EU Commission denies Microsoft deadline extension

Microsoft lost a bid on Wednesday for a second delay in responding to charges it failed to comply with European antitrust remedies, moving it one step closer to a fine of up to 2 million euros (US$2.4 million) daily.

Reuters reports in The New York Times (8 February) that an independent European Commission hearing officer also turned down the US software giant's request for access to correspondence involving technical experts, which it wanted for its defense.

``We have confirmed the deadline of February 15 on the basis that nearly eight weeks should be sufficient for Microsoft to reply to a comparatively short statement of objections,'' a Commission spokesman told Reuters.

The EC spokesman said the hearing officer had given Microsoft access to some third-party correspondence, because the people involved had waived their right to confidentiality.

In a quick response, Microsoft focused on the denial of access to correspondence between the Commission, a monitoring trustee and other technical experts.

{mospagebreaktitle=Dell tools up with Google}Dell tools up with Google

Google could dole out up to US$1billion over three years for the rights to have the Google Toolbar pre-installed on Dell PCs, claims The Register in a 9 February report.

According to The Register, the PC maker has confirmed that it is piloting sales of PCs pre-installed with Google software. The publication says it was smoked out by the Wall Street Journal, which today published a well-sourced article on the battle for PC "real estate", conducted by Microsoft, Google and Yahoo!.

According to the paper, Dell set up an auction last autumn in which it invited internet firms to bid for the rights to pre-load software on its PCs. It says Yahoo! withdrew from the race and then Google went on to beat Microsoft in a straight fight.

The Register reports that Google has already signed up for bundling with HP. It pays US$1 for every PC installed with a Google toolbar and 75 cents for the first time the user types in a query on his spanking new HP PC, the WSJ says.

{mospagebreaktitle=US web sites hawking phone records shut down}US web sites hawking phone records shut down

Following a wave of negative publicity and pressure from the US government, several web sites in the US that peddled people's private phone records are calling it quits.

''We are no longer accepting new orders'' was the announcement posted Wednesday on two such sites, locatecell.com and celltolls.com, reports The Associated Press in The New York Times (9 February).

AP says that the Federal Trade Commission this week conducted a sweep of 40 sites known to have been selling private phone records. According to the FTC, more than 20 sites have recently shut down or stopped advertising for new business.

The agency has sent letters to about 20 other sites, warning them that they may be violating the law and should review their business practices.

AP reports that pretexting for financial data is illegal, but there's no specific law against pretexting for phone records. Broader fraud laws can be used to prosecute the companies.

The Federal Communications Commission is also investigating online data brokers. It has subpoenaed about 30 companies for information on how they are obtaining the phone records, reports AP.

{mospagebreaktitle=IBM unveils server line that uses game chips}IBM unveils server line that uses game chips

IBM is betting on video game technology to bring supercomputer-caliber visualisation tools to its mainstream corporate market and to reduce the computing costs of daunting tasks like hunting for oil, discovering new drugs and exploring the human body, according to a report in The New York Times (9 February).

The newspaper reports that IBM announced server computers powered by microprocessors yesterday, using an innovative design called Cell, which was created first for video games.

A Cell chip is the processing engine for Sony's new PlayStation 3 video game console, expected to go on sale later this year. IBM., Sony and Toshiba jointly developed the Cell technology.

The newspaper says that the move by IBM is an example of a reversal of the traditional trend of technology adoption. In the past, advanced technology was used first by large corporations and the Pentagon. Today, the consumer market often leads as the cost of computing continues to drop sharply.

The IBM Cell server, analysts say, will probably be used first to reduce the cost of applications that now require processing huge amounts of data and presenting the results visually on a screen, says the NYT.

Those applications include converting seismic data into simulated underground images to help petroleum companies look for oil and gas deposits, biological simulations to aid in understanding disease and suggest therapies, and fluid dynamics simulations to improve the aerodynamic design and reduce fuel consumption of jetliners.

According to the NYT., the Cell chip will be best at what might be thought of as "multimedia physics," computing chores that depend on processing huge volumes of mathematical calculations, known as floating point operations, at lightning speed.

The newspaper reports that IBM plans to make the Cell technology widely available to universities and software companies interested in developing applications that will run on Cell chips.

{mospagebreaktitle=Nortel offers US$2.4 billion to settle lawsuits}Nortel offers US$2.4 billion to settle lawsuits

Nortel Networks, the troubled maker of telecommunications equipment, offered about US$2.4 billion in cash and stock Wednesday to settle two class-action lawsuits over an accounting debacle two years ago.

The New York Times reports (9 February) that the announcement was the latest in a series of steps taken by Mike S. Zafirovski, the company's chief executive, to strengthen Nortel. The company is recovering from the collapse of the technology bubble in 2000 and from accounting irregularities, among them reporting sales that had not yet been made, that led to the firing of seven of its top executives in 2004. The company later restated four years of results.

