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Updated: 9 years 3 weeks ago

Mobilicity moves to avoid shutdown of service if company sold

At a time when small Vaughan, Ont-based wireless carrier Mobilicity is considering a sale to an incumbent, its founder and employees have presented an offer to the federal government that would restructure the company in an attempt to avoid a pending shutdown of its operations in the event of an acquisition.

According to a news release published Monday, the group has offered to acquire the 155,000 current active subscribers, its dealer network of over 150 points of distribution, the existing call centre operators and other vital contractors by setting up a Mobile Virtual Network Operator (MVNO) relationship with any potential acquirer. Doing so would mean Mobilicity would pay a fee to use the network infrastructure of its acquirer but allow the company to continue operating in the five major markets where it currently serves Canadians.

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“The Big 3 telecoms want Mobilicity spectrum and this Group is not objecting to that sale,” the release says. “We owe it to the customers, dealers, contractors and employees to stay in business going forward and not face uncertain demise like Public Mobile or other past wireless operators in Canada.”

The wireless network of former new entrant Public Mobile was shut down months after it was acquired by Telus Corp. in late 2013, forcing its lower-paying subscribers to migrate to a cell-phone plan over at Telus. The news release states that re-categorizing Mobilicity as an MVNO would result in uninterrupted service.

Capital funding for the transaction would be provided by holding company Obelysk Inc., the private equity company of Canadian businessman John Bitove, who founded upstart Mobilicity in 2008.

The Financial Post has reported that Telus and rival Rogers Communications Inc. appear to be locked in an escalating bidding war for financially crippled Mobilicity, which has been operating under court-supervised creditor protection since September 2013. Mobilicity’s creditors and directors met Saturday by conference call to assess the two offers, which are said to exceed the $350-million figure Telus had offered when it failed to acquire Mobilicity in 2014. The negotiations are said to be ongoing.

cpellegrini@nationalpost.com

Winnipeg developed Clandestine: Anomaly aims to change how we think about alternative reality games

A cutting edge alternative reality game spawned in the wintry streets of Winnipeg?

Stranger things have happened.

ZenFri, a 10-person multidisciplinary studio based in the heart of The Peg, is releasing its first game – Clandestine: Anomaly – later this month for iOS devices.

Headed up by 29-year-old studio co-founder and chief executive artist Corey King, the project aims to put players in the role of a human involved in an intergalactic conflict who uses a suped-up phone to see things other people can’t.

King’s idea for an alternative reality adventure took root more than four years ago, mere hours after he purchased his first iOS device. But it took a while for his concept to take shape.

Experienced in film, writing, and art, King didn’t know any coders, so he needed to gather people to help build his game and realize his vision. He also hooked up with Joshua Ortega, an established novelist, comic book writer, and lead writer for the blockbuster console game Gears of War 2, who assisted with the story.

Along the way he managed to secure an investment from the Canada Media Fund, and even pick up a design award from at the GamAR 2013 Metaio Developer Competition based on an early prototype of the game.

Now Clandestine: Anomaly is just days from release. Post Arcade chatted with King to learn more about the game, the role that alternative reality plays (it turns out to be optional), and whether we ought to expect to see paranoid looking people on the street staring at the world through the screens of their phones anytime in the near future.

[youtube=http://www.youtube.com/watch?v=V8JhfI9ZkNc&w=620&h=349]

Post Arcade: It’s safe to say some people are flummoxed by the whole geolocation AR thing. Can you explain what it’s all about, and, more specifically, how it works in your game?

Corey King: Geolocative AR is about using technology already in your pocket to transform your environment. Using your smart device’s camera, compass, GPS, and gyroscope, we try to create the illusion that digital characters and objectives have been placed in the real world.

It’s kind of like Who Framed Roger Rabbit?, only the live action elements are the real world, as seen through your mobile device.

Weirdly, the closest I’ve come to experiencing a geolocation AR game was inside another game: Watch Dogs. It has AR mini-games in which the protagonist blasts aliens only he can see (via his phone) in public spaces. Is that vaguely the same as Clandestine: Anomaly, or am I totally out to lunch?

It’s similar in that they are both about a hidden conflict you can only see with a phone, and that the deaths of aliens are involved, but that’s where the similarities end. We are inspired by ARGs (Alternate Reality Games), and trying to sell the fiction of the game as “real” as opposed to arcade-y or cartoony.  This informed a lot of design choices.

Looking at the Watch Dogs mini-game, and how your character runs around in public, they look foolish even within the context of the game world. A lot of AR games try to do this, and it’s a massive barrier to enjoying the game. No one wants to be embarrassed as they play. We actually put a lot of effort into building the mechanics around not looking foolish in public, and playing safe.

For starters, the entire game can be played without AR. AR allows powerful location-based abilities when you walk to the real-world location of a battle, but you can always stick to commanding units remotely from the comfort of home.

Should you choose to use AR it’s a special power-up with a limited duration. We aimed to make it so that you’re in AR for bursts no longer than the time it would take to snap a few photos, this is so that you are never obligated to hold your phone up in the air too long, and so that the whole experience is less socially awkward. We built this around the idea that your primitive human phone needs a “boost” to see the covert events around you, and that boost has to be within signal range of your units and can only last a short time.

We also don’t use the phone like a gun, which is the bane of so many AR games. In Clandestine: Anomaly, your phone is still just a phone, only it’s been supercharged with alien technology. You can command and control units, as well as call in airstrikes, but your phone itself doesn’t shoot, it’s a communication device. Like any normal mobile device it receives text and video messages from characters, as well as directs other in-game assets.

The whole idea that your phone is just a phone impacts even the tower tactics side of the game, as you need to build signal towers, which we call Pulsars, in order to help reveal the enemy’s location and see them.

Our game is designed to be played in your own neighbourhood. This locality provides an intimacy that is lost in the Watch Dogs example, as well as in location based games like IngressClandestine: Anomaly is about you, your phone, and your neighbourhood.

ZenFri

You sort of answered my next question, which is whether people will feel weird playing alone in public.

James Bond works alone. He has contacts, gets intel, and gadgets from Q and so on, but at the end of the day it’s just one man who gets his hands dirty. The covert nature of the story and where this game takes place in the larger story timeline dictates that you’re a single anomalous entity in a much, much larger context.

We do have ambitions to make future multiplayer games using GPS and AR and within the same IP, but Clandestine: Anomaly is about you.

By making this a single player game and setting Clandestine: Anomaly just within your neighbourhood we have the benefit of allowing users to access GPS and AR features without using any data after the initial setup. Once you download the app, and go through the initial setup phase, you have a feature-complete game, no other data required. I’m not sure there is another GPS game like that.

The story was co-penned by Gears of War 2 scribe Joshua Ortega. How did he become involved, and what has the presence of an experienced, award-winning game writer added to Clandestine: Anomaly?

As the other writer on the project, I got to work directly with Joshua. I’m still surprised by the whole thing, and have no idea what attracted him to the project.

He became involved through someone who I’d now consider a mutual friend named David Greene. David was a friend of Joshua, whom I had just met at Augmented World Expo in Silicon Valley. David saw my talk at that conference and thought I should meet Joshua knowing Joshua was interested in becoming involved with an AR project. It’s all kind of strangely inexplicable really, I met the right person at the right time, he liked what I was up to, and knew Joshua would, too.

Joshua took what I had written and improved it in a million tiny ways. There is no single instance that I can pin down and say, “Josh did that!” The Clandestine universe and plot were all pretty well laid out, but Joshua brought it all up to the next level, and helped develop the narrative to flow more quickly and effortlessly.

Beyond being an absolute professional, he brought a sense of confidence. I began truly believing that we may be onto something special, not just in this single game, but in the grand Clandestine universe, and story arcs that I’d created.

ZenFri

The trailer makes the experience look pretty futuristic. Did you have to develop or modify any technology to realize your vision, or are you simply employing existing AR and geolocation systems?

Thanks. I’m glad you find it to be impressive!

