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Monday, March 21, 2011

Deal to combine AT&T, T-Mobile raises questions (AP) : Technet

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Deal to combine AT&T, T-Mobile raises questions (AP) : Technet


Deal to combine AT&T, T-Mobile raises questions (AP)

Posted: 21 Mar 2011 03:53 PM PDT

WASHINGTON – AT&T's surprise announcement that it plans to acquire T-Mobile USA will force federal regulators to confront a difficult antitrust question: Can American consumers get good wireless service at a fair price if they must choose between just two national companies?

That debate will be at the center of the government review of the $39 billion cash-and-stock deal announced Sunday. If approved, the purchase would catapult AT&T past Verizon Wireless to become the nation's largest cellphone service provider.

The deal would combine AT&T Inc., the nation's second-largest wireless carrier, with T-Mobile USA, the fourth-largest, which is now owned by Germany's Deutsche Telekom AG. And it could pave the way for Verizon to go after Sprint Nextel Corp., which would be a distant No. 3 and the only remaining national provider.

None of the smaller U.S. carriers, including Leap Wireless, Metro PCS and U.S. Cellular, has complete nationwide coverage.

Officials at the Justice Department and the Federal Communications Commission could spend a year or more scrutinizing the deal before deciding whether to block it or allow it to proceed with substantial conditions attached.

"I am not convinced that this deal is unthinkable," said Jeffrey Silva, an analyst with Global Medley Advisors. "But it's a very, very heavy lift."

Regulators will conduct a thorough market-by-market analysis to determine how many wireless choices consumers would have in communities across the country. And even if they allow the deal to go through, government officials would probably require the combined company to sell off assets — including wireless spectrum, cell towers and customers — in particular markets that are too concentrated.

The bigger question facing federal officials is whether the enormous cost of building a nationwide wireless network means that a market dominated by only two companies is the best they can hope for.

And if that's the case, what kinds of merger conditions should the government impose on AT&T to prevent it from abusing its power?

"This marketplace doesn't work even before this merger," said Mark Cooper, director of research for the Consumer Federation of America. "I want policymakers to confront the fiction that competition in this market is sufficient to protect consumers."

Cooper, for one, would like to see federal regulators bar AT&T from engaging in common industry practices such as charging consumers large fees for text messaging and for ending contracts before they expire.

He would also like to see government officials impose stronger "network neutrality" rules on AT&T's wireless system to ensure that subscribers can access apps and other online applications without carrier interference.

Net neutrality rules adopted by the FCC late last year prohibit broadband providers from discriminating against online traffic, but they give wireless companies a considerable amount of flexibility to manage traffic on their systems.

Analyst Rebecca Arbogast of the firm Stifel Nicolaus believes government regulators will also consider conditions intended to help smaller wireless providers compete.

Those could include data-roaming obligations, which would require AT&T to let smaller regional wireless companies use its network to send data traffic in places where they do not offer their own service. The FCC is currently considering adopting industry-wide data roaming rules.

Government officials could also impose "special access" obligations, which would guarantee rival wireless companies access to vital lines owned by AT&T that they rely on to connect their towers to broader telecommunications networks and the Internet.

Smaller carriers — most notably Sprint — argue that they pay excessive prices for that access because much of the critical network infrastructure is owned by the big landline telephone companies, AT&T and Verizon, which compete with them in the wireless arena.

If government officials do eventually sign off on AT&T's proposed acquisition of T-Mobile, they will likely require the combined company to sell off wireless spectrum in certain markets. The hope would be that these airwaves — which are in scarce supply — would wind up in the hands of smaller players such as Sprint and Leap, possibly restoring some competition.

Wireless companies are clamoring for more airwaves to keep up with the explosive growth of online apps, mobile video and other bandwidth-hungry wireless applications. Indeed, AT&T has said that one key benefit of the T-Mobile transaction is that it would provide both carriers with access to more spectrum, although AT&T already has an ample supply of spectrum it is not planning to use for several years.

Both the FCC and the Obama administration are exploring ways to free up more spectrum for wireless broadband.

T-Mobile's own unsuccessful struggles to get more wireless spectrum may have helped push it into the arms of AT&T. The company had been aggressively lobbying Congress and the FCC to auction off a prime slice of airwaves freed up in the 2009 transition from analog to digital TV signals.

T-Mobile had hoped to bid on that spectrum and appeared to make a convincing case with the FCC, which had proposed auctioning off the airwaves last year.

But in a major setback for T-Mobile, the agency later backed away from that plan after running into substantial opposition from public safety officials — and their backers in Congress — who want to use the spectrum to build a nationwide wireless network for police officers, firefighters and other emergency workers.

For its part, AT&T rejects the notion that the wireless industry is too concentrated.

James Cicconi, senior executive vice president for external and legislative affairs, noted that consumers will still have a choice of multiple wireless providers — including Leap, Metro PCS and U.S. Cellular — in many markets even if the deal is approved.

