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Archive for the Category ‘Tech’

Dell’s enterprise challenge remains after 3Par

Dell’s enterprise challenge remains after 3Par

SEATTLE (AP) — Dell Inc. doesn’t have to start over in its quest to become a significant purveyor of technology for businesses after losing a multibillion dollar bidding contest for an obscure data-storage maker. But it won’t be easy, either, for Dell to shake its “Dude, you’re getting a Dell” image and move into the more profitable business of selling powerful behind-the-scenes technology to other companies. Dell, which launched the bidding contest for 3Par Inc. on Aug. 16, conceded defeat Thursday and said it won’t match the latest offer from its archrival, Hewlett-Packard Co. HP raised the stakes to $33 per share, or about $2.07 billion – 83 percent above Dell’s first offer and more than three times what 3Par stock was trading at then. Dell’s latest offer had been a dollar per share less, or about $2 billion. Dell was hoping to buy 3Par so it could diversify its business more quickly. Dell’s made-to-order computer business helped make PCs inexpensive and ubiquitous, but other companies including HP found ways to build even cheaper machines using contract manufacturers. Although HP was able to expand beyond the business of selling computers, Dell has remained very much a computer company, with more than half its revenue coming from PCs last fiscal year. Rising component costs and the PC industry’s race to rock-bottom prices, accelerated by the rise of cheap netbooks from competitors such as Acer Inc., combined to sap much of the profit out of Dell’s core business. Through a string of acquisitions, Dell has raced to follow IBM Corp., HP and other high-tech companies into the more lucrative business of selling data-center hardware and consulting services. And while its servers do not generate as much revenue as its PC business, Dell is a leading maker of x86 servers, a low-end product for companies and data centers. Those servers are seeing a surge of demand as improvements in technology make them increasingly competitive with more expensive servers. In the second quarter, Dell was the second-largest maker of server computers by number shipped, according to Gartner Inc. But Dell’s ambitions have often been met with skepticism because of its lower-end focus, and because it started branching out later than its competitors. In the meantime, the market has grown more crowded; database software maker Oracle Corp. began selling servers after acquiring Sun Microsystems in January, and networking equipment king Cisco Systems Inc. started to build its own servers last year. Even Dell’s biggest acquisition to date, Perot Systems, didn’t carry the weight Dell might have hoped, Forrester Research analyst Andrew Reichman said. The large technology-consulting business, which Dell bought last fall for $3.9 billion, isn’t influential enough “to really move the needle as much as Dell would need to be on an equal footing with HP and IBM,” Reichman said. “People see them (Dell) as box-pushers,” he said in a recent interview. Dell defends its strategy of staying away from huge storage or server systems and says it sees more value in selling building block servers and storage appliances that customers can link together when they need to grow. “For those customers who have bought from us, who are our customers, even the largest ones are very satisfied with our ability to solve their data-center needs and really stick with us,” said Praveen Asthana, Dell’s vice president of strategy for its enterprise technology segment. But Dell, like its competitors, is eyeing cloud computing, a massive shift just under way in data-center technology, as the next area of rapid growth and sweeter profits. To take advantage of it, Dell needs to beef up its product line and set itself apart from the competition. Dell could have used 3Par, which makes the sort of massive, high-end systems that Dell had stayed away from. But that isn’t the only option, especially at such a high price, said Morningstar analyst Michael Holt. Dell can still consider other storage providers, companies that make data-center management software or makers of networking equipment, he said. Increasingly, companies aren’t buying their own computer servers for certain tasks anymore. Instead, they’re paying to have software they would have stored on those machines delivered to them over the Internet. Cloud computing is attractive to Dell and the others because the systems are designed to be shared by multiple customers, which spreads out the cost of operating pricey equipment. Servers and storage computers need to ramp up or scale down quickly based on demand to give all the customers the same high level of service. Storage machines from 3Par are made for that kind of system. Dell, HP and others are trying to decide how many pieces of the cloud puzzle they need to own, and how many they can offer through partnerships. All are trying to make their data-center solutions more flexible and less expensive, and make it easier for customers to get new programs running. Owning the entire range of products might make it faster to get a customer up and running, but it might mean some parts are not the best of breed, said Adrian O’Connell, an analyst for Gartner Inc. Every company will see the trade-offs differently. For Dell, O’Connell doesn’t believe 3Par would have been a critical piece. Dell’s bigger challenge, he said, is to come up with a unique vision for the entire data-center structure. Dell also needs to train its sales staff to sell that vision to high-level technology executives. Gaining their trust takes time, he said. “If you’re an IBM or an HP or a Sun/Oracle, you’ve got a heritage of many, many years of selling mission-critical systems into those very large customer environments,” O’Connell said. “Dell has to prove it’s got a right to be there.” ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