In the teaser where we meet the player’s companion, Nuncio, is actually the least sophisticated use of AR that you’ll find in the game. In the late game missions, if you walk to the mission locations and use AR, you’ll literally feel surrounded by the battle, with colossal machines of war firing on enemies that are attacking all around you.

A small taste of that is in our new gameplay trailer. But even that is an example of AR in an early mission.

We’re using a bunch of established technologies like Unity 3D, Open Street Maps, and Metaio (an AR SDK very recently purchased by Apple), but there is a lot of custom code working between all these systems to get it all working together nicely. The heaviest custom code was used to get the AR, GPS, and Maps to work together nicely, and to eliminate the “jitter” and other stability issues you normally get with GPS based AR.

Winnipeg is better known for Neil Young and Winnie-the-Pooh than innovative game studios. What’s it like working on games there? Is there a network of indie developers who know and rely on each other?

We have a very supportive community that’s small enough to work together, but large enough to have a few of us thrive. ZenFri is neither the largest, nor the oldest studio in the city.

My own creative temperament is to work pretty isolated from other companies, but still collaborate on community-wide issues and events.”

ZenFri

What’s your core demographic? Who do you expect to see wandering the streets of Winnipeg and other cities, phone in hand, rescuing humanity along with the broader galaxy?

Our core demographic is male, mid-core mobile gamers, although we hope it will expand far beyond that.

We believe that video games are for everyone, and that the exciting technologies used in conjunction with the optional active nature of Clandestine: Anomaly will intrigue those who do not typically consider themselves gamers. For us it’s about an overall experience, and we hope it’s a novel enough experience to reach further than it otherwise would.

We are aware that there is resistance with some hard-core gamers towards mobile games, and even to AR. We feel their pain; there isn’t a lot out there for them on mobile and in the case of AR most games are worthy of the ridicule.

Our goal has always been to try to sway those people into incorporating mobile games to their day. We believe that by leveraging cutting edge technology in order to create a large immersive experience on a small device, Clandestine: Anomaly will entice those who most often game on PC or consoles. The phone is merely the keyhole into what we feel is a very big experience.

Of course we’re getting close to finding out if we’ve succeeded or not.

As to seeing people out and about playing the game, we’re as curious as anyone to see what the uptake is on the outdoor features of the game. Of course, I also realize that a good covert agent who has been entrusted to fight an intergalactic war might be hard to detect even if they’re right in front of you.

Ideally, they’ll be everywhere and barely be noticed.

The preceding interview was lightly edited for length and flow.

BlackBerry Ltd faces sea of skeptics Tuesday as investors brace for another ugly quarter

When BlackBerry Ltd. reports its first-quarter results Tuesday before the bell, investors and analysts will scour the release to find one specific metric: revenue, especially sales in the nascent software business.

The Waterloo, Ont.-based company has continued trimming expenses, announcing a surprise batch of job cuts in May, this time for an undisclosed number of people in its rapidly-eroding device division. But investors are still looking for signs of stability and proof that consumers and enterprises are buying the products, services and promises that BlackBerry is selling – and whether chief executive John Chen has made any meaningful progress in the turnaround effort he was hired to lead.

“BlackBerry is blocking and tackling well near term, delivering cost reductions and launching products on time,” RBC Capital Markets analyst Mark Sue wrote in a note to clients. “It’s hard to cut your way to glory.”

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There is a lot of skepticism among investors that glory is on the horizon. Amid relentless speculation about M&A and products, shares of BlackBerry have slumped 18.9 per cent so far this year, closing at US$8.91 on Friday in New York.
Analysts expect BlackBerry will record revenue of US$693.9 million for the period ending May 30, more than 28 per cent lower compared to the same time last fiscal year, according to data compiled by Bloomberg.

But the health of hardware is especially hard to gauge because BlackBerry records sales on a sell-through basis, an accounting policy that defers the recognition of revenue until a device is sold to the end customer by a wireless carrier. It reduces the likelihood of prematurely recording a sale that could be returned later. Chen has told reporters that he’d like to revise the policy, but needs to see stability in demand first.

The company has released new phones including the Classic and the Passport, models that RBC’s Sue says “may be receiving a good reception.” Conversely, analysts at Exane BNP Paribas “fail to see a meaningful traction of BlackBerry’s latest handsets in the highly competitive mid/high-end smartphone market.”

Many analysts, like the team at Credit Suisse, continue to publish research reports that call for Chen to exit the handset business altogether and go all-in on software. But that strategy isn’t fool-proof either.

There are strong reservations that Chen won’t be able to make good on his promise to double software sales in fiscal 2016 to US$500 million, plus another US$100 million from its BBM messaging service. “BlackBerry will have to start showing very brisk growth” to meet the benchmark, said analysts at Exane BNP Paribas. The revenue target is back-end loaded, with larger figures expected later this year.

Of the 32 analysts surveyed by Bloomberg, only four rate BlackBerry’s stock a buy, 19 a hold and nine a sell. The company’s stock has a 12-month price target of US$9.33. Analysts haven’t set a high bar so far for BlackBerry – what they seem to want the most from Chen is more visibility into his thinking.

“Whether the numbers hit or not,” said BMO Capital Markets analysts, “we hope management provides enough metrics to get some transparency on the underlying trends in the software-oriented recovery.”

cpellegrini@nationalpost.com

‘We don’t want something to unravel': Mobilicity weighs rival takeover offers amid government scrutiny

A group of creditors and directors of small Canadian wireless carrier Mobilicity met over the weekend to assess offers from two of the country’s telecommunications giants, which appear to be locked in an escalating bidding war to acquire the financially struggling Vaughan, Ont-based company.

Sources close to the negotiations told the Financial Post that top Mobilicity stakeholders met Saturday by conference call to evaluate the terms of two acquisition offers submitted by rivals Telus Corp. and Rogers Communications Inc. The offers are said to already exceed the $350 million that Telus had offered when it failed to acquire Mobilicity last year. The negotiations are said to be ongoing.

Telus spokesperson Shawn Hall confirmed Friday that the company is indeed still interested in purchasing Mobilicity and put forth a proposed transaction to Industry Canada for review. Hall declined to comment any further because the talks are confidential. Rogers spokesperson Aaron Lazarus declined to comment. Mobilicity spokesperson Joel Shaffer said Saturday that the company “continues to pursue a going-concern transaction” and “continues to engage with a number of parties,” but would not elaborate further.

Negotiations between the two incumbents and Mobilicity were renewed two or three weeks ago, but have really heated up during the past week, according to sources familiar with the discussion. The bidders’ willingness to increase their offers shows how big of a prize Mobilicity’s spectrum and tax losses are for Telus and Rogers, which have 8.1 million and 9.5 million wireless subscribers, respectively.

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“Guy is not Nadir,” said a source close to the negotiations, referring to the aggressive and assertive style of Rogers’ chief executive Guy Laurence compared to his more passive predecessor, Nadir Mohamed.

Laurence, who was hired in late 2013 with a mandate to improve Rogers’ customer service, is said to be willing to spend money in ways Mohamed was much more hesitant to. He offered a group of reporters a glimpse into his approach to spending at the company’s annual meeting in April, saying that “if it comes at a cost, whatever cost,” referring to any item that could contribute to his broader goal of making the client’s experience better, “I’ll find the money within the company. We’re a big company.”

Another source close to Mobilicity said its stakeholders, who have long-banked on a sale to an incumbent even though the government has had a rigid policy against it, are being “very, very cautious” and calculated not to fumble. “It’s really important that this not be done wrongly,” said the person who asked to remain unnamed. “There are a lot of players. The government is involved. We don’t want something to unravel.”

Mobilicity, which had 157,000 active subscribers and leased roughly 450 cell sites at the end of April 2015, has been operating under court-supervised protection since September 2013. The company has been trying to restructure and find the most-optimal exit for both creditors and investors. According to the preliminary list of creditors compiled in 2013, Mobilicity has been extended at least $248 million in secured credit and another $292.5 million in unsecured credit.

But persuading Mobilicity will be only half of any deal, as a spectrum license transfer to fledgling upstart Wind Mobile Corp., which could use the additional access to coveted wireless airwaves despite bulking up in a March auction, appears to be the lynchpin to getting the required stamp of approval from Ottawa.

