Kara began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at around $3 billion. Also on the list of stuff from 1994 being jettisoned from tech companies is the original instant messenger, ICQ. Kara reported that AOL seeks to shed the brand in an effort to keep the larger ship afloat. Over at Yahoo (YHOO), Kara opened the lid on CEO Carol Bartz’s shifting of top execs. In Silicon Valley’s house of cards, everyone watches out for a shuffle.

Over at Digital Daily, John brought some hard numbers to the stresses being felt by AT&T’s (T) 3G network thanks to a certain fruit-flavored smartphone. It seems that the iPhone is largely responsible for the 2,000 percent increase in data traffic in the San Francisco Bay Area compared with a year ago. (Weekend Update doesn’t claim sole responsibility.) Keeping up with layoff news these days is almost a full-time job. It’s a good thing Paczkowski is on the case. This week, Sony-Ericsson let roughly 2,000 employees go. The firm plans to shutter whole offices in both the United States and abroad. John finished strong with a whole slew of posts about the forthcoming Google (GOOG) Chrome OS, which was released in a developer’s beta this week. Next year, the good kids may be getting their stockings filled with Chrome rather than Apples.

You can never tell what MediaMemo will have up its sleeve in a given week, and this one was no exception. Peter came in early with reports that Wired magazine is another publication betting on a certain tablet. Wired may pave the way for other Condé Nast publication e-editions. From the department of “Hey, it looks like it worked for them,” a couple of music giants will release a Hulu-like service for music videos. No word yet on whether the Internet killed the video star. Peter closed it out this week with the fizzle that will be Oprah’s broadcast career. The talk-show-host-turned-deity will end her broadcast career in 2011, but may not be sorely missed by CBS, according to MediaMemo. Everyone is pretty torn up about Gail leaving though.

Personal Technology went a little off the reservation this week and covered an intriguing specialty gadget with a very specific target audience. The reading aid for the visually impaired is unusual for many reasons, not the least of which is that its branded Intel (INTC) both on the inside and outside. The reader uses a downward-facing camera to read text and translate it directly to speech. Walt was pleased with the device on the whole, though he encountered some bugs and a somewhat steep learning curve that may be a function of the novel nature of the product. Over at Mossberg’s Mailbox, the lead question this week was about data loss. Once the geek shudders stopped, Walt let the reader know that there are many alternatives to Apple’s (AAPL) Time Capsule drives, and the integrated Time Machine option is one useful alternative. At Mossberg Solution, Katie won a fight with a Pixi and brought us the blow-by-blow account. The cheap-and-cheerful version of the Palm (PALM) Pre features a stripped-down price. That savings came at too high a performance cost, said Katie. She praised Palms webOS, but came down on the side of spending a little more to get the Pre.

Stay tuned and check back often. Weekend Update will be back next week as long as we can make it out for the Black Friday sales with all our fingers and toes.

Among Chrome OS’s advantages: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS reside in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.” Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s (GOOG) top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.

Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.

And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”

As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and through YouTube, a video device.

A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL). An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft (MSFT) is already developing for it.

Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Sundar Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.

Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.

The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos. But Web applications like those that Chrome OS use are different. They are Web apps so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.

In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.

Good news for Microsoft (MSFT). Clearly, Bing’s traffic is not yet leveling out. That said, it should be noted that according to comScore (SCOR), whose search data are most highly regarded by Wall Street, Bing never lost search market share in the U.S.

“Verizon is displaying maps of the United States that purport to show each carrier’s ‘3G’ coverage. The maps use color to depict the areas of the country in which each carrier has ‘3G’ coverage and blank or white space in the areas of the country where ‘3G’ coverage is not available. Consumers are interpreting the white or blank space on the maps to mean that AT&T customers who are not in an AT&T ‘3G’ coverage area have no wireless coverage whatsoever, and therefore have no ability to use their wireless devices for any purposes in vast areas of the country. This interpretation is not surprising as Verizon, in its own coverage maps, uses white space to inform customers that no coverage of any kind exists. Contrary to the misleading message conveyed by Verizon’s advertisements, AT&T customers can fully use their wireless devices outside of a ‘3G’ coverage area and undisputedly have coverage in areas depicted by the white or blank spaces on the maps used in Verizon’s advertisements.”

– Excerpt from AT&T’s complaint against Verizon

If AT&T’s lawsuit over Verizon’s allegedly misleading “there’s a map for that” wasn’t a public relations mistake to begin with, it will be by the time Verizon gets through with it. Responding to the suit today, Verizon (VZ) rep Jeffrey Nelson used it to stoke public perception that AT&T’s (T) network is inferior to Verizon’s.

“This is a junk lawsuit. It has no merit,” Nelson told Adweek. “It’s surprising that rather than defend the ‘blue’ hot spots on their 3G map, our competitor instead focuses on their white spaces. The maps clearly note that the comparisons are of 3G service, and further note that voice and data services are available in other places.”

Way to draw attention away from Verizon’s claim of a superior network coverage, AT&T.

