Tuesday, July 31, 2007

Google bets on mobile market

Search giant Google is setting the stage for its biggest push yet into the U.S. mobile market, in a strategy that delicately straddles the line between partnering and competing with the major cell phone operators.

Last week, Google signed its most significant deal with a U.S. wireless operator to date. Sprint Nextel will integrate the company's mobile services with the carrier's new 4G WiMax network.

But in a move that could pit Google against wireless operators, the company recently announced plans to bid in the Federal Communications Commission's upcoming 700MHz wireless spectrum auction. Google is also continuing with its plans to build free citywide Wi-Fi networks in San Francisco and Mountain View, Calif.

The recent activity has many Google watchers speculating about the company's ultimate plans. Will it build its own wireless network using spectrum from the upcoming auction? Or will it strike more deals like the one it signed with Sprint Nextel? Will it come out with its own Google phone that will take on the likes of the Apple iPhone and other manufacturers like Motorola and Nokia?

Danny Sullivan, editor of Search Engine Land, says Google's moves in the wireless auction, WiMax with Sprint and its citywide Wi-Fi projects are all extensions to the company's existing business, enabling bandwidth for applications such as YouTube.

"They have real concerns that carriers will restrict access to their own services, and if they can't deliver those services they lose money," Sullivan said. "So if they can change the rules, or have the bandwidth themselves, they can go directly to consumers with that stuff. Now Google owns one of the big bandwidth hogs of the Web, YouTube. That sucks down a lot of the bandwith that's out there."

Google says its plans, whether they be to partner or to possibly compete with cell phone carriers, are all about providing Internet access.

"Mobile is the fastest and cheapest way to reach the largest number of people," said Chris Sacca, head of special initiatives at Google. "There are billions of people on this planet who still don't have access to the Internet. And we think mobile presents the biggest opportunity to get them on the Internet."

But the company has been tight-lipped about specific plans for building out mobile access. And now it seems to be hedging its bets between a strategy of partnership and one that puts Google in full control. So while it rails against the phone companies at hearings on Capitol Hill or within city halls, the company is also trying to strike deals with these same operators behind closed doors.

U.S. cell phone operators have traditionally viewed Google with some trepidation, not knowing if the search giant is a friend or foe. As a result, some--like Verizon Wireless and AT&T--have been reluctant to add Google's mobile services directly to their service menus.

Google has struck deals with large mobile providers in Asia and Europe, such as Vodafone and China Mobile, but Sumit Agarwal, product manager for Google Mobile, admits that wireless operators in the U.S. have hesitated when it comes to embracing Google as a partner. Still, Agarwal believes that U.S. cell phone companies will soon come around.

"Our intention is to work with all our global partners to bring together all the services that provide huge value for mobile users," he said. "Of course, there is a natural resistance to change from some operators. But carriers are smart and savvy. They see the direction that they need to go, and they're willing to do it."

Since November 2006, Google has had a relationship with Sprint to integrate some of its mobile applications, such as mobile Gmail, directly onto the Sprint wireless menu. Google has struck similar relationships with other U.S. operators like Helio, Leap Wireless and Kajeet.

But this latest deal with Sprint takes the relationship a step further, integrating more pieces of Google's technology into the wireless service and providing a potential outline for future deals with carriers. For example, Sprint plans to combine its location technology with Google's search tools, e-mail and chat to provide location awareness for users.

This means consumers could use Google to search for a local coffee shop, for instance, without having to enter an area code. They could also automatically broadcast their whereabouts to friends when they are setting up a meeting using Google Talk instant chat service or e-mail on their phones.

"What we have on the cellular side with Sprint is a simpler and less sophisticated integration," Agarwal said. "But the new 4G relationship gives the applications more prominence. It's more user-centric and tailored for personalized use."

But clearly the biggest gamble that Google is taking with its wireless strategy could happen in January when the company is expected to bid on licenses in the 700MHz spectrum auction.

Friday, July 6, 2007

China's newest export: lawsuits

Not since exploding Ford Pintos in the 1970s has there been as incendiary a catalyst for recalls as China's recent spate of consumer product scares. Since March a cluster of incidents involving potentially deadly, defective, or contaminated products imported from China - pet food, toys, tires, toothpaste, cough syrup, shrimp - has awakened both that country and the United States to a latent crisis.

The larger question is just who is legally responsible when a chemical used in antifreeze ends up in a tube of toothpaste. U.S. companies are starting to find out as the lawsuits roll in that the tainted ingredients may come from China, but the liability is here.

U.S. regulators - the FDA, the Consumer Product Safety Commission, and the National Highway Traffic Safety Administration - generally hold U.S. importers responsible for ensuring that foreign-made products meet American safety standards.

But often the importer doesn't have nearly the wherewithal to do so. Foreign Tire Sales (FTS), a 16- employee, family-owned business that operates from a basement in Union, N.J., is now hurtling toward bankruptcy as it begins a recall of 450,000 Chinese-made tires at a projected cost of $90 million. As things stand, when the money runs out, the recall will end.

In May, FTS was sued in state court in Philadelphia after its tires allegedly caused an accident last year in which two passengers were killed and one severely brain damaged. FTS has sued the manufacturer, Hangzhou Zhongce Rubber Co. Ltd. (HZ), in federal court in Newark, and the victims' families have sued HZ in state court in Philadelphia. So far, HZ has responded to neither action, and it has angrily denied any defect. Even if the U.S. plaintiffs win default judgments against HZ, it's unclear whether they will be able to enforce them anywhere.

Menu Foods, the Ontario petfood maker whose China-sourced, melamine-laced gluten poisoned dozens of brands of American pet food, already faces more than 100 class-action suits. In its case, the big-name brands and retailers that it supplies - Procter & Gamble, Wal-Mart, Safeway, Kroger - are showing up as defendants too, and could become the crucial deep pockets if Menu Foods runs out of insurance coverage. San Francisco plaintiffs lawyer William Audet explains, "For most states there's a duty on the seller to distribute a product that doesn't have poison in it." Indeed, with few exceptions, the retailers are typically on the hook, says Sheila Birnbaum, head of product-liability defense at Skadden Arps Slate Meagher & Flom.

They can seek indemnification from their Chinese exporters, but that will be their problem. (No American lawyer interviewed for this article was contemplating suing Chinese entities in Chinese courts, where tiny damage awards and frequently hostile local judges often make litigation pointless.) One way or another, if they want to stay in business, Chinese exporters will have to become accountable for injuries to U.S. consumers and businesses.

