Apple set to ship Intel-based computers

Apple Computer is on track to ship Intel-based computers as targeted by June 2006, Chief Executive Steve Jobs said on Tuesday.

Reuters reports in The New York Times (20 September) that Apple said on June 6 that it was severing its long-standing relationship with IBM and switching to microprocessors made by Intel, aiming to have all its Macintosh computers using Intel chips by the end of 2007. Microprocessors are the number-crunching nerve centers of personal computers (PCs).

Apple had publicly expressed frustration with IBM for over a year prior to the decision, according to Reuters.

The Reuters/NYT report says that IBM had had problems producing enough working versions of its PowerPC 970 chip, which Apple calls the G5. IBM had also to produce a version of the G5 that consumes less power and was suitable for use in Apple's laptop personal computers.

Apple's decision was a high-profile win for Intel, the world's largest chipmaker and a blow to IBM, though analysts said the Apple-IBM tie-up was never hugely profitable for IBM.

Jobs said Apple has a 4.5 percent share of the PC market in the United States and a 3 percent share globally, Reuters reports.

Almost 18 months after the European Commission ruled that Microsoft had abused its dominance in the software market, Europe's antitrust authority is considering opening new cases against the company, Neelie Kroes, the competition commissioner, said Monday.

The New York Times reports (20 September) that the commission ruling resulted in a fine of 497 million euros against Microsoft and an order to change the way it sells software in Europe. The changes have not formally taken effect yet and the ruling is under appeal at the European Court of First Instance.

In an interview at her office in Brussels, Ms. Kroes said she was not going to wait for a court outcome before taking further action. "We have had informal complaints, and we are using our time now to look at them," she said, adding: "We're not going to wait and do nothing."

The newspaper says that the informal complaints Ms. Kroes has received since taking office late last year focus on the bundling of existing applications and future ones. She refused to give details. Among the areas the new complaints might focus are on the bundling of the Office suite of software applications that include Microsoft Word, the word processing software, and Outlook, the e-mail program. These are sold as a package in most new personal computers, making it hard for rival word processors and e-mail programs to compete.

Microsoft responded Monday by saying it was keeping the commission apprised of its new products.

Last year, Microsoft was ordered to introduce a version of Windows that excluded Media Player, the company's music and video-playing program. The aim was to prevent Microsoft from having any unfair advantage over rival music and video players, reoprts the NYT.

Three months ago, Microsoft introduced Windows Edition N without Media Player, as required by the ruling. Delays in putting last year's ruling into effect, as well as the growing suspicion that part of the proposed remedy will not have the desired effect, have left some lawyers wondering about the value of last year's antitrust decision, according to the newspaper's report.

Chinese search engine Baidu.com plans to appeal a court verdict ruling it violated copyrights held by a local affiliate of global music giant EMI, Baidu's lawyer said Tuesday.

The Associated Press reports in The New York Times (20 SDeptember) that Beijing's Haidian District Court found Baidu guilty on Monday, saying it provided access to web sites offering illegal MP3 files of music belonging to recording company Shanghai Push, also known as Shanghai Busheng Music Culture Media Co.

Baidu, whose share price more than quadrupled following its listing on the Nasdaq last month, argued it merely provided a search function, not downloading services, and therefore wasn't violating copyrights.

AP reports that Baidu's mp3.baidu.com MP3 search page has made it hugely popular among young, increasingly tech-savvy Chinese. Analysts say it has grown into China's largest search engine, prompting U.S. search giant Google to buy 2.6 percent of the company last year.

The report also says that Baidu's high profile has also exposed it to the ire of international record companies, such as Universal, Warner, Sony BMG and their local subsidiaries, who are trying to stem losses attributed to illegal music downloading. Several are believed to be suing Baidu, although Li did not comment on any other cases.

Baidu said the Beijing court ordered the company to stop providing the alleged downloading services related to songs copyrighted by Shanghai Push and pay the company 68,000 yuan (US$8,395) -- 2,000 yuan (US$247) for each of the 34 copyrights the company said Baidu violated.

However, the company claimed that blocking access would severely interfere with Baidu's search function by forcing it to filter or block access to all files containing the same file names as Push's songs and that legitimate multimedia file owners and Internet users could be cut off from copyrighted files,reports AP in the NYT.

At least five online file-sharing companies have started trying to reach an accord with the music industry to convert the free trading of copyrighted music on their networks to paid services, according to several recording industry and file-sharing executives.

The New York Times reports (20 September) that the most advanced discussions are between the recording industry and Grokster, a small California company that has been sued by the entertainment industry, recording industry executives said.

