Nortel cuts jobs as losses widen

Recently there have been rumblings that Nortel is in talks with Motorola to combine their wireless infrastructure businesses. This could be good for both of the companies. Together they would be in a much better position to address current GSM network builds in Europe and other parts of the world where that wireless technology standard is used widely. And at the same time they could better address markets like the U.S. and South Korea, where mobile operators use CDMA technology.

To help curb spending and get the company back on track, Nortel said, it would cut 2,100 jobs. It also plans to relocate about 1,000 workers to places where wages are not as high. At the end of 2007, Nortel said it employed about 32,500 workers. The job cuts should save the company about $300 million a year, but the company said it will also take a onetime charge for the plan of about $275 million.

Nonetheless, Mark Sue, an analyst with RBC Capital Markets, says it could be a long time before Nortel is able to turn things around.

Telecommunications equipment maker Nortel Networks said it will cut more jobs as the company’s losses widen.

Nortel is in a tight spot. The company is facing slowing demand for its traditional telephony gear. Chief Executive Officer Mike Zafirovski, who took the top spot at the company in 2005, has been trying to grow Nortel by focusing on new technologies. But it’s clear the company is struggling. Part of the problem is its balance sheet. But another big problem is that the company literally missed the boat in the 3G wireless equipment market, and as a result has only small market share here in that segment.

“Nortel’s revamped management team is doing the best that they can in our assessment,” he said in a research note on Wednesday. “Unfortunately, the prior management team at Nortel left the company with a very damaged balance sheet. And with limited resources and little currency to afford a major strategic rethink, the company may have to resort to a year of basic blocking and tackling.”

The company’s stock plunged some 13 percent on Wednesday to $9.96 after the company reported that its fourth-quarter earnings declined about 3.7 percent to $3.2 billion. The company reported a loss for the fourth quarter of $884 million compared to a loss of $80 million in the fourth quarter of 2006. The higher losses were due to a tax-related charge, the company said.

The company recognizes its shortcomings and has been focusing on the next generation of wireless technology, namely by developing gear using the WiMax technology. Nortel has also said it’s committed to supplying products for the competing 4G wireless technology called LTE (Long Term Evolution). But network builds using these technologies are still in their early days. In terms of WiMax, Sprint Nextel is the only major carrier in the U.S. to commit to using the technology. And its own financial troubles have called into question whether or not the network will actually get built.

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Apple says it’s not to blame for ‘exploding’ iPhon

“The iPhones with broken glass that we have analyzed to date show that in all cases, the glass cracked due to an external force that was applied to the iPhone,” Apple said in a statement cited by the BBC.

Apple’s
iPhone may be the darling of the mobile-phone industry right now, but some users in France aren’t singing its praises, claiming that the device explodes or cracks without warning.

The European Commission also issued a warning using its rapid-alert system, Rapex, which warns of dangerous consumer products.

As part of its investigation, Apple also looked into complaints of the iPhone battery overheating but again said it found no problems. “To date, there are no confirmed battery-overheating incidents for iPhone 3GS, and the number of reports we are investigating is in the single digits,” according to the statement.

(Credit:
Apple)

France’s trade minister declined to comment on a meeting with Apple about an investigation that the country’s consumer protection agency is conducting into the reports, according to Bloomberg.

Last Tuesday, in response to a European Commission investigation into accusations of overheating and exploding iPhones, Apple referred to its internal investigation, saying, “We are waiting to receive the iPhones from the customers.”

The investigation’s findings don’t mean much to France’s Frank Benoiton, a consumer who said his wife’s iPhone cracked, and it “was not dropped and experienced no unusual shock,” he told the Associated Press.

However, after conducting an internal investigation into the cause of the broken touch-screen glass, Apple denies that there is an underlying iPhone flaw. In fact, Apple said that in all cases it investigated, some kind of force was applied to the iPhone, causing the glass to break, according to a BBC report Friday.

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NEC taking curved-screen display to pro market

NEC was showing off a prototype of its 42-inch, 2,880×900-pixel, curved-screen display, the CRVD-LMD, at the Macworld trade show here this week. The monitor is geared for professionals such as medical scanners, photographers, and video animators who need an immersive display and a lot of real estate but don’t want their view interrupted by the frames of multiple monitors, said NEC marketing manager Tim Dreyer. It’ll include professional features such as color calibration, he added.

The 25-pound curved screen itself uses a DLP rear-projection system, not LCD or plasma. The panel technology, as in the case of the Alienware model, comes from Ostendo Technologies, said Erhan Ercan, that company’s director of product marketing.

