The company said the move was made in response to the uproar.

“At Verizon, we take great care to listen to our customers,” CEO Dan Mead said in a statement. “Based on their input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time.”

The announcement comes one day after Verizon said it would be adding the fee for customers who make a single bill payment by telephone, and for some who pay online via the Verizon Web site.

Earlier today, the Federal Communications Commission had said it was concerned about the carrier’s planned fee.

“On behalf of American consumers, we’re concerned about Verizon’s actions and are looking into the matter,” an FCC representative told AllThingsD.

“Starting August 21, we’re streamlining our text messaging plans for new customers and will offer an unlimited plan for individuals for $20 per month and an unlimited plan for families of up to five lines for $30 per month,” AT&T said. “The vast majority of our messaging customers prefer unlimited plans and with text messaging growth stronger than ever, that number continues to climb among new customers.”

Those already using a bundled plan — such as the $10 for 1,000 text messages option — can keep their existing plan, even if they change handsets, AT&T said.

The move comes as the U.S. has passed the Philippines to become the most text message-addicted country, according to a new report from wireless analyst Chetan Sharma. Americans now average about 664 messages per subscriber per month. That means, though, that the average person here would still be better off with the $10 per month plan that AT&T is eliminating.

AT&T’s shift was reported earlier on Thursday by Engadget.

At a press conference due to start any minute, the Taiwanese cellphone maker is set to show off a pair of Android phones–the Cha Cha and the Salsa–as well as its first tablet and several other Android devices.

HTC’s move follows that of INQ Mobile, which last week announced two Android models that feature heavy Facebook integration. Gemalto also announced Monday it plans to integrate Facebook into SIM cards, allowing users of low-end phones better access to the social network.

Like many others’ news here at the show, most of HTC’s had leaked out well ahead of the event.

One particularly nice touch–HTC planned ahead and ran Ethernet cables to each seat in the theater. (Unfortunately, Mobilized left the MacBook Air Ethernet adapter back in the apartment.)

Mobilized has live coverage of the event below.

9:58 am: Still waiting for the press conference–which was due to start a half hour ago–to get under way. We do have comfy seats and soothing music, but would have prefereed an extra half hour of sleep.

9:59 am: Apparently all I had to do was complain. Now it’s getting started with CEO Peter Chou taking the stage.

“2011 is going to be an amazing year,” Chou promises.

Some analysts predict smartphones will outsell feature phones, Chou says.

“Features that were once fancy, extra, are now becoming standard,” he says. “‘Nice to have’ is turning into ‘must have.’”

Hardware is important, but so are software and services like Sense and HTCSense.com. Company plans new versions of HTC Sense for phones with keyboards, larger screens, etc.

10:04 am: Some stats from Chou:

25 million smartphones sold last year, more than double the prior year, with revenue up 93 percent.

The company’s global brand awareness reached 50 percent, up from 13 percent a year and a half ago. (Of course, that means half of consumers still don’t know HTC, but a big improvement nonetheless.)

10:05 am: On to 2011: 4G networks will change everything again. HTC Thunderbolt, its first LTE smartphone, shipping this week with Verizon.

10:07 am: Company is announcing five phones today, the most it has ever announced at one time. Chou says.

“I hope you agree it has been worth the wait,” Chou says, bringing out John Wang, HTC’s chief marketing officer.

10:07 am: Talking about HTC Sense. Location-data for 83 countries. HTC spent a year and a half building the maps product. You can preload, so travel won’t cost a fortune in roaming charges.

Weather is another good example, Wang says, where the company aimed not just to provide information, but also offer an emotional experience.

“When it is sunny you almost feel the warmth on your body. When it rains, you almost want to wipe your phone dry.”

10:10 am: First demo fails as video he wants to show won’t play.

“Well, maybe later on,” Wang says, moving on to the new phones.

And another fails as whatever was supposed to happen isn’t happening.

Okay, here we go. HTC Desire S. And, we’ve got some more demo fail going on.

10:12 am: “We apologize for this,” Wang says, annoucing a few-minutes pause.

10:15 am: And we are back, with HTC Desire S, Incredible S and Wildfire S.

Desire S doesn’t have front and back. Machined out of a single block of aluminum. “It feels solid in your hand,” Wang says. Also has full HD video recording.

Wildfire S, smaller and in three colors. “It can almost disappear into your pocket. (Mobilized hates it when that happens. We’ve put two iPod Nanos through the wash.

10:20 am: HTC Incredible S. As you rotate the large Android phone, the icons on the buttons also rotate. 8-megapixel camera, integrated video chat with front-facing camera. “Incredible S combines premium design with premium experience,” Wang says.

So, essentially these are updates to the existing product line.

Next up, the Facebook phones.

10:22 am: There are 500 million Facebook users worldwide, but 200 million check it on their phones. Those users are twice as engaged. Many young people check Facebook right when they wake up with a significant number doing so from their phones before they even wake up, Wang says.

Now showing a video of HTC’s work with Facebook to build the new phones.

10:24 am: Video of Facebook CEO Marc Zuckerberg touting the device.

“A lot has been made about a Facebook phone,” Zuckerberg says, but adds that there will be more than a dozen phones this year with deep social integration. “HTC is doing that here.”

