RIM To Launch Music Service

BlackBerry maker Research In Motion is making plans to roll out its own music streaming service that will work across its mobile devices, according to people familiar with the plans.

The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc’s Android.

RIM is in late-stage negotiations with major labels, including Vivendi SA’s Universal Music Group, Sony Corp’s Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its “social platform” at last September’s DevCon event where it unveiled the PlayBook tablet computer.

A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

RIM’s BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM’s popularity.

Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

“I just don’t think trying to replicate Apple is really going to change their situation near term,” he said.

“For RIM it’s going to be the new OS 7 product first and foremost … and then it’s about QNX and making that transition.”

RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

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Lightning Took Down Amazon, Microsoft Clouds

A lightning strike in Dublin on Sunday caused a power outage in data centers belonging to Amazon and Microsoft, causing the companies’ cloud services to go offline.

Lightning hit a transformer, sparking an explosion and fire which caused the power outage at 10:41 AM PDT, according to preliminary information, Amazon wrote on its Service Health Dashboard. Under normal circumstances, backup generators would seamlessly kick in, but the explosion also managed to disable some of those generators.

By 1:56 PM PDT, power to the majority of network devices had been restored, allowing Amazon to focus on bringing EC2 (Elastic Compute Cloud) instances and EBS (Elastic Block Storage) volumes back online. But progress was slower than expected, Amazon said a couple of hours later.

“We know many of you are anxiously waiting for your instances and volumes to become available, and we want to give you more detail on why the recovery of the remaining instances and volumes is taking so long,” the company wrote at 11:04 PM PDT. “Due to the scale of the power disruption, a large number of EBS servers lost power and require manual operations before volumes can be restored … While many volumes will be restored over the next several hours, we anticipate that it will take 24-48 hours until the process is completed.”

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RIM Unveils New BlackBerry Torch Phones

Research In Motion on Wednesday unveiled two more powerful versions of its touchscreen BlackBerry Torch, hoping to buy time until it can introduce a radically new software package in its smartphones.

The new smartphones, along with a Bold upgrade unveiled earlier, are part of what the Canadian company called its biggest global launch ever as it seeks to claw back North American market share losses from Apple’s iconic iPhone and a slew of devices running on Google’s Android software.

The three touchscreen phones, running on the new BlackBerry OS 7, each boast an improved screen display and pack a 1.2 GHz processor from Qualcomm, the most powerful ever for a BlackBerry phone. All three devices will launch with carriers globally by the end of August, RIM said.

The browser for the new phones is 40 percent faster than the original Torch, RIM’s last major phone launch which hit shelves almost a year ago.

But since co-chief executive Mike Lazaridis has already promised “superphones” next year using the QNX-based operating system running RIM’s PlayBook tablet
computer, analysts are looking beyond the launch.

“This is a necessary product refresh in advance of the big bang that we hope and expect will happen with QNX-based phones,” said CCS Insight vice-president of research John Jackson.

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Alibaba Debuts Smartphone Running Its Cloud OS

Alibaba Group unveiled its first self-developed mobile operating system and smartphone on Thursday in a bid to capture a slice of China’s burgeoning mobile Internet market.

The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colors, said Wang Jian, president of Alibaba Cloud Computing, a unit of Alibaba Group.

A tablet PC running the Aliyun OS, which is based on a customized Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation in Beijing.

Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.

“Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that,” said.

The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.

Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.

Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.

The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimized to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset from Nvidia Corp for crisp display of intricate games.

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RIM Cuts 11% Of Workforce

BlackBerry maker Research In Motion Ltd plans to slash approximately 11 percent of its workforce to curb costs as it struggles to compete against Apple Inc and Google Inc.

The announcement of 2,000 job cuts on Monday came a month after the Canadian company acknowledged that it would reduce headcount for the first time in a decade.

