Mobile Security Threats Continue To Grow

According to industry analysts, mobile device shipments will exceed a billion devices in 2015 and will rapidly outrun PC shipments. That’s great news for end user convenience, mobility, and work-anywhere productivity. But it also means that enterprises must prepare for the fact that the criminals will target these devices with attack exploits, spyware,
and rogue applications.

And while IBM’s IT security research team, X-Force, predicts a modest 33 software exploits targeting mobile devices in the year ahead, that’s roughly twice the number of such attack code released in the past year.

The group also sees a number of other troubling mobile security trends. First, when software flaws do surface, many mobile phone makers do not rapidly deploy software patches to devices; malicious apps are often distributed through third-party app markets. Another troubling trend is that some mobile malware can collect end user’s personal information for use in phishing attacks.

An example of vulnerabilities that would make such attacks possible are the two recent Android security flaws that were reported to affect popular handsets including the AT&T Samsung Galaxy SII and various HTC devices.

The security find announced by security researcher Trevor Eckhart, called HTClogger (logging tools introduced by handset maker HTC) that could leak email account information, user location, phone numbers, and messaging logs.

Handset maker HTC said, in a statement, that it is working to quickly issue an update to its customers. “HTC is working very diligently to quickly release a security update that will resolve the issue on affected devices. Following a short testing period by our carrier partners, the patch will be sent over-the-air to customers, who will be notified to download and install it. We urge all users to install the update promptly,” the company said.

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FCC Warns Against Jammers

The U.S. Federal Communications Commission has issued warnings to 20 online retailers offeriing illegal mobile phone jammers, GPS jammers, Wi-Fi jammers and other signal jamming devices, the agency said Wednesday.

The sale and use of devices that jam the signals of authorized radio communications are illegal in the U.S., the FCC said in its enforcement action. The agency will “vigorously” prosecute violations going forward, it stated in a press release.

“Our actions should send a strong message to retailers of signal jamming devices that we will not tolerate continued violations of federal law,” Michele Ellison, chief of the FCC’s enforcement bureau, said in a statement. “Jamming devices pose significant risks to public safety and can have unintended and sometimes dangerous consequences for consumers and first responders.”

Jammers, sometimes used in classrooms, theaters and churches, are prohibited because they can prevent individuals from contacting police and fire departments or family members during an emergency, the FCC said. “Use of jamming devices can place you or other people in danger,” the agency said.

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Sprint Finally Gets The iPhone

Sprint Nextel confirmed that it will offer the next version of Apple Inc’s iPhone, ending months of speculation about whether it would become the third U.S. carrier to sell the popular device.

But the No. 3 U.S. mobile provider would not say whether its iPhone would come with a flat-fee service for unlimited data use – an offering analysts see as Sprint’s only hope for making its iPhone more competitive than rivals.

While selling the device should help Sprint keep subscribers from fleeing to other operators, some analysts worried whether the costs would outweigh the benefits because Apple phones come at a steep premium to other devices.

This is a huge gamble for Sprint and people are justifiably worried that they won’t be able to make any money doing it. It’s not a company that’s in great financial shape right now,” said Stifel Nicolaus analyst Chris King.

Analysts questioned how Sprint will be able to find the money to pay a premium to Apple on top of its obligations to pay back billions of dollars in debt and its plan to spend about $5 billion on an network upgrade in coming years.

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Will The FTC Block The Google?

The FTC has asked Google for more information about its $12.5 billion acquisition of Motorola Mobility. Google is buying the outfit as a defence against Apple and Microsoft patent law suits, however in a filing with the U.S. Securities and Exchange Commission, Motorola said it received a request for “additional information and documentary material” from the U.S. Department of Justice’s antitrust division.

According to Reuters, Motorola said Google also received a similar request and repeated its expectation the deal would close by the end of 2011 or early 2012. Writing in his bog, Google Senior Vice President Dennis Woodside said the DOJ’s “second request” was “pretty routine” and there was nothing to see here, move on please. Google usually gets a note from the FTC even if it buys lunch for a client. A similar one appeared when it bought ITA Software.

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Cisco Offers Free iPad/iPhone Video App

Cisco announced improvements to its video product line Thursday to make it easier for businesses to create and share video, including a free app coming soon for iPhone and iPad devices.

The free app will make Cisco’s existing Show and Share software available for iPad and iPhone in late October through the Apple App Store, Cisco officials stated via a Webcast earlier this week.