Mobilized is apologizing in advance, but I may not make it through the whole press conference.

10:26 am: The new phones–the Cha Cha (with keyboard) and Salsa (touch-only) both have a dedicated blue Facebook button at the bottom.

10:27 am: Can use button to post updates, but also if taking a picture can use that button to share social network. “When you press this button, the photo is instantly uploaded to Facebook,” Wang says. Button blinks also when reading an article on the Web. Press the Facebook button and it will share that on Facebook. Similar, when you are listening to a song, pressing the button will share that information.

If you hold button down, you check in on Facebook Places.

Both phones also support Facebook messaging and chat.

“We did not just add social networking to the phone,” Wang says.

10:30 am: Bringing up Facebook VP Chamath Palihapitiya to talk about the partnership.

“I’m just frankly very thrilled we are taking this very important step, which I think will be the first of many,” he says, saying he expects Facebook and HTC to do more things together.

10:32 am: Chou back up, saying he could just stop with five great phones and ensure another great year. But he’s not. There’s a tablet coming.

10:34 am: Chou says the company could have rushed out another “me too” experience, but says that wasn’t what the company wanted to do.

Showing video of how the company came up with its tablet, the HTC Flyer.

10:37 am: Chou holds up the Flyer, then hands things back to Wang. Flyer also has unibody design, which he says makes the tablet feel solid but keeps it lightweight.

HTC wanted it to be comfortable to hold in hand. At 415 grams it is about the same weight as a paperback book.

Here are a few features: 1.5GHz chip, 6-hour battery life, dual cameras, Flash 10 and HTML 5 support, along with new 3-D-based HTC Sense experience.

10:40 am: Also has a stylus–unique among Android tablets–HTC Scribe technology.

Allows you to share things more easily, Wang says. Just scribble “let’s go” on a restaurant Web page and press a button and it is sent.

You can also use it to do audio note taking–a la Livescribe, where notes are synchronized to the audio.

Mobilized has to jam to our next meeting, but I think we have hit the high points.

SAP apparently has other plans. Having won in December a small victory over the amount of interest it will have to pay, today SAP said it plans to argue that it shouldn’t have to pay quite as much to Oracle.

In a statement, it called the judge’s order a “procedural matter,” and said it plans to make post-trial motions challenging the amount the jury awarded. If not successful, it may appeal, the company said. Its full statement is below.

“Today the Court entered judgment in the Oracle v. SAP/TomorrowNow litigation, which is a procedural matter that occurs after a jury verdict. As stated before, we have accepted liability for the actions of TomorrowNow and have been willing to fairly compensate Oracle, but we believe that the amount awarded by the jury is disproportionate and wrong. Once the judgment is entered, SAP is permitted to challenge the jury’s award by way of “post-trial motions,” which are made to the trial judge. SAP will file these motions in the coming weeks asking the Court to reduce the amount of damages awarded or to order a new trial. We look forward to the Court’s resolution of the issues we will raise in our post-trial motions. Depending on the outcome of the post-trial motion process, SAP may also consider an appeal.”

Oracle, on the other hand, was happy to take another victory lap. “We are very pleased that the court’s final judgment for $1.3 billion, plus the court-awarded interest and the $120 million SAP paid during trial to settle additional charges, confirms the jury’s verdict against SAP for its massive intentional copyright infringement,” Oracle said in an emailed statement.

PREVIOUSLY:

• Oracle to SAP: You Owe Us Another $212 Million
• Oracle-SAP Verdict: SAP Owes Oracle $1.3 Billion
• Oracle-SAP: Closing Statements Followed by Closing Insults
• Oracle-SAP Case Closes With $1.67 Billion Difference of Opinion
• LOLCatz: Safra on The Stand Again in Oracle-SAP Trial
• Plattner and White No-Shows at Oracle-SAP Trial
• Damages Expert to SAP: You Owe Me $14 Million and Oracle Four Times That
• Oracle, SAP and the Apotheker Sideshow
• Better Late: SAP Co-CEO Apologizes for Oracle IP Theft
• SAP Co-CEO Expected to Testify in Oracle Trial Today
• HP to Oracle: Leave Léo Alone
• Oracle Still Hoping to Snag HP’s Apotheker for SAP Trial
• HP CEO to Oracle: Here’s Looking at You, Kid–Suntory Time!
• Ellison to Self: Damn, Damn. I Knew I Should Have Said $4.5 Billion
• SAP Attorney: Board Knew TomorrowNow Was Infringing at Time of Acquisition
• Oracle Co-President on SAP’s Damages Offer: “It’s Crazy”
• Oracle Enlists Process Servers, Not PIs, to Find HP CEO
• Oracle-SAP Trial: Ellison Swaps Katana for Poison Darts
• Objection: Mr. Ellison Is Referring to the Defendant as “Choleric of Temper” Again
• Oracle Lands Early Shots in SAP Trial
• Your Honor, We Object to Mr. Ellison’s Repeated Use of the Term “Slimy Weasels”
• Oracle to HP CEO: Chicken!
• Oracle Vs. SAP: We Got a Right to Pick a Little Fight–Bonanza!
• SAP’s Tab in Oracle Case: $120 Million and Counting
• Gag Order Denied in Oracle, SAP Trial
• Ellison Taunts HP CEO a Second Time
• SAP to Ellison: Save the Drama for Your Mama
• Ellison to HP CEO: “Warrior, Come Out to Plaaeeay!
• SAP: Please Gag Oracle
• HP Scandal Sucks in New York Times Columnist Over Conflict of Interest
• Welch to HP Board: You Don’t Know Jack!
• Insiders Criticize Ellison For HP CEO Slam
• Was Apotheker HP’s First Choice of CEO?
• HP Names Ex-SAP Chief Apotheker as CEO

