Microsoft Waxes Nostalgic With 'Pac-Man' Update

Microsoft has put a new gloss on the decades-old gaming icon "Pac-Man." The new version, dubbed "Pac-Man Championship Edition," provides several new twists on the classic, including high-definition graphics. The release indicates a move to lasso in casual gamers, a category in which Microsoft competes more with Nintendo than with Sony.

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TechNewsWorld | 06/06/07


It is perhaps one of the most distinctive sounds in video game history -- the "wakka, wakka, wakka" of 1980s pop culture phenom "Pac-Man." Now, 26 years after the game was first introduced, Microsoft (Nasdaq: MSFT) Latest News about Microsoft has kept the beloved sound but flipped the script on Pac-Man, Blinky, Inky, Pinky and Clyde with the game's first revamp since its worldwide release. Game designer Toru Iwatani, who brought the world the first "Pac-Man," was also behind the creation of the latest game.

"'Pac-Man' was the game that ignited the world's passion for video games, with every member of the family hooked on avoiding Clyde and eating up all the Power Pellets," said Jeff Bell, corporate vice president of global marketing Email Marketing Software - Free Demo for Microsoft's interactive entertainment business. "It is a tremendous honor that Namco Bandai and Toru Iwatani are going to use the power of the Xbox 360 Latest News about Xbox 360 and Xbox Live Arcade platform to deliver the next evolution of 'Pac-Man' to the world."

Microsoft announced the release of its 21st century "Pac-Man Championship Edition" Tuesday during the title round of its Xbox 360 "Pac-Man" World Championship. In addition to competing for the title of "Pac-Man" World Champion, the 10 finalists received an unexpected thrill when they became the first gamers in the world to play the revamped version of the iconic 1980s video game.

Outdated No More

"Pac-Man Championship Edition" has been updated with a bevy of new features, including new mazes that dynamically change shape during gameplay, six new timed game modes and new soundtracks. The developers kicked the game up a notch further with high-definition (HD) graphics.

Designed especially for the "Pac-Man" World Championship's final round by Namco Bandai and Iwatani, "The Championship Mode," one of six timed games, features redesigned mazes sporting wide maze walls and a widescreen configuration to enable high-speed game play. Players have a scant five minutes to complete this mode.

Each subsequent mode bumps up the gaming quotient with fewer Power Pellets and Reward Mazes on the "Patience and Reward Course," and a darkened maze only partially illuminated on "The Darkness Course." Pac-Man hits warp speed on "The Freeway Course," while "The Manhattan Course" allows the ever-hungry muncher to cruise a maze based on the famous New York borough. For an extreme challenge, "The Overall Course" provides gamers with a mixture of all other modes.

Lovers of the 2-D classic game need not feel left out; Microsoft has included something for everyone. They can now enjoy the game's more modern look in HD, Microsoft said.

"Pac-Man Championship Edition" is available beginning June 6 for 800 Microsoft Points via the Xbox Live Arcade.

"This is the first time anybody has modified the mazes for 'Pac-Man' since there was a 'Pac-Man,'" Rob Enderle, principal analyst at Enderle Group, told TechNewsWorld. "So this is a major change for what was an old staple."

Courting Casual Gamers

At the time the original "Pac-Man" reigned supreme, casual games were incredibly popular, Enderle said, It was a time when a lot of today's older gamers were growing up. "This is the way video games came into the market. This is how video games came to be," he added.

"Pac-Man" is a game that a lot of people liked in the past and that many more will enjoy in the future, making this a significant coup for Microsoft, which has reset its sights on Nintendo's Wii Latest News about Wii, the current market leader. Microsoft gets some good press and it attracts casual gamers, a group comprised largely of women, therefore expanding the Xbox 360 customer base, Enderle explained.

Microsoft will likely aggressively pursue the casual gaming market, he said. One factor pointing to the console maker's commitment, he noted, is Microsoft's development of a Wii-esque controller of its own.

"It has some motion controls that at least they think will be as good if not better than what Nintendo has on the market," Enderle pointed out. "They have caught on to the fact that the PlayStation 3 Latest News about PlayStation 3 is increasingly not a target because the market has pretty much rejected that product. They are now rethinking what they are doing and starting to target the Wii more aggressively."

