NASA Signs $2.5 Billion Contract With HP

NASA has signed a huge contract with Hewlett-Packard for IT goods and services. The $2.5 billion, 10-year deal includes computer networks, hardware, software, peripherals and "everything that's plugged into the wall," said Michael Sweigart, as NASA spokesperson.

HP is taking over many services currently provided by Lockheed Martin. Hewlett-Packard has had an interesting year, one perhaps most significantly marked by a CEO-shakeup saga. In early August, HP ousted then-CEO Mark Hurd following sexual harassment claims. Shortly after Hurd's firing, he was hired as Oracle's new co-president.

Still, while the company's leadership saw some big changes, it finished the year strongly, reporting decent fourth-quarter revenue growth. We're sure a hefty contract from NASA will help the company's financials as well as help direct attention away from CEO issues and toward what looks to be a promising new year.

New virus 'Geinimi' threatens Android Phones

A virus infecting mobile phones using Google's Android operating system has emerged in China that can allow a hacker to gain access to personal data, US security experts have said.

A report this week from Lookout Mobile Security said the new Trojan affecting Android devices has been dubbed "Geinimi" and "can compromise a significant amount of personal data on a user’s phone and send it to remote servers."

The firm called the virus "the most sophisticated Android malware we've seen to date."

"Once the malware is installed on a user's phone, it has the potential to receive commands from a remote server that allow the owner of that server to control the phone," Lookout said.

"Geinimi's author(s) have raised the sophistication bar significantly over and above previously observed Android malware by employing techniques to obfuscate its activities."

The motive for the virus was not clear, which added that this could be used for anything from "a malicious ad-network to an attempt to create an Android botnet."

But the company said the only users likely to be affected are those downloading Android apps from China.

The infected apps included repackaged versions sold in China of Monkey Jump 2, Sex Positions, President vs. Aliens, City Defense and Baseball Superstars 2010.

"It is important to remember that even though there are instances of the games repackaged with the Trojan, the original versions available in the official Google Android Market have not been affected," said the security firm.

HTC to release First Verizon LTE Smartphone

The race to be the first smartphone on Verizon Wireless' brand-new long-term evolution (LTE) network is on, and 4G leader HTC appears determined to be first out of the gate.

Taiwan-based HTC launched the first phone designated 4G for Sprint Nextel's high-speed WiMAX network in June and a house ad on its company web site this week shows a veiled phone with the words "The first to 4G again," widely interpreted to be a promise to lead the LTE race on Verizon. HTC also makes the G2, which works on T-Mobile's high-speed HSPA+ network.

When Verizon Wireless Vice President and CTO Tony Melone announced the launch of the LTE network early this month for 38 markets and 60 airports - initially for computer modem users only - he said smartphones would be available in the first half of 2011 with announcements at the industry's biggest event, the Consumer Electronics Show in Las Vegas, Jan. 6 through Jan. 8. HTC has a press conference scheduled on the same day Verizon is to announce its LTE phones.

More recently, Verizon Wireless CEO John Stratton told this week that Motorola, maker of Verizon's top-selling Droid, Droid X, and, most recently, the Droid Pro, will have an LTE smartphone.

Fourth-generation network coverage is still in its infancy, and with tiered data plans making it an expensive proposition, it may be some time before adoption matches the level of 3G. So making the first LTE smartphone for the largest carrier in the U.S. is more valuable for bragging rights than for sales in the short term, said wireless analyst Gerry Purdy of MobilTrax.

"Samsung, Motorola and HTC all have the technical capability to do it," said Purdy. "The real challenge is who is going to be able to bring volume to the market when LTE is still in the rollout stage. So it has some PR value but it will make very few extra sales except for people who are very data-hungry."

Purdy suggested that adding 4G capability in refreshes of existing phones that already have some traction might be a better move than adding new devices to the crowded market.

As for Apple’s iPhone, rumored to be hitting Verizon stores around the same time that LTE phones arrive, Purdy said it's likely a 4G iPhone is about a year away.

AT&T, the iPhone's current exclusive U.S. distributor and the second-biggest carrier in the U.S., is slated to launch its own LTE network in 2012. Purdy said Apple would do well to make a smartphone that will work on both Verizon and AT&T's next-generation networks.

Android 3.0 coming In March

Weeks ago, Google took the wraps off of Android Gingerbread, the latest and greatest version of its mobile operating system. Aside from the newly launched Samsung Nexus S device, no phone even has the software yet - heck, plenty of users are still waiting for the Android 2.2 upgrade - but that's not stopping people from looking even further ahead.