Sprint said the charge will help it keep its network running smoothly for all the data-hungry customers, and tried to put some happy talk around what is, essentially, a rate hike.

“Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today’s wireless technology,” Sprint consumer business President Bob H. Johnson said in a statement. “While some of our competitors impose overage charges and complex plans, Sprint continues to provide a worry-free, unlimited data experience while on the Sprint network. This is responsible, sustainable and reflects our commitment to simplicity and value.”

Existing Sprint smartphone customers are not affected unless they upgrade to or activate another smartphone, the company said.

Today, in a sharply worded post titled “In Defense of Standards, Ethics, and Honest Financial Reporting at Hewlett-Packard,” prominent venture capitalist Ben Horowitz took to his blog to shoot back at the plethora of critics of the Hewlett-Packard board for their conduct related to the controversial jettisoning of CEO Mark Hurd.

That came after Hurd admitted to filing inaccurate expense reports related to an outside contractor who worked closely with him, and who later alleged sexual harassment on his part. Those charges were dropped after Hurd settled with the woman, named Jodie Fisher, but before HP could complete an investigation.

Since then, the board has been under fire from Oracle (ORCL) CEO Larry Ellison, who hired Hurd as the database giant’s president, and former GE head Jack Welch, who laid into the HP board this week.

Now Horowitz has fired back and here’s a taste of his ire, which is aimed at execs, the media and more:

If a CEO is prone to compromise for any reason, he will have every reason. This time it was his expense report. Next time will it be a marginal accrued liability? A deal that came in at 12:01 am on the last day of the quarter? This is a slippery slope that a public board simply cannot tolerate.

And:

Who is Jodie Fisher? According to press reports, Fisher is a former Playboy model, reality show contestant, and softcore porn movie actress with no work history relevant to her job with HP. She was hired by Hewlett-Packard and paid up to $5,000 per meeting to meet with Fortune 50 CEOs.

The mainstream press has reported these facts as mundane, ordinary, and hardly worth concern. I disagree. HP employs over 300,000 people. Every single one of HP’s employees is keenly interested in the qualities, skill sets, and behaviors that HP values most. Financial compensation and access to the CEO are the most important ways that HP communicates what it values to its employees. Jodie Fisher had more access to the CEO and was paid more than 99.9% of HP’s workforce, despite having no traditional qualifications.

It’s important to note that this was not Hurd paying for his personal extracurricular activity out of his own pocket. This was the Hewlett-Packard Corporation paying a softcore porn movie star with no relevant work experience more than it pays Harvard graduates with 20 years of industry experience. This was the company spitting in the face of the people who worked hard and sacrificed every day to help the company win in the market. It was completely and categorically unacceptable.

And:

There are many who take the view that business is singular in purpose–to increase shareholder value. They further take the position that constraining that purpose in any way is inefficient and counterproductive. The mainstream press seems to have broadly adopted this position in its attacks on HP. The Wall Street Journal Op Ed page even complained that businesses were being held to an unfair standard when compared to politicians.

I do not subscribe to this view. Running our companies with no moral or ethical standards is bad for society, bad for the country, and ultimately leads to criminal behavior.

So, what do you really think, Ben?

Horowitz does have an interest in the situation, which he discloses clearly at the top of his piece: His longtime business and now venture partner is HP (HPQ) board member Marc Andreessen.

And the Silicon Valley soap opera continues….

This was a marked improvement from the third quarter, when Sprint (S) lost a net 545,000 subscribers. So Sprint, while clearly not taking market share away from Verizon (VZ) and AT&T (T), is at least it’s doing a better job of holding on to the market share it has–or is at least losing share less quickly than previously (see charts; click to enlarge).

Not that this effort is helping the company’s bottom line all that much. For the quarter, Sprint posted a loss of $980 million, or 34 cents per share, compared with a loss of $1.6 billion, or 57 cents per share a year earlier. Excluding charges, that loss was 23 cents per share–quite a bit worse than the loss of 19 cents analysts had been expecting. Revenue was disappointed as well, falling to $7.87 billion from $8.43 billion. Analysts had been expecting $8.01 billion.

So when can we expect Sprint to return to subscriber and revenue growth? On a conference call with analysts this morning CEO Dan Hesse declined to say.

In a 13-page letter to the Federal Communications Commission Wednesday, the carrier again said that Google should play by the same rules as its telecom competitors. AT&T also took issue with the search giant’s claim that Google Voice restricts calls to certain rural areas to avoid the so-called traffic pumpers that route calls there to drive up charges.