Telus confirmed Friday that it had proposed to Industry Canada a handover of a spectrum license to Wind at no cost, an idea that has been reportedly floated before to no avail from the federal government. Another piece of uncertainty for the telecom sector is Friday’s announcement that Minister of Industry James Moore will not run for reelection in the fall.

The one-sided results of March’s AWS-3 spectrum auction in Wind’s favour, and how it changed the competitive landscape, is said to have made the government more willing to consider a takeover involving Mobilicity. Wind was awarded set-aside licenses in Ontario, Alberta and B.C. for a bargain price after Mobilicity couldn’t come up with the financing to participate.

“We’ve had a clear position on these types of transactions for some time,” Minister Moore’s press secretary Jake Enwright said Sunday, “We’ll not approve spectrum transfer requests that decrease competition in the wireless sector.” Ultimately, the Ministry would assess the conditions of a final deal – if there ever is one.

Knowing that a deal for both Telus and Rogers is contingent on its co-operation, Mobilicity’s arch rival Wind will likely “want the full meal, not just the appetizer,” an industry source told the Post. Mobilicity owns licenses to spectrum, that was set-aside specifically for new entrant carriers, airwaves for which incumbents weren’t allowed to bid. Wind has declined to comment.

Telus publicly clashed with Industry Canada when it tried to buy Mobilicity three times in 2013 and 2014, offering first $380 million and then $350 million. But Ottawa insisted that a marriage of the two carriers would hurt wireless competition for consumers and blocked the proposed transactions.

These valuations for Mobilicity, which many on Bay Street have balked at, have become sticky benchmarks in the market. Wind, which had 800,000 subscribers as of December and multiples more cell stations than Mobilicity currently has, was sold to a consortium of investors last September for about $300 million.

Financial Post
cpellegrini@nationalpost.com

Telus trying again to buy Mobilicity, wants to appease Ottawa by handing spectrum to Wind

Wind Mobile Corp. could emerge as the kingmaker in Telus Corp.’s latest attempt to acquire Mobilicity.

The Financial Post has learned that the Vancouver-based wireless incumbent recently submitted the terms of a proposed transaction to the federal government in which it would purchase the financially strapped Mobilicity while agreeing to transfer the ownership of some of the new entrant’s coveted spectrum licences to Wind Mobile, which could use the additional access to wireless airwaves, including the bulked-up arsenal it built up in a March auction.

Ottawa has previously blocked previous repeated attempts by Telus to take over Mobilicity, on the grounds that further consolidation would harm competition. The free handover of spectrum licences to help the presumed fourth-carrier Wind would appear to be a strategy to appease Ottawa’s concerns.

“We continue to be interested in acquiring Mobilicity,” Shawn Hall, a spokesperson at Telus, said during an interview on Friday night. “We recently put forward a proposal to Industry Canada in which we committed to transferring at no cost some of that company’s spectrum to Wind, or if that company doesn’t want it the spectrum, to another new entrant or to Industry Canada for reallocation.”

Alek Krstajic, chief executive of Wind, declined to comment. A spokesperson for Mobilicity did not return a request for comment late Friday.

Mobilicity has been operating under court-supervised protection since September 2013 and is attempting to restructure. Last month, the carrier secured another reprieve from its creditors from an Ontario court, affording its stakeholders four more months to review “credible interest” from “various parties” for “an acquisition transaction,” according to a monitor’s report filed during the company’s last stay extension.

Telus publicly clashed with Industry Canada when it tried to buy Mobilicity three times in 2013 and 2014, offering first $380 million and then $350 million. But Ottawa insisted that a marriage of the two carriers would hurt wireless competition for consumers and blocked each of the proposed transactions.

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Court filings show Mobilicity’s creditor group has been trying to resurrect a sale to deep-pocketed Telus for some time, which would see the carrier fetch more than if it was sold to a cash-strapped smaller player. But Telus’ relentless pursuit of Mobilicity, which is perceived an attractive target because of its spectrum and tax losses, has left the telecom giant in bad odor with the country’s regulator.

Joe Natale, chief executive at Telus, told the Post in May that his company had not renewed talks with the struggling carrier. “We are not, and we have nothing active going with Mobilicity, nor would we comment on anything we might be doing in the marketplace with respect to business development or otherwise.”

Facing the prospect of insolvency, Mobilicity said in court filings that it is striving for a “value-maximizing transaction” for both management and creditors, a task that has proven to be a challenge for a group that can’t even seem to agree on how to reach the most-optimal exit, as illuminated in public legal documents.

The Globe and Mail has reported that Rogers Communications Inc. also submitted a proposal to Ottawa inquiring about a possible purchase of Mobilicity. A spokesperson for Rogers declined to comment.

Financial Post
cpellegrini@nationalpost.com

$1-billion fibre optic investment will make Edmonton Canada’s ‘first gigabit society,’ Telus Corp says

EDMONTON – Telus says its $1-billion fibre-optic Internet build out in Edmonton will give the city a technological and economic upper hand that will boost innovation, education and streamline health care.

The company announced Friday it is expanding its network of high-speed fibre optic cables in Edmonton, connecting 90 per cent of residents to super fast web browsing. The technology uses glass or plastic threads to transmit data as pulses of light rather than signals through metal cable.

Darren Entwistle, Telus executive chairman, called it the company’s single largest fibre optic investment in its history and the largest in the country.

“We are making a generational investment and creating the first, significant urban gigabit society in Canada,” Entwistle said.

“Our gigabit-enabled network will deliver speeds of 150 megabits per second right to the doors of more than 300,000 homes and businesses as well as medical, educational and community facilities to dramatically improve the way we live, work and socialize in a digital world,” Entwistle said.

U.S. cities, such as Chattanooga, Tenn. — it boasts Internet speeds as fast as one gigabit per second, about 50 times faster than the U.S. average — have posted a 1.1-per-cent increase in gross domestic product, Entwistle said.

Touting fibre optic networks as having virtually unlimited capacity, he said they are needed to handle soaring growth in communications traffic and Internet use.

“Our fibre network will future-proof Edmonton’s growing digital demands for decades to come.”

Entwistle promised faster and more reliable Internet connections for users to watch digital entertainment and share videos and photos.

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He also touted benefits for education and business, such as increased telecommuting capacity and virtual, interactive field trips.

“In the case of the resource sector, we will have the capability to provide remote camps with (Internet Protocol) TV and high-speed Internet. These services will improve the workers’ quality of life and, importantly, help them stay connected with their loved ones.”

In health care, the technology can support the digitizing of patient information and help electronically deliver primary care such as e-prescribing medication, Entwistle said.

We are making a generational investment and creating the first, significant urban gigabit society in Canada

Telus expects a return for its investment of market share.

“I think we’re going to attract a lot of customers with this particular technology and all the eco-systems enabled along the way,” Entwistle said.

Telus says it is investing $4.2 billion in new infrastructure and facilities across Alberta through 2018, including $1 billion this year.

In Edmonton, the $1 billion will be spent over five or six years, with half of it going to civil engineering and half to the fibre-optic technology.

The project is expected to create 1,500 jobs.

EBay Inc sells 28.4% stake of Craigslist back to company, ending years-long legal battle

SAN JOSE, Calif. — E-commerce company eBay has sold its 28.4 per cent stake in Craigslist back to the online classified advertising site, ending years of legal wrangling between the two companies.

The move announced Friday comes as eBay prepares to split with its online payments system PayPal. Financial terms were not disclosed.

EBay, which is based in San Jose, California, bought a stake in Craigslist in 2004. But the two companies have tussled in the legal arena. Craigslist has long accused eBay of using confidential information to start its own classifieds site in the U.S. in 2007.

In 2010, a judge ruled that Craigslist founder Craig Newmark and CEO Jim Buckmaster violated their responsibilities to eBay with changes they implemented that diluted eBay’s share from 28.4 per cent to 24.9 per cent and made it harder for eBay to sell the stake.