He added that the merger will produce significant benefits for the public, as AT&T has promised to blanket 95 percent of the U.S. population with high-speed, fourth-generation wireless Internet access, also known as 4G. That goes to the heart of a top telecom policy goal for both the FCC and the Obama administration, which have pledged to bring high-speed Internet access to all Americans. They see wireless as critical to meeting that goal, particularly in rural areas where it does not make economic sense to build landline networks.

Other factors that could help AT&T sell the deal to the government include its promise to invest more than $8 billion in its 4G network over the next seven years and the fact that the company's workforce is unionized. T-Mobile's workers do not have bargaining rights.

At this point, it's too soon to know whether the merger will be approved. But what is clear, Silva said, is that "there will be a rich mix of very important policy and political considerations."

AT&T talks of spectrum shortage, yet it has plenty (AP)

Posted: 21 Mar 2011 02:49 PM PDT

NEW YORK – AT&T says it wants to buy T-Mobile USA to acquire more airwaves to support the growing use of data-hungry devices such as the iPhone. But if that's the case, the T-Mobile deal isn't much of a solution.

Having the right to use airwaves, or wireless spectrum, is essential to phone companies. More spectrum means more phone calls and more data can be carried in the same area.

But AT&T Inc. already has an ample supply of unused wireless spectrum that it plans to use to expand its network over the next several years. And much of T-Mobile's spectrum is already in use, so the deal won't result in fresh airwaves becoming available.

"The notion that there's a spectrum crisis has been greatly exaggerated for (the) political purposes of a few select companies like AT&T," said Derek Turner, research director at public-interest group Free Press in Washington.

In fact, AT&T has made great strides in addressing network congestion in such cities as New York and San Francisco not by tapping its unused spectrum, but by upgrading its cell-tower equipment.

AT&T has reasons besides spectrum gains to pay $39 billion for T-Mobile. For one, it hopes to persuade many of T-Mobile's customers to switch to smartphones, which carry higher monthly fees. That's an argument that appeals to investors, but not to regulators at the Federal Communications Commission and the Department of Justice, both of which will be reviewing the deal.

In a conference call with investors Monday, AT&T CEO Randall Stephenson said the company is facing "impending spectrum shortages in major markets."

"AT&T has been at the leading edge of mobile data growth on our network as a result of supporting more smartphones, more tablets, more e-readers than anyone else in the country," he said. "This has created an urgent need, an ongoing need, for significantly more spectrum to support this explosive demand."

Mobile data usage has indeed exploded over the last few years, but AT&T's own figures indicate that growth is slowing down now that smartphones are already in many hands.

Speaking to investors and journalists after the deal was announced, Stephenson said several times that the company's mobile data volumes have increased 80-fold over four years — since the launch of the iPhone. But he also said he expects data volumes to grow eight to 10 times over the next five years, a much lower rate.

AT&T and its chief competitor, Verizon Wireless, have healthy spectrum holdings, thanks in large part to a government auction of old TV airwaves in 2008.

Sprint Nextel Corp., the No. 3 wireless provider, has huge amounts of spectrum available to it through a partnership with Clearwire Corp., of which it also owns the majority. That spectrum, too, is largely unused, but some technical considerations make it more difficult to exploit than Verizon's and AT&T's holdings.

AT&T has enough airwaves that it agreed to transfer some of its spectrum holdings to T-Mobile USA, along with a $3 billion breakup fee, if the deal is blocked by regulators.

Even if the deal doesn't increase the amount of spectrum available to U.S. phone users, there are some gains to be expected in terms of the amount of data and the number of calls that can be carried.

That's because combining the spectrum holdings of AT&T and T-Mobile would let AT&T make better, more efficient use of T-Mobile's holdings.

Today, if AT&T's data network is overloaded in an area, the traffic doesn't move over to T-Mobile's network, even if there's spare capacity there. But that would happen after the two companies combine, resulting in better utilization.

But the logical extension of that argument is that we could make even better use of the airwaves if we had only one wireless company in the nation — a monopoly. The economics of the business already point in that direction: The No. 3 and 4 carriers, T-Mobile and Sprint, have been struggling for years against the industry leaders, AT&T and Verizon Wireless.

T-Mobile's AT&T-mocking ads likely to retire (AP)

Posted: 21 Mar 2011 02:10 PM PDT

NEW YORK – In its TV ads, T-Mobile USA portrays the cellular network of its soon-to-be parent company as a droll, middle-aged bald man in a gray suit. It's highly likely that this droll bald man will retire now that AT&T Inc. has agreed to buy T-Mobile USA for $39 billion.

In fact, if the deal clears regulatory hurdles and closes a year from now, as planned, T-Mobile is going to go away as well, folding into AT&T's brand.

