WhatsApp to add voice calls after Facebook acquisition

BY LEILA ABBOUD AND ERIC AUCHARD

(Reuters) - WhatsApp will add free voice-call services for its 450 million customers later this year, laying down a new challenge to telecom network operators just days after Facebook Inc scooped it up for $19 billion.

The text-based messaging service aims to let users make calls by the second quarter, expanding its appeal to help it hit a billion users, WhatsApp CEO Jan Koum said at the Mobile World Congress in Barcelona on Monday.

Buying WhatsApp has cemented Facebook's involvement in messaging, which for many people is their earliest experience with the mobile Internet. Adding voice services moves the social network into another core function on a smartphone.

On Monday, Chief Executive Mark Zuckerberg defended the price paid for a messaging service with negligible revenue. He argued that rival services such as South Korea's KakaoTalk and Naver's LINE are already "monetizing" at a rate of $2 to $3 in revenue per user per year, despite being in the early stages of growth.

Media reports put WhatsApp's revenue at about $20 million in 2013.

"I actually think that by itself it's worth more than 19 billion," Zuckerberg told the Mobile World Congress. "Even just independently, I think it's a good bet."

"By being a part of Facebook, it makes it so they can focus for the next five years or so purely on adding more people."

WhatsApp's move into voice calls is unlikely to sit well with telecoms carriers.

WhatsApp and its rivals, like KakaoTalk, China's WeChat, and Viber, have won over telecom operators' customers in recent years by offering a free option to text messaging. Telecom providers globally generated revenue of about $120 billion from text messaging last year, according to market researcher Ovum.

Adding free calls threatens another telecom revenue source, which has been declining anyway as carriers' tweak tariffs to focus on mobile data instead of calls.

WITH, NOT AGAINST

Since the advent a decade ago of Skype's voice over Internet service, which Microsoft Corp has acquired, and the rise of Internet service providers like Google Inc, telecom bosses have gotten used to facing challengers whose services piggyback on their networks. But carriers complain that the rivals are not subject to the same national regulations.

Mats Granryd, the CEO of Swedish mobile operator Tele2, said he was happy to partner with the likes of WhatsApp because of the additional data traffic they generate. But he shared the concerns of other network operators that they must operate under strict national regulations that Internet companies are not subject to.

"They (Internet firms) need to be regulated a little bit more and we need to be regulated a little bit less," said Jo Lunder, who heads Russian mobile network operator VimpelCom.

Vodafone CEO Vittorio Colao said he did not understand how such an important acquisition as the Facebook-WhatsApp deal could go unchallenged at a time when European network operators were facing intense regulatory scrutiny.

"These types of deal are a clear indication that the world is changing and the regulations don't fit anymore," Colao said on the sidelines of the conference.

Both Facebook and WhatsApp CEOs have cast themselves as partners to telecoms network operators.

On Monday, Koum also announced a partnership with E-Plus, the German subsidiary of Dutch group KPN, under which it will launch a WhatsApp-branded mobile service in Germany.

The European Parliament is set to vote on Monday night on a package of proposed telecoms market reforms which among other provisions would restrict the ability of carriers to charge internet companies like Facebook to give them an enhanced service in handling their network traffic.

Samsung debuts top-end smartphone, with wearables on the side

(Reuters) - Samsung Electronics unveiled a new smart watch and fitness band along with the latest version of its flagship Galaxy smartphone on Monday, demonstrating how the battleground for innovation is shifting from the hand to the wrist.

The world's biggest smartphone maker set a trend less than six months ago for wearable devices that link to mobile handsets with its Galaxy Gear watch, which has seen rivals like Sony and Huawei follow in its wake.

Samsung's Gear 2, which runs on the Tizen operating system rather than Google's Android software, can monitor the wearer's heart rate, a function used in increasingly popular health and fitness apps, or individual programmes.

The Samsung Gear Fit, also targeting the fitness sector, has a curved screen and features including a pedometer and heart rate monitor, Samsung said.

The Galaxy S5 itself, which will be available in April, includes a slightly bigger screen than its predecessor, at 5.1 inches against 5 inches, improved camera technology and better protection against water and dust, Samsung said.