"If China wants to stay in the world market as a player, it's going to have to stand behind the products its companies manufacture," Birnbaum says. That means stronger regulation, more legal accountability - and maybe even more Chinese personal-injury lawyers.

Tuesday, July 3, 2007

15 cheaper ways to tour Europe

With the weak dollar, you have to travel smart. That means doing a lot of research before you leave home and avoiding the places and things that suck up your money -- within reason. After all, you are on vacation.

Ouch! Ai! Aie! Autsch!

That's the sound you'll be hearing all over Europe as U.S. travelers discover how very weak their dollars have become.

The last time my husband and I visited France, in 2002, the dollar and the euro were more or less equal. On our return trip five years later, the euro was about 40% stronger -- and it made a big difference in where we stayed, what we ate and, to a lesser extent, what we did with our time.

You can still have a wonderful visit, but the following tips will help you stretch your money at a time when $6 coffees and $300 shoebox-sized hotel rooms are the norm:

Research like crazy -- and be flexible. There's no substitute for shopping around when it comes to finding great deals on airlines and hotels. No single source always has the best prices; I've booked cheap vacations from consolidators, travel agents and third-party travel Web sites as well as directly with airlines and hotels. Several of our friends also swear by the package deals offered off-season by airlines, including United and Virgin. Check them all out, and make sure to look at different departure and return dates. Traveling midweek generally cuts costs, and moving your visit by a few weeks can also save a bundle. Also, check your frequent-flier miles; although it's harder to book reward flights in peak seasons, you may still be able to find seats on less-popular routes and flights.

Consider a non-euro destination. You can still travel cheap to certain European countries that don't use the euro, but you have to pick your non-euro country wisely. Americans' top European destination, the United Kingdom, still uses the pound but is no bargain; ditto for Denmark, Sweden and Switzerland. But Eastern European destinations such as Bulgaria, Hungary and Romania offer culture, dramatic architecture and a decent exchange rate.

Rent an apartment. If you're staying at least a week in one place, renting a flat is often more economical than staying in a hotel. We found a cozy little apartment on Ile St. Louis in Paris that worked out to about $150 a night, including all fees; the least expensive hotel we could find in the same neighborhood was more than $200 a night, not including taxes. The apartment had a kitchen, which saved us money on meals, and a washer/dryer combination, which allowed us to pack exceptionally light. Of course, it was on the fifth floor of a building that had no elevator, but we figured the exercise was good for us. You can find apartment rental agencies in every major city; locate them with an Internet search, or ask your well-traveled friends for recommendations.

Don't overpack. Too much stuff means you'll wind up taking taxis instead of the cheap public transit that connects most European airports and city centers. You also could pay extra if you have more luggage than airlines allow. I toured India with a single suitcase and managed a 10-day trip to France with one carry-on bag, so I've learned that packing light pays off. (You might want to stuff a collapsible duffle bag into your suitcase, however, to bring home any treasures you buy overseas.) Stick to one basic color scheme for clothing, like dark blue or black, and try to make sure each piece works with all the other pieces for maximum variety. Good leather walking shoes, preferably in black, are another must; nothing screams "U.S. tourist" like white sneakers.

Tip the right way. It's not true that Europeans don't expect tips, but it is true that the rules are different. Use a guidebook to brush up on the rules of each country before you land, and avoid the mistake I made of overtipping a Parisian taxi driver by $20 and failing to tip a wonderful Italian waiter who bent over backward to make our evening memorable.

Use the right credit cards -- and call your issuer. A few years ago, using your MasterCard or Visa for most purchases was a great idea, since you got the best possible exchange rate (the one offered to major banks). Now, many major issuers -- including Bank of America, Chase, Citibank and Wells Fargo -- are tacking an extra 2% fee on top of the 1% fee charged by Visa and MasterCard. Only two cards, Capital One and Discover, waive the fee entirely, and Discover isn't widely accepted outside North America. Check with your card issuers to see which issuer charges the least, and use that card for most of your purchases. Be sure to take at least one extra card and to let your issuers know in advance when you'll be out of the country. On our honeymoon in Spain, our credit card issuer cut off access to our card, convinced that our overseas purchases were a sign of fraud. Fortunately, we had a spare card with us, averting what could have been a disaster.

Use your ATM card for cash. Banks are cashing in by charging higher fees for overseas transactions, but you're still better off using ATMs than most currency-exchange kiosks. Just make sure you withdraw large amounts -- $200 to $300 at a time -- so that the $1.50-to-$3 fees your bank charges don't add up. (Also, make sure you know your numeric PIN -- European keypads usually don't have letters on them -- and try to make your withdrawals at a bank during business hours, in case your card gets eaten.) If you do use a currency-exchange service, pick one that posts the rates at which it buys as well as sells currency. The rip-off places are the ones that post only the selling price, or the ones that have more than a 5% gap between the two prices.

Keep your receipts. If you shop a lot, you can get a refund of the value-added tax (VAT) you pay in European countries. This is something you'll need to do at the airport on your way out of the country, but the small hassle can be worth the savings -- up to 25% of what you spent. Follow the instructions in your guidebook for claiming your refund.

Investigate to save. Speaking of guidebooks, get one that's compatible with your budget and tastes. In my young, single days, I was a huge fan of the Lonely Planet guides and Rick Steves' "Through the Back Door" books. They're perfect for the budget-minded traveler, with excellent information on hostels, cheap eats and inexpensive amusements. I still check one of these out of the library when planning our trips. But now we tend to take more upscale books like Fodor's that offer more midpriced options, as well as detailed guides to museums and cultural attractions. Read through a few guidebooks at the bookstore before you decide.

Get a museum pass. Most major cities allow you to buy one-, three- or five-day passes that get you into major museums. Not only do these passes tend to pay for themselves with just a few visits, but they also allow you to skip the hours-long lines at popular museums like the Louvre in Paris and the Uffizi in Florence. That alone would have been worth paying a premium.

Scope out transit options. Public transportation in Europe tends to be efficient, cheap and safe. The Tube will get you just about anywhere you need to go in London -- including back and forth from Heathrow. Trains and the Metro do the same in Paris. Many other cities, such as Florence and Venice, are small enough that you'll be able to walk just about everywhere you want to go, or you can rent a scooter. There's really no reason to rent cars, which are expensive to park in cities; save that for trips to the countryside. Your guidebook will tell you where to buy transit passes. Another great option: renting bicycles. Despite narrow streets and cobblestones, most European cities are very bike-friendly, and you can cover a lot of ground with little effort. In Paris, a road that runs along the Seine River is off-limits to cars on Sundays and holidays, and fills instead with walkers, skaters and whole families out for a bike ride.

