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WASHINGTON (Reuters) - The head of the U.S. Federal Communications Commission said on Thursday that the agency was moving to respond to industry concerns about making the Internet open and widely available.

FCC Chairman Kevin Martin told a technology industry conference near San Diego that the commission heeded the views of technology industry companies in recent decisions.

“I think you've seen the commission, since I've become chairman, take some dramatic steps across all platforms in trying to preserve the ability for entrepreneurs to innovate,” Martin said in an interview with Reuters after appearing at the conference.

At the conference, Martin cited among other things the FCC's decision to impose an open-platform requirement on part of the valuable wireless spectrum the government auctioned off earlier this year.

At the urging of technology companies, such as Google Inc, the FCC required the winner of one block of spectrum to make it an “open platform” accessible to customers using any device or software application.

The winner of that block of airwaves, Verizon Wireless, has promised to support devices and software applications that it does not offer directly itself.

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

Martin said the requirement also prompted other wireless carriers to take steps to open up their wireless networks as well.

Martin also said the commission was moving to address concerns that the restrictions imposed by cable operators and other broadband networks would create a “bottleneck” that could restrict new Internet services.

The FCC is investigating complaints from consumer groups that Comcast violated FCC open-network principles by unreasonably hindered file-sharing services.

“I agree with (technology companies) that we want to make sure the networks don't become bottlenecks to innovation, and bottlenecks to entrepreneurs (and) consumers from getting the next generation of (online) services, applications or content,” Martin said after the conference.

(Editing by Louise Heavens)

NEW DELHI/OTTAWA (Reuters) - Research In Motion met Indian officials on Thursday to discuss government security concerns that e-mail sent on the BlackBerry device can't be traced or intercepted, but there was no news of a resolution.

The government, wary of attacks by militants, sees the handheld BlackBerry as a potential security risk and wants RIM to install servers in India so that e-mail traffic can be monitored.

RIM said it won't disclose confidential talks with any government. It told Indian customers in a recent letter that it does not have a 'master key' to decrypt messages and its security system does not have a 'back door' entry.

Two sources familiar with the issue said RIM held talks with the government on Thursday, and members of the Canadian High Commission in New Delhi were also seen at the telecoms ministry headquarters.

Indian media say commission officials have been attending the meetings to try and help resolve the issue.

The Canadian foreign ministry declined to comment on the meeting, but said it hopes RIM and the Indian Department of Telecommunications can reach a “mutually beneficial” solution.

“The government of Canada fully supports Research in Motion and encourages the government of India to treat all companies in a fair and equitable manner,” said Foreign Affairs spokesman Michael O'Shaughnessy.

Indian Telecoms Minister Andimuthu Raja said last week the Canadian firm had assured the government it would provide a solution in two months.

RIM said last Friday it does not have a copy of the customer's encryption key and would “simply be unable to accommodate” any such request.

“The BlackBerry security architecture was also purposefully designed to perform as a global system independent of geography,” the company said in a letter.

“The location of data centers and the customer's choice of wireless network are irrelevant factors from a security perspective since end-to-end encryption is utilized.”

Waterloo, Ontario-based RIM has some 114,000 BlackBerry subscribers in the fast-growth Indian market.

(Reporting by Devidutta Tripathy in New Delhi, and David Ljunggren and Susan Taylor in Ottawa; Editing by Janet Guttsman)

Ultraportable laptops will be a major focus at next week's upcoming Computex exhibition in Taipei, but a flood of pictures released online in recent weeks have spilled the beans for many companies, revealing key details of the most anticipated systems.

The most recent laptop to get outed is Acer's Aspire One. Pictures of the small laptop appeared online Thursday. Clad in a glossy white case, with what appears to be a 9-inch screen framed by black, the small laptop has an Acer logo on the lid and above the monitor. The words “Aspire One” are written in grey below the what appears to a full-size keyboard.

The Acer laptop is running an unidentified operating system that could be a Linux distribution. If the laptop does ship with Linux, it likely won't be the only option. The laptop's keyboard has a Windows key, which indicates Windows XP might be an option.

Inspired by the success of Asustek Computer's Eee PC– which was unveiled at last year's Computex show– hardware makers are set to release similar machines based on the Diamondville version of Intel's Atom processor. The Atom, which is designed to be inexpensive and consume little power, will be released at Computex alongside systems using the chip.

Of course, pictures can't tell the whole story. For example, the pictures of the Aspire One show a built-in camera above the screen and the company has previously discussed plans for a Diamondville laptop, but the images offer no indication of what other components lie inside the case.

