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WASHINGTON (Reuters) - Congress may have to stop broadband Internet providers from charging content providers higher fees for priority access to the Internet, a senior House of Representatives Democrat said on Tuesday.

“I am concerned that if Congress stands by and does nothing, we will soon find ourselves living in a world where those who pay, can play (on the Internet), but those who don't are simply out of luck,” Judiciary Committee Chairman John Conyers said.

Conyers, a Democrat from Michigan, may offer legislation that would make it a violation of U.S. antitrust law for network providers to discriminate against some content, an aide to the lawmaker said after a committee hearing on the issue.

That legislation would be similar to a bill introduced by Conyers during the last session of Congress, which was approved by the Judiciary committee but was never brought up for a vote of the full House.

Conyers echoed the concerns expressed by a civil liberties lawyer and other open-network advocates at the hearing. They argued that discrimination by broadband network providers could lead to censorship of political speech and shut out the voices of independent artists.

“To be sure, if we go in (that) direction, it will stifle future innovation on the Internet,” Conyers said.

At issue is the so-called “network neutrality” controversy that pits open-Internet advocates against some service providers, who say they need to take reasonable steps to manage ever-growing traffic on their networks.

Some of network neutrality complaints have centered on charges that broadband companies were engaged in anti-competitive conduct, while others involved charges of political censorship.

The net neutrality issue has been spotlighted by a series of incidents in which network operators, such as Comcast Corp and Verizon Wireless were accused of hindering certain online data moving over their networks, such as file-sharing or text-messaging.

Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Group Plc.

The FCC has been looking into complaints by consumer groups that Comcast has blocked some file-sharing services which are used to distribute large digital media files such as TV shows and movies.

Comcast denies impairing some applications and says it merely manages the system for the good of all users.

The FCC also received a separate complaint stemming from an incident last year in which Verizon Wireless denied a request from an abortion rights group to set up a text-messaging system for its subscribers. Verizon Wireless later reversed itself and allowed the text-messaging system.

Tuesday's hearing prompted an immediate response from an advocacy group that represents some broadband providers and other companies, Hands Off the Internet. It warned that imposing network neutrality regulations would inhibit the investment needed to upgrade broadband networks.

“Free speech is best protected through an unregulated Internet,” the group said in a statement.

Similar views were expressed by a legal expert who told lawmakers at the House hearing that broadband companies need flexibility to manage their networks and alleviate congestion from streaming video, Internet phone service and other bandwidth-hungry applications.

“Under these circumstances, requiring those most responsible for congestion to bear a greater percentage of the costs would be both good network management and fair from a consumer standpoint,” said Christopher Yoo, a law professor from the University of Pennsylvania.

Conyers denied that he was trying to regulate the Internet.

“Antitrust law is not regulation,” Conyers said. “It exists to correct distortions in the free market.”

Last month the chairman of a House Energy and Commerce subcommittee introduced separate legislation that would require regulators at the Federal Communications Commission to study the network neutrality issue and hold public hearings.

FCC ChairmanKevin Martin recently said that his agency was ready, if necessary, to step in and stop broadband providers from interfering with users' access.

(Editing by Carol Bishopric)

San Francisco - Adobe Systems plans to update its ColdFusion 8 technology within the next month with additional 64-bit platform support before launching a full-scale upgrade codenamed “Centaur” in 2009.

ColdFusion is a server platform for deploying Web applications based on Java. Applications are deployed as Java files. CFML (ColdFusion Markup Language) tags are turned into Java byte code. “It's basically a way to very rapidly deploy high-performance, highly scalable Java applications,” said Ben Forta, Adobe director of evangelism.

With a free update due this quarter known as “Gemini,” Adobe extends 64-bit support to Windows Server 2008, Mac OS X Leopard, Red Hat Enterprise Linux 5 and Suse Linux 10. This improves application performance, given the ability to address larger amounts of memory in 64-bit systems.