They're looking, of course, toward Honeycomb - the next major stop on Google's Android development track. All signs point to Honeycomb bringing some significant changes to the Android OS; if everything goes as expected, it'll be the first version of Android to be fully optimized for tablets. And if a report published this week is correct, it'll make its way into the world in March.

The new Honeycomb release rumor comes from Taiwanese newspaper Digitimes. In the middle of a story about upcoming tablet PCs, Digitimes nonchalantly mentions a launch date for Android 3.0, which many people believe will be Honeycomb's official version number. That belief may or may not be correct, incidentally; some folks think Honeycomb will end up being Android 2.4. Google thus far hasn't given any official indication one way or the other.

Digitimes says: "MSI is prepared to sell an Nvidia Tegra 2-based model in April or May after Google releases Android 3.0 in March."

So does Digitimes know something we don't? Maybe - but I wouldn't place any wagers on it. The publication has a history of publishing tech-oriented rumors. Sometimes it's right on the money, but often, its predictions prove to be wrong.

That said, Google has confirmed that Honeycomb's coming in 2011, and an arrival sometime within the first quarter seems like a fairly safe bet. Marketing's already underway for an upcoming Motorola Android tablet, and the promotional materials make it quite clear that Honeycomb will be part of the equation. Motorola says the tablet will be unveiled at the Consumer Electronics Show in January; there's no telling, however, when it'll actually go on sale.

We've seen a prototype of a Motorola tablet up and running. Google Android chief Andy Rubin demoed the device during a mobile conference in San Francisco earlier this month. The tablet had virtual on-screen buttons in place of the hardware controls typically seen on Android phones. It was also capable of running multiple side-by-side application panes to take advantage of the larger screen space.

Sony to buy back Toshiba chip line

Sony Corp is in talks to buy a Japanese microchip production line from Toshiba Corp for an estimated 50 billion yen ($598 million) to boost its output of chips for cameras and mobile phones.

Sony sold the facility to Toshiba, the world's No.3 chip maker behind Intel Corp and Samsung Electronics for 90 billion yen in 2008 as part of its "asset light" strategy.

Through the planned buy back of the production lines in southern Japan's Nagasaki prefecture, the maker of PlayStation games and Bravia TVs aims to boost its output capacity of image sensors used in digital cameras and cellphones.

The electronics and entertainment conglomerate is now aiming to raise its CMOS (complementary metal-oxide semiconductor) sensor production capacity due to brisk demand for digital cameras and smart phones.

Sony Executive Deputy President Hiroshi Yoshioka said that it was in the process of deciding how to cover a shortage in CMOS sensor output capacity.

Sony is the world's second-largest digital camera maker behind Canon Inc, and runs a mobile phone joint venture with Sweden's Ericsson.

The Nikkei business daily said the acquisition would double Sony's image sensor output capacity to the equivalent of 40,000 silicon wafers a month. Sony still owns the factory the chip line is housed in.

Cricket Communications launches music service for mobile phones

Cricket Communications is launching a new music service for wireless customers, offering unlimited song downloads as part of a monthly rate plan.

For $55 per month, Cricket - part of low-cost carrier Leap Wireless International Inc - will sell a combined voice, data and text plan, along with all-you-can-download music, starting in January.

The company said the new Muve service will offer music from the four major record labels: Vivendi's Universal Music Group; Warner Music Group; Sony Music Entertainment and EMI Music.

"Muve will always have all the major content that all the major labels have," said Jeff Toig, general manager of voice and data products at Cricket.

Unlike some other digital music services, Muve is rooted in the mobile phone itself. It will launch on the $199 Samsung Suede, which is equipped with a special card from flash memory maker SanDisk. The Suede will be able to hold between 2,000 to 3,000 songs.

The music is stored on and tied to the card, and cannot be removed. If a customer stops paying for Muve, they lose access to the music.

Toig said Muve will also be available on smartphones running Google's Android software in the future.

Leap - which plans to rename itself as "Cricket" - competes with MetroPCS and Sprint-Nextel's unit Boost Mobile, and caters to the pay-as-you-go market, which has low average revenue per user.

Cricket operates in 34 U.S. states and counts more than 5 million customers. The vast majority of its customers pay in cash and have incomes less than $50,000 a year. Around half are under the age of 35 and do not have a personal computer.

