The Federal Bureau of Investigation recently formed a new unit tasked with developing technologies that enable more effective means of monitoring Internet, mobile and VoIP communications, CNET reported. The secretive new unit, reportedly called the Domestic Communications Assistance Center, aims to develop new surveillance technologies that make it easier for law enforcement to spy on suspects as they communicate using modern technology. Joined by agents from the U.S. Marshals Service and the Drug Enforcement Agency, the FBI reportedly formed the DCAC because it believes technology has developed too quickly, leaving law enforcement without the tools necessary to effectively monitor these new communications channels.

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Global carrier revenue from SMS services is in decline, and the cause of the slide is a topic of much debate. Mobile messaging services such as WhatsApp, BlackBerry Messenger and Apple’s iMessage are widely believed to have had a tremendous impact wireless service providers’ messaging revenues, however another company has now been identified as potentially sharing the responsibility for carriers’ dwindling SMS sales: Facebook.

“If you look at how most operators market and sell SMS, you will see that most operators charge the customer for each individual SMS he or she sends,” market research firm Strand Consult wrote in a recent report. “In practice this means that the customer has a choice between sending an SMS that the customer knows costs money, or alternatively use his flat rate data subscription to write a message via Facebook if the recipient is on Facebook.”

Facebook is now home to more than 900 million users, 425 million of which use the service from their mobile phones.

“In many ways one can compare Facebook’s development in the mobile industry to how the Internet affected the media industry,” the firm said. “Market players like Google, Skype, Twitter and MSN are only marginally important to the mobile industry compared to Facebook.” Strand Consult added, “The biggest difference between Facebook and Google is that Facebook is a communication tool that people use to keep in touch with their family and friends every day.”

The firm does note that the impact of Facebook’s messaging services on carriers’ SMS revenues is less significant in markets like the United States and Denmark, where carriers charge flat monthly fees for message bundles as opposed to per-message fees.

Facebook on Wednesday announced it will be launching a new App Center in the coming weeks on the Web, iOS and Android. The company hopes the center will give developers a way to more effectively distribute apps and create new opportunities for more types of apps to be successful. “The App Center is designed to grow mobile apps that use Facebook – whether they’re on iOS, Android or the mobile web,” the company said. “From the mobile App Center, users can browse apps that are compatible with their device, and if a mobile app requires installation, they will be sent to download the app from the App Store or Google Play.” The social networking site is more to more than 900 million users and seems like a natural fit for app developers looking for the maximum amount of exposure.

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T-Mobile’s parent company, Deutsche Telekom AG, has reportedly been discussing a potential merger with MetroPCS, according to Bloomberg. The talks come as T-Mobile continues to suffer from large subscriber defections, having lost 802,000 net customers in the fourth quarter of 2011 alone. Deutsche Telekom is considering a stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed, although an outright sale of T-Mobile is possible too. T-Mobile, the nation’s fourth largest carrier, has been looking for options since its failed merger with AT&T last November. MetroPCS has 9.5 million subscribers as of January 2012 and operates the fifth largest wireless network in the United States.

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The number of people accessing the Web through mobile devices has doubled since 2010 and now accounts for 10% of worldwide Internet usage. According to numbers compiled by Pingdom, Asia’s mobile usage amounted for 17.84% of the country’s total Internet usage, a 192.5% increase over the past 18 months. Africa’s mobile usage placed the region in second with 14.85%, usage in North America sat at 7.96%, followed by Australia, Europe and South America at 7.55%, 5.13% and 2.86% respectively. Pingdom notes that while worldwide mobile usage may only account for 10% of Web access, the number is growing at an extremely fast rate, and some countries’ Internet usage, such as India, is already nearing 50% from mobile devices.

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Rovio on Wednesday announced that its Angry Birds franchise has surpassed one billion downloads across Android, iOS, Windows and Mac OS X, with 350 million downloads having been served in 2012 alone. The latest Birds installment, Angry Birds Space, was downloaded more than 10 million time in less than three days and a whopping 50 million times in 35 days, making it the fastest growing mobile game of all time. The immensely popular franchise generated $106 million for the company in 2011 and drew in 200 million active monthly users. Rovio’s video announcement follows below.

As expected, Flipboard for Android has been pulled off of the Samsung Galaxy S III and is now available for all to download. The popular social news magazine app was going to be an exclusive on Samsung’s flagship smartphone for an unspecified amount of time, however an XDA-Developers forum member was able to extract the APK file from the unreleased device. The app runs perfectly on the Galaxy Nexus, and reportedly works on older devices like the original Galaxy S and various Android tablets as well. Flipboard for Android can be downloaded by following the link below.

