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Customers of U.K. mobile network operator O2 may believe that photos taken with their mobile phones and sent via MMS to friends are private. But if the recipient's phone isn't capable of receiving MMS data, as is the case with Apple's iPhone 3G, those pictures may be publicly accessible.

O2's security for this scenario is security through obscurity: It makes pictures sent via MMS viewable on non-MMS devices by posting them online with a URL that's difficult to guess.

But thanks to Google, there's no need to guess the URL. It can be found using the inurl: search query operator with mms2legacy as the argument.

The reason for this, explained Ken Simpson, CEO of anti-spam company MailChannels, is that one's Google Toolbar may be configured to pass URLs that one visits to Google for indexing. "If you run Google Toolbar, it knows pages you visit," he said.

As Google explains in its Google Toolbar privacy policy, "Certain optional Toolbar features operate by sending Google the addresses or other information about sites when you visit them. Web History, PageRank, and Safe Browsing in Enhanced Mode all work this way."

The ostensibly private O2 picture-share URLs could probably be guessed even without Google. The code that protects them is a 16-digit hexadecimal number and many people are capable of writing a script to try every code combination.

A spokesperson for O2 wasn't immediately available for comment because it was late Friday evening in the United Kingdom.

Simpson, however, believes that someone at the company is aware of the problem and has been trying to cover it up. He said that someone had posted information about the issue in the online forum for O2 customers and that the post had subsequently vanished.

Another O2 customer, however, has chimed in. "I have reported the case to several agencies in the U.K. — including the ICO, Ofcom, O2, and my excellent local MP," said someone using the name "duguk." "Hopefully something will be done about this."

Simpson said that while he hadn't come across any overly embarrassing pictures, many of the photos that are exposed show people's children.

In a post on the MailChannels blog, senior software engineer David Cawley notes that, ironically, O2 maintains a Protect Our Children Web site. "Well, a good first step would be to avoid leaking customer photos," he said.

See original article on InformationWeek.com

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Stocks of Apple's iPhone 3G continue to dwindle, and one analyst predicts a shortage will last well into August. Piper Jaffray analyst Gene Munster said Apple wasn't prepared for the demand, and it will take some time to refill the supply lines.

"I bet we'll see the problems for another two to four weeks," Munster said in an interview with ComputerWorld. "Early demand has been more than they expected [because] they knocked it out of the park on the first weekend."

With its high-speed 3G capabilities, integrated GPS, and lower price, the iPhone 3G was a highly anticipated device. Despite activation issues and long lines, Apple sold one million handsets over the launch weekend.

But this initial sales success also has depleted stock, and an earlier report this week based on the iPhone availability widget determined that the smartphone was sold in more than 21 states.

Munster said one reason for the short supply is the international availability of the new iPhone. Last year, the iPhone debuted only in the U.S. market, but the iPhone 3G was rolled out in 21 countries last Friday.

International demand for the iPhone 3G has been high, with a preorder rush bringing down a U.K. carrier's Web site.

"Sales internationally have taken inventory away from the United States," Munster said.

AT&T's 1,200 retail stores also are nearly out of iPhones, a representative for the carrier said. The wireless carrier's stores do allow customers to buy the new touch screen smartphone in advance, and return to the store for activation once it comes in.

See original article on InformationWeek.com

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The Google phone lives. Sort of. Maybe. Perhaps. Although it's still not clear that the much-ballyhooed device actually lives at Google facilities.

The latest news on the Google phone stems from some comments made by Google executives at Allen & Company's Sun Valley Conference. A reporter for The Hollywood Reporter wrote that Google executives talked of the company making "its own branded mobile phone as a replacement for the iPhone." The story then took off this week, embellished soon by a report that the Ammunition Design Group could be working with Google to build the "gPhone."

Google hasn't comment on the latest reports. But in the past, Google has dismissed reports that it planned to make its own phone. Instead, the company has promoted its Android program and it's Open Handset Alliance, which bring together several companies said to be working on Android handsets. T-Mobile, for instance, has said it plans to unveil an Android phone by the end of the year.

Many Android developers like the idea of a handset from Google that would compete with Apple's iPhone. Such a project, however, would likely have to pass muster with Google Chief Executive Eric Schmidt, who also sits on Apple's board of directors. Instead of a Google-branded handset, there's likely to be a number of Android phones from a variety of developers and cellular service providers. In a sense, they will all be Google phones and will feature Google's search engine.