HP vs Dell: the showdown that ended in spectacle

HP vs Dell: the showdown that ended in spectacle

SAN FRANCISCO (AP) — The showdown over 3Par Inc. that ended Thursday was a puzzling spectacle. It pitted two of the world’s biggest technology companies against each other for control of a company that was obscure outside of technology circles and flat-out unloved on Wall Street, with a stock that was stuck around $10 for a year and a half. 3Par, which was founded 11 years ago by former Sun Microsystems managers, was seen as a takeover candidate well before Dell Inc. and Hewlett-Packard Co. started bidding on it in mid-August. The company’s uneven financial performance dampened investors’ enthusiasm despite the fact it is in the lucrative market for “virtualized storage,” which is an important technology for companies that sell services over the Internet. What wasn’t anticipated was the ferocity of the wrestling match for a company that was seen as only tangential to HP’s and Dell’s core businesses. The bidding contest revealed more about HP and Dell and the changing technology landscape than it did about the innovations that 3Par brings to the table. HP won 3Par with an offer of $2.07 billion, or $33 per share, which is more than three times what 3Par’s stock was trading at when rival Dell Inc. made its first offer Aug. 16. Dell said Thursday it is walking away from the negotiations after a final bid of $2 billion, or $32 per share. Many analysts were surprised the bidding went so high. “At this price, it’s a little ridiculous,” said Jayson Noland, an analyst with Robert W. Baird & Co. “To me, it tells you how far behind HP and Dell are in storage, not necessarily how incredible an asset 3Par is.” Technologies from 3Par will be part of HP’s expansion beyond personal computers and printer ink. HP’s former CEO, Mark Hurd, aggressively pursued that expansion, and many industry analysts saw HP’s intensity in pursuing 3Par as evidence that the company wanted to prove that it can still close big deals. “They’re sending a clear message that, ‘We’re in transition but we’re not missing a step,’” said Nina Buik, chief marketing officer for Connect Worldwide, an organization of more than 50,000 customers of HP’s business-technology products. “They’re wanting to instill confidence, and mission accomplished.” HP’s tender offer is scheduled to expire on Sept. 24, and the acquisition is expected to close by the end of this year. Before Dell made its first offer, 3Par stock was trading at just under $10 per share. It closed Thursday’s regular trading session at $32.88 per share, just below HP’s latest offer price. Meanwhile, HP’s stock during that time has fallen 2 percent to close at $39.68 Thursday. Dell’s stock has risen 3 percent to $12.36. 3Par is based in Fremont, Calif., and employs 670 people. It went public three years ago at $14 per share. HP is based in Palo Alto, Calif., and has about 300,000 employees. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