Toig said Muve represents a different approach than music services like Apple's iTunes, which are rooted in PCs and require a credit card to buy music.

He declined to say how Cricket will split sales with the music labels, but said the deal is based on the number of subscribers.

"Our models are aligned, they're paid per sub, per month," Toig said.

DoCoMo to bring Mobile TV to Indian market

According to a report by Nikkei, ‘Japanese carrier NTT DoCoMo Inc plans to transfer television broadcast technology for cellular phones to Indian partner Tata Teleservices with an eye to launching mobile phone TV service in the South Asian country in 2014.’

Once commercial service begins, DoCoMo will charge commissions to local TV broadcasters and Japanese content providers for use of the technology.

The new service will likely help Tata Teleservices sign up more subscribers.

DoCoMo expanded into the high-growth Indian mobile phone market in March 2009 by investing roughly 260 billion yen in Tata Teleservices. Unlike in the stagnant Japanese market, mobile phone users in India expand by more than 15 million a month and are currently at roughly 700 million, Nikkei said.

Tata Teleservices had about 80 million subscribers at the end of October - 40 percent more than DoCoMo has in Japan.

The Indian partner is considering issuing shares to raise funds for setting up base stations for its 3G mobile phone service.

DoCoMo will likely buy 10-20 billion yen in new Tata Teleservices shares to maintain the 26 percent stake it currently owns in the company.

If the service takes root in India, it will likely help Japanese manufacturers boost exports of their high-performance handsets, Nikkei reported.

Google unveils CR 48 - First Chrome OS Laptop

Google gave the world a first look at its new Chrome OS laptop and according to CEO Eric Schmidt it's very much like the Network Computer devices that he was pitching while chief technology officer at Sun Microsystems 13 years ago. Only this time around, the idea will actually catch on, Schmidt said.

The difference, Schmidt said, is that the Web-based development tools used to build programs for Chrome OS have had had years to mature. "Our instincts were right but we didn't have the tools," he said of the computer industry's failure to make lightweight computers that could compete with Microsoft Windows in the enterprise.

Google thinks that Web applications are finally ready to displace Microsoft's hegemony and businesses will buy computers that can't run programs such as Word or Excel.

"I think there's every reason to believe that when you go back and you look at history, not only is this the right time to build these products, but because they work and they work at scale, they'll be very successful," Schmidt said.

Google didn't say if or when it was going to start selling its own lightweight laptops. But the company did offer a sneak peak at a completely black, unbranded notebook, running the Chrome OS, that it's shipping out to developers and a limited number of lucky consumers.

Dubbed the Cr-48, the laptop has a 12.1 inch display, a regular-sized keyboard, and a battery that will last for eight hours.

Like the Network Computer (NC), the Cr-48 is designed to run software over the network. But instead of Java - which proved to be clunky and hard to develop on the NC - Chrome OS developers can use the same Web development tools they've been working with for years.

Google's system boots up in 60 seconds; after it goes to sleep, it can resume operations nearly instantly; it encrypts all data automatically; and it uses a piece of encryption hardware called a trusted computing module to digitally sign components of the operating system and check them for tampering.

And like today's smartphones, Chrome OS systems are designed to be always connected. Thanks to a deal with U.S. carrier Verizon, Chrome OS notebook users will get two years worth of free 3G wireless connectivity. Their free usage will be capped at 100 MB per month, but Verizon will offer plans for more bandwith-intensive users.

Schmdit thinks this strategy is going to work well because of mobile computing. Increasingly, mobile devices such as the BlackBerry and the iPhone are becoming critical business tools.

Google had been hoping to announce its first Chrome OS laptops by years end, but that deadline has slipped. Intel-based systems from Samsung and Acer will ship by mid-2011.

Google has also announced a new Web store for Chrome browser users and updates to its browser software.

Despite heavy promotion by enterprise vendors such as Sun and Oracle, the NC never managed to win the hearts of enterprise software developers. Google seems to understand that it will take some work to win those people over with Chrome OS computers that can't run popular Windows programs. It has already started pilot programs with enterprises such as American Airlines, Cardinal Health, Intercontinental Hotels, the U.S. Department of Defense and others.

China Unicom to half the price of 3G mobile package

China Unicom, the country's No. 2 mobile operator, has more than halved the monthly subscription of its entry-level 3G mobile package in a bid to increase its customer base.

The cheapest 3G data package will now begin at 46 yuan ($7) a month, down from 96 yuan previously, and will be launched at the end of December.