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Study: Kids Latching On to Tech at Earlier Ages

Research firm NPD says it has found a significant decrease over the last two years in the average age at which American children are introduced to electronics and technology. Today's kids, the research found, now first use mainstream gadgets like cell phones, MP3 players and DVD players at an average of 6.7 years of age.

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TechNewsWorld | 06/06/07


Back in the good old days of 2005, most American youngsters didn't start fiddling with electronic gadgets until they were about eight years old. Now, six-year-olds know how to use cell phones, DVD players and just about anything else with an "on" button.

Such are the findings of the NPD Group, a research firm that's been keeping tabs on the penetration of consumer electronics in kids' lives. The company's latest report indicates the average age at which children begin using consumer electronic devices is now 6.7 years old. When NPD conducted a similar survey in 2005, that average was 8.1 years old.

"On average, children begin using electronic devices at approximately seven years of age, with televisions and desktop computers showing the youngest initial exposure (about four or five years of age), and satellite radios and portable digital media players (PDMP) showing the oldest (about nine years of age)," found the researchers.

The Younger Americans

Cell phones and DVD players top the list of devices that are being used by children at the earliest age, NPD said, but it noted "virtually all of the various electronic devices register a decline in average age that the initial use occurs."

Information for the report was collected in a nationwide online survey of adults 25 and older who had children aged four to 14 in the household. To qualify, the kids had to use at least one consumer electronic device measured in the study, which took place between March 16 and 22.

The survey found children use non-portable televisions just under six days per week. They spend time about four days each week using cell phones and digital video recorders, according to NPD.

"Kids are drawn to the latest and greatest digital devices just as their parents are," said a NPD's Anita Frazier. "They appear to have no fear of technology and adopt it easily and without fanfare, making these devices a part of their everyday lives."

Their Very Own

Just because the ages of children using consumer electronics is decreasing doesn't mean people are buying more devices, said NPD. The average number of electronic devices owned and used by youngsters decreased slightly compared to last year and 2005, the firm said. "Moreover, close to 25 percent of households surveyed claimed to have made no electronics purchases during the past 12 months," noted NPD.

That trend might be true for devices considered to be owned by adults in a household. However, NPD found an increase in the number of gadgets the kids call their own. Their ownership of personal digital music players, portable video games and digital cameras "exhibits the largest increases of the categories studied, with cell phones and portable DVD players also showing growth," says the study.

Children are less interested in the newest devices, such as TV-to-computer video units and satellite radios. Nor are they big on yesterday's hot items, such as film cameras and karaoke systems, said NPD. Among the devices cited the most as being purchased during the past year are cell phones, digital cameras and personal digital music players.

The market for kid versions of electronic products is growing, and children are using these devices "at a younger age and more frequently," said NPD. Nevertheless, "with the exception of video games, the adult versions of electronics show higher penetration than do the children's version of the same product," the research found.

While kids may be using high-tech toys earlier, there is still room in their lives for traditional playthings, asserted Marianne Szymanski, president and founder of Toy Tips.

"Kids and electronics has been hyped a lot over the years," she told TechNewsWorld. "However, we have not found in our research that younger children enjoy electronic learning toys as much as they do clay, board games, dress up, action figures, stuffed animals and other traditional toys that assist in developmental learning. Some electronic learning toys are great for younger children when the parent plays with the child and contributes to the learning process."

Part of the Environment

The study's findings don't surprise Rob Enderle, principal analyst with the Enderle Group.

"That has been a consistent trend ... over time, particularly with cell phones," said Enderle. He said parents are often giving, or lending, cell phones to their children so they can keep in touch.

While he agreed the decreasing age of gadget users can be partially attributed to better, more intuitive design of the machines, Enderle figured a more important reason is the sheer ubiquity of consumer electronics these days.

"Kids have been seeing it since they were one or two years old," he said. "By the time they get to be six they're old hat. It becomes part of the initial learning experience, and from the ages of two to five, the rate of learning is incredibly high. ... They take to it naturally by seeing their parents do it and learning by observation."

Modern American children, Enderle noted, are "not frightened and not intimidated" by even some rather complicated gizmos. "In a lot of homes, it is the young child that is the expert, who is able to use the device more capably than the parents," he commented.