Perhaps the worst-kept secret among Atom-based laptops is Micro-Star International's (MSI's) Wind, which has a 10-inch screen and will be available with either Windows XP or Linux.

MSI released details of the Wind in a press release dated April 18, nearly six weeks before the planned Diamondville launch. The announcement didn't say the laptop is based on Diamondville, but it didn't have to– that detail had already been disclosed at the Intel Developer Forum.

Within days of the Wind announcement, a video (since removed) appeared on YouTube showing two Turkish hardware reviewers playing with a Wind prototype. The video left few details of the laptop to the imagination, and screenshots were widely posted by bloggers.

Asustek also tipped its hand before Computex, with pictures of a revamped Eee PC appearing on a French blog, prompting speculation this could be the Atom version of the popular laptop.

SAN FRANCISCO (Reuters) - Microchip design company Marvell Technology Group Ltd (MRVL.O) on Thursday posted a better-than-expected quarterly profit thanks to cost cuts and strong sales of wireless products, and its shares jumped 17 percent.

The company, whose chips are in Apple Inc's (AAPL.O) iPhone and Research in Motion Ltd's (RIM.TO) BlackBerry, also reported forecast strong profit margins and expected them to hold up in the current quarter.

“This is almost like the old Marvell — really a truly outstanding, superstar company,” said American Technology Research senior analyst Shaw Wu, adding that the acquisition of cell phone chip unit XScale was finally paying off.

“They ran into some indigestion with this acquisition, but now it seems like they're getting back on the right track,” Wu said.

First-quarter net income rose to $69.9 million, or 11 cents per share, compared with a net loss of $52.8 million, or 9 cents per share, a year ago. Revenue rose 27 percent to $804.1 million and topped the company's guidance of $785 million.

Marvell's earnings of 24 cents per share, excluding some charges, appeared to beat the average analyst estimate of 13 cents, but it was not immediately clear that these figures were comparable, according to Reuters Estimates.

Adjusted gross margin expanded 3.1 percentage points from a year ago to 52.0 percent. Wall Street had expected 49 percent, Wu said.

Wu attributed the profit margin increase partly to new efficiencies at XScale, which Marvell purchased from Intel Corp (INTC.O) in 2006. Production moved from Intel plants to those of Marvell partners in January.

The company forecast adjusted gross margin to remain at 51 percent to 52 percent in the current second quarter but has not changed its long-term model of 50 percent, Chairman and Chief Executive Sehat Sutardja said during a conference call.

The company expects second-quarter revenue to range from $830 million to $840 million, a rise of 26 percent to 28 percent over last year, Sutardja said.

COST CUTS

Sutardja attributed the company's first-quarter net profit and increased revenue to reduced costs and better-than-expected sales of wireless devices.

“We surpassed our revenue targets, despite an uncertain economic environment and continuing pricing pressures in our core markets. Cost cutting initiatives implemented in prior periods also paid off,” Sutardja said in a statement.

The company will also announce next week its entry into the flash memory market.

“I view this as the biggest opportunity,” Sutardja said. “We want to put our foot in the door … and have early traction in that market.”

Also on Thursday, Marvell named Clyde Hosein as chief financial officer, effective June 23. Hosein was formerly chief financial officer of Integrated Device Technologies. Interim Chief Financial Officer George de Urioste, in the role since January, will then serve as acting chief operating officer.

The current acting chief operating officer, Pantas Sutardja, will focus his attention on his role as chief technology officer.

Shares of Marvell closed at $14.08 on Nasdaq but rose to $16.50 in extended trade. They had not closed at that price since late November.

(Editing by Phil Berlowitz)

LOS ANGELES (Reuters) - In 2001, Jonathan Waite was living in South Korea and lurking around in a futuristic online whodunit called “The Beast.”

Seven years later, most of his friends and acquaintances come from playing so-called alternate reality games, which blur the line between reality and fiction — and entertainment and advertising.

“It's a boon for a person like me, who likes to talk to people but doesn't always have people nearby,” said Waite, 31, who now owns ARGNet, the Alternate Reality Gaming Network, and lives near Winnipeg.

The story-driven, reality-bending genre is also referred to as immersive fiction and has a fellowship of devotees that is equally split between genders.

The games have already been used to create brand awareness for everything from beer and toys to high-end European automobiles and charge cards. Such efforts allow game makers to experiment with new types of game play, while deep-pocketed sponsors foot the bill.

Hamburger chain McDonald's (MCD.N) jumped into the fray this year with an Olympics-themed title called “The Lost Ring” and Coty has launched “The Case of the Coveted Bottle” to promote “Sex and the City” star Sarah Jessica Parker's new perfume.