Robert Passikoff, founder of Brand Keys, a New York-based brand loyalty research group, said T-Mobile will likely find a neutral territory until the deal closes. By then most people will have likely forgotten the ads.

"You tell me, three years ago, what campaign Burger King was running against McDonald's?" he asked.

The T-Mobile ads, which are on TV as well as YouTube, usually have three characters. There's the bald guy, who personifies AT&T's network; a svelte young woman in pink, who is T-Mobile's myTouch 4G phone; and an otherwise capable-looking young man, who's Apple's iPhone 4. The young man is constantly being slowed down and otherwise impeded by the balding suit.

It's reminiscent of Apple Inc.'s "I'm a Mac, I'm a PC" ads. In these, PCs are portrayed by a decidedly uncool, slightly pudgy man in business casual who's constantly being outperformed by the younger Mac guy when it comes to touting the qualities of the computers they represent.

In one T-Mobile ad, the AT&T guy is shown piggybacking on poor iPhone 4 guy, who does not look too comfortable.

"That'll slow you down," quips the woman. She isn't giving anyone a piggyback ride and cheerily touts the benefits of T-Mobile with the slogan "America's Largest 4G Network."

T-Mobile launched the ad campaign on Nov. 2. Cellular data networks known as "4G," or fourth-generation, are faster than the previous, third generation ones. Wireless carriers have been touting 4G benefits to customers.

The T-Mobile ads have been visible, but it's not clear if they've had any effect. The company, which is currently the fourth-largest wireless carrier in the U.S., lost 318,000 subscribers on contract-based plans in the fourth quarter. The other three carriers, including Sprint Nextel Corp., all added customers in the same period.

T-Mobile USA did not immediately return messages for comment about the fate of the ads Monday.

FellowUp Makes Following Up Manageable [INVITES] (Mashable)

Posted: 21 Mar 2011 04:33 PM PDT

The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark. If you would like to have your startup considered for inclusion, please see the details here.

Name: FellowUp

Quick Pitch: FellowUp connects to Google, Facebook and LinkedIn to serve as a web and mobile personal assistant.

Genius Idea: Scaling contact management for social media users.


Tomer Cohen was a bit overwhelmed when he first arrived from overseas to earn his MBA from Stanford. "I was meeting great people and making great connections," the class of 2010 business school graduate told me over coffee. "I kept building my network here … but at the same time I kept dropping the ball on those connections. I just didn't have the time or the effort to actually maintain them and follow up."

Like most of us, Cohen found that the relationships he invested time in were the ones that eventually paid off professionally. With hundreds or thousands of social media and digital connections, however, the time it takes to properly invest in one's network is no longer sustainable or scaleable, he says.

And so Cohen created FellowUp, a private beta website and iPhone application that plugs in to Facebook, LinkedIn and Google APIs to help users better manage their relationships. FellowUp, in Cohen's words, is a personal executive assistant that finds insights from the user's network.

FellowUp users need only connect their third-party accounts and the startup will pull in contacts and calendar items. The website structures data into three tabs: my day, contacts and notes. The user will find the most immediate value in the "my day" tab, where FellowUp highlights updates -- anything happening in the user's network, like a birthday or a job change -- calendar events, and tasks as added by the user.

The user can engage with FellowUp updates from the site to post on a contact's Facebook wall and say "happy birthday," message a LinkedIn connection to congratulate him or her on the job change, email a personal message or set a reminder to follow up at a later date.

Eventually, according to Cohen, FellowUp will do a better job at alerting the user to all manner of important events, with importance determined by user preference, happening around his contacts.

"FellowUp is going to fetch you information that is valuable," says Cohen, "so you can just go through your day, and we will seek out meaningful ways for you to engage with people. And's that it."

Right now, the idea is greater than the actual implementation in web form, but the user will see that FellowUp has elements of greatness. The startup is best experienced as a systematic, daily approach to personal relationship management, which means some of the appeal can only be seen through repeated usage. This usage will also teach FellowUp's algorithms which people and updates are of most importance to each user.

"It's really like hiring a personal assistant," Cohen says. "Every day that personal assistant learns how you like to behave and becomes super valuable with time."

The just-released companion iPhone application [iTunes link] drives home the utility of FellowUp and gives users the ability to quickly reference notes, reminders and contacts, or add new ones, on the fly.

Cohen believes that FellowUp can coexist in the crowded social-intelligence-meets-personal-CRM arena -- think Gist, Rapportive, Xobni or even LinkedIn -- because the startup's algorithms are capable of filtering out the most important insights around contacts.

Four week-old FellowUp has roughly 1,000 users who are a mix of students, venture capitalists and sales professionals. The latter group, says Cohen, finds FellowUp to be a perfect personal version of Salesforce and uses it to save the really important contact details they want to keep for themselves should they ever leave their current companies.