ColdFusion applications currently will run on those platforms only in 32-bit mode. “With the 'updater,' your code will run as is, but it will be a native 64-bit application now,” Forta said. ColdFusion 8 already supported the 64-bit Solaris OS platform.

Work also is under way on the planned Centaur release of ColdFusion, featuring continued integration with other Adobe technologies as well as productivity enhancements.

ColdFusion is positioned against other server-side platforms, including PHP (Hypertext Preprocessor), ASP.Net, and JavaServer Pages. A benefit of ColdFusion as opposed to those rivals is the ability to generate applications with just a few lines of code, Forta said.

A user of ColdFusion, Jeff Mitchell, CTO at Voe and Voe, which runs an online marketplace for content for mobile devices, said he believes ColdFusion offers better performance than PHP. Mitchell said he has worked with PHP.

But PHP does offer an advantage over ColdFusion as far as price, Mitchell said. “The price would be my only complaint in comparison to something like PHP, which is essentially free,” he said. Voe and Voe has paid about $6,000 as a one-time license fee for ColdFusion, said Mitchell.

Sixty-four-bit support for Linux would be a plus for Voe and Voe, which runs a flavor of Red Hat's Linux, Mitchell said. “We'll definitely give that a test once it comes out because our servers actually are 64-bit architecture at the moment, but it's running in 32-bit [mode],” said Mitchell. Voe and Voe basically runs its whole site on ColdFusion, which serves as an application server, Mitchell said.

Originally based on C and C++, ColdFusion was rewritten in Java several years ago to leverage the growing importance of Java on the server and to add capabilities like server monitoring, said Forta.

Meanwhile, ColdFusion, which Adobe acquired when it merged with Macromedia in December 2005, has been holding its own revenue-wise. “Under Adobe, we saw the strongest quarters we've seen yet with ColdFusion since the acquisition,” said Kristen Schofield, senior product manager for Adobe ColdFusion. She could not comment on actual revenue figures for ColdFusion.

Adobe officials cited analyst estimates of 400,000 developers using ColdFusion.

NEW YORK - Its biggest moneymaker is weeks away from hitting store shelves, but “Grand Theft Auto” publisher Take-Two Interactive Software Inc. posted fiscal first-quarter results that topped Wall Street’s expectations Tuesday.

The company also reiterated its rejection of a $2 billion buyout bid from rival video game publisher Electronic Arts Inc. The offer is too low, came at the wrong time, and failed to value Take-Two’s “extraordinary creative and human assets,” Chairman Strauss Zelnick said on a conference call with analysts.

Saying pre-orders for “Grand Theft Auto IV” have been better than expected, Take-Two also boosted its outlook for the fiscal year and issued a strong second-quarter forecast. Shares inched higher in after-hours electronic trading, but they were still below EA’s $26-per share offer.

For the three months ended Jan. 31, Take-Two posted a loss of $38 million, or 52 cents per share, compared with a loss of $21.5 million, or 30 cents per share, in the same period a year earlier. Excluding stock options costs and legal expenses, the latest quarter’s loss amounted to 41 cents per share.

Revenue fell 13 percent to $240.4 million from $277.3 million.

Analysts, on average, were expecting a wider loss of 51 cents per share, excluding one-time items, on sales of $211.7 million, according to a poll by Thomson Financial. The results also surpassed Take-Two’s latest guidance.

Take-Two said sales of “BioShock,” its critically acclaimed first-person shooter, as well as family oriented “Carnival Games” and GTA catalog titles fueled results.

The results show that Take-Two is working to diversify its portfolio and clean up its act, said Soleil Securities Group analyst Daniel Ernst.

Shareholders ousted most of the company’s management last spring over poor results and accounting troubles. The company is still working to resolve what it called “unusual legal matters,” including a stock options investigation and subpoenas by the New York District Attorney. Take-Two was subpoenaed in 2006 over hidden sex scenes in “Grand Theft Auto: San Andreas.” The company said resolving the regulatory matters is one of its “primary objectives.”