“The Beast” — the game that hooked Waite — ran for 12 weeks in 2001 as a promotion for Steven Spielberg's film “A.I.” and is widely cited as the game that launched the modern ARG.

BEASTS, BEES AND SJP

Puppetmasters, who control ARG play, dole out clues via websites, mysterious mail deliveries, late night phone calls, billboards, podcasts and every other imaginable type of media.

Fans, who play for free, delight in the intellectual challenge and say working with others to solve puzzles and crack codes creates a strong sense of community.

Enthusiasts converging on a handful of sites like unfiction.com and despoiler.org swap tips and information about their favorite ARGs. Players host real-life meetups, some marry, and many maintain relationships long after the games end.

“I Love Bees,” one of the best known ARGs, started with an e-mail address planted in the credits of a preview for Microsoft Corp's (MSFT.O) 2004 “Halo 2″ video game.

The hint led players to what looked like a hijacked beekeeper's website, but was really a rabbit hole into a sprawling game that involved Web sites, pay phones and scads of computer audio files.

“The human brain is just set up to solve puzzles,” said Patrick Moorehead, director of emerging media at advertising firm Avenue A/Razorfish.

While the pure entertainment value of ARGs is clear, he questions whether corporate sponsors are seeing returns.

“I'm very skeptical of the value of doing these types of things,” he said.

Marketers that pay for ARGs are must tread lightly with their message. Players say a successful, sponsored ARG must use very subtle marketing techniques or risk turning players off.

Waite said he bought Activision Inc's (ATVI.O) Old West-inspired video game “Gun” after playing the ARG that promoted the console game title, but that he does not make a purchase after finishing every game.

“I played a great game that was sponsored by Audi, but I don't have the wherewithal to buy an Audi right now,” he joked.

AD-FREE ARG

Not all ARGs are backed by big corporations.

A handful of independent games, like 2006's “Sammeeeees,” have found success.

Some game makers have even attempted to tackle social issues.

In “World Without Oil” — a 2007 game that has particular resonance as gas and heating oil costs skyrocket — players are immersed in a global oil crisis.

The barriers to entry remain very high for independent ARG creators, who can see their teams and finances quickly overwhelmed by audience demands.

“Right now you can't create enough content by hand to keep up with the usage of the most dedicated players,” said Timothy Burke, a Swarthmore College history professor who also specializes in popular media and video games.

(Editing by Gary Hill)

HONG KONG (Reuters) - Hutchison Telecommunications (2332.HK) has sealed a deal with Apple Inc (AAPL.O) to market the U.S. firm's popular iPhone handset in the city and Macau as soon as the next quarter, a Hong Kong newspaper reported on Friday.

Existing subscribers of Hutchison Telecom, a unit of conglomerate Hutchison Whampoa (0013.HK), were expected to be the first users of the iPhone in an early program starting this summer, the South China Morning Post said.

“Due to the confidential agreement with Apple, we can't say too much beyond the formal announcement,” the newspaper quoted a Hutchison Telecom spokesman as saying.

The South China Morning Post, citing a statement from the international mobile and telecommunication services provider, disclosed the deal but did not specify whether Hutchison Telecom would launch the 2G or 3G model.

Hutchison Telecom officials were not immediately available for comment.

At present, Hong Kong people can only buy the iPhone, a mobile phone that allows Internet access and plays music, through unofficial channels often in the form of parallel imports.

Other mobile operators in Hong Kong were expected to announce similar partnerships with Apple to launch 3G iPhones shortly, the newspaper said.

China Mobile (0941.HK), the world's largest mobile phone operator, said earlier this year it had called off talks with Apple to launch the iPhone in China.

Analysts had expected talks to fail at least initially, predicting that the two sides would lock horns over revenue sharing and a series of technical difficulties.

(Reporting by Donny Kwok; Editing by Anne Marie Roantree)

Hackers knocked Comcast.net offline late Wednesday night, preventing customers from getting to their Comcast Web mail and account records on the company's Internet portal.

The criminals somehow got their hands on passwords used to alter domain-name registration information with Comcast's registrar, Network Solutions, said Susan Wade, a Network Solutions spokeswoman. With access to the Comcast.net record, the hackers were able to switch the DNS (Domain Name System) servers associated with Comcast.net and redirect Internet traffic to their own server. They also added offensive comments to the Comcast.net record.

