Skype adds video to voice service

Skype has already attracted millions of fans with its easy-to-use internet phone service, and now it has added a new feature: video calls.

The New York Times reports (1 december) that, like the first version of Skype, the upgraded software is downloaded from www.skype.com. Users also need a web camera that attaches to a computer; many popular models sell for less than US$100.

The newspaper says that computer-to-computer calls, including the new video service, are free on Skype (there is a charge for calls involving regular phones). A video call works just like a voice call on Skype: the caller finds the log-in address of the person being called and clicks the green connect button on the bottom of the screen. If that person's computer is connected to a Web cam, a video call is created.

According to the NYT.,in demonstrations, Skype video calls proved as good as most other web-based video calls. The picture window can be enlarged, and it can be detached from the Skype screen and put in the corner of the desktop.

The newspaper adds that the new software also lets users tell others what time zone they are in and whether they are busy or available to talk. In addition, new folders will make it easier to sort personal contacts into groups.

{mospagebreaktitle=BlackBerry patent case nearer showdown}BlackBerry patent case nearer showdown

Research In Motion moved closer Wednesday to a showdown with NTP, a patent holding company, over BlackBerry service after a court in the US dismissed its request to impose a failed settlement agreement on the two companies.

The New York Times reports (1 December) that the ruling by Judge James R. Spencer of Federal District Court means R.I.M. will either have to renegotiate a settlement with NTP or face a shutdown of its BlackBerry wireless e-mail service in the United States, perhaps within the next month.

According to the newspaper, the company does not break down its operations by country, but it is estimated that 70 percent of its revenue from 3.65 million BlackBerry users worldwide comes from United States customers. Most analysts say a shutdown is unlikely because of the enormous financial damage it would do to the company.

If a shutdown does occur, R.I.M. has said that it can substitute an alternate, user-tested technology that does not violate NTP's patents, although it has offered few details about it.

The NYT says that Judge Spencer previously banned the sale and use of the BlackBerry system for everyone other than government account holders after finding that R.I.M. had violated some wireless e-mail patents owned by NTP. That order was held up to permit R.I.M. to mount an appeal, which was unsuccessful.

On Wednesday, Judge Spencer issued a one-page order rejecting R.I.M.'s request to impose a proposed settlement reached out of court between the companies last spring. It would have resolved the dispute in exchange for a US$450 million payment from R.I.M. But the deal fell apart after each side accused the other of trying to add unacceptable conditions.

The newspaper reports that, in a statement, R.I.M., based in Ontario, said it would continue to prepare an appeal to the United States Supreme Court.

{mospagebreaktitle=Microsoft develops classified service}Microsoft develops classified service

Microsoft is developing an online classified service to compete with the likes of Craigslist and becoming the latest company to capitalise on growing consumer interest in buying and selling everything from cars to baby-sitting services on the web.

The Associated Press reports in The New York Times (30 November) that such web-based classifieds are proving to be tough competitors for the ads that traditionally provided a big chunk of newspaper revenue.

Microsoft is hoping to distinguish its service, code-named Fremont, from rivals by tying in functionality with other Microsoft products. For example, people will be able to have Microsoft's instant messaging service alert them if items they seek come up for sale, or if someone is interested in buying something they are selling.

AP reports that the company also is developing ways that people can limit who can see their ads, such as by offering goods only to people on their messenger ''buddy list.'' The service also will enable users to limit sales to those attending the same university or working at the same company, based on e-mail addresses.

And it's integrating Microsoft technology for geography-based searching, to let people hunt for items that are for sale in the immediate area, says AP.

The AP report says that the service will seek to be even more geographically personalised than Craigslist's city-oriented sites by asking sellers to provide a ZIP code for searching purposes, said Garry Wiseman, an MSN product unit manager. For example, users could say they only wanted to find jobs, apartments or garage sales within a five-mile radius of where they live.

The service will be free for users and supported by advertising that will appear alongside search results.

{mospagebreaktitle=Samsung guilty in price-fixing case}Samsung guilty in price-fixing case

The Samsung Electronics Company, the memory chip maker, pleaded guilty on Wednesday to participating in a price-fixing conspiracy that damaged competitors and increased computer prices.

The Associated Press reports in The New York Times (1 December) tha, in accordance with a plea deal in October with federal prosecutors, Judge Phyllis J. Hamilton of United States District Court in San Francisco ordered the company, which is based in South Korea, and its United States subsidiary, Samsung Semiconductor, to pay a US$300 million fine.

The hearing was the culmination of a three-year investigation that has resulted in guilty pleas from three of the largest makers of dynamic random access memory chips used to store information in computers and other devices.

AP reports that Hynix Semiconductor, also of South Korea, agreed to pay a US$185 million fine earlier this year, and Infineon Technologies of Germany, agreed to pay US$160 million last year. A fourth chip maker, Micron Technology of Boise, Idaho, has been cooperating with prosecutors.

{mospagebreaktitle=Mozilla Firefox 1.5 has landed}Mozilla Firefox 1.5 has landed

The much-anticipated final release of Firefox 1.5 was released on Tuesday. Linux, Mac and Windows users of the popular open source browser can download it via the Mozilla website (https://www.mozilla.com), reports The Register.

