In This Issue: February 2006
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Inside the
BlackBerry "Workaround"   Credit:
By Heather Green
Buck up, BlackBerry addicts. At least that's the
message from Research In Motion (RIMM), which on Feb. 9 took pains to allay
users' concerns that a legal squabble will result in a U.S. shutdown of the
popular wireless e-mail service. RIM unveiled long-awaited details of a
"workaround," or a plan for keeping BlackBerrys up and running in the event RIM
ultimately loses the long and winding patent dispute with NTP (see RIM's Web
site for information about the workaround.) Advertisement
To recap, in 2001, closely held NTP successfully filed suit against RIM for
patent infringement. Now, after four bitter years of fighting, the District
Court for the Eastern District of Virginia is set to decide soon whether to
issue an injunction upholding that earlier ruling. At the same time, the U.S.
Patent & Trademarks Office is reexamining the patents at the heart of the flap.
In preliminary findings, the PTO overturned all the key patents, and a final
review is due in the coming weeks.
Here's an overview of the workaround and some of the issues it raises:
What exactly is the workaround?
It's a software fix, called the BlackBerry Multi-Mode Edition, that's designed
to not infringe on NTP's patents. If the court decides to impose an injunction,
it would allow RIM to continue selling its popular mobile e-mail devices in the
U.S. and provide uninterrupted service to its more than 3 million U.S.
customers.
How does it work?
It would work by changing the part of the network where e-mails are stored.
Right now, when someone is out of wireless coverage range and can't immediately
get e-mail access, RIM's service stores incoming messages on computers at one of
its two network operations centers, or NOCs. When you come back into coverage
range, those e-mails are forwarded to you automatically.
Click here for the complete story.
TextPayMe: Eliminating the IOU   Credit:
By Rachel Metz
When a group of people dine out together, someone
always lacks cash. They forgot to go to the ATM, but they'll pay you back ASAP.
Right. Funny, though, how people rarely forget their cell phones. Philip Yuen
put these two observations together and came up with TextPayMe to let people
send money using text messaging. TextPayMe seems like a logical second act for
PayPal, but Yuen sees the services as complimentary.
"We just want to take over the world in all face-to-face transactions," he said.
TextPayMe doesn't have much competition in the United States so far, but PayPal
may be hot on its heels. Ironically, PayPal began as a service for beaming money
between PDAs. While people can now use PayPal through web-enabled cell phones,
the company doesn't have an SMS function. But a recent Craigslist job posting
for a business manager for "PayPal Mobile," described as "a dynamic, young
'start-up' business unit within PayPal dedicated to bringing value-added mobile
payment services to consumers and merchants," has launched rumors that such an
offering may be forthcoming.
"We haven't made any announcements in the mobile payments world," the PayPal
spokesperson said.
Yuen, a former Microsoft program manager, teamed up with his Lockheed systems
analyst brother, Gerald, and another Microsoft employee, CJ Huang, to get
TextPayMe rolling. The trio secured funding from startup seed company Y
Combinator and launched the TextPayMe beta in mid-December. TextPayMe works much
like PayPal -- users create an online account and link it to a credit card or
bank account. They can use SMS to send up to $500 a month. The service is now
free, but the company might eventually charge fees for certain transactions,
Yuen said. Beta adopters might have permanent free use, he said.
Click here for the complete story.
The
Telecommunications Act of 1996: Did it Really Matter? Credit: By
Dr. A. Michael Noll
President Clinton signed the Telecommunications Act of 1996 into law on
February 8, 2006, making this year its tenth anniversary. Heralded at its time
as having the potential for significant impact on telecommunication in the
United States, we now wonder whether it accomplished much at all. The Act
prohibited the Baby Bells from electronic publishing for four years, mostly to
protect the lucrative classified advertising in newspapers.
But the Internet—which was still a glimmer on the horizon back then— has
certainly had far more impact on electronic publishing and access to information
than anyone could have imagined—and the Baby Bells play little if any role in
such electronic publishing and information access. Any protection from the Baby
Bells of electronic information simply was not needed – then or now.
The Act allowed the Baby Bells into manufacturing and long distance, but subject
to conditions. Wisely, the Baby Bells shied away from manufacturing, but have
now entered long distance big-time through acquisitions of AT&T (by SBC) and MCI
(by Verizon). Local exchange carriers were ordered to unbundled and open up
their local networks, which the Baby Bells did but then successfully closed. The
Act was intended to stimulate local competition, but clearly failed to do so in
the manner envisioned.
However, the decades old vision of coaxial cable as a broadband medium
delivering not only video but also voice and data in competition with the
telephone companies has finally arrived – but not because of the Act.
Pork barrels on a grand scale were created by the Act, such as the universal
service fund and aid to schools and libraries. Telecommunication service
continues to be a source of taxation by the government for all sorts of social
welfare and cross subsidizations. The Act attempted to restrict obscenity in the
media, but these provisions were blatantly unconstitutional and were struck down
by the courts.
Cable TV rates were deregulated, to the joy of the cable industry and the
disgust of consumers. Ownership caps on broadcasters were liberalized, to the
joy of the broadcasters and the disgust of consumer advocates. What we forget is
that back in 1996 there were still the original seven Baby Bells. The Act
unleashed a series of mergers so that today the Bell System seems to be
reforming in the disguise of AT&T/SBC and Verizon/MCI. So in the end, the
Telecommunication Act of 1996 was much fury signifying little. Some would like
to write yet another Telecommunication Act, perhaps with less micromanagement,
perhaps eliminating pork barrels and cross subsidies, and perhaps emphasizing
basic principles.
Click here for the complete story.
Enterprise VoIP
Conversion Gathers Momentum Credit:
By VNU Business Online / CIO Today
"The conversion to VoIP will be the dominant factor in the enterprise voice
market over the next several years," said Steve Raab, director of IP telephony
research at Dell'Oro Group.
Industry experts predicted today that IP-enabled PBX sales will surge to $2
billion in 2010, nearly a threefold increase from 2005. Combined IP PBX and
hybrid IP/TDM PBX sales are projected to gain share steadily over traditional
PBX and key systems, according to Dell'Oro Group.
"The conversion to VoIP will be the dominant factor in the enterprise voice
market over the next several years," said Steve Raab, director of IP telephony
research at Dell'Oro Group.
"Modernizing the installed base of traditional PBX technology to IP telephony
requires coordinated investment in data networking and enterprise voice
equipment. During this transition, hybrid IP/TDM PBXs that embody newer IP and
legacy TDM technology will represent the majority of sales."
The analyst predicted sales of IP telephones to exceed $4 billion in 2010,
driven by businesses adopting IP Centrex services and upgrading PBX handsets to
IP telephones.
Click here for the complete story.
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