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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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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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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Toshiba Develops Mobile Sensor

Toshiba has created a new image sensor for mobile phones and tablets that promises better image resolution for run-of-the-mill smartphones when it goes into mass production.

The T4KA7 is a 1/2.4-inch, 20-megapixel backside illuminated sensor with a 1.12 micrometer pixel size, which provides for a smaller sensor size overall.

The sensor allows for a lower module height of under 6 millimeters compared to the current 20-megapixel, 1.2-micrometer sensors, the company said.

“T4KA7 is the first 1.12-micrometer, 20-megapixel sensor on the market with a high frame rate of 22 fps at full resolution,” a Toshiba spokeswoman wrote in an email.

The frame rate is 1.8 times the speed of Toshiba’s previous 20-megapixel sensor, the T4K46.

When zooming digitally, the sensor provides crisper images compared to 13- and 16-megapixel sensors, which are resolutions widely adopted in recent smartphones, she added.

Announced earlier this year, Samsung’s camera-phone hybrid Galaxy K zoomhas a 20.7-megapixel image sensor that is supposed to perform well when taking photos in low-light settings.

Without a specific measurement for comparison, it’s hard to say whether the T4KA7 would do any better in low-light shooting situations than other sensors, the Toshiba spokeswoman said.

“We think we are providing top-class sensors in terms of pixel performance,” she added.

Toshiba is producing samples of its new sensors now, with mass production of up to half a million units per month to begin in November.

Higher-end smartphones already featuring 20-megapixel cameras include the Sony Xperia Z1, the Nokia Lumia 930 and 1520.

Announced last month, the Nokia Lumia 1020 sports a camera designed for photographers — it has a sensor with 41-megapixel resolution.

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Is The EU Going After Qualcomm

Qualcomm faces an antitrust investigation in Europe, even as it seeks to end a probe of its alleged monopoly practices in China.

Reuters reported that Qualcomm is looking for an amicable resolution of an investigation conducted by China’s National Development and Reform Commission (NDRC) over suspicions that it holds a monopoly in the Chinese telecoms market.

The investigation involves allegations that Qualcomm’s China subsidiary has been overcharging and exploiting its position in the wireless communications sector.

The antitrust probe of Qualcomm has been ongoing since last November, when the firm revealed that it was under investigation by the NDRC, though at the time it said the NDRC had not revealed the substance of the investigation.

In February, the NDRC declared it had received complaints against Qualcomm from the China Communications Industry Association, regarding its market position and patent fees it charged Chinese mobile phone manufacturers.

While the NDRC has ruled that Qualcomm does hold a monopoly in China, it has yet to decide whether the company has abused its position in the market.

Under China’s 2008 anti-monopoly laws, Qualcomm could face high fines, potentially topping $1bn.

In a statement to Reuters, Qualcomm said that it is seeking an amicable conclusion to the investigation. “Qualcomm executives discussed with NDRC officials several topics in an effort to reach a comprehensive resolution. We are continuing to cooperate with NDRC and cannot comment further,” the firm said.

Given that the NDRC is targeting at least another 30 foreign firms with antitrust investigations, including Microsoft and Volkswagen, critics have suggested that the monopoly law is being used to unfairly target overseas firms so that China can protect its native businesses.

Even if the China case is settled Qualcomm is now facing the prospect of a monopoly probe in Europe. Reuters has also reported the company could face a European Commission antitrust investigation following a complaint made four years ago by British software defined modem company Icera, a subsidiary of Nvidia.

Icera alleged that Qualcomm had engaged in anti-competitive behaviour by discouraging customers from doing businesses with Icera through patent related incentives and exclusionary pricing of chipsets.

While it was thought that the allegations had dropped from the European Commission’s agenda, the issue has resurfaced. It could even be fast-tracked following a similar monopoly case and subsequent fine made against Intel, which cost the company €1.1bn.

As yet, no official investigation has been opened by the European Comission. Qualcomm was contacted for a statement on both antitrust investigations, but the company has not yet responded.

Patents and their subsequent enforcement tend to play a major part in the technology industry as companies vie for market shares or state their supremacy. Qualcomm is no different, with the company having snapped up 2,400 patents from HP, including one for the now-defunct Palm technology, earlier this year.

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Opera Mini Goes To Windows Phone

Norwegian software maker Opera inked a deal to take over the browser building unit of Microsoft’s Nokia cellular phone unit and reported second-quarter earnings above expectations on Thursday, sending it shares sharply higher.

“We have signed a strategic licensing deal with Microsoft. We are basically taking over the browser building department in Nokia,” Opera Chief Executive Lars Boilsesen said. “This means that Opera Mini will become the default browser for Microsoft’s feature phone product lines and the Asha phones product lines.”

The deal will be profitable from the start, he added.

“All the current user base will be encouraged to upgrade to Opera Mini and all the new phones will come with Opera Mini pre-installed as a default browser. This is a great deal for us. We have dreamed of this for more than 10 years.”

In a separate statement, Opera said the licensing agreement applies to mobile phones based on the Series 30+, Series 40 and Asha software platforms.

“As part of the agreement, people who use the current browser for these phones, Xpress, will be encouraged to upgrade to the latest Opera Mini browser. Factory-new devices will have Opera Mini pre-installed.”

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Is Windows ‘Threshold’ Enroute?

Microsoft will unveil a preview of “Threshold,” the current code name for Windows 8′s successor, as soon as next month, according to an online report on Monday.

ZDNet’s Mary Jo Foley, citing unnamed sources, said that Microsoft will deliver a “technical preview” of Threshold late in September or early in October. Previously, Foley had reported that Microsoft would offer a preview of some kind this fall.

