Six net neutrality principles proposed

The Federal Communications Commission (FCC) in the U.S. voted last week to start a process to formulate rules that could force Internet Service Providers (ISPs) to uphold six principles that would preserve net neutrality, or what the FCC terms "open Internet".

FCC Chairman, Julius Genachowski, said rules on net neutrality are necessary to protect innovations on the Internet and to preserve the kind of openness that has allowed the Internet to flourish. He said there have been situations in which ISPs have degraded data streams or even blocked access to lawful applications, and fair rules are necessary to avoid the potentially damaging consequences of having the openness of the Internet diminished.

Opponents, on the other hand, say the Internet has grown so rapidly because of the lack of rules and regulations, and that rules are not needed. Some opponents have also suggested that introducing rules could set a precedent for other countries to introduce regulations covering Internet use.

The principles suggested are that ISPs should allow users to:

1. send and receive all lawful content
2. use all lawful services and applications
3. use all lawful devices that do not damage the network
4. access all network, service, content and application providers

The principles will also ensure ISPs:

5. do not discriminate against lawful content, services, applications, or devices
6. reveal any practices that could limit the previous five principles

The rules have been sought by many large Internet companies such as Google, Facebook and Amazon.com, many consumer advocacy groups such as Free Press and Public Knowledge, many members of the FCC, and Internet pioneers like David Reed and Vint Cerf. Supporters say that without rules ISPs will change their price structures to tiered systems with the highest level services out of the financial reach of many entrepreneurs wishing to start their own Internet businesses. Those in favor of rules are also worried that without them some applications, such as VoIP, could become unaffordable or could even be banned for many people, thus reducing their voice call options.

Opponents to proposed net neutrality rules include Internet providers such as Verizon and AT & T, who say the rules would prevent them charging more for premium services, and the higher charges provide the incentive for the investment in network upgrades to boost performance. The result could be either more expensive rates across the board, or paying for Internet traffic by the byte.

The proposed FCC rules would also have effects on businesses, especially those with a well-developed Internet presence. Higher flat rates would push up Internet access costs for business and customers alike, and could result in a decrease in demand for online services because of their increased expense. This could have especially serious effects on businesses such as websites selling high definition video downloads.

If the FCC's six principles are adopted the effects on home users could be higher monthly charges or higher costs for downloads, but they would still be able to make phone calls using Internet services such as Skype, which would not be blocked. If the rules are not adopted, ISPs are likely to limit bandwidth and VoIP (especially as some large ISPs are also voice carriers, which are threatened by online phone services).

Republican Senator John McCain (Ariz), is opposed to the rules, and has introduced a bill to block them, while President Barack Obama has placed net neutrality rules as among his top priorities. A vote on the proposed rules will take place in 2010.

Seven things to know about Windows 7

Windows 7, which went on sale Thursday, promises a smoother user experience, multi-touchscreen capability and more seamless networking with other computers.
Early reviews have been good.

"We think it's a far superior product to the previous Microsoft operating systems," says Vishal Dhar, co-founder of iYogi, a tech services company. "It's got a more intuitive interface."
Great. But it is right for you? Which version of the software best fits your needs? And are there tricks to installing Windows 7 and navigating its new features?

We anticipate seven of the most common questions about Windows 7 and offer some advice:

Will my aging computer run Windows 7?

Maybe. If your PC can run the much-maligned Windows Vista, it can probably run Windows 7. Check your computer's specs: To install Windows 7, you'll need at least a 1 gigahertz or faster 32-bit (x86) processor, plus at least 2 GB of RAM and at least 16 GB of available hard disk space.

Yes, that sounds like a foreign language to most people. If you're not sure what all that means, try downloading a free Microsoft tool called a Windows 7 Upgrade Advisor, which will scan your PC, report any potential problems and offer ways to fix them.

Is upgrading to Windows 7 worth it?

That depends on your budget and how you use your computer. The software will cost you from $120 to $220, depending on which version you buy. If you're broke and you're happy with your Vista or Windows XP system, then there's probably no rush.

But keep in mind that Windows XP is eight-year-old software, and that it will eventually stop running new applications. Newer operating systems also offer better security against hackers. You'll need to upgrade someday.

Depending on how old your computer is, you may be better off buying a new laptop or PC, preloaded with Windows 7, instead of trying to refresh your aging machine. Retailers such as Best Buy and Dell.com are offering Windows 7-loaded laptops for as low as $499.