“Contrary to the public pronouncements of Google and its allies, Google’s rural call blocking regime is not limited to Google simply blocking calls to ‘adult sex chat lines’ and ‘free’ conference calling services to avoid high access charges,” wrote AT&T’s senior vice president, Bob Quinn, in the letter to the FCC’s wireline bureau. “In fact, Google is blocking calls to, among others, an ambulance service, church, bank, law firm, automobile dealer, day spa, orchard, health clinic, tax preparation service, community center, eye doctor, tribal community college, school, residential consumers, a convent of Benedictine nuns, and the campaign office of a Member of the U.S. House of Representatives.”

My God. Google, the company whose business philosophy proudly proclaims “you can make money without doing evil,” blocking calls to small businesses? To Benedictine nuns? Don’t be evil?

Don’t be evil, my ass.

“We can now see the power of Internet-based applications providers to act as gatekeepers who can threaten the ‘free and open’ Internet,” Quinn continues. “Google’s double standard for ‘openness’–where Google does what it wants while other providers are subject to Commission regulations–is plainly inconsistent with the goal of preserving a ‘free and open’ Internet ecosystem.”

That established, Quinn goes in for the kill, arguing that the FCC should regulate the search giant not just on the wires, but on the Web as well.

“Google’s call blocking begs an even more important question that the Commission must consider as it evaluates whether to adopt rules regarding Internet openness,” he writes. “If the Commission is going to be a ‘smart cop on the beat preserving a free and open Internet,’ then shouldn’t its ‘beat’ necessarily cover the entire Internet neighborhood, including Google? Indeed, if the Commission cannot stop Google from blocking disfavored telephone calls as Google contends, then how could the Commission ever stop Google from also blocking disfavored websites from appearing in the results of its search engine; or prohibit Google from blocking access to applications that compete with its own email, text messaging, cloud computing and other services; or otherwise prevent Google from abusing the gatekeeper control it wields over the Internet?”

An interesting question. And one for which Google (GOOG) is presumably already preparing a long-winded answer. This is far from over yet, and we’ll continue to go round and round until the FCC puts a stop to it.

In a 13-page letter to the Federal Communications Commission Wednesday, the carrier again said that Google should play by the same rules as its telecom competitors. AT&T also took issue with the search giant’s claim that Google Voice restricts calls to certain rural areas to avoid the so-called traffic pumpers that route calls there to drive up charges.

“Contrary to the public pronouncements of Google and its allies, Google’s rural call blocking regime is not limited to Google simply blocking calls to ‘adult sex chat lines’ and ‘free’ conference calling services to avoid high access charges,” wrote AT&T’s senior vice president, Bob Quinn, in the letter to the FCC’s wireline bureau. “In fact, Google is blocking calls to, among others, an ambulance service, church, bank, law firm, automobile dealer, day spa, orchard, health clinic, tax preparation service, community center, eye doctor, tribal community college, school, residential consumers, a convent of Benedictine nuns, and the campaign office of a Member of the U.S. House of Representatives.”

My God. Google, the company whose business philosophy proudly proclaims “you can make money without doing evil,” blocking calls to small businesses? To Benedictine nuns? Don’t be evil?

Don’t be evil, my ass.

“We can now see the power of Internet-based applications providers to act as gatekeepers who can threaten the ‘free and open’ Internet,” Quinn continues. “Google’s double standard for ‘openness’–where Google does what it wants while other providers are subject to Commission regulations–is plainly inconsistent with the goal of preserving a ‘free and open’ Internet ecosystem.”

That established, Quinn goes in for the kill, arguing that the FCC should regulate the search giant not just on the wires, but on the Web as well.

“Google’s call blocking begs an even more important question that the Commission must consider as it evaluates whether to adopt rules regarding Internet openness,” he writes. “If the Commission is going to be a ‘smart cop on the beat preserving a free and open Internet,’ then shouldn’t its ‘beat’ necessarily cover the entire Internet neighborhood, including Google? Indeed, if the Commission cannot stop Google from blocking disfavored telephone calls as Google contends, then how could the Commission ever stop Google from also blocking disfavored websites from appearing in the results of its search engine; or prohibit Google from blocking access to applications that compete with its own email, text messaging, cloud computing and other services; or otherwise prevent Google from abusing the gatekeeper control it wields over the Internet?”

An interesting question. And one for which Google (GOOG) is presumably already preparing a long-winded answer. This is far from over yet, and we’ll continue to go round and round until the FCC puts a stop to it.

Excluding charges related to stock options and other items, Palm (PALM) said net losses were $13.6 million, or 10 cents a share, for the recent period. Revenue slipped to $68 million from $366.9 million in the same period last year. Excluding revenue deferred from sales of the company’s new Pre handset, Palm said adjusted revenue would have been $360.7 million. Analysts had expected the company to turn in a loss of 24 cents a share on sales of $291 million.

Palm shipped a total of 823,000 smart phone units during the quarter, up 134 percent over the fourth quarter of fiscal year 2009, but down 30 percent year over year. Smart phone sell-through for the quarter was 810,000 units, up 76 percent from the fourth quarter of fiscal year 2009 and down 21 percent year over year.

