Tech frenzy over mobile - Seattle Times

BARCELONA, Spain — The crowd outside the auditorium at Mobile World Congress on Monday was a restive mass of executives waiting to hear Microsoft Chief Executive Steve Ballmer. It was worse than the dressing-room line at Nordstrom Rack.

The pushing and shoving among men in suits to get a seat were a microcosm of the fierce competition and frenetic pace of a wireless industry here for its largest annual gathering. It was a stampede of the electronics industry to mobility.

The Mobile World Congress trade show, which started Monday, could draw as many as 53,000 attendees and 1,400 companies setting up booths and battling for sales and partnerships with hardware makers, software developers and wireless carriers. That compares with 49,000 attendees and 1,300 booths in 2010.

In addition to Ballmer, Twitter CEO Dick Costolo also spoke Monday.

With the industry drawing much of tech world's attention, the world's largest software company still had a lot of explaining to do about Windows Phone 7, the mobile operating system that started selling in October. The platform is growing slowly and has shipped 2 million copies to phone makers — the largest metric it has disclosed so far.

"We're off to a strong start; we know we've got a lot of work to do," Ballmer said in his speech.

But, no matter how Windows Phone 7 sales are characterized and despite Microsoft's eyebrow-raising partnership announced Friday with Nokia, the platform faces huge challenges.

Software update

Ballmer's speech was, at the end of the day, mostly a software update for an industry hungry for big technology leaps. This crowd has been spoiled by Apple's steady stream of new products and Google's stratospheric growth in mobile.

In fact, Google's mobile platform, Android, seems ubiquitous at the show, the launchpad for new products from all corners.

Samsung, for instance, announced both a new Galaxy smartphone and tablet, only a few months after releasing its first one. Sony Ericsson announced a smartphones running PlayStation games is coming in March. The platform common to all of them: Android.

Chip maker Qualcomm promoted software-development kits for new technologies such as augmented reality, also running on Android. An example of augmented reality is the yellow first-down line TV viewers of football games see on their screens.

Apple, too, looms large over the show, even though it is not at the conference in an official or public way, with many companies showing software built on the iPhone and iPad.

By contrast, Microsoft had no new devices running Windows Phone 7 to show here, and Nokia has not said when its first Windows Phone will be ready.

Even more telling is both Apple and Google are the platforms for tablets most developers here are targeting — and tablets are the hot topic at the conference.

Microsoft had no specific news about an operating system for tablets. The last update came at the Consumer Electronics Show in January, when the company showed a very rough chip prototype for the next version of Windows on tablets.

With this as a backdrop, Ballmer drummed on the phrase "fast paced" in his speech to describe Microsoft's mobile progress over the past 12 months.

The company announced plans for Windows Phone 7 about 12 months ago, began selling devices in the fall and on Friday announced the exclusive deal to put Windows Phone 7 on smartphones for the world's largest phone maker, Nokia.

Nokia CEO Stephen Elop, formerly president of Microsoft's Business division, joined Ballmer in the Monday appearance.

"The world is shifting from a battle of devices to a war of ecosystems," he said. "... Microsoft and Nokia together represent a natural partnership."

Ballmer shared a laundry list of updates coming to Windows Phone 7 this year in his speech. One, planned for March, will add a copy-and-paste feature for Windows Phone 7 users.

Later this year, Windows Phone 7 will get Twitter integration into its People Hub, its address book. When people pull up their address books on the phone, they will also see their most recent tweets. (Facebook is already integrated.)

Multitasking between programs is also coming to Windows Phone 7. Corporate Vice President Joe Belfiore showed the ability to pause and switch between two games on the phone.

Internet Explorer 9, Microsoft's Web browser in progress, will have a version ready for Windows Phone 7 this year. The browser is a major update for Microsoft because it supports HTML5, a Web programming standard that lets developers build richer, more applike websites.

Microsoft will also expand the integration of SkyDrive on Windows Phone so people can access Office documents created in Office Web Apps on their phones.

Kinect connection

Microsoft also showed Windows Phone 7 working with Xbox Kinect. In a video, a Windows Phone user controlled balls in an Xbox "Kinect Adventures" handball game while another player tried to hit them in a game.

"My sense is they're doing better than people expected," Will Stofega, an analyst with Framingham, Mass.-based IDC, said of Windows Phone 7. "People said they would sell 10,000 copies."

He said the key is for Microsoft not to let Nokia get in the way of other phone makers such as Samsung and LG, which are already selling Windows Phones.

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com

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Mom, tot found dead in dumpster - Boston Herald

BROCKTON — The bodies of a young Ecuadorean and her toddler son were found stuffed in a Dumpster behind their downtown apartment house, and authorities said yesterday the mother and child may have been there for days.

“It’s a terrible crime scene, especially when you think about what happened to a small child and his mom. I mean, who would do that to a 2-year-old child?” said Plymouth District Attorney Timothy J. Cruz.

Until autopsies determine the cause and manner of their deaths, Cruz refused to speculate on what evil may have befallen Maria Avelina Palaguachi-Cela, 25, and Brian Palaguachi, 2, except to say the mother was last seen at her home at 427 Warren Ave. on Thursday.

“We do not believe this is a random act,” Cruz said.

No arrests have been made.

A New York cousin of the child’s father — day laborer Manuel Caguana — told the Herald last night Caguana was questioned by police, but had been working “far, far away” for about two weeks when his son and Palaguachi-Cela were found by cops Sunday night.