EBay said with the repurchase, all litigation between eBay and Craigslist will be dismissed. It declined to comment further.

Craigslist posted an excerpt of eBay’s statement on its blog along with an excerpt of Shakespeare’s “All’s Well That Ends Well,” including the line “Love all, trust a few.”

Shares in eBay Inc. rose 37 cents to $61.06 in afternoon trading.

The Associated Press

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Top court orders wireless carriers to release information on Apple contracts

The Federal Court has ordered eight Canadian wireless carriers that sell the iPhone to produce quantitative information about their commercial relations with Apple Inc. and its local subsidiary.

These rulings arrived three days after motions were brought to an Ottawa court on Monday to advance the Competition Bureau’s probe into whether the Cupertino, Calif.-based behemoth has had an influence on wholesale and consumer pricing of the iPhone that has been in violation of the law. The carriers, which include the three incumbents and five regional operators, have 90 calendar days to respond.

The Bureau began its investigation in March of 2014 after becoming aware of potentially anti-competitive clauses that Apple Canada Inc. was employing in its commercial agreements with Canadian mobile service providers. Neither a conclusion of wrongdoing has been made nor has an application been filed with the Competition Tribunal or any other court to seek remedies for alleged anti-competitive conduct.

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Court filings state that Apple’s contractual obligations with carriers “may have or may likely have the effect of lessening or preventing competition substantially in a market.” These clauses may “increase the price Canadians have paid, are paying or will pay for handset devices and/or other wireless services.”

The data requested by the law enforcement agency are outlined in four pages in each decision. They include confidential details about consumer contracts, revenues, costs, margins, order amounts, inventory levels, and the terms these carriers must abide to sell Apple in their retail stores, among others. For comparison purposes, similar details were requested for other handset manufacturers sold to subscribers as well.

All carriers will submit these facts last updated on June 18. If a carrier can’t obtain a fact after conducting a diligent search, it must explain in writing why it doesn’t exist or never existed. The earliest date submitted will vary depending on the carrier, the nature of the request and when iPhones were sold or activated.

For some data points, BCE Inc.’s Bell Mobility, Rogers Communications Inc. and Telus Corp. will have to retrieve data from as far back as January 1, 2008. Quebecor Inc.’s Videotron Ltd., MTS Inc., Tbaytel, Bragg Communications Inc. and Saskatchewan Telecommunications have different periods of time to fulfill.

According to Reuters, Apple lost an appeal earlier this week in Taiwan, as the court upheld a decision that found the U.S. tech company’s influences on prices and its practices toward local telecom providers to be anti-competitive. Apple, which was fined T$20 million ($794,000), can still appeal.

cpellegrini@nationalpost.com

Women get more of the spotlight at E3 2015, both in game and on the show floor

LOS ANGELES — It seems the Electronic Entertainment Expo is no longer a man’s world.

During this year’s video game extravaganza, a variety of women – virtual and otherwise – have been featured more prominently than in past years of the annual trade show where game makers highlight their forthcoming creations. In presentations and on the expo floor, a sizeable number of women have appeared on stages, within games and in crowds.

Microsoft, for instance, kicked off its E3 presentation with 343 Industries head Bonnie Ross introducing a “Halo 5: Guardians” cooperative gameplay demo that featured men and women playing together as male and female members of Spartan Locke’s squad. The company later hyped “ReCore” and “Rise of the Tomb Raider,” which both feature female heroines.

“We’re about everybody playing games, and we want to represent that in the content that we put on screen,” said Phil Spencer, Microsoft’s head of Xbox. “We opened the show with Bonnie. She’s got such authenticity as someone who has been with Xbox a long time, running our biggest franchise and being a spokesperson for the platform, the industry and `Halo.'”

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Ubisoft, which came under fire at last year’s E3 for revealing that female avatars wouldn’t be an option in “Assassin’s Creed: Unity,” reversed course Monday by focusing on female “Assassin’s Creed: Syndicate” co-star Evie. The publisher also brought Angela Bassett on stage to announce she was portraying the first-ever female boss in “Tom Clancy’s Rainbow Six: Siege.”

Others introduced all-new female protagonists, including bow-wielding huntress Aloy of “Horizon Zero Dawn” and 10-year-old blind girl Rae of “Beyond Eyes.” Bethesda Softworks announced Sunday that stealth sequel “Dishonored 2″ would feature a female co-star and post-apocalyptic “Fallout 4″ would allow players to create male or female avatars of different races.

“We’ve always believed that this is not a boys’ club and should never be a boys’ club,” said Reggie Fils-Aime, CEO of Nintendo of America, who is Haitian-American. “That mentality permeates our games and our corporate environment. We believe in a full range of diversity. I mean, look at me in terms of representing a diverse point of view for our company.”

The boost in visibility for women at E3 was just as noticeable in the real world as it was in the virtual world with such developers as “Star Wars: Battlefront” senior producer Sigurlina Ingvarsdottir and “Mirror’s Edge: Catalyst” senior producer Sara Jansson on stage at Electronic Arts’ briefing to present their titles.

Christian Petersen/Getty ImagesMicrosoft Vice President and Head of 343 Industries (the developers who make Halo) Bonnie Ross speaks during the Microsoft Xbox E3 press conference at the Galen Center on June 15, 2015 in Los Angeles, California.

“It creates a different dynamic,” said Patrick Soderlund, executive vice president at EA Studios. “I’ve always tried to have a good balance of men and women on the teams I lead. I think the balance is the right one. The important part is that if you’re a man or woman, it doesn’t really matter, as long as you’re the right person for the job.”

In recent years, the industry has rallied in support of gender diversity, especially over the last year when an online campaign began targeting women and others in gaming for criticizing the lack of diversity and how women are portrayed. For game makes, diversity must start in studios before it can extend into living rooms.

“Creatively, it’s far more inspiring to have a diverse group of viewpoints to incorporate into your storytelling and experiences,” said Shannon Loftis, head of publishing at Microsoft Game Studios. “The more diverse people that we can get behind and into game development, the more diverse characters we see represented in game development.”

While the change has been remarkably noticeable at this year’s E3, there are still several games that feature provocative imagery of women and a few female models – so-called “booth babes” – who are hired to attract attention and lure attendees into E3 booths within the cavernous Los Angeles Convention Center.

“If you look at the number of industry talks at this past D.I.C.E. (Design, Innovate, Communicate, Entertain) Summit, Game Developers Conference and South by Southwest, it’s a primary topic among developers,” said Michael Gallagher, president of the Entertainment Software Association. “I think the outcome of such discussions is something like `FIFA’ now including women’s teams. We’ll see more of it.”

AP Entertainment Writer Ryan Pearson contributed to this report.

Ubisoft via APThis photo provided by Ubisoft shows the female character, Evie Stealth, left, in the video game, "Assassin's Creed: Syndicate."

Bigger packages mean more bang for buck, says new telecom study

TORONTO — A new study has found that while the cost of using a cell phone in Canada has jumped as much as eight per cent this year, Canadians are getting a better bang for their buck for higher-volume packages.

According to an analysis of telecom pricing in a six major Canadian cities during a two-month period early this year, the average cost of unlimited nationwide talk-and-text packages that include two gigabytes of monthly data usage declined by 11 per cent compared to last year. Further, the variance in rates between upstarts and the pricier incumbents, which ranges from 25 to as much as 65 per cent, is generally at its widest in these higher-volume baskets.

“We see the technology offerings changing over time and you get more for your buck at virtually every price level,” said Gerry Wall, president of Wall Communications Inc., an Ottawa-based economics research and consulting firm that was commissioned by the country’s two industry watchdogs to complete the report. “The average consumption has grown over time and so a mid-level basket of cell service is better today because you’re getting more even though we’re putting it in the same category.”

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The study, which assessed prices in Halifax, Montreal, Toronto, Winnipeg, Regina and Vancouver, found users in Manitoba and Saskatchewan enjoy the lowest mobile prices, especially for higher-volume usage. The spread between what the Big Three telcos and Videotron charge in Montreal is quite narrow, as Quebecor Inc. has employed an aggressive approach to sell subscribers a suite of services rather than just one.

