Virtua Team Talk

We all know that the latest smartphones are getting more and more sophisticated these days which means outwitting the cybercriminals is a constant challenge as would-be fraudsters increasingly go mobile.

Last week for example, ‘Android Market’, the shop front for applications aimed at Android smartphones, was hit by approximately sixty malicious apps. Although they did little real damage (other than to Android’s reputation) the incident has served to put the issue of mobile security firmly back into the headlines.

It is because today’s mobile phones are virtually mini-computers, with some important added extras, that they are increasingly attractive to criminals.

The type of personal data typically stored on a phone including address books, calendars, personal data and even bank account details provides instant access to information for the modern fraudster’s preferred crime – identity theft. However, a more immediate income can be made from so-called “rogue dialling” programs which are malicious bits of code capable of placing calls, unbeknown to the owner.

According to Ovum analyst Graham Titterington, rogue dialling is currently the number one malware threat to smartphones. Rogue dialling automatically connects the phone to a premium number that belongs to another fraudster usually based in another country.

This is a serious problem, but it is not insurmountable, and potentially the mobile operators have the ability to cut off payments. At the moment though, this type of international co-operation is sadly lacking.

Another feature attractive to fraudsters is the close relationship between smartphones and location. This poses a risk that malicious apps will be able to track exactly where a person is at any given time and could even be used to find out when someone is away from home.

The popularity of the Android in particular is making it attractive for criminals. Some experts believe that it is only a matter of time before there is a catastrophic security lapse and then we will all wake up to the reality of the threats from criminals. Android may be the one to have hit the headlines recently but all smartphone operating systems have been targeted by malware of one kind or another.

To date, most iPhone security lapses have been related to offering users the power to break free from Apple’s control with software which modifies the iPhone enabling users to run non-Apple approved software. Several bugs have taken advantage of these so-called “jail-broken” phones. Another relatively harmless iPhone worm which changed the handset’s wallpaper was followed a few months later with a more serious bug that targeted people using their iPhones for internet banking with Dutch online bank ING.

Blackberry handsets and Symbian phones have also been targeted by a mobile version of the “Zeus” trojan. Victims were directed to a fake website where they were invited to download an app which then captured their banking details. And as consumers demand more services on their mobiles like electronic wallets and banking the potential for criminals to steal is huge.

The challenge for the mobile operators is to remain constantly vigilant and to consider how potential criminals can be thwarted by appropriate technical security measures. Today’s cyber criminal is enterprising and imaginative and it is essential that the operators remain at least one step ahead to keep consumers safe from the consequences of identity theft and fraud.

We are getting used to the idea of using mobile phones for almost everything these days. The device that not so long ago was just used for cordless telephone calls has now become our portable diary, alarm clock, filofax, GPS, music player and much more.

When we go shopping though, we traditionally turn to our trusty credit card or cheque book to pay for goods and services. But all that looks about to change.

‘Everything Everywhere’ (the parent company of Orange and T-Mobile in the UK) is about to roll out a new ‘mobile payments service’ in partnership with Barclaycard that is set to change the way we think about financial transactions. Some analysts believe it will be the biggest revolution in payments since credit cards were introduced over 40 years ago.  (It was reported recently that Apple were looking to compete with Paypal as a payment mechanism through iTunes accounts but this hasn’t transpired yet.)

A spokesman for the new innovation, which is due to be released by the Summer of 2011, claimed that “very soon using your mobile to buy a ticket for a show, a coffee and a sandwich or a magazine will soon be the norm.”

Not only will mobiles become payment systems but at specific retail outlets customers will be able to pay for goods and services just by waving their mobile phone against a ‘contactless reader’.

In Turkey a similar initiative is already in use that was developed for iPhone users by a company called Wireless Dynamics. To use the service iPhone users simply attach a Wireless Dynamics ‘iCart’ accessory to the iPhone handset to download an app that enables the payment system to work. Once the Visa based mobile card is activated users simply launch the app and touch their iPhone onto the point-of-sale reader without any need to enter a PIN number.