Which version of Windows 7 should I buy?

Most casual computer users will probably be satisfied with the Home Premium edition ($119.99), which includes most of the basic features you'll need. That includes Home Group, which makes it easier to share music, video and documents -- a common printer, too -- between Windows 7-enabled computers in a home.

Small business owners and people who work from home may opt for the Professional edition ($199.99), which supports all the Home Premium features while automatically backing up all your data to a networked hard drive.

If you guard corporate secrets or work for the CIA, you'll want the Ultimate edition ($219.99). It comes with BitLocker encryption, which prevents thieves from accessing your files if your laptop is stolen.

How tricky is Windows 7 to install?

If you're upgrading from Vista, it's supposed to be a breeze: Insert the disc, and it does the rest. "It's the easiest upgrade I've ever seen," says J. Peter Bruzzese, who writes about tech for InfoWorld.

"All of my settings carried over."

Upgrading from Windows XP is more complicated. Users will need to back up their files, format their hard drive, install Windows 7 and then reinstall browsers, reimport bookmarks and so on. Microsoft has a wizard called Easy Transfer that uses a USB cable to help you transfer files and settings.

It's not officially recommended, but Bruzzese says XP users also can install a borrowed copy of Vista, then upgrade easily from there to Windows 7.

What if I need help?

If you don't have a tech-savvy friend, nephew or neighbor, try Microsoft's online Windows 7 Solution Center, which will walk you through the installation process.

You may also want to consider hiring a tech-support service such as iYogi, whose technicians connect to your computer remotely to diagnose problems, help you install Windows 7 and show you how to migrate your old applications onto your new system. Services start at about $30.

Will Windows 7 run my old XP programs?

Most likely. Heeding complaints about Vista's compatibility problems, Microsoft is introducing something called XP Mode, which creates a virtual, or "shadow" Windows XP operating system running inside Windows 7.

Once XP Mode is running, it fools your older apps into thinking they're on Windows XP. Here you'll find an XP start menu and all your familiar XP features -- all of which should work as they did before. XP Mode is only available in the higher-priced Professional and Ultimate editions, though.

Does Windows 7 have any cool new bells and whistles?

• Well, it's got trippier desktop wallpaper, for one. Microsoft has replaced much of its blandly pretty nature shots with colorful psychedelic images.

• A Library feature allows you to gather files -- documents, photos and video -- from different places on your computer and group them together in new folders by topic, such as "beach house," or "Grandpa Fred."

• A new feature called AeroPeek displays outlines of your open windows behind the window you're working in. A related feature, AeroSnap, allows you to move, shrink and enlarge windows on your screen so that you can see several at once.

• Finally, Windows 7 needs less processing power than previous Windows versions, meaning that in theory, you should be able to work faster and in more windows at the same time. In other words, it's built for today's warp-speed, multi-tasking lifestyle.

Rescue efforts shift to small business

The Obama administration is winding down several massive rescue programs that aided large banks and automakers during the heat of the financial crisis, while launching more moderate initiatives to help small businesses and the housing market.

The moves are being billed by senior administration officials as a "new direction" for the government's oft-maligned $700 billion financial rescue program, which has been credited with preventing a collapse of the financial system but angered many politicians and members of the public for bailing out the big banks that may have triggered the crisis in the first place.

The Troubled Assets Relief Program, or TARP, will now focus on the ailing housing market and small businesses, which are seen as vital to the economic recovery because they employ so many workers, officials said.

Using the Landover records-storage company Metropolitan Archives as a backdrop Wednesday, President Obama said, "There is still too little credit flowing to our small businesses.

"There are still too many entrepreneurs who can't get the loan they need to open their doors and start hiring," Obama said. Small businesses "fuel our prosperity," he added. "And that is why they must be at the forefront of our recovery."

Under the administration's plan, small companies will be able to get low-interest loans through local banks with less than $1 billion in assets. Those institutions will be allowed to borrow from TARP at a 3 percent rate, lower than its usual 5 percent. The banks will be required to submit plans on lending to small businesses and present quarterly progress reports to regulators.

Community development financial institutions, which provide credit to low-income urban and rural areas, will be able to borrow from TARP at 2 percent.

The precise terms of those programs have not yet been fully worked out, said administration officials who declined to reveal how much they estimate they will have to allocate to the program. The sources spoke on the condition of anonymity because the discussions have been private.
Some of the officials are concerned about whether community banks will participate, given the stigma that has been attached to the federal bailout, sources said. Moreover, many banks have been reluctant to lend to small firms because they historically have been a bigger credit risk than larger corporations.