It also has a fingerprint scanner on the home button, it said, which can unlock the device and provide security credentials in a swipe.

It will enter a market that has seen slowing demand at the top-end, where Samsung is already in fierce competition from Apple Inc and Chinese vendors

Facebook Messenger heads for Windows Phone

BY LEILA ABBOUD AND ERIC AUCHARD

(Reuters) - WhatsApp will add free voice-call services for its 450 million customers later this year, laying down a new challenge to telecom network operators just days after Facebook Inc scooped it up for $19 billion.

The text-based messaging service aims to let users make calls by the second quarter, expanding its appeal to help it hit a billion users, WhatsApp CEO Jan Koum said at the Mobile World Congress in Barcelona on Monday.

Buying WhatsApp has cemented Facebook's involvement in messaging, which for many people is their earliest experience with the mobile Internet. Adding voice services moves the social network into another core function on a smartphone.

On Monday, Chief Executive Mark Zuckerberg defended the price paid for a messaging service with negligible revenue. He argued that rival services such as South Korea's KakaoTalk and Naver's LINE are already "monetizing" at a rate of $2 to $3 in revenue per user per year, despite being in the early stages of growth.

Media reports put WhatsApp's revenue at about $20 million in 2013.

"I actually think that by itself it's worth more than 19 billion," Zuckerberg told the Mobile World Congress. "Even just independently, I think it's a good bet."

"By being a part of Facebook, it makes it so they can focus for the next five years or so purely on adding more people."

WhatsApp's move into voice calls is unlikely to sit well with telecoms carriers.

WhatsApp and its rivals, like KakaoTalk, China's WeChat, and Viber, have won over telecom operators' customers in recent years by offering a free option to text messaging. Telecom providers globally generated revenue of about $120 billion from text messaging last year, according to market researcher Ovum.

Adding free calls threatens another telecom revenue source, which has been declining anyway as carriers' tweak tariffs to focus on mobile data instead of calls.

WITH, NOT AGAINST

Since the advent a decade ago of Skype's voice over Internet service, which Microsoft Corp has acquired, and the rise of Internet service providers like Google Inc, telecom bosses have gotten used to facing challengers whose services piggyback on their networks. But carriers complain that the rivals are not subject to the same national regulations.

Mats Granryd, the CEO of Swedish mobile operator Tele2, said he was happy to partner with the likes of WhatsApp because of the additional data traffic they generate. But he shared the concerns of other network operators that they must operate under strict national regulations that Internet companies are not subject to.

"They (Internet firms) need to be regulated a little bit more and we need to be regulated a little bit less," said Jo Lunder, who heads Russian mobile network operator VimpelCom.

Vodafone CEO Vittorio Colao said he did not understand how such an important acquisition as the Facebook-WhatsApp deal could go unchallenged at a time when European network operators were facing intense regulatory scrutiny.

"These types of deal are a clear indication that the world is changing and the regulations don't fit anymore," Colao said on the sidelines of the conference.

Both Facebook and WhatsApp CEOs have cast themselves as partners to telecoms network operators.

On Monday, Koum also announced a partnership with E-Plus, the German subsidiary of Dutch group KPN, under which it will launch a WhatsApp-branded mobile service in Germany.

The European Parliament is set to vote on Monday night on a package of proposed telecoms market reforms which among other provisions would restrict the ability of carriers to charge internet companies like Facebook to give them an enhanced service in handling their network traffic.

BBM and Photoshop, now on your Lumia devices!

Initially BBM will be exclusive to Nokia’s Lumia devices, and later expanded to all Windows Phone devices

At its Mobile World Congress event today, Stephen Elop announced that BlackBerry Messenger will be released in the “coming months” for its Windows Phone devices.

At first, BBM will be exclusive to Nokia’s Lumia devices but will likely be released for all Windows Phone devices after the first six months, just like previous Lumia exclusives.

If Nokia were to pre-install BBM on its Lumia devices it could be a powerful driver of new users to BlackBerry’s messaging service, which the company desperately needs as it struggles to compete with other messaging services such as Line and Whatsapp.

