Samsung adds biometrics to new phone

24 February 2014 Last updated at 15:23 ET

The next iteration of Samsung's Galaxy smartphone range will feature biometric security, the company has announced.

In a similar way to Apple's iPhone 5, the main button on the front of the device doubles as a fingerprint scanner used to unlock the device.

The S5, which is water and dust-resistant will be available in April.

South Korea-based Samsung, the market leader in smartphone sales worldwide, also claimed to have made the "world's fastest" auto-focusing camera.

In addition to two smartwatches announced on Sunday - the Gear and Gear 2 Neo - Samsung also added the Gear Fit, a smartband that is focused on fitness.

Security focus

Security has been a major theme at Mobile World Congress in Barcelona.

Earlier on Monday, the Blackphone, made by Silent Circle, was launched. It included a range of specialised security apps offering encrypted communication.

And for Samsung, it was security features that provoked applause from those in attendance at its characteristically-flamboyant launch event at Mobile World Congress in Barcelona.

As well as unlocking the device, the fingerprint scanner will be used to power payments. Samsung has partnered with Paypal to offer payment-by-finger.

The scanner is also able to enable "private mode", a way of storing sensitive information accessible only by using the scanner.

"Consumers already worried about the security of established payment mechanisms are likely to view a new technology and process with suspicion," commented Eden Zoller, principal analyst at Ovum.

"On the positive side, Samsung is a hugely popular smartphone brand with global reach, while PayPal is a trusted payments service provider. This is a powerful combination."

Another feature impressing the crowd was the device's black-and-white mode - designed to save battery life by limiting the power used by the screen and disabling all but essential features such as text and calls.

"Samsung appears to have cherry-picked the most crowd-pleasing features available from other manufacturers," said Ernest Doku from uSwitch.com.

"A fingerprint ID sensor and an attractive gold model like Apple's iPhone 5s, a water and dust-resistant body like Sony's Xperia Z2, and photography credentials to challenge the best from Nokia."

No Tizen

Samsung is by far the dominant player in smartphones globally.

According to Strategy Analytics, 452 million Samsung devices were shipped in 2013 - far greater than Apple's 153 million.

But sales of the S5's predecessor, the S4, were seen as disappointing compared to the growth achieved by the S3.

The company also faces a growing threat from emerging Chinese manufacturers such as Xiaomi, ZTE and Lenovo.

Some had speculated before the event that Samsung would eventually drop Google's Android software in favour of a fledgling system known as Tizen.

However, while the company's new smartwatches will use Tizen rather than Android, the flagship smartphone is, for now, sticking with Google's system.

This is likely to be of relief to the search giant - it is Samsung's enormous market share that makes Android the most popular mobile operating system.

"What perhaps is the most interesting aspect of the device is what Samsung did not announce, effectively putting to bed a number of rumours," said Ovum analyst Nick Dillon.

"These included suggestions at both ends of the scale that that the device would be running Tizen OS and that it would be using a 'pure' Google version of Android.

"That it has neither tells us both that Tizen is unlikely to see a major handset launch this year and that Google and Samsung are still operating at arm's length."

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Top Bitcoin exchange goes offline

25 February 2014 Last updated at 11:15 ET

One of the biggest Bitcoin Exchanges, MtGox, has gone offline.

The exchange has been hit by technical issues and recently halted all customer withdrawals of the digital currency after it spotted what it called "unusual activity".

The move is a setback for backers of Bitcoin, who have been pushing for greater adoption of the currency.

Meanwhile, six other major Bitcoin exchanges issued a joint statement distancing themselves from MtGox.

Continue reading the main story

"Start Quote

Bitcoin's strength - that it has grown in an organic, slightly anarchic and devolved way, with no central oversight or control - is also its weakness"

End Quote

The move by MtGox to halt withdrawals had resulted in a sharp decline in the value of Bitcoin.

A statement was posted on the MtGox website on Tuesday afternoon.

"In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly," it said.