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The latest rumors out of the Far East indicate that Apple’s next-generation iPhone will launch in the fall, as will a new 10-inch iPad. Apple supplier Pegatron Technology has reportedly landed orders for the Cupertino-based company’s latest handset and according to Taiwan-based supply chain makers, the device is slated for a September launch, Digitimes reported. The publication also claims Pegatron has received orders for a new 10-inch iPad to be released in the fourth quarter of 2012. John Gruber of Daring Fireball has previously called the fourth quarter iPad report “completely made-up nonsense,” however. Pegatron currently manufacturers both the iPhone 4S and the new iPad, but Digitimes claims the long rumored 7-inch iPad, which will supposedly be released in August, will be manufactured by Foxconn.

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Sprint’s director of consumer acquisition, David Owens, said at the CTIA Wireless trade show on Tuesday that he’s “still bullish on Apollo,” possibly indicating the nation’s third-largest carrier plans to soon offer a wider selection of Windows Phone devices, PCMag reported. Owens at CES in January said the network’s only Windows Phone handset, the HTC Arrive, hadn’t “done well enough for us to jump back into the fire.” He did say, however, that Sprint would look into Windows Phone 8, known as Apollo, in the “August-September time period.” When asked about Samsung’s Galaxy S III, Owens said the carrier was “very pleased with the success of the Galaxy S II,” but he would not give further details about Samsung’s next-generation flagship phone. Owens did say that Sprint plans to release “12-15 LTE devices” between now and the end of the year, including smartphones, tablets, USB modems and hotspots. So far, the company has announced the Samsung Galaxy Nexus, LG Viper and the HTC EVO 4G LTE.

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Apple on Monday filed litigation that narrows the number of patent infringement claims against Samsung by roughly half, and Samsung five hours later offered to drop five of its twelve asserted patents, FOSS Patents reported. The South Korean manufacturer has argued that Apple’s case is still far too big to go to trial later this summer, and wants the  the iPhone-maker to drop additional claims. The Cupertino-based company has accused Samsung of being uncooperative, claiming the company became the number one smartphone vendor in the world by copying and infringing on its technology, and is seeking billions of dollars in damages. Samsung responded, stating that its smartphones and tablets contain “innovative, independently developed technologies.” If a settlement is not reached, a trial between the two companies is scheduled to begin in July.

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When asked about the slow roll-out of updates for its Android-powered smartphones and tablets, AT&T CEO Randall Stephenson claimed Google was at fault and the carrier could do nothing about it. “Google determines what platform gets the newest releases and when,” the executive said. “A lot of times, that’s a negotiated arrangement and that’s something we work at hard. We know that’s important to our customers. That’s kind of an ambiguous answer because I can’t give you a direct answer in this setting.” The Mountain View-based company has fired back, however, and said the CEO’s statements are not accurate. 

“Mr. Stephenson’s carefully worded quote caught our attention and frankly we don’t understand what he is referring to. Google does not have any agreements in place that require a negotiation before a handset launches,” a Google spokesperson told 9To5Google. “Google has always made the latest release of Android available as open source at source.android.com as soon as the first device based on it has launched. This way, we know the software runs error-free on hardware that has been accepted and approved by manufacturers, operators and regulatory agencies such as the FCC. We then release it to the world.”

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Wireless carriers have traditionally made money off lengthy two-year service agreements, rather than physical device sales. In the age of smartphones, however, carriers are footing the bill for expensive handsets that result in smaller margins, while phone makers such as Apple reap the benefits. To combat traditional phone subsidies, carriers in the U.S. have continued to raise monthly rates and employ new and higher fees. In Europe, service providers are taking more aggressive measures, with some carriers refusing to subsidize devices for new customers. The carriers’ latest cries of resistance are drawing applause from investors and analysts alike, who say carriers could benefit more from the smartphone boom if they raise contract prices and slow the rate at which customers buy new phones.

“Optimism has increased that we are witnessing the leading edge of a more disciplined, and more profitable, future,” Craig Moffett, a telecom analyst at Bernstein Research, wrote in a research note obtained by The Wall Street Journal. The analyst went on to question the difficulty carriers face when increasing prices due to “increased discipline and pricing power.”

Spain’s two largest wireless service providers, Telefonica and Vodaphone, no longer offer phone subsidies to new customers. The carriers are eventually hoping to retain customers, however, and then continue to offer phone discounts to existing subscribers who are looking upgraded their devices. Telefonica allows users to either pay nearly $800 for new smartphone, or sign up for an installment plan that adds 18 monthly payments of about $45 to their bills. The change in policy has resulted in 25% reduced spending on device subsidies.

Verizon Wireless chief executive officer Lowell McAdam previously mentioned Telefonica’s installment-plan and said the nation’s largest carrier may follow. “We’ll probably offer some things like that, and then we’ll see what the adoption is like,” the executive said. “You can’t push this on customers before customers are ready for it”

Wall Street has taken notice of the carrier’s concerns, and shares of Apple recently plummeted on concerns that carriers may soon squeeze iPhone subsidies. During the company’s earnings call, Apple CEO Tim Cook downplayed carrier subsidy concerns and told analysts that carriers will continue supporting the iPhone because carriers “want to provide what their customers want to buy.”