Eat like the natives. A popular piece of budget travel advice is to eat your largest meal at lunch, when prices are cheaper. But we've found dinner to be the main social event in most countries, and have had good luck getting overseas friends (or friends of friends) to give us recommendations for great places -- some pricey, some not. In order to splurge, we typically have light breakfasts and picnic lunches in local parks. We also alternate less expensive dinners in university districts, which cater to starving students, with fancier dinners recommended by city natives.

Shop like a native. One way to really save money is not to shop at all, but few of us can resist the urge to bring back some booty. For the best deals, avoid the shops and stalls around tourist attractions; instead visit the department stores and even grocers that locals use. Which would you rather have: an Eiffel Tower refrigerator magnet or a jar of real French jam? A cheap plastic statue of the David, or a bottle of Italian olive oil? I'm also a big fan of real flea markets, not the overpriced tchotchke markets aimed at tourists that you find operating in city centers most days of the week. Typically, the real flea markets are held once or twice a month in slightly-off-the-beaten-path neighborhoods and attended mostly by locals. In Florence, for example, I found great deals on secondhand pottery, antique fabrics and old lithographs, along with headless Barbies and enormous vinyl record collections, at the flea market on Piazza dei Ciompi; it's held on the last Sunday of each month. Prices are negotiable, so you'll need to exercise your haggling skills.

Check out the countryside. This advice is purely "do as I say, not as I do," because our love of museums keeps us pretty much nailed to big cities. If you can break away from urban areas, though, you'll often find more reasonable rates for food and lodging in rural areas and smaller cities.

Next time, go in the shoulder season. Technically, winter is the cheapest time to visit Europe, but six years of living in Alaska made me allergic to cold weather as well as reluctant to cart the heavy coats, hats and gloves needed to survive a February day in London. Instead, we tend to visit Europe in the spring or fall, when hotel rates are still cheaper than the busy summer season and there are (relatively speaking) fewer tourists.

Saturday, June 30, 2007

Canadian pension plan wins telecom bid

Bell Canada agreed Saturday to be bought by a private partnership led by the Ontario Teachers Pension Plan in a deal valued at C$51.7 billion (US$48.5 billion) that would be the largest leveraged buyout ever.

The deal to take Canada's largest telecommunications company private, if approved by shareholders, would also be the largest takeover ever in Canada.

The Ontario Teachers Pension Plan Board, the U.S.-based Providence Equity Partners and Madison Dearborn Partners, LLC would buy BCE Inc. for C$51.7-billion which includes the assumption of C$16.9-billion (US$15.9 billion) worth of debt, preferred equity and minority interests, BCE said.

The Toronto-based pension plan — with assets of C$106 billion (US$99 billion) in 2006 — invests and administers the retirement funds for Ontario's 167,000 teachers and 104,000 retired teachers.

The pension plan was BCE's largest shareholder with a 6.3 percent stake.

Jim Leech, senior vice-president of Teachers' Private Capital, the investment wing of the pension plan, said this deal is larger than the February purchase of energy provider TXU Corp. by a consortium of buyout shops for a record $45 billion.

"This is bigger than that, but that's not why we bought it," Leech told The Associated Press in an interview. "It's a bit daunting."

Leech said the plan has been a major BCE shareholder since the early 1990s.

Michael Hlinka, an independent financial analyst, called the deal unique because it involves a leveraged buyout by a private partnership of a huge public company.

"The system worked in that Bell shareholders were not happy with the current management and ... the way the company was run," and were able to receive a substantial premium over the share price, Hlinka said.

The investor group will acquire all of the common shares of BCE not already owned by Teachers for an offer price of C$42.75 per common share. The stock traded at C$31.33 at the start of the year and has been as low as C$25.32 in the last year. It closed at C$40.34 on Friday.

Hlinka said that for the amount being offered by Teachers, the new owners will have to improve BCE's earnings to make the deal beneficial.

BCE Chairman Richard J. Currie said the deal provides great value for shareholders.

"We were charged with managing one of the world's largest private equity transactions, certainly the largest in this country," Currie told reporters in a conference call. "We had to do it within the relatively small market of Canada and we had to cope with foreign ownership restrictions which capped participation of non-Canadian companies at 47 percent equity."

BCE chief executive Michael Sabia said the offer is a 40 percent premium over the average price for BCE shares over the past year.

"This is a huge amount of value delivered to our shareholders," he said on the same conference call.

The group led by the pension plan won out several other bidders including New York-based Cerberus Capital Management LP with billionaire Hong Kong-based Canadian citizen Richard Li's Pacific Century Group, and the Canada Pension Plan Investment Board with backing from American buyout firm Kohlberg Kravis Roberts & Co.

Telus, Canada's second-largest telecom company, pulled out of the bidding last Tuesday.

The deal will require approval from shareholders as well as federal government regulators. Leech said BCE's headquarters will remain in Montreal.

BCE, which has more than 54,000 employees, had annual revenue of $C17.7 billion (US$16.4 billion) in 2006. It has 18.2 million customer connections, including 5.8 million wireless subscribers, 8.64 million phone lines, 1.94 million internet subscribers and 1.82 million satellite television subscribers. Other BCE holdings include interests in CTVglobemedia, one of the biggest Canadian media companies that owns the Globe and Mail newspaper and CTV television.

Friday, June 29, 2007

Regulators set new subprime loan standards

WASHINGTON - Banking regulators on Friday completed guidelines that call on lenders to strictly evaluate borrowers’ ability to repay home loans.

The guidance issued by the Federal Reserve and the other four federal agencies that regulate banks, thrifts and credit unions, comes in response to an increasingly troubled housing market and pressure from Congress. Home prices have been falling and mortgage defaults have been rising, especially among so-called subprime mortgages given to buyers with shaky credit.

The standards, which are voluntary and only apply to federally regulated lenders, calls for verification of borrowers’ incomes in most cases. Consumers should have clear disclosures of their mortgage terms and should have at least 60 days to refinance a loan that is about to jump up to a higher rate without penalty.

In a prepared statement, Federal Reserve Governor Randall S. Kroszner said “it’s only good business sense for the lenders and it is the right thing to do for the borrowers’ sake.”

