Networking

  • Novell wins $536m settlement from Microsoft

    Novell, Inc. (Nasdaq: NOVL) a leading provider of information solutions for enterprises, has announced an agreement with Microsoft to settle its claim that Microsoft’s unfair business practices harmed the sales of its NetWare computer operating system in exchange for $536 million in cash. Back in the ’90’s Novell was the prominent networking company. Novell also announced that by the end of this week it will file an antitrust suit against Microsoft in the United States District Court in Utah seeking unspecified damages in connection with alleged harm to the company’s WordPerfect application software business in the mid-1990s.

    Novell believes that its NetWare business was damaged by unfair business practices that gave Microsoft’s Windows a stranglehold on the operating system market. “We are pleased that we have been able to resolve a portion of our pending legal issues with Microsoft,” said Joseph A. LaSala, Jr., Novell’s senior vice president and general counsel. “This is a significant settlement, particularly since we were able to achieve our objectives without filing expensive litigation. While we have agreed to withdraw from the EU case, we think our involvement there has been useful, as it has assisted the European proceedings and facilitated a favourable settlement with Microsoft. With the EU case now on appeal, we are comfortable with our decision to withdraw from the proceeding. There is simply not much left for us to do.”

    The deal has resolved the NetWare matter between the two companies, but they remain at odds over WordPerfect. Novell acquired WordPerfect for $855 million in 1994 with the intention to launch an office productivity suite to compete with Microsoft’s Office. The effort failed, and, two years later, Novell sold WordPerfect to the Canadian software firm Corel for $186 million. Novell says that WordPerfect was victimised by Microsoft’s unfair business practices.

    The suit is based in part on facts proved by the United States Government in its successful antitrust case against Microsoft. In that suit, Microsoft was found to have unlawfully maintained a monopoly in the market for personal computer operating systems by eliminating competition in related markets.

    “We regret that we cannot make a similar announcement regarding our antitrust claims associated with the WordPerfect business. We have had extensive discussions with Microsoft to resolve our differences, but despite our best efforts, we were unable to agree on acceptable terms. We intend to pursue our claims aggressively toward a goal of recovering fair and considerable value for the harm caused to Novell’s business,” LaSala concluded.

    Having been out of the news headline for a long time, Novell are making the most of their current time in the spotlight. With the headlines they are getting currently, they have synchronized the release of their new Office software, called Novell Linux Desktop (NLD), which runs on SuSE Linux. Initially focused to business users it is charged on the basis of a price-per-seat at $50. Using broadband connections, this could, in time be offered to home users.
    Novell

  • Taipei Bathed in Wi-Fi in 2005

    Taipei plans to make wireless Internet access available across the Taiwan capital by the end of 2005, joining a small number of cities offering Wi-Fi networks. According to a Reuters article, the network will reach almost 90 per cent of the capital’s population of 3 million and aims to make accessing the Internet as easy as using a mobile phone. The system will enable subscribers to easily access information and services from governmental agencies and other service providers wherever they may be in the city – either by 3G mobile phone, personal digital assistant (PDA) or laptop computer.

    Joining a handful of cities offering Wi-Fi networks, a connecting system may soon become vital in attracting and retaining businesses, as well as catering to students and other youngsters. City-backed wireless networks also help to ensure that all neighbourhoods have equal access to the system. The downside is that government-backed projects like this will hurt the private sector, and many will believe that installing Wi-Fi using tax-payers money is a waste when most would rather see taxes go towards putting more police on the street or cleaning up the city – especially those who already have broadband in their homes.

    “In most cities in the world the coverage is small, but Taipei’s [network] is designed for a population of 2.6 million,” said Andy Lai, project leader for a Hewlett-Packard consulting team working with the Taipei City Government. Taiwan’s Q-Ware Systems, which won Taipei’s tender to build the network, plans to spend US$70 million on infrastructure, setting up 15,000 to 20,000 access points around the city, according to HP. Other companies involved in the project include Intel, Microsoft and Cisco Systems.

    Q-Ware will charge users for access. Qware has to foot the expense of installation and pay the Taipei City Government royalties for the right to run the subscription business for a period of nine years, while the Taipei City Government must provide administrative assistance and give Qware Systems the right to use public facilities such as utility poles, bus stations and overpasses for system installation.