Visitors who went to Comcast's portal between approximately 11 p.m. Eastern time Wednesday and 12:30 a.m. Thursday were greeted with either a “Site under construction” message or a cryptic note reading: “KRYOGENIKS EBK and DEFIANT RoXed COMCAST sHouTz To VIRUS Warlock elul21 coll1er seven,” an apparent reference to the hackers who had compromised the site and to their friends.

This attack is connected to recent defacement of the MySpace.com profiles of Justin Timberlake, Hilary Duff and Tila Tequila, said security researcher Dancho Danchev.

No one knows how the hackers gained access to Comcast's Network Solutions account. In the past, registrars have been tricked into handing over control of Internet domains. But Danchev said that lately, criminals have also been using phishing attacks to try to take control of Web domains.

Throughout Thursday, the Comcast.net Web page continued to experience problems. For many visitors, the page was missing graphics and had the look and feel of an early 1990s Web site.

“We believe that our registration information at the vendor that registers the Comcast.net domain address was altered, which redirected the site, and is the root cause of today's continued issues as well,” Comcast said Tuesday in a statement. ” We have alerted law enforcement authorities and are working in conjunction with them.”

Neither Comcast nor Network Solutions can say how the hackers got their hands on the Comcast password, but this type of problem is not unheard of, Wade said. “It's not frequent, but it does happen,” she said.

There are steps that companies can take to secure their domain name registration accounts, Wade said. “We tell folks, especially big companies, to consolidate domains so you have someone in charge of all the domains,” she said. “We encourage people to update their passwords on a regular basis and make sure the passwords are complicated.”

NEW YORK (Reuters) - Redlasso, a video-sharing site for bloggers, has hired former CBS Corp Chief Executive Michael Jordan to help it smooth relations with the media industry after broadcast programmers sought to shut down its practices.

General Electric Co's NBC Universal, News Corp's Fox News and Fox Television Stations, CBS and Allbritton Communications Co in May demanded Redlasso stop violating their copyrights by streaming video clips of their news, sports and TV shows without permission.

In a response delivered Thursday afternoon to lawyers representing the five broadcast programmers, Redlasso said it would continue business as usual making clips of news broadcasts available to bloggers.

“We've been in conversation with them all along,” Redlasso CEO Al McGowan told Reuters in a phone interview. “We were not surprised, but disappointed we received the letter.”

McGowan said his company had been in talks with the broadcasters on how to design a service that would be useful to bloggers searching for news clips, while building a business model that ensured these clips are protected.

Like users of Google Inc's YouTube, Redlasso users can embed clips, or place them on their Web page. The clips and any associated advertising are controlled by Redlasso, McGowan said. Clips typically run under 2.5 minutes.

Unlike YouTube, which has taken down clips identified by content owners as having been uploaded without their permission, Redlasso said on Thursday it will continue with its practice.

McGowan said he hoped hiring a media industry veteran like Jordan could help rekindle discussions to license the content for a business that could help media companies make money off news videos that typically have a shorter shelf life compared to entertainment.

“I have joined forces with Redlasso because I have the greatest belief in the solution offered by the company and its long-term viability,” Jordan, former CEO of CBS and Westinghouse Corp, said in a statement.

“Redlasso is converting a marketplace challenge into an opportunity for content providers, advertisers and the online community, creating a new value for traditional perishable content.”

The service, which has been in a password-protected test stage since November 2007, has proven popular with bloggers, including the Huffington Post, Perez Hilton and Politico.com.

In April, the site received 24 million unique visits and 10 million video plays, the company said.

A representative for NBC Universal was not immediately available for comment.

(Reporting by Kenneth Li, editing by Richard Chang)

Is the hoopla around Microsoft Windows 7 much ado about nothing? We won't really know until the operating system is released in 2010.

Ever since Microsoft Vice President Julie Larson-Green demonstrated Windows 7 technology at the D: All Things Digital conference earlier this week, the technology world has been buzzing about the possibilities. But some analysts say the hype is premature.

Windows 7 will tout multi-touch technology that lets fingers draw rudimentary images. During the demo, Larson-Green drew a landscape on a Dell laptop. The demo also included navigating an online map to find a nearby Starbucks. Microsoft figures the technology is a natural for image editing and navigation.

A Cautious Approach

Of course, this isn't the first time the industry has previewed Microsoft's touchscreen technology. Microsoft demonstrated its tabletop and kiosk-like displays at last year's D: All Things Digital conference. Still, some analysts are cautious.

Michael Cherry, an analyst at Directions on Microsoft, said he doesn't count demos done by senior executives as big news, particularly demos which are so short and in which the company will not address questions about underlying technology.