Zelnick, chairman since the March shareholder coup, said Take-Two has done its restructuring “and we think we have a very lean and efficient organization.”

GTA IV, the game that brings in the most money for the publisher, goes on sale April 29. It had been scheduled to hit shelves last October but Take-Two delayed the game saying it needed more time to develop it.

Video game companies have traditionally made most of their money during the holiday season, but Zelnick said as the industry matures companies will have more flexibility to scatter releases.

“I think the entire industry would be thrilled for this to become somewhat less of a Christmas business and more of a year-round business,” he said in an interview.

The company raised its outlook for the fiscal year and it expects second-quarter earnings of $1 to $1.10 per share, the midpoint of which is above analysts’ estimates of $1.02 per share.

Take-Two forecast sales of $450 million to $500 million for the quarter, the bulk of which will come from GTA IV. Analysts estimate quarterly sales of $462.8 million.

For the fiscal year ending in October, Take-Two expects a profit of $1.35 to $1.55 per share on sales of $1.25 to $1.4 billion.

Analysts are expecting earnings of $1.36 per share on sales of $1.36 billion.

Shares of New York-based Take-Two rose 35 cents, or 1.4 percent, to $25.00 in after-hours electronic trading. The stock had closed down 20 cents at $24.65.

Two of Take-Two’s largest shareholders, Oppenheimer Funds and FMR LLC, recently reduced their stakes in the company, according to regulatory filings dated Monday.

ST. LOUIS - Charter Communications Inc. announced Tuesday, just as the firm’s chief financial officer announced his resignation, that outside parties have asked about investing in the company.

Potential new investors approached controlling shareholder Paul Allen, the cable and telephone service provider said in a filing with the U.S. Securities and Exchange Commission.

Allen, who co-founded Microsoft Corp., gave the investors information about Charter that has not been publicly released, according to the filing, which didn’t indicate how much the parties might invest.

In a separate announcement, Charter said Tuesday that Chief Financial Officer Jeffrey Fisher resigned, effective April 4. Eloise Schmitz, now senior vice president for strategic planning, will be the company’s interim chief financial officer.

Charter spokeswoman Anita Lamont said Fisher’s resignation was a “personal decision” unrelated to the potential outside investment. She said the company could not comment on the potential investors because they had contacted only Allen.

Charter has languished for years, losing hundreds of millions of dollars sometimes in a single quarter. The company’s stock dropped 1 cent, or about 1 percent, on Tuesday to close at 93 cents.

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On the Net:

Charter Communications: http://www.charter.com

Sprint has rolled out a new software upgrade for its Mogul handset that will transform the device into a speed demon capable of achieving blistering broadband speeds on a par with DSL.

The free software release boosts the Mogul's average download speeds to the 600 Kbps to 1.4 Mbps range — a significant improvement over the 400-700 Kbps rates previously achievable. Even better, the new software throttles up average handset upload speeds from just 50-70 Kbps to the 350-500 Kbps range.

“The Mogul by HTC now delivers the full power of the Sprint Mobile Broadband Network from the convenience of a handset, giving our customers a speed and capacity advantage unavailable anywhere else in the marketplace,” said Sprint Vice President Danny Bowman.

Lightning-Fast Data Transfers

Sprint's speed-boosting technology, called EVDO Revision A, sports several additions to the original communications protocol while remaining backward-compatible with an earlier iteration known as EVDO Revision 0. According to Sprint, the vast majority of its wireless-coverage zones across the USA have been upgraded to the pumped-up EVDO spec.

The download further boosts Mogul handset performance by delivering GPS functionality to enable Sprint Navigation — a new service that provides audio and visual turn-by-turn directions and one-click traffic rerouting. Even better, the new software will enable the handset to function as a notebook modem capable of delivering lightning-fast data transfers to laptop subscribers.