According to the NYT report, Grokster has agreed in principle to be acquired by Mashboxx, a new company backed by Sony that is trying to start a legal file-sharing service, a person involved in the negotiations said. Mashboxx has made overtures to some file-sharing companies including eDonkey, Morpheus and LimeWire, but negotiations are not active, the person said.

The tentative agreement between Grokster and Mashboxx was first reported by The Wall Street Journal. MashBoxx would make a nominal payment for Grokster, but would share future revenue, the person involved in the negotiations said.

The newspaper says that separately, iMesh, a file-sharing service that last year reached an accord with the music industry to convert to a legal paid service, has made overtures to acquire a number of the other file-sharing services, on the condition that they settle their claims with the recording industry, an iMesh executive said.

IMesh has agreements with all the major record labels and plans to introduce its service to consumers "imminently," the company said.

Mashboxx announced a deal with Sony in June that would allow Mashboxx to sell Sony's music on its network. The company is in talks with other record labels, the company said. It hopes to introduce a public test of the service in December.

The newspaper says that record industry and file-sharing executives say that the recording industry is looking for settlements that resemble its deal with iMesh, which paid US$4 million in damages and promised to convert to a paid service that blocked the trading of copyrighted files without the permission of the copyright owner. None of the executives would discuss the amounts that the industry has been asking in the most recent settlement discussions.

The top security experts at the world's two biggest credit-card associations said on Monday that the battle against Internet-based thieves had reached a stalemate and the industry would have to spend millions of dollars over the next decade just to keep up with the criminals.

Reuters reports in The New York Times (19 September) that an executive for fraud prevention at Visa USA, and an executive for security and risk services at MasterCard International, said that organised crime rings -- with the help, in many cases, of former Soviet KGB cryptographers -- were successfully using the internet and ''crimeware'' software programs to circumvent the defenses credit-card issuers erected against them.

The Reuters report says that the picture they presented of an escalating struggle between commerce and criminality offered little hope of quick relief for consumers worried about identity theft or for investors in card-issuing banks concerned about security's escalating costs.

The credit-card companies were battling loosely knit, elusive criminal networks responsible for much of the fraud, they said.

According to the AP/NYT report, the sobering assessment came one day after Symantec, the world's biggest security software maker, released a report that showed hacking was no longer just the pass-time of precocious teenagers, but now was the province of organised criminals looking to gain access to personal information of computer users -- and their assets.

Symantec said that viruses designed to capture confidential information made up three-quarters of the top 50 viruses, worms and Trojans during the first six months of 2005, up from 54 percent in the last six months of 2004.

Visa said FBI data showed the number of internet-related credit-card crime reports rose 66 percent in 2004 and the average reported loss associated with the online scams tripled to US$2,400 from US$800 in 2003.

The companies said that while the criminals are increasingly savvy, in many cases they were inadvertently helped by sloppy security policies within the payment chain itself -- and by slip-ups by merchants, third-party processors or the credit-card companies themselves.

Symantec has attacked the perceived security advantages of Firefox and Apple Macs by drawing unfavourable comparisons with Microsoft's software and describing Mac fans as living in a "false paradise", reports The Register (19 September).

The Register says that, according to the latest edition of Symantec's Internet Security Threat Report, 25 vulnerabilities were disclosed for Mozilla browsers and 13 for Microsoft Internet Explorer in the first half of 2005.

The head of threat intelligence EMEA at Symantec, said that switching from IE to Firefox as a way of minimising security risks was no longer valid advice.

Symantec told The Register that cross-site scripting attacks have been used to attack more vulnerabilities in Mozilla browsers over the last six months than IE.
The chief executive of email filtering firm BlackSpider, replied that the release of Firefox had "helped Microsoft to raise its game" in terms of browser security.

The Register reports that, as well as making comments that will doubtless irk Firefox fans, Symantec has renewed its assault of the perceived security advantages of Apple Macs. Symantec said that Mac users may be operating under a false sense of security as a noteworthy number of vulnerabilities and attacks were detected against Apple Mac's operating system, OS X, reflecting comments in the previous edition of its threat report that OS X was an emerging target for attack.

Symantec also said that, while the number of vendor-confirmed vulnerabilities in OS X has remained relatively constant during the last two reporting periods [12 months], Symantec predicts this could change in the future.

The Register reports (19 September) that the cost of telecoms services will continue to fall as increased competition bites and new technologies are developed that can deliver more for less, according to the CEO of BT Wholesale, Paul Reynolds, speaking today at the Carriers World conference in London.

The BT Wholesale CEO told delegates that the economic rules that used to govern the telecoms industry are changing - and not just in the UK but around the world as operators witness "continual margin erosion and revenue reductions".

And while markets have become increasingly competitive he believes regulators are unlikely to ease up on incumbents any time soon.