“People say Quebec is a different market for a lot of reasons. But the strategy Videotron has used is to try to bundle,” said Wall. “On a stand-alone basis, just for the cell service, they’re not cutting their legs off.”

The study considered 500 separate Canadian stand-alone and bundled service packages, a number that continues to soar as telcos adjust their mobile offerings to address the explosion of consumer demand.

Despite the average year-over-over price increase, the cost for domestic wireless plans — ranging from talk only, talk-and-text, and talk-and-text and data — is still lower today than it was in 2008, the study concludes. But Canada’s cell phone prices continue to rank “on the high side” compared to other countries.

On a stand-alone basis, just for the cell service, they’re not cutting their legs off

For the past several years, the federal government has tweaked rules governing the sector and introduced incentives for a crop of new players to try to inject more competition and choice into the Canadian market. Still, Rogers Communications Inc., BCE Inc. and Telus Corp. serve about 90 per cent of mobile subscribers.

The report also found that the price of broadband Internet services fell between an average of one and seven per cent, which Wall referred to as “probably the best story for Canadian consumers.”

CIO security roundup: WordPress plugin flaw, LastPass hacked and more OpenSLL patches

Password Vault Hacked

Popular online password manager LastPass has revealed that it has been hacked, and LastPass account email addresses, password reminders, server per user salts, and authentication hashes were compromised. The company said in a blog post that it is confident that users’ secure password vaults were not accessed, but it is requiring all users to change their master passwords.

It is also requiring verification for new IP addresses and devices, and recommends that users enable multifactor authentication. However, it’s possible that the hackers will launch phishing attacks using the stolen email addresses, so customers are warned not to respond to any emails supposedly from LastPass asking for information.


Stolen Certificates Used to Sign Malware

Security certificates used to verify that software is from a legitimate publisher have been stolen and are being used to sign malware, notably the recently discovered Duqu 2.0. One of the certificates came from Foxconn, the Chinese hardware manufacturer that builds products from Apple, Dell, and many others.

Kaspersky researchers said, “it’s interesting that the Duqu attackers are also careful enough not to use same digital certificate twice. This is something we have seen with Duqu from both 2011 and 2015. If that’s true, then it means that the attackers might have enough alternative stolen digital certificates from other manufacturers that are ready to be used during the next targeted attack. This would be extremely alarming because it effectively undermines trust in digital certificates.”

WordPress Plugin Flaw Fixed

A cross-site scripting flaw in the popular Yoast SEO plugin for WordPress, incorrectly reported as fixed two years ago, has finally been repaired. Versions earlier than 2.2 (released on June 10) are vulnerable. Users are advised to ensure they’re running the latest version of the plugin.

Retrospect Backup Password Issue

The Retrospect Backup client prior to 10.0.2 for Windows and 12.0.2 for the Mac contains an error in its password hash generating algorithm that could allow hackers to easily gain access to the user’s files. Users of password authentication are vulnerable, while those using PKI (public key) authentication are unaffected. Retrospect has released patches for all versions, and also recommends that users switch to PKI authentication.

McAfee ePolicy Orchestrator Improperly Validates Certificates

McAfee’s ePolicy Orchestrator (ePO) versions 4.6.8 and earlier and 5.1.1 and earlier do not properly validate SSL/TLS encryption certificates. This could allow attackers to compromise communication links between the application and its servers. McAfee has released versions 4.6.9 and 5.1.2 to address this and other issues.

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The CERT advisory says that users are encouraged to upgrade to the latest version available and should refer to the vendor’s Knowledge Base KB84628 article for additional steps that are required to enforce certificate validation.

OpenSSL Patches Released

ZDNet reports that OpenSSL, the open source project most famously responsible for the Heartbleed vulnerability, has released patches to head off possible denial of service attacks, as well as preventing man-in-the-middle attacks. Users are advised to update as soon as possible.

Adobe Photoshop and Bridge Flaws Corrected

Adobe has released patches for Photoshop CC and Bridge CC for both Windows and Macintosh to correct multiple issues that could allow an attacker to take control of affected systems. The company recommends that users update the products to the latest versions through each program’s built-in update mechanism.

Twitter Inc’s Project Lightning will revamp newsfeed and allow users to follow live events

Twitter Inc will start curating tweets on live events, the microblogging service said, as it plans major changes to make its real-time news feed more user friendly.

Dubbed Project Lightning, the changes will let users follow events instead of just people, and instantly upload photos and videos that can be shared across websites, social news and entertainment website Buzzfeed reported on Thursday.

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A team of editors will curate the most visually appealing and relevant tweets about say, a red-carpet event or shooting, and present them in one place, so that users need not be flooded with every single tweet as it is posted, Buzzfeed said.

Twitter’s mobile app will show both pre-scheduled events and breaking news events, Buzzfeed said.

Twitter spokeswoman Rachel Millner confirmed the report but declined to comment further.

Twitter has struggled with user growth. About one billion people have visited the website, but only 302 million are users.

From Mass Effect to Tacoma, E3 2015 will go down as a banner year for sci-fi fans

With more than 100 games representing just about every conceivable genre trotted out and shown during press conferences at E3 2015 earlier this week, industry trends and themes were ripe for the plucking.

The show could be dubbed the year of long-awaited sequels. Pressers were packed with exciting – if, in some cases, admittedly nebulous – announcements, unveilings, and new footage for games like Shenmue III, Mirror’s Edge: Catalyst, Tom Clancy’s Ghost Recon: Wildlands, Uncharted 4: A Thief’s End, and Gears 4.

One also wouldn’t be wrong to remember this year’s show as the E3 in which the rest of the industry tried to grab a bit of the spotlight traditionally hogged by Microsoft, Sony, and Nintendo, thanks to noteworthy live-streamed events from companies like Bethesda Softworks and Square Enix, and an epically long talk show-style conference dedicated to PC games on Tuesday night.

Pessimists, meanwhile, might see E3 2015 a show of insubstantial industry pomp. The long anticipated Final Fantasy VII remake was announced, but could (and likely is, given all the other projects on its developer’s plate) half a decade away from launch. The next Mass Effect was given a name – Mass Effect: Andromeda – and a distant release date, but not much else. And technologies like Sony’s Project Morpheus and Microsoft’s HoloLens, while undeniably exciting, still seem a bit intangible, especially to the vast majority of enthusiasts not attending the show in person.

Personally, I’m seeing this E3 as a glass half full. And I think it has everything to do with the fact that I’m a giant sci-fi nerd. Because for me – and I think for a lot of others – E3 2015 will be remembered as a banner year for speculative fiction in games.

I’m not even talking about the monster sequels of the genre. I’m as excited as anyone else about exploring a (presumably) new galaxy in the next Mass Effect, crawling across a futuristic earth in Fallout 4, being a BFG-toting space marine in the new Doom, seeing what Master Chief is up to in Halo 5: Guardians, and fighting snow stormtroopers in Star Wars: Battlefront.

But there’s so much more for a sci-fi fan to look forward to than just these mainstream entities.

Like Star Citizen. This ridiculously ambitious crowd-funded space simulation game was given a few minutes at the PC game event, and it continues to impress. It’s jammed with almost unbelievably detailed (and in some cases unbelievably expensive) fighters, cruisers, and even luxury yachts. The narrative-focused action – including first-person combat and some amazing looking performance capture – is just the gravy. You can buy ships and fly around space right now, but the meat of the game hasn’t a release date yet.

Another E3 highlight running along vaguely similar lines is No Man’s Sky, though this one has more colourful, stylized graphics and looks like it may be a lot more accessible to casual players. It provides an effectively infinite galaxy filled with countless procedurally generated star systems waiting to be discovered and explored. Hello Games’ Sean Murray picked one at random during his live demonstration, and it turned out to be a stunning world filled with exotic flora and fauna that neither he nor anyone on his team had ever seen before. Also: Epic space battles. It’s coming to PlayStation 4 and PC…at some point. Then there’s EVE: Valkyrie, a visually stunning space combat game designed explicitly for virtual reality. CCP Games did a great job at the PC gaming event describing the benefits of seeing the game through an Oculus Rift or Project Morpheus headset. Basically, you’ll feel as though you’re sitting at the controls in a cockpit, able to look left and right and up and down to see what’s happening in space through the ship’s windows. This seems like the perfect fit for VR, and much more palatable than using a headset to look around and aim while playing, say, a first-person shooter.