The most precise sighting of the Google phone appeared in the Boston Globe last summer. Various developers and venture capitalists said they had seen the device, which was being developed at Google's Cambridge facility. Users could scroll through icons horizontally and at least one version featured a small tactile QWERTY keyboard rather than a touch screen, the reports said.

A tactile QWERTY keyboard would likely appeal to business IT types, who generally favor the precision of tactile keyboards over touch screen keyboards for e-mail usage.

See original article on InformationWeek.com

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JOHANNESBURG, South Africa - South Africa’s largest mobile phone network operator said Friday it was unable to agree on a deal in talks with an Indian telecom company.

MTN Group Ltd. cited unspecified legal and regulatory issues for the failure of its talks with Reliance Communications Ltd., India’s second largest telecommuincations company by number of subscribers.

Reliance had announced in late May that it had entered into exclusive talks with MTN Group.

“Owing to certain legal and regulatory issues, the parties are unable to conclude a transaction,” MTN Group said in a statement posted late Friday on the Web site of the Johannesburg Stock Exchange. “Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse ….”

An MTN spokeswoman contacted for comment had referred The Associated Press to the exchange Web site.

Reliance had opened talks with MTN soon after another Indian company, Bharti Airtel, said it was ending negotiations with MTN because the South African company’s proposals would have seen the Indian company becoming a subsidiary.

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STOCKHOLM (AFP) - Mobile phone maker Sony Ericsson announced Friday it was cutting 2,000 jobs worldwide after reporting an operating loss in the second quarter due to difficult market conditions and the global economic slowdown.

"We're going to cut 2,000 jobs within a year all over the world, out of 12,000 employees," spokeswoman Susanne Andersson told AFP.

Sony Ericsson posted an operating loss of two million euros (3.1 million dollars) in the second quarter, compared to a profit of 315 million euros in the same period of last year.

Net profit plunged by 97 percent to six million euros from 220 million a year earlier, while sales fell by 9.4 percent to 2.82 billion euros.

In a statement presenting its second quarter earnings, the group announced a restructuring programme aimed at cutting operating costs.

"Our target is to achieve a reduction in operating expenses of 300 million euros annually, with the full effect expected to appear within a year," Sony Ericsson chief executive Dick Komiyama said.

"The measures we are taking are aimed at becoming a faster, more agile and more cost efficient organisation that can continue to create innovative products that excite consumers," he said.

The group has for the past year been trying to develop its business on fast-growing emerging markets in order to reduce dependence on its traditional, near-saturation European outlets.

As a result it has sold more low-end phones, where prices are lower and the competition is tougher than in the high-end segment, the company said.

But Sony Ericsson has been hit by a double whammy: it is suffering from the economic slowdown in Europe, and at the same time it lacks the products and volumes necessary to make a splash in emerging markets such as China and India.

"The market in general is much, much worse than one or two years ago. And secondly the products Sony Ericsson has today are not as strong as they used to be," analyst Greger Johansson at Redeye told AFP.

"Sony Ericsson is not big enough in Western Europe and in the mid- to high-end segment. So we are seeing a slowdown in Western Europe and in this higher market," Michael Andersson, analyst at Evli Bank, said.

"That creates a problem right away because Sony Ericsson doesn't have (a strong enough) low-end or the global offering," he added.

Andersson said Finnish rival Nokia went through a similar phase several years ago, when sales of its high-end phones began to flag in Western Europe.

But it was able to compensate for the fall by strong sales in emerging markets, which made it possible to maintain strong margins.

With its late entry on emerging markets Sony Ericsson has been forced to reduce its average selling price for handsets, which fell to 116 euros from 125 euros in the second quarter last year, weighing down profits.

"It's a big problem for them because they are very dependent on the Western European market and Nokia is very dominant on the emerging markets," Andersson said.

The analysts said they saw Sony Ericsson's restructuring plan as "necessary."

At the end of June, Sony Ericsson had eight percent of the mobile phone market, compared to Nokia's 40 percent.

Sony Ericsson, which is not quoted on the stock market, was formed in 2001 through the merger of Ericsson of Sweden, world leader in mobile phone networks, and Japanese electronics giant Sony.

On the Stockholm stock exchange exchange, the Ericsson share closed up 3.58 percent at 72.30 kronor in late afternoon trading, in an overall market up by 2.64 percent.

