What Will Facebook Do With WhatsApp?

Facebook, which closed its acquisition of mobile messaging service WhatsApp earlier this week, has said that it has no near-term plan to make money from it.

Chief Executive Mark Zuckerberg, who is visiting India to participate in an event to boost Internet usage, refused to say much more, but it does indicate that the company has not worked out a cunning plan yet.

Facebook’s final WhatsApp acquisition price tag has risen an additional $3 billion to roughly $22 billion because of the increased value of Facebook’s stock in recent months. This means that Zuckerberg is under pressure to make a bob or two from the deal.

WhatsApp works across different types of phones, across borders, and without advertising. The app only charges a 99 cent annual subscription fee, which is waived for the first year.

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Will Verizon Throttle Users?

Verizon Wireless backed away from a widely criticized plan to slow down the connections of heavy data users with unlimited LTE plans.

The carrier had announced in July it would extend a practice it calls network optimization to unlimited LTE subscribers starting in October. Network optimization targets the top 5 percent of data users on the network when a cell site is under the heaviest demand, and slows down those users’ network performance. Verizon had already applied the practice to the top users of its 3G network.

“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” the carrier said in a statement on Wednesday. “Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”

U.S. Federal Communications Commission Chairman Tom Wheeler attacked the plan in a letter to Verizon, suggesting it was a ploy to get customers to switch from their unlimited plans to ones with a cap on monthly data usage. Verizon no longer sells new unlimited plans but allows subscribers with those plans to keep them.

“I know of no past Commission statement that would treat as ‘reasonable network management’ a decision to slow traffic to a user who has paid, after all, for ‘unlimited’ service,” Wheeler wrote in the late July letter to Verizon Wireless President and CEO Dan Mead.

Digital rights group Public Knowledge also attacked so-called data throttling, as well as practices by AT&T, Sprint and T-Mobile USA.

The showdown demonstrated the tension over increasing demand for mobile data, which carriers say puts a strain on their networks. Among other things, that demand has led operators to seek ever more spectrum and apply network management techniques they say are necessary to keep serving all subscribers well. Though LTE makes much more efficient use of the airwaves than 3G does, LTE networks are serving a rapidly growing number of subscribers.

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Will ARM’s Mbed OS Help The IoT?

ARM has announced a software tool to make Internet of Things (IoT) deployment faster and easier and thus speed up the creation of IoT devices.

Called the Mbed IoT Device Platform, the software is primarily an operating system (OS) built around open standards that claims to “bring Internet protocols, security and standards-based manageability into one integrated tool” in order to save money and energy in making IoT devices.

The Mbed IoT Device Platform is made up chiefly of the Mbed OS, a free operating system for Cortex-M processor based devices that “consolidates the building blocks of the IoT in one integrated set of software components” and contains security, communication and device management features to enable the development of lower power IoT devices.

The OS will be available to Mbed partners in the fourth quarter for early development, with the first production devices due in 2015 to allow companies to focus on innovation, reducing development costs and time to market.

It will also support standards such as Bluetooth Smart, 2G, 3G, LTE and CDMA cellular technologies, Thread, WiFi, and 802.15.4/6LoWPAN along with TLS/DTLS, CoAP, HTTP, MQTT and Lightweight M2M, ARM said.

The Mbed OS will also feature the Mbed Device Server, a licensable software product that provides the required server-side technologies to connect and manage devices in a more secure way. It also provides a bridge between the protocols designed for use on IoT devices and the APIs that are used by web developers.

“This simplifies the integration of IoT devices that provide ‘little data’ into cloud frameworks that deploy big data analytics on the aggregated information,” said ARM. “Built around open standards, the product scales to handle the connections and management of millions of devices.”

Mbed Device Server is available now, with an aim to improve efficiency, security and manageability for devices using a “standards-based and IoT approach”, ARM said.

The software also comes with its own community, Mbed.org, which is the focus point for a more than 70,000 developers around the platform. The website provides a database of hardware development kits, a repository for reusable software components, reference applications, documentation and web-based development tools. It is already up and running, ARM said.