The closure of the site did not "reflect the resilience or value of Bitcoin", said a statement from representatives of several other Bitcoin exchanges, including Coinbase and BTC China.

"This tragic violation of the trust of users of MtGox was the result of one company's actions.

"As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.

"We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfil the promise that Bitcoin offers as the future of payment in the internet age," they added.

Lost Bitcoins?

MtGox halted transfers of the digital currency to external addresses on 7 February.

The Tokyo-based firm said it had found a loophole that thieves could use to fool the transaction process into sending double the correct number of Bitcoins.

The issue also left it vulnerable to attacks, which slowed down the rate at which coins could be bought and sold.

Continue reading the main story

How Bitcoin works

Bitcoin is often referred to as a new kind of currency.

But it may be best to think of its units being virtual tokens rather than physical coins or notes.

However, like all currencies its value is determined by how much people are willing to exchange it for.

To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.

For each problem solved, one block of Bitcoins is processed. In addition the miner is rewarded with new Bitcoins.

This provides an incentive for people to provide computer processing power to solve the problems.

To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of about 3,600 new Bitcoins a day.

There are currently about 11 million Bitcoins in existence.

To receive a Bitcoin, a user must have a Bitcoin address - a string of 27-34 letters and numbers - which acts as a kind of virtual post-box to and from which the Bitcoins are sent.

Since there is no registry of these addresses, people can use them to protect their anonymity when making a transaction.

These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

They operate like privately run bank accounts - with the proviso that if the data is lost, so are the Bitcoins owned.

The loophole was also thought to have been exploited by thieves, who stole about $2.7m in Bitcoins from the Silk Road 2 website earlier this month.

However, last week, the exchange said that customers would be able to starts withdrawals "soon".

One report claimed on Monday that the exchange had become "insolvent" after losing 744,408 Bitcoins - worth about $350m (£210m) at Monday's trading prices.

The chief executive of MtGox, Mark Karpeles, told Reuters in an email on Tuesday: "We are currently at a turning point for the business. I can't tell you much more for now, as this also involves other parties."

'Re-establish trust'

Unlike real currencies, Bitcoins are not regulated by any central bank or government financial institutions.

They are created as part of a technique called "mining", which is used to process transactions.

With only a limited number or Bitcoins in circulation, their price has risen significantly in recent months driven by a variety of factors.

Some have been betting that the digital currency may get the backing of regulators as a legitimate financial service and have been investing in it.

Their popularity has also been driven in part by it being difficult to trace transactions carried out using Bitcoins, and the currency has been linked to illegal activity online.

Its growing popularity has seen backers of the currency push for greater mainstream adoption. They have had some success with a few firms starting to accept Bitcoins as a form of payment.

However, there have also been concerns over the currency's long-term future, not least due to a lack of proper regulation and laws.

At the same time, some have warned that the rapid surge in Bitcoin's price was merely due to speculation and was not sustainable.

The latest development with MtGox is likely to trigger fresh concerns over the digital currency.

However, other Bitcoin backers said they were working together to "re-establish" trust among users and were "committed to the future of Bitcoin".

They said they "will be coordinating efforts over the coming days to publicly reassure customers and the general public that all funds continue to be held in a safe and secure manner".

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Fujitsu develops glove-style tech

24 February 2014 Last updated at 11:51 ET

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A prototype tablet from Fujitsu offers haptic technology - the ability for the screen to change texture for different purposes

Fujitsu has unveiled a wearable device in the form of a glove at the Mobile World Congress in Barcelona.

It features near-field communication (NFC) and gesture-based technology. It is aimed at people who cannot use conventional smartphone or tablet devices while working because they need to wear gloves.

By touching an object using the glove device users can receive information displayed on a "head-mounted display".

The glove will be launched in 2015.

Fujitsu said that the device could be used by workers in factories or on building sites who work in dirty environments and have to wear gloves to operate or repair equipment.

