Tag Archives: msft

Facebook’s WhatsApp Tests Video Calls; Wireless Firms On Edge?

Facebook ’s ( FB ) WhatsApp is reportedly testing a new, free video calling feature, as both Facebook’s social networking platform and its messenger services like WhatsApp push further into communications. The video calling feature is being tested on a limited basis, says a  report  by tech new site The Verge. Facebook’s emerging video calling platform poses a challenge to Microsoft ‘s ( MSFT ) Skype, analysts say. Facebook’s relationships with wireless service providers have been touchy, although its social platform is a big driver of data consumption for U.S. wireless firms such as AT&T ( T ) and Verizon Communications ( VZ ) as well as other players globally. T-Mobile US ( TMUS ) in March shot down speculation it was working with Facebook on a “sponsored” plan that would exempt usage from monthly data caps. Facebook’s friction with wireless firms has been more apparent in emerging markets, such as Latin America. At the Mobile World Congress in Barcelona in February, Facebook CEO Mark Zuckerberg said the relationship between telecom carriers and  Facebook’s WhatsApp and Messenger is “symbiotic,” not hostile. Zuckerberg said that while “there might be tension in any relationship,” he sees greater use of photos and videos in messaging services as boosting data usage. In India, however, wireless firms Bharti Airtel and Vodafone Group ( VOD ) in early May asked regulators to stop phone calls made through mobile apps. Originally a text messaging service, WhatsApp rolled out free voice calling options to both Apple ( AAPL ) iOS and Android-based mobile phones last year. WhatsApp says it has 1 billion users worldwide. Facebook, though, hasn’t generated much revenue from WhatsApp, which it acquired in 2014 for $19 billion. Aside from WhatsApp, Facebook has taken other steps into communications. Facebook Messenger, a separate app, launched a group calling feature in April. Facebook has also expanded live video streaming to both Apple iPhones and Android software-based devices. Alphabet ’s ( GOOGL ) Google, meanwhile, is also active. Google has been working with Sprint ( S ), Deutsche Telekom ( DTEGY ), Vodafone and others to develop next-generation messaging technology based on a standard called Rich Communications Services, or RCS.

Globalstar Pops, Could Defeat Google, Microsoft On Wi-Fi Spectrum

Globalstar ( GSAT ) stock popped for the second straight trading day on views federal regulators will green light its petition to open up spectrum airwaves in the 2.4 GHz block for wireless services. Globalstar, a mobile satellite service operator, had faced opposition from Alphabet ’s ( GOOGL ) Google, Microsoft ( MSFT ) and the cable TV industry over concern the airwaves could interfere with Wi-Fi services. Comcast ( CMCSA ) has been expanding its public and residential Wi-Fi network and might jump into wireless services, analysts say. Tom Wheeler, chairman of the Federal Communications Commission, on Friday proposed an order that would allow Globalstar to move forward with its “authenticated Wi-Fi” service. Globalstar stock, which popped 35% on Friday, was up another 15% in morning trading in the stock market today , albeit still trading below 3. It’s possible Globalstar’s opponents such as  Microsoft or Google could make a last-ditch effort to block approval, analysts say. The FCC could issue new rules as soon as  June. Paul Gallant, an analyst at Guggenheim Partners, says a remaining issue is what limitations the FCC’s order puts on Globalstar’s commercial rollout. “There has been some concern that an FCC approval could be a Pyrrhic victory if the agency attached heavy limits on power output or out-of-band-emissions that restricted the value of Globalstar’s proposed service,” wrote Gallant in a research report. “We suspect the technical parameters are likely to approximate what Globalstar initially proposed 2.5 years ago. That would be positive for its new service.” Amazon.com ( AMZN ) reportedly had tested Globalstar’s spectrum a couple of years ago, said one report.

Google Worries Mount Over EU Antitrust Fine, Oracle Case Outcome

The European Commission may hit Alphabet ‘s ( GOOGL ) Google with a $3.4 billion fine as early as June on grounds that the U.S. Internet giant favors its own shopping service in Internet searches. The European Union’s biggest antitrust fine to date was $1.45 billion, against chipmaker Intel ( INTC ) in 2009. The EU in 2013 also fined Microsoft ( MSFT ) $730 million for failing to respect an antitrust settlement with regulators. The most Google could be fined would be 10% of annual revenue under EU law, which would be roughly double the $3.4 billion fine. Google posted revenue near $75 billion in 2015 and reported $75.3 billion in cash, cash equivalents and marketable securities in its Q1 earnings release. The Sunday Telegraph first reported the antitrust fine. Google has not commented. The EU’s European Commission (EC) regulators in recent years have investigated other U.S. companies — including Amazon.com ( AMZN ), Facebook ( FB ) and Apple ( AAPL ) — over antitrust and privacy issues. If the EU fines Google, it would put U.S. regulators in the spotlight. The Federal Trade Commission in 2013 ended an investigation into whether Google abused its dominance in the Internet search market without bringing charges. The EU has opened up a separate probe involving Google’s Android smartphone software. Meanwhile, a copyright infringement case involving Oracle ( ORCL ) and Google is heading into its second week. Oracle claims Google violated its copyright on parts of the Java programming language when it created the Android mobile operating system, now used in mobile phones worldwide. Oracle is seeking $8.8 billion in damages. “If the EC does issue the ruling, Google is required to comply with the nondiscrimination ruling even while pursuing a possible court appeal, which could take three to five years,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “This is not well understood by investors. “In addition, if Google refuses to comply — or if its revisions are deemed inadequate — it can be subject to an ongoing noncompliance fine  of up to 5% of its global annual revenues, pro-rated daily.” Alphabet stock was flat in early trading, near 724. Alphabet stock broke out of a cup-with-handle base at a 777.41 buy point on April 14, but it is now near the 7% to 8% decline where selling shares is recommended.