But not all of the sci-fi adventures shown at E3 were about zooming around and exploring systems beyond ours. The gritty, realistic-looking Ion, made by DayZ creator Dean Hall, has been described as an “emergent narrative massively multiplayer” game that documents the manned exploration of our system. Based on footage shown during the PC gaming event, it looks like it could have been called The Martian: The Video game. Gorgeous, lonely landscapes on planets like Mars and realistic looking habitats and ships make this one seem more science-future than science-fiction. It’s coming to Xbox One and PC.

And how about Tacoma, the latest from the Fullbright Company? This is a fascinating looking exploration game set mere decades into our own future on the Lunar Transfer Station Tacoma, hundreds of thousands of kilometers from Earth. Details are scarce, but given the studio’s previous masterpiece, Gone Home, I’m expecting a narrative tour de force from a sci-fi angle. It’s coming to Xbox One and PC.

If you’re looking for something a little more Star Wars than Gravity, a new game from Mega Man mastermind Keiji Inafune and the folks who made the Metroid Prime trilogy called Recore might do the trick. The trailer shown at Microsoft’s conference included a desert planet, a female warrior, and a lovable robot dog whose life essence seems tied to a glowing blue ball. It’s an Xbox One exclusive set to arrive as early as next spring.

Sony showed a sci-fi themed exclusive of its own called Horizon: Zero Dawn, also slated for 2016. Made by Guerrilla Games (Killzone), this one is set on a far future Earth, the human cities of which have long since fallen to ruin. It features a fur-clad female protagonist who seems to have a tribal verging on religious connection to her world and ecosystem – though the animals she confronted in the demo seemed wholly synthetic.

If simulation games are more your style, keep an eye out for Ubisoft’s Anno 2205, a city building and strategy game that will let you build futuristic cities not only on Earth, but the moon as well. It will arrive in November on PC.

Granted, only some of these sci-fi epics are arriving this year. Some will come next year, and others maybe not until 2017 or beyond.

I’m not overly concerned about the when of it, though.

E3 2015 has proven that there are enough drool-worthy science-fiction odysseys in the pipeline that any gamer with a soft spot for space and speculative storytelling is going to be well served for the foreseeable future.

On U2’s global tour, Montreal company Saco Technologies takes the stage by lighting it up

MONTREAL – When U2 took the stage at Montreal’s Bell Centre this week, Bono was illuminated on an elevated catwalk, pacing through scrolling dreamlike video images of his childhood neighbourhood in Dublin as he sang Cedarwood Road.

Behind the visual wizardry of the iNNOCENCE + eXPERIENCE tour’s two massive see-through LED video screens is Montreal-based Saco Technologies Inc., a company that changed forever when it first aligned itself with the iconic rock group nearly 20 years ago.

Before 1997, Saco had never worked in entertainment and was making control panels for nuclear and hydro power plants.

“I never thought of going in this direction,” Saco CEO Fred Jalbout said in an interview.

“My head was more focused on industrial-type projects because at the company we loved the quality of our projects and the quality of our clientele.”

Saco was, however, in the final stage of developing the world’s first LED screen, using coloured pixels to create images.

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Before this, bands would use video projectors or thick heavy screens that resembled giant television sets.

A consultant for U2 heard about Saco’s prototype and came to Montreal to see the company ahead of the group’s 1997 PopMart Tour.

“U2 were looking for something new that is easy to carry with their show and at the same time they needed a huge screen to go on their stage,” said Jalbout.

The band’s management came to Montreal that same weekend and the next thing he knew, Jalbout was flying to Dublin to meet U2.

Graham Hughes for National PostSaco Executive Vice President and CMO Jonathan Labbee poses for a photograph behind a V-Thru at the Saco assembly plant in Montreal, Monday, June 15, 2015.

He says he presented his technology to Bono and the band in a warehouse where they practice.

“Of course I was nervous,” said Jalbout.

He says the prototype was about one square meter, but the band wanted something bigger – several hundred times bigger. It also had to be compact enough to fit in two touring trucks.

“It’s something that had never been done before so it was a risk that we all took together,” said Jalbout.

“Bono has a very special way of communicating with people. He loves to take risks and encourage new technology.”

The pixels were mounted onto 4,500 separate aluminum tubes, which were then broken down into 187 foldable panels.

It also put Saco in the Guinness Book of World Records for the Largest Touring Screen in the World.

Graham Hughes for National PostSaco Senior Project Manager James Aitken inspects V-Sticks at the Saco assembly plant in Montreal, Monday, June 15, 2015.

“These shows are getting so big and are bringing in so many people that you have to think of us as a visual megaphone,” said Saco Executive-Vice President Jonathan Labbee.

After the tour, the company began focusing on custom lighting and screens for buildings, including the largest LED screen in the world at New York’s NASDAQ Market, and the world’s largest chandelier in Doha, Qatar.

“When we started working with U2 doing their project, the whole thing changed,” said Jalbout.

Saco has also worked with acts such as Madonna and Paul McCartney, a far cry from a time when their clients included Hydro Quebec and Ontario Hydro.

“The thing with Saco is that they are extremely creative and what’s very rare is that their word means everything to them. They’re the most honourable people we’ve ever dealt with,” said Bob Brigham, Co-President at PRG Nocturne, an event production company that first worked with Saco during Paul McCartney’s 2005 US tour.

“My guess is we’ve spent with them $50 million-plus, and it’s all been on a handshake.”

As U2 continues on their 20-city tour after four shows in Montreal, Jalbout says the company hopes it brings the same attitude to its clients that the band brings its audiences.

“They always like to show their fans something different and something new,” said Jalbout.

Information overload stymies Canada’s banks in mobile payments battleground: ‘Things are changing so quickly’

As banks aim to stake their ground in the burgeoning mobile payments market, a U.K.-based software company says its efforts in Canada are being stymied by the hazards of innovation.

Two of the country’s Big Six banks have come close to inking deals to buy software built by Proxama Plc that can plug the credit card issuers into multiple mobile payment offerings, but cell phone applications have forced the banks to rethink their game plans and set back negotiations.

“Things are changing so quickly, and that’s what’s delaying us,” says Ricky Ranjan, a vice-president of sales in North America for Proxama. “Every time we sit down, a new payment initiative is popping up. You just have to go back to the drawing board and say, ‘okay, how do we support this?'”

The onslaught of mobile payment offerings from the likes of Apple Inc., Samsung Electronics Co. and Google Inc.’s Android has rendered the makers of many Canadian digital apps and card issuers to be cautious and a bit stagnant in their own efforts at home. There’s a lot to digest both during and after every product announcement, as these companies try to look beyond any initial hype, identify and then stay true to their business goals, and gauge whether these latest systems will gain any or more traction with Canadians who have been slow to swap their physical wallets for the banks’ virtual ones so far.

“No one knows how it’s going to play out,” Ranjan adds. “Any time new information comes in, it delays the process because banks want to be sure they assess the entire ecosystem before deploying a solution.”

Ranjan points out that Royal Bank of Canada is an exception. The small internal team tasked with building the 146-year-old company’s mobile wallet is run like a nimble startup that’s eager to experiment and create new things. It was the first and only Canadian financial institution that unveiled a new version of its wallet app on the new Android M operating platform at Google’s developer conference this year.

“If you talk to any of the banks, except for RBC, they want to wait and watch how technologies are coming across,” says Ranjan, who declined to name the two companies that are in talks to use Proxama’s platform. And there are many moving parts in this crowded space. “Banks want to do something, but they don’t want to rush. They want to do their due diligence and come out with a strategy that can support that.”