New EPA Policy Muddies the Water, Charge Critics

Taking into consideration a decision reached last year by the U.S. Supreme Court, the EPA and the Army Corps of Engineers have issued new guidelines for the protection of wetlands and bodies of water under the Clean Water Act. Critics charge that the new rules impede the organizations' ability to look at the big picture when considering how to protect wetlands.

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TechNewsWorld | 06/06/07


The Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers have issued new joint guidance for their field offices for the protection of wetlands and bodies of water that are protected under the Clean Water Act.

The new guidelines come in the wake of last year's Supreme Court decision over the identification of wetlands, streams and rivers that are subject to the Clean Water Act. The decision of two consolidated cases, Rapanos v. United States and Carabell v. United States, has sparked criticism for not clearly specifying which waters are subject to EPA and Army Corps protection.

While non-navigable waters, streams and many wetlands may still be managed by the EPA and Army Corps, the agencies' jurisdiction may need to be decided on a case-by-case basis in lower courts.

Hampered by Decision?

As for the Army Corps and EPA, the organizations issued the guidelines with public statements on President Bush's intent to protect existing wetlands and bodies of water -- while noting the Clean Water Act and the Supreme Court decision.

"We are committed to protecting America's aquatic resources under the Clean Water Act and in accordance with the recent Supreme Court decision," said John Paul Woodley Jr., assistant secretary of the Army, civil works. "This interagency guidance will enable the agencies to make clear, consistent and predictable jurisdictional determinations. The results, once posted on agency Web sites, will document how the scope of the Clean Water Act jurisdiction is being determined."

The Bush Administration supports a policy of no net loss of wetlands, which is one of three key elements to the Bush Administration wetlands policy, the EPA reports. The other two elements include an active management program that will result in the restoration, enhancement and protection of three million acres of wetlands by 2009 and a commitment to conserve isolated wetlands such as prairie potholes.

"The Bush Administration is committed to protecting wetlands and streams under the Clean Water Act and Supreme Court decisions," said Benjamin H. Grumbles, EPA's assistant administrator for Water. "We'll use our regulatory tools to meet the president's ambitious wetlands goals."

Up In the Air

These new guidelines, however, are not business-as-usual, and it's difficult to say whether previously covered wetlands and watersheds will receive the same levels of protection. Either way, the new guidelines have critics.

"We're really disappointed with the new guidelines," Julie Sibbing, senior program manager for wetlands and agriculture policy for the National Wildlife Federation, told TechNewsWorld. "The court decision itself left some opening for interpretation, but it seems like the [Bush] administration took every opportunity to retreat from protection in any possible way they could, and we think they retreated unacceptably, even according to what the Rapanos decision said."

Furthermore, the new guidance leads to new procedures where individual streams or ponds would be isolated in the decision-making process, meaning that a single headwater stream would have to have an adverse effect on a larger body of water, Sibbing said. While possible to prove that a headwater stream could affect the Mississippi River, for example, the new guidelines reduce the likelihood of that determination.

The combined effects of several watersheds, for example, could possibly be ignored, which can be critical to the evaluation of environmental problems. Hypoxia, for example, is a condition in which aquatic environments lose dissolved oxygen that can lead to the mass death of fish and other aquatic organisms. Pollution entering a body of water from a single stream, for example, might not lead directly to hypoxia, but pollution entering multiple streams could possibly lead to downstream hypoxia.

"With wetlands, you have thousands of little wetlands in the Prairie Pothole Region. Sure, if you fill one in, it's not going to devastate duck populations," Sibbing explained. "But if you fill thousands of them in, one at a time, it is going to have devastating impacts. They just don't seem to want to take that concept on."

New Legislation

"The Administration's so-called guidance has done little to unmuddy the water," said Bob Perciasepe, COO for Audubon and a critic of the new guidelines. "The only real solution is legislation. A perfect storm of government ambivalence, aggressive polluter activism and a split Supreme Court have subverted the original intent of the Clean Water Act and make it vital that Congress fix the problem."

A handful of concerned members of Congress have introduced a new bill, the Clean Water Authority Restoration Act, which, if passed, could clarify the scope of the Clean Water Act to ensure the protection of watersheds.

eBay Joins Crusade Against Ivory Poaching

Starting later this month, eBay will stop the sales of ivory-based products. The online auction giant made the announcement after meeting with the International Fund for Animal Welfare, which informed eBay that 9 out of 10 ivory-containing items sold online come from poached elephant tusks.

