Nokia Had Horrible Quarter

Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.

Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively. While the overall sales of mobile phones and smartphones are down, along with average selling prices.

Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

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Defense Dept. IT Is ‘Stone Age’

U.S. Marine Corps Gen. James “Hoss” Cartwright, vice chairman of the Joint Chiefs of Staff, issued a stinging critique of the Defense Department’s IT systems and said he sees much room for improvement.

Cartwright, who was speaking at the FOSE information technology conference in Washington,DC, said the DOD is sending increasing amounts of data, such as video, to soldiers on the battlefield, and it’s beginning to build an architecture “that starts to take us where we need to be.” But Cartwright quickly tempered that.

“Quite frankly, my feeling is — at least being a never-satisfied person — the department is pretty much in the Stone Age as far as IT is concerned,” Cartwright said.

Cartwright cited problems with proprietary systems that aren’t connected to anything else and are unable to quickly adapt to changing needs. “We have huge numbers of data links that move data between proprietary platforms — one point to another point,” he said.

The most striking example of an IT failure came during the second Gulf War, where the Marines and the Army were dispatched in southern Iraq.

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Mobile Networks Near Capacity

Mobile networks in North America are using 80 percent of capacity, with 36 percent of base stations facing capacity constraints, according to a survey by investment firm Credit Suisse.

Networks in other regions also are more than 50 percent utilized, with the global average at 65 percent, Credit Suisse said after surveying carriers around the world. That level of use matches the average “threshold” rate that would trigger the service providers to start buying more network equipment, the report said. Looking ahead, on average the carriers expected their utilization rate to grow to 70 percent within 12 months.

Credit Suisse used the results to predict new sales by makers of cellular equipment, such as Ericsson, Alcatel-Lucent, Nokia Siemens Networks and Huawei Technologies. But at a certain level, heavy use of a base station can also affect the mobile experience of individual subscribers. The survey found that 23 percent of base stations worldwide had capacity constraints (defined as a utilization rate over 80 percent during busy hours), while 36 percent in North America were under that kind of pressure.

The North American networks were 72 percent utilized two years ago. The region’s carriers expect the rate to ease back down to that point within two years. North American service providers are likely to buy more equipment soon, because having their networks 74 percent filled is the threshold rate in that region, the survey said.

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Data Center Emissions Concerns Citizens

Some residents of Quincy, Washington, the location of massive data centers operated by Microsoft, Yahoo and others, are growing concerned about pollution from backup diesel generators at the data centers, and on Wednesday they’ll have the chance to discuss the issue.

The Washington State Department of Ecology is conducting a public meeting on Wednesday evening in Quincy for residents to voice their concerns over on an application from Dell for permission to use 28 generators powered by diesel engines.

Quincy, a town of around 6,000 people, will have 141 back-up generators once those belonging to Dell, and others that have been permitted or are in line for permission, are put in place. While the generators are designed to be used only in the rare case of an electricity outage, the data center operators turn them on regularly for testing.

On average, the companies are permitted to turn on each generator for 103 hours per year. If they use that maximum running time, data center generators in Quincy would run for the equivalent of 40 hours per day on average.

The Department of Ecology says diesel emissions, when breathed in, have been known to create or worsen a variety of health problems, including heart disease, asthma and
lung cancer.

Some residents, including former mayor Patty Martin, wonder about the health impact of the diesel emissions on the community. She thinks the generators should use the same types of devices to reduce emissions that are required by other Washington cities such as Olympia and Moses Lake.

Such devices aren’t necessary in Quincy, said Karen Wood, section supervisor for air quality in Eastern Washington for the Department of Ecology. Because Olympia is a much bigger city it already has high diesel emissions from other sources, so a new data center there was required to reduce its emissions, she said.

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HP Announces TouchPad 4G Deal

Hewlett-Packard announced it would release a 4G TouchPad tablet with upgraded hardware that will be available on AT&T’s wireless network.

The tablet will have a 1.5GHz processor, which is a change from the dual-core 1.2GHz Qualcomm Snapdragon processor available with older Wi-Fi-only TouchPad models that went on sale just two weeks ago.

Last August Qualcomm said that by the start of this year it would ship the dual-core Snapdragon QSD8672 chip that could run at clock speeds of up to 1.5GHz.

The TouchPad will have 32GB of internal storage, GPS and built-in AT&T wireless mobile broadband capabilities, HP said in a statement. Specific pricing and availability will be announced at a later date.

Wireless connectivity will be available through AT&T’s DataConnect mobile data plans for tablets or Wi-Fi hotspots around the country, HP said.

TouchPad users have expressed concerns about the device’s performance, especially the long load times for some applications. HP attributes the performance issue to software problems and said it will deliver an over-the-air software update that should resolve some performance problems.

Some buyers also were concerned about the TouchPad’s weight of about 1.6 pounds (740 grams), which is heavier than Apple’s iPad at 1.32 pounds. The TouchPad includes a 9.7-inch screen and comes with WebOS 3.0, which is also used in smartphones.