Mashable readers can get access to the private beta service by signing up here.

Image courtesy of iStockphoto, twohumans


Series Supported by Microsoft BizSpark


The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark, a startup program that gives you three-year access to the latest Microsoft development tools, as well as connecting you to a nationwide network of investors and incubators. There are no upfront costs, so if your business is privately owned, less than three years old, and generates less than U.S.$1 million in annual revenue, you can sign up today.

Apple sues Amazon.com over APP STORE trademark (Reuters)

Posted: 21 Mar 2011 06:49 PM PDT

SAN FRANCISCO (Reuters) – Apple Inc has sued Amazon.com Inc in a bid to stop the online retailer from improperly using Apple's APP STORE trademark, according to a court filing.

The lawsuit, filed in a California federal court late last week, said Amazon has improperly used Apple's APP STORE mark to solicit software developers throughout the United States.

Apple has applied to register the APP STORE trademark in the United States, a bid which Microsoft opposes. The matter is currently before a trademark trial and appeals board, according to the lawsuit.

"We've asked Amazon not to copy the APP STORE name because it will confuse and mislead customers," Apple spokeswoman Kristin Huguet said on Monday.

Amazon.com did not immediately respond to a request for comment.

According to the lawsuit, Amazon is unlawfully using the APP STORE trademark in connection with what Amazon calls the "Amazon Appstore Developer Portal," along with other instances like ads for a version of Angry Birds, the popular mobile game.

Apple has also asserted a claim of unfair competition, and is seeking to enjoin Amazon from using the APP STORE mark.

The case in U.S. District Court, Northern District of California is Apple Inc v. Amazon.com Inc, 11-1327.

(Reporting by Dan Levine; Editing by Bernard Orr)

EBay CEO's compensation rose 22 percent in 2010 (AP)

Posted: 21 Mar 2011 06:48 PM PDT

SAN FRANCISCO – The 2010 pay package online marketplace operator eBay Inc.'s CEO rose 22 percent to $12.4 million from the previous year, according to an Associated Press analysis of a Monday regulatory filing.

John Donahoe, 50, has led eBay since March 2008, when Meg Whitman retired. Prior to that, he served as the company's head of marketplaces.

According to a proxy statement eBay filed with the Securities and Exchange Commission, Donahoe received a salary of $920,673 in 2010, down 1 percent from the year before. He received a bonus of $736,538, up 68 percent year over year, and a performance incentive of $1.2 million, down 30 percent from $1.7 million in 2009.

The CEO was awarded stock valued at $5.6 million and options worth $3.7 million when they were granted — a 26 percent and 50 percent increase, respectively.

Donahoe's other compensation rose 42 percent to $245,655. Most of this was for personal use of a company plane.

His 2009 compensation package was valued at $10.1 million.

The AP's calculation of executive pay includes salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards as of the day they were granted. The calculations exclude changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the SEC.

San Jose-based eBay is best known for its namesake website, where users can buy and sell anything from alphabet blocks to zippers through its auction and fixed-price "Buy it Now" formats. The company also owns online payment business PayPal, which lets people transfer money online and has grown swiftly even as eBay's marketplace has struggled to bring in and keep buyers and sellers.

In 2010, eBay continued to work on improving eBay.com — a process it is still working on — by doing things like cutting upfront listing fees it charges sellers, improving its search engine, revamping its home page and ramping up its focus on fashion with the launch of a clothing and accessory site, fashion.eBay.com. The year ended with a healthy holiday quarter, as enthusiastic shoppers helped spur growth in the marketplace and PayPal businesses.

During 2010, eBay earned $1.80 billion, or $1.36 per share, compared with $2.39 billion, or $1.83 per share, in 2009. Revenue climbed 5 percent to $9.16 billion. EBay had 94.5 million active users at the end of the year — up 5 percent from the 2009 fourth quarter.

EBay's stock rose 18 percent last year, ending December at $27.83 a share. On Monday, it rose 11 cents to close at $30.58.

Verizon Wireless CEO says no interest in Sprint deal (Reuters)

Posted: 21 Mar 2011 08:07 PM PDT

ORLANDO, Florida (Reuters) – The chief executive of Verizon Wireless said he has no interest in buying Sprint Nextel Corp (S.N) even as the company stands to lose its top position in the U.S. wireless market because of a merger between AT&T Inc (T.N) and T-Mobile USA.

Verizon Wireless CEO Daniel Mead also said he would not oppose AT&T's plans to buy Deutsche Telekom's (DTEGn.DE) T-Mobile USA for $39 billion.

The CEO said the company did not want to be distracted from its goal of being the most profitable U.S. wireless operator. Verizon Wireless is a joint venture of Verizon Communications (VZ.N) and Vodafone Group (VOD.L).

"We're not interested in Sprint. We don't need them," said Mead, speaking to Reuters ahead of the CTIA Wireless Conference.