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E-Commerce Times | 06/06/07


eBay (Nasdaq: EBAY) Latest News about eBay will move to ban international sales of ivory-based products from its auction platform, the company said, citing a recent report showing that the vast majority of such items contain illegally obtained ivory.

Scoring public relations points by following the call of a leading international animal rights group, eBay said the ban would go into effect later this month.

eBay announced the ban at a conference on international animal rights in The Hague, Netherlands, on Tuesday, where some 170 countries were set to discuss a proposal to institute a 20-year global moratorium on all ivory trading as part of a larger agenda under the auspices of the United Nations' Convention on International Trade in Endangered Species.

A Step Forward

The move came after eBay executives met with representatives of the International Fund for Animal Welfare (IFAW), which said in a report recently that nine out of every 10 items sold online contain ivory from poached elephant tusks.

The ban is "fantastic news," said Peter Pueschel, the head of IFAW's Global Program Against Wildlife Trade, because of eBay's "commercial and financial might" and its international reach.

"IFAW believes that this is an important step forward, but that a total ban is ultimately needed, and we will continue to work with eBay and others to implement this," he said.

Because it is mainly a commerce platform enabling person-to-person trading, eBay has long walked a tightrope when it comes to regulating what its community of users can buy and sell.

Pattern Found

The site's rules ban trade of illegal items, and eBay has from time to time stepped in to halt what it feels are distasteful or exploitative sales, such as when it put a lid on sales of certain items relating to the 9/11 terrorist attacks in 2001. Both eBay and Yahoo (Nasdaq: YHOO) Latest News about Yahoo have found themselves caught up in international controversies in the past as well over the sale of controversial items such as Nazi memorabilia.

In the case of ivory, eBay said it acted after the IFAW's report found that more than 90 percent of the ivory items being sold in eBay stemmed from "potentially illegal" sources.

IFAW carried out a survey of items being auctioned on the platform in February of this year and found that 94 percent of the items could not be verified as coming from legitimate sources, the group said. eBay's previous policies on ivory sales "varied from country to country and were often vague and not enforced," IFAW added.

The IFAW claims that as many as 20,000 elephants are illegally killed each year in order to supply ivory to markets around the world. Ivory is used to make jewelry and other items, and some African nations are backing a relaxation of an existing ban on the trade, citing a rebound in African elephant populations in recent years.

Doing Good Globally

For eBay, the ban may mean lost revenue, but is also a chance to burnish its image as a globally aware, environmentally conscious company, something that may pay especially large dividends as eBay relies on international sales for an increasing amount of its revenue every year.

"eBay has a presence in a lot of countries around the world where corporate responsibility is an important part of a company's brand image," Forrester Research analyst Carrie Johnson told the E-Commerce Times. "It has to consider more than just the U.S. when it makes decisions about its platform."

For eBay, the ivory issue is a minor one compared to the challenges it faces in growing its business and integrating its recent varied acquisitions, such as the Skype Latest News about Skype Internet calling company and more recently the StumbleUpon social networking and Web discovery site.

"eBay has been performing well," noted JupiterResearch analyst Patti Freeman Evans. "It's still managing to find growth, though it has challenges ahead."

Microsoft's Open Source Patent Gripes: Everyone Loses?

Microsoft's maneuvering may scare some users away from Linux and other open source software in the short term, said Joe Lindsay, CIO at Secured Funding in Costa Mesa, Calif. "It's like saying, 'I have a big baseball bat, and I'm going to hit somebody,'" Lindsay said. "Everyone runs away."

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Computerworld | 06/06/07


Microsoft's (Nasdaq: MSFT) Latest News about Microsoft claims that open source Open Source Hosting Solutions with 24x7x365 Support – Visit HostMySite.com Latest News about open source technologies infringe on 235 of its patents irked some IT managers last month, while others said they viewed the patent offensive as nothing more than a standard corporate business tactic.

However, none of the half-dozen IT executives who were interviewed about Microsoft's infringement assertions plan to change their open source adoption strategies -- at least, not unless and until there's a good reason for them to do so.

Among the users in the irked camp was Darryl Lemecha, CIO at data aggregator ChoicePoint. The patent claims sounded like "more saber-rattling on Microsoft's part," Lemecha said via e-mail.