"We hope to attract more users to our 3G service, because higher prices may keep some customers away," said China Unicom spokesman Wen Baoqiu.

China Unicom added over a million 3G users in the past two months, lower than bigger rival China Mobile's 1.7 million users added in October.

Like its peers in more developed economies, China Unicom and its rivals have been trying to court higher paying 3G customers in the face of slowing growth for the broader Chinese mobile market.

Unicom has had the most difficult transition following an overhaul of China's telecoms sector two years ago that left the industry with three main players. The company reached its current form through the merger of the country's No.2 wireless and fixed-line carriers.

Motorola to release 4G Phones in 2011

Motorola in its new form, to be known as Motorola Mobility, will go the way of Acer, rather than Apple in releasing new tablets in 2011.

Apple founder Steve Jobs has jabbed at 7-inch screens, emphasizing the nearly 10 inches on iPad. Several others have said they are going with 7-inchers. But Taiwan-based Acer said last month it will offer both 10.1- and 7-inch touchscreen displays.

Motorola Mobility will follow Acer. Current co-CEO Sanjay Jha, who will lead Motorola Mobility, said, “We’re planning to participate quite fully in the tablet category. Motorola Mobility will specialize in mobile devices and set-top boxes.”

He said Moto’s research shows 10-inch tabs are for business and 7-inch tabs are “fun” devices more easily carried by consumers. According to Jha, Motorola is planning to release 4G phones in 2011.

Jha hinted a new “competitive dynamic” will disrupt Motorola's relationship with Verizon in the first quarter that will have a significant negative impact on Motorola. “Whether the comment is an indirect reference to Verizon Wireless getting an iPhone or an official 3G/4G-capable iPad that's compatible with the carrier's network out of the box is unclear. To combat the threat, Motorola will continue to focus on the mid- to high-tier smartphone market.”

Schaumburg, IL.-based Motorola, which pioneered the mobile phone and is now benefiting from its smartphone Droid with Google's Android OS, will spin-off Motorola Mobility on Jan. 4 as it creates two publicly traded companies. The rest of Motorola, which sells tech to government and corporations, will become Motorola Solutions and trade on the New York Stock Exchange as MSI.

Meanwhile, the new Motorola Mobility, which will trade on NYSE as MMI, said next year it will offer another new device with mobile capabilities. Reuters has reported that this new device will combine set-top boxes and cell phone technology. The device will be featured in January at the Consumer Electronics Show.

Daniel Moloney, president of Motorola Mobility, says the technology will allow consumers to view any content anywhere on different devices. "It's one consumer proposition that will come sooner rather than later," he told the Reuters Global Media Summit.

After being sold a separate gadget offered via service providers, the home streaming product will eventually be integrated into set-top boxes.

Moloney rejoined Motorola last summer, having served as president and chief executive officer of Technitrol, an electronic component manufacturer. He previously was executive vice president at Motorola Inc. and president of Motorola’s Home and Networks Mobility business, which evolved into Motorola Mobility. Moloney then worked with video and WiMax.

Samsung triples share of Android device market

Samsung has done well with its Android devices, having sold a million Galaxy Tab tablets, and over 3 million Galaxy S smartphones, taking up a significant chunk of all Android phones sold in the U.S. So the manufacturer has seemingly earned its bragging rights, boasting a 300 percent increase in Android market share since the fourth quarter 2009.

The numbers came from a Gartner report, and were shared at a Samsung event yesterday. The success has proven encouraging, as Dale Sohn, president of Samsung Mobile, said "the Galaxy S portfolio has played a significant role in Samsung’s success in 2010 and we are extremely excited to show you what products, services and innovations we have in store."

To keep manufacturers and end users happy, Google is making tweaks around the Android Market in particular, improving its ease of use. A new "similar" tab has been added to app details, so you can discover other apps akin to the one of interest. It’s a simple tweak, but one that shows Google is paying attention to at least some basic navigation, search and recommendation needs for filtering its growing database of mobile apps.

It’s also a move Google needs to continue to build around, with the Android Market potentially losing ground to third-party directories and search tools. Gaming platforms have been filling this gap, providing cross-promotional marketing and discovery tools for end users.

In other gaming news, Dungeon Hunter is taking a cue from other Android titles this holiday season, with an extension to its 24-hour promo. Part of Gameloft’s Advent Twitter campaign, which offers a new promo throughout the month of December, Dungeon Hunter had some extra time tacked on, due to download issues for some users.