PayPal Sues Google Over Google Wallet

PayPal has filed a lawsuit accusing Google of stealing trade secrets because former PayPal executive, Osama Bedier now works at Google.

Stephanie Tilenius, another ex-PayPal executive now at Google, violated contractual obligations by recruiting Bedier, PayPal said.

Bedier “is now leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf,” according to the complaint. “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”

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All Spectrum below 5 GHz for Mobile Broadband?

"I think mobile broadband will occupy all of the spectrum below 5 GHz in five years," said Telstra general manager Brian Miller, as Australian authorities prepare for mobile spectrum auctions expected to happen in 2012. Whether that was just a bit of exuberance or a genuine belief is hard to say, but it is nothing if not bold.

The Australian Communications and Media Authority plans to auction 700 MHz frequencies as well as 2.5 GHz licenses for mobile use, and is expected to underpin new Long Term Evolution fourth generation mobile networks.

Australian super-auction could take place by end of 2012

Vast Majority of Small Businesses Unaware of Cloud Computing?

Some 71 percent of small businesses surveyed by Newtek Business Services said they have never heard of cloud computing. The poll of approximately 1,800 respondents found 26 percent of those who had heard of cloud computing could describe what it was. See http://www.eweekeurope.co.uk/news/most-smbs-ignorant-of-cloud-computing-30355.

On the other hand, during the first half of 2010, 14 percent of small and medium businesses reported using cloud computing services and another 10 percent reported plans to deploy cloud-based services, according to a study by Spiceworks.

Twice as many SMB information technology professionals (28 percent) are using cloud solutions today compared to the second half of 2010 (14 percent).

The difference in survey findings might be that the Newtek survey is of non-technical business owners, while the Spiceworks survey is of IT professionals. One might assume the Newtek respondents do not have in-house technology staffs, while the Spiceworks respondents in fact work in that capacity.

Growth plans for 2011 continue to be aggressive, as another 14 percent of IT professionals plan to start using the cloud by midyear. In all, 42 percent of SMB IT pros plan to be using cloud services by mid-2011.

Among SMB IT pros using the cloud today, 39 percent use the cloud for web hosting, making it the single largest varietal in the cloud family. Another 14 percent plan to start using the cloud for web hosting within the first half of 2011.

As for other cloud services, email hosting (32 percent), data backup and recovery services (29 percent) and application hosting (25 percent) were top applications.

The 1,500 Spiceworks respondents work at firms with fewer than 1,000 employees. But the study suggests smaller SMBs are more aggressive when it comes to cloud services adoption than their larger SMB counterparts. See http://www.crn.com/news/cloud/226700068/smbs-gobbling-up-cloud-computing-in-2010.htm.

Some 38 percent of SMBs with fewer than 20 employees use or plan to use cloud solutions in the next six months, the Spiceworks survey found. This adoption rate is markedly higher than the 17 percent of organizations with between 20 and 99 and the 22 percent of organizations with more than 100 employees that use or plan to use cloud services over the same time period.

Technology companies also are adopting cloud services at a faster pace. Some 34 percent of SMBs in the tech sector use or are planning to use cloud services. Companies in the services sector (finance, HR, consulting) comprise next fastest growing vertical segment with 22 percent using or planning to deploy cloud solutions.

Vast Majority of Small Businesses Unaware of Cloud Computing

So Where are the Net Neutrality Rules?

It has been about five months since the Federal Communications Commission decided to impose network neutrality rules on fixed line access providers. But the actual rules haven't been published in the Federal Register, so haven't taken effect.

That is an unusually long delay, and some think it will take another five months before the rules actually are published. The delay, say FCC officials, has to do with the sheer complexity of implementing the order. In other words, some might say, it isn't easy to quantify exactly what has to be done, what cannot be done, and how to collect information to ascertain what is happening.

Then, once the actual orders are published, the lawsuits will start to be filed, leading to possibly years more delay. And in the meantime, it is entirely possible that the market participants might themselves come to some understanding that either side steps the rules or makes them unnecessary.

FCC slow to publish neutrality rules

PayPal Payouts with Facebook Credits

Developers signing up for "Facebook Credits" as a currency will have the option to use PayPal as a payout option, Facebook says. When signing up for Facebook Credits for the first time, developers can add an existing PayPal account as well

Adding PayPal offers more flexibility and choice for payouts and makes it even easier to monetize apps with Facebook Credits. It also raises the issue of what "currency" or "money" is, or could be. In the same way that airline miles now are a form of currency, so "credits" or "tokens" or other mechanisms could emerge as a supplemental form of "money," both in the mobile and online spaces.

PayPal Payouts with Facebook Credits

Google Passes Yahoo in Online Display Advertising

Google has passed Yahoo as the biggest seller of online display ads in the United States, according to IDC.

Google's share of the U.S. display ad market grew to 14.7 percent in the first quarter of 2011, compared to Yahoo's 12.3 percent, IDC says. Google's share is growing fast (up from 13.3 percent last year), while Yahoo's is declining almost as fast (down from 13.6 percent last year).