Creating Uncertainty

"To throw out broad statements to the marketplace doesn't help anyone," he wrote. "It creates uncertainty for the open source community and causes animosity toward Microsoft. No one wins."

ChoicePoint isn't a major user of open source technology, but it runs Linux servers as well as Unix, Windows and mainframe systems. The Alpharetta, Ga.-based company respects Microsoft's desire to defend its intellectual property, Lemecha said. However, he added, the software vendor's claims weren't specific enough to be worrisome at this point. "Nor have they been clear on their planned actions," Lemecha said. "We will not change our plans, but we will watch where this goes."

Joe Lindsay, CIO at Secured Funding in Costa Mesa, Calif., said Microsoft's maneuvering may scare some users away from Linux and other open source software in the short term. "It's like saying, 'I have a big baseball bat, and I'm going to hit somebody,'" Lindsay said. "Everyone runs away."

However, he predicted that in the long run, Microsoft will suffer the most damage, because it should be focusing more on developing innovative products than on threatening other vendors that have outsmarted it. "Their business model is fundamentally changing, and Microsoft is using [the specter of] the courthouse to extend their old way of doing business," Lindsay said.

'Just Business'

On the other hand, Beach Clark Jr., vice president of IT at the Georgia Aquarium in Atlanta, described Microsoft's patent tactic as "just business." The software vendor has a right to protect its patents against infringement, Clark said, although he added that comments implying that Microsoft would like open source users to pay it royalties weren't "a good PR move."

Microsoft executives first fired the shot across the open source community's bow in a story published by Fortune magazine last month. In a statement Microsoft issued confirming the patent claims, the company said it was speaking out because of concerns that Version 3 of the GNU General Public License "attempts to tear down the bridge between proprietary and open source technology that Microsoft has worked to build with the industry and customers."

Microsoft wants to sign more deals with open source software vendors like the one it announced last November with Novell (Nasdaq: NOVL) Latest News about Novell, which agreed to pay Microsoft a share of the revenue from sales of its Suse Linux operating system Manage remotely with one interface -- the HP ProLiant DL360 G5 server.. The two companies also promised not to sue each other's customers for patent infringement.

Staring People Down?

Horacio Gutierrez, Microsoft's vice president of intellectual property and licensing, said last week that the deal with Novell "meets the needs of customers, furthers interoperability [between Windows and Linux] and advances the interests of the industry as a whole." However, the latest draft of GPLv3 includes language that could make similar agreements legally impossible.

The director of technology at a metals manufacturing company based in the Midwest said he approves of the partnership between Microsoft and Novell "because like it or not, it gives Novell more viability." The metals company runs Suse Linux on about 125 servers, according to the technology director, who asked not to be identified.

He said he isn't concerned at all about Microsoft's patent infringement claims. "At this point, it seems like they're staring some people down and seeing if they flinch," he said.

Power Behind Open Source

Bill Hilf, Microsoft's point person on open source initiatives, told the IDG News Service that the vendor has no plans to start suing companies for patent infringement -- a comment that matched the company's assertion earlier in the week that it prefers licensing to litigating.

"I'm trying to be as clear as I can to people that this isn't a threat," Hilf said. "We're not going out and attacking people. We're trying to solve an [intellectual property] issue."

Despite those soothing words, Harry Roberts, CIO at Boscov's Department Stores in Reading, Pa., said via e-mail that he is still evaluating Microsoft's position. "It is an interesting about-face, just when everyone thought that Microsoft was finally accepting the reality that Linux is here to stay and that open source has found an expanding following," he added.

Broward County Public Schools in Florida uses a wide range of Microsoft and open source applications Get the facts on wireless solutions suited to your industry. to support its 270,000 students and staff members. "In the long run, I think that open source will prevail," said Vijay Sonty, the Sunrise, Fla.-based school district's CIO. Microsoft may be "the big gorilla" right now, he added, "but there's too much power behind open source."

Clock Ticking to Atlantis Blastoff

Current weather forecasts in Florida appear to be favorable for the launch of the space shuttle Atlantis, scheduled for Friday. NASA began its official launch countdown Tuesday. The takeoff, which would be the first shuttle launch of the year, was originally planned for several weeks ago before a hail storm damaged vital components, requiring painstaking repairs.