Haptic tablet

If the equipment they are working on has an NFC tag on it the glove will detect this when it is touched and show any relevant documentation or work-orders in a headset that can be linked to the glove via bluetooth.

Fujitsu say it could "streamline operations and cut errors".

The Japanese firm also demonstrated a haptic tablet that will allow users to feel "a sense of slipperiness or roughness".

On display at MWC was a prototype version of the tablet that allowed users the chance to feel the "sensation of plucking the strings of a Japanese harp", or to feel the "skin texture of an alligator".

The technology works by cycling between high and low friction in response to a user touching the screen.

Fujitsu said the technology had "wide-ranging potential applications" including for use in gaming and for displays in retail environments.

The company said it would hope to have a commercial version of a product with haptic technology by 2015.

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Xbox One price cut to match PS4

24 February 2014 Last updated at 09:24 ET

Microsoft is to drop the price of its new Xbox One console - just over three months after its release.

The console, currently priced in the UK at £429, with a bundled game, will drop to £399 on Friday and will include major title Titanfall in the package.

So far, the drop will only apply to the UK.

The new cost brings the console in line with the price of Sony's PlayStation 4, which is outselling Microsoft's machine.

However, the PlayStation 4 can be bought without a game for £349.

"The reason we're doing this is that we're committed to giving gamers the best value that we can," said Harvey Eagle, Xbox's marketing director in the UK.

"We're only a few months into a generation of consoles that are going to last for many many years to come," he added.

Continue reading the main story

They're skating to where the puck was, not where the puck will be"

End Quote Nicholas Lovell Gamesbrief.com

"And now just feels like the right time to make the adjustment on the price."

'Appreciative'

Industry figures suggest that the PlayStation 4 is outselling the Xbox One by around two to one, with 5.3 million of Sony's machines being sold worldwide.

However, Microsoft is keen to point out that compared with their previous console, the Xbox 360, the newer model has enjoyed a "record-breaking" launch, and that sales of games have been strong.

The new, cheaper bundle will include a copy of Titanfall - a major title that Microsoft expects will significantly drive sales of the console.

Titanfall is not out until 14 March, and so people buying consoles at the cheaper price before that date will not be able to the play the game until it is released.

In an interview with the BBC, Mr Eagle defended the price change coming so soon after the console's release - and thanked those who had bought the machine early.

"We're hugely appreciative," he said.

"We would like to thank all of the people that have supported us since launch."

White elephant

The Xbox One's higher launch price was attributed in part to the inclusion of its Kinect hardware - the motion tracker that allows gamers to play without a physical controller.

However, analysts argued that while an impressive piece of technology, the Kinect does not yet offer enough innovative uses to tempt people into the extra cost.

"You've got this Kinect device that has potential to push forward what we expect a games console to do," said Nicholas Lovell, from Gamesbrief.com.

"But without the software to support it it looks like a white elephant."

Microsoft said that they regarded the console war as a "marathon" rather than a sprint - and that it was confident the added hardware would stand the Xbox One in good stead further down the line.

"We're in it for the long haul," Mr Eagle said. "Kinect is absolutely integral to Xbox One."

Microsoft's long-term strategy is to make Xbox One the "hub" of the living room - a device through which people would watch TV and other entertainment as well as play games.

But Mr Lovell had doubts - especially as ever-more-powerful tablets and smartphones put this approach under threat.

"They're skating to where the puck was, not where the puck will be," he said.

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WhatsApp to add voice-call function

24 February 2014 Last updated at 12:30 ET

Mobile messaging service WhatsApp, which is being bought by Facebook for $19bn (£12bn), will add a voice-calling function "within months".

The app already offers voice notes - small audio clips - but the update means it would act more like Skype.

WhatsApp said it wanted the app to be on "every phone in the world".

The announcement was one of several made at Mobile World Congress in Barcelona on Monday.

