Tuesday, February 15, 2011

Blackberry dismisses Nokia jibe

Research in Motion's boss has dismissed suggestions that its Blackberry devices are no longer a major player in the smartphone race.

Jim Balsillie told BBC News that the firm should not be written off.

It follows comments by Nokia's Stephen Elop, who said that the smartphone ecosystem was now a three horse race between Windows, Android and Apple.

"I don't know how you can say that we are not in the race," said Mr Balsillie at Mobile World Congress in Barcelona.

He said that Blackberry had experienced 70% growth last year and was the number one phone in the UK.

Figures from research firm Gfk show that the phone maker had 28.2% of the UK smartphone market in 2010.

However, the firm trails Google, Nokia and Apple in terms of market share, according to figures from Canalys.

"Are people writing us off? We have had huge growth in the last year. I wouldn't write us off," he said.

He was also keen to shake off RIM's business focussed image.

"80% of our subscribers are consumers."

Blackberry is forging a new link with younger, teenage consumers who are flocking to the handset because of Blackberry messaging.

Analysts have characterised 2011 as a year of transition for Blackberry as it moves away from its traditional business roots.

But for Mr Balsillie the greatest change is the move into larger devices.

"The biggest transition for us is that we are coming out with tablets," he said.

The firm announced its Playbook tablet device in September 2010.

In Barcelona, the firm also said that would be launching a 4G Playbook in the second half of the year. None of its tablets have yet hit shop shelves, but are expected in the coming weeks.

It has been a difficult year for RIM in countries such as Saudi Arabia and India, where governments want to gain greater access to the tight security system used for Blackberry's business users.

Mr Balsillie said the company's policy had not changed, despite significant growth amongst Indian consumers.

"We want to abide by local laws while also supporting our systems," he said.

RIM has always maintained that it cannot interfere with the encryption system set up to protect its business customers' messages.

It remained in talks with the government in India, said a spokesman.



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'Nuclear virus' targets uncovered

A powerful internet worm repeatedly targeted five industrial facilities in Iran over 10 months, ongoing analysis by security researchers shows.

Stuxnet, which came to light in 2010, was the first-known virus specifically designed to target real-world infrastructure, such as power stations.

Security firm Symantec has now revealed how waves of new variants were launched at Iranian industrial facilities.

Some versions struck their targets within 12 hours of being written.

"We are trying to do some epidemiology," Orla Cox of Symantec told BBC News. "We are trying to understand how and why it spread."

Repeated attacks

The worm first grabbed headlines late last year after initial analysis showed that the sophisticated piece of malware had likely been written by a "nation state" to target Iran's nuclear programme, including the uranium enrichment centrifuges at the Natanz facility.

Russia's Nato ambassador recently said the virus "could lead to a new Chernobyl," referring to the 1986 nuclear accident.

Although speculation surrounds which countries may have been involved in its creation, the origins of the worm still remain a mystery.

"Start Quote

One organisation was attacked three times, another was targeted twice"

End Quote Orla Cox Symantec

Iranian officials have admitted that the worm infected staff computers. However, they have repeatedly denied that the virus caused any major delays to its nuclear power programme, although its uranium enrichment programme is known to have suffered setbacks.

The new research, which analysed 12,000 infections collected by various anti-virus firms, shows that the worm targeted five "industrial processing" organisations in Iran.

"These were the seeds of all other infections," said Ms Cox.

The firm was able to identify the targets because Stuxnet collected information about each computer it infected, including its name, location and a time stamp of when it was compromised.

This allowed the researchers to track the spread of the virus.

Symantec declined to name the five organisations and would not confirm whether they had links to the country's nuclear programme.

However, Ms Cox, said that previous research confirmed that the worm could disrupt the centrifuges used to enrich uranium.

The five organisations were targeted repeatedly between June 2009 and April 2010, she said.

"One organisation was attacked three times, another was targeted twice," she said.

These waves of attacks used at least three different variants of the worm.

"We believe there was also a fourth one but we haven't seen it yet," she said.

Analysis of the different strains and the time it took between the code being written and it making its first infection suggested that the virus writers had "infiltrated" targeted organisations, she said.

The researchers drew this conclusion because Stuxnet targeted industrial systems not usually connected to the internet for security reasons.

Instead, it infects Windows machines via USB keys - commonly used to move files around and usually plugged into a computer manually.

The virus therefore had to be seeded on to the organisation's internal networks by someone, either deliberately or accidentally.

The virus could have been spread between the organisations by contractors that worked for more than one of them, she said.

"We see threads to contractors used by these companies," she said. "We can see links between them."

Big picture

Once on a corporate network, the worm is designed to seek out a specific configuration of industrial control software made by Siemens.

The code can then reprogram so-called PLC (programmable logic control) software to give attached industrial machinery new instructions.

Previous analysis suggests that it targeted PLCs operating at frequencies between 807 and 1210Hz, a range that includes those used to control uranium enrichment centrifuges.

Subverting PLCs requires detailed knowledge and, although security researchers had raised concerns about exploits in the past, had not been seen before Stuxnet.

Ms Cox said the firm's analysis revealed incomplete code in Stuxnet that looked like it was intended to target another type of PLC.

"The fact that it is incomplete could tell us that [the virus writers] were successful in what they had done," she said.

The novelty of the virus, combined with attack mechanisms that targeted several previously unknown and unpatched vulnerabilities in Windows, have led many to describe Stuxnet as "one of the most sophisticated pieces of malware ever".

However, research by Tom Parker from security firm Securicon says that elements of it were "not that advanced at all".

"I've compared this less advanced code to other malware and it does not score very highly," he said last year.