    The number of subscribers of the new WLAN system is expected to reach 500,000 by the time the system is completed and increase to 1.1 million by the end of 2006. It will provide a platform for the government to better serve citizens and for the citizens to obtain information easily at a very low cost, which in turn should attract more subscribers and thereby generate more online business opportunities. New York, San Francisco, Amsterdam and Jerusalem are among cities offering or planning city-wide networks.

  • Cisco CTO challenges WiMax

    Cisco Systems CTO Charles Giancarlo has announced that his company will not be backing WiMax (IEEE 802.16) technology. The announcement came during his brief keynote address at the Next Generation Networks conference in Boston, where Giancarlo asserted that Cisco will only be “providing the backbone infrastructure that may be behind any WiMax deployment. Cisco has not invested in WiMax. DSL and cable are already there, and they are much more deterministic.”

    WiMAX is a third-generation wireless technology that provides high-throughput broadband connections over long distances. Wi-Fi and WiMAX are actually complementary technologies, according to Intel, as WiMAX is a ‘last mile’ technology – it connects businesses and homes to the high-speed Internet. Wi-Fi provides the wireless LAN connectivity within a building or a home. The two technologies have been built as close cousins, and should work together to provide the best connection for the users needs. The technology may well find its way into airport hotspots, for instance, but it’s unlikely service providers will invest in building two parallel wireless broadband networks.

    An implementation of the IEEE 802.16 standard, WiMAX provides shared network connectivity at speeds of up to 75MB/s and as far as 30 miles, which should be enough bandwidth to simultaneously support more than 60 businesses with T1-type connectivity and hundreds of homes at DSL-type connectivity. However, on the average a WiMAX base-station installation will likely cover between three to five miles, so home networking is not the compelling application for WiMax. Today, last mile connections are typically made through cable, DSL (digital subscriber line), fibre optic connections and even standard phone lines. The ability to provide these connections wirelessly, without laying wire or cable in the ground, promises to greatly lower the cost to provide these services.

    A further benefit of the WiMAX standard is that it relies mainly on 2GHz to 11GHz bands as opposed to the ‘overcrowded’ 2.4GHz band used by WiFi. The specifications of WiMAX avoided many of the mistakes that went into the WiFi standard, allowing longer reach, Non Line Of Sight (NLOS), greater bandwith, and better encryption. However, the 30 mile radius should be taken with a grain of salt, as it would most probably only apply to a true line of sight point-to-point connection under ideal atmospheric circumstances.

    Giancarlo reminded listeners at his speech that many wireless technologies have come and gone over the years without finding success. “This is what went wrong with MMDS (multichannel multipoint distribution system) and LMDS (local multipoint distribution system). The economics became very bad very quickly.”

    However, this hasn’t stopped Telabria, who has already announced plans to build the first WiMAX network in the United Kingdom. The network, which is now under construction, will deliver high-speed wireless broadband services to residential, business and enterprise customers in the South East of England, and provide backhaul for Telabria’s growing installed base of WiFi hotspots in the region. The service will commence trials in January, with a commercial launch by mid 2005. “We’re extremely excited about the network we’re building,” said Jim Baker, Telabria founder and Chief Executive Officer, speaking at the WiMAX World Conference in Boston. “WiMAX is a revolutionary standard which, over the next few years, will fundamentally change the structure of broadband networks”.

  • Movie Studios to Sue File Sharers

    The major Hollywood studios have vowed to sue people who illegally download movies from the Internet. In a similar move, to the way the Recording Industry Association of America (RIAA) is using lawsuits to fight online piracy (they have filed more than 6,000 lawsuits against file sharers since September 2003), the Motion Picture Association of America (MPAA) announced that the major Hollywood motion picture studios would be filing hundreds of lawsuits against individuals using peer-to-peer (P2P) file-sharing software to share films online.

    Rather than embracing P2P technology by looking for new ways to generate revenue, such a lowering the cost of movie rentals and DVDs, Hollywood is intent on further imposing its iron fist on movie fans. However, help is at hand. In connection with the music industry lawsuits, the Electronic Frontier Foundation (EFF) has intervened in court to defend the privacy and due process rights of the individuals being sued, although it’s not yet clear whether the MPAA lawsuits will make similar actions necessary. Hollywood is pinning its hopes on federal legislation that would target file-sharing technology. If passed, the so-called Induce Act would close the legitimate-copying loophole and empower the MPAA to sue P2P file-sharing services such as Kazaa, Grokster and Morpheus.

