News - Wireless

VeriSign on Tuesday announced that it has sold its minority stake in mobile-entertainment joint venture Jamba to partner News Corp. for approximately $200 million.

The sale bumps News Corp.' unit Fox Mobile Entertainment's share of Jamba from a 51 percent stake to full ownership. And it enables VeriSign to focus on its core Internet infrastructure business, according to Jim Bidzos, the company's interim CEO. VeriSign runs the master database for such domains as .com and .net.

The joint venture was announced two years ago, when Rupert Murdoch's media company acquired a controlling stake in VeriSign's mobile-ringtone subsidiary, Jamba, for $188 million.

That deal propelled News Corp. into one of the world's largest mobile-entertainment companies, providing through Fox Mobile Entertainment Jamba's ringtones, mobile wallpaper, and other such offerings.

Verizon Communications suffered a major blow in its patent battles on Monday, when a federal court ruled that cable company Cox Communications had not infringed on its patents.

The telecommunications giant has accused Cox of violating six of its patents related to Internet telephony. But a jury for the U.S. District Court for the Eastern District of Virginia decided against Verizon on all six patents.

Verizon settled a similar suit against digital-phone service provider Vonage last year, squeezing about $117.5 million from the troubled provider of voice over Internet Protocol, or VoIP. Against Cox, it had been seeking past damages of $404 million.

Many analysts and experts believed that Verizon had been emboldened by its Vonage patent battle and was looking to go after bigger players, such as cable providers. Companies such as Cablevision, Comcast, and Time Warner Cable have been offering VoIP services for the past few years. And they've been very successful in converting millions of Verizon customers to their service.

But with this latest court decision, it looks as if Verizon may have to rethink its legal strategy. The company recently reached a deal with Comcast in which both companies agreed not to sue each other for a period of five years for any patent infringement. But there had been speculation that Verizon might target Time Warner Cable and Cablevision.

"Despite the decision, we believe our patents were infringed," Verizon said in a statement. "We will continue to innovate and protect our intellectual property."

The company also told The Wall Street Journal that it hasn't decided whether to appeal the decision.

A Google employee surfs the Web with his Android phone.

(Credit: Stephen Shankland/CNET News)

Most of us will have to wait until October 22--or later, given that T-Mobile sold out--but if you have the right connections, you can get an Android phone now.

Google co-founder Larry Page flashed his Android phone briefly in a meeting two weeks ago with reporters, but they're trickling farther down the ranks at the Internet giant, too.

I snapped this shot of one Google employee surfing CNN.com with his Android phone while waiting for his chief executive, Eric Schimdt, to talk about energy at a San Francisco speech last week.

Android is the Linux-based open-source operating system Google created in partnership with several other companies. T-Mobile is selling the first Android-powered phones, the G1, but other manufacturers are expected to join in 2009.

Maybe iPhone users won't have to covet one of those shiny new features in Google's Android operating system after all: Google Maps Street View.

The driver's-eye view is a prominent part of the first Android phone, T-Mobile's G1, which goes on sale October 22. But according to Mac Rumors on Monday, Apple has snuck Street View into the iPhone 2.2 firmware beta release.

Other new features described in the report include the ability to disable the typing autocorrect feature and the inclusion of 461 small icons called Japanese emoji characters.

The iPhone 2.2 firmware beta release is not expected until later this month.

Embedded Wi-Fi chips could end up in almost a billion consumer electronics devices by 2012, according to market researcher In-Stat.

In-Stat said that more than 294 million consumer electronics devices with Wi-Fi shipped in 2007. But that number is quickly growing and will likely reach 1 billion by 2012. The fastest-growing embedded Wi-Fi segment is mobile handsets. By 2011, dual-mode cell phones will surpass PCs as the largest category of Wi-Fi devices, the In-Stat report said.

Several factors are driving adoption. Over the past few years, prices on Wi-Fi hardware have come way down. And the battery life for devices using Wi-Fi has improved dramatically, making it possible to embed Wi-Fi in handheld devices like cell phones. Today, many smartphones, like Apple's iPhone, come equipped with Wi-Fi.

Digital TVs also are expected to use Wi-Fi in the future, the report said. Today only a handful of TVs are capable of connecting to the Internet via Wi-Fi.