Raising lending limits

Obama also will ask Congress to raise the cap on how much a company can borrow from the Small Business Administration's major lending programs to $5 million from $2 million. In addition, the limit on an SBA microloan program will increase from $35,000 to $50,000 to help start-ups and other smaller businesses. Those SBA loans are also administered by banks and are backed by federal guarantees.

"America will not recover until our small businesses recover. In communities across the country, they are the engines of job growth and lead the way to the industries of the future," Treasury Secretary Timothy F. Geithner said in a statement.

Similar proposals to increase SBA loan limits have already been put forward on Capitol Hill, and lawmakers rushed to take credit for those efforts Wednesday. The staff of Sen. Olympia J. Snowe (R-Maine) noted that she had introduced a bill last year that was nearly identical to what Obama proposed.

Windows 7 Launch Parties

Are you just waking up and nursing a hangover after hosting one of those wild Windows 7 launch parties? No? Well, you at least attended one, right? Invited to one but had a scheduling conflict??

Let's face it, the Windows 7 launch party concept was a complete and utter failure. The YouTube video Microsoft created to market the launch party concept certainly got attention, but for all the wrong reasons. It was almost universally mocked and parodied. Just look at the endless list of ‘Related Videos' making fun of the launch party promotion.

One reader commented in the PC World forums to lament his attempts at hosting a launch party. After receiving only one response, which wasn't even the official RSVP, the reader examined the RSVP in more detail and found "it looked like the whole TON of apparently life-sucking legalese I had to agree to in order to HOST a party. With even GUESTS having to agree to everything short of giving up their BIRTHRIGHTS to Microsoft and its subsidiaries, heirs, etc., how is ANYBODY supposed to actually get people to do the "official RSVP?!?"

Even PC World's Rick Broida got so little response to his own Windows 7 launch party invites that he simply canceled the event.

My PC World colleague David Coursey believes that Microsoft intentionally played the Windows 7 launch low-key. After the wild spectacle that accompanied the launch of Windows Vista, and the subsequent backlash against that OS, it makes sense that Microsoft would take a more practical approach this time to avoid any proverbial egg on the face.

I agree with Coursey that the official Windows 7 launch events had less hoopla by design. However, the Windows 7 launch party concept and Microsoft's attempts at igniting hoopla at a grassroots level demonstrate an attempt to hedge its bets and have its cake and eat it too. Unfortunately, nobody was having any cake at Windows 7 launch parties.

Remember high school--cool kids went to parties and had fun while nerds hung out at math club and played Dungeons and Dragons? Well, the two don't mix. Hosting a party where you play Dungeons and Dragons or discuss algebraic functions doesn't make you cool just because you put the word ‘party' on it.

Microsoft has had many failed attempts at being hip and cool. Microsoft Bob. The Office paperclip character. The Bill Gates / Jerry Seinfeld ads that seemed to require some sort of psychotropic mind enhancement in order for them to make sense. It just doesn't work.

Apple is cool. I don't agree with the premise of many of the Apple "I'm a Mac" ads, but I almost always find them entertaining and compelling. Apple didn't waste any time coming out with a new series of the "I'm a Mac" ads targeting Windows 7 too.

Microsoft does much better when it accepts its nerd-factor or at least sticks to more practical advertising. The "I'm a PC" campaign, mocking the "I'm a Mac" ads and embracing the fact that Windows is not Mac OS X, or the more poignant Laptop Hunters ad campaign, are both examples of Microsoft making a point without trying to be cool.

Let Apple be hip and cool. Apple has gained some operating system mojo lately, but it is nowhere near posing a threat to Windows dominance. Windows 7 already had word-of-mouth momentum from the unprecedented Beta and RC (release candidate) preview access and the Windows 7 launch party was a bad idea that just gives Microsoft opponents one more thing to ridicule.

Windows 7 is cool, as far as operating systems go, but not worthy of drinks and appetizers while everyone loads it up and shares tips and tricks with each other--not even for uber nerds. The only launch party I know of that was even a remote success was this one hosted by PC World senior editor Robert Strohmeyer.

Google, Facebook Plan to Beef Up Music Features

Both Google and Facebook are reportedly planning to beef up their music features by allowing users to find and stream music more easily on their services, the New York Times reports. According to sources who have been invited to a Google event next week at Los Angeles’ Capitol Building, the search engine giant is expected to reveal “a more efficient way” of finding, streaming and learning about music, which will reportedly involve Google linking up with music sites like Lala, iLike and Imeem.