The Register reports that the company's CEO said that "the telecoms market is a tough place to be and it takes a lot of hard work, a lot of additional sales and continual cost-savings - just to stand still."

And, he didn't believe that the price reductions that end users expect and demand, and that regulators often mandate, are about to be relaxed anytime soon.

The company said that communications in the UK is an ultra competitive market and that level of competition will continue to drive continual downward pressure on prices.

Two European airlines will allow passengers late next year to use their own cell phones on commercial flights within western Europe, a Geneva-based technology firm said Tuesday.

The Associated Press reports (20 September) in The New York Times that TAP Air Portugal and British carrier bmi both have agreed to introduce OnAir's voice and text service for cell phones in separate three-month trial runs, a company executive said.

The planes -- which will be the first to allow passengers to make and receive calls with their own cell phones while onboard -- will give OnAir the chance to assess its service ahead of its general release slated for 2007, the company announced.

OnAir's system will be used by TAP on its Airbus 321 model and by bmi on its Airbus 320s, both single-aisle planes primarily used for flights within western Europe.

The AP report says that users of mobile phones and other handheld wireless devices with roaming capability will be able to make and receive calls using a base station within the airplane. They will be allowed to turn their phones on after the plane reaches 10,000 feet, when other electronic devices such as portable music players and laptops are permitted.

Mobile phones are banned on existing aircraft for fear that they might interfere with a plane's navigation system as they attempt to log on to terrestrial networks.

According to AP in the NYT report, OnAir's mobile communications system is based within the plane, which it says ensures that cell phones and other devices operate at lower transmission power and thus avoid affecting avionics. The company hopes to clear all regulatory hurdles for air traffic within Europe at some point next year.

OnAir -- a joint venture of Airbus and Netherlands-based technology company SITA Information Networking Computing -- is aiming to sell its services to other airlines, which could then use the technology in other plane models.

The OnAir executive said the surcharge for mobile phone use will be competitive with international roaming rates, at about US$2.30-US$2.50 per minute. A text message should cost about 50 cents to send or receive.

Airline bmi, a subsidiary of British Midland, flies primarily to destinations in Britain and western Europe and is London Heathrow Airport's second-largest flight operator.

TAP, Portugal's state-owned airline, flies to 43 destinations in 25 countries.

Vodafone Group's Japanese subsidiary said on Monday it would introduce about 10 new handset models this year to help shore up the struggling business and help it meet a turnaround target for March 2006.

Reuters reports (19 September) in The New York Times that Vodafone, who with Japanese telecoms veteran Shiro Tsuda is battling against rising competition in one of the world's most sophisticated mobile phone markets, said the first models in the new batch of terminals would be made by Japanese vendors Sharp and NEC and Finnish rival Nokia.

The company said that this year it was expecting to introduce approximately 10 more new handsets, including four new terminals from Sharp, NEC and Nokia.

Oracle has promised continued support for acquired applications while juggling with a shareholder legal action against its US$5.85bn Siebel Software bid.

The Register reports (20 September) that Charles Phillips, Oracle's president, announced a lifetime support policy to give customers confidence their existing software investments would be protected.

According to The Register, Phillips announced lifetime support while opening the annual OracleWorld conference in San Francisco, California, Monday. Previously, Oracle has pledged support for PeopleSoft and JDE Edwards through until 2013 at least . And Oracle's chief executive, Larry Ellison, last week promised to support the existing suite of Siebel products "for some time to come".

The Register says that Oracle's commitment emerged as its latest acquisition hit a legal snag. Three shareholder actions have been filed that claim Siebel failed to maximise shareholder value and sold to Oracle without entering into a fully-fledged auction process. One action, clearly filed with an eye on Oracle, charged the purchase was intended to take advantage of a recent low in Siebel's share price. News of the actions emerged in latest Stock Exchange Commission (SEC) filings from Siebel.

The publication says that Oracle is, meanwhile, considering support for rivals' databases in the company's planned Project Fusion strategy - a program that will converge Oracle's applications with those from companies it has acquired on the same architecture. Project Fusion is expected to appear in 2007.

Phillips told OracleWorld that the company's Project Fusion council, a group that is overseeing the integration of products Oracle has acquired during the last nine months, is evaluating support for rival companies' databases. He called the plan to put WebSphere on Project Fusion one of Oracle's most important customer focused projects.

Reuters reports in The New York Times (19 Septewmber) that, with DVD sales expected to reach US$21 billion next year, it may be comforting for consumers to know used discs now have a second life as tradable currency on a year-old Web site called Peerflix.

And at 99 cents a pop, the new commodities may threaten to erode demand for DVD rental services down the road, comments Reuters.

Launched by two friends in California, Peerflix went live a year ago last summer and has grown to 40,000 users in the six months or so that it has been widely available.