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At stake for the banks is the long-term loyalty of the latest crop of young clients who have strong ties to their cell phones and are quick to try new gadgets and virtual currencies like Bitcoin. “We were in a position to establish early leadership in an area that would be of vital importance to the current generation and fundamental to the next,” says Linda Mantia, executive vice-president of digital, payments and cards at RBC. “We continually look for new and innovative ways to bring payments to our clients.”

While many of the big Canadian banks have been slow to deploy major updates to their offerings, they are busy behind the scenes testing the new apps, asking questions and evaluating any compliance implications. But it’s easy to get sidetracked by ideas about innovation and be left with nothing to show for it. That’s because there is no real accepted road map, which can surely make a software engineer’s mind wander.

I sometimes wish we can move the team to a deserted island to take the distractions out of the picture

Urging his 25-person team to ignore the noise and complete their daily tasks is something Alec Morley does as the chief executive of Ugo Mobile Solutions L.P., the maker of the Ugo Wallet that is financially backed by President’s Choice Financial and TD Bank Group. The app, which he says has been downloaded 40,000 times, lets users pay for things and amass or redeem loyalty points using their smartphone.

“The challenge with leading [a startup] is keeping the team focused on building real stuff,” says Morley. “I sometimes wish we can move the team to a deserted island to take the distractions out of the picture.”

Ugo’s philosophy is it can’t afford to build a super-deluxe version, but there’s room for iterations. “You’ve got to get out there. You’ve got to get something out there, even if it’s not perfect,” he adds. “If we fail, we want to fail fast, take the learning, reapply it and push it back out to the market. You learn from it.”

Easy for an upstart with little brand equity to say; tougher for a bank that has built its reputation on trust to do. The bank-led solutions may not be the most user friendly but they work. Still, the risk-averse players will need to eventually make decisions and push out product updates if they want to compete, says Dragan Nerandzic, chief technology officer at Ericsson Canada Inc.

“We have to be very careful that we don’t spend too much time talking, regulating, debating [about mobile payments] and while we do that, someone else comes in and does it,” Nerandzic said during a panel discussion at a Toronto telecom conference in early June. “It will be too late for us.”

Financial Post
cpellegrini@nationalpost.com

What FitBit Inc needs to do to not become another BlackBerry

FitBit Inc.’s fitness trackers face threats on all sides – from Apple Inc. competition to patent-infringement lawsuits.

That sounds a lot like the travails of another device maker – BlackBerry Ltd. – almost a decade ago. Like FitBit, BlackBerry was the established market leader with a ubiquitous gadget and a lower-priced alternative to Apple’s shiny new iPhone. It offers FitBit a lesson: use the capital from an upcoming initial public offering to fund research into innovative technology.

The lesson for anyone in a similar position: there really isn’t a margin for error

“BlackBerry’s failure was the fact that they weren’t able to meet the expectations that consumers were looking for and keep up with the times,” said Angelo Zino, a New York-based equity analyst at S&P Capital IQ. “FitBit has to find a way to defend the position they’ve built here.”

For now, investors seem willing to bet FitBit will avoid BlackBerry’s fate. As it wound up two weeks of meetings with fund managers, the San Francisco company on Tuesday boosted the IPO’s size and price range, a sign of strong demand.
FitBit held 85 percent of the U.S. connected activity- tracker market in the first quarter of 2015, it says, citing industry-research firm NPD Group. Revenue more than tripled in the quarter through March, from a year earlier, and earnings are rising fast.

Obama’s FitBit

Though it may not have achieved the status of a “CrackBerry” as the BlackBerry was dubbed for its addictive nature, the FitBit is garnering its own media attention: President Barack Obama was spotted wearing one in March.

This success has attracted an unwanted rival in Apple. In April, the consumer-electronics giant began selling the Apple Watch, with functions to track health, heart rate and athletic activities.

Apple is no stranger to taking on early movers in the device world. In early 2007, when the iPhone was introduced, BlackBerry was a US$30 billion market-cap company, with revenue increasing almost 50 percent annually.

The Canadian company first seemed protected with a lower price and security features that made it a favourite of corporate customers. The lowest-end iPhone cost US$499 in 2007, while BlackBerry’s Pearl was US$199. Similarly, FitBit’s highest-end product is still $100 less expensive than Apple’s lowest-priced watch.

Thin Margin

For BlackBerry, that didn’t matter as consumers largely preferred the style and functionality of the iPhone. In 2014, the company held just 0.5 percent of the global smartphone market, according to IDC data.

Some of FitBit’s $400 million in IPO proceeds will be used for research and development, which is critical for anyone taking on Apple because the pace of innovation is incredibly fast, said Jacquie McNish, co-author of “Losing the Signal,” a book about the rise and fall of BlackBerry.

“The lesson for anyone in a similar position: there really isn’t a margin for error,” said McNish, whose book was published in May.

In an e-mailed statement, BlackBerry said it is “well into a turnaround that is taking it to new markets with innovative products and services.”

A representative from FitBit declined to comment.

Apple’s Model

One thing FitBit could do is follow Apple’s model of letting third parties create apps for its devices, according to Ed Maguire, a software analyst at CLSA.

“If FitBit can manage to become a platform and be able to support innovations from third parties, I think that would be a really viable road to creating more sustainable value,” he said.

Another challenge that set BlackBerry behind was a four- year legal battle with NTP Inc. over patents. By the time the lawsuit was settled for US$612.5 million in March 2006 — averting a court-ordered halt to service — the dispute had deterred customers and allowed competitors to gain market share.

FitBit has been hit with two lawsuits of its own from rival Jawbone Inc. over the last month. Jawbone says FitBit’s activity-tracking devices use technology protected by three patents owned by BodyMedia Inc., which Jawbone acquired in 2013. In a separate lawsuit, Jawbone alleged FitBit recruited its employees and plundered its trade secrets.

A representative from Jawbone didn’t respond to a request for comment.

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The worst-case scenario would be an injunction that prohibits FitBit from importing certain parts to make their devices, according to Maulin Shah, managing attorney at patent- research firm Envision IP LLC. FitBit, with 77 issued U.S. patents and 132 pending applications, may come out with a countersuit against Jawbone, he said.

FitBit’s patents, which are for technology it developed itself rather than through acquisitions as Jawbone did, show the company is very focused on innovation, according to Shah.

“FitBit is consumer-facing, and as long as they continue to innovate that would be one way to avoid what happened to BlackBerry,” he said.

Bloomberg.com

Microsoft Corp chief Satya Nadella’s big management shakeup ousts Canadian Stephen Elop

Microsoft Corp. Chief Executive Officer Satya Nadella made his biggest overhaul since taking over early last year, cutting executives in underperforming operations or marginalized roles and focusing on areas he views as critical.

Senior executives Stephen Elop, Kirill Tatarinov and Eric Rudder are leaving the software maker, the Redmond, Washington-based company said in a statement Wednesday.

Executive Vice President Terry Myerson will lead a newly formed Windows and Devices Group, while Executive Vice President Scott Guthrie will continue to lead the Cloud and Enterprise group, the company said. Qi Lu will remain in charge of the applications and services group, which includes Office apps and Bing search. The revamped leadership team reflects a focus on three key areas: personal computing, cloud platforms and productivity and business processes.

“This change will enable us to deliver better products and services that our customers love at a more rapid pace,” Nadella said in the statement.
Microsoft cautioned in April that it might have to take a writedown in its Nokia handset business. Elop, a Canadian and executive vice president of Microsoft’s devices group, had been the CEO of Nokia Oyj and engineered the US$7.33 billion sale last year of the handset unit to Microsoft. The acquisition returned him to a company where he earlier had been a senior executive.

The departure of Elop, whose Devices group will be rolled into Microsoft’s Windows unit, signals a shift of emphasis away from hardware and back to Microsoft’s core business.

Profit last quarter exceeded analysts’ estimates as Microsoft boosted cloud software sales. In the phone-hardware unit, the former Nokia business, the cost of goods sold exceeded revenue, weighing on results even before marketing and development expenditures were taken into account.