AT&T announced plans on Sunday to buy T-Mobile USA in a massive deal to create a new U.S. mobile market leader.

Mead said U.S. regulators would likely approve the AT&T/T-Mobile deal if the companies agreed to certain conditions. AT&T is expected to have to sell some assets in order to get regulators to approve the deal.

"Anything can go through if you make enough concessions," Mead said.

(Reporting by Sinead Carew, writing by Lewis Krauskopf in New York; Editing by Vinu Pilakkott)

First Look: Nokia Astound Smartphone on T-Mobile (PC World)

Posted: 21 Mar 2011 05:25 PM PDT

Given yesterday's news of AT&T purchase of T-Mobile, it is slightly ironic that the very first phone we've seen up close at CTIA this year is a T-Mobile phone. And even more ironic, the T-Mobile Astound uses the Symbian platform, which Nokia made pretty clear it had washed its hands of last month. But don't dismiss the Astound immediately; for its price, it has some pretty solid specs.

The Astound will cost $80 with a two-year contract from T-Mobile. Nokia told us that the phone is targeted at first-time smartphone users who don't want to pay a lot of money for a data plan. And T-Mobile is following through on this promise; Astound owners can pay as low as $10 a month for this type of plan.

If the Astound looks familiar, it is because it is the T-Mobile branded version of the Nokia C7, an unlocked global Symbian phone. The two are very similar, but the C7 has an all-black color scheme and it does not have the most recent version of Symbian.

The Astound sports an 8-megapixel camera with HD video capture, a 3.5-inch AMOLED display, and 8GB of memory. Note: Out of all the phones I review, I still hold that Nokia phones have some of the best cameras. I didn't really get a chance to play with the Astound's snapper other than a few pictures in a dark bar, but what I shot looked pretty decent.

Slim, Silver

The phone itself is quite attractive with a white and silver color scheme and slim profile. I didn't like how buried the microSD card slot was on this phone; you have to remove the back as well as the battery to get to it. The SIM card slot is nicely labeled however (see picture).

While the Astound might be attractive on the outside, Symbian is still, well, Symbian. Although it is a powerful and full-featured platform, its whole aesthetic feels dated and static compared to Android 2.3, Apple's iOS, and even the latest version of RIM's BlackBerry OS. Thankfully, this is the most recent version of Symbian S^3 so you get a portrait QWERTY keyboard and an browser improved from the previous versions.

Nokia officials had no comment on its relationship with Microsoft, but they did hint that there will be more Symbian phones to come. The Astound will be available April 6 online as well as at T-Mobile stores.

More about CTIA's Spring show

NPD: Consumers flock to supersized smartphones (Digital Trends)

Posted: 21 Mar 2011 04:46 PM PDT

Market research company NPD is reporting that when it comes to consumer smartphone preference, the bigger the better. Tiny, sliver-sized phones have become a thing of the past and people are now willing to sacrifice space in favor of richer, larger, fully-featured media experiences.

According to NPD's claims, the demand for phones with displays ranging between 3.5 and 3.9 inches have leveled out, but consumer interest in those with 4-inch screens or larger is on the rise and besting its smaller competitors. In its press release, NPD points to devices like the Samsung Galaxy S, HTC Evo 4G, and Motorola Droid X as just a sampling of the smartphones that were able to grab 24-percent market share. Analysis also shows that "the market share of smartphones with screens smaller than 3.4 inches declined from 63 percent in Q4 2009 to just 36 percent of the smartphone market in Q4 2010."

NPD also reported that the bestselling large display devices were the Evo 4G, the Droid X, the Fascinate, the Captivate, and the Vibrant. And apparently, while men are more likely to spring for the larger screens (their pants have much larger pockets, we̢۪d like to point out), woman are taking up with the trend as well. Over the last year, women went from being responsible for 30 to 40 percent of supersized smartphone sales.

With app development becoming increasingly innovative, data storage expanding, and resolution improvements on the rise, the devices are obviously so much more than phones – so it makes sense to slap a 4-inch display on them. Get much larger than that, though, and you're looking at a tablet. Maybe we're heading for a future in which consumers forsake smartphones altogether in favor of 7-inch tablets! Steve Jobs would be kicking himself.

Valextra Macbook Air Portfolio in fine Italian leather (Digital Trends)

Posted: 21 Mar 2011 07:35 PM PDT

It's not enough to have all the latest Apple products for your daily convenience, but you must cover them all in beautiful things, in case you were unclear on that fact. The variety of coverings is overwhelming, but by far some of the most beautiful we have seen come from Italian brand Valextra. The fine designers of the brand have created a sleek and luxurious leather case for the new MacBook Air and it's a beauty. Made in dark brown leather, the Macbook Air Portfolio ($1,690) perfectly holds your slim laptop and has two pockets, one zippered, on the opposite side for accessories and essentials. A style that is sophisticated enough to be a timeless accessory that lasts beyond the lifespan of your Macbook Air. A single leather craftsman makes each portfolio, so detail and quality are of the utmost priority.

