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November 25, 2009 6:38 AM PST

Ericsson wins Nortel's North American GSM unit

by Lance Whitney
  • 2 comments

Ericsson is slowly building its wireless business by scooping up parts of struggling Nortel.

Ericsson announced Wednesday that it has won a bid to buy Nortel Networks' North American GSM business for $70 million in cash. The Swedish communications giant went into the deal with a partner, Austria-based Kapsch CarrierCom, which itself spent $33 million to buy Nortel's GSM operations in Europe and Taiwan.

This marks the second major deal in recent months between Ericsson and Nortel. In July, Ericsson won another bid to pay $1.13 billion for Nortel's CDMA and LTE wireless technologies.

GSM (Global System for Mobile communications) is one of two technologies used for mobile phones. It's the standard in Europe and is dominant around the world, while CDMA (Code Division Multiple Access) is more common in the United States. In recent years, however, GSM has grabbed a larger footprint among North American carriers.

Ericsson already holds a strong slice of the global GSM market, especially in Europe, and has been eager to expand its grasp in North America.

On its end, Nortel has gradually been selling its wireless operations as a way to stay afloat in the midst of declining business and rising debts after declaring bankruptcy almost a year ago. On Tuesday, the company announced it would sell its Metro Ethernet operations to telecom equipment maker Ciena.

As part of the purchase, Ericsson will bring on more than 350 Nortel employees in North America. With the addition of Nortel's business and a recent deal with Sprint, North America will become Ericsson's biggest operation, said the company, jumping to 14,500 employees from just 5,000 at the beginning of 2009.

Ericsson noted that its entire North American business captured revenue of around $2.7 billion in 2008, mostly from sales of GSM and WCDMA (Wideband CDMA) equipment and services. Nortel's North American GSM business generated around $400 million in 2008.

No date was given for closing the deal, which is subject to the usual regulatory approvals in both the U.S. and Canada.

November 24, 2009 7:12 AM PST

Nokia trims R&D staff in Japan

by Lance Whitney
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Nokia announced Tuesday that it will lay off about 220 employees from its R&D division in Japan, a bit more than 1 percent of the company's worldwide R&D workforce.

The layoffs are part of the company's efforts to align its global research & development operations with new products. Nokia Siemens Networks, the network equipment maker owned by Nokia and Siemens, will not be affected by the reorganization, said Nokia.

Just last week, Nokia said that it will slash 330 positions in total from its R&D units in Finland and Copenhagen as part of the global revamp.

Though Nokia is still the world's leader in smartphone shipments, it has been undercut lately by competition from Apple and Research In Motion. Recent reports have pegged a decline in market share, while Nokia's third-quarter results showed a net loss and lower sales.

November 23, 2009 7:09 AM PST

Dell Mini 3i smartphone ready for China launch

by Lance Whitney
  • 9 comments

Dell and China Mobile on Monday offered up more details about the Dell Mini 3i smartphone, which will be going on sale in China later this month.

Dell's Mini 3i smartphone

Dell's Mini 3i smartphone

(Credit: Dell)

The Android-based device, Dell's first smartphone, will support e-mail, instant messaging, and both MMS and SMS messaging. It will include Bluetooth and GPS capabilities and a Mini USB connector, and will accommodate Micro SD cards up to 32GB.

The quadband GSM/EDGE phone weighs 105 grams and includes a 3-megapixel camera with zoom, auto-focus, flash, video capture, and photo-editing capabilities. The touchscreen has a 640x360 resolution. Dell had already confirmed earlier this month that the Mini 3i would have a 3.5-inch high-definition screen.

Under the hood, the device is running China Mobile's OPhone software, a customized version of Google's Android operating system.

Like other Android phones, the Mini 3i will provide access to an online store, in this case, China Mobile's Mobile Market, where people can download apps, games, wallpaper, and ringtones. Users will be able to run different widgets on the home screen to keep on top of the news, weather, stock prices, and sports scores.

Dell said it has been collaborating with China Mobile for about a year on the development of the phone. The two companies teamed up earlier in the year to integrate a 3G data card for Dell's Inspiron Mini 10 netbook for the Chinese market. With more than 500 million customers, China Mobile is the world's largest mobile service provider, according to Dell.

Dell was initially mum on details when it first mentioned the Mini 3i about 10 days ago. But the company did reveal that China Mobile and Brazil's Claro would be the first global providers to carry its new smartphone.

