May 2012

Antiwar Protester Disrupts Inquiry as Blair Testifies

It has been 15 years since Tony Blair entered office as the most popular British prime minister in modern memory, and five years since he left the job in a climate of opprobrium so dire that he opted to virtually disappear from his country’s public life, turning to a life as a richly rewarded world traveler, diplomat and consultant. But if there has been something Nixonian about him, a man fallen from grace at home yet still widely celebrated abroad, Blair marked a comeback of a kind on May 28. Before a judicial inquiry that is examining Rupert Murdoch’s decades of what some saw as shadowy power over the country’s politicians, he rolled out a new model of himself, Tony Blair as the 60-ish, above-the-fray, unflappable elder statesmen. Along the way, Blair, 59, sought to take some of the heat out of the furor surrounding Murdoch, saying that despite bestowing his British newspapers’ backing on the Labour Party before Blair’s breakthrough election in 1997, the media tycoon had never sought to lobby him on issues that affected the commercial success of the Murdoch properties in Britain. Moreover, Blair said, the newspapers’ backing remained steady through two more Labour election victories, although Labour “decided more often against than in favor” on regulatory matters affecting Murdoch’s companies.

Virus Infects Computers Across Middle East

A complex computer virus has been pilfering confidential information from computers in the Middle East for at least two years, according to a security report. The virus, called Flame, has been infecting computers in Iran, Israel, Lebanon, Sudan, Syria, Saudi Arabia and Egypt.

It has been grabbing images of users’ computer screens, recording their instant messaging chats, remotely turning on their microphones to record their audio conversations and monitoring their keystrokes and network traffic, according to a report by Kaspersky Labs, a Moscow-based security research firm. If the report’s findings prove to be true, Flame would be the third major Internet weapon to have been discovered since 2010. The first, named Stuxnet, was intended to attack software in specialized industrial equipment, and was used to destroy centrifuges in an Iranian nuclear facility in 2010. The second virus, called Duqu, like Flame, performed reconnaissance. Security researchers believe Duqu was created by the same group of programmers behind Stuxnet.

Beijing faces Brussels action on telecoms aid

The European Union is poised to launch one of its biggest trade cases against China in a generation after telling member states it has compiled firm evidence that Beijing’s telecommunications equipment companies have benefited from illegal state subsidies.

The European Commission has been piecing together the case for months, according to several officials and executives briefed on the case, focusing on the activities of two Chinese makers of mobile network equipment, Huawei and ZTE. EU officials informed representatives from the bloc’s 27 member states at a closed-door meeting they believed the commission had “very solid evidence” that those companies benefited from illegal government subsidies and had sold products in the EU below cost, a practice known as “dumping.”

EU internet ‘cookies’ rules cause confusion

Developments in web browsing technology have in recent years largely consigned the irritating pop-up advertisement to internet history. But European rules aimed at protecting the UK’s internet users from intrusive advertising have in the last week led to a new crop of pop-ups appearing on websites based in the UK.

This weekend saw the long-heralded implementation of new regulations in the UK around “cookies”, digital morsels of data that can track surfing behavior across the web, and an accompanying last-minute rush from several popular websites to comply, with many using small pop-up messages on their homepages. But several surveys of both consumers and companies show that most remain confused about the 2009 European e-privacy directive, which requires website owners to obtain the consent of their visitors to the use of cookies.

France Telecom lifts Mobinil stake to 94%

France Telecom has tightened its control of Mobinil, its mobile phone venture in Egypt, the most populous Arab country where mobile subscriptions are growing rapidly.

The French telecoms operator confirmed it had acquired 93.9 per cent of Mobinil in a tender offer, completing a €1.5bn deal first announced in April to buy out most of the shares owned by local tycoon and Mobinil founder Naguib Sawiris. Under the deal, France Telecom raised its stake from 71 per cent by buying most of the shares it did not already own from Sawiris’s Orascom Telecom Media and Technology. Sawiris will retain a 5 per cent capital stake in Egyptian Company for Mobile Services, the listed vehicle that operates the Mobinil brand, but his voting interest will remain at 28.75 per cent to assuage local concerns about national ownership.