The chair of the Mortgage Bankers Association said the guidelines come with a downside — they will reduce the availability of credit for borrowers — and he urged Congress not to pass legislation that would put similar standards for borrowers into law.

Lawmakers, some of whom accuse the Fed of being lax in its oversight of the mortgage market for many years, have been urging the central bank to strengthen the guidelines. While the guidelines would not affect state-regulated mortgage companies, many state banking regulators are expected to follow suit.

In addition to the Fed, the agencies issuing guidance are the Federal Deposit Insurance Corp., the National Credit Union Administration, and the Treasury Department’s Office of the Comptroller of the Currency and Office of Thrift Supervision.

Sheila Bair, the FDIC’s chairman, said in a statement that, because the guidelines won’t affect non-bank lenders, who have been the main originators of subprime loans, it is “essential for Congress or the Federal Reserve to establish comparable principles” for all lenders.

Indeed, the Fed is weighing a crackdown on all lenders, not just those who are federally regulated, and several Democratic lawmakers are pushing for tougher standards.

In recent weeks, the mortgage market’s troubles have again sparked fears that they could impact the broader economy. Two Bear Stearns Cos. hedge funds nearly collapsed due to bad bets on mortgage securities.

Banc of America Securities said in a report last week that the troubles could signal the “tipping point of a broader fallout from subprime mortgage deterioration” that could lead to higher rates for new home loans.

Homeowners with about $515 billion in adjustable-rate home loans will see their monthly mortgage bills rise this year as rates reset to higher levels, and another $680 billion worth of mortgages will reset next year, the Banc of America report said. Of those adjustable rate loans, more than 70 percent are subprime.

Exxon, Conoco refuse to sign Venezuela deal

CARACAS, Venezuela - Exxon Mobil Corp. and ConocoPhillips refused to sign deals Tuesday to keep pumping heavy oil under tougher terms in Venezuela’s Orinoco River basin, signaling their departure from one of the world’s largest oil deposits.

Analysts said the move, however, won’t have a major effect on supplies or lead to higher prices at U.S. pumps because production by the two companies will shift to other producers who agreed to the pacts.

Four major oil companies — U.S.-based Chevron Corp., BP PLC, France’s Total SA and Norway’s Statoil ASA — signed deals to accept minority shares in the oil projects under new terms set by President Hugo Chavez’s government.

“Exxon Mobil is disappointed that we have been unable to reach an agreement on the terms,” the Irving, Texas-based company said in a statement. “However, we continue discussions with the Venezuelan government on a way forward.”

The changes are part of a broader nationalization effort by the Chavez government to assume greater control over “strategic” sectors of the economy. Aside from the oil industry, the government recently nationalized the country’s top telecommunications and electricity companies.

Elogio Del Pino, a director of the state oil company, said Houston-based ConocoPhillips, the third largest U.S. oil company, is not leaving the country completely and will maintain a 50-percent share in the Deltana Platform natural gas project.

Officials said Exxon Mobil, the world’s largest publicly traded oil company, will have no remaining oil interests in the South American country.

Venezuela “has an informal agreement to continue talking” with Exxon Mobil and ConocoPhillips about the terms of finalizing their involvement in the heavy crude projects, Oil Minister Rafael Ramirez said at a signing ceremony in Caracas.

“In the case of Exxon Mobil and ConocoPhillips, they are ending their participation in the businesses” of the Orinoco and other exploration activities, Ramirez said. “We are talking with both companies to continue negotiations to establish settlements.”

Ramirez said the signed agreements will benefit Venezuelans. He thanked the companies that agreed to the new terms, saying they are working toward a “secure future” in Venezuela.

It remains unclear how the companies are being compensated for their losses. The six companies invested more than $17 billion in the Orinoco projects and hold some $4 billion in outstanding debts, but Petroleos de Venezuela SA, also known as PDVSA, would not be assuming those obligations, Ramirez said.

“Each company is responsible before the banks for its commitments,” he told reporters.

The U.S. State Department urged Venezuela to provide proper compensation.

“The government of Venezuela, like any other government, has the right to make these kinds of decisions to change ownership rules,” said State Department spokesman Tom Casey. “We want to see them meet their international commitments in terms of providing fair and just compensation.”

Monday, June 25, 2007

If successful, iPhone could raise the bars

The iPhone won't stop global warming. It won't bring peace to the Middle East. But if it lives up to even a portion of the hype, it does have the potential to change how people interact with their cell phones, computers and each other.

Apple Inc.'s iPhone, combining a mobile phone, iPod and Internet browser into one handheld gadget, could represent the closest consumers have come to carrying their life with them wherever they go.

With their photos, music, videos, friends and news at their fingertips, they won't have to leave any of it behind when they're away from home or the office.

Some already have started to embrace this lifestyle with smart phones such as the Blackberry, but none of the iPhone competitors on the market offer quite as much as Apple is promising. Looking back, the iPhone could mark a tipping point, encouraging the masses to look at their cell phone as more than a cell phone and prompting profound changes in everything from privacy to citizen journalism. It could -- assuming the iPhone succeeds -- help introduce a new age of mobile living.

"The iPhone has the potential to raise the level of technology that each one of us carries every day," said Kevin Almeroth, associate director for UC Santa Barbara's Center for Information Technology and Society.

Though the buzz around the iPhone has been overwhelming, it could be because Apple and its mastermind, CEO Steve Jobs, have been down this road before. In the 1980s, the Cupertino technology company helped pioneer the era of home computers with the simple-to-use Mac. More recently, it helped usher in the digital media age, making music, television shows and movies available on the Web and on a portable player, the stunningly successful iPod.

The iPhone is Jobs' latest gamble. The technology industry has long talked about mobile computing, untethering people from their machines yet allowing them to stay in touch.

But that promise has largely been unfulfilled. Smart phones have come the closest, but even the best of that bunch have offered only limited Web access.

Jobs aims to fulfill that elusive promise in part by incorporating a full Internet browser on the iPhone. "It's like having your whole life in your pocket," Jobs said as he unveiled the iPhone in January. "It's the ultimate digital device."

With its sleek, simple design, the iPhone targets the average Joe and Jane, making smart phones more accessible than before. It took Elisabeth Halvorson, a small business owner in Corte Madera, almost a year to get the hang of using her Blackberry. "My learning curve would be shorter with the iPhone," said Halvorson, who is considering one after her cell phone contract expires next year.