Ethernet is currently the preferred method for attaching TVs to the Internet, according to my colleague David Katzmaier who reviews TVs for CNET. The main reason is that streaming video over Wi-Fi is buggy. Ethernet is simply more reliable. The other issue is there isn't a lot of content that can be streamed from the Internet to TVs. That could soon change as services like Hulu, Netflix, and Youtube will likely be integrated into some TVs starting next year.

That said, wireless technology could be used to connect TVs to various devices like set-top boxes and DVD players in an effort to eliminate cords. The only cord needed would be the power cord.

But when you're talking at such short distances, Bluetooth is another technology that could be used. Katzmaier isn't aware of Bluetooth integrated into TVs today, but he said he could see it being used for things like wireless surround speakers and remote controls. It could even be used to integrate cell phones into the TV experience, such as providing caller-ID on TV screens.

As a New Englander, industry analyst, and amateur technology industry historian, I've always had a soft spot in my heart for local networking vendor Enterasys.

(Credit: Enterasys Networks)

For those of you who aren't familiar with Enterasys, the company is a direct descendent of Cabletron, a networking pioneer famous for hubs, an antipathy for internal meetings, and a wacky macho subculture. Cabletron spun off its product groups in 2000, leading to the creation of Enterasys to carry on in networking.

Enterasys has always had great technology, but the company suffered through a number of weak management teams and financial scandals before it was taken private by the Gores Group in 2006. As part of this transition, the company hired industry veteran Mike Fabiaschi as its new president and CEO.

I only met Mike a few times, but he struck me as exactly what Enterasys needed. Mike was extremely candid about the company's weaknesses and challenges, but he was the consummate optimist. He told me that he planned to meet every customer he could, come clean on the company's problems, and work hard to maintain their business. In other words, Mike was going to lead by example, acting as the company evangelist and chief sales officer.

Mike's grit seemed to be paying off. Recently, Enterasys formed a joint venture with Siemens, creating a $5 billion entity focused on unified communications. It appeared that salesmanship and a good old Yankee work ethic were paying off.

Unfortunately, life isn't always fair. Last week, I learned that Mike Fabiaschi died in his sleep on September 22. He was only 53.

Mike was a sales guy's sales guy, but also a straight shooter that you couldn't help but like. My heart goes out to his family and the entire Enterasys organization, which has named Mark Stone of Gores as interim CEO.

Porn on a plane? Not if you're flying Delta Air Lines.

(Credit: Delta Air Lines)

The airline, which plans to launch its in-flight Wi-Fi service later this year, has changed course on the controversial issue and now says it will block inappropriate Web sites from its Internet service, according to an article published Friday by the Atlanta Journal-Constitution.

Previously, Delta said its flight attendants would handle situations on a case-by-case basis if passengers were viewing pornography in-flight. But now the airline says it's taking a different approach after receiving feedback from customers and flight attendants. The company is currently working with wireless provider Aircell to come up with a filter to block the inappropriate content, the newspaper said.

The question of what to do about porn-viewing passengers has been brewing for months. In September, American Airlines flight attendants and their union asked the airline to consider blocking or filtering traffic on its in-flight service. But American's management has resisted requests for putting any restrictions in place.

American Airlines and Delta are two of several airlines testing in-flight Wi-Fi. American has been offering the service on a limited basis since August 20 on some flights between New York, Los Angeles, and San Francisco, and between New York and Miami. Delta plans to have its entire domestic fleet of 330 aircraft outfitted with Wi-Fi by the middle of next year.

While Delta may be trying to appease the masses with its plan to filter traffic, that too is not without controversy. Earlier this year, the Denver International Airport took a lot flak for blocking access on its free Wi-Fi network to Web sites that officials deemed offensive. The filtering technology used there has been criticized for blocking nonporn sites such as Vanity Fair magazine and gossip site Perzhilton.com.

A Delta representative tried to reassure the Atlanta Journal-Constitution that the technology it plans to use would "limited in scope."

I understand that people don't want to be subjected to unpleasant images on their neighbor's laptop while en route. Believe me, I'd be annoyed too if someone next to me was surfing for porn on a long trip. But the fact is that it's difficult to limit or filter access to the Internet when you're asking people to pay for the service, especially when that filtering traffic may block some very legitimate sites. The Aircell service costs $9.95 on flights of three hours or less, and $12.95 on flights of more than three hours.