Now that a number of security based teething problems have been resolved the new ‘credit card mobile phone’ seems set to revolutionise the way we think of ‘money’. For die-hard traditionalists this might seem like a step too far but for the younger generation it is probably just another step towards the so-called ‘cashless’ generation. Whether you support the idea or not this way of doing business is likely to become the norm over the next few years as pounds and pennies disappear into antiquity. Next time someone asks if you can lend them a fiver you will simply tap your phones together, say ‘cheers’ and five pounds will seamlessly leave your account and credit theirs.

True, it will be sad to hear the death knell of jangly coins. One day we will point to coins in a museum cabinet and tell our grandchildren “We used to carry those around in our pocket once upon a time…”

Working in the mobile phone industry, and being the father of a teenager, there is one thing I have noticed in particular about the younger generation and the way they use mobile phones.

It’s not about their ability to text at high speed, leading to the newly classified medical problem known as “texter’s thumb”, or about the way they seem to take photographs of everything and quickly upload it to Facebook. No, it’s more about the way that mobile phones has led them to communicate more –despite some peoples belief that texting stifles verbal communication.

Turn up unexpectedly at any typical teenage party and, apart from being a rather unwelcome intruder from the older generation, you will quickly notice that everyone seems to be simultaneously texting and talking. They are busily texting not only absent friends to tell them about the party, but also friends who are actually present at the same party and some who are even in the same room – all whilst holding an indepth conversation on the latest gossip!

I see my teenage daughters texting each other and want to join in. I like texting and there are some things that are better and easier said in a text or an email than a phone conversation.   It’s asynchronous for a start and easier to understand than a voicemail. It’s also a good way of having a short snappy exchange – which somehow never seems to happen on a phone conversation.   It also adds a level of privacy – my daughter can talk to her friends while travelling with me in the car without me hearing the content, which is great for both of us!

I love this new approach to communication and I certainly do not think it stifles conversation other than amongst people for whom conversation is difficult anyway.   When my daughter gets together with the friends that she’s sent 200 texts to during the week, they are never short of conversation. My teenagers can talk and talk and talk as well as text and text and text. The I struggle with is their ability to communicate in all these ways at the same time – it is no wonder they find it hard to believe we find it strange when it is a part of their nature.

Health and Safety legislation is having a hard time at the  moment courtesy of the media. It seems that not a day goes past without someone having a jibe at a new directive that for many people seems unnecessary over-protection from a ‘nanny state’. Yes, it’s true that some of the regulations do seem a little ridiculous at first sight but anything that saves lives and avoids the potential for accidents before they happen is surely better than the alternative.

For me personally, Health and Safety is a serious matter and in my role as a manager I have a responsibility towards looking after the welfare of all my employees – but I have to confess that sometimes even I am shocked by new H&S revelations – particularly so when they are related to the new ‘politically correct’ movement! Take Punch and Judy for example…

I don’t know about you but as a child I was rather fond of watching a Punch and Judy show at the seaside as have generations of children. The script and the characters have remained largely unchanged for a hundred years and even with the advent of ipods, computer games and mobile phones children still love to laugh at the antics of Mr Punch fighting the crocodile for his sausages.

It now seems though that Punch and Judy’s days might be numbered – because in many people’s views the show is neither politically correct nor meeting health and safety standards! It was reported this week in the news that officials in a number of seaside resorts have decided that the time has come to rewrite the script and bring Punch and Judy into politically correct line.

Apparently, instead of violently wielding a club Punch will in future hold a fluffy mop. He will no longer be hitting Judy or insulting policemen and instead of throwing the baby away he will be tucking it up in bed. In short bad old Mr Punch has been ‘modernised’ and, like the rest of us, he will have to learn to be more socially integrated, politically correct and more health and safety conscious.