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STOCKHOLM, Sweden - Mobile phone maker Sony Ericsson on Friday posted a 97 percent drop in second-quarter earnings and said it would slash 2,000 jobs worldwide in a move to cut costs.

The LM Ericsson and Sony Corp. joint venture blamed the earnings decline on tougher market conditions, higher development costs and negative effects from exchange rate fluctuations.

Company spokeswoman Lisa Canning in London said the company would cut 2,000 jobs “within the next 12 months” as part of an effort to reduce operational costs by 300 million euros ($470 million) per year.

In a statement, Sony Ericsson President Hideki Komiyama said his company estimates restructuring charges to “be of the same magnitude as our reduction in operating expenses.”

Net profit in the quarter fell to 6 million euros ($9.5 million), down sharply from 220 million euros in the same period a year ago.

Sales were down about 9 percent to 2.8 billion ($4.4 million), from 3.1 million euros in the second quarter in 2007.

The company had warned already last month that it expected to just break even before taxes in the quarter because of tougher competition and a continued slowing market growth in its mid- to high-end phones.

It was the second profit warning this year from Sony Ericsson, which usually ranks fourth or fifth among the world’s biggest mobile phone makers.

“Challenging market conditions are expected to prevail for Sony Ericsson for at least the rest of 2008,” the company said, “in particular for the third quarter.”

Sony Ericsson’s results were in stark contrast to the better-than-expected earnings report by market leader Nokia Corp. on Thursday. Nokia, which makes four of 10 handsets sold worldwide, said it expected the global market for cell phones to grow by 10 percent or more in 2008, upgrading an earlier estimate.

Sony Ericsson forecast the global market to grow at around 10 percent but with a continued decline in average selling prices.

The average selling price for Sony Ericsson handsets fell in the second quarter to 116 euros ($185), from 125 euros, because of a wider range of cheaper phones in its product portfolio and price competition on more expensive phones.

The company said its gross margin dropped to 23.1 percent, from 29.6 percent in the second quarter of 2007, while research and development costs jumped by 22 percent to 344 million euros ($545 million).

Shipped units reached 24.4 million in the quarter, Sony Ericsson said.

___

On the Net:

http://www.sonyericsson.com

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Opera Mobile was launched in 2000 as the first mobile browser to bring the full Web to the small mobile screen. Since 2004 it has been installed on 100 million phones. Opera Mobile has pioneered and set the standard in mobile browsing, supporting the latest technologies and receiving industry acclaim. The first beta of Opera Mobile 9.5 comes outfitted with added performance, a new UI and the developer tool Opera Dragonfly. Currently the beta is for Windows Mobile PocketPC 5/6 devices only. I plan to give Opera 9.5 a try. The free download is here: http://www.opera.com/products/mobile/download/
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HELSINKI (Reuters) - Nokia (NOK1V.HE) has reached high volumes in single-chip mobile phone sales, the company's head was quoted in a newspaper as saying on Friday.

Single-chip technology is used to make ultra-low-cost phones, aimed at developing markets.

"We now have several single-chip phones in the market. It is one of the key factors in our cost competitiveness in cheaper phones," Nokia Chief Executive Olli-Pekka Kallasvuo told Finnish daily Helsingin Sanomat.

"We are already talking about volumes of tens of millions."

In May, chipmaker Infineon (IFXGn.DE) said a project to supply Nokia with single chips for its ultra-low-cost phones had been delayed.

But Nokia has said its development of the phones is on target, as it has multiple suppliers for the project, including Texas Instruments (TXN.N).

(Reporting by Sami Torma)

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Anthropology is an age-old, at times complex discipline, and like many others, it suffers from its fair share of in-fighting and disagreement. It's also a discipline shrouded in mystery. Few people seem to know what anthropology really is or what anthropologists really do, and a general unwillingness to ask simply fuels the mystery further. Few people ever question, for example, what a discipline better known for poking around with dinosaur bones is doing playing with mobile phones or other high-tech gadgets. In today's high-tech world, anthropologists are as visible as anyone. In some projects, they're all that's visible.

The public face of anthropology likely sits somewhere close to an Indiana Jones-type character, a dashing figure in khaki poking around with ancient relics while they try to unpick ancient puzzles and mysteries, or a bearded old man working with a leather-bound notepad in a dusty, dimly lit, inaccessible room at the back of a museum building. If people were to be believed, anthropologists would be studying everything from human remains to dinosaur bones, old pots and pans, ants and roads. Yes, some people even think anthropologists study roads. Is there even such a discipline?