The baby’s father had called his family repeatedly last week “and there was no answer, no answer. So he was worried,” said the cousin, who is also named Manuel Caguana. “He was like, my wife, my son, where are they?”

When the father returned home, “everything was quiet, clean, just as he had left it, so he was shocked when the police came and told him she was dead,” Caguana said.

The family “were good people,” the cousin added. “They were always going to church.”

Denise Agnello, who lives across the street from Palaguachi-Cela’s spearmint-colored triple-decker, said the young woman lived with a man, whom she saw police talking to after the gruesome find.

Agnello said detectives questioned her, too. When she asked what was going on, “All they said to me was, ‘We found a young woman in the Dumpster in a duffel bag, dead,’ ” she said.

Cruz refused to comment on whether a duffel bag was involved or how the remains were positioned —in part, he explained, because police don’t know if the presumed crime scene was disturbed. “My understanding,” he said, “is the bodies involved in this were fully intact.”

Agnello said she usually saw Palaguachi-Cela — a quiet, petite woman — on a daily basis, but not in the past week.

“Right across the street — it’s just awful,” she said.

According to Manuel’s cousin, Manuel Caguana and Palaguachi-Cela originally met as neighbors in Ecuador and reconnected in the United States. Manuel had been living in New York, but moved to Massachusetts “for love” of Palaguachi-Cela, his cousin said.

The couple had been married for about four years but, the cousin said, Palaguachi-Cela had a prior relationship with a man who he believes may also live in Massachusetts.

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Obama's Budget Plan Complicates Talks on Corporate Tax Overhaul - BusinessWeek

February 15, 2011, 12:05 AM EST By Ryan J. Donmoyer and Richard Rubin

(See {EXT2 } for more on the budget.)

Feb. 15 (Bloomberg) -- President Barack Obama renewed his call to raise taxes paid by U.S.-based multinational corporations and oil and gas companies, complicating efforts to overhaul the corporate tax code this year.

The president, in a $3.7 trillion budget plan released yesterday in Washington, revived dozens of proposals that Congress has rejected, including $129 billion in higher taxes on the overseas profits of U.S. companies. He also proposed changing the tax treatment of oil, gas and coal companies, which would raise about $46 billion.

The proposals revived opposition from businesses. They had been looking for a signal of a friendlier tax stance.

“There was the hope they would consider some of the arguments and concerns that were raised by the multinationals” after Obama included similar proposals in his first two budgets, said Lindy Paull, a partner at PricewaterhouseCoopers LLP in Washington.

Obama and Treasury Secretary Timothy Geithner in the past few months have held a series of meetings with corporate executives, who have pushed for reducing taxes on global profits rather than increasing them.

‘Fundamental Changes’

“There is disappointment that those proposals were not revised and that they’re continued to be labeled loophole closers when they are pretty fundamental changes to the tax code,” Paull said. “People have spent a lot of time and effort trying to discuss that with the administration.”

Michigan Representative Dave Camp, a Republican who would play a pivotal role in any rewrite of the tax code as chairman of the House Ways and Means Committee, blasted Obama’s proposals.

“Rather than setting the stage for broad-based, pro-growth tax reform, this budget goes in the opposite direction with more tax hikes,” Camp said.

The proposal also would bring back pre-2001 tax rates on income and capital gains for individuals earning more than $200,000 annually and married couples making more than $250,000. The estate tax would return to 2009 levels with a $3.5 million per-person exemption and a 45 percent top rate. Under a law Obama signed in December, lower rates expire at the end of 2012.

“The president was unable to reverse the Bush tax cuts this past year with a majority in each house of Congress, so it’s very difficult to see how he will be successful over the next two years with the Republicans firmly in control of the House,” said Neal Weber, managing director in charge of RSM McGladrey’s Washington national tax office.

Limits on Deductions

The budget plan would limit itemized deductions for top earners to 28 percent, curbing the value of tax breaks for charitable contributions, home mortgage interest and state and local taxes. That proposal has been included in every budget of Obama’s presidency and was rejected as a revenue-raising provision to fund his overhaul of the health system last year.

Under the budget’s assumptions, federal revenue as a percent of the economy would increase from 14.9 percent in 2010 to 20 percent in 2021. Part of that increase stems from projected economic growth, not from policy changes.

A key Senate Republican also criticized the tax increases in the budget.

“This budget fails to preserve the pro-growth policies needed to expand our economy, create jobs and reduce the deficit,” said Senator Orrin Hatch of Utah, the top Republican on the Finance Committee.

Administration officials said the budget is balanced with proposals favorable to business, such as making permanent a tax credit for conducting research.

Tax Incentives

Obama proposed an array of other tax incentives. They include the elimination of capital gains on some small business stock and one to revive the Build America Bonds program, which expired at the end of 2010.

The budget also proposes converting a deduction for energy- efficient buildings into a credit. Obama wants to extend a provision expiring at the end of 2011 that allows certain energy tax credits to be converted into grants.

Instead, many in the business community are focusing on renewed proposals to place limits on multinational companies’ ability to defer income taxes on profits they earn outside the U.S. These plans have drawn criticism from corporations such as Microsoft Corp. and Cisco Systems Inc.

The budget also revives a proposal that Congress require executives of investment partnerships including private-equity firms to pay ordinary tax rates on the profits they receive as compensation. This pay, known as carried interest, currently can qualify for lower capital gains tax rates. The proposal would raise $14.8 billion over 10 years.

--Editors: Jodi Schneider, Jim Rubin.

To contact the reporters on this story: Richard Rubin in Washington at rrubin12@bloomberg.net; Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

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