Sprint's software release is the latest step in the wireless carrier's attempt to reverse recent declines in its subscriber base. Last month, Sprint revealed its subscriber count had declined by 108,000 customers in last year's fourth quarter. Company executives also said they expect to report additional subscriber churn for the current quarter.

To stem customer defections, Sprint is counting on its new “Simply Everything” plan, which offers subscribers unlimited voice and data for $99.99 a month. By promoting the combined use of the Mogul and its new pricing plan, Sprint is hoping for customer defections from Verizon Wireless, which has yet to introduce a handset with EVDO Revision A capabilities.

Replicating the PC Experience

Introduced by Sprint last June, the Mogul incorporates built-in CDMA EV-DO, Wi-Fi, and Bluetooth radios, a slide-out Qwerty-style keyboard, and a large touch-sensitive screen. Moreover, the wireless PDA incorporates a two-megapixel camera featuring flash, auto-focus and camcorder capabilities.

To replicate the familiar Windows PC-based experience, the Mogul runs Microsoft's Windows Mobile 6 operating system, together with ActiveSync software for fast and accurate synching of Outlook Mobile applications such as e-mail, calendar, task lists and contacts.

“Besides accessing core capabilities like calendar management, contact lists, personal and corporate e-mail, and viewing documents, customers can use the benefits of SprintSpeed to stay connected, informed and entertained at any time,” Bowman said.

The Mogul is available from Sprint for $199.99, inclusive of a $100 mail-in-rebate, when customers sign up for a two-year service agreement.

It seemed like the start of a brave new era. Last fall, Wal-Mart announced it had sold out its initial order of Everex's gPC, a super-cheap $200 computer running UbuntuLinux and tuned to Google's online applications. Now Wal-Mart has opted not to reorder the machines for in-store sales, although it's still being sold online. “This really wasn't what our customers were looking for,” spokesperson Melissa O'Brien told the Associated Press.

Wal-Mart sold the gPC in about 600 stores for a test, as well as online at walmart.com. Sales were “significantly more effective” online than on store shelves, it said. Wal-Mart is still carrying a newer version, the gPC2, for $199 without a monitor, and a laptop, the Everex CloudBook, for $399.

Bad Reviews

The difference between online and in-store sales could be explained by the appeal of inexpensive Linux machines to techies, while real-world consumers may be uncomfortable not buying a Windows machine or at least a Mac. But the gPC suffered not just from weak branding; according to reviews, it was underpowered.

“The gPC was slapped together to sell to Web-savvy people who have very little pocket money,” Joel Santo Domingo wrote in a holiday-season review for PC Magazine. “My advice to those people? Save up for just a little longer and buy something for at least $450 that runs Windows Vista.”

The gPC had “so many problems,” Domingo said, “I would have a problem recommending it to anyone, regardless of their tech smarts (or lack thereof).” He said the gPC was capable of running Ubuntu, but just barely, was not nearly as “green” as advertised, and had poorly integrated links to Google, Firefox and Wikipedia.

A Microsoft Conspiracy?

Some conspiracy-minded bloggers thought Wal-Mart's decision had more to do with alleged close ties to Microsoft than objective sales testing. Cnet.com's Matt Asay pointed out that Microsoft COO Kevin Turner is a 20-year veteran of Wal-Mart. (Turner worked his way up from cashier to CEO of Sam's Club.)

“Even when Wal-Mart has made motions toward Linux and open source, Microsoft (no doubt inspired by Turner) has been there to help it see the light. It was likely Turner who pushed Wal-Mart to go on the record as adopting SUSE Linux for its Linux deployments because of patent protection. Wal-Mart never goes on the record for anything related to IT purchases. The fact that it did in this case says a lot about the executive sleepovers that happen between the two companies,” Asay wrote.