Like China Mobile, Brazil's Claro boasts a huge subscriber base, with 42 million customers in Brazil alone. By selling the Mini 3i through both providers, Dell can potentially capture a much larger mobile audience than it could through any U.S. carriers.

Arriving in China Mobile stores by the end of November, the Mini 3i will shortly thereafter be sold directly from Dell. For those interested in color schemes, the Mini 3i will be available in Red Passion and Oiled Bronze--the image below shows the Red Passion treatment:

Dell Mini 3i smartphone

(Credit: Dell/China Mobile)
Originally posted at Crave
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
November 20, 2009 6:20 AM PST

Nokia to lay off up to 330 R&D staffers

by Lance Whitney
  • 12 comments

Nokia said Friday that a streamlining effort could result in the elimination of as many as 330 positions from its research and development staff, or about 2 percent of its global R&D workforce.

Nokia R&D

Microelectronics research at Nokia.

(Credit: NOkia)

The changes will likely hit up to 230 workers in the company's Oulu site in Finland and roughly 100 at its Copenhagen site. Nokia said it plans to offer voluntary severance packages to the affected workers and to find alternative jobs for as many people as possible.

The company currently employs more than 17,000 workers in its R&D business. It has 2,000 employees at the Oulu facility and 1,000 in Copenhagen.

Though Nokia still holds the top spot in the smartphone arena, its dominance has been eroded by competition from the likes of Apple and Research In Motion. A recent In-Stat report found that Nokia's share of the smartphone market had dropped to 35 percent in this year's second quarter compared with 50 percent in the prior year's quarter.

Another report from Strategy Analytics revealed that Apple had surpassed Nokia in cell phone profits during the third quarter, the first time that Nokia had fallen to second place.

Nokia's third-quarter results showed a net loss of $832 million, while sales dropped around 20 percent. Nokia Siemens, the network equipment maker run by Nokia and Siemens, has also been a drag on its owners, recently announcing its own layoffs and cost cuts as a result of its weak performance.

November 17, 2009 9:27 AM PST

Survey: Third of teens text while driving

by Lance Whitney
  • 55 comments

Despite increased publicity over the dangers of texting while driving, many teenagers (like many adults) have yet to get the message.

A third of cell phone users aged 16 and 17 admitted to texting while driving, according to focus groups and a report released Monday by Pew Research. For the report, "Teens and Distracted Driving," Pew surveyed 800 kids aged 12 to 17 about their cell phone use in the car. Teens 16 and 17 years old were asked about their role as drivers, while younger ones were questioned about their experiences as passengers.

Of all teens surveyed, 75 percent said they own a cell phone and 66 percent of those text. Half of teens 16 and 17 who own a cell phone said they've talked on the phone while driving.

Among passengers, 48 percent of teens 12 to 17 said they've been in a car while the driver was texting, and 40 percent have been in a car when the driver used a cell phone in a way that put everyone in danger.

Though some teen drivers said they only text at a red light or will hand the phone over to a passenger to text, others didn't seem to care about the risk.

Pew found one high school boy who said he thinks texting while driving is "fine," adding, "I wear sunglasses so the cops don't see [my eyes looking down]." A high-school girl admitted that she texts "all the time," and that "everybody texts while they drive...like when I'm driving by myself I'll call people or text them cause I get bored."

Teens and Distracted Driving (Credit: Pew Research)

Many teens expressed concern about being in a car while the driver is talking or texting on a cell phone, noted Pew. But in several cases, the driver was the teen's parent.

"I am concerned because when my mom drives she talks on the phone a lot so she is still alert but she can get kind of dangerous," reported one young teen. Another boy said, "Yeah [my dad] drives like he's drunk. His phone is just like sitting right in front of his face, and he puts his knees on the bottom of the steering wheel and tries to text."

This latest Pew research confirms a deluge of other studies about the dangers of cell phone use while driving. One study by the VirginiaTech Transportation Institute found that truck drivers who texted were 23 times more at risk of a "crash or near crash event" than "nondistracted driving."

A Vlingo survey from May discovered that 26 percent of mobile phone users said they texted while driving. A test conducted by Car and Driver magazine showed dramatically slower reaction times by two drivers who tried to brake while texting.

Early Pew research from 2006 (before texting became widespread) found a quarter of adult cell phone owners felt that using their phone compromised their ability to drive.