Speaking to analysts Thursday afternoon, Palm execs claimed that “the vast majority of new sales” for the quarter were generated by the Pre. But they declined to separate Pre sales from those of other handsets.

Skeptics will no doubt look at this and conclude that Palm didn’t meet expectations for Pre shipments of about 520,000. That, or the company is still selling a hell of a lot of Centros.

“We’re making significant progress with Palm’s transformation, and our culture of innovation is stronger than ever,” said Jon Rubinstein, chairman and chief executive officer. “We’re launching more great Palm webOS products with more carriers, and turning our sights toward growth.”

A few more Jon Rubinstein remarks from the earnings call:

On additional form factors:

I’m a big believer in families of products, and we’ll continue to evolve the line in the future and have a family of products for webOS.

On Carrier Customization:

We don’t really talk about our carrier agreements.

On Pre sales:

Sell-in and sell-through…the vast majority of new sales…relate to the Pre.

On the Pixi cannibalizing Pre sales:

The Pixi is a more cost-effective offering, so yes we expect some people might come into the store looking to buy a Pre and end up with a Pixi. But others might come in looking for a Pixi and end up with a Pre. As I said, we’re big believers in families of products. We’re happy to have two webOS products on the market.

On carrier diversification:

Sprint did a phenomenal launch with the Pre. They invested heavily in advertising….We’re looking forward to launching the Pixi with them as well. We don’t talk about our roadmap, but we’ll have more carriers and more products in the future.

On Motorola’s new Motoblur service:

We don’t really know much about it. To build really great consumer products, you have to own the OS and services. And the fact that we have webOS as our asset is really important.

Good thing Wall Street wasn’t expecting much from Microsoft. Because it didn’t get it.

After market close Thursday, the Redmond, Wash.-based tech giant reported that fiscal fourth-quarter net income fell to $3.05 billion, or 34 cents a share, from $4.3 billion, or 46 cents a share, in the same period a year earlier.

Revenue for the period ended in June fell 17 percent to $13.1 billion. Wall Street had been looking for earnings of 36 cents a share on $14.37 billion in revenue, according to data compiled by Thomson Reuters.

Online advertising revenue decreased $86 million, or 14 percent, to $529 million, primarily reflecting a decline in display advertising.

The company missed estimates by $1 billion. Gruesome.

“Our business continued to be negatively impacted by weakness in the global PC and server markets,” CFO Chris Liddell said in a statement. “In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter.”

Microsoft shares are trading down more than eight percent at $23.50, as I write this.

Below is the full earnings release. BoomTown’s Kara Swisher will be liveblogging the earnings call later this afternoon.

Microsoft Reports Fourth-Quarter Results

The company delivered operational efficiency and innovation in a difficult environment

REDMOND, Wash., July 23, 2009–Microsoft Corp. today announced revenue of $13.10 billion for the fourth quarter ended June 30, 2009, a 17% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period.

“Our business continued to be negatively impacted by weakness in the global PC and server markets,” said Chris Liddell, chief financial officer at Microsoft. “In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter.”

The financial results for the fourth quarter ended June 30, 2009, included the deferral of $276 million of revenue related to the Windows 7 Upgrade Option program that was announced on June 25, 2009. This revenue deferral reduced earnings per share by $0.02.

The fourth-quarter financial results also included $193 million of legal charges, $108 million of impairments to investments and $40 million of additional severance charges related to the previously announced plan. Operating expenses were reduced by $105 million of capitalized research and development expenses due to the technical milestones reached for Windows 7. Combined, these items also reduced earnings per share by $0.02.

Significant product milestones were achieved in the quarter including the releases of Windows 7 release candidate, Windows Server 2008 R2 release candidate, as well as Bing, Microsoft’s search engine designed to help people make faster, more informed decisions.

For the fiscal year ended June 30, 2009, Microsoft reported revenue of $58.44 billion, a 3% decline from the prior year. Operating income, net income and diluted earnings per share for the year were $20.36 billion, $14.57 billion and $1.62, which represented declines of 9%, 18% and 13% respectively.

“While economic conditions presented challenges this year, we maintained our focus on delivering customer satisfaction and providing solutions to our customers to save money,” said Kevin Turner, chief operating officer at Microsoft. “I am very excited by the wave of product and services innovations being delivered in this next fiscal year.”

Business Outlook

Microsoft is providing operating expense guidance of $26.6 billion to $26.9 billion, for the full year ending June 30, 2010.

Management will discuss fourth-quarter results and the company’s business outlook on a conference call and webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today.

Weighed down by heavy restructuring charges, Seagate reported a loss of $81 million, or 16 cents a share, compared to net income in the same quarter last year of $160 million, or 32 cents per share. Analysts surveyed by Thomson Reuters had expected, on average, a loss of 10 cents per share, excluding special items.

Ugly. And it gets worse. For the year, Seagate said it lost a horrifying $3.09 billion, or $6.32 per share.

But the situation is improving–at least, Seagate hopes so. Looking ahead, the company sees revenue of $2.4 billion to $2.6 billion in the current quarter, better than it had predicted in June. “We are…seeing signs that the storage markets are improving,” Seagate CEO Steve Luczo said in a statement. Later, during a conference later, he added, “We are approaching the September quarter cautiously.”