What's more, I'm not sure that porn on planes is really a major problem. People have certainly had access to racy magazines and DVDs for years, and in all my years of flying I've never once sat next to someone who even pulled out a Playboy magazine.

My gut feeling is that most people would be too embarrassed to call up their favorite porn sites while sitting elbow to elbow with other people. Of course, there could be that one in a million guy who can't make it from New York City to San Francisco without checking his favorite site. But filtering everyone else's traffic just to prevent this rare instance seems like overkill.

Certainly, there are lots of people who get drunk on flights. And I'm not a big fan of sitting next to someone who smells like a brewery and pukes in the little baggy they put in the seatback. But you don't see airlines banning booze. Right?

Apple's iPhone 3G apparently created a summertime switch itch: 30 percent of all the smartphone's buyers bailed on their existing carriers in order to purchase the device, according to an NPD Group report released Monday.

AT&T has been the iPhone 3G's exclusive carrier in the U.S. since the smartphone was released in June.

According to the report, which covers June through August, 47 percent of those switching to AT&T to get the iPhone 3G came from Verizon Wireless, 24 percent from T-Mobile, and 19 percent from Sprint.

"While the original iPhone also helped win customers for AT&T, the faster network speeds of the iPhone 3G (have) proven more appealing to customers that already had access to a 3G network," Ross Rubin, NPD director of industry analysis, said in a statement.

By contrast, about 23 percent of consumers overall switched carriers from June through August.

During that same time frame, the smartphones with the highest unit sales were Apple's iPhone 3G, followed by Research In Motion's BlackBerry Curve, RIM's BlackBerry Pearl, and the Palm Centro, according to NPD.

Prior to launching its 3G version, Apple's iPhone accounted for 11 percent of the smartphone market in 2008. But since the 3G's launch, that figure has risen to 17 percent of the market since the start of the year.

"The launch of the lower-priced iPhone 3G was a boon to overall consumer smartphone sales," Rubin said.

From Verizon CIO Shaygan Kheradpir's 38th floor apartment on the Upper East Side of Manhattan with panoramic views of the East River, I saw first-hand the fruits of the company's $23 billion gamble to build a new fiber network directly to customers' doorsteps and a glimpse into where the strategy will lead next.

Kheradpir had invited a handful of journalists to his swank pad to show off the latest enhancements to Verizon's Fios TV service. The new features, which include everything from new widgets for getting weather and local traffic to a specially designed ESPN fantasy football application to remote control of DVRs, are rolling out across Verizon's Fios footprint right now with New York, Verizon's largest market, expected to get the enhancements starting October 9th.

While its cable competitors look for ways to curb their customers' usage of their networks by either slowing down certain applications or metering usage, Verizon plans to spend about $23 billion through 2010 to take fiber directly into people's homes to actually increase the amount of bandwidth people consume. The company also recently spent $9 billion on 700Mhz spectrum in the Federal Communications Commission's auction, which it plans to use to build a new fourth-generation wireless broadband network, again with the hope that people will choose bandwidth-intensive applications.

Verizon plans to spend about $23 billion through 2010 to take fiber directly into people's homes.

(Credit: Verizon)

Verizon's commitment to betting big on bandwidth could cement its dominance in the communications market for years to come. But these bets don't come cheap. And as network operators find themselves in tighter competition with Internet giants such as Google, they could end up simply becoming dumb pipe providers, competing on speeds and feeds rather than services.

There's no doubt that service providers are caught between a rock and a hard place. Not only must they compete with each other, but they also have to think differently and innovatively to compete against new Internet competitors, who are using the service providers' high-speed infrastructures to deliver competing voice and video services.

While other service providers, like AT&T and the cable companies, have tried to deliver new services and enhancements by incrementally upgrading their infrastructure, Verizon has gambled all its chips by spending billions of dollars on fiber infrastructure that it believes will future-proof its network.

Verizon's Kheradpir admitted that Verizon's fast fiber pipes will likely be used to deliver new applications and services that Verizon may never be able to monetize. But the super fast infrastructure also provides Verizon with a blank canvas that its own developers can use to create new services.