Google has not aligned itself with any of the major labels as of yet, the NYT reports, but will respond to searches for songs by presenting a 30-second stream — or in some cases, a full track — powered by its partners. Essentially, it’s a shortcut for users who may go directly to YouTube or the iTunes music store to be able to search and listen to music without paying for it.

Facebook is developing the option for users to send songs as a gift to friends, the NYT writes. As it stands now, Facebook users can send virtual birthday cakes and dogs and other tiny graphics for a small fee to other Facebookers. However, after a deal with Lala, for 10 cents, users will be able to send a song stream from the music service to other friends on Facebook. For a dollar, the song can be downloaded and imported into iTunes or other music players.

Google 'to launch own Android phone and music service

Search giant Google is rumoured to be on the verge of releasing its own Android-powered handset, as well as a music streaming service that could compete with Spotify.

Ashok Kumar, an analyst with Northeast Securities, claims to have spoken to Google's design partners about the plans. "Google is working with a smartphone manufacturer to have a Google-branded phone available this year through retailers, and not through telcos," he said.

When Google unveiled the Android operating system in 2007, it scotched rumours of a Google "gPhone", saying that the platform would produce "not just one gPhone, but thousands". It is unclear what has prompted the supposed shift in Google's intentions, and the company itself has refused to comment on the speculation.

The new device is rumoured to be a collaboration between Google and Taiwanese phone maker HTC. The gPhone will be powered by Qualcomm chips.

Industry website The Street, which broke the news, says that Google's entrance in to the Android space, and any decision to cut network operators out of the loop could mark a shift in the balance of power between handset makers and telecoms providers.

"The move would fulfil Google's pledge to bring a new generation of open-standard mobile internet devices to consumers," writes Scott Moritz. "By bypassing the carriers, who keep tight controls over the features and applications that are allowed on phones, Google will presumably offer a device that lets users determine the functions.

"If talk of the Google phone plan is true, the entrance of a unlocked, low-cost, Web-friendly touch-screen device will probably undercut other Android phone efforts by players like Motorola, Samsung and Dell."

Google is also rumoured to be on the verge of launching its own music streaming and download service to rival the likes of iTunes and Spotify. According to TechCrunch, Google plans to roll out Google Audio in the US in the coming months. Sources close to the project told TechCrunch that Google would be working on striking deals with the major record labels, and it was unclear whether the service would be launched outside of the United States.

Details of the rumoured service remain sketchy, with TechCrunch admitting that it was unclear whether or it would be a streaming or download service, or a combination of the two. The success of Spotify and Napster, and the recent launch of Sky Songs, highlights music's growing importance in the battle for online dominance.

Google currently has a music service in China, where it allows users to download songs for free. The move was seen as an attempt to win over users from Baidu, China's most popular search engine.

Microsoft Sidekick users lose data

Users of the Sidekick – a mobile phone and emailing device popular with celebrities such as Paris Hilton – were told that crucial personal data, such as contacts, calendar entries, appointments and photos, were lost as a result of a server failure at Danger, the company that makes the device, and which was acquired by Microsoft last year.

"Our teams continue to work around-the-clock in hopes of discovering some way to recover this information," said T-Mobile and Microsoft in a statement. "However, the likelihood of a successful outcome is extremely low."

The one million users of the device have been warned not to reset the phone, or let the battery run out, as it may result in any remaining data being permanently lost.

The data loss has led some experts to question the integrity of so-called "cloud computing" services, where information is stored on a remote server rather than on the device itself. The Sidekick relied heavily on cloud backups, with everything from instant-messaging to emails stored remotely, and the handset itself containing only a cached version of the most recently synchronised data.

Microsoft was handling the storage of this data in its data centres, and traditionally, backups of this data are also made at other sites to ensure that data remains accessible should a server centre experience a power outage or natural disaster.

But a spokesman for Microsoft told Reuters that a "confluence of errors" from the server failure impacted both the main and backup databases.

T-Mobile is offering Sidekick users a $20 (£12) refund to cover the cost of one month of data usage on the phone. It also will give customers who experienced a "significant and permanent" loss of personal data a $100 (£63) "customer appreciation" voucher which can be put towards other T-Mobile products and services, or used against a phone bill.