Here are a few questions about computers I’ve received recently from people like you, and my answers. I have edited and restated the questions a bit, for readability.

Recently, you reviewed some new Apple laptops whose batteries are sealed in and can’t be removed by the user. But I have had situations with some laptops where the only way to restart them when frozen is to remove the battery. How can this problem be handled if the battery is sealed in?

On Mac laptops, you can shut down the computer, even if the software appears frozen, by holding down the power button firmly and continuously for 5-10 seconds. You then wait a few seconds, press the power button again, and the machine should start up. This is different from the more common scenario where a brief press of the power button brings up a dialog box allowing you to choose to shut down or restart the Mac, or to put it into sleep mode.

Apple says there is another method you can use instead of removing a battery. Pressing the Control and Command keys simultaneously with the Power Button restarts the computer.

I live in the U.S. and when I visit Europe I have no cellphone, which makes it difficult to stay in touch during my trips. I am completely ignorant about cellphones and use a pay-as-you-go model that doesn’t work in Europe. What type of phone do you recommend I buy that I can use both in the States and abroad? I do not need a built-in camera, or any other fancy add-ons. I only want to be able to call people.

The two major U.S. phone carriers whose underlying technology is compatible with the system used in Europe are AT&T and T-Mobile. Given your needs and your usage pattern, I’d go into one of their stores and look for the least expensive and simplest model that can operate on all the frequencies used in the U.S. and Europe. These phones are typically referred to as “quad band” or sometimes as “world phones.” I would also try and find a plan that minimizes overseas roaming charges, which can be quite high.

Another option is to look for an “unlocked” phone that can accept different SIM cards, the small chips that connect phones to carriers. That way, you could have one SIM for use in the U.S. and another for whatever country you are visiting.

I have hundreds of folders in “My documents.” In each folder there may be hundreds more individual files. Is there a way to rapidly search for key words in all of those documents in order to locate any files that might contain a particular word?

If you are using Windows XP, you can download and install various desktop search add-on products that can solve your problem. The best known are Windows search, from Microsoft, at http://bit.ly/Dflai, and Google Desktop Search, at desktop.google.com. If you have Windows Vista, it comes with a built-in desktop search function that can accomplish that task, though you can also use the Google product.

You can find Mossberg’s Mailbox, and my other columns, online for free at the All Things Digital web site, http://walt.allthingsd.com.

Randall Stephenson is just two years into his tenure as CEO of AT&T (T) but he faces challenges that have been decades in the making. Among them: remaking AT&T amid the steady decline of its landline business, future-proofing its business as our appetites for bandwidth grow, competing with the likes of Comcast (CMCSA) in the cable TV market and fending off the proponents of Net neutrality, who don’t care much for the idea of a two-tiered Internet.

Beyond this there is the issue of continuing to build out AT&T’s wireless business, which–if not iPhone-dependent–is certainly nursing a hell of a habit. In its fourth-quarter AT&T added 2.1 million wireless subscribers. 1.9 million of them were iPhone accounts. Astonishing. But AT&T’s exclusive deal to peddle the Apple iPhone in the U.S. expires next year. The company is obviously eager for an extension. But what is it willing to do to get it?

Incidentally, we had a fairly big announcement from AT&T this morning. The company said it is upgrading to High Speed Packet Access 7.2 technology. That means considerably faster mobile broadband speeds. The upgrade is slated to begin later this year, with completion expected in 2011.

Session Highlights

Live Blog

• After some brief introductory remarks from Wall Street Journal Managing Editor Robert Thomson, who jokes about implementing an 18-second delay for expletive-fond Yahoo CEO Carol Bartz, and a welcome song from Jill Sobule, Walt welcomes Randall Stephenson to the stage and the second day of D7 begins.
• For a first question, Walt, referring to poll data, asks Stephenson why some folks might not be interested in buying an Apple iPhone because of AT&T. Stephenson notes that AT&T is improving network quality and reducing churn.
• Walt says he gets frequent reader mail complaining about AT&T service coverage. Stephenson says the company is way down the road in terms of the level of data traffic on the networks. Behavior changes radically. He says AT&T is a year ahead of other carriers in terms of network management, managing the volume and behavioral changes from adoption of new devices.
• Walt: Let’s talk for a moment about the iPhone. It’s a data-intensive device. You weren’t ready when you first launched the iPhone 3G. What happened? Stephenson says the company wasn’t quite ready. “But we’re improving.”
• Walt asks the audience how many people use AT&T. Many hands raised. How many had it before the iPhone? A fair bit. How many are satisfied with the service? Also a fair bit. Clearly, AT&T’s service must be getting better.
• The level of data volumes we are seeing on our networks is changing customer behavior dramatically, says Stephenson. This is challenging, but the company is addressing it.