But the iPhone in its current form has its limits. It isn't running on the fastest cell phone network. Its touch screen interface may not be that easy to use. It doesn't have GPS, the mapping technology that gives turn-by-turn directions. It doesn't let users download music and videos wirelessly; they still need to connect to their computer to do that.

Though Apple recently announced extended battery life for the device, some still worry it isn't enough. And at $500 to $600 apiece, plus a two-year contract with AT&T, it isn't cheap.

"That it will dominate the entire space is getting a little ahead of itself," said Adam Sexton, chief marketing officer for Groove Mobile, which manages Sprint's cell phone music downloading service.

Furthermore, not all of Apple's products have hit the mark. Who can forget the much maligned Newton, a personal digital assistant that failed to catch on during the 1990s? It's also still too early to see whether the Apple TV, which transfers a user's iTunes media library to the television, lives up to its goal of connecting the computer to the living room. So far, only a few thousand Apple TVs, which hit stores in March, and similar devices have been sold each month, according to Ross Rubin, an analyst with NPD, a market research firm.

Jobs said he expects to sell 10 million iPhones by next year, taking just 1 percent of the world's cell phone sales. Yet even if it doesn't end up in every consumer's hands, it could drive them to consider other smart phones or take advantage of features already on their cell phones.

And that, in and of itself, would trigger a big change in the world of handheld computing.

Only a small, though increasing, number of consumers makes more than just calls on their cell phones. About 4 percent watched video, and 12 percent listened to music on their cell phones during the first quarter of 2007, according to the research firm Telephia. In March, about 12 percent surfed the Web on their phones, the company said.

That could soon grow and lead to significant changes. The increased use of handheld Internet devices could, for instance, further the citizen journalism and self-broadcasting movement with more people not only able to take photos and videos with their phones, but also post them right away on the Internet.

Imagine if even more people had the ability to publish photos and videos from the aftermath of Hurricane Katrina or the recent shooting at Virginia Tech. "Now you start to have a platform to do more than just talk or buy music," Almeroth said. "There is all sorts of sharing that could happen."

Activists already have used cell phones to mobilize around a cause, such as sending text messages to rally supporters. But they could do even more with tools such as the iPhone, said Howard Rheingold, author of "Smart Mobs: The Next Social Revolution" and a professor at Stanford University.

"Those are hints to what people are going to do," he said. "But in what way will they band together to do things they haven't done before? That's the million-dollar question."

But at the same time that instant connection could generate greater privacy concerns. Camera phones already have caused problems, from Peeping Toms snapping pictures in dressing rooms to embarrassing incidents caught on camera.

The "widespread deployment of these devices means all the privacy concerns we've had are exacerbated," said Almeroth.

Many mobile applications already allow people to record and upload videos to YouTube, Flickr and other photo- and video-sharing sites. A partnership between the San Francisco Internet company Six Apart and Nokia lets bloggers send photos and videos to their sites directly from their phones.

It all taps into a phenomenon already thriving on the Internet known as Web 2.0. People like to see what their friends are doing, from keeping track of their friends' status and moods on social networking sites like Facebook and MySpace to trying out the music their friends are listening to on sites such as iLike and Last.fm, said Martin Stiksel, co-founder of Last.fm.

Young people are "constantly waiting for their friends to send them new links, new photos. It's a new sort of entertainment," he said. Now smart phones are offering "a great opportunity to capture what happens not only in the office and living room, but also in the park or walking down the street or sitting on the bus."

Much of that enthusiasm is being channeled into the iPhone, with software developers already rolling out new, iPhone-ready applications. Digg, a user-edited news site in San Francisco, has already customized an application. Developers also have created programs for people to instant message, make travel arrangements, find the best gas prices, compare prices online as they're shopping and make to-do lists on the iPhone.

"There's a lot of excitement around the basic technology that Apple is embedding in the phone," said Chris Messina, a Web 2.0 entrepreneur who is helping to organize an iPhone developers camp, iPhoneDevCamp, next month. "It's the first time we've had a full-powered Web browser that does everything your desktop Web browser does."

Of course, none of this is new. But Jobs has a knack for tapping into a growing trend at the right time. "Let's see if they can do it again," Stiksel said. "The jury is still out."

Google pushes 100-mpg car

Offers millions to advance plug-in hybrid vehicles and other technologies that link nation's transport system to the electric grid.

Google said Tuesday it is getting in on the development of electric vehicles, awarding $1 million in grants and inviting applicants to bid for another $10 million in funding to develop plug-in hybrid electric vehicles capable of getting 70 to 100 miles per gallon.

The project, called the RechargeIT initiative and run from Google's philanthropic arm, Google.org, aims to further the development of plug-in hybrid electric vehicles - cars or trucks that have both a gasoline engine and advanced batteries that recharge by plugging into the nation's electric grid.

"Since most Americans drive less than 35 miles per day, you easily could drive mostly on electricity with the gas tank as a safety net," Dan Reicher, director of Climate and Energy Initiatives for Google.org, wrote on the organization's Web site. "In preliminary results from our test fleet, on average the plug-in hybrid gas mileage was 30-plus mpg higher than that of the regular hybrids."

The project also aims to develop vehicle-to-grid (V2G) technology, allowing cars to sell their stored power back to the nation's electricity grid during times of peak demand.

"Linking the U.S. transportation system to the electricity grid maximizes the efficiency of our energy system," said Reicher. "Our goal is to demonstrate the plug-in hybrid and V2G technology, get people excited about having their own plug-in hybrid, and encourage car companies to start building them soon."

General Motors (Charts, Fortune 500) has promised to sell a plug-in hybrid version of its redesigned Saturn Vue SUV but has not set a specific date for production. The company has contracted with two battery suppliers to work on an improved battery technology for the vehicle. The company is also working toward a production version of its Chevrolet Volt, a plug-in hybrid concept car shown at the 2007 Detroit Auto Show. That vehicle would be driven entirely by electricity with an on-board engine used only as a back-up generator.

Ford Motor Co. (Charts, Fortune 500) also has a drivable plug-in hybrid demonstration vehicle based on the Ford Edge SUV. Similar to GM's Chevrolet Volt in its basic engineering, that vehicle uses a hydrogen fuel cell as a back-up generator but could use a gasoline engine or some other type of motor to charge the batteries.

Because they have to store up and release large amounts of electricity, plug-in hybrids require more advanced batteries than hybrid vehicles currently on the market. The batteries in non-plug-in hybrid vehicles continuously store and release small amounts of electricity, a work cycle that puts little strain on the batteries.

While many people don't associate Google with energy, analysts say the fit isn't all that unnatural.