Google had $396 million in display ad revenue in the quarter, compared to Yahoo's $330 million. And Yahoo's second-place position is under threat: Facebook is well within striking distance, with $238 million.

U.S. online revenue overall is up around $7 billion a quarter, according to the Interactive Advertising Bureau.

Google Passes Yahoo in Online Display Advertising

Google Wallet: Smaller, Impulse Buys are Likely Sweet Spot

Google Wallet has launched with a rather impressive set of partners spanning the key retail, finance and mobile ecosystems, each of which is necessary.

The leveraging of the MasterCard "PayPass" network is important, as it brings potential access to more than 124,000 merchants in United States.

But the partnerships with Verifone, Hypercom and perhaps others will put Google Wallet in next-generation point of sale terminals over time. But it is the immediate installed base of terminals that is most important right now.

Starbucks signed up so many users for its mobile payment system in part because it was able to use the entire installed base of POS terminals, did not have to create or recreate a payment system or deal too much with the number of smart phones able to use the network.

One would not be surprised if the "killer" transactions turn out to be relatively small purchases, many of an impulse nature. Walgreens and Subway provide examples. People will probably spend a relatively small amount per transaction, but might conduct transactions relatively frequently.

Google Wallet: Handicapping why it will (and won't) work | ZDNet

Google Wallet Highlights a Business Model

Google's new mobile wallet illustrates the expected potential of local and mobile advertising, promotion, loyalty offers and "offers" as a full-blown revenue model in the mobile payments space, having nothing to do directly with the revenue earned by card issuers from the actual payment transactions.

Google says its service will start out with "daily deals" but will expand into things like check-in offers. Though much attention remains focused on new "payments" platforms, the local advertising, mobile advertising and promotion businesses are seen by Google as the opportunities it wants to focus upon, logically enough, given its advertising revenue model.

Hello Google Wallet

Google Launches Mobile Wallet

Google has launched its "SingleTap" mobile wallet service, working with Citi, MasterCard, First Data and Sprint. Google suggests one of the advantages, aside from reducing the need to carry multiple loyalty program cards and credentials, are savings and offers of various types.

Google Wallet is a key part of Google's strategy for enhancing shopping for both businesses and consumers. "It’s aimed at making it easier for you to pay for and save on the goods you want, while giving merchants more ways to offer coupons and loyalty programs to customers, as well as bridging the gap between online and offline commerce," Google says. See http://www.google.com/wallet/.

At first, Google Wallet will support both Citi MasterCard and a Google Prepaid Card, which you’ll be able to fund with almost any payment card.

Users will have to use a Google Nexus S at first, since that is the only Android device that natively supports near field communications. The service also will be available in a limited number of cities.



Google Wallet is built to work with the fast growing MasterCard PayPass network—a merchant point of sale service that enables consumers to tap to pay. As a result, Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.

Google is also working with point of sale systems companies and top retail brands to create a new SingleTap shopping experience. Consumers will be able to pay for an item using a credit card or gift card, redeem promotions and earn loyalty points—all with a single tap of their Google Wallet. Google is working with VeriFone, Hypercom, Ingenico, VIVOTech and others to develop these next generation point of sale systems.

Retailers participating in the new SingleTap experience include: American Eagle Outfitters, Bloomingdale’s, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy’s, Noah's Bagels, Peet’s Coffee & Tea, RadioShack, Subway, Toys“R”Us and Walgreens.

“Google Wallet allows us to harness the power of mobile technology to enhance our in-store shopping experience and helps bridge the gap between our online and in-store consumer interactions,” said Martine Reardon, executive vice-president of marketing and advertising, Macy's. “Macy's is always looking for cutting-edge technology that will deliver value and engage our customers in personal ways. Google Wallet delivers this unique interaction across channels.”
The first Google Wallet field tests are focused in New York and San Francisco, where many retailers, Coca-Cola vending machines and even taxis are enabled, including major outlets such as CVS, Jack in the Box, Sports Authority and Sunoco. First Data, a global leader in electronic commerce and payment processing, is actively recruiting thousands of new merchants in these areas and will soon expand those efforts to deploy more contactless merchant terminals across the country.
Google has also been testing a variety of consumer deals that can range from a 20-percent discount on a new pair of boots discovered on a Google search advertisement; to a $5 off check-in offer received upon entering a store; to a "deal of the day" offering a $20 lunch for $10 at a local restaurant.

At most stores you will be able to use Google Wallet to show your offer at the register, where the cashier will either scan it or manually type it in. At participating Google SingleTap merchants, you will be able to pay and redeem an offer with one tap of your mobile device.

Because Google Wallet is a mobile app, it will eventually be able to do more than a regular wallet ever could, but without the bulk, Google says, SingleTap will start with offers, loyalty and gift cards but some day items like receipts, boarding passes and tickets will all be seamlessly synced to your Google Wallet.

Google Wallet will work best if it’s an open commerce ecosystem so you will be able to carry all the credit cards, offers, loyalty and gift cards you choose—and eventually much more. To this end, Google Wallet will make it possible to integrate numerous types of partners, and Google, Citi, MasterCard, First Data and Sprint invite the banking community, mobile carriers, handset manufacturers, merchants and others to work with Google Wallet.

