FCC Changes Phone Policy

The U.S. Federal Communications Commission has approved an overhaul to its Lifeline program, which subsidizes telephone service for economically disadvantaged people. The goals are to save money and allow the subsidy to be applied toward broadband service.

The FCC on Tuesday voted to make several changes to the program, including the launch of a $25 million pilot program to use Lifeline for broadband. The pilot program will solicit proposals from broadband providers starting this year, the FCC said. Under the changes approved by the commission, recipients of Lifeline subsidies could use the money for bundled services, including voice and broadband packages.

In addition, the FCC set a 2012 savings target of $200 million for the program, which costs about $2.1 billion a year, and the commission will create a national Lifeline database to prevent multiple telecom carriers from receiving program support for the same consumer. Critics of the program have complained that there’s significant abuse, with recipients getting subsidies for multiple phone and mobile lines.

The FCC will also create an eligible database, using government data, focused on verifying recipients’ initial and ongoing eligibility for the program. The database should reduce the potential for fraud and cut red tape for both recipients and carriers, the FCC said.

Commissioners set a goal of saving up to $2 billion over the next three years, but Commissioner Robert McDowell, a Republican, said he doubted the FCC can achieve that goal. McDowell questioned the “assumptions and models” FCC staff used to predict the savings.

Nevertheless, McDowell voted to approve the changes. The changes will help Lifeline better fulfill its purpose of helping low-income U.S. residents stay connected, he said.

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Intel Buys RealNetworks Patents

Intel on Thursday said it had agreed to acquire RealNetworks streaming media patents and video codecs in a move aimed at improving the multimedia experience delivered through devices based on its chips.

The chip maker has agreed to purchase video codec software and about 190 patents and 170 patent applications worldwide, for $120 million. RealNetworks is best known for its RealPlayer multimedia software, which offers multimedia streaming based on its own codec.

The purchase will help Intel offer “richer experiences” across a wide spectrum of devices, including through laptops and smartphones, the company said in a statement. A company spokeswoman declined further comment on specific plans for patents and software.

Intel has been beefing up its on-chip multimedia capabilities to handle more realistic graphics as the company develops newer generations of chips. The new laptop chips code-named Ivy Bridge due later this year for ultrabooks will be the first to have integrated support for Microsoft’s DirectX 11. Smartphones and tablets based on Intel’s Atom chip code-named Medfield will be released later this year.

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Will Samsung Overtake Apple

Yesterday, DigiTimes released its comprehensive Global Smartphone Industry 2012 forecast report, which entails the total number of global smartphone shipments in 2011 along with estimates of smartphone manufacturer ranking by volume in 2012.

According to the report, global smartphone shipments are projected to top 464 million units in the entirety of 2011, with Apple being the top ranking vendor in terms of shipment volume, followed by Samsung Electronics and Nokia. On the Google Android side of matters, it is expected that Samsung will overtake Apple in 2012 as the “world’s largest smartphone vendor by volume.” In addition, HTC will overtake Nokia for the third-place spot.

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Motorola Goes After Apple

Motorola has filed a new lawsuit in Florida charging Apple with six patent infringements in the iPhone 4S and four of those patents in iCloud.

The suit names the same six patents that Motorola cited in its complaint against Apple filed in 2010 in the same court. Motorola tried to add the iPhone 4S and iCloud to the list of Apple products in the original suit but the judge ruled that it was too late to do so.

The new suit is notable amid the lengthy battle between Motorola and Apple because it must have been sanctioned by Google, noted Florian Mueller, who has been closely following mobile patent lawsuits, in a blog post. Mueller is a patent expert who is sometimes paid by companies including Microsoft for his work.

The merger agreement between Google and Motorola stipulates that Motorola not assert any new intellectual property actions without an agreement in writing by Google. That means Google must have expressly authorized Motorola to pursue this new case, filed in the U.S. District Court for the Southern District of Florida.

Many experts believe that Google may have agreed to purchase Motorola for the cellphone maker’s extensive intellectual property portfolio, since Android has come under attack in the courts by companies including Microsoft and Apple.

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Nokia Sold 1 Million Lumina Smartphones

Nokia reported a one billion year over year loss for the quarter ended 30 December 2011, only slightly offset by its launch of Lumia Windows Phone smartphones.

The firm shipped 113.5 million mobile phones during the quarter, down eight per cent from the same period in 2010. However, the figures were up from the 106.6 million units shipped in the third quarter of 2011, as the company benefited from its launch of the Lumia 800 smartphone in October, its first Windows Phone handset since it announced its deal with Microsoft.

Nokia shipped 19.6 million smartphones during the final quarter of 2011, down from the 28.6 million it shipped a year earlier, but up 17 percent from the 16.8 million sold in the third quarter of 2011.

The company reported net sales of $10 billion for the quarter, 20 percent down from the same quarter a year earlier. Full year sales were $38.7 billion, a nine percent decline from 2010.

Nokia reported that it sold one million of its Lumia smartphones since they went on sale in October. The firm said it is accelerating investment in its Lumia range of devices running Microsoft Windows Phone, claiming it has sold “well over one million Lumia devices to date”.

Nokia CEO Stephen Elop said, “Just six months after signing an agreement with Microsoft, we introduced our first two devices based on the Windows Phones platform – the Nokia Lumia 800 and the Nokia Lumia 710. We brought the new devices to market ahead of schedule, demonstrating that we are changing the clock speed of Nokia. To date, we have introduced Lumia to consumers in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.