The event, which is the biggest in the mobile industry calendar, also heard from:

• Sony. It launched two major products - a smartphone and a tablet. The company recently said it was selling its PC unit and cutting a number of jobs so it could focus on its mobile strategy. However, it is not seen as a major player in the smartphone and tablet market. The Xperia Z2 smartphone is targeting high-end users - the camera is able to record in 4K, four times the quality of HD. Also in Sony's line-up was a Smartband, a fitness-tracking device.
• Lenovo, which banked its tablet future on the Yoga Tablet 10 HD+, an Android-based device that will come installed with Lenovo-made apps to help to make the most out of its distinctive "multimode" design. It can be bent in various different ways for different purposes such as typing or watching a film. The additional apps also claim to offer protection against malicious software and theft.
• HP also brought its own line of "Yoga inspired" devices to the event. The HP Pavilion x360 can be used as either tablet or laptop PC.
• And ZTE offered up the Grand Memo II LTE smartphone - although with a screen measuring 6in, it could perhaps be better described as a "phablet", a device halfway between a smartphone and tablet. The company also unveiled the Open C, a budget phone that runs Mozilla's Firefox mobile operating system.

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Facebook quietly ends email service

24 February 2014 Last updated at 17:54 ET

Facebook has quietly shuttered its three-year-old email service that gave users "@facebook.com" email addresses.

From now on, emails sent to an "@facebook.com" address will be forwarded to the personal email address from which the member signed up for the site.

"We're making this change because most people haven't been using their Facebook email address," said a Facebook spokesperson.

The change will happen in early March.

The service was launched in November 2010 and billed as a way to streamline users' communication by providing a single inbox that could receive Facebook messages, SMS texts, and conventional emails.

It came under fire in 2012 when Facebook replaced users' published email addresses with their "@facebook.com" email on their profile.

The company later reversed course.

The move comes just a few days after Facebook's surprise purchase of messaging app WhatsApp for $19bn (£11.4bn).

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Profits surge at 'China's Twitter'

24 February 2014 Last updated at 20:42 ET

Profits at Sina Corp, owner of China's largest Twitter-like site Weibo, surged in the fourth quarter, boosted by a jump in advertising revenue.

It reported a net profit of $44.5m (£26.7m) in the October-to-December period, up from $2.4m a year ago.

The numbers come amid reports that Sina is planning to list Weibo in the US and that it plans to raise nearly $500m by selling Weibo shares.

Weibo claims that it has over 500 million registered users.

China is the world's biggest internet market and social networking sites have become increasingly popular with users.

As a result, many firms have turned to the medium to advertise their products and services in an attempt to attract new customers, helping boost growth of companies such as Sina.

According to the firm's latest numbers, advertising revenues at Weibo rose to $56m during the fourth quarter - a 163% jump from a year earlier.

"The strong performance of Weibo's advertising and value-added services in the fourth quarter allowed us to end 2013 with strong top line and bottom line growth," said Charles Chao, chief executive of Sina.

Growing user base

However, a report published last month indicated that the number of Weibo users declined steeply in 2013.

Continue reading the main story

• The largest microblog provider in China
• Says it has over 500m registered users
• Says that one in two Chinese netizens were users in 2012

The China Internet Network Information Center said in its annual report that almost 28 million people abandoned Weibo last year.

The fall marked the site's first drop in usage amid a government crackdown on so-called 'rumour mongers' online.

Weibo's surge in popularity gave users new opportunities for self-expression, but it also attracted the attention of authorities who moved swiftly to silence voices online.

A law was introduced to allow the Chinese government to jail microbloggers and dozens more were arrested.

Web users are believed to have migrated to mobile messaging platforms.

Mr Chao of Sina said the firm "will continue to focus on growing Weibo's user base and user engagement" in the current year.

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LinkedIn tests Chinese language site

24 February 2014 Last updated at 23:37 ET

Professional networking service LinkedIn has launched a beta or test version of its Chinese language site.

The firm said the move was aimed at offering a more localised service to its users in China.

It is expected to boost LinkedIn's growth in China - where rival social networking firms such as Facebook and Twitter continue to remain blocked.