Code For America Calls For Hackers With Hearts of Gold for 2012 Fellowships (Mashable)

Posted: 21 Mar 2011 02:57 PM PDT

Code for America seeking devs for its 2012 Fellowship Program, a year of public service that puts coders to work for communities.

The fellowship gives developers, researchers, entrepreneurs and designers a chance to build customized web and mobile apps for communities and governments. Their work is used to solve pervasive public problems and connect citizens to governments. Each app built will be open sourced, as well.

The 2012 fellowship will be the second annual program of its kind. This year, recent graduates are encouraged to file early decision applications, which would allow for better planning of internships, employment or continued education. Those applicants would be notified of CfA's decision by May 1, 2011.

Early decision applications are due April 15, 2011, and all other applications are due August 1, 2011. Would-be fellows can apply now on Code for America's website.

Last year, the fellowship program had room for 20 fellows, and more than 350 applications were received. Given the stature of government applicants for the second cycle, competition is expected to be even more fierce this year.

Fellows in the year-long program will receive a living-wage stipend, travel expenses and healthcare. They'll also get leadership training, networking opportunities and future career support in the form of guaranteed interviews at top web companies.

New Merrill Lynch apps the latest in mobile investment banking (Appolicious)

Posted: 21 Mar 2011 05:00 PM PDT

AT&T seen selling assets to get nod for mega deal (Reuters)

Posted: 21 Mar 2011 04:39 PM PDT

WASHINGTON (Reuters) – AT&T Inc will likely be forced to sell major assets and pledge to expand service to poor areas to get approval from the U.S. government for its $39 billion deal to buy Deutsche Telekom AG's T-Mobile USA.

Antitrust experts say the merger, which will create the largest U.S. wireless service provider, faces a tough review by competition and communications regulators that could take as long as 18 months, but that it will ultimately be approved.

The deal gives AT&T -- the No. 2 U.S. mobile service often criticized for dropped calls and slow connection speeds -- more capacity to meet ever-growing demands for videos and data from devices such as Apple's iPhone.

It will have about 130 million customers and hold roughly 43 percent of the U.S. wireless market, a concentration that sparks major regulatory concerns. Both the Federal Communications Commission and the Justice Department could force the combined entity to give up precious assets, including chunks of U.S. airwaves, known as spectrum, experts said.

The FCC could go further than the DOJ, asking for AT&T to expand wireless service to poor and rural areas, and for service promises including more packages with data roaming.

"I would expect that DOJ would require divestitures of spectrum and possibly other assets ... in a significant number of local markets," said Beau Buffier, an antitrust expert with Shearman & Sterling LLP. He added, however, that that won't materially affect the economics of the deal for the parties.

Sen. Amy Klobuchar, a Minnesota Democrat who has criticized wireless carriers for failing to serve rural areas, on Monday urged the government to "take a close, hard look" at the deal.

"Although this deal may spark innovation in the wireless industry, I remain concerned that increased concentration will, at the same time, lead to fewer choices, higher prices and reduced service for wireless consumers," she wrote to FCC Chairman Julius Genachowski and Christine Varney, the head of the Justice Department's antitrust division.

Representative Henry Waxman, ranking member of the House Commerce committee which oversees telecommunications issues, also expressed concern about the deal.

Both the Senate and House of Representatives Judiciary Committees are expected to hold hearings to discuss it.

MARKET REVIEW

Despite these concerns, regulatory experts interviewed by Reuters said they expected the deal to go forward. AT&T has agreed to pay an unusually high breakup fee of $3 billion and to give T-Mobile wireless airwaves if regulators reject it.

AT&T shares closed up 1.14 percent and Deutsche Telekom closed up 11.26 percent. The German telecoms operator said it would focus on organic growth and return cash to shareholders after the deal.

In general, mergers in industries with expensive infrastructure can be more difficult to approve since it's unlikely that new competitors would easily emerge.

"This is a business where there is a lot of infrastructure," said Evan Stewart, an antitrust expert with Zuckerman Spaeder LLP. "I'd be very very surprised if the DOJ antitrust division didn't made this very, very difficult."

Past antitrust assessments in this and similar industries have analyzed potential deals on a market-by-market basis, with divestitures expected in any geographical area that would be left with just two national carriers.

Asset sales may also be required in areas left with three national carriers, said an antitrust expert with extensive experience with telecommunications mergers.

"Any city-by-city issues can probably be fixed by divestitures," said Bernard Nigro, an antitrust expert with the law firm Fried Frank. He predicted that the deal could be approved within six months if the parties were willing to negotiate with the FCC and Justice Department.