Information Week's Serdar Yegulalp believes the fact the gPC was sold without a display limited its appeal to average consumers. In addition, Everex pitched the product as low-cost because users could rely on Google's free online applications, but low-price consumers may not have had the needed high-speed Internet connections.

BRUSSELS (AFP) - The EU's competition watchdog on Tuesday approved 99 million euros (152 million dollars) of French state aid for a consortium to build a European rival to US internet search giant Google.

The “Quaero” search engine project (Latin for “I search”), involving 23 companies led by French technology giant Thomson, has not yet got off the ground due to a lack of funding. Its estimated costs for the first five years are estimated at 199 million euros, half of which France — which has championed the idea — has agreed to fund.

Following an “in-depth examination,” the European Commission decided that the Quaero project “brings positive externalities for the community as a whole.”

However Quaero “is not spontaneously underpinned by the market owing to divergent interests within the consortium and to uncertainties regarding the project's chances of success,” the EU's executive arm said in a statement.

Any resultant distortions in competition “should be limited,” it added.

“We are confident that the positive contribution the programme will make to European research will outweigh any distortion of competition caused by the aid,” EU Competition Commissioner Neelie Kroes said.

Thomson's targetted clients for Quaero are internet network operators, content distributors and film production studios. When developed, it will be available for personal computers, mobile phones, televisions and other platforms.

The project was unveiled with great fanfare in 2005 by then French President Jacques Chirac as a Franco-German attempt to come up with a competitor to Google, the US company which has become the pre-eminent web search engine.

However, in late 2006 some of the German developers left the project, deciding to work on a “complementary” search engine called “Theseus”.

The Commission last year approved a German aid scheme for Theseus.

Society is creating digital data at a rapid pace, exceeding previous estimates by at least 10 percent, a new study by industry analyst IDC says. The report, called The Diverse and Exploding Digital Universe, estimates the size of the digital universe at 281 exabytes, or 281 billion gigabytes. The increased estimate is due to faster growth in digital cameras, digital-TV shipments and a better understanding of information replication.

The study also estimates that by 2011, the digital universe will grow an order of magnitude — 10 times — from its size in 2006.

Imperatives for IT

IDC said IT organizations will face three basic imperatives to deal with this explosion of data.

First, they will need to “transform their existing relationships with the business units,” IDC said. “It will take all competent hands in an organization to deal with information creation, storage, management, security, retention and disposal.” The digital universe is a business problem, “not a technical problem,” IDC said.

Next, organizations must develop “organization-wide policies for information governance: information security, information retention, data access, and compliance,” the analysts said.

Finally, IT must “rush new tools and standards into the organization,” including storage optimization, unstructured data searches, database analytics, virtualization, and management and security tools. “All will be required to make the information infrastructure as flexible, adaptable, and scalable as possible. We have many of the tools in place — from Web 2.0 technologies and terabyte drives to unstructured data-search software and the Semantic Web — to tame the digital universe. Done right, we can turn information growth into economic growth.”

Fast Growth in Images and the Cloud

The fastest-growing areas are related to digital television, surveillance cameras, Internet access in emerging countries, sensor-based applications, cloud computing, and social networks, the study found.

One intriguing development is the growth of packets over stored data. IDC researchers said increased use of RFID tags, Voice over IP and sensors means that “information containers” such as files, images and packets are growing 50 percent faster than the number of gigabytes. By 2011, we will generate 20 quadrillion containers, the report said.

For individuals, most of the data being created is from user activities like taking pictures or using cell phones. From “shadow” activities, it's surveillance photos, mailing lists, records of web searches and financial transactions. The shadow encompasses everything from what Amazon knows about book-buying habits, to what Google knows about Web and ad clicks, to what public video cameras record about citizens' activities.

“The idea of a digital shadow goes from curious or irritating to scary when you factor in the risk of identity theft,” the report said.

A Brave New Data World

On the enterprise side, some industries have digital footprints far exceeding their IT spending or contribution to gross domestic product. The media, entertainment and communications industries represent 10 times as much digital data as economic output, the study said, while the financial sector, which accounts for 20 percent of IT spending, generates only six percent of the digital universe.

