April 2011

HP Joins Call For Incentive Auctions

Hewlett-Packard says it favors the use of incentive auctions to free up more spectrum for mobile broadband technologies such as its new tablet the TouchPad.

"We have to continue to open the spigot" of spectrum, said Larry Irving, HP's vice president of global government affairs. HP has a vested interest in mobile broadband as a top maker of personal computers and laptops and wireless technologies such as its soon-to-be released TouchPad and its new smart phones the Pre 3 and Veer. "If you don't have incentive auctions, you won't get people to step up," Irving said, referring to current spectrum holders such as broadcasters. During the Clinton administration, Irving headed the Commerce Department's National Telecommunication and Information Administration, which is in charge of maintaining the nation's spectrum inventory. He noted that then the agency released between 200 and 300 megahertz of spectrum and that it's important regulators continue to free up as much spectrum as possible. Irving did not endorse any of the particular legislative proposals to implement incentive auctions, saying only that his firm wants to "see a swift resolution" of the issue.

EU rule on web ‘cookies’ bears £500,000 fine

New European rules governing data protection and the use of Internet tracking “cookies” will be backed by fines of up to £500,000 and tough new auditing and investigatory powers for the Information Commissioner’s Office, the government has confirmed.

However, companies racing to comply with the new rules before the implementation deadline of May 25 have been granted a short-term amnesty because of the complexities involved. The European Union’s telecoms framework includes a new e-privacy directive that requires website owners to obtain consent from visitors to install cookies, which are small pieces of software which enable the website to “remember” users’ preferences and can also be used for targeting advertising based on browsing behavior.

China Mobile Users Pass 600 Million, Fueled by Rural Areas

China Mobile became the world’s first phone company to exceed 600 million subscribers as it signed up more rural customers in the first quarter. China Mobile added 16.8 million subscribers in the first quarter, an almost 3 percent increase from the 584 million customers at the end of December. With mobile devices now accounting for 75 percent of China’s 1.2 billion phone users, the Beijing-based carrier is getting most of its new additions from customers in the countryside who spend less on their monthly phone bills. As a result average revenue per user, or ARPU, for the three months ended March 31 dropped to 67 yuan ($10.3), from 76 yuan at the end of December, the company said

China clears sale of Motorola unit to NSN

Nokia Siemens Networks is set to complete its acquisition of Motorola’s network infrastructure business next week after China’s antitrust regulator approved the deal.

Zhang Zhiqiang, head of greater China at NSN, said that the Chinese ministry of commerce had given the deal its “unconditional approval”. The ministry could not be reached for comment. The long-delayed deal will fuel competition among the global leaders of the telecoms network infrastructure industry by bringing NSN closer to Huawei, which in turn is breathing down the neck of Ericsson, the world’s largest network gear vendor. The delay in approval and the impact on the transaction highlights the growing role Chinese regulators are playing in global deals, even when the deal is not focused on the domestic Chinese market.

FCC's Genachowski touts spectrum auctions, skirts merger questions

Federal Communications Commission Chairman Julius Genachowski was eager to talk about spectrum issues in a question-and-answer session before the Economic Club of Washington, but evaded questions about a proposed merger between AT&T and T-Mobile.

Chairman Genachowski touched briefly on several other topics on the FCC’s radar, such as mobile payments. When asked whether there should be a tax on Internet purchases, he said anything that discourages investment and private investment should be looked at extremely carefully. He said the FCC did not have open proceedings on mobile payments, but said that the government must “get it right” or the United States will fall behind other countries.

Broadband Accessibility, Affordability, and Adoption

Speaking at the Internet2 Spring Member Meeting, Federal Communications Commission member Mignon Clyburn focused on the interrelation between accessibility, affordability, and adoption.

"[I]f we create incentives for more service providers to deploy networks in underserved areas," she said, "this should lead to competition, which should make services more affordable. More affordable services, in turn, encourage more consumers to adopt advanced communications services such as broadband." She warned that without access to affordable IP-based broadband service, the most challenged communities will fail to enjoy the significant opportunities that broadband service access has to offer. Commissioner Clyburn views Internet2 as an essential organization to efforts that consistently further the goals set forth in the National Broadband Plan.