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AP | 06/06/07


NASA Latest News about NASA started a countdown Tuesday toward the first space shuttle flight of the year. Engineers reported no major technical problems and the weather forecast looked favorable for a Friday launch.

The countdown clock began ticking on schedule Tuesday at 9 p.m. EDT.

There was a 70 percent chance that the weather would be suitable at 7:38 p.m. EDT Friday, NASA's first opportunity to launch space shuttle Atlantis. The shuttle will carry seven astronauts on an 11-day mission to deliver a third pair of solar wings, which help power the international space station. They also will take three spacewalks to continue construction of the orbiting outpost.

Weather Looks 'Reasonably Promising'

Thunderstorms are predicted for Friday afternoon -- normal for a Florida summer day -- but they should move inland by launch time, said Kathy Winters, shuttle weather officer.

"For the coast here, the weather looks reasonably promising for launch," Winters said.

NASA test director Steve Payne said engineers faced no major glitches.

Window of Opportunity

Beginning Friday, NASA has four chances to launch Atlantis in five days. If the shuttle hasn't gotten off the ground by June 12, the launch team will have to wait five days to allow an Atlas rocket to try to launch at neighboring Cape Canaveral Air Force Station, Payne said.

The forecast for Saturday and Sunday also was 70 percent favorable for a launch, although the weather wasn't as promising on those days at two emergency landing sites in Europe.

The astronauts arrived at Kennedy Space Center on Monday.

Strike on Horizon?

About the only hiccup was the prospect of 569 workers at the Kennedy Space Center going on strike as early as this weekend. The workers rejected a contract offer last weekend from United Space Alliance, the space agency's primary contractor for preparing space shuttles for launch.

Kennedy Space Center has a 17,000-person work force, and few of the workers who might strike have any direct role in the final preparations for space shuttle launches. Payne said a strike would not affect a launch and that there are other employees who could fill the roles of striking workers if necessary.

The launch originally was set for mid-March but was postponed after a freak hail storm caused thousands of dings in the insulating foam on Atlantis' external tank.

Technicians spent more than two months making painstaking repairs to the tank.

"We're relieved that we are finally here," Payne said. "It has been a long wait ... and it looks like everything is falling into place nicely."

E-Mail Senders Can Pay to Bypass ISP Spam Filters

For now, Goodmail will approve only companies and organizations in existence for at least a year in order to thwart fly-by-night operations. Those that have prompted too many spam complaints will be disqualified. The service is designed to certify credit card statements, e-commerce receipts and other communications with existing customers.

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AP | 06/06/07


Four more Internet service providers will start charging banks, e-commerce sites and other large e-mail Email Marketing Software - Free Demo senders for guaranteed delivery.

In deals expected to be announced Thursday, Goodmail Systems is expanding its CertifiedEmail program to Comcast (Nasdaq: CMCSK) Latest News about Comcast, Cox Communications, Time Warner Cable's Road Runner and Verizon Communications (NYSE: VZ) Latest News about Verizon. Yahoo (Nasdaq: YHOO) Latest News about Yahoo and Time Warner's AOL became inaugural participants last year.

Individuals, businesses and organizations will be able to continue sending messages for free, but they risk finding those missives caught in increasingly aggressive spam Barracuda Spam Firewall Free Eval Unit - Click Here filters.

Reaching In-Boxes Directly

With Goodmail, a company can pay a quarter of a penny per message to bypass those filters and reach in-boxes directly. Recipients see a blue seal verifying that the message is legitimate; senders get confirmations and can resend messages lost in transit.

Nonprofit groups can participate, too, at about a tenth of the commercial rates.

At least half of the fees go to the service provider, Goodmail chief executive Richard Gingras said.

Approving Companies

For now, Goodmail will approve only companies and organizations in existence for at least a year, to thwart fly-by-night operations. Those that have prompted too many spam complaints will be disqualified.

The service is designed to certify credit card statements, e-commerce Reliable hosting solutions with 24x7x365 support – Visit HostMySite.com receipts and other communications with existing customers. It does potentially give a boost to larger corporations and groups that can afford the charge, but Gingras says their messages are the ones most likely to be mischaracterized as junk.

Peter Castleton, Verizon's director of consumer broadband services, said his company would still let senders apply for "whitelisting" -- and thus bypass filters as well -- without charge. Goodmail's service, he said, is for those that want approval at multiple ISPs at once.