Verizon to sell smart phones for prepaid service

Verizon to sell smart phones for prepaid service

NEW YORK (AP) — Verizon Wireless on Thursday announced it’s opening up access to smart phones for customers who prepay for service, such as people with poor credit and those who don’t want to be tied down by long-term contracts. Prepaid service has long been the domain of low-end phones, but such companies as Sprint Nextel Corp. and Leap Wireless International Inc. have recently introduced smart phones for their Boost, Virgin Mobile and Cricket brands. Verizon Wireless, the country’s largest cellular carrier, said that it started to sell smart phones for prepaid service in its stores on Thursday and will start selling them online on Sept. 28. The phones will be more expensive than those offered to customers on regular “postpaid” plans, usually associated with two-year contracts. For example, Verizon charges a prepaying customer $215 for a BlackBerry Curve 8530. It’s available for $20 with a two-year contract. A Motorola Droid X, which has a big touch screen, costs $395 for prepaid service and $200 with a contract. Like other carriers, Verizon discounts the price of phones with two-year contracts, figuring that it will make back the discount in monthly service fees. With prepaid service, the customer can cancel at any time. Verizon is also introducing a data plan with unlimited access for $30 per month, the same price customers under contract pay. The data plan won’t be mandatory, but to get it, customers will have to get a monthly prepaid calling plan. These start at $45 for 450 minutes of calling, with no text messages included. They cost $5 per month more than equivalent contract-based plans. Prepaid service is seen as one of the remaining growth areas for wireless carriers, because people who have good credit all have phones already. AT&T Inc., the second-largest carrier and Verizon’s chief competitor, doesn’t sell smart phones for prepaid service, and it doesn’t offer a monthly prepaid data plan. However, customers with good credit can buy phones at an unsubsidized price roughly $400 above the contract price and go month-to-month on postpaid plans, without a contract. Verizon Wireless is a joint venture of New York-based Verizon Communications Inc. and Vodafone Group PLC of Britain. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

AP Interview: UN telecoms chief urges data sharing

AP Interview: UN telecoms chief urges data sharing

LONDON (AP) — BlackBerry’s Canadian manufacturer should give law enforcement agencies around the world access to its customer data, the U.N. telecommunications chief said, adding that governments have legitimate security concerns that should not be ignored. Hamadoun Toure, secretary-general of the International Telecommunication Union, said officials fighting terrorism had the right to demand access to users’ information from the maker of the BlackBerry – Research in Motion Ltd. “Those are genuine requests,” he told The Associated Press in an interview Wednesday. “There is a need for cooperation between governments and the private sector on security issues.” RIM is embroiled in parallel disputes with at least five countries – India, Indonesia, Lebanon, Saudi Arabia, and the United Arab Emirates – over concerns that the smart phone’s powerful encryption technology could be used as a cover for terrorism or criminal activity. Civil libertarians have argued that the controversy is fueled by authoritarian governments’ frustration over their inability to eavesdrop on BlackBerry-using citizens. Blackberry service is designed from the ground up for secure communications. RIM says it complies with all legal requests for data – such as phone logs – even it is unable to provide anyone with the text of e-mails sent by people using its corporate service. Governments in the U.S. and Europe have largely made their peace with encryption technology, but officials in Asia and the Middle East have demanded that RIM modify its practices to allow them wholesale access to BlackBerry e-mails as they’re being transmitted. On Thursday, Indian officials widened their security crackdown, asking all companies that provide encrypted communications – not just RIM – to install servers in the country to make it easier for the government to obtain users’ data. That could potentially draw companies such as Skype and Google into the flap. RIM has effectively thrown up its hands, saying the way the Blackberry system is designed prevents anyone except its clients from decrypting communications. The impasse has sent the company’s share price plummeting. A company representative in London did not immediately respond Thursday to a request for comment on Toure’s remarks. Toure’s organization is responsible for coordinating the use of the global radio spectrum, promoting international cooperation in assigning satellite orbits, and establishing standards for the telecommunications industry. The little-known body also serves as a global forum for discussion of cutting-edge communications issues. The agency has no independent regulatory power, but Toure’s comments are a barometer of sentiment among the agency’s 192 member states, which are expected to re-elect him to a second term later this year. Toure was in the British capital to drum up private investment for an effort to spread broadband coverage across the globe. He has argued that hooking developing countries up with high-speed Internet access can have huge additional benefits, boosting education, business, health care and other issues. Toure has gathered business and political leaders to form a Broadband Commission for Digital Development, a high-profile group devoted to lobbying governments for broadband-friendly regulations. The commission delivers its report to the United Nations later this month. In the interview, Toure also fielded questions about network neutrality and allegations of Iranian interference with foreign satellite broadcasts. Toure declined to explicitly say whether he backed network neutrality, the principle that Internet service providers should treat all Internet traffic equally. Some service providers argue that, having invested billions on their networks, they should be allowed to manage Internet traffic as they see fit – for example by giving priority to their own content, preventing applications such as file-sharing from hogging bandwidth, or creating premium services that charge more for faster access. Toure expressed opposition to attempts to create a two-tier Internet with fast and slow lanes, telling companies they should focus on “ensuring that the best quality signal is offered to anyone, including your competitors.” He also said talks between satellite provider Eutelstat and the Iranian government were ongoing following allegations that Iran had jammed foreign signals following its disputed presidential vote last year. Western media said Tehran had obstructed their broadcasts to choke off coverage of the unrest that followed President Mahmoud Ahmedinejad’s re-election to a second term, and the European Union has taken its case to Toure. Toure said the parties have been in talks at his office in Geneva as recently as Monday, but would not reveal any details. “We don’t see it as a big crisis,” he said. “It will be resolved.” — Online: http://www.itu.int/ ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