“Deploying IoT-enabled products and services requires a diverse set of technologies and skills to be coordinated across an organization,” said ARM CEO Simon Segars. “ARM Mbed will make this easier by offering the necessary building blocks to enable our expanding set of ecosystem partners to focus on the problems they need to solve to differentiate their products, instead of common infrastructure technologies. This will accelerate the growth and adoption of the IoT in all sectors of the global economy.”

ARM is launching Mbed with a number of partners, including Atmel, CSR, Ericsson, Farnell, Freescale, IBM, KDDI, Marvell, Megachips, Multitech, Nordic Semiconductor, NXP, Renesas, Seecontrol, Semtech, Silicon Labs, Stream Technologies, ST, Telenor Connexion, Telefonica, Thundersoft, u-blox, wot.io and Zebra.

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Sony Launches SDK For SmartEyeglass

Sony has rolled out an SDK (software development kit) for its SmartEyeglass head-mounted display, another step toward challenging Google Glass.

The glasses can connect to Android smartphones via Bluetooth and project green monochrome text or basic graphics across a field within the lenses.

Sony said it will begin sales of the eyewear to developers by March 31, the end of its fiscal year. They will be sold in Japan, the U.S. and some European countries.

The Developer Preview SDK includes an emulator, tutorials, sample code and design guidelines to make the most of the device’s hardware and sensors including an accelerometer, gyroscope and brightness sensor.

The glasses, which weigh 77 grams, are more than 85 percent transparent and include a camera that can shoot 3-megapixel images and VGA video.

Sony has emphasized that the glasses project images to a user’s natural line of sight, which differs from the Google Glass display set in a corner.

“Sony’s competitive edge lies in our achievement of a thin lens with high transparency thanks to our unique holographic light guide plate technology, which enables us to provide a bright field of vision,” a Sony spokeswoman wrote in an email.

“Furthermore, the screen size is large, and images and text are displayed from the front for both eyes (not only one eye) to facilitate easier viewing and prevent eye fatigue.”

The price for the glasses as well as availability of a consumer version are still to be decided, she added.

Bulky prototype versions of the glasses were shown at the IFA and CES electronics shows earlier this year.

Potential applications include displaying cooking instructions for chefs, running time for joggers and messages from friends.

Augmented reality-style functions are also possible, such as displaying information when a user looks at a certain bottle of wine, facial recognition or navigation information in an unfamiliar city.

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Will HP Dump Snapfish?

Hewlett-Packard Co is taking a look at putting its web-based photo sharing service Snapfish on the block, and has held discussions with multiple private equity and industry buyers, a person with knowledge of the situation said.

Snapfish, which HP bought for more than $300 million in 2005 and currently sits within its printing and personal systems group, is considered non-core for the company, the person said, asking not to be named because the matter is not public.

A spokesman for HP declined to comment.

Last year, HP replaced the printing and personal business’ long-time head Todd Bradley with former Lenovo executive Dion Weisler. Bradley has since left the technology company, to join Tibco Software Inc as its president.

Some of the parties that have been eyeing Snapfish have also expressed interest in buying another online photo-sharing services provider, Shutterfly Inc, the person said.

Shutterfly hired Frank Quattrone’s Qatalyst Partners over the summer to find a buyer, and is expected wrap up its process in the next several weeks, people familiar with the matter have said previously.

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Ericsson Acquires Fabrix Systems

The distinctions between TV and mobile services continues to merge and in many cases that occurs in the cloud.

That’s the logic behind Ericsson’s planned $95 million acquisition of Fabrix Systems, which sells a cloud-based platform for delivering DVR (digital video recorder), video on demand and other services.

The acquisition is intended to help service providers deliver what Ericsson calls TV Anywhere, for viewing on multiple devices with high-quality and relevant content for each user. Cable operators, telecommunications carriers and other service providers are seeing rapid growth in video streaming and want to reach consumers on multiple screens. That content increasingly is hosted in cloud data centers and delivered via Internet Protocol networks.