(Credit:
Stephen Shankland/CNET Networks)

The screen is due to ship in nine or ten months, Dreyer said. Its price in dollars should be in the mid-four figure range, a price that professional markets might well have an easier time stomaching than even hardcore gamers.

A few more numbers for the curious: The response time is less than 0.02 milliseconds, the brightness is 250 nits, and the “typical” contrast is 10,000:1, NEC said.

The prototype I saw was dim and had vertical banding artifacts resulting from the four projectors used to create the image, but those kinks will be worked out by the time the monitor ships, Dreyer said.

SAN FRANCISCO–Dell got a lot of attention at the Consumer Electronics Show when its Alienware group showed a mammoth curved-screen display for gamers, but NEC is hoping it’ll reach an even bigger market with its own version of the technology.

The prototype uses a dual-link DVI port to connect to a computer with a single graphics card, but the final version could use HDMI, Ercan said.

NEC's CRVD-LMD wraps 2,880×900 pixels around the viewer.

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Report Digg walked away from $100 million offer f

Current, which filed for an initial public offering in January, now operates Current News, where users can vote on the news Digg-style and then see the top stories incorporated into an hourly news show on the cable network. Digg, meanwhile, remains the subject of acquisition rumors on the part of just about every major tech and media company around.

The thinking is consistent with what founder Rose told CNET News.com in February when asked about selling his company. “I’ve had several friends that have been acquired by the Yahoos and Googles of the world, and while there is some upside in certain things, for the most part, it slows things down,” Rose said at the time. “You can’t get a product out the door fast enough.”

Plenty of would-be buyers have been named for social news site Digg, but one we haven’t heard much about: Current Media, the cable and Web news channel that was launched by former vice president Al Gore.

It’s one of the juicy tidbits detailed in BusinessWeek columnist Sarah Lacy’s book, Once You’re Lucky, Twice You’re Good: The Rebirth of Silicon Valley and the Rise of Web 2.0, which hits bookstores on Thursday. In an excerpt posted to TechCrunch, Lacy writes about how executives Jay Adelson and Kevin Rose turned down a $100 million offer from Current in 2006 because they had, as TechCrunch paraphrased, “issues with control going forward.”

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Evernote ‘A tool for lazy slobs’

The app is still a great tool for recording text notes, either typed or written (on a tablet PC). Plus, you can clip text and graphics from Web sites or e-mails (there’s a clipper tool that makes it easy). Finding what you’ve entered later is also easy, thanks to search that works as you type and good ways to narrow down your results by date (and eventually location) or by tag. That is, if you bother to use tags; if you don’t, you still have the service’s strong search tools.

Evernote is free now (it’s in private beta) and there will always be a free version, Libin said. Unlike the last version, the freebie accounts get the Web sync functionality. A future paid version (about $5 a month) will have higher (or no) limits on the number of notes a user can create, and priority access to the server-based image processing queue (for text recognition).

The Web version of Evernote syncs up with the desktop apps for free.

Pictures search: just start typing, and Evernote will find pictures that have that term in it.

Now this is a pitch I can relate to. I was talking to Phil Libin, the new CEO of Evernote, and he was selling me on the new Web-based version of the note-taking app his company makes. Libin was giving me the big picture: Evernote is “an extension of memory.” It’s an “external brain.” But, he says, his company realizes that most people don’t want to tag, categorize, annotate, or otherwise file their notes. They just want to jam information into a bin and be able to find it later. “I’m happy with the lazy slob market,” he said.

Evernote doesn’t have OneNote’s time-synced audio recording feature, nor does it offer speech-to-text transcription like ReQall. And contrary to what I speculated in my recent coverage of ReQall), it doesn’t look like a good to-do or reminder service. I’d bet you could hack at it and make it into one if you wanted to, but it doesn’t have the clarity of purpose or the reminder features of a to-do service like ReQall, RememberTheMilk, or iWantSandy.

The previous version of Evernote (which I used for about two years, before switching to OneNote), was very good at recording a “river of notes.” Whatever you typed into the Evernote desktop app you could then easily find again. There was also a Web service, but using it cost extra.

The new Evernote, version 3, is a free suite of tools that let you access one synchronized database of notes from a desktop (PC or
Mac), the Evernote Web site, directly off a USB stick, or from a mobile device. You can also dump data into it from e-mail. In other words, there are now more ways to dump your notes into the system, and more places from which you can get them out. (The product can’t yet use RSS feeds as input, but this may be added.)

I took some camera phone shots of whiteboards and it did a surprisingly good job of indexing the text. (See also: Scanr [review] and Qipit [review].)