"The network that Verizon has created with Fios is a dream for software developers," he said. "It's what we all dreamed of when we were in school. It's basically an unlimited pipe that can be used to develop whatever you want."

The main thing the ultra-fast fiber network enables is the ability to deliver rich content, namely high-definition video. According to J.D. Power and Associates, the number of households that report viewing high-def programs has nearly doubled since 2007, reaching 55 percent this year.

Kheradpir also believes that HD doesn't stop with TV. People will increasingly want high-definition Web video and high-definition digital music. That's why Verizon is promising at least 100 HD channels as part of its Fios service in places like New York City. But high-definition content eats up bandwidth, making it difficult for many of Verizon's competitors to keep up with demand. Verizon's competitors are also introducing enhanced offerings. Time Warner Cable, which competes with Verizon in New York City and the surrounding area, is also pushing for 100 HD channels by the end of the year.

Still, Kheradpir believes Verizon is better positioned with its all-fiber network to stay ahead of the HD curve.

Building the network at home
As home networks increasingly look more like corporate local area networks, Kheradpir also sees an opportunity for service providers to manage their networks. He calls this the "consumerization" of IT. The difference between networks in the home and in the office is that instead of shuttling corporate data back and forth, people are sharing digital pictures and music, watching high-definition video and using VoIP services to stay connected to family and friends. And this basic difference means that service providers have to think differently about serving these customers.

"IT in the corporate environment is all about improving efficiency," Kheradpir said. "But in the home, it's about improving quality of life."

Verizon CIO Shaygan Kheradpir

(Credit: Verizon)

And that is where Kheradpir believes Verizon can add value. Not only can it provide the basic infrastructure, but it can build the applications that ride over this infrastructure to improve users' experiences. This means allowing people to access their digital content from wherever they are on whatever device they want, he explained. And because few people have IT managers living with them, it also means hiding the complexity and management of the technology in the network far from the end user.

Verizon has worked this concept into its latest Fios TV upgrade. Its new set-top boxes will automatically discover all connected devices whether they're wired or wireless, and it will allow people to view photos or video or listen to music from any device on the network. This means that you can share pictures from a PC hard drive on a computer. Eventually it could also allow people to listen to the digital music that's stored at home on their PC while on their cell phones.

"The consumer doesn't want to think about where they store their content," Kheradpir said. "Our view is that people should leave their pictures and music where it is. And we will extend the network to get it for them."

The latest version of Fios TV will also include remote DVR control. Initially, this feature will allow users to control their DVR from an Internet-connected PC. But the company also demonstrated how it can be done via a cell phone. Using a mobile Web site on phones such as the LG Voyager and the enV, subscribers will be able to set recording schedules, search for recorded shows, and enable parental controls.

In addition to needing someone to manage their home "IT" needs, Kheradpir believes that consumers want more personalized content. Again, a high-speed network can help facilitate this. For example, Verizon has added widgets to its latest Fios upgrade that allow third-party developers to create applications for personalized local weather, traffic, and horoscopes. One Verizon engineer even created a Facebook application so that people can access status updates on their TV screens.

Verizon has also included a "What's Hot" application that anonymously keeps track of what people are viewing to show people the most popular TV shows in their areas. Kheradpir said that Verizon is able to offer more personalized services because of the bi-directional nature of its network. Not only can Verizon broadcast content to its subscribers, but it can collect information and allow for individual interaction to provide consumers with a more personalized experience.

Seeing returns
So far, Verizon's gamble appears to be paying off. In areas where it sells Fios TV, Verizon has been able to steal customers from cable and satellite providers. And as of the end of June this year, Verizon had increased its Fios TV penetration rate to 19.7 percent from 13.3 percent in 2007. In total, the company has 1.4 million Fios TV subscribers.

Verizon is also getting high marks from customers. In a recent J.D. Power and Associates survey, Verizon Fios TV ranked higher than cable or satellite in terms of customer satisfaction. Specifically, customers said Fios TV's picture clarity and programming exceeded their expectations. AT&T, which provides its U-Verse service, also got high marks for its IPTV offering.

Verizon's goal is to attract 4 million customers by 2010, giving it a market penetration of about 25 percent. And it hopes to attract about 7 million Fios Internet customers, for a penetration rate of 35 to 40 percent.