The data loss is an embarrassing blow for Microsoft, which is looking to put more of its products and services "in the cloud", including its Office suite of products.

Google already offers a similar service through Google Docs, which enables web users to write, edit and collaborate on spreadsheets and Word documents through their browser window.

Microsoft ready to roll out newest operating system

Microsoft will formally launch its new Windows 7 operating system Thursday. But unlike past years, when the company recruited the likes of the Rolling Stones, Jerry Seinfeld, and other cultural icons to help pitch its software, Microsoft is keeping things low key for Windows 7's debut.CEO Steve Ballmer and other executives are expected to attend launch-related events throughout the week in New York City and other locations, while users have been encouraged to hold their own Windows 7 launch parties with like-minded tech enthusiasts.

The company has also teamed up with animator Seth MacFarlane to produce a half-hour Family Guy episode featuring Windows 7.

For the most part, however, Microsoft is keeping Windows 7 hoopla to a minimum—and with good reason. The company expended considerable resources to create buzz and consumer awareness around its previous OS, Windows Vista, only to watch the product get pilloried by reviewers and users after its introduction in early 2007.

Critics complained Vista required too much computing horsepower, failed to maintain compatibility with older applications, and was full of annoying security features. Even without such flaws, it would have been difficult for Vista to have lived up to the hype Microsoft built around the product.

Vista also failed in the enterprise market, where only a handful of large corporations upgraded their computer systems to the OS from the older Windows XP operating system. Partly as a result, Windows sales have slumped badly in recent quarters.

It's thus hardly surprising that Microsoft wishes to keep Windows 7 hype to a minimum, at least until all the early bugs have been worked out.

Early indications are that the strategy could pay off, particularly in the highly conservative enterprise market. 18% of respondents to a straw poll of attendees at InformationWeek's online Windows 7 seminar said their organizations plan to roll out the new OS within six months. 32% planned to move to Windows 7 within a year.

The full version of Windows 7 Professional is $299, with upgrades going for $199. Windows 7 Ultimate is priced at $319, with the upgrade version at $219. The full version of Windows 7 Home Premium is priced at $199, with an upgrade from Vista or XP costing $119.

Fotolia Plugs Into Office 2007 Apps

Fotolia is today releasing a new add-in ribbon for Microsoft Word and PowerPoint 2007 that gives users instant access to the company’s vast library of images and vectors from within the popular applications, eliminating the need to leave them.

Once the ribbon is downloaded from the Fotolia website and installed, users can search stock photos for the projects that they’re working on straight from the top menu of their applications, so they don’t need to go away from their documents to obtain appropriate stock imagery.

Before purchasing an item from the company’s library, which it says presently counts over 7-million royalty-free high-resolution files, users can hover over search results within the doc to see a preview of images. Double-click, and the item gets placed in the doc for you to see if it matches what you were trying to visualize. Users can then opt to buy images in any of the available sizes and licenses straight from Fotolia. Once the image is downloaded into the user’s document, users are free to use the Fotolia file with no limit on time, copies or geographical placements.

Fotolia has been supplying imagery to Microsoft Office Online customers for a few years now, but this really ties the knot.

It’s a great idea, and I concur with Microsoft’s Office.com Group Manager Rob Ashby, who commented that the addition of Fotolia can be a significant productivity win for customers. I guess it also makes sense for the company to endorse this and similar add-ons because they’re bound to keep users inside its software applications as much as possible, but the benefits for users are clear too. It’s also yet another sign that the line between desktop and web software is blurring.

Again, this product is quite brilliant, and I’m sure other stock photography players will be following suit soon.

Intel upbeat on future earnings

US chipmaker Intel has announced a better-than-expected profit for the third quarter and set out an upbeat forecast for the next three months. Net income came in at $1.9bn (£1.2bn), down from the $2bn it made a year ago. Revenue also fell 8% to $9.4bn, but was ahead of analyst forecasts of $9.1bn.

Last month, Intel's boss said the PC industry was coming out of recession. The firm expects revenue in the current quarter to reach $10.1bn on recovering demand for personal computers.

"Intel's strong third-quarter results underscore that computing is essential to people's lives, proving the importance of technology innovation in leading an economic recovery," said Paul Otellini, Intel president and chief executive.

"This momentum in the current economic climate, plus our product leadership, gives us confidence about our business prospects going forward."

Intel's results came out after the bell in the US. Shares in the company had closed up 0.44% at $20.49 on the Nasdaq, ahead of the results.