Fabrix, which has 103 employees in the U.S. and Israel, sells an integrated platform for media storage, processing and delivery. Ericsson said the acquisition will make new services possible on Ericsson MediaFirst and Mediaroom as well as other TV platforms.

Stockholm-based Ericsson expects the deal to close in the fourth quarter. Fabrix Systems will become part of Ericsson’s Business Unit Support Solutions.

Other players usually associated with data networks are also moving into the once-specialized realm of TV. At last year’s CES, Cisco Systems introduced Videoscape Unity, a system for providing unified video services across multiple screens, and at this year’s show it unveiled Videoscape Cloud, an OpenStack-based video delivery platform that can be run on service providers’ cloud infrastructure instead of on specialized hardware.

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Is RadioShack Going Bankrupt?

Troubled electronics retailer RadioShack Corp says filing for bankruptcy protection is an option if its cash situation worsens, after reporting its tenth straight quarterly loss.

The company said it was also exploring other options, including a sale or an investment, and liquidation as the last resort.

RadioShack, whose sales have been in free-fall since 2010 as it struggles to compete with internet retailers, said in a regulatory filing it was working with its lenders and landlords to restructure its debt and cut costs.

“It would surprise me if we got to Nov. 1 without a bankruptcy,” Wedbush Securities Inc analyst Michael Pachter told Reuters.

RadioShack shares, which are in danger of being delisted from the New York Stock Exchange, were up 2 percent at 95 cents in volatile early trading.

The company said same-store sales declined 20 percent in the latest quarter, while total sales plunged to their lowest in more than 20 years.

The company is being advised by a restructuring attorney at law firm Jones Day as it tries to strike a deal with creditors to close stores, two people close to the matter told Reuters on Wednesday.

RadioShack tried to close 1,100 stores this year, but reduced that number to 200 a year when lenders did not agree to the plans.

RadioShack’s landlords, however, may be open to mass store closures if they believe it will allow them to find new tenants more quickly than in a bankruptcy, a source close to the matter told Reuters.

David Tawil, president of hedge fund Maglan Capital that focuses on companies approaching bankruptcy, said he saw “major execution risks” to RadioShack’s recapitalization and turnaround efforts.

“I don’t think that the chances are great that RadioShack survives,” Tawil said, adding that the company’s credit default swaps were trading higher, pointing to market expectations of a near-term debt default.

The company ended the second quarter with $30.5 million in cash and $658.0 million in debt, which matures between 2018 and 2019.

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Intel Debuts A Slew Of Core M Chips

Intel’s new Core M chips — which bring PC-like performance to slim design tablets — will initially be in many Windows 8.1 tablets, but no Android devices are yet on the radar.

The chips will be in five to seven detachable tablets and hybrids by year end, and the number of devices could balloon to 20 next year, said Andy Cummins, mobile platform marketing manager at Intel.

Core M chips, announced at the IFA trade show in Berlin on Friday, are the first based on the new Broadwell architecture. The processors will pave the way for a new class of thin, large-screen tablets with long battery life, and also crank up performance to run full PC applications, Intel executives said in interviews.

“It’s about getting PC-type performance in this small design,” Cummins said. “[Core M] is much more optimized for thin, fanless systems.”

Tablets with Core M could be priced as low as US$699, but the initial batch of detachable tablets introduced at IFA are priced much higher. Lenovo’s 11.6-inch ThinkPad Helix 2 starts at $999, Dell’s 13.3-inch Latitude 13 7000 starts at $1,199, and Hewlett-Packard’s 13.3-inch Envy X2 starts at $1,049.99. The products are expected to ship in September or October.

Core M was also shown in paper-thin prototype tablets running Windows and Android at the Computex trade show in June. PC makers have not expressed interest in building Android tablets with Core M, but the OS can be adapted for the chips, Cummins said.

The dual-core chips draw as little as 4.5 watts, making it the lowest-power Core processor ever made by Intel. The clock speeds start at 800MHz when running in tablet mode, and scales up to 2.6GHz when running PC applications.