Not in the PC version I tested yet, but possibly in the Mac client, is the capability to take any note and publish it on the Web, for easy sharing. However, Evernote is not a collaboration tool or a wiki; viewers can’t comment on or modify posted notes.

What’s really cool, though, is Evernote’s affinity for visual notes. The mobile app lets you snap camera phone pictures and send them directly to Evernote. Or you can drag pictures from your computer into the desktop app. On a Mac, there’s a fast way to grab snaps from your Webcam. Everything then gets synched up to the server, which then does text extraction on your photos, dumping the keywords into your search index so you can find things later. (Pro tip: When you take pictures of people you want to remember at a conference, be sure to get their name badges in the shot. Instant people find.)

I’m smitten by Evernote 3.0. It’s not just that it’s a good note-taking app. It’s not just the cool OCR for finding pictures of wine labels you’ve uploaded to it. It’s all that plus the excellent synchronization between platforms that does it for me. It really makes the system feel pervasive, and inviting.

It's a good note-recording app even if you don't use the visual tools.

The Web client has enough of the features from the desktop apps that using it is not punishment. But the really cool thing is that, no matter which app you use, including the mobile and the USB versions, all your notes are always there, and your ability to search for notes is, too. Everything stays in synch.

The mobile client I used (for Windows Smartphone) lets you access your Evernote database via a Web link, or directly enter text notes and upload voice and photo files. Configuring it for automatic uploads is not obvious but once set up it’s a pretty cool feature: you could use it to snap pictures of whiteboards, as I said, or business cards, or of wine labels you want to remember.

Speaking of the recognition engine, Libin told me it will eventually read barcodes as well as text. In the future it will be able to recognize the presence of people in a photo, and some day be able to identify who the people are. As he said, the longer your visual notes stay in Evernote, the more valuable they become, since the server’s image processing engine will go back and rescan pictures every time Evernote adds new recognition capabilities.

The Mac client of Evernote is prettier than the PC client, but according to Libin it doesn’t have the same categorizing features of the Windows client. But it has that slick tool for grabbing a picture from your Mac’s built-in camera. It’s a handy way to record receipts, business cards, and the like.

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Got a new laptop Get out your screwdriver

Hard disks keep track of diagnostic information about themselves using an internal system called Self-Monitoring, Analysis, and Reporting Technology, or SMART for short.

(Credit:
Dell)

In line with this, I suggested that the hard disk be replaced, not because there was a problem with the original 10GB disk, but just to prolong the overall life span of the computer. Shortly thereafter I was given the laptop and a new $70 2.5 inch hard drive.

For an existing laptop computer, the choice is not so clear-cut, especially regarding the hard disk. Hard drives are fragile and attempting to remove them or testing the screws entails some degree of risk. At the least, I suggest having a disk image backup of the entire machine before doing anything physical involving the hard drive.

Windows does not display this SMART data, but assorted diagnostic programs can. The first thing I did, just out of curiosity, was display the SMART data for the existing hard disk. Although the computer owner had no complaints, the SMART data showed multiple problems. I’m no expert at interpreting SMART data, but with multiple numbers rated as failures by the diagnostic program, replacing the disk was all the more important–I feared the old disk might fail outright.

For a new laptop computer, the conclusion is obvious–get out your screwdrivers and make sure that you can remove all the covers on the bottom of the machine and that none of the screws attached to the hard disk is stuck. I say this for a new laptop because you haven’t yet started to depend on the computer in a serious way and it can, hopefully, be returned. To me at least, a stuck screw qualifies as a manufacturing defect, especially if it prevents upgrading the RAM or the hard disk.

See a summary of all my Defensive Computing postings.

Upgrading the RAM on a laptop is usually a very simple procedure. But, I once worked on a ThinkPad that had two screws on the RAM slot cover. One screw refused to budge and I was forced to bend the cover just enough to slide in the new DIMM.

Defensive Computing is built on Murphy’s law, if something can go wrong, it will.

(Credit:
Lenovo)

The instructions fail to mention that the hard disk is attached to an aluminum enclosure with 4 screws. Four very tiny Phillips head screws. And one refused to budge. Forcing the screw where it didn’t want to go simply converted the X on the head of the screw to a circle. Now the hard disk was bolted to the aluminum enclosure, and there it will stay.

The printed user guide for this old Dell Inspiron has instructions for replacing the hard disk that boil down to unscrew one screw, pull it out, replace the disk, put it back and tighten the screw.

The computer in question had originally shipped in 2001 with Windows ME, but was now running Windows XP. I suspect the RAM had also been upgraded over time, it now had 512MB. Obviously the owner wanted the machine to last as long as possible. They weren’t even deterred by the fact that the lettering had worn off some of the keys on the keyboard.