Ms Cox agrees that elements of the code and some of the techniques it uses are relatively simple. But, she says, that misses the bigger picture.

"If you look at the sum of its parts, then it is certainly very sophisticated," she said.



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EU updates law against child porn

The EU has taken a step towards common rules for cracking down on those who sexually abuse children and post images of the abuse on the internet.

A committee of Euro MPs backed an EU draft directive calling for child abuse images to be removed at source.

Where removal is impossible - for example, because web pages are hosted outside the EU - then the abuse images may be blocked by national authorities.

MEPs aim to adopt the new rules later this year, after further negotiations.

MEPs insisted that any moves to block access to images on the web must be accompanied by "transparent procedures and provide adequate safeguards" so that "the restriction is limited to what is necessary and proportionate".

The safeguards would include informing users of the reason for the block and informing content providers and users of their right to appeal.

Legal minefield

The original proposal from the European Commission called for mandatory blocking of child abuse websites in the 27-nation EU.

But in some cases, such blocking action could be seen as a violation of fundamental rights.

The amended text was adopted overwhelmingly by the European Parliament's Civil Liberties Committee on Monday.

The Commission recommended both the removal of child abuse content at source and blocking as a complementary tool, admitting that blocking was not always effective.

Internet blocking exists already in the UK, Denmark, Italy, Finland and Sweden.

"The experience of these countries shows that hundreds, or even thousands, of attempts to access child pornography sites are blocked every day," EU Home Affairs Commissioner Cecilia Malmstroem said last year.

An alliance of European child protection groups, including the UK's NSPCC, called the new directive an "important opportunity" to improve EU legislation aimed at preventing sexual crimes against children.

Making grooming a crime

The directive would make the sexual grooming of children via the internet a crime across the EU.

It seeks to make undercover police operations a "possibility... in national legislation" to target paedophile rings that prove particularly difficult for the authorities to access.

A range of measures would also boost legal support for child victims, as well as protections such as vetting of adults who work with children.

Offenders would face prison terms ranging from two years to more than 10 years, depending on the gravity of the crime.

In addition, EU states plan to step up partnerships with Russia, the US and other non-EU countries to combat child abuse on the internet.

MEPs will now discuss the directive with EU governments, with the aim of reaching a deal within months. Once adopted, the directive will have to be incorporated into national law EU-wide within two years.



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Twitter boss talks up mobile hope

Twitter chief executive Dick Costolo has dismissed talk of a $10bn deal with Google as "rumour" during a keynote speech at Mobile World Congress.

He laughed off questions about tie-ups with Facebook and Google, saying he didn't know "where such talk came from".

Instead he concentrated on the importance of the service's growth, especially on mobile.

According to Mr Costolo, 40% of tweets now come from mobile platforms.

He said that the service needed "deeper integration" in smartphones as well as to extend how it was made available to more basic phones.

Mr Costolo said that he wanted Twitter to work seamlessly on all mobile software.

"We want deep smartphone integration and stronger text messaging integration. It has to just work the same way everywhere it is used," he said.

But he offered little detail on how this would be achieved, beyond saying that he wanted more "single sign-ons".

"We want to be able to tweet from any app, without having to fire up another application," he said.

More detail on how Twitter could be integrated with mobiles would have been useful, said Eden Zoller, principal analyst at research firm Ovum.

"We expected more; for example what Twitter is doing to build its application ecosystem given the importance of apps in adding value to the service and the fact that a growing number of Twitter users interact with the service via apps," she said.

"We also hoped Twitter would show that it intends to leverage mobile location better than it is, and likewise search," she added.

Expansion plans

Currently Twitter's revenues are made in three key ways - from promoted trends, which allows companies to pay to appear in its top ratings, and sponsored and promoted tweets.

Much of the keynote speech was devoted to Twitter's phenomenal growth.

Twitter now regularly carries 130 million tweets a day and during major events, such as the football World Cup can see upwards of 3,000 tweets a second, Mr Costolo said.

The record, he revealed, was 6,000 tweets per second in Japan at New Year's Eve.

Mr Costolo also spoke of the importance of the platform as a political tool, with basic services such as speak-to-tweet, a partnership with Google which allowed users to send tweets as voicemail and read them as texts, proving crucial in recent citizen protests in Egypt.

He announced that a crowd-sourcing translation service will soon be coming to Twitter.

He revealed that increasing numbers of users are coming to the service as passive consumers.

"More users of Twitter aren't tweeting," he said.

"We have to understand that many are here just for consumption, they just want to follow content," he added.

He hinted at possible expansion of Twitter's social network.

"If new users come to Twitter and have a couple of social connections they are far more likely to remain engaged users," he revealed.

Windows world

Mr Costolo did also hint at possible tie-ups with TV advertisers, playing up Twitter's value during TV shows such as live sports, saying that the service was turning people against DVRs and on-demand services because they preferred to watch in "real time" so that they could tweet.

Twitter was allowing interactive TV to become a reality. "Twitter is the second screen," he said.

The assertion will be welcomed by TV advertisers which have seen revenues fall as a result of people using DVRs and other methods to watch content.

Ms Zoller was disappointed that Mr Costolo did not say more about how he intends for the company to make money.

"Twitter quoted figures on healthy growth and use, which is good but not surprising. What it didn't provide was concrete details on was how effective its nascent businesses are proving to be in driving revenues - lots of case studies of cool brands using Twitter but no hard line on the margins this brings to Twitter," she said.

In an earlier keynote speech, Microsoft chief executive Steve Ballmer revealed that it plans to integrate Twitter as one of a raft of updates to Windows phones, coming later this year.

Other updates include a version of Microsoft's latest browser, Internet Explorer 9, for phones and deeper ties with gaming services Xbox and Kinect.



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