Despite the mystery, in recent years, anthropology has witnessed something of a mini-renaissance. As our lives become exposed to more and more technology, and companies become more and more interested in how technology affects us and how we interface with it, anthropologists have found themselves in increasing demand. When Genevieve Bell turned her back on academia and started working with Intel in the late 1990s, she was accused of "selling out." Today, anthropologists jump at the chance to help influence future innovation and, for many, working in the technology industry has become THE thing to do.

So, if anthropology isn't the study of ants or roads, what is it? Generally described as "the scientific study of the origin; the behavior; and the physical, social, and cultural development of humans," anthropology is distinguished from other social sciences – such as sociology – by its emphasis on what's called "cultural relativity," the principle that an individual's beliefs and activities should be interpreted in terms of his or her own culture, not that of the anthropologist. Anthropology also offers an in-depth examination of context – the social and physical conditions under which people live – and a focus on cross-cultural comparison. To you and me, that's comparing one culture to another. In short, where a sociologist might put together a questionnaire to understand what people think of an object, an anthropologist would immerse themselves in the subject and try to understand it from "within."

Anthropology has a number of subfields, and, yes, one of those does involve poking around with old bones and relics. But, for me, development anthropology has always been the most interesting subfield because of the role it plays in the third-world development arena. As a discipline, it was borne out of severe criticism of the general development effort, with anthropologists regularly pointing out the failure of many agencies to analyze the consequences of their projects on a wider, human scale. Sadly, not a huge amount has changed since the 1970s, making development anthropology as relevant today as it has ever been. Many academics – and practitioners – argue that anthropology should be a key component of the development process. In reality, in some projects it is, and in others it isn't.

It's widely recognized that projects can succeed or fail on the realization of their relative impacts on target communities, and development anthropology is seen as an increasingly important element in determining these positive and negative impacts. In the ICT sector – particularly within emerging market divisions – it is now not uncommon to find anthropologists working within the corridors of high-tech companies. Intel and Nokia are two such examples. Just as large development projects can fail if agencies fail to understand their target communities, commercial products can fail if companies fail to understand the very same people. In this case, these people go by a different name – customers.

The explosive growth of mobile-phone ownership in the developing world is largely down to a vibrant recycling market and the arrival of cheap US$20 phones, but is also down, in part, to the efforts of forward-thinking mobile-phone manufacturers. Anthropologists working for companies such as Nokia spend increasing amounts of time trying to understand what people living at the so-called "bottom of the pyramid" might want from a phone. Mobile phones with flashlights are just one example of a product that can emerge from this brand of user-centric design. Others include mobile phones with multiple phone books, which allow more than one person to share a single phone, a practice largely unheard of in many developed markets.

My first taste of anthropology came a little by accident, primarily down to Sussex University's policy of students having to select a second degree subject to go with their development studies option (this was my key interest back in 1996). Social anthropology was one choice, and one that looked slightly more interesting than geography, Spanish or French (not that there's anything wrong with those subjects). During the course of my degree, I formed many key ideas and opinions around central pieces of work on the appropriate technology movement and the practical role of anthropology, particularly in global conservation and development work.

It was not until three or four years later that the importance – and relevance – of anthropology became apparent to me. It has emerged as a central pillar in my work and is interestingly the area that raises the most eyebrows among delegates at conferences. But it's not just about the degree. Many ideas, values and opinions were cemented during numerous spells living and working in developing countries over a 15-year period. Hospital and school building projects in Uganda and Zambia, biodiversity survey work in Uganda, primate conservation in Nigeria and Cameroon, civil society work in Zimbabwe, and spells of ICT-related research in South Africa and Mozambique have all combined to give me a real sense of the reality on the ground for many people living in the developing world. This insight, I believe, is crucial, even if it has taken 15 years to gain.

Today, handset giants such as Nokia and Motorola believe that mobile devices will "close the digital divide in a way the PC never could." Industry bodies such as the GSM Association run their own "Bridging the Digital Divide" initiatives, and international development agencies pump hundreds of millions of dollars into economic, health and educational initiatives based around mobile phones and mobile technology.

In order for the mobile phone to reach its full potential, we're going to need to understand what people in developing countries need from their mobile devices and how they can be applied in a way that positively impacts their lives. Sounds like the perfect job for an anthropologist to me.