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nVidia’s Tegra 3 Coming To Smartphones

It appears as though Nvidia’s next generation quad-core Kal-El (Tegra 3) quad core SoC will also show up on smartphones too. Originally, it was believed that the SoC would only support the ever growing tablet space.

Inside sources have confirmed that projects are already underway and that Tegra 3 aka Kal-El smartphones will be make a debut as well.

Nvidia had hoped to get a lot of play out of Tegra 2, unfortunately the chip was not as embraced as Nvidia had wanted. Even though the Tegra 2 SoC did manage to get a few design wins.

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“TDL-4″ Botnet Is Practically Indestructible

A new and improved botnet that has infected more than four million computers is “practically indestructible,” software security experts say.

“TDL-4,” the name for both the bot Trojan that infects PCs and the ensuing collection of compromised computers, is “the most sophisticated threat today,” said Kaspersky Labs researcher Sergey Golovanov in a detailed analysis Monday.

“[TDL-4] is practically indestructible,” Golovanov said and others agree.

“I wouldn’t say it’s perfectly indestructible, but it is pretty much indestructible,” said Joe Stewart, director of malware research at Dell SecureWorks and an internationally-known botnet expert, in an interview today. “It does a very good job of maintaining itself.”

Golovanov and Stewart based their assessments on a variety of TDL-4′s traits, all which make it an extremely tough character to detect, delete, suppress or eradicate.

Because TDL-4 installs its rootkit on the Master Boot Record (MBR), it is invisible to both the operating system and more, importantly, security software designed to sniff out malicious code.

Further,what makes the botnet indestructible is the combination of its advanced encryption and the use of a public peer-to-peer (P2P) network for the instructions issued to the malware by command-and-control (C&C) servers.

“The way peer-to-peer is used for TDL-4 will make it extremely hard to take down this botnet,” said Roel Schouwenberg, senior malware researcher at Kaspersky, ”The TDL guys are doing their utmost not to become the next gang to lose their botnet.”

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Skype Debuts Video Calls For Android

Skype, which is being gobbled up by Microsoft for $8.5 billion, debuted a new service on Thursday allowing users of Android phones to make free video calls to Skype contacts, including those on Apple iPhones.

The company whose name has become synonymous with Internet calling said its updated Android app would initially support video calling on selected HTC and Sony Ericsson Phones, with more devices to follow shortly.

“We are committed to bringing Skype video calling to as many platforms as possible,” Skype’s product and marketing chief Neil Stevens said in a statement.

The move will help makers of phones based on Google’s Android software compete with Apple’s FaceTime video-calling service launched last year for the iPhone and now available on its iPad 2 tablet and Mac computers.

Video calling could also help new Skype owner Microsoft promote its Windows Phone smartphone platform, which it is merging with Nokia’s in an effort to become competitive with Android and Apple.

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Microsoft Patents Snooping Technology

A newly patented Microsoft technology named Legal Intercept that would allow the company to covertly intercept, monitor and record Skype calls is raising privacy concerns.

Microsoft’s patent application for Legal Intercept was filed in 2009, well before the company’s $8.5 billion purchase of Skype this May. The patent was granted last week.

From Microsoft’s description of the technology in its patent application, Legal Intercept appears similar to tools used by telecommunication companies and equipment makers to comply with government wiretap and surveillance requests.

According to Microsoft, Legal Intercept is designed to silently record communications on VoIP networks such as Skype.

According to Microsoft, Legal Intercept fixes the gaps in current monitoring tools that are designed mainly for intercepting Plain Old Telephone Service (POTS). “With new Voice over Internet Protocol (VoIP) and other communication technology, the POTS model for recording communications does not work,” Microsoft noted in the patent application.

Michael Froomkin, a professor of law at the University Of Miami School Of Law, said that from the patent description it sounds as if the technology would allow Microsoft to do is make Skype CALEA capable.

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E-Readers More Popular Than Tablets

More people are using e-readers than tablets, according to a Pew Research Institute study.

The Pew survey of 2,277 adults that finished on May 22 found that 12% of Americans owned an e-reader device in May compared to 8% who owned a tablet like Apple’s iPad.

Also, ownership grew faster for e-readers like the Nook or Kindle than ownership of tablets over the six months between November 2010 and May, the Pew survey found.

The telephone survey found that Hispanic Americans are the fastest-growing ownership group of both e-reader and tablet devices.

E-reader ownership increased from 6% of American adults in November 2010 to 12% in May, Pew said.

Tablet ownership grew from 5% to 8% over the same period. Tablet ownership had been increasing “relatively quickly” through Nov. 2010, Pew said, but growth was virtually flat from January to May, growing from only from 7% to 8%.

Pew also found that 3% of U.S. adults own both kinds of devices, while 9% own an e-reader but not a tablet, and 5% own a tablet but not an e-reader.

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