Nokia also announced that Photoshop will also be coming to Lumia, supporting Nokia's strong offering in imaging.

Super sales & shopping bonanza kicks off tomorrow at GITEX shopper spring 2014

All eyes will be on Dubai World Trade Centre as it hosts the region's biggest consumer IT and electronics retail show, GITEX Shopper Spring 2014, tomorrow (Wednesday, 23 April). With unbeatable prices on over 30,000 up-to-the minute gadgets, new product launches, bundled deals and an array of exciting competitions, the second edition of GITEX Shopper Spring promises to be the most exciting four-day consumer electronics extravaganza in the region.

Regional power retailers including E-City, Emax, Jacky's Electronics, Jumbo Electronics, Max Electronics, One Mobile, Plug-Ins and Sharaf DG, as well as top global brands such as Acer, Dell, HP, Lenovo, LG, Nestle, Nokia, Toshiba and Samsung (platinum sponsor), are determined to offer the best deals possible on gadgets that include digital SLR cameras, smartphones, tablets, laptops and SmartTVs.

Visitors to this year's show will be able to test the latest products, compare performance and options, before bagging a bargain thanks to the Experience Zones set up by leading brands including Lenovo, Nokia, Samsung and Toshiba among others. Experts will be on hand to help visitors learn about the latest products and upgrades and offer advice on what's best and why.

Whether you're looking for the latest in LED TVs, the smartest in smartphones, or the trendiest in tablets and laptops, GITEX Shopper is the perfect one-stop shop destination to discover the latest products to improve your leisure time, home, workplace or school, said Trixie LohMirmand, Senior Vice President, Dubai World Trade Centre (DWTC), organiser of GITEX Shopper Spring. With exclusive show offers on more than 30,000 different products, bundled deals and launches of the latest technology products under one roof, the show offers visitors more choice, more convenience and an unrivalled shopping experience.

Adding to the dynamic festival feel of GITEX Shopper Spring 2014, millions of dirhams worth in prizes will also up for grabs with promotions, raffles and giveaways, and a Limited Edition Honda Accord to be won every day of the show.
We are proud to be the official car sponsor of GITEX Shopper Spring which is undoubtedly one of the highlights on Dubai's events calendar. Honda has always been known as a technological advanced company and we believe the show is the right platform to connect with our customers. Visitors to our stand, No EX-1 in the Plaza 3 area, will receive a special GITEX Shopper discount voucher of up to AED 5,000 which can be redeemed at our showrooms on the latest Honda Accord LXB and CR-V LX models, said Colin Cordery, Regional Managing Director of Al-Futtaim Honda.

Visitors to GITEX Shopper Spring 2014 will be delighted with the central location of the show which enjoys a dedicated Metro station just steps away from the show, and trains running from 10:00am on Friday, 25thApril thanks to a special agreement with the RTA. Ample parking, a smorgasbord of food and beverage outlets and a range of interactive and entertaining activities will add to the festival atmosphere at the show.

Cricket enthusiasts visiting GITEX Shopper Spring will not miss the Indian Premier League games taking place this week thanks to a LG giant screen which will be located between Hall 3 and the Arena.

GITEX Shopper Spring 2014 will take place from 23 -26 April in Sheikh Saeed Halls 1, 2 and 3 and will open from 11:00am shy; 11:00pm every day. Tickets are priced at AED15/- per person and are available at the venue and at select Emarat outlets. Entry is free for children under the age of five.

Windows 8: introducing picture passwords

By Matt Farrington-Smith

Windows 8: introducing picture passwords
Forget trying to remember a complicated text password - Windows 8 introduces a different way of protecting your computer... the picture password.

A new form of password security is being introduced in Windows 8 - picture passwords. But what are they, why use them, and how do they work? Here's all the answers...

Why picture passwords?

Why introduce picture passwords in the first place? Steven Sinofsky - Microsoft's President of Windows Division - explained in a blog post: "One of the neat things about the availability of a touch screen is that it provides an opportunity to look at a new way to sign in to your PC... Providing a fast and fluid mechanism to sign in with touch is super important, and we all know that using alpha passwords on touch-screen phones is cumbersome."