But Fios is just the beginning. Verizon is also in the early stages of planning its fourth-generation wireless network that will be used to deliver the connected experience to wireless devices. While Kheradpir admits it is still in the early days on the wireless front, he sees it as an important piece of the strategy.

"Wireless is a key lever," he said. "From the time we wake up until we go to bed we generally have a wireless device within reach. So it makes sense to extend this strategy to those devices as well."

Indeed, everyone in the communications sector sees wireless as the next major frontier. Verizon's cable competitors Comcast and Time Warner Cable have invested in the new Clearwire joint venture, which will combine Sprint Nextel's WiMax assets with Clearwire's to build a next generation wireless network. Google has also made various wireless investments. Verizon has clearly staked much of its future on a high-capacity wired infrastructure. But it remains to be seen how aggressively the company will bet on its next-generation wireless network.

Sprint Nextel has made headlines all week as it's started lighting up its first 4G wireless network using a technology called WiMax. But what exactly is WiMax? And how does it fit into the future of wireless? Here's a primer to help you sort it out.

Sprint was the first major carrier in the world to announce massive deployment of mobile WiMax in 2006. The company said it would use the technology to build a fourth-generation, or 4G, wireless network that would provide true wireless broadband.

But the hyped technology hasn't been without controversy. Fast forward to the present, and Sprint's former CEO Gary Forsee, who staked his reputation and ultimately his job on WiMax's success, was forced to resign after investors protested that the company needed to focus more on keeping current 3G customers instead of building a new 4G network.

Now, Sprint is waiting to spin off its WiMax assets into a joint venture with Clearwire to help ensure that its dream of a nationwide WiMax network is realized. In the meantime, it's moving forward with initial network deployments. And this week, it launched the first mobile WiMax network called Xohm in Baltimore. More cities will follow over the coming weeks and months.

Next week, Sprint and its ecosystem of WiMax suppliers is planning a major coming out party for Xohm. With all the buzz swirling around WiMax, I thought it would be a good time for a little refresher on what the technology is and how it compares to existing technologies as well as other 4G technologies on the horizon.

What is WiMax?
The acronym WiMax stands for Worldwide Interoperability for Microwave Access. It's an IP-based wireless technology that can accommodate fixed, portable, and mobile usage models, according to the WiMax Forum. It's considered a promising next-generation wireless technology, because it supports high data rates and has a long transmission reach. Before it was standardized in 2004, there were many non-standard versions of the technology being developed throughout the world, including Korea's WiBro technology.

What can WiMax be used for?
The primary purpose of WiMax is to offer wireless broadband. Originally, it was used to provide broadband to places where there was no wired infrastructure. This is how most of the 350 deployments throughout the world use the technology today.

A mobile version of the technology was approved in 2005 by the IEEE standards body. This version, known as 802.16e, allows the technology to be embedded into laptops, tablet PCs, smartphones, and consumer electronic devices like digital cameras so they can connect to the Internet via WiMax while in motion. So for example, if you're walking down the street, riding on a train or traveling in a car, the 802.16e version of the technology will allow you to still access the Net.

The WiMax Forum claims the technology can deliver 40 Mbps of capacity per channel, which can then be split "among hundreds of businesses, thousands of residences, and thousands of mobile Internet users." Specifically, the group believes the technology can offer 30 Mbps of capacity within a typical cell radius of up to 3 kilometers.

People have called WiMax Wi-Fi on steroids. How does WiMax differ from Wi-Fi?
WiMax and Wi-Fi are both Internet protocol-based wireless technologies. And they both provide high-speed wireless access to the Internet. But that is pretty much where the similarities end.

Wi-Fi was designed to provide indoor wireless connectivity over relatively short distances. The technology is mostly used for home networks or to provide Internet connectivity in small public places like a coffee shop or library. Although there have been some attempts to "mesh" the technology and use it outside for citywide deployments. But because of its short range, these deployments require a lot of radios.

Another major differentiator between WiMax and Wi-Fi is that Wi-Fi uses unlicensed spectrum. WiMax uses licensed spectrum, typically in the 2.5MHz range. WiMax is also designed to be a carrier grade technology so there is more reliability and quality of service built into the technology than is typically available with Wi-Fi.