    The MPAA announcement comes on the heels of a recent study by the University of California, Riverside, and San Diego Supercomputer Center that shows that the music industry lawsuits have had no effect on the popularity of file sharing among US users, estimated at over 20 million. Movie studios can’t exactly argue that file sharing is about to put them out of business, as DVD sales grew 33 per cent last year and box-office receipts have never been stronger.

    “These lawsuits are misguided,” said Electronic Frontier Foundation (EFF) Staff Attorney Wendy Seltzer, who has been involved in the music industry suits. “The music industry experience shows that the lawsuits don’t reduce the amount of file sharing. And it’s certainly not good PR to sue movie fans for non-commercial sharing when the studios are rolling in record profits.”

    “In the end, what protects the studios from piracy is the what attracts people to buy or rent movies in the first place – a good product at a good price point,” said EFF Legal Director Cindy Cohn. “As long as you can rent a movie on DVD for $2, movie file sharing is not likely to take a major bite out of studio revenues.” www.mpaa.org

  • BT Offer Public WiFi for £1/month

    It’s just bargain after bargain, as companies keep pushing out the barriers to attract new customers or hang on to existing ones, using every technological and communications innovation available. Now BT is offering its new and existing, business and consumer broadband customers, public wireless broadband for just £1 a month. Remember that BT already have a Bluephone in the offing – a mobile phone that will provide cheap Web-based phone calls from Wi-Fi hot spots anywhere in the world.

    The service is called BT Openzone and there are two introductory discount deals of £1 per month for up to 500 minutes available to BT Business Broadband customers and BT Broadband and BT Yahoo! 500 minutes is only eight hours a month though, and this may not be enough for some people. It is offered to BT customers, who sign up before December 31, 2004. After the first three months, customers can continue using the exact same service for a further 12 months for £5 a month.

    Aimed at people on the move who need to keep in touch, customers can log on to BT Openzone with their Wi-Fi enabled laptop or PDA when within range of over 7,000 hotspot locations across the UK, including hotels, airports, railway stations and coffee shops. With cable companies, mobile operators and VoIP providers always offering trendy alternatives, Telcos have to keep going back to the drawing board.

    But (she asked, scratching her head), why would you bother paying £5 or even £1 per month if all you have to do is hawk your laptop down to the nearest café, and get the whole lot for free, plus a really well-made cup of coffee?

    Thousands of BT Openzone hotspots can be found in the UK and Republic of Ireland, in motorway service stations, airports, conference centres, hotels and cafés. Also, a Wi-Fi roaming agreement with BT Openzone, has increased the number of T-Mobile UK hotspots to 1,900, and customers of BT Openzone will now also have access to T-Mobile’s 600 UK Wi-Fi hotspots, as well as thousands more across Europe and the US. Now all we have to worry about is wireless security!

    BT Group plc

  • Sony Eyes P2P Venture

    A new partnership of opposites may be in the offing, one that will allow you to download pay-for and free songs from the Internet. The partnership called Mashboxxx, first reported in Friday’s Los Angeles Times, will happen between Sony BMG Music Entertainment and online peer-to-peer software distributor Grokster. This is quite an historical venture really, being the first earnest public partnership between a major recording company and an established file-sharing outfit. There have been many rumours (whispered behind the hand) of these schemes already being run.

    Yes, Sony BMG has broken ranks with the rest of the entertainment industry by embarking on this venture with Grokster, that combines free music sampling with paid downloads. The free downloads will be promotional versions of songs by Sony BMG acts, and / or you can buy licensed, higher quality versions. Punters already use Grokster to search, download and distribute a wide variety of music files, but most of these are only copies of CD-quality recordings.

    To many, this looks like a case of joining the enemy when you can’t beat them – a tactic that has worked well in many instances throughout history. As it happens, Grokster only recently settled a copyright infringement lawsuit filed against them by recording companies, over a Spanish Web site that was selling music downloads without permission.

    But why go down the expensive and lengthy road of litigation when, like Sony BMG and Grokster, you can settle on a legitimate business model that allows you to work together, using each other’s expertise in a mutually beneficial way?

    Well finally the music industry is starting to acknowledge that Peer-to-peer (P2P) networks are very efficient at distributing files. Not only that, but they get to save money by not paying all of the bandwidth charges for distributing the files, as the consumer bandwidth is used to share the files around.