This wasn’t the first time I’ve been screwed by a tiny screw. Last year another hard drive replacement was thwarted on an old Toshiba laptop.

There’s a lesson to be learned from my recent attempt at replacing the hard disk on an old laptop computer.

Thanks to a single screw the owner of this laptop computer now has to buy a new machine.

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Amazon adds persistent storage to cloud computing

Amazon Web Services executives on Sunday described a forthcoming persistent storage feature, called EC2 Persistent Storage, which they say will make its hosted computing services more flexible and far more reliable.

“And the great thing is it that it is all done with using standard technologies such that you can use this with any kind of application, middleware or any infrastructure software, whether it is legacy or brand new,” he added.

Von Eiken says that persistent storage is a dramatically important feature that will lead many more companies and developers to hosted development platforms.

With a persistent storage service, data can remain linked to a specific computing instance. Significantly, people can take a snapshot of that data and store it on Amazon’s S3 storage service. That effectively acts as a way to create a back-up of their computing operation on the “cloud,” according to Amazon executives.

It’s just like an unformatted hard drive, Amazon.com Chief Technology Officer Werner Vogels explained. The difference is that it’s in the “cloud” somewhere and you get to it through an API.

Thorsten vok Eiken at RightScale, who has been testing the service, talks about the implications of this feature and says his company is making tools to make it easier to use these services.

People can sign up for an early beta test program now before Amazon opens it up for a wider release later this year.

Amazon Web Services evangelist Jeff Barr also describes the service on his blog, saying it was one of the most requested features from developers.

“The snapshot is extremely powerful technology and allows for building highly fault-tolerant applications operating worldwide. Combine these snapshots with Availability Zones and Elastic IPs and you have all the tools to manage and migrate even the most complex of applications,” Vogels wrote on his blog.

“It’s going to be like agile software development: if you want to survive as an Internet/Web service you will have to compute in the cloud or your competitors will leave you in the dust by being able to deploy faster, better, and cheaper,” he said.

The service works with Amazon’s Elastic Compute Cloud (EC2) hosted server offering. It allows developers to set aside a storage volume online, on which people save files in different file systems. This differs from what is available now with EC2 because once a compute instance is taken offline, the data associated with it goes away.

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Macworld Blinged out iPhone Cases

iSkin's offerings: typical

(Credit:
Kevin Ho)

(Credit:
Kevin Ho)

Much like CES, the vast majority of
iPhone accessories were limited to carrying cases or skins, which is surprising given that this was the event where the iPhone was introduced. While entries from iSkin and CaseLogic were there, these entries from Gilty Couture caught my eye. A gold-plated case ($99) and a diamond-encrusted (not real diamonds, right?) case ($135). However, not sure what the taste factor would be here. When we rolled up to the booth it looked as if a deal was going down, so you may see these soon.

Blinged out iPhone cases from Gilty Couture

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After TorrentSpy closure, what’s next for MPAA

But the 25-year-old CEO acknowledges that the U.S. and Canadian governments have agreed to honor court decisions in each other’s countries.

In August, the judge denied TorrentSpy’s appeal. The decision will conceivably enable the MPAA to gain access to users’ personal information in similar cases, say legal experts.

“The demise of TorrentSpy is a clear victory for the content industries and sends a clear message to operators of other illegal BitTorrent portals that they will not be allowed to operate in the United States without facing relentless litigation by copyright holders.” –statement from MPAA

Whether that is true, the film industry has racked up plenty of file-sharing victories. Besides TorrentSpy, the MPAA was blamed for driving LokiTorrent and SuprNova.org out of business. And more recently, the MPAA won important legal precedents in the TorrentSpy case.

TorrentSpy, once one of the most popular indexes of BitTorrent files, shut down on Monday following a two-year copyright battle with the Motion Picture Association of America (MPAA). TorrentSpy, accused in a lawsuit of encouraging copyright infringement, finally crumpled under the legal costs.

But Fung points out that TorrentSpy was never able to argue the main copyright issues in court. The presiding judge found in favor of the film studios after ruling that TorrentSpy destroyed evidence. Fung says he is determined to take up the copyright issue to the end. Unlike TorrentSpy, he doesn’t care what it costs.

Fung said he’s been fighting the MPAA’s attempts to require him to turn over user logs on the grounds that his company is based in Canada, which has stricter privacy laws than the United States.