“I look at the demo as interesting, but you still aren't showing me why I absolutely have to have it. I still don't know what kind of hardware I might need to buy to use it. And I still don't know if applications have to be modified to take advantage of it,” Cherry said. “So I am not prepared to sit on the edge of my seat for the entire time hoping it is something I will like.”

Microsoft 'Excited'

Nonetheless, the buzz is building, Chris Flores, a Microsoft product director, wrote on the official Windows Vista blog, about the possibilities of touchscreen technology on a PC.

“What becomes even more compelling is when this experience is delivered to the PC — on a wide variety of Windows notebooks, in all-in-one PCs, as well as in external monitors,” he wrote. “In working with our broad ecosystem of hardware and software manufacturers, we're excited to be showing some of the great work and investments we are working on in Windows 7.”

Larson-Green demonstrated the possibilities by sliding her finger along the screen to navigate. To zoom in, she simply spread her fingers. A video of the demonstration shows playing a piano keyboard by touching the keys on screen, suggesting new possibilities for digital-music applications.

Where's the Beef?

But questions remain. If you had to pay an extra $1,000 for a machine with Windows 7, Cherry asked, would you still want it? What's more, he's not sure if the public saw the actual multi-touch screen in Windows 7 or if it was an elaborate mock-up.

“To leap from that quick demo and then make any conclusions about what Windows 7 looks like or what its features are going to be is too big a leap,” Cherry said. “Microsoft is saying to us one day it wants to be careful about how it discusses this product. Then the next day they are saying, 'Look at this, it's really cool.' I'd rather see less discussion and less demos of Windows 7 until Microsoft has the ability to tell us all the details behind the technology.”

Six cable-TV operators that serve more than 82 percent of U.S. cable households have inked an agreement with Sony Electronics that will soon make it possible for cable subscribers to forego the use of stand-alone set-top boxes. The enabling Tru2way technology, based on Sun Microsystems' Java runtime environment, enables interactive capabilities in TV sets, gaming consoles, portable media players, and even mobile phones.

Sony executives say the agreement with Bright House Networks, Cablevision, Charter, Comcast, Cox Communications, and Time Warner will pave the way for TV sets equipped with Tru2way software to access digital video-recording capabilities, video on demand and interactive programming guides.

“This marketplace agreement is good news for consumers,” said Edgar Tu, senior vice president of Sony Electronics. “A national plug-and-play digital cable standard for interactive TV receivers, recorders and other products that is transferable and viable wherever you live is ideal for today's mobile society.”

The Slide Toward Oblivion

Samsung Electronics recently unveiled several new Tru2way-capable products, including HD-DVR and set-top devices. Even better, Samsung's launch of an LCD TV with Tru2way built into the box signals that the venerable set-top box could begin sliding toward oblivion as soon as this year's holiday shopping season.

Sony's agreement with the nation's top cable giants, which together serve more than 105 million U.S. homes, will eliminate cable set-top box deployment headaches and maintenance costs for cable-TV operators. Another perk: The deal will end those pesky monthly set-top rental fees that many consumers hate.

“The goals of Tru2way are to provide a universal, national platform that will enable consumers to receive cable's interactive services without a set-top box,” noted Joy Sims, a spokesperson for the National Cable TV Association. “And the same national platform will allow content creators to develop new applications that can be deployed to all systems [with] Tru2way, using the 'write once, run anywhere' philosophy.”

Sparking Innovation

For example, Tru2way is expected to create a national footprint for developers of interactive programs and advertisements, allowing them to produce products that will work on cable systems in nearly every U.S. market. Moreover, the technology fulfills another cable-industry goal by incorporating secure digital interfaces that protect copyright owners while giving consumers certain home-recording rights.

Future offerings may include interactive ads and on-screen Web browsing. For example, earlier this month, Zodiac Interactive showed off new technology that supports applications for enabling local search, weather, traffic, sports scores and local news to be displayed on-screen without disrupting the TV-viewing experience.

Sony's announcement has received support from the Consumer Electronics Association (CEA), which had been backing a rival standard known as DCR+. Regarding DCR+, CEA spokesperson Meghan Henning would only say that right now it is hard to tell “whether alternative technical proposals for cable-equipment compatibility will be chosen by some cable operators or equipment manufacturers in the future.”

CEA Chief Executive Gary Shapiro said his organization is pleased that the technical challenge has been resolved without the need for regulatory intervention and added that the CEA is looking forward “to working with our cable colleagues to ensure Americans across the country have access to high-value cable content while using the equipment of their choosing.”