“In an effort to provide you with greater transparency and control over their own data, we’ve built the Google Dashboard,” the company explained in a blog post. “Designed to be simple and useful, the Dashboard summarizes data for each product that you use (when signed in to your account) and provides you direct links to control your personal settings.”

And it does do that, offering a nice single view of all of the data associated with our Google accounts. That said, it’s not quite the extraordinary achievement Google would have us believe.

I suppose it is true that “the scale and level of detail of the Dashboard is unprecedented,” as Google claims. That said, it doesn’t offer much in the way of new information. Noticeably absent from Dashboard is any view of the cookie data Google uses to target ads. Essentially, all Dashboard does is consolidate the admin pages of the services associated with a user’s account in a single place. Convenient, yes. But does it tell us anything we didn’t already know? Or, more importantly, how Google is using that information? No.

Why? As research house Jefferies & Co. explains in a research note to clients today, if Twitter hasn’t yet managed to transform its popularity into significant revenue, how will Microsoft (MSFT) or Google (GOOG)?

“While we believe Microsoft pulled off a little bit of a media/PR coup by announcing the Twitter deal and forcing Google to rush into a similar deal, we do not believe Microsoft will be able to capitalize on its first mover advantage in the short run since neither search engines nor Twitter have figured out how to monetize the data streams from Twitters (affectionately known as Tweets),” Jefferies analysts wrote.

“We believe that users focused on real-time data would be less tolerant to advertising,” the research note adds. “That said, we can see new business models emerging down the line where the realtime tweets blended with local information (traffic conditions, flight arrivals, etc.) could be more easily monetized and where ‘premium’ tweets from celebrities could be included for a premium subscription. For now, the real-time data integration would mean more refreshes from the users to get up to the minute updates, which should translate into higher query volume, all else equal.”
 

Pretty damn badly.

Posting third-quarter earnings that topped Wall Street expectations this morning, AT&T (T) said it activated a record 3.2 million iPhones during the period (not surprising given Apple’s blowout quarter).

Of those, 40 percent were for customers new to the carrier. That’s quite a bit more than Wall Street expected, and this surge did much to balance continued weakness in AT&T’s wireline business (click on slide below to enlarge). In fact, if that 40 percent metric is accurate, then Apple’s (AAPL) iPhone single-handedly generated an astonishing 92 percent of AT&T’s post-paid subscriber growth.

“We delivered a terrific wireless quarter, IP data growth was strong and execution across the business continues to be solid,” AT&T CEO Randall Stephenson said in an earnings release, and indeed, that would seem to be the case.

Wireless data-services revenue spiked 34 percent. And revenue from the wireless segment overall increased 8.2 percent as profit grew 41 percent. Wireless turnover rate fell to a record low of 1.4 percent.

Meanwhile, wireline revenue fell 7.1 percent, profit 30 percent.

So in the end, AT&T posted earnings of $3.2 billion, or 54 cents a share, down from $3.23 billion, or 55 cents a share, a year earlier. Revenue slipped 1.6 percent to $30.86 billion. Analysts polled by Thomson Reuters expected per-share earnings of 50 cents on revenue of $30.88 billion.

At $26.86, shares of AT&T are up about 3.5 percent in early morning trading.

How nonexclusive is Microsoft’s deal with Twitter?

So nonexclusive that just hours after Microsoft (MSFT) announced it, rival Google (GOOG) lurched forward to say that it has entered into a similar partnership with the San Francisco-based microblogging service.

The search giant may be second to this party, but it’s not going to be late. But make no mistake–this is very clearly a rush job.

Some proof? Microsoft has code running. Google does not.

Twitter and Google announced the deal in posts to their respective company blogs.

“Our friends down in Mountain View want to organize the world’s information and make it universally accessible and useful,” Twitter co-founder Evan Williams wrote. “A fast growing amount of information is coursing through Twitter very quickly, and we want there to be many ways to access that information. As part of that effort, we’ve partnered with Google to index the entire world of public tweets as fast as possible and present them to their users in an organized and relevant fashion.”

Marissa Mayer, Google’s vice president of search, was similarly enthusiastic about the deal.

“We believe that our search results and user experience will greatly benefit from the inclusion of this up-to-the-minute data, and we look forward to having a product that showcases how tweets can make search better in the coming months,” Mayer wrote. “That way, the next time you search for something that can be aided by a real-time observation, say, snow conditions at your favorite ski resort, you’ll find tweets from other users who are there and sharing the latest and greatest information.”

Once Google gets around to indexing Twitter’s real-time data.

Lu also confirmed a similar deal with Facebook.

bing is bringing twitter search to you

October 21, 2009, 10:24 AM by Bing | 0 Comments
One of the most interesting things going on today on the Internet is the notion of the real time web. The idea of accessing data in real time has been an elusive goal in the world of search. Web indexes in search engines update at pretty amazing rates, given what it takes to crawl the entire web and index it for searching, but getting that to “real time” has been challenging.