“TorrentSpy’s characterization of the site’s closure as a voluntary decision conveniently
ignores the fact that after two years of intense litigation by the major Hollywood studios, a
federal court found TorrentSpy liable for copyright infringement,” the MPAA said in the statement. “Late last year the court imposed the harshest sanction against the TorrentSpy defendants and ruled in favor of the studios because of TorrentSpy’s brazen, continuous, and systematic destruction of evidence and subversion of the judicial process. In short, the ruling meant that TorrentSpy would have to shut down their site sooner or later.”

“There is no reason for us not to see this through. We’ve come this far,” Fung told CNET News.com on Thursday. “TorrentSpy shutting down doesn’t mean a victory for the MPAA. The judge declared that TorrentSpy didn’t adhere to court procedures. That’s different than a judge deciding against the company after hearing their arguments.”

The courts have not yet ruled on whether search tools can be held liable for copyright infringement. Most relevant cases have been settled before going to trial, copyright experts said. It’s important to note that IsoHunt and TorrentSpy don’t store any unauthorized movie files on their sites but the search engines are often used to find pirated copies.

The movie industry has seen mixed results from suing individuals for file sharing but continues to clobber BitTorrent search engines.

This can’t come as good news to Gary Fung, chief executive of IsoHunt. His company was among a group of torrent-file search engines, which also included TorrentSpy, accused of copyright infringement in a 2006 lawsuit filed by the MPAA. With TorrentSpy gone, the MPAA can now set its sights on IsoHunt.

The MPAA’s case against IsoHunt is in the U.S. District Court of Central California in Los Angeles, which is perceived by many to be extremely friendly to copyright holders.

But Fung is up against an MPAA legal juggernaut that is playing on its home turf, is fresh off a series of court victories, and has plenty of money. The lobbying group for the six largest movie studios said in a statement on Thursday that it took issue with TorrentSpy’s suggestion earlier this week that it lost on a technicality.

“IsoHunt is located in Canada and has a slightly different set of circumstances than TorrentSpy,” said IsoHunt’s attorney, Ira Rothken, who also represented TorrentSpy. “IsoHunt is waiting for the (judge’s decision) on a motion for summary judgment. The company is looking forward to defending itself and being the first to go to trial in a search-engine case.”

“The demise of TorrentSpy is a clear victory for the content industries,” the MPAA said in its statement, “and sends a clear message to operators of other illegal BitTorrent portals that they will not be allowed to operate in the United States without facing relentless litigation by copyright holders.”

In June, TorrentSpy was ordered by a federal judge to provide the film studios with user information found in the company’s computer RAM. TorrentSpy filed an appeal and argued that data in a computer’s RAM was too temporary to be considered “stored information,” and that it was impractical for companies to produce such material as part of a civil suit.

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Blinkx BBTV brings Web interactivity to TV, film

Imagine being able to watch movies or TV shows in high-quality, full-screen glory on your computer and being able to jump directly to a particular place in the video based on the transcript and click on a word in the transcript to pull up more information.

That’s what Blinkx BBTV (Broadband TV) promises when it launches on Wednesday.

Blinkx is bringing the world of TV and DVD entertainment to the PC, but incorporating the interactivity of the Web to make it a richer experience. The service, which requires a small software download, is free of charge and free of ads, for now. Ads will come later, says Suranga Chandratillake, chief executive of Blinkx.

I could have used this service this weekend when I became completely obsessed with The Beales of Grey Gardens, a cinema verite film about Little Edie and Big Edie Beale, an eccentric mother and daughter who, despite being aristrocratic relatives of Jacqueline Bouvier Kennedy, ended up living in abject poverty with a gang of cats and raccoons in what was left of the family estate in East Hampton, N.Y.

If I had been watching the film via Blinkx BBTV I would have been able to quickly get more information about the cast and directors by clicking on an information button. And had I not known where East Hampton was I could have instantly located it on a Google map by clicking on a pop-up location tab.

Even more helpful would have been the ability to quickly search for a word in the speech track that automatically transcribes the content and goes directly to the spot in the film where those words were uttered. Little Edie was so mesmerizing and quotable that I found myself rewatching the scenes, but I was limited to searching for them by chapter on the DVD. Clicking on any word in the speech track also brings up a Google search, where I could have gotten quick answers to the many mysteries in the film.

Now the question is what kind of content will be available on Blinkx BBTV? Hard to say, but the company says it has about 250 content partners, including Dogwoof Pictures, a U.K. film distributor specializing in independent films.

The content is all high-quality, except for clips that were designed for viewing on the Web.

I’ll definitely be trying this service out.

Blinkx BBTV offers transcripts, or speech tracks, of all content so that you can easily search for specific places in the story and get more information by clicking on the words.

(Credit:
blinkx)

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