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Rovio on Monday announced the company’s financial results for 2011. The mobile game developer generated $106.3 million in sales based on the success of its Angry Birds games and strong merchandising business. “The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand.” Mikael Hed, Rovio CEO said. “The heavy investments made in 2011 to all business areas will be seen in future products. To ensure continuous success we need to be creative and stay focused on entertaining our millions of fans by continuously developing new and innovative products and services.” Rovio’s three Angry Birds offerings in 2011 — Angry Birds, Angry Birds Seasons and Angry Birds Rio — were downloaded 648 million times and featured 200 million active monthly users. The company expects business to continue to grow well into 2012. “We are very optimistic about 2012 due to significant investments in product development, cutting-edge branding, brand protection and corporate infrastructure,“ the CEO said. Rovio’s press release follows below.

ROVIO ENTERTAINMENT REPORTS 2011 FINANCIAL RESULTS
07.05.2012

Helsinki, Finland – Rovio Entertainment Ltd, the world’s leading provider of mobile entertainment and creator of the Angry Birds franchise, today had the pleasure of announcing the financial results for the full calendar year of 2011.

Total revenue amounted to €75.4 million ($106,3 million) driven by strong growth in game download activity and consumer product sales. Earnings before tax were €48,0 million ($67.6 million) or 64% of total revenue in 2011.

“The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand.” Mikael Hed, Rovio CEO said. “The heavy investments made in 2011 to all business areas will be seen in future products. To ensure continuous success we need to be creative and stay focused on entertaining our millions of fans by continuously developing new and innovative products and services.”

The Angry Birds franchise fuels Rovio’s performance

The financial outcome of 2011 is very positive for Rovio. Rovio’s different business areas, Games, Advertising, and Consumer Products, are fully rolled out and generated both revenue and profit.

The Consumer Products business area, which includes both Merchandising and Licensing income, generated revenues that represent a about 30% of total revenue in 2011. The company was working together with more than 200 licensing partners on developing new products and services within the Angry Birds franchise.

Rovio’s game offerings in 2011 consisted of three games, all based on the Angry Birds characters: Angry Birds, Angry Birds Seasons, and Angry Birds Rio. The games are available as both free and paid versions on all popular mobile and connected devices. The total number of game downloads reached 648 million by the end of year 2011 and the total number of active monthly users, across all platforms, reached 200 million.

The number of employees grew from 28 to 224 during the year 2011.
Market and business development expectations

Future sales will to a large extent depend on the launch schedules and success of new games and initiatives in 2012. As sales of new devices remain the main driver for mobile game downloads, Rovio expects business to continue to grow accordingly.

“We are very optimistic about 2012 due to significant investments in product development, cutting-edge branding, brand protection and corporate infrastructure,“ Mikael Hed said.

Notes:
- Currency exchange rates EUR/USD is based on 2011 median of 1,41.
- Rovio Entertainment Oy´s financial figures have been prepared in accordance with Finnish Accounting Standards (FAS).

The majority of mobile subscribers in the United Stated now own a smartphone according to the latest numbers from Nielsen. The research firm found that 50.4% of all U.S. mobile subscribers owned smartphones in March, up from 47.8% in December 2011. Consumers purchasing new phones picked smartphones more often than featured phones, with Apple called the top manufacturer and Android as the top platform. During the first quarter of 2012, 48% of smartphone owners had an Android-powered device, while 32% of devices ran iOS and 11.6% were on the BlackBerry platform. The dated Windows Mobile OS owned a 4.1% share of the market, ahead of Windows Phone at 1.7%.

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Nokia continues to struggle as the once dominant cell phone maker continues to lose share in both the smartphone and broader mobile market. The Finnish vendor’s Lumia handsets have yet to take off and Nokia’s stock has tumbled 90% over the past five years. Nokia CEO Stephen Elop may look toward his former employer, Microsoft, to step in and help the troubled handset maker, Reuters suggests. The company’s partnership with the software giant is seen as a last chance to turn its business around. Microsoft is already paying Nokia $1 billion a year to use the Windows Phone platform, and many analysts believe the company may be willing to help out further if Nokia’s problems were to intensify.

“If Nokia ends up in financial difficulties I believe the helping hand would be there,” said Sami Sarkamies, an analyst at Nordea. Another technology banker agreed, saying “I don’t see Microsoft owning Nokia, but it would definitely provide financing to the tune of a couple of billion dollars.”

If Microsoft were to support Nokia, it would most likely be in the form of an inter-company loan or an equity stake, rather than a full takeover, the report suggests. Despite having nearly $60 billion of cash, the the Redmond-based company has traditionally steered clear of the hardware business where mobile is concerned.

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