CourseCast of the Week

Episode 0034, 02/01/2008

Title: Yahoo! Offer, Underseas Communications, and Contactless Payment

Description: This week’s CourseCast segment reviews Microsoft’s offer to purchase Yahoo!, updates you on the communications damage under the sea, and follows up on the latest developments from contactless cell phone payment.

Welcome to Course Technology's CourseCast of the week, Episode 34, recorded February 1st, 2008.

This is Ken Baldauf bringing you this week's technology news and information.

This CourseCast is brought to you by Course Technology. Check out www.course.com for innovative textbooks and creative electronic learning solutions.

Story 1 - Microsoft Offers $44.6 Billion for Yahoo!

In headline grabbing news, Microsoft's CEO Steve Ballmer wrote a letter to Yahoo's board of directors offering to purchase Yahoo! for $44.6 billion dollars. Ballmer thinks that if Microsoft and Yahoo combined forces, it would provide what he calls a more "credible" alternative to Google for online advertising and services. Ballmer recognized Google's dominance in the online adverting market and stated that "By combining the assets of Microsoft and Yahoo we can offer a more competitive choice for consumers, advertisers and publishers". Microsoft expects the online advertising market to double in size over the next three years. Yahoo has been experiencing problems recently with declining profits, and plans to layoff 1,000 employees. Upon news of Microsoft's offer, Yahoo's shares rose 45 percent to $29.95.

Source: Microsoft offers to buy Yahoo for $44.6B (ComputerWorld), Yahoo Plans 1,000 Layoffs, Sees Growth as Profits Fall (Top Tech News)

Story 2 - Underseas Communications Cables Damaged

The Internet backbone, the main telecommunications channels that make up the Internet, consists of the cables, routers, and satellite systems owned and maintained by big telecom companies like AT&T and Verizon. Ninety-five percent of global telecommunications travels undersea over what are referred to as submarine fiber optic cables. This week two undersea cables were damaged in the Mediterranean Sea near Egypt, causing Internet service disruptions that were felt to some extent around the world. The cause of the damage is not yet determined, but some suspect that the anchor of a ship, forced to anchor due to a bad storm, may be responsible. The damage forced international data packets to be rerouted the long way around the world, over already crowded bandwidth. Internet access in India is running at eighty percent capacity. Egypt was cut back to forty percent capacity. The entire south Asia and the Gulf region have been notably impacted. Those from outside the region may experience delays in communications with the region, which is particularly important for US businesses who have outsourced or partnered with businesses there. The impact of this accident is considered minor compared to the 2006 earthquake that broke nine submarine cables cutting connections between southeast Asia and the rest of the world. None the less, it is a reminder of the Important role that the Internet plays in our global economy.

Source: "India Internet capacity at 80 pct after cables break" (Reuters), "Cable cuts force rerouting of Internet traffic around the world" (Computerworld)

Story 3 - That will be $5, please swipe your cell phone

230 San Francisco commuters are taking part in a trial that allows them to pay for public transportation and fast food with the swipe of a cell phone. The Bay Area Rapid Transit, or BART for short, has partnered with Samsung, and banks to give cell phones the power of credit cards. Specially-equipped Samsung phones with near field communication technology are being tested by commuters who simply pass the phone over a pad to pay for train fare and meals at Jack-in-the-box restaurants. The money is automatically debited from the user's bank account. This technology is old-hat for cell phone users in Japan, South Korea, and elsewhere. If the trial is successful in San Francisco, it will soon be commonplace in the US as well.

Source: " BART Allows Some Riders To Pay By Cell Phone" (CBS5.com - video), Contactless payment trial goes live on San Francisco's BART (Engadget)

New Briefs

Garmin, the GPS Company, has published press releases of its first cell phone - the nuviphone. It's the "breakthrough product that cell phone and GPS users around the world have been longing for" according to Garmin's president and COO. (Engadget)
A report from EDUCAUSE calls for the US government to invest $100 billion to bring fiber optic cable to every home and establish a national broadband infrastructure. According to the report, the US ranks 14th in the world in providing broadband Internet access to its citizens. (Ars Technica)
The FCC has surpassed its minimum expectations of raising $10.3 billion for the 700 MHz wireless spectrum. As big corporations compete for this valuable property it's anyone's guess as to where it will end. Perhaps they will raise the $100 billion required for the fiber to build our national broadband infrastructure! (Ars Technica)
A notebook owned by the UK military containing unencrypted private information on 600,000 recruits was recently stolen. The UK's ministry of Defense is conducting a review of information security policies. (Ars Technica)
A disabled American spy satellite is in a rapidly decreasing orbit and expected to plunge to earth in late February or early March. (Top Tech News)
Amazon has purchased audio book giant Audible.com for $300 million. Now we know why the Kindle has an earphone jack. (Computerworld)
A rumor to juicy to pass up, from Engadget and elsewhere, claims that Dell and Google have partnered to make a cell phone. The g-phone lives again! (Engadget)

That's it for this week's CourseCast. Links to this week's stories and many more news and information resources are provided at the CourseCast Web site at www.course.com/coursecasts. E-mail us with your suggestions for the show at course.coursecasts@cengage.com. Until next time, have a great week and be sure to take advantage of the Power -- of Technology!