How does WiMax compare to 3G cellular phone services?
Like WiMax, 3G services transmit over long distances. And these services also require spectrum licenses. But in general, 3G cellular networks are slower than WiMax. What's more, these networks were fundamentally built for voice traffic. WiMax has been developed for data.

How do the speeds of 3G services compare with WiMax?
Verizon Wireless and Sprint Nextel have built their networks using a technology called EV-DO. Today's networks, which use a version of the technology called Revision A, offer theoretical download speeds of about 3.1 Mbps. But actual downloads are between about 400 Kbps and 800 Kbps.

AT&T uses a different technology, based on UMTS and called HSPDA or High Speed Data Packet Access. It can theoretically deliver download speeds of about 3.6 Mbps. But in the real world, speeds are closer to 400 Kbps to 700Kbps.

That said, the next generation of 3G for both technologies is on its way. And it offers faster speeds. Verizon and Sprint can upgrade to EV-DO Revision B, which offers a theoretical maximum download speed of more than 9 Mbps. Actual peak download speeds would likely fall around 4.0Mbps.

AT&T is currently upgrading its 3G UMTS network to HSUPA. And AT&T executives have said that as soon as next year its network could offer theoretical download speeds up to 20 Mbps. The actual speed is likely to be around 4 Mbps and 6.6 Mbps.

By comparison, WiMax can deliver theoretical download speeds to individual users around 10 Mbps to 20 Mbps. But most people using a mobile WiMax service will get between 2 Mbps and 4 Mbps of bandwidth.

Why do theoretical speeds differ from actual speeds?
There are several variables to consider when it comes to calculating performance of wireless networks. All wireless networks are a shared medium, meaning the more users on the network, the less total capacity is available for individual users. Also physics plays a role. And distance is always a factor when it comes to wireless technology. Typically, the further a wireless signal travels, the weaker it becomes, which translates into slower bandwidth speeds.

How does WiMax stack up against other 4G technologies, such as Long Term Evolution or LTE?
WiMax and LTE are the leading technology candidates for 4G networks of the future. And they actually have more similarities than differences. Both technologies are IP-based and as a result are designed for data rather than voice. And because they are IP-based they will both be able to offer consumers a true mobile broadband experience on portable devices like smartphones and consumer electronics.

Both technologies use the same fundamental technology, OFDM or orthogonal frequency-division multiplexing. So while GSM and CDMA were bitter rivals in the 2G and 3G cellular wars, WiMax and LTE are more like siblings, sharing a common parent. This means that companies, such as Motorola and Nokia, will have an easier time developing products and equipment for either network because they can re-use some technology built for one technology.

Who is deploying mobile WiMax in the U.S.?
The WiMax Forum lists more than 350 WiMax deployments throughout the world already. But most of these are fixed deployments in developing markets where WiMax is used to provide broadband to areas without fixed line infrastructure.

In the U.S. Clearwire and Sprint Nextel are building WiMax networks that will serve both mobile customers as well as fixed customers. Earlier this year, the two companies agreed to join forces to deploy a nationwide WiMax network. The companies have raised $3.2 billion in investment from several companies including, Intel and Google as well as cable providers Comcast and Time Warner Cable.

Sprint just launched the Xohm network in Baltimore this week. It will be lighting up other WiMax cities such as Washington, DC, Chicago, Philadelphia and Dallas, in the coming months.

Who is deploying LTE?
The world's largest wireless operators have committed to LTE. AT&T and Verizon Wireless in the U.S. and Vodafone, which is the largest operator in the world, said they'll use LTE. Verizon Wireless has already said it will use its newly acquired 700 Mhz spectrum to build the network.

LTE is still in its early days of development, which means it won't likely be deployed en mass until 2011 or 2012.

As for speeds, LTE is expected to be faster than the current generation of WiMax. But the IEEE is working on a new version of WiMAx called 802.16m, which should be ratified in 2009, that will provide faster speeds.

Are there any WiMax devices available today?
There are some, but not many. That said, several large companies such as Intel, Nokia, and Motorola have thrown their weight behind WiMax. And they promise to launch new components and devices to support the technology. But so far, devices with WiMax have been few and far between. Nokia has announced the N810 "Portable Internet Tablet." Samsung has announced a WiMax-capable Q1 Ultra Premium Mobile PC. And Intel will soon be including WiMax in its laptop chipsets, which should help seed the market.