The register says that key improvements with the browser include automatic updates (which means users no longer need to download a complete new version of the browser to upgrade), faster browser navigation, drag and drop reordering for browser tabs (previously only available as a third-party plug-in, improvements to pop-up blocking and better support for Mac OS X.

There's also a number of bug fixes and security enhancements, says The Register.

{mospagebreaktitle=Microsoft to hand over Vista 'features' early}Microsoft to hand over Vista 'features' early

Microsoft will include most of the "final" features in pre-release editions of its next Windows client for early evaluation to help produce a more stable product.

The Register reports that the company claimed Tuesday it has accelerated development of Windows Vista to get most features code complete by the end of December, and that all features would be integrated into the already delayed operating system by "early" next year.

The publication reports that Amitabh Srivastav, corporate vice president for Windows core operating system development, said the move meant pre-release versions of Windows Vista could now reflect the final product with beta testers able to properly evaluate code.

"Customers will have Windows Vista sooner in their hands than any previous Windows release, to enable us to receive meaningful Windows feedback much earlier and test with code that will more accurately reflect the product we ship," he said.

According to The Register, Srivastav declined to say how much Microsoft has accelerated development. He also declined to say when the second Windows Vista beta would ship, although expectations are for very early in 2006.

{mospagebreaktitle=French cellcos fined €534m for collusion}French cellcos fined €534m for collusion

Three French mobile operators - Orange, SFR and Bouygues Telecom - have been fined a €534m (£363m) for sharing information and rigging the country's cellphone market.

The Register reports (1 December) that France's competition commission (the Conseil de la Concurrence) ruled that the three had acted against the best interests of consumers and the economy by sharing confidential information and divvying up the market for themselves.

The Conseil said this collusion had been going on between 1997 and 2003.

According to the Register, Orange has been fined €256m (£174m), SFR €220m (£150m) and Bouygues Telecom €58m (£40m).

Vincent Poulbere, a senior consultant at analysts Ovum, said the operators are likely to appeal the decisions although they could face yet further legal action from consumer groups.

Orange, which is owned by incumbent France Telecom, rejected the ruling and confirmed it plans to appeal.

{mospagebreaktitle=Trojan exploits unpatched IE flaw}Trojan exploits unpatched IE flaw

The release of a Trojan that exploits an unpatched IE hole has prompted speculation that Microsoft may release an emergency out-of-cycle security patch.

The Register reports (1 December) that the Delf-DH Trojan downloader uses an Internet Explorer vulnerability to infect unprotected Windows users who stray onto maliciously constructed websites. Delf-DH downloads other malware onto infected machines changing settings in order to monitor user activity and redirect surfers onto porn sites.

According to The register, the attack relies on a flaw in the way IE handles requests to the window() object, highlighted by proof-of-concept code last week and now used in anger by VXers.

Even fully patched Windows 2000 and Windows XP systems are vulnerable, says The register, adding that until a patch is available to address this vulnerability, US-CERT strongly encourages Windows users to disable Active Scripting.

{mospagebreaktitle=Intel: chipset shortage to run through H1 2006}Intel: chipset shortage to run through H1 2006

Intel's chipset supplies will remain "tight" throughout H1 2006, CFO Andy Bryant has admitted.

The Register reports (1 December) that, speaking at the chip giant's manufacturing and technology summit, Bryant said the supply problems will continue through a "fair portion for the first part of next year", according to an EETimes report

Bryant said that Intel is looking to begin producing chipsets at its higher-yield, 300mm-wafer fabs during Q2 2006. Currently, its chipsets are produced in its 200mm-wafer fabs.

According to The Register, Intel's chipset shortage emerged early last summer. Then, it said it was shifting the focus of its production efforts on higher-end desktop parts, a move that led some observers to suggest it was pulling out of the low-end desktop chipset market.

The Register says that in September, Bryant said the company had "sold out" of notebook chipsets, and said the shortage would extend into the "first part of 2006" - precisely the timeframe the company will launch its 945M chipset, a key component of 'Napa', the third generation of Intel's Centrino platform.

Intel is scheduled to ship 'Broadwater', its next generation of desktop chipset, in Q2 2006.

{mospagebreaktitle=World's top maker of laptop fans to up output}World's top maker of laptop fans to up output

Sunonwealth, the world's biggest maker of tiny fans for laptop PCs, said on Thursday it plans to boost monthly output by 26 percent next year and needs to raise US$15-20 million for the expansion.

Reuters reports in the New York Times (1 December) that Sunonwealth Electric Machine Industry says its miniaturised cooling fans, as small as 1 cm (0.4 inches) in thickness, are found in one-in-three laptops, including top brands such as Dell and Hewlett-Packard.

The Reuters report says that the company has confidence in economic growth in the United States and Japan, which it said will further stimulate demand for consumer products next year. PC users are also replacing boxy desktops with gadget-filled portables -- good news for Sunonwealth.