Certain states, such as California, Connecticut, and Oregon have passed laws banning texting or talking on a mobile phone while driving. The U.S. Senate is currently looking at a bill that would give federal dollars to other states who pass similar laws.

In late September, Transportation Secretary Ray LaHood held a summit to discuss the issue of distracted driving. Around that time, President Obama signed an executive order banning federal workers from texting while driving.

Pew's Internet & American Life Project conducted its survey of 800 teens last summer. Pew and the University of Michigan also held nine focus groups with teens 12 to 18 between June and October to discuss the issue of driving and cell phones. Pew's results included the findings from both the survey and focus groups.

November 16, 2009 6:48 AM PST

Cisco boosts bid for Tandberg to $3.41 billion

by Lance Whitney
  • 2 comments

Cisco Systems has bumped up its buyout offer to $3.41 billion for video conferencing company Tandberg.

The network giant's initial bid received a thumbs down from most of Tandberg's shareholders, who felt the initial $3 billion offer undervalued the company.

So far, more than 40 percent of Tandberg's stockholders, which includes investment firm OppenheimerFunds and Norwegian government pension fund Folketrygdfondet, have pre-accepted the new offer.

Cisco announced on October 1 that it was pursuing a $3 billion cash takeover of Tandberg, a major global supplier of video conferencing equipment with dual headquarters in Oslo, Norway, and New York City.

Increasingly important to companies looking to cut travel costs, teleconferencing is considered a growth industry. Cisco wants a bigger piece of that pie, and analysts didn't expect it to give up on Tandberg too easily.

The new bid expires December 1. Cisco said that if the bid isn't accepted by that deadline, it will withdraw the bid and look at other ways to expand its reach in the video conferencing market.

Cisco has been on a tear lately buying smaller niche companies, taking over a few firms earlier in the year and recently announcing plans to gobble up security software firm ScanSafe and wireless equipment maker Starent Networks.

November 13, 2009 6:49 AM PST

HTC expects rough fourth quarter

by Lance Whitney
  • 9 comments

After a string of weak quarters, mobile phone maker HTC is eyeing more of the same for the current quarter but is hoping for better results next year.

The Taiwan-based company expects sales for the fourth quarter to drop to between 40 billion and 42 billion Taiwan dollars (between $1.23 billion and $1.3 billion), around 15 percent lower than in last year's fourth quarter.

Competition from other smartphones, especially the iPhone 3GS released this summer, has tempered demand for HTC's products, which include the Hero, Droid Eris, Tilt 2, MyTouch 3G, Snap, and Ozone.

HTC's (from left) Hero, Droid Eris, Tilt 2, and Pure.

(Credit: HTC)

Prices on smartphones have also dropped this year and are likely to continue to fall, putting further pressure on HTC, which trails the market in fourth place behind Nokia, Apple, and Research In Motion.

The company's third quarter continued its down streak, with full results reported earlier this week. For the quarter the ended September 30, HTC watched its sales drop 10 percent to 34.01 billion Taiwan dollars from last year's third quarter. Earnings fell 18.5 percent to 5.7 billion Taiwan dollars.

In a conference call this week, HTC outlined its current business and forecast for the near term. The U.S. market for HTC 's Android smartphones has enjoyed strong growth, the company said, but European sales remain sluggish due to a lack of brand awareness.

Market researcher IDC recently reported that HTC sold 2.4 million smartphones in the third quarter, a gain of 14.7 percent over last year's third quarter. But Android sales for that quarter were lower than expected, mostly due to tougher competition from other manufacturers and are likely to stay down in the fourth quarter.

The company has been striving to increase consumer awareness of its brand in both the U.S. and Europe, a goal it plans to push further next year by boosting its marketing budget.

For the holiday-shopping season, HTC will be trying to grab more shelf space and sales for its new Android Hero smartphone, released last month. Beyond that, the company is looking for strong sales volume from its overall line of Android smartphones, including the G1, Magic, Tattoo, and the new Droid Eris.

Despite its new focus on Google's Android operating system, HTC said that its Windows Mobile phones remain vital products. The company still ships more Windows Mobile smartphones than any other manufacturer and is looking to enhance their performance and touch capabilities in the near term. Hitting U.S. shores next year will be the new HD2 Windows Mobile smartphone, which has already had positive reviews.

November 11, 2009 11:35 AM PST

Powering cell phone towers with wind

by Candace Lombardi
  • 5 comments

Helix Wind's The S322 vertical wind turbine

(Credit: Helix Wind)

Helix Wind announced Wednesday that it's beginning a trial run in Southern California to see if its wind turbines might be useful for powering cell phone towers.