Ken Banks devotes himself to the application of mobile technology for positive social and environmental change in the developing world, and has spent the last 15 years working on projects in Africa. Recently, his research resulted in the development of FrontlineSMS, a field communication system designed to empower grassroots nonprofit organizations. Ken graduated from Sussex University with honors in social anthropology with development studies and currently divides his time between Cambridge (UK) and Stanford University in California on a MacArthur Foundation-funded Fellowship. Further details of Ken's wider work are available on his <a src="http://www.kiwanja.net" target="_blank">Web site</a>.

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BRUSSELS (AFP) - The European Commission warned children and teenagers on Thursday to beware of mobile telephone ring-tone scams after hundreds of Internet sites were found to be charging too much for the services.

The warning came after a probe found that 80 percent of the more than 550 Internet sites in the 27 EU nations, Norway and Iceland, could be breaching EU consumer laws, half of them targeting young people.

"Far too many people are falling victim to costly surprises from mysterious charges, fees and ring-tone subscriptions they learn about for the first time when they see their mobile phone bill," EU Consumer Commissioner Meglena Kuneva said in a statement.

"There will be Europe wide enforcement action to track down each of these traders. But we need to get a clear message out particularly to teenagers and children: be on your guard. It's all about the small print," she said.

Sales of European ring-tones were estimated to total 691 million euros in 2007, accounting for some 29 percent of all "mobile content" sold for Europe's roughly half a billion mobile phones.

The commission said that seven countries — Norway, Finland, Sweden, Latvia, Iceland, Romania, Greece — will publish the names of the websites which they found to have irregularities.

Breaches included unclear price information, where prices were incomplete or did not include taxes, or contracts that did not make customers aware that they were signing up to a subscription.

Many websites did not provide some of the required contact information about the trader, while others had misleading information or details hidden in small print, the commission said.

Young people were targeted with advertising for ring-tones and wallpapers by using cartoon or television characters.

Brussels said that companies would be contacted by national authorities and asked to clarify or correct the problems. They face fines or closure of the websites if they fail to do so.

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BRUSSELS, Belgium - Eight out of 10 Web sites selling mobile phone ring tones and graphics are tricking people with hidden fees or false advertising, the EU’s consumer affairs commissioner said Thursday.

The commissioner, Meglena Kuneva, said a Europe-wide investigation found shoddy sales practices such as hiding the true cost of downloads or not telling customers they are signing up for a subscription.

“It’s clear that consumers have been ripped off,” she said.

She said she is telling national governments to go after crooked traders.

Ring tones — usually aimed at teenagers — make up almost a third of mobile content in Europe, racking up 691 million euros ($1.1 billion) in sales last year, the EU said.

The European Commission checked some 500 Web sites, finding that 80 percent broke consumer advertising rules. It took action after receiving complaints from shoppers unhappy at being forced into subscriptions or extra charges.

“To be safe buying these services, check the fine print every time and make sure you are not signing up for more than you bargained for,” Kuneva warned.

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HELSINKI (AFP) - Nokia, the world's leading mobile phone maker, reported on Thursday an 8.0-percent rise in underlying second-quarter net profit and its shares soared 9.0-percent despite a heavy hit for closing its Bochum plant in Germany.

Nokia also announced that its market share had risen to 40 percent.

Net profit for the April-June period, excluding one-off items, rose 8.0 percent to 1.37 billion euros (2.17 billion dollars) from the same quarter a year ago, while sales grew four percent to 13.15 billion euros, the company said in a statement.

Including one-off items net profit was down by 61 percent to 1.1 billion euros from 2.8 billion a year earlier. The non-recurring items included 259 million euros linked to the closure of the Bochum plant.

Operating profit in the second quarter, excluding one-offs, rose meanwhile by 39 percent to 1.93 billion euros.

In April-June the Finnish company sold 122 million mobile phones and its market share rose to 40 percent, compared to 38 percent a year ago, and up from 39 percent in the first quarter of 2008.

The group's biggest market is now the Asia-Pacific region, where it sold 36.4 million phones, a rise of 42.2 percent from a year ago and ahead of Europe where it sold 27.1 million handsets.

"Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell in our device business," Nokia's chief executive Olli-Pekka Kallasvuo said in the earnings statement.

Nokia said it expected its market share in the third quarter to stay on the same level as in April-June, while it continued to target higher market share for 2008.