China is the world's largest internet market with more than 500 million internet users.

LinkedIn said it was also creating a joint venture with Sequoia China and China Broadband Capital to "help connect more than 140 million Chinese professionals with each other and with our more than 277 million existing members globally".

"Our mission is to connect the world's professionals and create greater economic opportunity - and this is a significant step towards achieving that goal," the firm said in a blogpost.

Censorship worries

Continue reading the main story

LinkedIn strongly supports freedom of expression and fundamentally disagrees with government censorship"

End Quote Jeff Weiner LinkedIn

Social media platforms have become increasing popular with Chinese internet users keen to voice their opinions and share unfiltered information.

That has resulted in increased scrutiny and censorship by authorities.

LinkedIn's chief executive Jeff Weiner acknowledged that "as a condition for operating in the country, the government of China imposes censorship requirements on internet platforms".

He added that expanding the firm's presence in China had raised difficult questions for the firm, not least because of these restrictions.

"LinkedIn strongly supports freedom of expression and fundamentally disagrees with government censorship.

"At the same time, we also believe that LinkedIn's absence in China would deny Chinese professionals a means to connect with others on our global platform," he said.

The firm said it had decided to implement the following guidelines to address censorship concerns:

• Government restrictions on content will be implemented only when and to the extent required
• It will be transparent about how it conducts business in China and will use multiple avenues to notify members about its practices
• It will undertake extensive measures to protect the rights and data of members

While the firm did not specify what restrictions it would implement, some reports indicated that it had dropped the group discussion feature from the Chinese language site to avoid censorship issues.

'Start-up phase'

LinkedIn's English language site has been available in China for over a decade. It already has four million users in the country.

LinkedIn said the Chinese language site would incorporate features aimed at helping local users drive more value from the service.

It has integrated Sina Weibo, China's largest Twitter-like service, into the platform that would allow members to import their Weibo contacts to their LinkedIn profile.

Members would also be allowed to link their LinkedIn account to their WeChat account, one of China's most popular mobile messaging services.

LinkedIn said that despite being present in the country for such a long period it was still in a "start-up phase" in China.

"We believe that the experience of our local team, combined with the considerable market expertise of our joint venture partners, position us well to explore our growth options in China," it said.

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Apple users in security warning

25 February 2014 Last updated at 08:30 ET

Users of Apple's OS X operating system are being warned to take care when browsing online as they wait for a solution to a security flaw.

A software update was released last week to owners of iPhones, iPads and iPods to protect users from "an attacker" who may "capture or modify data".

It was later discovered that the problem also existed on Apple laptops and desktop computers running OS X.

A security fix has not yet been issued.

The problem was first spotted on Apple's mobile devices which run the iOS 7 operating system. It relates to the way secure connections are made between Apple's safari browser and websites, including banking sites, Google and Facebook.

These sites have digital security certificates that allow an encrypted connection to be established between a user's computer and the website. This means any data that is sent over the connection should be secure.

Dropped the ball

However, a vulnerability in the code for Apple's iOS and OS X operating systems meant the security certificates were not being checked properly. This meant hackers could impersonate a website and capture the data that was being sent over the connection before letting it continue its journey to the real website.

Apple released a fix for mobile devices running iOS 7 last week but a spokesperson issued the following statement about OS X: "We are aware of this issue and already have a software fix that will be released very soon."

According to researchers the security flaw had existed for months but no-one had reported it publicly.

Graham Cluley, a security analyst, said it was a failing by the company that it had not been identified earlier.

"It's pretty bad what Apple have done, they've seriously dropped the ball. How much the problem has been exploited is hard to say. Hackers may now be trying to take advantage while users wait for the security fix."

He advised users to take care when using the web and consider using an alternative browser to Safari until the problem was fixed.

He also urged users of Apple's mobile devices to upgrade to the latest iOS version as soon as possible and for OS X users to keep their eyes open for a security update and to implement it as soon as it was available.