The power and performance characteristics make Core M relevant primarily for tablets. The chips are not designed for use in full-fledged PCs, Cummins said.

“If you are interested in the highest-performing parts, Core M probably isn’t the exact right choice. But if you are interested in that mix of tablet form factor, detachable/superthin form factor, this is where the Core M comes into play,” Cummins said.

For full-fledged laptops, users could opt for the upcoming fifth-generation Core processor, also based on Broadwell, Cummins said. Those chips are faster and will draw 15 watts of power or more, and be in laptops and desktops early next year.

New features in Core M curbed power consumption, and Intel is claiming performance gains compared to chips based on the older Haswell architecture. Tablets could offer around two more hours of battery life with Core M.

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Acers To Launh Cheap Tablets

Acer’s latest low-cost 8-inch tablets will come to market in both Android and Windows flavors.

The Iconia Tab 8 W runs Windows on an Intel Atom Z3735G quad-core processor. It offers 8 hours of battery life, weighs 370 grams and is 9.75 millimeters thick. The 8-inch screen has a resolution of 1280 by 800 pixels.

For the $149 price tag, Acer includes a one-year subscription to the Personal version of Office 365, which includes access to Word, Excel, PowerPoint, OneNote and Outlook.

Android fans will prefer the Iconia One 8, running Android 4.4. It has the same Intel processor and screen dimensions as its Windows cousin, but is slightly lighter at 340 grams and only 8.5 millimeters thick.

Buyers can choose between 10 colors, including red, green, blue, purple and pink.

Acer also took the covers off the Iconia 10, an Android-based 10-inch tablet. The device has a quad-core processor from MediaTek. The screen is protected using Gorilla glass and has Full HD resolution. Using Dolby Digital Plus, surround sound is simulated from two-channel stereo audio headphones.

Available in black or white and with a price of $199, the Iconia Tab 10 includes a micro HDMI port and Wireless Display support for showing photos and videos on a bigger TV.

The first of the new tablets to start shipping will be the Iconia 10, available this month in the Americas and Europe, Middle East and Africa (EMEA).

The Iconia Tab 8 W will go on sale in October in EMEA and in November in the Americas.

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Insurers To Use Mobile Phones To Track

A new usage-based insurance (UBI) software platform will enable insurers to track drivers’ behavior through smartphone sensors and geolocation services.

Agero, one of the nation’s largest suppliers of roadside safety software and services to automakers and insurance companies, said its new UBI telematics suite will transmit to insurers the information needed to offer discounts to good drivers, penalize others, and send alerts to emergency assistance service providers.

The UBI suite consists of the PolicyPal app, which tracks driving habits in real time, and Auto Crash Notification (ACN), which automatically notifies emergency services within moments of an accident.

Currently, State Farm’s In-Drive and Progressive’s Snapshot program, offer customers the opportunity to voluntarily participate in programs in which their insurer collects vehicle data and uses the information to determine driving habits, which in turn can be used to offer lower-rate incentives to safer operators.

Unlike Agero’s new platform, however, In-Drive and Snapshot, use a small data collection device that plugs into a vehicle’s standard OBDII onboard diagnostics port under the dashboard and transmits data from a car’s central computer to insurance companies.

Agero’s new mobile suite will greatly expand upon the universe of consumers who can vie for “discount rates” based on their driving profiles. The mobile device also travels with them in or out of the vehicle.

Over the past decade, the insurance industry has been embroiled in a heated price war, with companies vying to be king of the heap for discount pricing.

“It’s becoming a cutthroat market. They’re competing on price,” said Jeff Blecher, senior vice president of strategy at Medford, Mass.-based Agero. “To break that mold, they need a new business model. UBI does that. Now, they can compete based on the risk profile of drivers.”

UBI offers the insurance industry new opportunities for tailored discount programs. Notably, they can switch from relying OBDII dongles plugged into the customer’s car and instead use mobile apps that travel with the driver, whether he’s traveling in his own car or another vehicle.

“We want to align our strategy… with the smartphone as primary data collection point,” Blecher said.

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