Presidential Panel Urges More Flexible Use of Spectrum

A just-completed report from a presidential advisory committee urges President Obama to adopt new computer technologies to make better use of a huge swath of the radio spectrum now controlled by federal agencies.

The shift, which could be accomplished by presidential signature — and without Congressional involvement — would relieve spectrum congestion caused by the popularity of smartphones, and generate far more revenue for the federal government than auctioning spectrum to wireless carriers, according to the authors of the report. Making better use of the spectrum for cellphones would allow for more services, more competition and possibly lower prices for consumers using cellphone data services. The new plan, which calls on the government to electronically rent or lease spectrum for periods of time as short as seconds using newly available computerized radio technologies, was presented publicly May 25 to a meeting of the President’s Council of Advisors on Science and Technology, or PCAST. The authors of the report included Eric E. Schmidt, the chairman of Google, Craig Mundie, Microsoft’s chief research and strategy officer and Silicon Valley venture capitalists Mark P. Gorenberg and David E. Liddle, among others. The report is scheduled to be presented to the president in June after final editing.

Is Google or PayPal Leading the Charge in Mobile Payments?

PayPal made a big splash, saying that it now has commitments from 16 major retailers to roll out PayPal at the register. Additionally, it said it is partnering with four software providers to gain access to 50,000 small- to medium-sized merchants. Meanwhile, May 26 was exactly a year since Google launched its mobile wallet. So, you ask, which large technology company is winning the race to gain the hearts and wallets of consumers and retailers? Pretty clearly, it’s neither.

Mobile Devices Now Make Up About 20 Percent of U.S. Web Traffic

Mobile Web browsing continues to take off, with smartphones and tablets accounting for 20 percent of Web traffic in the U.S. and Canada, according to a new report. The analysis, from online advertising network Chitika, finds that those stodgy old PCs still produce just under 80 percent of Web traffic, with smartphones accounting for 14.6 percent and tablets making up 5.6 percent. Other findings of note, Windows Phone now accounts for a third as much traffic as BlackBerry devices. Undoubtedly its market share is far less than that, but its more powerful browser and larger screen likely make it more conducive to Web surfing.

Dish Network Doesn’t Want to Blow Up TV. It Wants to Pay Less for It.

Does Charlie Ergen really want to blow up the TV business, using his ad-skipping “Auto Hop” feature? Like everyone else in America, Ergen likes TV, a lot. He just wants to pay less to watch it.

TV programmers have been able to push up the price for their shows, year after year, even as the audience for those shows gets smaller and smaller. Their latest move: Convincing pay-TV operators to pay them “retrans” fees for the four broadcast networks, which are theoretically supposed to be available to anyone in the country, free of charge. The pay-TV operators have been taking those fees and passing them along to consumers, because it’s easier to do that than anything else. And in that context, Ergen’s ad-skipping feature makes a lot of sense, because it freaks the networks out, for obvious reasons. So if the courts let it stand, then Ergen finally has real leverage when it comes to fees: If the networks won’t lower them, he’ll torch their ads.

Facebook shareholders express anger, confusion about botched IPO

A week after Facebook shares made their debut, the details of what went wrong with the sale are still unclear.

Facebook is under fire for misjudging demand and pricing the stock too aggressively. Morgan Stanley, the lead IPO underwriter, has been accused of lowering its price estimates at the last minute but only sharing the information with select clients. Technical glitches on the Nasdaq exchange confused investors, who didn’t know the status of their bids. On May 24, during a conference call with its brokers, Morgan Stanley said it would review its orders from the stock’s opening day and compensate investors who overpaid, the Associated Press reported. But the firm hasn’t addressed the more disturbing charge that it withheld information from the public that it may have been required to reveal under U.S. securities law. The outrage from individual shareholders has manifested itself in numerous lawsuits.