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Rural broadband: Who gets what

25 February 2014 Last updated at 11:18 ET By Jane Wakefield Technology reporter

The UK government has announced how £250m set aside to improve broadband services in remote areas will be spent.

The money will be divided between local councils and each will have a month to work out how they will spend it to ensure superfast broadband is available to the majority of homes.

Critics have urged councils to consider providers other than BT, which has so far won all rural broadband contracts.

The government has been criticised for how it has handled the rollout so far.

Continue reading the main story

Who will get the most money?

• Devon, Somerset £22.7m
• Shropshire £12.8m
• Hereford and Gloucestershire £10.98m
• South Yorkshire £10.4m
• Essex £10.7m
• Hampshire £8.7m
• Buckinghamshire, Hertfordshire - £6.6m
• Kent and Medway £5.6m
• East Riding, Yorkshire £5m
• Black Country £4.9m

It has invested £1.2bn in rural broadband and the Department for Culture, Media and Sport (DCMS) is hoping that the extra £250m will ensure 95% of the country's homes and businesses have access to superfast broadband by 2017.

England will get the lion's share of the funds - £184m while Scotland will get £21m, Wales £12m and Northern Ireland just over £7m.

"We want to make sure that Britain is one of the best countries in the world for broadband," said Culture Secretary Maria Miller.

But the process to allocate the funds is likely to be watched very closely following harsh criticism of the way her department dished out the last round of funding.

A damning report from the Commons Public Accounts Committee (PAC) accused the government of ripping off taxpayers by handing all the money to BT.

It also accused the telecoms firm of exploiting its "quasi-monopoly" position and called for far more transparency on how it intended to spend the money.

More recently the PAC called on BT to provide detailed coverage maps that would allow alternative operators to offer services in areas the telecoms firm would not reach.

Infrastructure project

Malcolm Corbett, head of the Independent Network Co-operative Association, which represents some of the smaller community-based broadband suppliers, welcomed the new investment but made a plea for smaller community schemes to be recognised.

"There are a lot of independent suppliers who can offer a much better deal for the taxpayer," he said.

"Some of the alternatives to BT require far less state aid and they are offering fibre to the home which is a future-proofed technology meaning bandwidth ceases to be an issue," he said.

BT denies that it does not represent good value for money.

"We wouldn't accept that community schemes represent better value for money," said a spokesman for the telecoms firm.

"This a huge national infrastructure project rather than a community broadband scheme and it's proving to be an overwhelming success for the massive numbers of people that are being connected."

Poacher turns gamekeeper

Since BT signed contracts with councils around the UK, the plug has been pulled on several community-based schemes.

Barry Forde is chief executive of B4RN (Broadband for the Rural North). His community broadband service offers speeds of up to 1Gbps to around 350 homes currently. It costs £30 per month.

Continue reading the main story

"Start Quote

There are plenty of people who will be ticked off as having next-generation access but they won't have it"

End Quote Barry Forde Chief executive B4RN

"All the projects that UK councils have signed with BT have killed off community broadband projects and they really need to make sure that doesn't happen this time around," he said.

"Councils need to be clear about exactly what they want to achieve and not just talk to BT about what it will give them. That is too much like the gamekeeper asking the poacher," he added.

He added that he was concerned that councils lacked the technical expertise to determine the best technology for rural residents.

The fibre-to-cabinet technology that is used by BT will not be "fit for purpose" in remoter areas because the speed of the service is so dependent on how far homes are from telephone cabinets, he said.

Mr Forde is also sceptical that the UK can reach its target of 95% fast broadband coverage by 2017.

He has personal experience of how the statistics can be misleading. He lives in the village of Quernmoor in Lancashire which, according to official figures, already has next-generation broadband access.

But in reality at least 10 homes in the village can only get speeds of 2Mbps or less.

"There are plenty of people who will be ticked off as having next-generation access but they won't have it," he said.

"My guess is that the promises of up to 97% coverage will actually amount to 70% of properties that can actually get speeds of 24 megabits or more," he said.

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