't survive on advertising alone." - Keith Dawson