Analyst Jari Honko from eQ Bank told AFP strong sales volumes indicated the global economic turmoil had not stopped people from buying new cell phones.

Nokia upgraded its forecast for the mobile device industry's annual sales growth and said it saw sales increasing more than 10 percent.

"Many research institutes have cut their forecasts, but Nokia is hiking its estimates. It is a positive signal on mobile phone markets," Pohjola Bank analyst Hannu Rauhala said.

The company saw its average selling price for handsets continue to fall. In April-June its phones on average sold for 74 euros each, down from 79 euros in the first quarter.

Analysts said the figure was a slight disappointment, which could partly be explained by the weakening dollar.

After the results were released, Nokia shares were up almost 9.0 percent to 17.17 euros on the Helsinki stock market, which was 3.8 percent higher.

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HELSINKI, Finland - The world’s No. 1 mobile phone maker Nokia Corp. on Thursday said profit fell 61 percent in the second quarter from the same period a year ago, when the company booked a large gain from its network joint venture with Siemens AG.

In an earnings report that came in above expectations, Nokia slightly upgraded its forecast for the global handset market in 2008, and said it expected to keep growing its slice of the pie. Four in 10 mobile phones sold worldwide are now made by the company based in Espoo, Finland.

Nokia’s profit was $1.75 billion, or 46 cents per share, down from $4.49 billion, or $1.14 per share, a year earlier.

Sales rose 4 percent to $20.87 billion.

The 2007 second-quarter result included a $2.98 billion gain from the formation of Nokia Siemens Networks, a joint venture with Germany’s Siemens AG.

Excluding special items, Nokia said its profit rose 8 percent to $2.18 billion.

Analysts expected earnings of 56 cents per share on $20.05 billion in revenue, on average, according to Thomson Financial.

“Nokia’s profitability was a nice surprise,” Glitnir Bank analyst Michael Schroeder said, adding that profit margins in both the cell phone and the network divisions were higher than expected.

The Finnish company said its share of the global market for handsets grew to 40 percent, from 38 percent in the second quarter of 2007. It also upgraded its forecast for the global handset market, saying mobile device volumes could grow more than its previous estimate of 10 percent.

“Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell in our device business,” Nokia Chief Executive Olli-Pekka Kallasvuo said in a statement.

However, the closely watched average selling price of Nokia phones continued to fall because of higher volumes of cheaper phones sold in emerging markets and a negative impact of the weak dollar, Nokia said.

The average price for a Nokia handset was $117, down from $125 in the first quarter of the year and $143 in the second quarter of 2007.

In terms of volume, company had its biggest sales growth in Asia, Latin America, the Middle East and Africa. Sales of Nokia phones were up 10 percent in North America and flat in Europe.

Nokia’s products range from no-frills cell phones that are selling in high volumes in emerging markets to more pricey smartphones equipped with GPS navigation and music players. The company employees about 117,000 people worldwide.

Nokia’s closest competitors in the mobile phone industry include Samsung Electronics Co. of South Korea, Motorola Inc. and Sony Ericsson, a joint venture between Japan’s Sony Corp. and Sweden’s LM Ericsson.

___

On the Net:

Company Web site: http://www.nokia.com

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HELSINKI (Reuters) - Nokia (NOK1V.HE), the world's biggest maker of mobile phones, reported April-June results roughly in line with forecasts, and was upbeat on the rest of 2008, easing fears that economic woes were hitting phone demand.

Nokia shares in Helsinki rose 8 percent on the announcement to 17.05 euros, though they are still 35 percent down this year.

Nokia slightly raised its forecast for the mobile phone industry, saying volume would grow 10 percent or more in 2008, having previously forecast growth of about 10 percent.

"Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell," Nokia Chief Executive Olli-Pekka Kallasvuo said in a statement on Thursday.

The company said earnings per share for the three months, minus special items, rose to 0.36 euros from 0.32 euros in the same period of 2007, compared with an average forecast of 0.37 euros in a Reuters poll of 31 analysts.

The cellphone industry has been speculating about the effect of a global economic slowdown since Sony Ericsson (6758.T) (ERICb.ST) shocked the market with June's profit warning due to soft European demand.

"Slight increase in guidance … is really showing that Nokia is being able to weather reasonably well the economic problems. These are present particularly in developed markets, and that is why you have a relief rally in the share," said Nomura analyst Richard Windsor.