Threshold may be officially named “Windows 9″ by Microsoft — the company has said nothing about either the code name or labeled the next iteration of its desktop and tablet OS — although there are arguments for dumping a numerical title because of the possible association with Windows 8, which has widely been pegged as a failure.

“Technical Preview” is a moniker that Microsoft has used in the past for its Office suite. For both Office 2013 and Office 2010, Microsoft used the term to describe an invitation-only sneak peek. Both application suites were later released as public betas prior to their official launch.

Windows, however, has used a different nomenclature. For 2012′s Windows 8, Microsoft called the early looks ”Developer Preview,””Consumer Preview” and “Release Preview,” all open to everyone. The first was analogous to an alpha, the second to a beta, and the third to a done-but-not-approved release candidate.

Windows 7, however, had used the more traditional “Beta” to describe the first public preview in early 2009. The previous fall, when Microsoft unveiled Windows 7, the firm had seeded an invite-only “pre-alpha” version, also dubbed a Developer Preview, of the OS to programmers and some influential bloggers.

Within hours, the Windows 7 Developer Preview leaked to file-sharing websites. Microsoft may have changed its practices for Windows 8, letting anyone download the first preview, because of the inevitably of leaks.

In an update to her blog of earlier today, Foley added that the “Technical Preview” nameplate notwithstanding, Microsoft would allow anyone to download Threshold/Windows 9 when it becomes available in the next few weeks.

If Microsoft does ship a preview soon and sets its sights on a second-quarter 2015 final release, it will have significantly accelerated the tempo from past practice. With Windows 7 and Windows 8, Microsoft offered its first previews 12 and 13 months, respectively, and the public beta 8 or 9 months, before launching the operating system.

Eight or nine months from September would be May or June 2015; that, however, assumes that the Technical Preview is of beta quality. The name itself hints at something less.

Microsoft appears eager to put Windows 8 behind it. It has stopped beating the drum about the OS and recently announced that it would not issue any additional major updates. Instead, the firm said last week, it will include improvements or new features in small packets using the same Windows Update mechanism that regularly serves security patches.

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Apple Changes Policy In China

Apple Inc has started the processing of keeping the personal data of some Chinese users on servers in mainland China, marking the first time the tech giant is storing user data on Chinese soil.

The storage of user data in China represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers in China due to censorship and privacy concerns.

Apple said the move was part of an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data. Positioning data centers as close to customers as possible means faster service.

The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement.

“Apple takes user security and privacy very seriously,” it said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland china. All data stored with our providers is encrypted. China Telecom does not have access to the content.”

A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom.

Apple has said it has devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts expressed scepticism that Apple would be able to withhold user data in the event of a government request.

“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that’d have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers.

“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.”

Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.

A spokesman for China Telecom declined to comment.

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Applied Materials Makes A Profit

Chip-equipment maker Applied Materials has surprised most of the cocaine nose jobs of Wall Street with a better-than-expected third-quarter profit. It appears that contract manufacturers are spending more on technology used to make smartphone and memory chips.

The company also forecast current-quarter adjusted profit largely above analysts’ average estimate. Chief Executive Gary Dickerson said that demand for DRAM chips is expected to grow in the current quarter.

Applied Materials, which also provides equipment to make flat panel displays and solar cells, forecast an adjusted profit of 25-29 cents per share for the fourth quarter. Wall Street was expecting a profit of 26 cents per share.

Applied Materials expects revenue growth of about 10 to 17 percent, implying revenue of $2.19 billion to $2.33 billion for the quarter. Analysts on average were expecting $2.28 billion. Applied Materials’ net income rose to $301 millionin the third quarter ended July 27, from $168 milliona year earlier. Revenue rose 14.7 percent to $2.27 billion.

Revenue in the company’s silicon systems business, which brings in about two-thirds of total sales, rose 16 percent to $1.48 billion.

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Will Sprint Cut It’s Staff?

Sprint’s new CEO Marcelo Claure addressed employees for the first time and promised price reductions are coming very soon, according to a report.

Sprint didn’t deny the report of Marcelo’s comments. A spokesman also confirmed Friday that Sprint is “focusing on providing the best value in the market.”

According to the account of Claure’s comments, he told workers, “We’re going to change our plans to make sure every customer in America thinks twice about signing up to a competitor.” The report, which first appeared in LightReading.com, also said that “very disruptive” rate plans are coming this week.

Sprint didn’t dispute Light Reading’s report, but a spokesman said Sprint is not commenting on “any potential pricing plans before they are announced.”

The spokesman, Doug Duvall, said Marcelo held his first all-employee town hall meeting before a standing-room-only crowd. He added: “He shared his passion for his family, work and soccer team and his commitment to leading Sprint. He discussed Sprint’s challenges and pledged to get Sprint ‘back in the game’ by focusing on providing the best value in the market, completing our network build and optimizing Sprint’s cost structure.”

By confirming Sprint wants to offer the “best value in the market,” it’s pretty clear that Sprint, the third-largest U.S. carrier, will soon wage a price war with the T-Mobile, the fourth-largest U.S. carrier that has quickly been gaining on Sprint.

Analysts recently said Sprint’s recent “Framily plan” isn’t competitive in the market, which former CEO Dan Hesse acknowledged in late July before his departure on Monday.

The Sprint Framily plans costs $160 a month for 4GB of data, but comes with overage charges and won’t allow tethering. Meanwhile, T-Mobile has a family plan offered through September that costs $100 a month for four lines and 10GB of data, although each line is limited to 2.5GB.

Hesse had earlier described subscriber plans Sprint was testing that have tiers of data and unlimited data.

According to Light Reading, Claure also told employees that price cuts are needed because Sprint’s network isn’t at the level of performance and reach that it should be. “When you have a great network, you don’t have to compete on price,” he reportedly said. “When your network is behind, unfortunately you have to compete on value and price.”

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