What is a picture password?

A Windows 8 picture password involves drawing three gestures on a picture of your choice. Instead of having to pick from a generic set of Microsoft images, it is up to the user to select a memorable photo.

When drawing the gestures, you are free to use any combination of circles, straight lines or taps.

It is important to remember the size, position and direction of your gestures (and the order in which you make them) as they all form part of your picture password. You will need to redraw these same gestures whenever you log onto your Windows 8 device.

A visual representation of the picture password scoring function.

On the science behind the new method:

When you attempt to sign in with picture password, Windows evaluates the gestures you provide, and compares the set to the gestures you used when you set up your picture password. Windows then looks at the difference between each gesture and decides whether to authenticate you based on the amount of error in the set.

If a gesture type is wrong - it should be a circle, but instead it's a line - authentication will always fail. When the types, ordering, and directionality are all correct, Windows looks at how far off each gesture was from the ones it saw before, and decides if it's close enough to authenticate you.

Not for everyone

Microsoft recognises that this new password system isn't for everyone as Program manager - Zach Pace, explains:

"Although we're very happy with the robustness of a picture password, we know that there are a variety of businesses for which security is paramount, and anything less than a full password is unacceptable. As such, we've implemented group policy that gives a domain administrator the freedom to choose whether picture password can be used. And of course, on your home PC, picture password is optional as well."

Choosing a picture password

As with all forms of authentication there are a number of best practices to follow when it comes to choosing a password.

In a further blog post Jeff Johnson, the Director of Development, offers password guidance and states some of the reasons why this new security measure is a robust solution.

"It is also interesting to compute the odds of an attack succeeding in various scenarios... Gestures are based on a 100 x 100 grid, giving even the simplest gesture (the tap) a potential of 10,000 values (given proximity matching, this number is effectively reduced to 270). In reality, the number of points of interest (POI) is much lower than that - there are only so many memorable locations in a given photograph."

"We assume that taps are directly on a POI, circles only come in two sizes (say, small around the point, and larger around the point) and two directions (clockwise and counterclockwise), and lines always connect two POIs. Because this isn't strictly true, the number of permutations is actually even greater."

Picture password tips

Pick a photo that has at least 10 points of interest. A point of interest is an area that can serve as a landmark for a gesture - a point that you would touch, places you would connect with a line, an area you would circle.

Use a random mixture of gesture types and sequence. If you choose to use a tap, a line, and a circle, randomly choose the order of those gestures; this creates 6 times the number of combinations as a predictable order. And always be aware that smudges left on the screen by your finger could potentially identify your gestures.

It's up to you...

At this juncture it is important to remember that Windows 8 has not been designed exclusively for touch screens and tablets. Yes, it will support touch devices, but a classic Windows can also be found nestling inside. It's just a question of how you want to use Windows 8.

Troika inspectors return to Portugal for last bailout check

International inspectors from the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) on Tuesday started their last on-site evaluation of how Portugal had fared in honoring the conditions attached to its 78-billion-euro ($107.8-billion) bailout granted in 2011.

The IMF said Portugal\'s recent return to economic growth had boosted the eurozone member's near-term prospects, but more needed to be done to free up the jobs market with a view to cutting labor costs and reducing unemployment.

Providing a source of confidence, the country announced it would launch an auction of 10-year sovereign bonds on Wednesday, the first in three years and signaling Portugal's transition back to the regular debt market.

Clean exit or not?

Lisbon said it hoped the auction would wash about 750 million euros into state coffers, with Portugal's benchmark 10-year bond yield hitting its lowest level of 3.68 percent in eight years last week.

If everything goes according to plan, the country may well choose to leave the international bailout scheme without an option of a standby loan, following in the footsteps of Ireland. The government said it would define by May 5 whether it would aim to make such a clean exit.

Portugal's current economic upswing has come about mainly because of a surge in exports despite the relatively strong euro and a nascent recovery in consumer demand.

Under its bailout scheme, the nation has to cut its budget deficit to 4 percent of total economic output throughout this year, and then to 2.5 percent in 2015 to meet EU deficit rules.