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‘Hard Decisions’

“Nadella looked in the mirror and realized hard decisions needed to happen,” said Daniel Ives, an analyst at FBR Capital Markets & Co. “These changes needed to happen sooner rather than later as Nadella and Redmond head into a crucial, make-or- break fiscal 2016.”

Rudder, executive vice president for advanced strategy, is a 27-year veteran of the company who once ran Microsoft Research. His role has been reduced of late. Tatarinov, executive vice president for business solutions, was the only senior executive whose products — accounting and customer software — hadn’t been integrated in previous reorganizations.

Also, Chief Insights Officer Mark Penn will resign in September to form a private-equity fund, Nadella said in a memo to employees. Microsoft said his departure is unrelated to the management restructuring. Penn had previously overseen marketing and strategy but Nadella gave those roles to other executives.

The restructuring will leave Microsoft’s senior leadership team with 12 executives, including Nadella.

The company’s shares were little changed at US$45.70 at 11:44 a.m. in New York.

Bloomberg.com, with files from Reuters

PC Games E3 2015 press conference: We hope for Half-Life 3, will probably get a bunch of MOBAs

 

E3 2015’s final press conference is the catch-all PC Games event.

Blizzard will be in attendance. So will Valve software. And so will numerous other developers and publishers.

What will be shown? We can always hope that Valve’s long awaited Half-Life 3 will make an appearance at the show, but it’s likely that the focus will be on the free-to-play MOBAs DOTA 2, League of Legends and Heroes of the Storm.

“With more powerful and affordable hardware than ever before, thousands of games available through Steam, Origin and other platforms, and millions of viewers regularly watching esports online,” a release about the show says. “Now, for the first time, the PC platform will have its own event during E3, where the community will be able to celebrate this era with some of the biggest names in PC gaming and see the innovations that lie ahead.”

The event will be hosted by Sean ‘Day[9]’ Plott.

You will be able to see the show live at 8 p.m. ET 9 p.m. ET above. Follow along with our live chat below.

 

 

 

 

Fallout Shelter review: Bethesda’s survival sim is fun, but doesn’t escape free-to-play mechanics as much as they claim

Bethesda Softworks’ surprise announcement (and instant release) of Fallout Shelter during its E3 2015 press conference capably serves its intended purpose of promoting this fall’s hugely anticipated Fallout 4.

And it’s also kind of fun.

Available right now on iOS (and eventually on Android), it makes the player the manager of his or her own Vault, one of the franchise’s famed nuclear holocaust bunkers. After choosing its three-digit name you’ll set about filling it with inhabitants wandering in from the newly irradiated world.

Bethesda Softworks

As with many simulation games, play is essentially a big balancing act.

All rooms need power, so manning and upgrading the power station is a top priority. But in order to be happy and work at peak efficiency your little Vault dwellers need to drink (which also helps fight off radiation poisoning) and keep well fed, so its important to make sure some of your people are working in the water processing plant and at the diner.

And on top of all that, you’ll do well to ensure you place dwellers with specific skills – like strength, perception, intelligence, and charisma (this last is important for coupling and making babies) – in appropriate rooms where they can be properly exploited, reducing the waiting time necessary for the production of essential resources.

And so the game goes – until there’s a fire, or a radroach infestation, or a wasteland marauder invasion, which will force everyone in a given area to abandon their current tasks and work the emergency until they die or it gets fixed.

As your bunker’s population grows (time passes even when the app is closed) you can gradually expand, building more elevators and new types of rooms – a radio station to attract new dwellers from the wastes, a nuclear reactor for improved energy production – deep down into the earth.

Bethesda Softworks

Admittedly, it’s not the most original game around. Bethesda flat out said it was inspired by a free browser game called Progress Quest.

And it suffers from a variety of niggling issues that range from dwellers who don’t always do what they’re supposed to (my best armed people wouldn’t follow and keep attacking invaders as they roamed from room to room) to sucking on my phone’s battery like it was a bottle of Nuka Cola. Seriously. My iPhone 6 Plus went from fully charged to nearly completely drained over the course of about 90 minutes as I left the app open on my desk, occasionally interacting with it while I worked. It was almost stove hot by the end.

But it also has a wonderful charm, thanks in large part to its pretty presentation – the rooms are surprisingly deep, detailed, and bursting with activity – and plenty of recognizable Fallout elements, from the inclusion of bloatflies and mole rats encountered by your dwellers exploring outside the Vault to the retro-futuristic design of the living quarters and the dwellers themselves. It may not play like any Fallout game to come before, it definitely has Fallout in its DNA.

And there’s no question that it’s perfectly designed for a mobile play, letting you accomplish plenty – harvesting produced goods, naming babies, reassigning dwellers – even just in the 20 or 30 seconds it takes to ride the elevator downstairs for lunch.

Bethesda Softworks

In the end, though, the thing most likely to determine whether you stick with it is whether you cue to its free-to-play nature.

Bethesda explicitly said that it set out to develop a game they’d like to play, one that doesn’t push players to spend even though it’s free to download. But I wasn’t more than an hour or two into the simulation before I found myself enviously eying up the in-app purchases.

Here’s how they work.

As you play you’ll gradually earn bottle caps (Fallout’s standard currency) that can be spent on rooms and upgrades, find useful items like guns and outfits in the wasteland, and grow your population with babies and wasteland refugees. However, you can speed all of this up with reward-bearing cards found in lunchboxes. These random cards may bestow you with, say, a set of power armour, or a high level dweller who can quickly and easily repel invaders. They’re very useful.

Bethesda Softworks

 

Thing is, lunchboxes are only occasionally awarded for completing in-game tasks – like, say, making three dwellers pregnant, or successfully rushing the production of power or water 10 times. You’ll get a few lunchboxes early on containing valuable cards, but it isn’t long before the lunchbox rewards pretty much disappear, replaced with much less satisfying bottle cap bounties. The only surefire way to get a lunchbox once your population hits around 20 is to buy one for $1.19 (or in a slightly discounted bundle) in the game shop.

It’s easy to ignore the temptation at first, but after suffering a population-reducing radroach attack or two the lure becomes much stronger. Bethesda says you can complete the game without making any purchases, but I imagine a very long and frequently frustrating journey for anyone who tries.

As for me, I’ve purchased one lunchbox so far – a first for me in a game like this; I hate the idea of paying to win – and was satisfied with what I found inside: A level 40 dweller armed with a rifle and armour. Rare cards are, happily, guaranteed when you buy lunchboxes.

But whether I keep playing will depend largely on if I feel a perpetual urgent need to buy more lunchboxes.

Bethesda Softworks

Regardless of whether I stick with Fallout Shelter to the end, filling a bunker a couple of dozen stories deep with 100 bustling dwellers, I’ve definitely had some fun.

And there’s no denying it’s boosted my already strong sense of anticipation for Fallout 4. So as far as Bethesda is concerned it’s pretty much mission accomplished.

Twitter Inc’s departing CEO Dick Costolo says he won’t get in Jack Dorsey’s way

Twitter Inc.’s departing chief executive officer, Dick Costolo, says that while he’s confident in the current direction of the company, he also is willing to let the next CEO make the changes the person wants to make.

“Everyone on the board recognizes that the CEO needs to have the leeway to do what they need to do,” Costolo said at the Bloomberg Technology Conference in San Francisco on Tuesday. “We like the strategy that’s in place and we like the team that’s in place and until further notice will continue on that path.”

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Twitter has to recruit a leader who is willing to report to a board that has three former chief executives on it — Costolo and co-founders Jack Dorsey and Ev Williams. It’s an unusual setup, but something that Costolo says won’t get in the way of whoever gets the job.

“I don’t have any ego about, ‘You have to do this this way,’” he said. “If there’s one thing I’m aware of and self- aware about, it’s that there are so many ways to be successful.”

Costolo praised the leadership of two people on his team who may be internal candidates for the job – Adam Bain, president for global revenue, and Chief Financial Officer Anthony Noto. Costolo also said that Dorsey, the interim CEO who also leads Square Inc., has a “clarity” about Twitter’s product direction that will help the company stay on course.

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