The explosive popularity of Twitter is the best example of this opportunity. Twitter is producing millions of tweets every minute on every subject you can imagine. The power of those tweets as a form of data that can be surfaced in search is enormous. Innovative services like Twitter give us access to public opinion and thoughts in a way that has not before been possible. From important social and political issues to keeping friends up to date on the minute-by-minute of our daily lives, the web is getting more and more real time.

Search needs to keep up. Shortly after we launched Bing, we did an experiment with the team at Twitter, where we took a fairly small number of “celebrities” from Twitter and provided access to their tweets as part of the search result. Here is a great example.

But what if we take that to the next level? What if we indexed basically the whole public Twitter stream and made it available to customers?

We’re glad you asked that. Because today at Web 2.0 we announced that working with those clever birds over at Twitter, we now have access to the entire public Twitter feed and have a beta of Bing Twitter search for you to play with (in the US, for now). Try it out. The Bing and Twitter teams want to know what you think.

How does this all work?

Were you as fascinated by the 6-year-old boy floating away in a balloon as we were? Was it a hoax? We know that people are going to twitter more and more for information surrounding all the latest chatter.

You can now search for what people are saying all over the web about breaking news topics, your favorite celebrity, hometown sports team, and anything else you use Twitter to stay on top of today.

If you want to keep an eye on this topic, you can just watch the Tweets roll in. Or, click on “See more Tweets about…” to go to a page full of Tweets. On that page, you can change the ordering to “Best Match.” Here we arrange Tweets differently. If someone has a lot of followers, his/her Tweet may get ranked higher. If a tweet is exactly the same as other Tweets, it will get ranked lower. For example, I saw a Tweet from ABC News ranked pretty high in the Best Match mode during the “boy in the balloon” fiasco. By the way, you won’t see any of your tweets if you protected or deleted them, and tweets don’t last more than 7 days in our index.

Are you a Taylor Swift fan? Just think of all the links that are shared on twitter that have to do with Taylor. To help you find these links we sift through and find the most interesting and hot trending links that other search engines usually don’t pick up on. Below you can see a couple of interesting links shared by Twitter users–some news and some gossip.

Instead of the usual captions that are used for links, we decided to give you a “social caption” and show you what people are saying about these links.

Our team has been using this product internally, below are some situations where it came in handy:

Sean Suchter (my boss) and I avoided a closed freeway on a rainy Seattle day and made our flight home.
Eric Scheel (principle program manager on the team) a photo-gear junkie, keeps up on early product reviews and owners’ tweets, which helped him decide on his next purchase.

My wife thinks I am almost cool because I know stuff about Taylor Swift.

We’d love to hear some stories from you about how this may have helped you. Of course, we also want to hear your ideas about how to keep improving this product.

Paul Yiu and the Bing Social Search Team

Now, that figure includes sales made abroad, so we don’t yet know how many were sold by AT&T (T), but it’s clear that the number was substantial. In its third quarter last year, AT&T activated 2.4 million iPhones and 40 percent of those were for subscribers who switched from other carriers. So the fact that Apple (AAPL) sold as many iPhones as it did in the company’s most recent quarter, bodes well for the carrier.

As Craig Moffett over at Bernstein Research notes, “It is entirely conceivable that AT&T’s iPhone alone will account for more than 100 percent of the entire industry’s post-paid subscriber growth in the third quarter.”

But therein lies the rub. For while sales of Apple’s handset remain strong, the heavy subsidies it requires have pushed AT&T’s wireless margins down. And the heavy data traffic associated with the handset have led to widespread complaints about AT&T’s network, forcing infrastructure upgrades. Worse, AT&T’s dependence on iPhone exclusivity at a time when Apple is clearly transitioning away from such a model leaves it quite vulnerable.

“While the strong sales of the iPhone are positive for AT&T in the near term, they increase the company’s reliance on a product for which we do not believe it will be able to maintain exclusivity,” Pali Research analyst Walter Piecyk wrote in a note to clients Tuesday. “We believe more than one third of AT&T’s post paid customer base is tied to an iPhone user and that mix is likely to rise significantly over the next few quarters.”

But not this quarter. This quarter, AT&T is expected to add 1.5 million to 1.7 million net wireless customers, driven by demand for the iPhone 3GS, which was released early on in the quarter. And while another drop in wireline customers is likely to weigh on results, it will be tempered once again by the iPhone. AT&T is expected to earn 50 cents a share, compared to 55 cents in the year-earlier third quarter, according to analysts polled by Thomson Reuters, who see revenue falling to $30.9 billion from $31.3 billion.

“We are pleased to report that we have recovered most customer data for those Sidekick customers whose data was affected by the recent outage,” Roz Ho, corporate VP of Microsoft’s ironically named Premium Mobile Experiences division, said in a letter to customers.

“We plan to begin restoring users’ personal data as soon as possible, starting with personal contacts, after we have validated the data and our restoration plan. We will then continue to work around the clock to restore data to all affected users, including calendar, notes, tasks, photographs and high scores, as quickly as possible.”

That’s quite a change from what Microsoft (MSFT) said a few days ago when it warned that user data had “almost certainly” been lost and that the likelihood of recovering it was “extremely low.” Still, it’s clearly the best outcome for a bad situation.