How Apple tracks your location without consent, and why it matters

If you haven't yet enabled encrypted backups for your iPhone or iPad, now's definitely the time to start. Two security researchers have discovered a simple way to map out where you've been almost anywhere in the world -- without any hacking involved.

The information comes from a location cache file found within your iPhone's backups on your Mac or PC, bringing out serious privacy concerns and opening the door for a jealous spouse, thief, or even a crafty trojan to take a detailed look at your whereabouts. And it's information that no one should have access to -- not even law enforcement, barring a court order. Researchers Alasdair Allan and Pete Warden revealed their findings ahead of their presentation at the Where 2.0 conference taking place in San Francisco. The two discovered that the iPhone or 3G iPad -- anything with 3G data access, so no iPod touch -- are logging location data to a file called consolidated.db with latitude and longitude coordinates and a timestamp. The data collection appears to be associated with the launch of iOS 4 last June, meaning that many users (us at Ars included) have nearly a year's worth of stalking data collected. In order to drive the point home, the two developed an open source application called iPhone Tracker that lets anyone with access to your computer see where you've been.

Apple’s Quarter By The Numbers: 18 Million iPhones, 4.69 Million iPads

The money-making machine that is the modern-day Apple continued its remarkable run during the first quarter of the year, with huge increases in profit and revenue compared to the prior year on the back of strong sales of the iPhone although iPad sales were a little lighter than some had expected. Apple’s revenue was $24.67 billion, up 83 percent compared to the previous year. iPhone revenue was the main catalyst for that huge jump. Profits came in at $5.99 billion or nearly double the quarterly profit Apple earned in the first quarter (its second fiscal quarter) during 2010.

  • iPhone: Apple sold 18.65 million units of its flagship mobile product, an increase of 113 percent compared to the same period last year.
  • iPad: Apple sold 4.69 million iPads in the quarter compared to last year when it sold 7.31 in the same quarter.
  • Mac: Sales of personal computers may be slowing across the PC industry, but Apple’s notebooks are still selling well, with a 53 percent increase in units sold compared to the prior year. Apple sold 2.75 million portable systems during the quarter.
  • iPod: It’s hard to believe that we’re getting close to the 10th year anniversary of the iPod, the product that sparked Apple’s renaissance. Sales of iPods were a bit light, down 17 percent compared to the prior year, as Apple continues to focus more on its iOS devices at the expense of the iPod.

LightSquared momentum continues with Cellular South deal

Despite the looming regulatory threat to its future long-term evolution (LTE) network deployment, LightSquared continues to sign up wholesale customers and partners, adding Cellular South to its growing roster.

As in its deal with Open Range Communications, LightSquared’s tie-up with Cellular South will involve both a network sharing and a wholesale component. Cellular South is already building its own LTE network in its southern US CDMA footprint focused primarily in Mississippi, targeting the end of 2011 for launch. So in addition to Cellular South buying wholesale access to LightSquared’s nationwide terrestrial network and satellite coverage, LightSquared will use Cellular South’s to augment its footprint in rural areas. Cellular South has 700 MHz spectrum, which would allow it to run its mobile broadband service in the same band as Verizon Wireless, though its new partnership with LightSquared may change that. LightSquared is deploying its 40,000 base station network in the satellite L-band, meaning any roaming capable device Cellular South has will need to target those frequencies. In LightSquared’s partnership with Open Range, though, LightSquared is supplying the spectrum while Open Range builds the network. Cellular South and LightSquared weren't clear on how the partnership would work, but Cellular South may now have the option of launching LTE in two bands or just LightSquared’s spectrum solely. The latter could save it a lot of hassle in procuring devices.

Does Place Really Matter? Broadband Availability, Race and Income

New research assessing broadband availability mapping data released by the National Telecommunications and Information Administration (NTIA). The study includes analyses of wireline and wireless access in high minority, low-income communities in three locations -- South Carolina, Chicago and Los Angeles. Among the findings:

  • while the availability of broadband in these communities is increasing, levels of adoption still remain relatively low;
  • the differences in broadband deployment can not be explained by race alone; and
  • despite the availability of mobile broadband in low-income, high minority areas, wireless coverage is still inconsistent within regions.