Nokia's average selling price for phones in the second quarter disappointed the market, however, falling to 74 euros from 79 euros in the previous quarter. Analysts had on average expected 77 euros.

Nokia sold 122 million phones in the period, beating the average forecast of 120 million in the poll of analysts.

Sony Ericsson reports on Friday, while LG Electronics (066570.KS) will report on July 21, Samsung (005930.KS) on July 25 and Motorola (MOT.N) on July 31.

Nokia said its network gear making venture Nokia Siemens Networks (NSN.UL) reached an underlying operating profit margin of 6.7 percent in the quarter. (Reporting by Tarmo Virki; Editing by Will Waterman)

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BRUSSELS (Reuters) - The European Union's consumer chief on Thursday launched a crackdown on websites offering mobile phone services such as ringtones after a probe found most were ripping people off, notably teenagers.

An initial investigation by EU Consumer Commissioner Meglena Kuneva into 500 websites providing ringtones, wallpapers, news feeds or videogames worth hundreds of millions of euros found that 80 percent were "misleading" consumers.

"Far too many people are falling victim to costly surprises from mysterious charges, fees and ringtone subscriptions they learn about for the first time when they see their mobile phone bill," Kuneva told a news conference.

"We need to get a clear message out particularly to teenagers and children — be on your guard. It's all about the smallprint … make sure you are not signing up for more than you bargained for."

Failure by companies such as Jamba, jointly owned by News Corp (NWSa.N) and VeriSign (VRSN.O), Vodafone (VOD.L), Aspiro (IRX.ST) and Wiking Mobile to address Kuneva's concerns could lead to hefty fines or closure of their sites.

The value of ringtone sales in 2007 across the 27-member bloc, Norway and Iceland was estimated to be worth 691 million euros ($1.10 billion), the EU executive said, with ringtones estimated to make up 29 percent of the overall "content" market of 495 million mobile phones in Europe.

Among the irregularities found during the probe, carried out in June, were:

- unclear price information where prices were incomplete, did not include taxes, or where customers were unaware that they were signing up to a subscription.

- large numbers of websites did not provide some of the required contact information about the trader.

- "hidden charges" where key information was hidden in very small print or hard to find on a website or the word "free" was used to mislead consumers into a long-term contract.

Britain and the Czech Republic had the highest number of checked websites with 43 sites probed. Forty Czech operators will face further action while 39 British websites were found to have faults.

In 10 other member states — Denmark, Spain, Cyprus, Latvia, Lithuania, Hungary, Malta, Portugal, Finland and Sweden — all websites will also face follow-up action.

(Editing by David Cowell)

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The iPhone 3G was released last week, and our forums have been buzzing about it ever since. But I know that not everyone is into iPhone madness, so I added a non-iPhone story this week, too.

Our Test Labs found that he battery life on the iPhone 3G is mediocre–but nonetheless, it still beats its AT&T rivals. Read our tell us what you think about the results–and the new finding that some RIM BlackBerrys run longer.

The iPhone may have lots of great new features, but there are several that we think it still lacks. what else it's missing.

What's the greatest keyboard of all time? Many think it's the IBM Model M. Check out our join the discussion on this keyboard and other reader favorites.

This week's most recommended stories include great keyboards, iPhone battery life, and buying home networking equipment. To vote for your own favorites, click one of the thumbs-up icons on an article's page.

We end with product reviews from users like you. Have you gotten any new high-tech goodies recently? Let us and your fellow PC World readers know what you think of them. Go to PCW Shop & Compare to search for your gear and add a review.

Note: To use our interactive features, such as adding comments to discussions and contributing your own product reviews, you must be signed in to the PC World Web site. (Not registered? You can sign up online.) However, you can view the discussion threads and poll results without being signed in.

3G iPhone's Battery Life Beats AT&T Rivals–But EvDO BlackBerrys Run Longer

ekrub says: Sure, but which of the phones have a replaceable battery and/or the option for a stronger battery? With my Treo, I could opt for a stronger battery and take a spare when I traveled. I love my iPhone and (now) iPhone 3G. I'll just have to keep a portable charger in my bag.

Chabig says: I don't think you'll ever see a replaceable battery in an iPod or iPhone. It would make the device too big and it would reduce the battery life–that's right, battery life is worse with a removable battery. However, you can be sure that Apple will continue to push the chip makers for lower-power chips.

