Google Goes Pay To Track

Amid widespread concern about its new privacy policies, Google is now facing additional criticism over a deal to offer users Amazon gift certificates if they open their Web movements to the company in a program called Screenwise.

Google says the program launched “near the beginning of the year,” but the company’s low-key offer was disclosed Tuesday night on the blog Search Engine Land.

Google is asking users to add an extension to the Chrome browser that will share their Web-browsing activity with the company. In exchange, users will receive a $5 Amazon gift when they sign up and additional $5 gift card values for every three months they continue to share. (Amazon is not a partner in the project.) Users must be over age 13, and minors will need parental consent to participate. The tracking extension can be turned off at any time, allowing participants to temporarily close their metaphorical shades on Google.

The company says the program will help it “improve Google products and services and make a better online experience for everyone.”

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iPhone Adds To Sprint’s Losses

Sprint Nextel posted a bigger loss, reflecting the higher costs of offering Apple Inc’s iPhone. But the loss was smaller than expected because its signed up fewer new customers than expected.

Since Sprint subsidizes the cost of some of its phone sales, its costs rise and profit dwindles the more customers it wins. But since subscriptions fell short of expectations, its loss was smaller than expected.

Sprint’s loss was 35 cents per share excluding unusual items compared with Wall Street expectations for a loss of 37 cents per share, according to Thomson Reuters.

Its profit margin based on operating earnings before interest, depreciation and amortization (OIBDA) fell to 9.5 percent from 16 percent a year earlier but beat expectations for 8.6 percent, according to eight analyst estimates Reuters compiled.

“It’s still unbelievably depressed and subscribers were below expectations,” said Roe Equity Research analyst Kevin Roe who also noted that Sprint’s targets for the full year were not particularly impressive.

The margin decline was hurt by the hefty cost of selling the iPhone.

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Google Ordered To Pay $660K

A Paris Court earlier this week ordered Google France and its parent company Google to pay plaintiff Bottin Cartographes 500,000 euros (about $660,000) for providing its free mapping services to companies across the country. The court also required Google to pay a 15,000 euro fine for its practice.

“We proved the illegality of (Google’s) strategy to remove its competitors,” Jean-David Scemmama, attorney for Bottin Cartographes, a company that provides mapping services to the enterprise, told the AFP in an interview earlier this week. “The court recognized the unfair and abusive character of the methods used and allocated Bottin Cartographes all it claimed. This is the first time Google has been convicted for its Google Maps application.”

According to Scemmama, Bottin has been arguing its case against Google for two years, claiming the search giant was engaging in anticompetitive practices by using its free service to take control over the online-mapping industry.

In a statement to the AFP, Google said that it will appeal the court’s decision, adding that Google Maps is still facing competition in that market.

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Will Windows 8 Beat Android?

ARM’s CEO Warren East has been having a look at his Tarot cards and has come to the conclusion that Windows 8 will probably put the fear of God into Android in the tablet market.

East said that Microsoft may have some potential advantages over Android particularly now it is going to run on chips lovingly designed on ARM. East told CNET that Microsoft’s brand recognition among consumers was a lot better than Androids and this could mean that they would go for that brand. He said consumers are familiar with Microsoft and very familiar with Windows and they’re less familiar with an Android environment. East added that it will be interesting to see how Microsoft exploits that advantage, but I think that’s a fundamental difference. He believes Android tablet sales will eventually take off as there were similarities between what happened with smartphones.

When Android phones were introduced, there was a lot of hype and nothing happened then a few years later–two years later–half a million units a day, 700,000 units a day and Android phones now are successful. East thought that everyone should give Android tablets a little bit more time. He did not think that Intel would be able to dent the smartphone or tablet market.

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FCC Changes Phone Policy

The U.S. Federal Communications Commission has approved an overhaul to its Lifeline program, which subsidizes telephone service for economically disadvantaged people. The goals are to save money and allow the subsidy to be applied toward broadband service.

The FCC on Tuesday voted to make several changes to the program, including the launch of a $25 million pilot program to use Lifeline for broadband. The pilot program will solicit proposals from broadband providers starting this year, the FCC said. Under the changes approved by the commission, recipients of Lifeline subsidies could use the money for bundled services, including voice and broadband packages.

In addition, the FCC set a 2012 savings target of $200 million for the program, which costs about $2.1 billion a year, and the commission will create a national Lifeline database to prevent multiple telecom carriers from receiving program support for the same consumer. Critics of the program have complained that there’s significant abuse, with recipients getting subsidies for multiple phone and mobile lines.

The FCC will also create an eligible database, using government data, focused on verifying recipients’ initial and ongoing eligibility for the program. The database should reduce the potential for fraud and cut red tape for both recipients and carriers, the FCC said.