You might think this is a good thing or, if like me you have a sentimental nostalgia for these seemingly harmless childish pleasures, you might lament the demise of yet another great British tradition. Whatever your view however it seems to me that sometimes we need to get the balance right between making sure that our health and safety policies and our politically correct attitudes are sensible and relevant but also not too frivolous or bureaucratic.

Saving lives and having respect for other creeds and cultures is important for sure – but we must do this without losing sight of common sense. When wonderful old traditions that have entertained thousands of people for sometimes hundreds of years are suddenly changed to meet ‘modern’ standards I think we are in danger of losing part of our heritage and culture.

As Mr Punch might have said “That’s not the way to do it”

On January 15th 2009 an event occurred that changed history forever, though at the time very few people realised it. It was the day US Airways Flight 1549, a scheduled commercial passenger flight left New York City to fly to Charlotte, North Carolina as it had done many times before.

Three minutes after takeoff from LaGuardia Airport the plane struck a flock of Canada Geese while still climbing towards its cruising altitude. The bird strike, which occurred just northeast of the George Washington Bridge, resulted in an immediate and complete loss of thrust from both engines.

When the aircrew of the Airbus 320 determined that they would be unable to reliably reach any airfield from the site of the bird strike, they turned it southbound and glided over the Hudson, finally ditching the airliner near the USS Intrepid museum about three minutes after losing power. All 155 occupants safely evacuated the airliner, which was still virtually intact though partially submerged and slowly sinking. Everyone on board was quickly rescued by nearby boats which had witnessed the whole incident.

The entire crew of Flight 1549 was later awarded the Master’s Medal of the Guild of Air Pilots and Air Navigators. The award was in recognition of the emergency ditching and evacuation, with no loss of life. The Captain in particular was hailed as a hero, averting a potential disaster and central to this unique achievement in aviation history.

Although the incident was reported widely at the time something else happened on that day which has irrevocably changed the way we define ‘news’ – and the repercussions are now changing history.

On that particular day hundreds of people were out taking a morning stroll beside the Hudson River. There were dog walkers, joggers, people going about their daily business and people travelling to work. As the plane started to get into trouble and change course the people on the ground started to reach for their mobile phones to take photos of the descending plane. Others sent text messages describing the unfolding events, some sent messages via Twitter and other social media sites.

By the time the formal news channels heard of the incident the plane was already in the water – but already people the world over knew what had happened. In other words by the time CNN and Sky News got their reporters to the scene the incident was already old news.

Later that day, in the boardroom of one of the leading TV News Channels, a Senior Manager was quoted as saying to his team “Gentlemen, as of today we are no longer in charge of the news. It is in the hands of the people.”

On that day ordinary people were sending news updates, images and sound clips around the world from their mobile phones. In other words ordinary people were using mobile phones to spread developing news stories faster than the corporate news channels could ever hope to. Suddenly, the News Channels woke up to the reality that they no longer had a monopoly on the news.

Whether you believe this to be a good thing or a bad thing is obviously a matter of personal opinion. What is undeniably clear, however, is that mobile phone technology is not just changing the way we interact with each other. It is now also changing the way the very fabric of our society operates.

Although in our line of business we get involved in most aspects of mobile phone technology development and deployment there is one aspect that we have absolutely no control over – and that’s how people choose to use their own personal mobile phones.

With the huge advances in applications technology, particularly in relation to the innovative iPhone or the Blackberry, phones are now the ‘essential’ tool for most professionals and losing a mobile is like losing your computer or your office!

If there is a ‘dark’ or negative side to mobile phone usage though then it has to be the alarming, and growing, number of traffic accidents caused by drivers using mobile phones. This trend has now become so serious that the police recently reported that driving whilst using a mobile phone is now considered a more serious offence than drink driving and have therefore stepped up their campaign to raise awareness as well as raising fines and penalty points.

Using a Mobile phone while driving is a widespread problem, and still controversial. Across the globe different countries have taken a different legal stance regarding the use of phones whilst driving. Some jurisdictions have made the use of a cell phone while driving illegal. Others have enacted laws to ban handheld mobile phone use, but do allow use of a hands-free device. In some cases restrictions are only directed to minors or those who are immediate license holders.