One analyst said the job cuts were slightly deeper than expected but were key to RIM’s recovery from a slump triggered by product delays and intense competition from Apple’s iPad and iPhone as well as devices powered by Google’s Android software.

RIM’s U.S.-listed stock, already near multi-year lows, was down as much as 2 percent before the market opened. It was trading down 1.8 percent at $27.40 on the Nasdaq
just before the open.

“This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before,” said Jefferies & Co analyst Peter Misek. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”

RIM said one-time charges from the job cuts were not included in its outlook for the second quarter or for the full year, and it would explain the financial impact of the cuts when it reports second quarter results on September 15.

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Nokia Had Horrible Quarter

Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.

Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively. While the overall sales of mobile phones and smartphones are down, along with average selling prices.

Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

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Twitter Toying With Money Making Ideas

Twitter is considering the option of placing ads into the live stream of messages, according to the Financial Times. The addition of “promoted tweets” — a more palatable way to say advertising — within the live Twitter stream is bound to turn off many users, at the same time as it attracts businesses looking to reach some of the company’s 300 million users.

Twitter’s executives have been in discussions with strategists at the Cannes Lions International Advertising Festival in France this week to find a way to increase revenues, which disproportionately trail those of social media companies such as Facebook.

Twitter is expected to generate revenues of about $100 million this year. Facebook, by contrast, reaps $3.5 billion from display advertising, according to a forecast by Enders Analysis.

A few other ideas leaked out of these meetings. One was that Twitter would offer mass coupon deals, which hold potential given the real-time nature of interacting on Twitter. A brand profile, which would allow advertisers to pre-schedule their company’s Tweets, is also being considered.

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Verizon Adds LTE Network To More U.S. Cities

Verizon Wireless announced 19 more cities that will get its faster 4G wireless network service starting Thursday, bringing the total to 74 metropolitan areas.

San Francisco and Detroit, already on Verizon LTE since last December, will also see the existing LTE network in those cities expanded, Verizon said in a statement.

The new 19 LTE cities include several state capitals such as Sacramento, Calif., Hartford, Conn., Boise, Idaho, Harrisburg, Pa., Indianapolis, Ind., Salt Lake City (with Ogden), Utah; and Madison (with Milwaukee), Wis. The full list of cities is on Verizon’s website.

This news comes as competitor AT&T is scheduled to launch LTE 4G service in five cities in the U.S. this summer: Atlanta, Chicago, Dallas, Houston and San Antonio.

Rumors have also surfaced that Sprint will begin adding LTE service to its existing nationwide WiMax 4G capability, partly to support a future LTE-ready iPhone, although Sprint has not confirmed those reports.

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Mobile App Locates Cheaper Prescriptions

Medco Health Solutions and Verizon Wireless teamed up last month to release a mobile application that aids smartphone users in locating places where they can buy the lowest-cost prescription drugs.

Verizon stated the new Medco Pharmacy mobile app can also identify potentially harmful drug interactions based on Medco members’ medication histories.

Medco, which provides pharmacy services to more than 65 million customers, said its pharmacy mobile app is available for BlackBerry and Android smartphone users. It provides information about out-of-pocket costs for any prescription drug and lower-cost options specific to a person’s prescription drug plan, even if a patient is being treated by several doctors or fills prescriptions at many different pharmacies.

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Cell Phones Can Be Dangerous

It appears that an Australian brain surgeon has called the latest report in reference to the report on the potential harmful effects of mobile phones as a wake-up call to users and the telecommunications industry.

Dr Teo, said he was “pleased” that at last there came conclusive proof that mobile phones caused brain tumours. He also went on to say that the report should serve as a ”wake up call’ that should alert both the public and the mobile phone industry to the link between mobile use and cancer.”

As you know a report was released by the World Health Organisation’s cancer research wing that said radio frequency electromagnetic fields generated by cell phones are “possibly carcinogenic to humans” and heavy usage could lead to a possible increased risk of glioma, a malignant type of brain cancer.

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