Renewable energy, unlike coal or nuclear, will likely come from thousands or tens of thousands of different locations. Analysts have long said that one of the big challenges will be managing that flow into and out of the nation's electric grid, and that companies that manage the flow of information are well placed to handle that task.

The $1 million in Google grants went to Brookings Institution to run a conference on plug-ins, CalCars and Plug-In America to educate the public about plug-ins, and the Electrical Power Research Institute, the Rocky Mountain Institute and Dr. Willett Kempton from the University of Delaware for plug-in R&D.

Google (Charts, Fortune 500) also said it has turned on its massive solar panel installation at the company's Mountain View, Calif. headquarters.

At 1.6 megawatts, Google said it's the biggest solar project on a corporate campus in the United States, and one of the largest in the world.

Sunday, June 24, 2007

Robots to search unexplored Arctic for new life

BOSTON, Massachusetts (AP) -- Researchers hope newly developed robots will give them their first look at a mysterious ridge located between Greenland and Siberia.

The Gakkel Ridge, encased under the frozen Arctic Ocean, is steep and rocky, and scientists suspect its remote location hosts an array of undiscovered life.

Researchers from the Woods Hole Oceanographic Institution on Cape Cod plan to begin a 40-day expedition of the ridge on July 1. They plan to use the robots to navigate and map its terrain and sample any life found near a series of underwater hot springs.

Tim Shank, lead biologist on the international expedition, said researchers have no idea what new life at the ridge might be like.

"I almost think it's like going to Australia for the first time, knowing it's there, but not knowing what lives there," he said.

The Gakkel Ridge marks a 1,100-mile stretch from north of Greenland toward Siberia, where the North American and Eurasian tectonic plates continuously move away from each other.

Scientists believe new life could be discovered there because of hot springs that are created at such tectonic boundaries when ocean water comes into contact with hot magma rising from the earth's mantle.

The organisms known to exist in the Arctic basin, where the Gakkel is located, may have evolved in a unique fashion because they were mostly isolated from the life in the deep waters of other oceans for all but the last 25 million years, said Robert Reves-Sohn, the expedition's lead scientist.

The job of reaching any new organisms at the ridge falls to scientists operating three new robotic vehicles, two of which are designed to navigate untethered under the ice.

The two robots, named Puma and Jaguar, cost about US$450,000 (euro335,000) each and received significant funding from NASA because their mission is similar to what scientists hope to do in a future exploration under the ice of one of Jupiter's moons, Europa.

The robots are built to descend to about 5,000 meters and work 5 to 6 meters off the bottom, photographing and removing samples, said Hanumant Singh, the project's chief engineer.

The advances are no guarantee of success, however.

The hot springs are difficult to find in far less challenging conditions and the margin for error is thin, since the robots cannot surface through the ice and be retrieved if there are problems.

Singh said the excitement of finding new organisms and understanding the geology in the Arctic outweighs any risks to the robots.

"Even though we know there's a strong probability, or there's a reasonable probability of losing a vehicle, it's still worth it," he said.

Saturday, June 23, 2007

Toyota Shuns Lithium-ion Batteries for Next Gen Prius

Don't expect any impressive MPG gains in the next generation Toyota Prius

Toyota's next generation Prius likely won't have the spectacular boost in fuel economy that was once expected. In late May, the Japanese newspaper Nikkan Koyogo reported that Toyota was considering nixing the idea of putting lithium-ion batteries in the next generation Prius. The newspaper stated that there were concerns within the company about the safety of lithium-ion batteries -- something that Sony is already well aware of.

The Wall Street Journal confirmed today that the next-generation Prius will not use lithium-ion battery technology -- at least for the first few years. The lithium-ion batteries that were to be used in the Prius would have been provided by Panasonic EV Energy Company.

The Prius will instead continue to use nickel-metal hydride batteries -- albeit in a higher capacity form to boost mileage over the current generation vehicle.

Toyota's decision to not use lithium-ion battery technology could be a big break for General Motors. GM has long been in Toyota's shadow when it comes to hybrid technology, but the company is looking to reverse its fortunes in the coming years.

The company has launched its new "mild hybrid" Saturn Aura Green Line sedan and is nearing the release of dual-mode hybrid Chevrolet Tahoe and GMC Yukon full-size SUVs. GM's coup de grâce, however, could be the upcoming Saturn Vue Green Line mid-sized crossover.

In 2009, the Saturn Vue Green Line will be equipped with a 2-mode hybrid powertrain and plug-in capabilities. Owners will be able to charge their vehicle overnight via a standard 110-volt outlet and drive 10 miles on fully charged lithium-ion batteries before the internal combustion engine takes over. In addition, GM says that its plug-in hybrid Vue Green Line is good for 70MPG.

All hope is not lost for the Prius in the quest for increased fuel economy. Current and future Prius owners can always look to third-parties to retrofit their vehicles with lithium-ion batteries. Lithium Technology Corporation has produced a lithium-ion battery pack (comprised of 63 LTC LiFePO4 cells) for the current Prius. When coupled with a plug-in system, fuel economy jumps from 46MPG combined to 125MPG

Thursday, June 21, 2007

New Magnetic Phenomenon May Improve RAM Memories And Storage Capacity Of Hard Drives

A team of scientists from the Universitat Autònoma de Barcelona, in collaboration with colleagues from the Argonne National Laboratory (USA) and the Spintec laboratory (Grenoble, France), has for the first time produced microscopic magnetic states, known as "displaced vortex states", that will allow an increase in the size of MRAMs (which are not deleted when the computer is switched off). The research has been published in Physical Review Letters and Applied Physics Letters.

In the near future we will turn our computers on and they will be ready to work almost instantaneously; no longer will we have to wait a while for the operating system and certain programs to load into the RAM. At the moment, SRAM and DRAM do not allow this, as they are quick, but they are deleted when the computer is switched off (that is, they are "volatile"); Flash memories, which we use for digital cameras, are not deleted, but they are slow; MRAM, which is still being developed, is fast and non-volatile, but has a relatively low storage capacity. A team of scientists from the UAB Department of Physics, in collaboration with colleagues from the Argonne National Laboratory (USA) and the Spintec laboratory (Grenoble, France), have discovered a magnetic phenomenon that could be useful in the quest for the ideal type of memory: an MRAM with large storage capacity.