Commissioners set a goal of saving up to $2 billion over the next three years, but Commissioner Robert McDowell, a Republican, said he doubted the FCC can achieve that goal. McDowell questioned the “assumptions and models” FCC staff used to predict the savings.

Nevertheless, McDowell voted to approve the changes. The changes will help Lifeline better fulfill its purpose of helping low-income U.S. residents stay connected, he said.

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Google Defends New Privacy Policy

In a letter sent to eight members of Congress, Google yesterday defended its decision to consolidate its privacy policies and users’ personal information.

The 13-page letter explains Google’s decision to change its privacy policies and answers specific questions from the legislators. In sum, Google contended that its approach to privacy remains the same, that users still have control over how they use the company’s various online services, and that private information stays private.

“Some have expressed concern about whether consumer can opt out of ourupdated privacy policy,” wrote Pablo Chavez, Google’s director of public policy, in the letter.

“We understand the question at the heart of this concern. We believe the relevant issue is whether users have choices about how their data is collected and used. Google’s privacy policy – like that of other companies – is a document that applies to all consumers using our products and services. However, we have built meaningful privacy controls into our products, and we are committed to continue offering those choices in the future,” he added.

Google stirred up something of a privacy firestorm last week when company executives disclosed plans to rewrite privacy policies and to meld user information across its various products and services.

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Intel Buys RealNetworks Patents

Intel on Thursday said it had agreed to acquire RealNetworks streaming media patents and video codecs in a move aimed at improving the multimedia experience delivered through devices based on its chips.

The chip maker has agreed to purchase video codec software and about 190 patents and 170 patent applications worldwide, for $120 million. RealNetworks is best known for its RealPlayer multimedia software, which offers multimedia streaming based on its own codec.

The purchase will help Intel offer “richer experiences” across a wide spectrum of devices, including through laptops and smartphones, the company said in a statement. A company spokeswoman declined further comment on specific plans for patents and software.

Intel has been beefing up its on-chip multimedia capabilities to handle more realistic graphics as the company develops newer generations of chips. The new laptop chips code-named Ivy Bridge due later this year for ultrabooks will be the first to have integrated support for Microsoft’s DirectX 11. Smartphones and tablets based on Intel’s Atom chip code-named Medfield will be released later this year.

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Will Samsung Overtake Apple

Yesterday, DigiTimes released its comprehensive Global Smartphone Industry 2012 forecast report, which entails the total number of global smartphone shipments in 2011 along with estimates of smartphone manufacturer ranking by volume in 2012.

According to the report, global smartphone shipments are projected to top 464 million units in the entirety of 2011, with Apple being the top ranking vendor in terms of shipment volume, followed by Samsung Electronics and Nokia. On the Google Android side of matters, it is expected that Samsung will overtake Apple in 2012 as the “world’s largest smartphone vendor by volume.” In addition, HTC will overtake Nokia for the third-place spot.

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WIN8 Enter Final Pre-Beta

Microsoft Windows developer build tracking site Winunleaked.tk has recently updated its Windows 8 build number page, documenting the milestones Microsoft developers have been achieving in the compilation of the Windows 8 operating system. According to the latest numbers, it appears that the company has just released the final pre-beta build, marking another significant milestone in the release cycle of the operating system.

The site claims Microsoft’s own testers will then vote on which of the next Windows 8 builds will become the “Final Beta,” with a voting decision being made on Saturday, January 28th. The final beta build will then be shown at an internal Microsoft preview on Monday, January 30th.

The official pre-beta build number is 8189.0.winmain.120120-1830, and according to the site, the next builds for Windows 8 will be labeled as “Beta Escrow” builds. Additionally, the operating system roadmap claims that the “Final Beta” build to be released to the public will be named “winmain_win8b1.”

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Android Catching iOS

Tablet computers loaded with Google’s Android operating system narrowed the lead of Apple’s iPad on the global market in the fourth quarter, research firm Strategy Analytics said on Thursday.

Global tablet shipments reached an all-time high of 26.8 million units in the fourth quarter, growing 2-1/2 fold from 10.7 million a year earlier, the research firm stated.

“Dozens of Android models distributed across multiple countries by numerous brands such as Amazon, Samsung, Asus and others have been driving volumes,” analyst Neil Mawston said in a statement.

Android’s market share rose to 39 percent from 29 percent a year earlier, while Apple’s share slipped to 58 percent from 68 percent a year before.

The tablet computer market grew 260 percent last year to 66.9 million units as consumers are increasingly buying tablets in preference to netbooks and even entry-level notebooks or desktops.

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