Official Google Blog: Coming soon: make your phone your wallet

Google Might Agree to Compensating Access Providers

Way back when, when access providers began complaining in public that huge application providers such as Google were "riding pipes for free," one concern application providers have had is that they might wind up having to pay the access providers fees of some sort to reach customers. That is the business concern behind much, if not most of the support for "network neutrality," on the part of application providers.

But government pressure often goes a long way towards convincing telecom and video ecosystem participants that they need to solve a problem before the government tries to solve it for them. So it is that French regulators are putting pressure on Google that could ultimately lead to Google, and then other application providers, compensating mobile network operators for use of their bandwidth.

A compromise can be found between operators urging direct compensation for investment in faster networks and app providers,” France Telecom SA Chief Executive Officer Stephane Richard says. The threat is serious enough that Google chairman Eric Schmidt recently has been saying Google and access providers are "co-dependent."

To be sure, Google would rather not encounter a new cost of doing business, were it to be required to help participate in some way in assisting access providers to keep expanding bandwidth. But the French action suggests serious pressure is mounting, and Google might not want to have governmental authorities make those rules.

The changes show that the broadband business remains dynamic, but also shows the increasing need Google has to work with and shape regulatory thinking. Google isn't a common carrier, but it is part of a common carrier ecosystem, and that means paying attention to regulators who can shape, define or eliminate revenue models.

Google Might Agree to Compensating Access Providers

Satellite Providers Argue for Inclusion in Broadband Funds

There is nothing quite as contentious as any proposed changes to current intercarrier compensation or universal service programs, even though many would argue the programs no longer work very well. 

The U.S. “Connect America Fund” represents billions of dollars worth of support for broadband suppliers in unserved and underserved rural areas. As you would expect, potential suppliers are going to fight over those funds, including the matter of eligibility. One clear fight is between some fixed line providers on one hand and wireless providers of several types, including satellite providers, mobile providers and fixed wireless providers as well. But there also is contention between fixed line providers. 

Independent rural telcos have complained that a disproportionate amount of those underserved areas are served by AT&T and Verizon Communications, preferring that funds be earmarked only for smaller and independent companies and cooperatives. Satellite providers in the United States and Europe think they should be eligible providers. 

Separately, European satellite broadband providers are lobbying the European Commission to provide public funding for the rollout of satellite broadband across Europe.

At a conference held by the Association of Telecommunications and Value-Added Service Providers, industry stakeholders said that satellite was the only form of broadband provision to offer universal coverage, patching the holes left by other solutions, such as fixed networks and mobile broadband.

In the United States, Dish Network Corp., Hughes Network Systems, ViaSat and WildBlue Communications (ViaSat) argue they should be allowed to apply for Connect America Fund projects.

Google Maps Adds D.C. Transit Info

Transit directions in Google Maps for Android have been available for two years, including directions for 440 transit systems. Washington, D.C. is the latest city to be added.

Each page now includes a list of upcoming scheduled departures for different lines, all the transit lines serving the station, and links to nearby transit stations.

Google LatLong

Dump Steve Ballmer?

David Einhorn, hedge fund manager for Greenlight Capital, called for the Microsoft chief to step down on Wednesday during a speech at an investor conference. Ballmer's presence is the biggest drag on Microsoft's stock, according to Einhorn. The high-profile investor also blamed Ballmer for wasting billions on research and referred to Bing as a 'sinkhole,' according to The New York Times. Microsoft's stock is widely considered undervalued at under 10 times its expected earnings, according to Reuters.

Calls to rid Ballmer from Microsoft's helm are nothing new.

Dumping Steve Ballmer: Microsoft's Pros and Cons

Google Mobile Wallet: Who Controls the SIM?

Google is expected to announce today its mobile wallet program, working with MasterCard. To do that Google will need to have control over the near field communications secure element, which it does on the Nexus S. That obviously raises the question of which participant in the ecosystem will control the credentials loading function as mobile wallet or NFC-based mobile payment services proliferate.

Mobile service providers will want to control that credentials process themselves, to retain a vital role in the mobile payments and mobile wallet businesses. Handset manufacturers, for the same reason, will want to maintain control of the credentials management to add value to their handsets and create the platform for new revenue streams.

Google Wallet phone-pay is coming

Google to Launch Mobile Wallet Today

Google on May 26, 2011 is expected to announce its new mobile payments service in partnership with MasterCard, Citibank, Spring and various retailers. The mobile wallet service will work for the moment on the Google Nexus S device that comes equipped natively with near field communications capability.

The service will use "PayPass" retailer terminals supplied by MasterCard. The program will launch in five cities, including New York,San Francisco, Los Angeles, Chicago and Washington, D.C in the summer of 2011. Macy's, American Eagle and Subway will feature the payment system alongside customer rewards programs.

In taking a mobile wallet approach, also now the stated goal of Isis, Google clearly is aiming not at the transaction revenue, but at other opportunities ranging from loyalty to local advertising and promotion.

The Mobile Payment Wars Are Officially Underway - Technology - The Atlantic Wire