The "displaced vortex states", first observed by UAB researchers, are small circular movements of just a few thousandths of a millimetre that form in the tiny zones where the data is stored. The information on hard drives has normally been saved by orientating these zones in specific directions. The zones pointing upwards, for example, codify a 1, and those pointing downwards a 0. The smaller and more compact these zones are, the greater the capacity of the hard drive. But if they are too close together, the magnetic field created by one can affect the neighbouring zone and wipe the data. However, if the field is saved in a whirlpool form, in "vortex state", it does not leave the tiny zone to which it is confined and does not affect the neighbouring data, thus making it possible for a much larger hard drive capacity.

The scientists have achieved these "vortex states" on small, circular structures that are smaller than a micrometre (a thousandth of a millimetre) and combine layers of material with opposing magnetic properties: a layer of ferromagnetic material and a layer of antiferromagnetic material. What makes the configuration of the magnets observed by the UAB scientists new is that the vortex states are "displaced", that is, once the magnetic field is no longer applied, the eye of the whirpool moves off-centre with regard to the circular structure on which it formed. This seemingly insignificant detail is the key to applying the technique to increasing the capacity not only of hard drives but also Magnetic Random Access Memories (MRAMs) that are fast, non-volatile, but until now with small storage capacity.

"The phenomenon observed could also be applied to other fields, such as improving the read heads of hard drives", according to Jordi Sort, a UAB-ICREA physicist and the coordinator of the research. "But the reason that motivated us is even more fundamental: this is a very peculiar physical state that can be observed only in extremely small magnetic structures."

Wednesday, June 20, 2007

Power Pedal Legs Coming in August

Humans will be able to receive a robotic upgrade if research by Matsushita is successful

Matsushita Electric Industrial Co. unveiled the "Power Pedal" robot suit; a pair of robotic legs able to help elderly or disabled people walk. The robotic legs offer a user-expanded leg power up to seven times more than what the human body offers. Once properly secured in the device, a user applies foot pressure to a pair of sensor-equipped pedals that control the suit.

Suit designers programmed the device to move along six different axes, and it can safely travel over rough terrain. The company expects the robot suit to be a logical tool in disaster relief operations, with no official testing details announced.

The Power Pedal will be available on the Japanese market in August with an estimated price of 20 million yen ($167,000). Matsushita will lower the price to 3.5 million yen ($30,000) by 2015.

Matsushita made noise in the robotics field previously when it unveiled plans to create a robotic jacket which rehabilitates paralyzed medical patients. With the help of Activelink and Kobe Gakuin University, the three organizations will make a vest that slips over the patient's chest and arms and allows a person to move around freely.

Monday, June 18, 2007

Another Step Towards Unbreakable Quantum Encryption

Long-distance relay proves concept of foolproof security using entangled photons

A group of European scientists succeeded in beaming an encryption code based on photons across about 90 miles of ocean. The experiment took place recently in the Canary Islands, from a light source on the island of La Palma to a receiving station on nearby Tenerife. The researchers published their exploits in this month's issue of the academic journal Nature Physics.

According to the European Space Agency, which funded the study, the experiment allows ESA to move closer to harnessing entanglement as a means of "communicating with satellites with total security."

Entanglement is an unusual property of quantum mechanics used to describe the manner in which photons naturally interact with each other. Using a non-linear process called Spontaneous Parametric Down Conversion (SPDC), it is even possible to directly create pairs of entangled photons. These entangled photons lend themselves to encryption applications because of their unique linkage. If one photon is exposed to a third particle, both of the paired photons will change their state instantaneously -- even though one of the photons is physically separated from its mate.

The degree of change in the state of the paired photons is completely random and unpredictable, according to ESA, theoretically foiling any attempt by a third party to decode the message without actually intercepting the quantum encryption key. However, the very act of detecting the photons would change the state of the photon pair, betraying the presence of an eavesdropper. "These changes would be obvious to the legitimate receiving station and the presence of the eavesdropper would be instantly detected," ESA wrote in its official announcement of the experiment's success. "Such behavior has the potential to allow messages to be swapped with complete confidence."

Prior to the inter-island experiment, it was not known whether entanglement would be adversely affected when the beam of entangled photons was transmitted through the atmosphere over a considerable distance. The favorable results of the experiment have given the space agency confidence that entanglement does not decay over long distances, indicating that quantum encryption can be harnessed for securing satellite communications.

Possible applications for the unbreakable code might include transmissions of financial data between banks, military communications and even the distribution of feature films, according to ESA officials.

Microsoft Plans to Revolutionize Interface Technology With "Surface"

Surface takes user involvement with digital media to the next level

Microsoft is looking to today make the same breakthrough in interface technology with "Surface" that the mouse did back in the 1980s. Surface, which will be demonstrated today at the Wall Street Journal’s D: All Things Digital conference, provides instant interaction between people and digital content using hand gestures on a touch screen.

"With Surface, we are creating more intuitive ways for people to interact with technology," said Microsoft CEO Steve Ballmer. "We see this as a multibillion dollar category, and we envision a time when surface computing technologies will be pervasive, from tabletops and counters to the hallway mirror. Surface is the first step in realizing that vision."

In its current form, Surface is incorporated into a 30" display mounted into a table. This allows user involvement to expand beyond just one person. Surface is capable of recognizing input from not just one finger, but up to dozens of inputs simultaneously.

This technology isn’t exactly new as Apple uses a less complex version on its iPhone and “multi-touch” technology was demonstrated by Jeff Han to much fanfare last year. Microsoft, however, is bringing multi-touch to the masses.

Users can perform tasks such as browsing through pictures and music files by simply using their fingers. For users operating Surface in restaurants, a simple touch of the screen could allow you to order a beverage during a meal.

Surface also has the ability to read bar codes on items to provide further information to the user. "This means that when a customer simply sets a wine glass on the surface of a table, a restaurant could provide them with information about the wine they’re ordering, pictures of the vineyard it came from and suggested food pairings tailored to that evening’s menu," said Microsoft. "The experience could become completely immersive, letting users access information on the wine-growing region and even look at recommended hotels and plan a trip without leaving the table."

Microsoft also notes that the transfer of digital content is also possible with Surface. So it's not too hard to envision being able to set your Zune on Surface and transfer your playlist or video files for playback on the 30" display.

Surface will first be available at Harrah’s Entertainment properties, Sheraton Hotels & Resorts and T-Mobile retail stores.

"When visitors to Las Vegas choose to stay at one of our casinos, they can enjoy the amenities at all of them," said Harrah senior VP Tim Stanley. "Microsoft Surface is a great way to help our guests get the most out of their trips to Las Vegas by putting all the offerings and experiences we make available at their fingertips."