According to the newspaper, if the settlement is accepted, Nortel would pay the plaintiffs US$575 million cash and issue shares equal to about 14.5 percent of its outstanding equity. Nortel will take charges totaling about US$2.47 billion to cover the cost of the settlement in the fourth quarter, which it has not yet reported. The US$575 million payment will come out of Nortel's cash reserves, which now total US$3 billion.

The NYT reports that a lawyer for the OPSEU Pension Trust in Toronto, the lead plaintiff in one of the suits, said the management changes at Nortel appeared to have played a role in reaching the agreement.

And, says the newwspaper,a lawyer for the Ontario Teachers' Pension Plan Board, which spearheaded the other lawsuit against Nortel with the State of New Jersey, said the board agreed to the settlement in part because of its experience with Nortel's new management, which included an extensive presentation on the company's future earlier this week from Mr. Zafirovski.

{mospagebreaktitle=Group claim: Yahoo aided crackdown on dissident}Group claim: Yahoo aided crackdown on dissident

Yahoo provided Chinese authorities with information about one of its users that was used to jail the man for eight years, an activist group said Thursday. It was the second time Yahoo was accused of helping authorities jail a Chinese user.

The Associated Press reports in The New York Times (9 February) that Yahoo's Hong Kong unit provided information about Li Zhi, a man from southwestern China who was sentenced to prison in 2003 on subversion charges after posting comments online criticizing official corruption, Paris-based Reporters Without Borders said.

A Yahoo spokeswoman, Mary Osako, said the company didn't know of the case and couldn't comment on whether the Reporters Without Borders account was accurate.

According to AP., however, Osako said Yahoo Hong Kong would not have had access to Li's Chinese account and that it never releases information to the Chinese government. Osako said the company was investigating whether Yahoo China -- operated by a partner company -- released the data.

The claim comes as US lawmakers are holding hearings on the activities of US-based internet companies that are cooperating with censorship efforts by China's communist government.

{mospagebreaktitle=DoCoMo, Nippon TV consider mobile tv services}DoCoMo, Nippon TV consider mobile tv services

NTT DoCoMo, Japan's largest mobile operator, and Nippon Television Network, the country's second-largest broadcaster, said on Thursday they have agreed to a tie-up to look into mobile digital TV services.

Reuters reports in The New York Times (9 February) that the two companies will each invest 5 billion yen (US$42 million) to set up a fund that will consider ways to offer digital television services for mobile phones as well as other opportunities for bringing Nippon TV content to DoCoMo users.

It is DoCoMo's second agreement with a broadcaster, and comes as the industry prepares to offer digital TV programs for cellphones starting on 1 April.

Reuters reports that DoCoMo in December agreed to buy a 2.6 percent stake in Fuji Television Network for about US$177 million.

According to Reuters, mobile operators, under pressure to increase their business in a saturated market, need the cooperation of TV networks because they control much of both the TV and movie industry in Japan, unlike in the United States, where Hollywood studios control the lion's share of desirable content.

DoCoMo and Nippon TV said they planned to start the new partnership on 3 April.

{mospagebreaktitle=Vonage plans sale of stock}Vonage plans sale of stock

In the US., Vonage Holdings, a provider of internet-based telephone service, filed an initial public offering yesterday with the Securities and Exchange Commission to sell up to US$250 million in common stock.

The New York Times reports (9 February) that the move to go public is the first for an internet phone provider and indicates a new level of prominence for a technology that has emerged in the last five years to become a serious threat to traditional phone companies.

According to the newspaper, Vonage, has been a driving force in developing and promoting the technology, known as VoIP, which allows people to place voice calls over broadband internet lines.

The public offering underscores how fast Vonage, which was founded in 2000, has grown and how rapidly the telecommunications landscape is shifting, says the newspaper.

The NYT says that increasingly, internet lines are being used to deliver all manner of services, from phone calls to television programming.

The report says that under pressure, phone companies and cable providers are altering their services to compete with upstarts like Vonage, which are not dependent on big capital investments and are not subject to federal regulation. Cable providers like Cablevision and Time Warner Cable, and even some Bell companies like AT&T, appear to be cutting into Vonage's business by offering internet phone services, reports the NYT.

{mospagebreaktitle=Sony sets price for Blu-Ray discs}Sony sets price for Blu-Ray discs

Sony Pictures this week became the first major studio to put a price tag on Blu-ray discs when they become available in US stores this year.

Reuters reports in The New York Times (8 February) that at the same time, the studio unveiled what many observers believe will be a key component of the next-generation, high-definition optical disc's marketing strategy: bundling various formats together to give consumers more flexibility and mobility.

Catalog Blu-ray disc titles will wholesale for US$17.95, about the same as DVDs when that format hit the market in 1997. New-release Blu-ray discs will wholesale for us$23.45, a premium of 15%-20% over what suppliers were charging for new theatrical DVDs.

Reuters reports that the higher pricing structure for new releases is meant to accommodate the sell-through and rental markets, said Benjamin Feingold, president of Sony Pictures Home Entertainment. He noted that in at the dawn of DVD in 1997, most movies initially were released on rental-priced videocassettes.