Although there have been very few scientific studies of this subject the data gathered so far is quite enlightening and has tended to prove unequivocally that increased cell phone use definitely correlates with an increased risk of a traffic accident. Also, with regard to texting a simulation study at the Monash University Accident Research Centre has provided strong evidence that both retrieving and, in particular, sending text messages has a detrimental effect on a number of critical driving tasks. Specifically, negative effects were seen in detecting and responding correctly to road signs, detecting hazards and time spent with eyes off the road.

Other studies have shown that driving whilst using a hands-free cellular device is actually no safer than using a hand held cell phone. The increased “cognitive workload” involved in holding a conversation, not the use of hands, causes the increased risk. The message then is very clear. It is our responsibility as individuals to use our mobile phones responsibly and not to put lives at risk by using a mobile phone whilst concentrating on driving. One of Virtua’s major projects is helping the emergency services improve their communications technology in order to save lives.

So let’s all be part of the solution rather than the problem!

“This new generation of phones have so much power in them, so many activities, so much information that it is the defining new category for our industry” Eric Schmidt, Google Chief Executive.

In some ways the mobile phone industry is going through one of those technology shifts like the one that happened in the 90’s. Nokia was the first to realise that kids thought mobile phones were as much a fashion accessory as a communications device.  That paradigm shift is happening again now as “smart phones” start to become more and more useful.

This time, though, the shift is affecting more than just the mobile phone industry. Smart phones and tablets are going to affect the computer business as well.

It’s two years since the iPhone was launched and it’s certainly changed the way in which people use hand held devices. As I talked about last week, it’s even changed the way quizzes are conducted at the local pub.

Some say that the success of the iPhone is down to the huge range of interesting applications that are available for it. It’s claimed that whatever you want to do there is an app for it. In some ways they’ve copied the very successful model Microsoft used against Apple in the early PC market place. Bill Gates always said that he considered the contribution of Windows as an application development environment to be much more important that its role as a user interface or an operating system. In other words, get great apps developed for your platform and you will win. It worked then and it seems to be working now.  The success of Apple’s ‘app store’ is testament to that. The store – which now boasts 65,000 apps and over two billion downloads, is now making serious money, but more strategically it’s making it harder and harder for rivals to compete.

So is the iPhone the end of the story? I don’t know. I think that the ‘form’ factor of devices will continue to change. I’ve long thought that in the fullness of time we will still all have two devices. We’ll have something “consciously portable”, which will probably resemble an A4 piece of paper. Why? Well, the paper business has had plenty of time to evolve to a size that humans feel comfortable to write on and carry. People don’t carry A3 notebooks, and only reporters’ carry A5 size ones. Your other device will be “unconsciously portable”. You won’t know you’re carrying it – and something about the size of a credit card seems about right.

I might be wrong about this ‘form’ factor thing, or even about the role applications play but I’m interested in this topic because it supports the view, which does matter, that the days of desk bound computers and phones are over.

Did you happen to read the news report this week about banning mobile phones from pub quizzes? According to a reporter from the BBC “The integrity of pub quizzes used to be beyond question, but the advent of text messaging in the late 1990s has heralded an era of cheating. Otherwise honest people, corrupted by a combination of alcohol and the desire to win promotional t-shirts, are now reduced to seeking outside help from friends”

So, I’m not really bothered about the rights and wrongs of the rules around pub quizzes, but it is interesting to see how people react to it and what it tells us about business.

One pub landlord who has run popular quiz nights for many years has now resorted to placing large signs both inside and outside his pub saying ‘No mobile phones’ and ‘No Googling’. Interviewed by a BBC reporter the landlord, Stephen Duffy, commented: “Some of the crowd are a bit older and can remember a time before mobile phones, and their phones are not as advanced as the ones owned by younger people. Somebody was telling me they’re bringing out face-recognition software so you’ll even be able to cheat in the picture round. There’s even an iPhone app called Shazam which recognises what song is playing – it could be the death of the pub quiz as we know it.” Mr Duffy added that he tries to come up with questions which can’t be found quickly on the internet but it’s getting harder all the time.