    Mashboxxx is expected to employ some kind of digital fingerprinting technology that will be able to filter out unauthorized song copies from file-sharing networks, and a version of this type of filtering technology has been developed by San Francisco-based Snocap Inc.

  • RIAA Files 750 New File-trading Lawsuits in the US & CD sales up 10%

    The Recording Industry Association of America (RIAA), on behalf of the major record companies, has just issued a new round of copyright infringement lawsuits against 750 illegal file sharers using peer-to-peer (P2P) software. Including 25 users on 13 different university campuses, who used their university servers to perform the dreaded deed. This brings the total number of lawsuits filed by the RIAA against alleged file sharers since September 2003 to over 6,200.

    The file sharers that were sued were using (P2P) services such as eDonkey, Kazaa, LimeWire and Grokster, although maybe Grokster miscreants will receive universal absolution if the deal between Grokster and Sony BMG to make file sharing respectable goes ahead. In keeping with practice used in previous cases, the RIAA suits have been filed against ‘John Doe’ defendants – a method used to sue defendants whose names are not known. They will instead be identified by their numeric Internet Protocol (IP) address. Names can only be obtained by music company lawyers’ issuing subpoenas to Internet access providers.

    In addition to the 750 ‘John Doe’ litigations, 213 separate lawsuits were filed against named defendants who were already identified through the litigation process but then declined or ignored an RIAA offer to settle the case before it proceeded any further.

    This is despite the fact, that legitimate downloading services seem to be doing rather nicely, with the RIAA’s recently released mid-year figures showing that 58 million single tracks were downloaded or burned from a licensed service for the first half of 2004.

    Furthermore, the figures also show that full-length CD shipments to retail outlets increased by 10.2 percent this year, compared to the amount of shipments over the same time period in 2003 – the first time in five years that the first half of the year has experienced such an increase.

    People are still flocking to the record store to buy their music, as overall, CDs and all other audio and video music products shipped to retailers increased by 8.5 percent in the first six months of 2004 compared to the same period in 2003.

    It’s a funny thing that while all this litigation is going on, that the RIAA has just given out the first-ever Gold and Platinum awards for digital downloads, albeit for legally sold ones.

    RIAA
    Subpoena Defense site

  • Broadband BBC – Ashley Highfield

    Ashley Highfield, BBC Director of New Media and Technology, outlined the BBC’s plans to harness broadband technology to reduce the digital divide in Britain in a speech to the Broadband Britain Summit in London.

    Alluding to Harold Wilson’s prophetic comments over forty years ago where he described a ‘new’ Britain forged from ‘the white heat of technology’, Highfield asks, “Can we move this ‘linear’ digital content leadership into the broadband ‘on demand’ world? Or will the white-heat prove to be nothing but hot air?”

    Highfield describes “a new world of media consumption only made possible by a faster always-on connection.” He outlined the corporation’s vision for a broadband Britain, and urged the cooperation of Government and industry to avoid a digital underclass.

    It is obviously hoped that the BBC’s interactive media player, iMP, which has just undergone a technical trial, will be a leading protagonist in the unfolding broadband drama. “iMP enables people to download television and radio programmes, choose to record whole series such as EastEnders, catch up on programmes they have missed and watch or listen to them on any device they want – all through peer-to-peer (P2P) sharing on a broadband connection”, explained Highfield.

    “iMP is just one of a suite of products in development that makes up our BBC On Demand strategy”, says Highfield, “including the Creative Archive, the Radio Player, and the Broadband Console, with the express aim of finding the right content and services to put the British media industry at the forefront of this technology tidal wave and narrow the digital divide.”

    The creation of “Underclasses” are not a healthy development in any environment, including the digital one, and Highfield outlined some proposals that should help to avoid this – the BBC’s planned scheme ‘Music for All’ and a ‘Get Britain Connected’ week.

    The ‘Music for All’, will be firmly rooted in broadband. It aims to “transform music education giving children the opportunity to hear live performances, experience master classes in all music genres, create and perform their own pieces and work alongside leading musicians who can help them to develop their musical passions.”

    Highfield also floated the idea of FreeBand (in the mode of the BBC’s FreeView and FreeSat). The BBC would supply broadband ready material, “compelling content” in his words, that would be delivered via services providers to UK citizens. Sadly he didn’t go in to any more detail, so it’s not clear how this would differ from services they currently freely deliver, or have spoken about publicly previously. It is perhaps just a new catchy way to label it.