{mospagebreaktitle=Google battles broadband provider fee}Google battles broadband provider fee

Internet giant Google has this week said that the wide variety of web sites might shrink if broadband providers like AT&T start charging companies for premium access to high-speed networks.

The Associated Press reports in The New York Times (8 February) that the Bell companies promised members of the Senate Commerce Committee that they have no plans to block internet services. Lawmakers are considering legislation to guarantee consumers open access to the internet -- a notion those in the industry refer to as ''net neutrality.''

According to AP., AT&T and BellSouth in particular have suggested charging internet services such as Google, Yahoo and Vonage Holdings for the high-quality delivery of their content over the phone companies' networks. The phone companies say they're investing billions of dollars upgrading their broadband networks and should be able to recoup that cost.

{mospagebreaktitle=Google puts instant message service inside e-mail}Google puts instant message service inside e-mail

Google users will be able to conduct instant message chats from a Google web browser window, alongside their e-mails, instead of requiring a separate application, the company has said this week.

Reuters reports in The New York Times that Google, known for its simple and powerful web searching, hopes that by embedding new instant messaging software it calls ''Gmail Chat'' into its existing e-mail service, it can differentiate itself in a crowded market it was late to join.

The Reuters reports says that the company is struggling to stand out in an entrenched field. Instant messaging was pioneered by America Online more than a decade ago. AOL, Yahoo and Microsoft now have tens of millions of users each.

{mospagebreaktitle=Napster turns Q3 profit to loss}Napster turns Q3 profit to loss

Despite adding tens of thousands of customers, Napster continued to cough up tons of cash in its third quarter, according to The Register in a 9 February report.

The Register says that Napster's revenue increased 94 per cent year-over-year to US$23.5m. Its net loss, however, grew to US$17m from a profit of us$12.8m in last year's Q3. Management preferred to focus on the addition of 66,000 premium subscribers to its music rental service rather than dwelling on the mounting losses, according to the publication.

"Napster had a strong third quarter, adding substantially to our premium subscriber base which now totals in excess of 500,000," said Chris Gorog, Napster's CEO, The Register reports.

Gorog told The Register: "We have grown our premium subscribers 110 per cent year over year confirming strong demand for Napster's subscription product."

The company announced that it plans to roll out a free version of its service this year that will rely on advertising revenue.

{mospagebreaktitle=EU drops Philips CD-R probe}EU drops Philips CD-R probe

Philips Electronics has changed its licensing program for the technology to make recordable CDs, prompting the European Commission to end an investigation into it, the Commission announced on Thursday.

Reuters reports in The New York Times (9 February) that the EC said the new licensing conditions offered by Philips are likely to bring about lower prices and more transparency for millions of consumers of recordable CDs.

A small group of companies holds patents for the CD and DVD standards, and others who make discs must pay them. In a number of cases, licencees have complained they are treated unfairly.

According to Reuters, a coalition, the Federation of Interested Parties in fair Competition in the Optical Media sector, had complained about the terms from Philips for CD-Rs.

Under the agreement with the Commission, Philips will publish a list from independent experts identifying essential patents.

It will also clarify that discs which do not use a proprietary Philips technology but alternative approaches still qualify as CD-Rs, reports Reuters.

{mospagebreaktitle=Symbian slashes smart-phone OS fees}Symbian slashes smart-phone OS fees

Symbian is to halve the cost of its mobile phone operating system in a bid to boost the take-up of its software and spread the OS' reach out of the high-end smart phone sector.

The Register reports (8 February) that the new model could see vendors pay as little as US$2.50 a unit, the company said.

According to The Register, Symbian currently charges handset manufacturers US$7.25 for each of the first 2 million phones it ships of a given Symbian OS-based model. Beyond that, it charges US$5 a unit.

The Register says that from July, however, it will offer vendors the chance either to pay a percentage of the trade price of the devices they're offering, or adopt "scaleable pricing that reduces as the licensee's total volume of shipments increase within a one-year period".

{mospagebreaktitle=Symantec reels in Relicore for data centre push}Symantec reels in Relicore for data centre push

Symantec has agreed to buy data centre management firm Relicore for an undisclosed amount. The deal, announced Tuesday, is expected to close in mid-February 2006.

The Register reports (8 February) that Relicore makes data centre change and configuration management products that allow firms to simplify management by providing tools to automatically discover, map, and track changes to application and server components.

The technology gets around problems associated with manually collecting and maintaining asset inventories and makes troubleshooting problems more straightforward, says The Register.

{mospagebreaktitle=Russian keyloggers hit bank customers}Russian keyloggers hit bank customers

Russian scammers used key logging Trojans to steal more than a €1million from French people accessing online bank accounts.

The Register reports (8 February) that the Trojans were sent by email but were not activated until people accessed their online bank accounts. Then the Trojan forwarded on user names and passwords to the crooks.

The thieves then used the details to transfer funds to third party "mule" accounts. The worst individual loss was €40,000. French police were told in November 2004 and the scam lasted 11 months, reports The Register.