Show and Share is Cisco’s video-sharing software, which allows users to search and watch videos as well as record and upload their own videos. That software has been available on other hardware, but until now not for the iPhone and iPad.

Also, Cisco said it is integrating its existing Show and Share with its Media Experience Engines 3500 and itsTelePresence Content Server, although it didn’t yet name the products that will provide the integration. Also, a new software release of the 3500 allows it to support Flash, H.264 and Windows Media formats.

An existing software tool called Pulse Video Analytics will soon allow searches of video content by keyword or speaker in the Cisco Show and Share product.

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Intel, Samsung Behind New Phone OS

Two Linux software groups have decided to collaborate, they said on Wednesday, to develop a new operating system for cellphones and other devices in partnerships with Intel and Samsung Electronics.

However, analysts said the new Tizen platform is likely to struggle to attract wider developer and manufacturer support to compete with the dozen or so other mobile operating systems in a market dominated by Apple and Google’s Linux-based Android.

Even industry majors Nokia and Hewlett-Packard have canceled their mobile platforms this year.

“The best hope for them is that big operators get worried by Android’s increasing smartphone dominance and decide to consciously switch their allegiances to rival platforms to restrict Google’s huge influence over the mobile market,” said analyst Neil Mawston from Strategy Analytics.

LiMo Foundation and the Linux Foundation said the new Tizen platform is an open-source, standards-based software platform that supports multiple devices including smartphones, tablets, smart TVs, netbooks and in-vehicle ‘infotainment’ systems.

The initial release is planned for the first quarter of 2012, enabling the first devices using Tizen to come to market in mid-2012, the two groups said.

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Verizon Sides With Samsung Not Apple

Verizon Wireless, the biggest U.S. mobile operator, has taken a legal stand against Apple Inc’s request to prohibit the sale of some Samsung Electronics models in the United States.

“The requested injunction of certain Samsung products will harm Verizon Wireless and U.S. consumers,” Verizon said in a court filing dated September 23.

“It also has the possibility of slowing the deployment of next-generation networks — such as Verizon Wireless’s — contrary to the stated goals of the U.S. government,” it said.

Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Plc.

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BlackBerry Falls Behind In Workplace

More workers use iPhone and Android smartphones combined than BlackBerry devices, according to a survey of 1,681 U.S.-based workers released today by Forrester Research.

That finding highlights what many have known for a while about the entrenched workplace smartphone veteran: the BlackBerry faces trouble from its competitors.

The BlackBerry, made by Research in Motion, still leads among U.S. workers, with 42%, the survey said, with Apple’s iPhone accounting for 22% and Android devices, 26%.

The survey also found that nearly half, or 48% of the group, said that they chose the primary smartphone used for their work without considering what their company supports. Only 29% said they chose the smartphone from a list of phones the company supports, while 23% said they had no choice in the matter.

Often, corporate IT shops will choose BlackBerry smartphones when requiring a worker to use a specific smartphone, partly because of the perceived security benefits, many analysts, including at Forrester, have found. The growth in Android phones and the iPhone — many of them brought to workplaces by workers independently — are forcing IT shops to rethink that decision, however.

Ted Schadler, a Forrester analyst, said the survey points to two major trends. The first is that more workers than ever are bringing consumer-focused devices, such as Android and iPhone smartphones, to use for work, and more companies are supporting those devices.

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Samsung’s New Chip Line To Boost Flash Memory

Samsung Electronics, the world’s No.1 memory chip maker, said it began mass production at a new $10 billion chip line, as it seeks to raise its profile in the booming flash memory chip market fueled by robust demand growth in mobile products.

Samsung’s new production line, its first in about five years, will help the company sharply lower production costs of the chips and could exacerbate oversupply in the market, stifling smaller rivals.

Apple Inc, the maker of popular iPhones and iPads, and Sony, which joined the crowded tablet market last month with two new devices, buy flash memory chips from Samsung.

The cost-competitive facility will make it difficult for its major customers to shift away to other suppliers.

Apple, Samsung’s biggest customer locked in a series of patent legal battles with the South Korean firm, is trying to reduce sourcing from the emerging competitor.

“The new line won’t have any immediate impact on the supply side, as it will take some nine months to fully raise capacity run rates, but it shows Samsung’s attempt to take more share in the flash chip market,” said Song Myung-sup, an analyst at HI Investment & Securities.

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RIM’s Woes Continue

PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.

RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.

Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.

RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.

RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.

Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.

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