Of course being in telecoms for many years I’m not surprised by the way innovation is changing the way we communicate. Some people resist it, longing for the “good old days”. Others embrace it and the changes on our culture it brings. I’m not at all surprised that a lot of wily pub goers are winning quizzes by using their mobiles and iPhones. The phone is the ideal resource to get information quickly and in many ways this is just another example of exploiting the phone’s capabilities to gain advantage. I don’t think this is necessarily the end of the pub quiz, but I think it will undoubtedly change the format and the way we think about quizzes in the future. For example, given the inevitability of punters bringing their mobile devices to the pub, the organisers of the “Hive Mind Challenge” in London may have hit upon the future of pub quizzing. Billed as “the quiz where you are meant to cheat”, it actually encourages participants to use mobile technology, search engines and Twitter to find answers to obscure questions, such as the height of the Eiffel Tower (324 metres according to my quick search!) So winning the quiz is about how quick and skilled you are at using the technology rather than personal knowledge.

I’ve often held the view that you’re better to embrace change than to fight it. I, like many of you have used a mobile phone as my primary phone for quite some time. I don’t bother with my desk phone; the mobile is just way too easy and familiar. It used to be thought that people using mobiles to call other people in the same office was odd, now it’s natural, and with new network technology it can also be just as cheap.

Anyway, back to pub quizzes. I wonder whether the technophobes have forgotten the point in having pub quizzes? For the most part they don’t exist in order to find the smartest person in the village. They are there to get more people into the pub and create a social atmosphere.  Besides, I somehow think a little bit of cheating in pub quizzes went on long before the advent of mobile technology!

It is a legal requirement that no radio equipment is installed or used in the UK except under the authority of a licence granted by Ofcom.  Today, all mobile phones operate in either the 900, 1800 Mhz and 2Gig bands and that part of the spectrum is owned by the dominant mobile operators (O2, Vodafone, Orange, T-Mobile and 3.) Until recently the spectrum was considered fully allocated and no-one else could enter the market other than by partnering with one of these operators.

However, in 2006 Ofcom released some additional spectrum in an area that had traditionally been reserved. An auction was held to assign these and the winners were duly awarded their specific allocation. That’s where the similarity to previous auctions ended!

In this instance the spectrum had certain constraints attached – most notably that it could be used to transmit at a very low power.  Ofcom’s intention was that this release of spectrum would be used to provide “in-building solutions” rather than traditional nationwide network coverage. Because of this constraint Ofcom felt that they could award the spectrum to many operators – twelve in all. For the successful applicants there are a number of different reasons and business models that make it worthwhile to own this asset. (For more information click here. While development plans have been mostly kept under wraps, several of the licensees have been busy preparing and launching products to offer solutions in this lucrative market.

A customer of one of these licensees can therefore operate a dedicated in-building GSM network with all the functionality and cost benefits compared to existing DECT systems, or the use of mobiles on the main national networks. Those buildings simply have a small (about A4 size) stylish box on the wall connected to the network.

This appears to be the ideal solution for large organisations who want to retain control of their communication costs and facilities but it does need careful planning. For example, it is quite possible that if two companies are using the same frequencies, and are also in close proximity geographically, there may well be interference. At best this could just be an irritation but at worst it could undermine the rationale for purchasing the frequency in the first place.

The “Mobile 200” Group was formed by the licensees that successfully bid for the spectrum. As well as all signing up to an agreement on engineering practices, each of the licensees is also required to register the spectrum they have used in specific physical locations so that other licensees can make the necessary adjustments to remove interference.

Here at Virtua we are involved in designing and installing the in-building networks for the most active license winner. Currently, major roll-outs are underway for this solution: which has the potential to fundamentally change the way businesses use mobile phone technology.