• Walt: If we project out farther past the iPhone, are the mobile networks we have going to be able to handle these new data-intensive devices? Stephenson: The answer is clearly no. That’s why we’re buying more spectrum and moving toward LTE. What’s so good about LTE? Speed levels of 20 megs plus, for one, says Stephenson, who admits that real-world performance will be somewhat less than that.
• Stephenson says AT&T is more than doubling the theoretical speed of the network. Does this mean the speed of our handsets will also double, asks Walt. Not on current handsets. But on future ones, which will all be backward-compatible.
• When you upgrade the network to 7.2 will it have any negative impact on the network as data demands grow, asks Walt. Stephenson says no. “It’s all network management….We’ll have a whole new capacity.”
• Walt: In a world where both you and Verizon (VZ) go to LTE, will I be able to take my handset and switch to Verizon’s network? Stephenson says the LTE standard is consistent and should permit that.
• The conversation shifts to Wi-Fi. Walt asks about AT&T’s Wayport efforts. “When we look at the world today and the world of the future, the fixed-line bandwidth requirements are not slowing. Then you move to the wireless broadband world, where bandwidth requirements are not slowing either. You need a bridge between the two.” That bridge is WiFi, adds Stephenson, noting that the company sees extraordinary WiFi usage among it smartphone users.
• Stephenson talks for a moment about automatic authentication and says AT&T is working to implement it. “The current system is kludgey. People want it seamless.”
• Walt asks about the company’s broadband business. Stephenson says it’s doing well. Notes that it is doing nearly as well as Verizon’s FIOS business.

• Walt asks how the economy is affecting AT&T’s various businesses and the advance of the company’s capital spending plans. Stephenson says the board business has obviously been affected. Business is slowing especially in enterprise and the consumer phone business. Interestingly enough, people are more apt to disconnect the home phones than they are broadband. So AT&T continues to aggressively invest in mobile apps and in wireless infrastructure. He notes that the company is really pushing hard to build out its U-verse network. “I’ve been through a few of these recessions in my 20 years in this business, and it will turn. So you must continue to invest and prepare for the day when it does.”
• What about competitors? What are they doing? In wireless, says Stephenson, competitors also investing. A lot of capital is coming into the wireless business. In broadband, cable guys have not slowed down. Telecom structurally in a good place. Regulatory structure continues to bring in capital.
• Back to the issue of the iPhone. Was it worth it to sign the deal with Apple (AAPL)? How has it worked out? “It’s worked out terrific. We have no complaints.” He notes that the company incurred dilution, but has benefited by getting the premier customer in the space–one with high data usage and low churn. “I’m very pleased with the deal.”
• Walt asks if the company has suffered from the iPhone’s fixed data charges. It’s not a variable charge. How does that offset the dilution that AT&T has to pay? We made a bet, says Stephenson, that the industry was heading toward smartphones, and that was a good bet. Now we’re seeing dramatic uptakes in usage, so the pricing model must change. And it will change. The market will dictate that change more than anything else. But right now the economics of the iPhone are very good for us.
• Walt: Have you ever called Steve Jobs and just asked him to put a keyboard on the iPhone? Stephenson chuckles. No. “If Steve wants to put a keyboard on the iPhone, I’m sure he will.”
• Walt: Are all these new operating systems arriving at market problematic for AT&T? The iPhone, Palm’s (PALM) WebOS, Android? Would it be easier if there were fewer platforms? Stephenson: Do I want to see fewer platforms? Yes, it’s better for my business. Will I see fewer platforms? I don’t think so. So we need to take advantage of it and use it as an opportunity.

• What about the Palm Pre? “Would I like to see the Pre on our network some day? Of course I would,” says Stephenson. “We obviously talk to all the handset manufacturers. We want a broad selection of devices in the lineup. That’s important. Devices right now are what’s driving the customer adoption as much as anything.”
• Stephenson says he’s seeing dramatic uptakes in data usage. Pricing models will change over time, he says. How it changes will depend who you are. He notes that costs are variable in wireless–every new bit has a direct cost tied to it, unlike wireline business. AT&T margins are 40 percent-plus in Q1 on wireless business.
• Walt: Can you foresee a day when you’re not running retail stores? Why do you want to run stores when you’re really a network company? Stephenson says distribution is changing. But a retail presence is always going to very important, and I always want to have a part of that.
• Moving on to the Q&A: How do you transform wireline customers into wireless and broadband customers? Integration is very important, says Stephenson. If you already have AT&T Wireless, it’s a natural step to add broadband and even wireline if it’s offered as a bundle.
• Why can’t we have data roaming on LTE from the beginning and avoid the mistakes of the 3G networks? Stephenson says the LTE network will have similar roaming agreements as those on the current networks. “It’s in all our best interests.” The industry always evolves to a point where broader coverage is needed and these agreements become necessary. You’ll see that with LTE as well.
• Question about SlingBox on 3G network being rejected: Who decided that? Stephenson says that terms of service agreement for the customer do not allow customers to move live stream video over the wireless platform. Not like the fixed line side. If you start congesting network with data, voice quality goes down. We have to maintain some quality, so it’s not allowed under terms of service.
• Responding to a question on warrantlessly providing data about customers to the government, Stephenson says AT&T will act within the law in all regards to customer information and privacy. “We will comply with the law, absolutely,” he says.

A note about our coverage: This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as we were able. It was not intended as a transcript and should not be interpreted as one.