Judge punishes Michigan juror for Facebook post

Judge punishes Michigan juror for Facebook post

MOUNT CLEMENS, Mich. (AP) — A Detroit-area woman who was removed from a jury for commenting about the ongoing case on Facebook has a longer writing task ahead: a five-page essay about the constitutional right to a fair trial. A judge ordered the essay Thursday for Hadley Jons, three weeks after she wrote on Facebook that it was “gonna be fun to tell the defendant they’re GUILTY.” The trial, however, wasn’t over. “I’m sorry, very sorry,” Jons, 20, of Warren told Macomb County Circuit Judge Diane Druzinski. The post was discovered by the defense team Aug. 11 – before the defense had even started its case – and Jons was removed from the jury the next day. Druzinski told Jons that it didn’t matter whether she used Facebook to express an opinion or simply spoke to a friend about the case. “You violated your oath. … You had decided she was already guilty without hearing the other side,” the judge said. By Oct. 1, Jons must submit an essay about the 6th Amendment to the U.S. Constitution and pay a $250 fine. Jons declined comment outside court. Her attorney, John Giancotti, said the outcome was appropriate. He declined further comment. Jons was a juror in a criminal case against Leann Etchison, who was charged with resisting arrest. She was eventually found guilty. The Facebook post was found by Jaxon Goodman, the 17-year-old son of Etchison’s defense lawyer. “She’ll think twice about how important being on a jury is,” Goodman said. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

AOL signs new search agreement with Google

AOL signs new search agreement with Google

NEW YORK (AP) — Google Inc. will continue to provide the search results on AOL Inc.’s websites under a new, five-year deal the companies signed this week. The agreement largely reinforces an arrangement that has been in place since 2005. But the new contract, announced Thursday, also expands their cooperation onto AOL sites for cell phones and other gadgets. And it will put AOL video content on Google Inc.’s YouTube site for the first time. In its search agreement, AOL shares revenue with Google from the text ads that appear alongside search results. AOL shares rose 54 cents, or 2.4 percent, to $23.44 in pre-market trading Thursday, while Google rose $2.67 to $463. AOL, which is based in New York, is led by former Google executive Tim Armstrong, who is in the midst of a major overhaul at the Web company. AOL, which split from Time Warner Inc. last year, has been trying to grow its online ad business as its dial-up Internet service continues to lose customers to faster broadband connections. Although AOL declined to give specific financial details, Armstrong called the deal a “home run.” He framed it as an important step in the turnaround effort. “We have a very methodical play book for turning AOL around,” Armstrong said in an interview. “And today represented another big step.” Armstrong said AOL talked with five or six other search providers before deciding to stick with Google. But the deal was done well ahead of the December expiration of their previous agreement. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

Samsung unveils iPad competitor Galaxy

Samsung unveils iPad competitor Galaxy

BERLIN (AP) — Samsung Electronics Co. is unveiling a new tablet PC named Galaxy Tab as the latest device meant to rival Apple Inc.’s popular iPad. Samsung Europe executive Thomas Richter said Thursday the device will offer users “a new galaxy of possibilities” with features such as mobile video conferencing and a video chat function. The thin tablet device weighs 13.4 ounces (380 grams) and has a 7-inch (18-centimeter) touch screen. Richter said it comes with Google Inc.’s Android 2.2 operating system and Adobe’s Flash Player. Samsung said at a Berlin consumer electronics fair the price of the device will depend on telecommunications operators through which it will be available starting next month. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