Avaya Buyout News Sparks Heavy Trading

Merging with a rival like Nortel Networks or Alcatel-Lucent could have been more advantageous for Avaya, said communications equipment analyst Bill Choi at Jefferies & Co. Nevertheless, the $8.2 billion Sierra Holdings -- a subsidiary of Silver Lake Partners III and TPG Partners V -- offered for the firm is a good price.

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AP | 06/06/07


The US$8.2 billion private investors are offering for Avaya (NYSE: AV) Latest News about Avaya is a good price for shareholders of the phone systems maker and likely the most they will get, but merging with a rival could have been more strategically advantageous, an analyst said Tuesday.

A day after Avaya agreed to be bought out, its shares changed hands Tuesday at a furious rate -- normal right after a deal is announced -- and set a new 52-week high as investors sought quick gains or snapped up shares to hold for a sure profit when the deal is completed. Shares rose 31 cents, or 1.9 percent, to $17.03.

Meanwhile, Standard & Poor's Ratings Services late Tuesday lowered Avaya's corporate credit rating by two notches to "B+" and said the rating could be lowered further because the deal would increase Basking Ridge, N.J.-based company's debt dramatically.

The Agreement

The buyout agreement gives Avaya 50 days to develop a better deal than the $17.50-per-share offer from Sierra Holdings, a subsidiary of Silver Lake Partners III and TPG Partners V. Both are major private equity funds that invest in technology companies.

"It's a good deal for investors," said communications equipment analyst Bill Choi at Jefferies & Co.

Avaya spokesperson Jim Finn said Tuesday he could not discuss whether there are any other potential offers in the wind. He said the company expects the deal will close in the fall, after routine approvals from regulators.

If Avaya backs out, it must pay the consortium a breakup fee of $80 million to $250 million, depending on the circumstances.

The company makes office telephone systems and has patents for transforming traditional phone and data systems into integrated Internet Protocol-based networks.

A Multiyear Transition

Choi said Avaya and competitors are facing a multiyear transition in their business, with sales Free White Paper - What Retailers Should Know about M-Commerce likely to be bumpy as their customers move from the current telephone technology to Internet Protocol, the communications standard of the Internet, to boost their productivity Get the facts on wireless solutions suited to your industry..

He said private investors, who don't necessarily demand strong results from their holdings every quarter, can ride out that transition and wait for the market to stabilize, then take their profits.

The downside, he said, is that Avaya will be the same size after the deal and likely will have more debt. He expects the consortium to do a leveraged buyout, borrowing up to $5.5 billion of the purchase price.

Choi said Avaya would gain scale in a merger with a company with similar businesses.

"We think ultimately Avaya could have been better served by a strategic acquirer," Choi said, with Nortel Networks (NYSE: NT) Latest News about Nortel Networks and Alcatel-Lucent (NYSE: ALU) Latest News about Alcatel-Lucent being good fits.

Either way, he thinks Avaya will see further layoffs Latest News about layoffs, offset somewhat by hiring people with expertise in IP technology.

Aligned Interests

Silver Lake cofounder David Roux said his firm's interests are aligned with those of Avaya's customers and employees.

"We have full confidence in Avaya's excellent management to build on the company's remarkable technology and history," he said in a statement.

Avaya shares have been rising fairly steadily in recent weeks amid buyout rumors; the stock traded around $12 in April. The $17.50-per-share offer is a 28 percent premium over the closing price on May 25, the last trading day before reports Avaya was negotiating to sell all or part of the company.

Frenzy of Shuttle Missions to Follow Atlantis Launch

The space shuttle Atlantis is scheduled to launch this Friday after a months-long delay to repair hail damage. The takeoff will signal the beginning of a focused effort by NASA to complete the assembly of the international space station by 2010, the year the current space shuttle fleet is slated to retire. NASA officials note, however, that safety cannot be sacrificed for speed.

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AP | 06/04/07


NASA Latest News about NASA is preparing to ramp up the pace of its shuttle missions as Atlantis is poised to blast off this week in a bid to finish the assembly of the international space station by a 2010 deadline.

After a three-month delay, the year's first mission is set to launch from NASA's Kennedy Space Center in Florida at 6:38 p.m. Friday.