"But if the issues are more complex it could take a year," Nigro said.

A lengthy review period and the expensive transaction was enough for Moody's Investors Service and Fitch Ratings to place AT&T's debt under review for possible downgrade.

AT&T has said that it would commit to expanding its high-speed 4G LTE network to 95 percent of the United States population, including rural communities and small towns.

A former FCC official said the agency would try to approve the deal, imposing several concessions on the new entity.

At the very least, he said, the FCC was likely to mandate a divestiture of spectrum, the invisible infrastructure needed for wireless services, in markets where the two merging parties control a significant portion of the airwaves.

The FCC could also demand a commitment to open Internet traffic rules and require a joint AT&T/T-Mobile to offer greater data roaming and wholesale access.

(Reporting by Diane Bartz and Jasmin Melvin in Washington, and Sinead Carew in New York; Editing by Bernard Orr)

Apple called on to pull 'gay cure' app from iTunes (AFP)

Posted: 21 Mar 2011 06:11 PM PDT

SAN FRANCISCO (AFP) – Apple was under pressure to yank a so-called "gay cure" application from its iTunes shop for software for iPhone, iPad, and iPod devices.

More than 110,000 people had electronically signed an online petition at a change.org website calling for Apple to remove the Exodus International application from iTunes.

Exodus, a Florida-based Christian group that advocates freeing oneself from homosexuality through religion, has publicly condemned the petition as an assault on free speech and an improper spin on the application's purpose.

The free software program links users to Exodus information including videos, podcasts, a Twitter feed, and the group's page at social networking service Facebook.

Exodus boasted at its website that Apple ranked its program as containing "no objectionable material."

"This application is designed to be a useful resource for men, women, parents, students, and ministry leaders," Exodus said.

"We hope to reach a broader demographic and readily provide information that is crucial for many seeking hope and encouragement," the message continued.

The online petition picking up momentum on Monday expressed shock at iTunes approving an app from "a notoriously anti-gay organization" that used "scare tactics, misinformation, stereotypes and distortions."

Exodus advocates "reparative therapy" to change the sexual orientation of homosexuals.

"No objectionable content?" a message at the petition page at change.org asked rhetorically. "We beg to differ. Exodus's message is hateful and bigoted."

Dispatch Bag from Triple Aught Design packs versatility and pockets (Digital Trends)

Posted: 21 Mar 2011 06:30 PM PDT

Not all messenger bags are created the same. If all you need is something to tote your basic belongings and a laptop to and from work, the Dispatch Bag ($195) from Triple Aught Design is not for you. If you do, however, need features like a "flashlight cave," a hidden pocket for "defensive items," and as many pockets as you can fill, this monster of a bag should fit the bill. Designed to be just as useful in an urban environment as an outdoor or travel setting, the Dispatch Bag features extra-rugged construction, modular design, and 800 cubic inches of storage space. The bag hosts an impressive 13 pockets and seven accessory slots, as well as a padded laptop compartment. The PALS webbing on the outside of the bag makes it easy to add MOLLE-compatible pouches to your bag, and an internal Admin Sleeve is removable for when you need to take your essentials, iPad, and a notebook to a meeting. This versatile bag is the perfect choice to eliminate all of your other bags and improve your organization skills.

Microsoft sues Barnes & Noble over Nook reader (Reuters)

Posted: 21 Mar 2011 04:05 PM PDT

SEATTLE (Reuters) – Microsoft Corp filed lawsuits for patent infringement on Monday against bookseller Barnes & Noble Inc over its Nook electronic book reader, widening the software company's legal assault on devices running on Google Inc's Android system.

Microsoft, which has already sued Motorola Mobility Holdings Inc over its Android phone handsets, said Barnes & Noble's e-readers infringe several Microsoft patents with software used to tab between screens, surf the Web and interact with e-books.

The lawsuit is just one of many in the emerging and hotly disputed mobile computing sector, with software and hardware makers scrapping over who owns the original technologies deployed in smartphones and tablet devices.

Finnish phone maker Nokia sued iPhone maker Apple Inc two years ago, and Apple subsequently sued handset maker HTC Corp. Software maker Oracle Corp has sued Google over Android software.

The growing e-book market has so far not been a target for lawsuits. Just over a year ago, Microsoft signed a patent agreement with Amazon.com over its market-leading Kindle e-reader, which runs on a mix of open source and Amazon's proprietary software. Microsoft received money from Amazon under that deal, but did not say how much.

In lawsuits filed in federal court in Seattle and with the International Trade Commission on Monday, Microsoft claimed the Nook line of e-readers infringe five Microsoft patents, concerning the way they display retrieved images, show the status of downloaded material on a small screen, edit electronic documents and render annotations.

The lawsuit also charged the makers of the devices, Foxconn International Holdings Ltd and Inventec Corp, with patent infringement.