    In his speech, Highfield also proposed a ‘Get Britain Connected’ week to happen later next year. He envisaged this as being “a joint initiative with Government, players in the broadband supply chain (both commercial and public sector) and the BBC with its airwaves and cross-promotional opportunities to target those members of society who might find themselves on the wrong side of the digital divide.”

    Harold Wilson was the first British Prime Minister to successfully use television as a political tool. Hopefully the ‘white heat’ Wilson referred to forty years ago will indeed prove to be more than hot air.

    Text of Ashley Highfields speech

  • SBC’s $20 DSL Red Herring

    Baby Bell phone company SBC Communications has launched a promotion that breaks a barrier of sorts. It’s offering DSL for $19.95 (£11) a month. It only comes in a bundle though. You must also subscribe for one year to SBC’s unlimited calling plan at $48 (£26) a month.

    The DSL service promises download speeds of between 384kbps and 1.5mbps, and an upload speed of up to 384kbps. It also includes increased e-mail account storage, safety and security features and a parental control package.

    SBC Communications, who markets DSL high-speed services in partnership with Yahoo, say the $19.95 (£11) a month plan, effective from 1st November, is available to new broadband subscribers or for customers who want to change from cable to DSL.

    It’s a regular tussle between the phone companies and the cable companies. Approximately 60% of US homes with broadband access, use cable modems, but broadband penetration nationwide has not yet hit 50%. By the end of 2004 roughly 30 million of the 110 million US households will have broadband access – still only 30%.

    At the end of the second quarter (2004) UBS said cable firms had 16.7 million Internet customers, while phone companies had 11.3 million DSL customers – still a considerable gap.

    Looking ahead, Local Bells plan to replace ageing copper wiring in affluent urban areas with fibre-optic wiring that will also handle video, hoping obviously to stop wireless and cable service providers at the pass. Indeed, only last week SBC granted Alcatel a $1.7 billion contract to install fibre-optic lines in its network infrastructure, so that it can eventually handle video, while Motorola will supply equipment to Verizon for their video service.

    But cable companies like Comcast and Time Warner Cable remain the market leaders for household broadband customers. While phone companies like SBC, Verizon Communications, BellSouth and Qwest Communications are upgrading their networks to handle higher bandwidth applications such as video.

    While SBC added 402,000 DSL customers in the third quarter and Verizon added 309,000 DSL customers, cable firm Comcast signed up 549,000 broadband customers in the same period. Comcast did target college students though with a $19.95 (£11), six-month promotion, which may go some way towards explaining their third quarter success.

  • Court Orders New Protections for People Targeted by RIAA

    A district court in Pennsylvania has forced the Recording Industry Association of America (RIAA) to rethink the privacy and due process rights of people it has accused of copyright infringement. The impasse arose after the music industry filed a flood of lawsuits against anonymous individuals who they claimed were sharing copyrighted music, but because the industry did not know the identities of the file sharers, it served subpoenas to the individuals’ ISPs seeking their names. The court held that before the ISPs turn over these names, they must first send notices to each file sharer advising them of their rights.

    The judge ruled that the RIAA cannot sue alleged file sharers simultaneously, since they had grouped 203 of them, called “John Doe” because their identities are not yet known – into one lawsuit last month. The RIAA must now identify alleged file swappers by their Internet Protocol addresses.

    On Friday a subpoena was authorised in the case of John Doe No. 1, but the RIAA will have to make separate requests to seek the identity of each of the remaining 202 alleged file sharers, and must pay court fees of $150 for each lawsuit filed.

    “Piracy, both online and on the street, continues to hit the music community hard, and thousands have lost their jobs because of it”, said Mitch Bainwol, Chairman and CEO of the RIAA in a recent press statement. The RIAA and its partners in the music community have continued a variety of public education efforts. These include joining with the FBI to unveil a new anti-piracy warning and seal; expanding the acclaimed “I Download…Legally” media campaign; and working with the university community to develop new programs to educate students about intellectual property laws, discourage illegal peer-to-peer use, and offer legitimate online music alternatives.

    Notwithstanding, the RIAA, for the first time ever, included digital downloads in its semi-annual shipment report. For the first half of 2004, there were 58 million single tracks downloaded or burned from licensed online music services.

    www.riaa.com
    www.eff.com