A half-dozen station-assembly missions are planned over the next 12 months, enough new construction to outfit the station with European and Japanese research modules.

Finishing Before Retirement

Atlantis leads the parade with a crew of seven astronauts trained to deliver and install a US$367.3 million solar-power generation module during an 11-day mission. The new module's outstretched solar panels will give the station a new look as well as gains in electrical power for the new labs.

Also, the shuttle will return to Earth with U.S. astronaut Sunita "Suni" Williams, whose 6 1/2 -month mission to the space station is drawing to a close. Her 192-day mission will be the longest flown by any woman. She will be replaced in space by American Clayton Anderson, one of the Atlantis astronauts.

"This is a pretty intense period for us," said Mike Suffredini, NASA's space station program manager. "From a concentration standpoint, this is one of our most challenging periods."

At the planned pace the space agency should finish the station's assembly by September 2010, the date established for the shuttle fleet's retirement by the White House.

Atlantis was poised for a March 15 liftoff when a hail storm pummeled the protective foam insulation that jackets the ship's external fuel tank, leaving 4,200 divots. The agency, which responded with an around-the-clock repair effort, is not expecting wiggle room in the 2010 deadline, though some experts believe NASA should have leeway to respond to hail storms, hurricanes and other events beyond its control.

"We have no plans to fly past that date at all," said NASA's Wayne Hale, the shuttle program manager.

Reason for Deadline

The cap was imposed by the White House in 2004 to free billions in funding for the shuttle's replacement, a new spacecraft Latest News about spacecraft that can launch astronauts to the moon as well as the space station.

"What's so sacrosanct about 2010?" asked Jerry Grey, director of science and technology policy for the American Institute of Aeronautics and Astronautics, the nation's largest professional organization for engineers in the two fields.

"Suppose the shuttle is still flying in 2011. Aside from not conforming exactly to the president's original timetable, what's the difference?" Grey said. "Space exploration cannot be done effectively on a tight schedule -- it's a long-term activity and should be programmed as such."

In response to the Feb. 26 hail storm, NASA repaired the foam by filling in the largest divots with liquid foam patches and spray-overs. Minor blemishes were sanded away.

The foam prevents a crust of ice from forming as the towering metal fuel tank is filled with super-cold propellants during countdown and protects the tip from destructive overheating as the ship accelerates through the Earth's atmosphere.

If unleashed in flight, pieces of ice or foam become destructive projectiles if they strike the ship's vulnerable heat shield.

The shuttle Columbia's deadly breakup in 2003 was traced to a break in the heat shielding caused by a hunk of breakaway fuel tank foam.

Can't Sacrifice Safety

NASA's planned flight rate over the next year will match the peak of six station-assembly missions launched in 2001.

That pace, the space agency acknowledges, could test safety standards NASA embraced after the Columbia tragedy.

"Clearly, having a schedule helps us organize our work," said Hale. "But we fully intend to keep all of our safety practices in place. We can't let the schedule drive us to do something dumb."

He took that message to many of the 17,000 people who work on the shuttle through "all-hands" sessions this year at major NASA installations.

"We can't take our eye off the ball," he warned them.

The agency has time to launch up to 15 flights to the space station as well as a repair mission to the Hubble Space Telescope before the shuttle is retired, said Bill Gerstenmaier, NASA's associate administrator for space operations.

Process Is Slow Going

Atlantis' mission will trace ground broken by missions in September and December, which marked a revival of station construction that ground to a halt after Columbia's loss.

In September, spacewalkers struggled with tools to remove stubborn restraint bolts, the fasteners required to immobilize 17 tons of new station hardware during the shuttle's launching. If stuck in place after installation, the launch restraint bolts would have prevented rotations of a mechanism that enabled a pair of long solar panels to track the sun while the station orbits Earth.

In December, astronauts extended the mission to add a spacewalk after having difficulties retracting a solar panel on an older power module. The 110-foot panel was jammed repeatedly by misaligned guide wires and sluggish hinges.

The Atlantis crew will deliver a solar-power module identical to the hardware launched on the September mission. The crew also will retract a solar panel identical to the one that proved troublesome in December.

"This flight is a lot like a couple of previous flights," said Jim Reilly, the astronaut who will quarterback the mission's three spacewalks. "We have to do the same things those guys did -- only better."