"The Android platform infringes a number of Microsoft's patents, and companies manufacturing and shipping Android devices must respect our intellectual property rights," Horacio Gutierrez, deputy general counsel of Microsoft's intellectual property and licensing, said in a statement.

"We have tried for over a year to reach licensing agreements with Barnes & Noble, Foxconn and Inventec. Their refusals to take licenses leave us no choice but to bring legal action to defend our innovations."

Barnes and Noble said its policy is not to comment on litigation. Foxconn and Inventec could not immediately be reached for comment.

The case is 2:11-cv-00485 Microsoft Corporation v. Barnes & Noble, Inc. et al, in the United States District Court for the Western District of Washington (Seattle).

(Reporting by Bill Rigby; editing by Andre Grenon, Gary Hill)

10 Ways Linux Is Making Life Better (PC World)

Posted: 21 Mar 2011 03:14 PM PDT

Linux has long played a leading role in the world of servers, due in large part to its stability, security and lower total cost of ownership (TCO). What many don't realize, however, is just how ubiquitous it's becoming in other parts of life as well.

Not only are distributions like Ubuntu helping Linux make great strides on the desktop, but the open source operating system is now quietly powering myriad innovations that many of us take for granted.

Where can Linux be found today? Let's count just a few of the many places it's making life better.

1. Android

First and foremost, of course, is Android, Google's Linux-based mobile operating system. Well-poised to relegate Apple's successful iPhone to the realm of niche devices, Android is giving the popular iPad a run for its money as well. By putting Linux in the hands of countless mobile consumers around the globe, Android is arguably Linux's greatest mainstream success to date.

Then, too, there's also Chrome OS, which will reportedly figure prominently in a low-cost notebook PC coming from Asus this summer, among other devices.

2. WebOS

Packed with perhaps as much potential as Android is HP's recent decision to use WebOS on pretty much all its desktops and laptops, not to mention tablets and phones as well. WebOS is, of course, a Linux-based operating system originally developed by Palm. With HP's new strategy, Linux will land on the desktops, laps and hands of countless more consumers as well, giving it another huge boost toward mainstream ubiquity.

3. Niche PCs

Even aside from all the many consumer PCs already running Linux, we're also starting to see the operating system powering niche PCs as well. Take the recently debuted KiWi PC, for instance. Targeting senior citizens, the Ubuntu-loaded machine uses Linux to make computing stress-free for senior citizens. "KiWi PC is powered by an Ubuntu operating system, which generates visible and easy navigation from startup to shutdown," as the device's Web site explains. "The Ubuntu operating system creates a user-friendly desktop, allowing senior citizens to have immediate access to their email and the Internet hassle-free." So much for the myth that Linux is harder to use.

4. Set-top boxes

Though it's not typically visible to the user, Linux is often at the heart of the ubiquitous set-top box that so many of us use for streaming content, for example. The Ubuntu-powered Neuros Link is just one example.

5. ATMs

Windows really isn't secure enough for banking, as many experts have been warning for years, so it's no great surprise to see Linux increasingly used in automated teller machines instead. A project at Brazilian bank Banrisul, for example, has received considerable fanfare.

6. In-Vehicle PCs

Another recently announced Linux innovation is a series of PCs designed for agriculture and construction vehicles. Built for rugged conditions and harsh environments, the Grayhill devices offer a choice of Linux or Windows CE.

Linux has also popped up previously in vehicles including Mavizen's award-winning TTX02 electric motorcycle. Then, too, there's the fact that car companies including both Toyota and Peugeot are using Linux as well.

7. Wikipedia, Google and More

If you've ever used Wikipedia, then you've benefited from Linux, at least indirectly. In fact, Wikipedia is now using Ubuntu after years on Red Hat and Fedora. Wondering about scalability? At Wikipedia Ubuntu now reportedly powers some 10 billion page views a month.

While we're on the subject of corporate applications, Google, Amazon, Cisco, IBM, the New York Stock Exchange and Virgin America are all renowned users of Linux, too.

8. One Laptop Per Child

Aiming to create devices that can be distributed to millions of disadvantaged children around the world, the One Laptop Per Child project has built its XO laptops to take advantage of the many freedoms of Linux.

9. Government

In the United States alone, the U.S. Postal Service, the U.S. Department of Defense and the FAA are all among the high-profile governmental users of Linux. Then there are all the many governments around the world that have made similar decisions, including France, Spain, Germany and Switzerland.

10. IBM's Watson

Last but not least, the Watson supercomputer that wowed the world with its performance on Jeopardy recently runs on none other than Linux.

Those, of course, are just a small sampling of all the many places Linux is to be found. Still, taken together, they make a pretty convincing argument for the power of the open source operating system. No wonder more and more businesses are seeing past the myths and switching to Linux themselves.

Follow Katherine Noyes on Twitter: @Noyesk .

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