Some 70 percent of the digital universe is created by individuals, but enterprises are responsible for the security, privacy, reliability and compliance of 85 percent.

“Few IT professionals are ready to embrace the new data types into their information-management domain; few understand the potential impact on computing and information architecture,” the study said.

San Francisco - IBM has upgraded its high-end enterprise search product with an improved user interface, and will announce next week the availability of a business intelligence tool that can be used with it to analyze call center data.

OmniFind Enterprise Edition 8.5 is now available and features a new dashboard view of search results, tight integration with other IBM collaboration products like Notes/Domino 8, and support for Japanese, Korean and Chinese characters.

The dashboard capability, called Top Results Analysis, complements the traditional search results list with a graphical representation of results. Users can click on the dashboard's bar charts to refine their search results.

“With this, we have taken a significant leap in findability,” said Aaron Brown, program director of search and discovery at IBM's Information Management group.

In addition, OmniFind Enterprise Edition 8.5 has links to data in other IBM collaboration software, such as Notes/Domino 8 and Lotus Quickr Services for WebSphere Portal as well as to IBM FileNet P8 Content Management.

For customers who also have OmniFind Analytics Edition and want to analyze data collected in their customer support call centers, IBM next week will announce the availability of ProAct. This business intelligence application, developed at IBM's India Research Laboratory and in use internally at IBM call centers, will be sold as a service engagement through the IBM Research unit.

ProAct is a text analytics tool designed to let companies mine structured and unstructured data generated in call centers and stored — and often forgotten — in a variety of repositories, such as e-mail inboxes, instant messages, and transcribed call logs.

ProAct is based on an IBM open-source software framework for building data analysis tools called UIMA (Unstructured Information Management Analysis). OmniFind Enterprise and OmniFind Analytics also use UIMA.

Version 8.5 reflects IBM's realization that enterprise search is becoming commoditized and that vendors in this market need to extend their products' capabilities in ways that differentiate them, said analyst Fern Halper, partner at Hurwitz & Associates. The new dashboard and text analytics capabilities are good examples of ways in which IBM can increase the value of OmniFind Enterprise Edition, which competes at the high end of the market against offerings from Autonomy and Fast Search & Transfer, Halper said. “IBM is doing a good job of thinking about how to enhance [the product],” she said.

Susan Aldrich, analyst and senior vice president at the Patricia Seybold Group, said that while some enterprise search products are designed as stand-alone applications, OmniFind Enterprise Edition is more of a platform and suite of tools that IT departments at medium and large companies can customize for their specific needs. “A key value [of the product] is this incredible opennesss and extensibility,” Aldrich said.

LOS ANGELES - Hulu.com, a joint venture between News Corp. and NBCUniversal, plans to open its online library of ad-supported TV shows and movies to the public on Wednesday, the company announced.

Users of the service will be able to view more than 250 full-length episodes of shows such as “The Simpsons” and “The Office,” as well as some 100 movies, including “The Big Lebowski” and “Ice Age.”

Short clips from films and TV shows such as “Napoleon Dynamite” and “Saturday Night Live” are also available through the service, which is accessible at Hulu.com, as well as on Time Warner Inc.’s AOL site, Yahoo Inc. and other popular Web portals.

The public debut of Hulu, which has been available to a test group by invitation since October, comes as studios seek ways to make money providing ad-supported video online.

The entertainment companies behind the service have been feuding with popular online video sites such as Google Inc.’s YouTube, where unauthorized clips from shows often appear. Viacom Inc., which owns MTV and Comedy Central, is suing Google for copyright infringement.

The Hulu.com programming comes from 50 TV networks, movie studios and Web-based producers of content. Viewers of some movies and TV shows are given a choice of advertisements to watch.

NBC Universal is a unit of General Electric Co.