"We are creating new and engaging ways for our guests to connect with their passions while away from home. Microsoft Surface puts us at the forefront of technology and allows guests to interact with each other and our hotel in a revolutionary way," said Hoyt H. Harper II, senior vice president for Sheraton.

Sunday, June 17, 2007

MIT Engineers Unveil Wireless Power System

A 60-watt bulb illuminates for the future of wireless power

"Wireless" isn't exactly a new concept to computing. Network connectivity, USB devices and even displays had their cords cut in recent years. Researchers from the Massachusetts Institute of Technology took the final steps towards cutting the last tether of the laptop user: the power cord.

Transmitting power wirelessly is traditionally limited to line-of-sight methods such as microwave or laser, which have a "significant negative effect" on anyone or anything unfortunate enough to be caught in the middle.

Playfully dubbed "WiTricity" by the team, the researchers were able to power a sixty-watt lightbulb from seven feet away using the principle of magnetically coupled resonance. The basic concept is similar to existing electromagnetic inductive chargers, but does not suffer the massive drop in efficiency when distance is increased.

The experiment works as follows. Two magnetic coils resonate at the same frequency. When one of these coils is attached to a power source, the resonant magnetic field produced by the coil increases dramatically. The second, unpowered coil "couples" with the resonating magnetic field. The resonance from the second coil is then converted back to electricity for the device.

The MIT researches are quick to tout magnetically coupled resonance over electromagnetic induction. Aristeidis Karalis, an MIT graduate student that worked on the project, states, "Here is where the magic of the resonant coupling comes about. The usual non-resonant magnetic induction would be almost 1 million times less efficient in this particular system."

In addition to increased efficiency, the WiTricity project does not transmit biologically harmful electromagnetic radiation during operation. Additionally, line-of-sight issues present in microwave technology disappear with WiTricity; magnetic fields are more-or-less unaffected by non-metallic materials in most environments.

The most current WiTricity experiments use coils approximately 20" in diameter and operate at distances of approximately two meters. The team hopes to eventually power a notebook from a several meters away.

Private Company Unveils Tourist Spaceship

Another company has high hopes for space tourism

The European Aeronautic Defense and Space Company (EADS) has publicly announced plans to join the space tourism race by 2012. The company believes the space tourism industry could be a multibillion-dollar industry in 20 years, especially as companies continue to develop technology to safely and easily take tourists up on trips. EADS is currently Europe's biggest aerospace company, with the Astrium division being responsible for the space tourism endeavor.

Astrium is best known for creating the Ariane rocket, which is responsible for taking a large portion of commercial satellites into orbit.

The Astrium division plans on carrying space tourists on a suborbital ride higher than 100 kilometers above Earth. The craft will use traditional runways and normal jet engines to take off and climb to 12 kilometers, then the rocket engines would be ignited to take the craft up another 60 kilometers in just 80 seconds. The spacecraft will then coast the rest of the way until it's eventual 100 kilometer apogee.

The expected cost of one ticket will run roughly $267,000 per flight. Due to safety precautions, only four passengers at a time will be able to enjoy the hour and a half-long flight.

EADS already has already created specifications for a rocket plane, but now is seeking co-investors to help ease the cost of construction. Most contributed funding should come from private investors, though several governments may become involved with the project. Bavaria -- where the engines will be produced -- is a likely candidate of a for German participation in the project.

"We believe it is the will of human beings to visit space and we have to give them the possibility to do that, said Francois Auque, Astrium CEO.

The space jet is scheduled to become operational next year, with 2012 as the goal for commercial launch.

The space tourism sector is picking up -- for example, companies including Virgin Galactic, Benson Space, Space Adventures -- are all vying for the top spot of the budding industry. Space Adventures remains the only company to successfully take a paying customer into orbit at a cost of $20 million per flight.

Saturday, June 16, 2007

Supersonic Jet Engine Reaches Mach 10 During Testing

Scramjet Could Make Two Hour Flight From Sydney To London A Reality

Scientists from Australia's Defense Science and Technology Organization (DSTO) and the US Defense Advanced Research Projects Agency (DARPA) successfully launched one of the world's fastest air-breathing engine experiments in the Australian outback Friday.

The scramjet engine experiment reached speeds of up to Mach 10 -- ten times the speed of sound. Scramjets are air-breathing supersonic combustion ramjet engines that could make it possible for a two hour flight from Sydney to London, according to the DSTO.

"This research is a major boost to Australian and international scramjet technology research," said Parliamentary Secretary to the Minister for Defense, Peter Lindsay. "Today's flight rocketed to an altitude of 530km, and reached Mach 10 during re-entry. Australia is a world leader in hypersonics research."

"Scramjet research has taken place in Australia for over three decades. We have active research programs in niche technologies of scramjet propulsion as well as guidance and control at hypersonic speeds," he added

The flight took place at the Woomera Test Facility in South Australia. Testing also represented the research collaborators in the Australian Hypersonics Initiative (AHI).

"This test has obtained the first ever flight data on the inward-turning scramjet engine design," said Dr. Steven Walker, Deputy Director of the Tactical Technology Office at DARPA. "DARPA will compare this flight data to ground test data measured on the same engine configuration in the US."

"We are pleased with this joint effort between the U.S. and Australia and believe that a hypersonic airplane could be a reality in the not too distant future."

DSTO scientist Dr. Warren Harch said hypersonic propulsion using supersonic combustion ramjet (scramjet) technology offered the possibility of very high speeds and fuel efficiencies.

"This technology has the potential to put numerous defense and civilian aerospace applications within our reach during the next couple of decades," Dr Harch said.

Hypersonics is the study of velocities greater than Mach 5 and could have a significant impact on defense as well as on international transport and future access to space, according to the DTSO.

Future defense applications for hypersonic vehicles include long-range time critical missions, with civilian applications including low-cost satellite launching and high-speed aircraft.

Harch said DSTO's scientific contributions to the research program had been the computer modeling of the combustion processes, non-linear mechanics, guidance and control, and trajectory analysis.

"Assisting with telemetry collection is another important area, which presents quite a challenge when working with a vehicle traveling at hypersonic speeds," Dr Harch said.

In November last year DSTO signed the $74 million Hypersonics International Flight Research Experimentation (HiFire) Agreement with the United States Air Force.

Up to 10 hypersonic flight experiments are planned to occur at Woomera over the next five years under the agreement.