The Taiwan firm has two factories in China, pumping out nearly 90 percent of its small fans for notebook computers, desktops PCs, servers and projectors.

Reuters reports that it plans to boost its monthly output to 10.7 million units in 2006, from the present 8.5 million units. To fund that expansion, the company is eyeing a possible euroconvertible bond (ECB) issue of US$15-20 million.

{mospagebreaktitle=Broadcom sees big chip demand from digital devices}Broadcom sees big chip demand from digital devices

US chip maker Broadcom expects demand for chips used in portable video players to surge on the back of rising global sales of digital devices, its chief executive Scott McGregor said on Thursday.

Reuters reports in The New York Times (1 December) that McGregor said Broadcom was working with leading companies in this space that include Apple Computer and Samsung Electronics.

According to Reuters, California-based Broadcom specialises in combining several features on a single chip to help make products like television set-top boxes, cellphones and broadband devices. The firm designs microchips, but outsources their production to companies such as Taiwan Semiconductor Manufacturing.

Officials said Broadcom was in preliminary talks with SemIndia, a public-private partnership involving chip maker Advanced Micro Devices, to outsource manufacturing from a proposed US$3 billion chip making facility in India announced on Wednesday.

Reuters says that McGregor said Broadcom, which has US$2 billion in cash, was also eyeing Indian companies for possible acquisitions in the high technology semiconductor research niche.

{mospagebreaktitle=Japan abandons 'IPod tax' idea}Japan abandons 'IPod tax' idea

Japan is forgoing a copyright law revision to charge royalties on digital music players -- a proposal dubbed the ''iPod tax'' -- after discussions in a government panel produced no consensus on ways to police violations.

The Associated Press reports in The New York Times that the decision Thursday from the Cultural Agency committee followed yearlong debate over how outdated the nation's system for levying an extra copyright fee on gadgets had grown, given the dramatic social changes in recent years in the digital content business, said government official Hiroyuki Suzuki.

According to AP., under today's system, the charge, generally 3 percent of the product's wholesale price, is included in the price tag so most shoppers aren't even aware they're paying it. But they apply to recording devices and other gadgets that can be used to duplicate copyrighted material.

Since last year, recording companies and other lobbies here have been grumbling that the same system should be applied to recording devices with hard-drives, including MP3 players like Apple Computer Inc.'s iPods as well as flash-memory players, reports AP in the NYT report.

AP says that the panel's members, including academics and consumer-rights activists, were divided on where to draw the line on what constitutes copyright infringement, so speculation had been that there would be no agreement by the December deadline.

Although the media in Japan is calling the system the ''iPod tax,'' the money goes to recording companies, composers and artists and so it's technically not a tax. Similar systems exist in European nations, reports AP.

{mospagebreaktitle=Mobile media set to explode: execs}Mobile media set to explode: execs

The market for television and other media on mobile phones is poised for an explosion and could be a hot area for investment, advertising and media executives at the Reuters Advertising and Media Summit said on Wednesday.

Reuters reports that Bain & Co. partner David Sanderson, head of the consulting firm's global media practice, said that emerging services such as mobile video could provide one of the strongest areas of growth for companies that create content.

``I like the wireless content space. That is an area that is going to go through massive growth,'' Sanderson said in response to a question about the next opportunities for investors to take advantage of the changing media landscape.

According to the Reuters report, wireless telephone operators around the world are all looking at providing services such as mobile TV, music downloads and web surfing to expand their revenue beyond conventional phone calls.

In the United States operators such as Verizon Wireless, a venture of Verizon Communication and Vodafone Group, and Sprint Nextel are already providing video clips such as news and entertainment to cell phones.

{mospagebreaktitle=Google sees advertisers devote spending more online}Google sees advertisers devote spending more online

Corporate marketers have made online advertising a standard part in media budgets as online spending looks set to accelerate further in 2006, Google's North American sales chief said this week.

Reuters reports in The New York Times that Tim Armstrong, Google's advertising sales vice president, said in an interview before the Reuters Media and Advertising Summit that 2005 marked the turning point when advertisers switched from testing to investing in the decade-old medium.

``There is robust interest in online advertising and that interest is now turning into real dollars,'' Armstrong said, noting that market analysts are predicting a banner 2005 year with forecasts ranging from US$10 billion to US$15 billion.

Reuters says that Jupiter Research estimates the US online advertising market will grow 28 percent over last year, to US$11.9 billion in 2005 to US$13.6 billion in 2006 and US$15.1 billion in 2007. The market for keyword-search advertising, has been growing at three times the industry rate, or around 100 percent a year.

According to Reuters, industry estimates put Google's market share at 30 percent of overall online ad spending, with as much as 40 percent of the category it dominates -- paid search.

Armstrong said two factors are driving the race to boost budgets. Consumer adoption of the web has far outpaced advertisers commitment to the medium. More recently, Madison Avenue executives have begun advising clients to close the gap by committing more dollars online, Armstrong said.

Reuters also reports that the acceleration of online ad budgets can be measured by the increasing number of companies marketing through online channels, the growing number of divisions within each company using the online medium and the percentages committed online relative to other media, the Google executive said.