The manufacturer is becoming known for its small vertical-axis wind turbines that can generate electricity with winds as low as 10 mph, as well as its unique business model to finance them.

The pilot program, conducted in conjunction with cell phone tower operator Core Communications, will experiment with whether the turbines powering cell phone towers could also generate surplus energy to sell back to the energy grid.

If they generate enough surplus power, small wind turbines could provide a new source of income for cell phone tower operators as well as a new power source.

Helix Wind's turbines, which will be installed in early 2010, will run for up to three months before being re-evaluated.

According to statistics provided by Helix Wind, there are approximately 3,500 cell phone towers in Southern California, and another 1,000 expected to be added in the next five years to cover consumer growth.

Originally posted at Green Tech
In a software-driven world, it's easy to forget about the nuts and bolts. Whether it's cars, robots, personal gadgetry or industrial machines, Candace Lombardi examines the moving parts that keep our world rotating. A journalist who divides her time between the United States and the United Kingdom, Lombardi has written about technology for the sites of The New York Times, CNET, USA Today, MSN, ZDNet, Silicon.com, and GameSpot. E-mail her at candacelombardi@gmail.com. She is a member of the CNET Blog Network and is not a current employee of CNET.
November 11, 2009 10:42 AM PST

Apple overtakes Nokia in phone profits

by Lance Whitney
  • 36 comments

In the race for mobile phone profits, Apple has overtaken Nokia, according to figures for the latest quarter.

Apple earned $1.6 billion in the third quarter from the iPhone, outpacing Nokia's $1.1 billion cell phone profit to grab the top spot among all mobile phone vendors, said research firm Strategy Analytics on Wednesday.

This is the first quarter that Strategy Analytics has seen Apple surge past Nokia in mobile phone profits, according to Alex Spektor, the author of the research, who spoke with CNET News.

The contest between Apple and Nokia for top phone profits has been tight in recent months. ... Read more

Originally posted at Crave
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
November 5, 2009 1:02 PM PST

Telecom providers announce LTE standard

by Lance Whitney
  • 9 comments

In the battle between LTE and WiMax for wireless broadband, LTE may have just gotten another boost.

A group of leading telecom service and equipment providers, including AT&T, Verizon, Nokia, and Samsung, announced a new standard Thursday for delivering compatible voice and messaging services using Long Term Evolution (LTE) networks.

The standard, dubbed the One Voice initiative, offers a set of technical functionalities that telecommunication companies can use in their LTE services and products to provide both voice and Short Message Services (SMS).

The group of companies setting up One Voice (which also includes LTE proponents Orange, Telefonica, TeliaSonera, Vodafone, Alcatel-Lucent, Ericsson, Nokia Siemens Networks, and Sony Ericsson), see the standard as a way to provide interoperability for broadband voice and SMS services. The goal is to give telecom providers and manufacturers a convenient technical profile for working with each other and save customers from wrestling with different and conflicting LTE technologies.

LTE has been fine at supporting data, which uses IP-based packet switching. But it's faced challenges trying to incorporate traditional circuit-based switching voice and SMS services onto IP-based networks. One Voice is the group's attempt to resolve that issue.

The new specification will use existing functionality known as IP Multimedia Subsystem (IMS), which already defines how to provide data, voice, and other content over an IP-based network. IMS was established by the 3rd Generation Partnership Project (3GPP), a group comprised of telecom industry associations trying to set standards for 3G mobile networks.

"Open collaborative discussions have concluded that the IP Multimedia Subsystem-based solution as defined by 3GPP, is the most applicable approach to meeting the consumers' expectations," said One Group in a statement.

In recent years, LTE has been duking it out with WiMax to be crowned the upcoming broadband wireless standard. In one corner has been telecom giants like AT&T and Verizon, both of which have announced plans to deploy 4G wireless networks using LTE.

In the other corner has been Sprint, which is eyeing a rollout of its own 4G network using WiMax. Sprint owns a majority stake in WiMax provider Clearwire, a wholesale distributor of 4G services. Clearwire recently unveiled a huge WiMax testing sandbox in Silicon Valley where developers could play with the technology.

However, Clearwire has been waffling on the choice between LTE and WiMax. In a recent interview with Dow Jones Newswires, Clearwire CEO Bill Morrow said he would be willing to switch to LTE if helped the company.

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