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iPhone Narrows Gap With Android

Apple’s iPhone gained major ground among recent buyers in its battle against smartphones running Google’s Android, but still lagged behind its OS rival, pollster Nielsen said today.

In a December 2011 survey of U.S. consumers who had purchased a smartphone in the previous three months, 44.5% chose an iPhone, a jump of nearly 20 percentage points from the 25.1% that Nielsen measured in October.

That represents a 77% increase in the iPhone’s numbers.

But Android maintained the lead in the recent-buyers game with a 46.9% share, down from October’s 61.6%.

A majority of the new iPhone owners — 57% to be exact — bought an iPhone 4S, the newest model in Apple’s line-up, said Nielsen. The iPhone 4S debuted in the U.S. on Oct. 14, 2011.

Nielsen said the iPhone 4S had an “enormous” impact on Apple’s huge jump in share among new smartphone purchasers.

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RIM Hopes Apps Will Help Sales

Research In Motion is highlighting the native and Android apps available on its struggling PlayBook at the Consumer Electronics Show as it gets ready to launch the first major overhaul of the tablet’s software in February.

The company is showing the PlayBook OS 2.0 in its booth, demonstrating the Android apps that will finally be available to users of the tablet. RIM said in March last year that it would release a player that would let users of the tablets run apps designed for Android, and that capability will finally be available with PlayBook OS 2.0.

Popular games such as Cut the Rope and Plants vs. Zombies will be available in the store, said Alec Saunders, vice president of developer relations and ecosystem development. The apps appear and work like any other app; users don’t have to launch a separate player to run them.

Not just any Android app will be accessible to users, and that’s by design, Saunders said. “We don’t want to enable an open marketplace the way the Android Market is,” he said. Android developers must use a software package to make their apps compatible with the PlayBook, and then they must submit it to RIM’s standard app curation process. The company hopes to weed out the malware and pirated apps that often appear in the Android Market, he said.

When PlayBook OS 2.0 becomes available, “some number of thousands” of Android apps will be available in the market, Saunders said. The company has been working with some of the aggregator marketplaces to port apps and attending Android meetups to encourage developers to make their apps available to PlayBook users, Saunders said.

RIM is taking pains to attract as many developers as possible by supporting as many languages and frameworks as possible. “One thing we’re focused on is providing a rich palette of tools developers can use,” Saunders said. RIM has developed ports for a number of frameworks and languages to make it easy for developers to use whatever tools.

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Motorola, Lenovo To Offer Intel-Smartphones

Intel announced multi-year deals with Motorola Mobility and Lenovo to create smartphones and tablets, and said the first Google Android phones using the top chipmaker’s processors would go on sale this year.

Speaking at the Consumer Electronics Show in Las Vegas on Tuesday, Intel Chief Executive Paul Otellini said Lenovo would launch a smartphone for the Chinese market using Intel’s newest chip in the second quarter of the year, while Motorola will release its phone in the second half.

The agreements with the U.S. and Chinese consumer electronics makers help shore up Intel’s boldest foray into the mobile arena. The company is hoping its new “Medfield” chip conserves enough power to compete with rival smartphones using ARM Holdings’ more energy-efficient architecture.

The world’s largest chip maker is also making a concerted push for the likes of Hewlett Packard to go big on super-slim, Apple Macbook Air-like laptops called Ultrabooks, which it hopes will preserve its dominance of the PC market as tablets like the iPad draw consumers away.

“It is a multi-year, multi-product strategy that will bring both phones and tablets to the (U.S.) marketplace starting with a phone in the second half of 2012,” Dave Whalen, a vice president in the Intel Architecture Group, said of the agreement with Motorola.

“You’re going to see us working very closely with them on technologies,” Whalen told Reuters in an interview.

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Kodak Goes After Apple

Kodak has sued Apple and HTC for allegedly infringing patents related to camera imaging.

According to the Wall Street Journal, the camera firm is alleging infringement of four patents by both companies as well as a fifth by HTC. It also filed a related complaint against both companies with the US International Trade Commission (ITC).

Kodak said it obtained its patents because it decided that people would like to easily share pictures from their digital cameras before putting them on their PCs.

It claimed Apple and HTC are infringing the patents by selling and importing mobile camera phones, tablets and other devices. The federal lawsuits were filed in Kodak’s home town of Rochester, New York.

The firm wants to stop Apple and HTC from selling products such as the Iphone and Ipad and is seeking compensatory and triple damages.

Kodak also has patent litigation ongoing against RIM, and legal proceedings have been taking place for more than a year.

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Can Hackers Attack A Trains Network?

Security expert Professor Stefan Katzenbeisser of Technische Universität Darmstadt told a security conference in Berlin that the GSM-R which is being installed in train networks makes them vulnerable to hackers.

Katzenbeisser said that the new system was vulnerable to “Denial of Service” attacks and, while trains could not crash, service could be disrupted for quite some time. Speaking to the Chaos Communication Congress he said that Network Rail is currently installing GSM-R across the British railway network.

It uses the similar technical standards to 2G mobile networks and is due to replace older signalling technology in southern England next year, and throughout the whole country in 2014. But train switching systems, which enable trains to be guided from one track to another at a railway junction, have historically been separate from the online world. If they were connected to the internet as they are in GSM-R they could be hit by Denial of Service attacks.

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