Reuters reports that Peerflix is a trading platform that asks users to make lists of DVDs they want and DVDs they want to get rid of, then matches ``wants'' with ``haves'' for 99 cents a trade.

The company provides a mailing label with a tracking number and shipping envelopes. Users must pay postage.

Each movie title is assigned between one and three ''Peerbux,'' based on their desirability. Users rack up Peerbux each time they ship a movie, and can then use their loot to purchase movies from other users. Or they can buy Peerbux for cash to get the cycle started.

The Reuters/NYT report says that Peerflix co-founder Billy McNair told Reuters that the potential market for DVD trading is enormous, with the company's research showing that 60 percent of the 4 billion discs sold over the past eight years were watched only twice.

The Peerflix site clocked 10,000 trades in August and is set to nearly double that in September, McNair said.

A PriceWaterHouseCoopers report shows that US consumers are expected to spend US$18.8 billion on DVD purchases this year, and nearly US$21 billion in 2006. By 2009, DVD spending is expected to rise to US$29 billion, the report said.

Top Taiwan computer gear maker BenQ expects 2006 revenue to reach US$10 billion after acquiring Siemens's mobile phone business, the company's chief marketing officer said on Monday.

Reuters reports in The New York Times (19 September) that the company told Reuters BenQ would gain Siemens's handset revenue stream, while sales of liquid crystal display (LCD) monitors would also grow.

According to reuters, BenQ, which garnered sales of US$5 billion in 2004, agreed in June to take over Siemens's loss-making mobile phone unit to beef up its presence in the highly competitive sector. The Taiwan firm expects the merged handset unit to break even next year.

While analysts say BenQ will have a tough time turning around the unit, the Siemens deal, which will be closed later this year, catapults the relatively obscure Taiwan firm into the world's top 10 handset makers, says Reuters.

BenQ has not forecast 2005 revenues, but nine analysts surveyed by Reuters Estimates put its 2005 revenues at an average T$140.2 billion. Sales are expected to rise further to T$164.6 billion in 2006.

Reuters reports that LCD monitors make up about half of total revenue. Besides LCD monitors and handsets, BenQ also produces projectors, LCD TVs, notebook computers and portable digital music players.

Government cargo inspectors would be able to get real-time data about the contents and whereabouts of shipping vessels around the world under a new tracking service being introduced by IBM and the Danish shipping giant AP Moller-Maersk.

The Associated Press repooprts in The New York Times that the monitoring program involves putting a shoebox-sized wireless sensor inside individual cargo containers. The devices would relay data on the containers' location and condition -- and whether they appear to have been tampered with -- via satellite to a centralised system accessible by manufacturers, retailers and shipping companies in addition to government inspectors.

Currently, US port inspectors can electronically access information about the contents of a cargo vessel, but it's generally limited to static data gathered when the ship left port, according to Customs and Border Protection, part of the US Department of Homeland Security.

Thew AP/NYT report says that the technology, developed by IBM researchers, is due to be tested on Maersk ships beginning this fall. The companies want to be sure the tracking devices -- which are bigger and more powerful than the passiveradio-frequency identification chips being added to many companies' supply pallets -- work in a real shipping environment. Water and metal can interfere with some wireless transmissions.

In the US., Sprint Nextel is becoming the latest cell phone carrier to let its customers listen to music on the devices.

The Associated Press reports (19 September) in The New York Times that the nation's No. 3 wireless provider said Monday that it and Seattle-based digital media provider RealNetworks are launching a streaming music service for Sprint PCS customers called Rhapsody Radio.

The service provides streaming radio stations, a freestyle rap service called ''Beats N Breaks,'' music news, videos and podcasts -- recorded audio files that are downloaded from the internet -- for US$6.95 per month.

AP says that wireless companies, inspired by the popularity of Apple Computer's iPod and other MP3 players, have raced each other to add music content to their service portfolios.

Earlier this month, Apple introduced the Motorola-made ROKR phone that comes loaded with iTunes software and allows users to load up to 100 songs on their phones. The service is being sold in the United States by Cingular Wireless.

In Europe, six telecoms firms, including Bulgaria's dominant fixed-line operator BTC and mobile phone operator Mobiltel, have expressed an interest in acquiring high-speed wireless permits, the telecoms regulator said on Monday.

Reuters reports in The New York Times (19 September) that Mobiltel, controlled by Telekom Austria, and BTC, majority owned by US equity fund Advent, will compete with four smaller local players for two so-called point-to-multipoint licenses, to be auctioned on 11 October.

According to Reuters in the NYT report, the technology allows for fast and high-quality broadband data transfer such as voice, video, multimedia and internet surfing, the regulator said. It will auction three similar licenses with smaller capacity on 25 October.