Apple refreshes iTunes software, updates iPods

Apple refreshes iTunes software, updates iPods

SAN FRANCISCO (AP) — Users of Apple Inc.’s iTunes software will now be able to see what songs their friends are buying and where their favorite bands are playing next. These social features are part of Ping, a new Apple service akin to Facebook, Twitter and other popular social networks. People can sign up, then find friends, acquaintances and public figures to “follow.” As with Facebook and Twitter, Ping will deliver a stream of updates, showing friends’ iTunes purchases and other information. Ping will also generate a personalized top-10 music chart based on what friends buy or listen to. Apple says Ping is an optional service; people can choose to keep their music purchases and other iTunes actions private. Ping doesn’t have to rival Facebook or Twitter in popularity to be a success, Forrester analyst James McQuivey said. He said Ping just needs to help Apple sell a few more songs. The social feature is the first obvious sign that Apple is integrating technology from the music startup Lala.com, which it bought last year. Lala also gave members a peek at what music friends were playing. And it had developed – but never introduced – an iPhone app that would have allowed users unlimited streaming of songs for 10 cents each. Apple, however, gave no indication Wednesday that it might be working on a Lala-inspired streaming music service, which might let people access their vast iTunes music libraries remotely instead of having to download and store them individually. Other companies are set to benefit from Ping, including Live Nation Entertainment Inc., which powers the concert listings of the new Ping music discovery tool. CEO Michael Rapino said in a statement he was “thrilled” to take part in the plan, which he said will help sell tickets through LiveNation.com and Ticketmaster.com. At a media event in San Francisco, Jobs also showed off a line of revamped iPods. Among them was a smaller, button-free iPod Nano that people control with swipes across its touch screen. Apple also added a front-facing video camera to the iPod Touch so that people can use it for video chats using Apple’s FaceTime software, which was previously available only on the iPhone 4. The iPod Touch also got a new, sharper screen and a camera on the back for taking photos and recording video. A new iPod Shuffle brings back buttons that Apple did away with in the most recent version. Jobs also said Apple is updating the software that runs iPhones, the iPod Touch and the iPad. Next week, iPhone and iPod Touch users can get the free iOS 4.1, which adds the ability to upload high-definition video over Wi-Fi and improves the quality of photos taken with the devices. The iPad, which currently runs an older version of iOS, will catch up to its siblings in November. It will get multitasking and other features Apple introduced in iOS 4, plus features such as wireless printing from the tablet. Apple had been criticized for making a powerful device but hobbling it by not including any ports for USB devices such as printers or thumb drives. — Mintz reported from Seattle. AP Business Writer Ryan Nakashima in Los Angeles contributed to this report. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

Ad campaign will show off Xerox’s service business

Ad campaign will show off Xerox’s service business

NEW YORK (AP) — Xerox Corp. has this message for you: For the last time, we’re not just about making copies. To hammer that home, the company is launching its biggest media blitz in decades, starting next week. While the Xerox name is still synonymous with copy machines, the company has been branching beyond that line of work for years. Selling toner and paper remains a huge portion of its revenue, but it also makes money helping other companies manage how documents get around on their computer networks, among other services. And with the $6.4 billion acquisition this year of a company called Affiliated Computer Services, it has tripled the size of its services business, essentially transforming the company more than half a century after putting out its first copy machine. Where less than a quarter of its revenue came from services before the deal, they now account for roughly half of the $22 billion annual total. Coming out of a recession that put a big dent in corporate technology spending, Xerox is counting on the deal to get revenue growing again. Xerox, which is headquartered in Norwalk, Conn., expects ACS to help it sell back-office services to its existing clients, which won’t require much advertising. But according to Xerox President Jim Firestone, the bigger opportunity is winning new customers, especially abroad, where ACS hasn’t had as much of a presence. Hence the new ads. “We know that Xerox has moved far from its historic roots,” says Firestone. “But the rest of the world doesn’t pay quite as close attention as we would like.” It isn’t the first time Xerox has tweaked its brand in an effort to shake the copier company label. It redesigned its logo in 2008 with the same goal in mind, dropping the uppercase lettering that was so familiar from its copiers and printers and adding a stylish white “X” stretched over a red sphere. Xerox won’t reveal exactly what it is spending on the new campaign, but said it will more than double the company’s ad budget compared with last year. It includes spending on TV commercials, print ads and the Web. And while business services may not sound like much fun, Xerox is trying to liven up its marketing with a touch of humor. In one TV spot, a worker at Ducati motorcycles steps into a wind tunnel and tells a fellow employee who is testing a bike that management wants him to translate some company literature into Portuguese. “Are you busy?” The gist, of course, is that businesses should let Xerox handle this kind of ancillary work, while they stick to what they know. A voiceover tells viewers, “Ducati knows it’s better for Xerox to manage their global publications, so they can focus on building amazing bikes.” The idea is also to save Ducati and other companies a few dollars, an appeal Xerox hopes will resonate in a shaky economy. Before the ACS deal, Xerox had stalled. The recession meant less business going on at its customers, which in turn meant less printing and copying. Businesses also became more reluctant to replace aging office equipment, a trend that hurt revenue growth across the technology industry. Until the ACS deal closed, Xerox hadn’t reported revenue growth in more than a year and company executives warned repeatedly that they didn’t expect spending would bounce back quickly. The company has gone though several rounds of layoffs in the past two years. Now, Xerox is hoping the ACS deal will help it grow again, in part by offering other businesses ways to cut costs. “Clearly the economic environment is unsteady … and as a result everyone is very cautious,” said Firestone. “In this environment, where companies are trying to find the most cost-effective way to run their businesses, what we have to offer is part of the solution.” ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .

FCC seeks input on rules for online services

FCC seeks input on rules for online services

WASHINGTON (AP) — Federal regulators are seeking public input on what rules should apply to wireless Internet access and specialized services that aren’t part of the Internet but are delivered over wired broadband connections. The move by the Federal Communications Commission marks the next step in the agency’s long-running effort to adopt so-called “network neutrality” regulations to prevent broadband providers from discriminating against traffic flowing over their lines. FCC Chairman Julius Genachowski, as well as many big Internet companies, say these rules are needed to prevent phone and cable companies from abusing their control over high-speed Internet access to become online gatekeepers. But the commission faces fierce resistance from phone and cable companies, which insist they need flexibility to manage network traffic to prevent high-bandwidth applications from hogging capacity. Phone companies are particularly opposed to applying net neutrality rules to wireless services, which have more capacity constraints than wired systems. Phone and cable companies also fear that strict net neutrality rules would prevent them from charging a premium for specialized services that travel over dedicated networks, often called “managed services.” That category includes video services such as AT&T Inc.’s U-Verse and could expand to include online gaming, remote medical monitoring and even power grid controls. Broadband providers warn that rules that prohibit them from offering premium services could discourage them from continuing to invest in their lines. The FCC’s latest move comes several weeks after Verizon Communications Inc. and Google Inc. offered their own policy proposal to try to find a middle ground on net neutrality. Their plan would prohibit phone and cable companies from slowing down, blocking or charging to prioritize Internet traffic traveling over their regular broadband lines. But it would allow broadband providers to charge extra for services like U-Verse that are separate from the public Internet. The Verizon-Google plan also would exempt wireless services from net neutrality rules. The FCC’s decision to seek public comment on both issues is a disappointment to public interest groups that have been calling on the agency to move ahead quickly with strong net neutrality regulations. They say these rules are needed to prevent phone and cable companies from favoring their own services or those of business partners and from discriminating against Internet phone calls, online video and other Web services that compete with their core businesses. “While the FCC continues to play the game of kick the can down the road, consumers are left unprotected,” said Free Press Research Director Derek Turner. He added that “nothing in today’s notice contains anything new.” Free Press and other public interest groups have also been sharply critical of the proposal from Verizon and Google. They say it would create a two-tiered Internet with a fast lane for online companies that can pay more and a slow lane for everyone else. They also complain that it includes a giant loophole for the mobile Web at a time when more and more consumers are going online using handheld devices. Network neutrality rules have been a top priority for Genachowski since he joined the FCC last summer. The agency has been trying to craft some sort of compromise on the issue in recent months, but those efforts recently reached an impasse. In a statement, Genachowski said the FCC “will continue to be vigilant in guarding against threats to Internet freedom.” Even before it moves ahead with any network neutrality proposal, the agency must first establish its authority to regulate broadband in the aftermath of a federal appeals court ruling in April that cast doubt on its existing regulatory framework. ? 2010 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use .