Pfhat says: The complete omission of 3G BlackBerrys make the conclusion that the 3G iPhone is better than all its rivals entirely invalid and unproven.

Yardena says: I will be happy to include battery life for a 3G BlackBerry when we get one. The Bold isn't out yet.

Read the posts in this thread and contribute your own opinion.

10 Things the 3G iPhone is Still Missing

Dabbler says: I would have thought a replaceable battery would have been top on the list. I'm amazed that people will spend $200 on a phone they will have to spend another $100 on to replace the battery when it no longer holds a full charge. And what if your battery runs out midday?? I carry a spare for my Motorola just in case so I can always stay in contact with my clients.

Feldzmo says: Everybody seems to be forgetting the one app that would be the true killer app for the iPhone, namely dictation software–software that would let a user dictate an outgoing e-mail that could be retrieved on a home computer, then to be printed or filed.

Davesmall says: What's missing is the ability to use the iPhone as a 3G modem for connecting a laptop. This has been number one on my list of most wanted features since before the release of the first iPhone. Once in a while I need Internet connectivity when I'm out of range and don't have a Wi-Fi hotspot. That doesn't happen often enough to justify yet another AT&T Data Plan and separate 3G card for my MacBook Pro.

Rub114 says: This iPhone is a lot worse than the old one! I have had it for one day and I am about to go return it. It stays connected to 3G in my apartment, where I get no bars–and doesn't switch to EDGE. I cannot receive or make any calls–unless I manually disconnect 3G. Absolute rubbish!

Read the posts in this thread and contribute your own opinion.

Inside the World's Greatest Keyboard

dhood23 says: I've had my Model M for at least 10 years–got it secondhand. Although mine is only a shadow of the original (mine was manufactured in 1994), it's still, hands down, the best keyboard I've ever owned. I also have two backups in case this one ever breaks down. I've found that other keyboards stress the tendons in my wrist after long usage. This is the only keyboard that I can type on for extended periods without my wrists tiring.

Marcmandev says: Yeah, it's the click and feel that makes these keyboards so desirable. A buddy recently called me and said he had purchased a pickup box full of old computers. My first question: any IBM keyboards? I found one Model M IBM keyboard and a whole bunch of off-brand, nearly identical knockoffs. It was heaven on earth. Curiously, nearly every one of those keyboards had little notes taped to the underside. Each note read: "lower case– password." Pure nostalgia.

Bluefalconloyd says: The clicking feel of the older keyboards might be desirable to some…but to me it's a pain to hear. I type so fast it just sounds like a machine gun going off when typing with one of those keyboards.

Dermatea says: The IBM Model M is a good keyboard. The construction is of very high quality, but to me, the feel is just too ancient, and the click is excessively loud. It's also not good for playing games due to the nature of the keys (at least for me). Furthermore, it clashes with my other hardware, which is nowhere near as old. It's a bit on the ugly side, (as is nearly all beige-colored hardware) and its bulk is obtrusive.

Read the posts in this thread and contribute your own opinion.

Top 5 Most Recommended

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Just a few days after its launch, a group from Brazil has managed to unlock Apple's iPhone 3G to operate on almost any GSM carrier.

On its Web site, DesbloqueioBr posted a video showing the unlocked handset making a phone call.

In an interview with gadget blog Gizmodo, developer Breno MacMasi said the unlocking process involved modifying the phone's SIM hardware so the International Mobile Subscriber Identity can be overwritten.

The procedure allows iPhone 3G users to makes calls with any compatible GSM carrier, not just ones with which Apple has an exclusive agreement. But users of an unlocked phone wouldn't be guaranteed to have 3G-network access, and Apple could potentially wipe out the hack with a software update.

The company plans to charge between $250 and $375 to unlock a phone, according to reports.

Separately, a group of hackers known as the iPhone Dev Team said they have successfully removed Apple's software controls that prohibit users from installing independent applications. The team posted a video of this "jailbroken" phone, and the team claims users will be able to run Apple-approved applications side-by-side with independent ones.

While there have been 10 million downloads from Apple's App Store since the launch last week, some developers and customers may want to jailbreak their phones to bypass Apple's application restrictions. For example, Apple explicitly prohibits applications that run in the background.

The team said it will be offering the jailbreaking software for free soon, and the final version will also let users use their iPhones on any compatible network.

See original article on InformationWeek.com

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