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]]> http://allthingsd.com/20090527/randall-stephenson/feed/ 13 http://allthingsd.com/20090421/more-pulitzers-less-money-new-york-times-ad-sales-down-27/ http://allthingsd.com/20090421/more-pulitzers-less-money-new-york-times-ad-sales-down-27/#comments Tue, 21 Apr 2009 12:51:16 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=6464 Yesterday the New York Times won five Pulitzer Prizes, and executive editor Bill Keller took a well-deserved victory lap with a speech that reportedly had his newsroom in tears.

But for better or worse, none of that matters to investors, who are trying to figure out what the company’s long-term prospects look like. In the near term, they look terrible.

In the first three months of this year, the New York Times Company (NYT) lost $74.5 million, or 34 cents a share once you factor out one-time charges, on revenue of $609 million. That’s worse than Wall Street’s low expectations of a five-cent loss on revenue of $630.8 million.

The reason, of course, is that the ad market is miserable in general, and even more so for newspapers. The company’s ad revenue was down 27 percent, notably worse than the awful 17.6 percent decline the Times recorded in the last quarter of 2008.

And as in the last quarter, former bright spots like the Internet business have now gone dark as well: Internet revenue was down 5.6 percent, Internet ad sales declined 6.1 percent, and revenue at the Times’s About.com unit dropped 4.7 percent.

Expect more of the same for the second quarter of this year, warns CEO Janet Robinson: “At this time, and it is early in the quarter, we believe the rate of decline in ad revenues in the second quarter will be similar to that of the first.”

The Times has been trimming costs (via salary cuts and layoffs) and has bought itself a bit of breathing room by getting rid of its dividend, taking on a very expensive loan from Mexican billionaire Carlos Slim and selling off assets like its Manhattan headquarters. It still has some moves it can make–it is trying to unload its stake in the Boston Red Sox and to find a buyer for the Boston Globe.

But at some point it’s going to have find a way to start selling more ads again. Because awards alone won’t save the paper–Pulitzers can’t even guarantee their winners’ continued employment.

The Times has stopped providing monthly revenue updates, but it has been pretty good about providing detail via its earnings calls. I’ll be on the road during today’s 11 a.m. call, but will check the transcript and get back to you later with the most interesting nuggets.

]]> http://allthingsd.com/20090421/more-pulitzers-less-money-new-york-times-ad-sales-down-27/feed/ 0 http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name/ http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name/#comments Tue, 17 Feb 2009 17:19:51 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=13071 You’ve got to love the the International Federation of the Phonographic Industry–if not for its hopelessly antediluvian moniker, then for its we’re-on-a-mission-from-God attitude toward its criminal case against torrent index The Pirate Bay. Just two days into the trial–apparently the hottest ticket in Stockholm right now–and already, half the charges against the Swedish site have been dropped because of the prosecution’s fundamental misunderstanding of the nature of the torrent-distributed protocol. Prosecutors had accused the defendants of “complicity in the production of copyrighted material,” i.e., assisting in the distribution of copyrighted material. Today they scrapped that charge, amending it to read, “complicity to make (copyrighted material) available,” after they were unable to prove that The Pirate Bay’s servers actually host copyrighted material.

In a hastily released statement, the IFPI downplayed the abrupt change of tack, claiming the amended charges will simplify its case. Said IFPI counsel Peter Danowsky, “It’s a largely technical issue that changes nothing in terms of our compensation claims and has no bearing whatsoever on the main case against The Pirate Bay. In fact it simplifies the prosecutor’s case by allowing him to focus on the main issue, which is the making available of copyrighted works.”

The Pirate Bay had a different take on the matter though. Said co-founder Peter Sunde in a Twitter message: EPIC WINNING LOL.

]]> http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name/feed/ 0 http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name-2/ http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name-2/#comments Tue, 17 Feb 2009 17:19:51 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=13071 You’ve got to love the the International Federation of the Phonographic Industry–if not for its hopelessly antediluvian moniker, then for its we’re-on-a-mission-from-God attitude toward its criminal case against torrent index The Pirate Bay. Just two days into the trial–apparently the hottest ticket in Stockholm right now–and already, half the charges against the Swedish site have been dropped because of the prosecution’s fundamental misunderstanding of the nature of the torrent-distributed protocol. Prosecutors had accused the defendants of “complicity in the production of copyrighted material,” i.e., assisting in the distribution of copyrighted material. Today they scrapped that charge, amending it to read, “complicity to make (copyrighted material) available,” after they were unable to prove that The Pirate Bay’s servers actually host copyrighted material.

In a hastily released statement, the IFPI downplayed the abrupt change of tack, claiming the amended charges will simplify its case. Said IFPI counsel Peter Danowsky, “It’s a largely technical issue that changes nothing in terms of our compensation claims and has no bearing whatsoever on the main case against The Pirate Bay. In fact it simplifies the prosecutor’s case by allowing him to focus on the main issue, which is the making available of copyrighted works.”

The Pirate Bay had a different take on the matter though. Said co-founder Peter Sunde in a Twitter message: EPIC WINNING LOL.

]]> http://allthingsd.com/20090217/it-was-hard-enough-to-take-you-seriously-with-the-word-phonograph-in-your-name-2/feed/ 0