Pentagon opens rocket launches to competition












WASHINGTON (Reuters) – The Pentagon has approved a plan that will allow the U.S. Air Force to buy up to 36 rocket launches for government satellites from a joint venture of Lockheed Martin Corp and Boeing Co , while opening up to 14 launches to competition from other companies, the Air Force said on Tuesday.


The Pentagon has been moving aggressively to introduce more competition to defense procurement to help lower costs. Air Force officials have been particularly keen to introduce competition to the area of rocket launches — and adopt other reforms — given sharp increases in the cost of launches.












Under the new plan, the Air Force can buy as many as 14 launches over the next five years from possible bidders such as Space Exploration Technologies Corp, or SpaceX, and Orbital Sciences Corp .


The service may also buy as many as 36 launches from United Launch Alliance, the Lockheed-Boeing venture, with an option to purchase the other 14 launches if the competitors haven’t been certified to launch military and spy satellites that can cost up to $ 1 billion each.


Frank Kendall, the Pentagon’s chief weapons buyer, signed a memorandum approving the revamped acquisition approach on November 27, an Air Force spokesman said.


United Launch Alliance has been the sole supplier of medium- and heavy-lift rockets for military and spy satellites under the Evolved Expendable Launch Vehicle (EELV) program since Boeing and Lockheed merged their rocket launch operations in 2005.


The program is estimated to cost $ 70 billion through 2030.


United Launch Alliance officials said the new approach would expand block-buying and help stabilize the industrial base and save money by allowing it to sign larger and longer-term contracts with its suppliers.


Without such action, Air Force officials say, the cost of one Atlas V rocket was expected to spike by 40 percent to over $ 250 million from around $ 180 million now.


The U.S. Air Force said on Monday it had selected SpaceX, Orbital Sciences and Lockheed to launch smaller military satellites on multiple missions through 2017 under a contract valued at up to $ 900 million.


(Reporting By Andrea Shalal-Esa; Editing by Richard Pullin)


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WestJet embraces tech to woo business travelers












TORONTO (Reuters) – WestJet Airlines Ltd will use technological innovation, including a new Internet ticket booking system, to help it transform from a no-frills carrier to a lower-cost full-service airline courting lucrative corporate travelers, its chief executive said on Monday.


Canada’s second-biggest airline plans to launch a series of technology systems, most notably the new online booking engine, which will sell three tiers of tickets, in the next two months.












“Companies evolve or they die,” Chief Executive Gregg Saretsky told Reuters in a phone interview from the company’s Calgary head office.


“We’re 16 and going on 17 years old and we can’t stay just as we were 17 years ago. The world has changed. And we are changing to be more relevant for a broader segment of guests.”


The new Internet booking system, which WestJet hopes to launch in late January, will sell economy, mid-tier and premium tickets. That is a major shift from its current system, which sells only the lowest-priced ticket available.


Economy tickets under the new system will continue to sell the lowest available fare, but the cancellation fee for them will jump to C$ 75 ($ 75.48) from C$ 50. Mid-tier tickets will have a C$ 50 cancellation fee.


Premium tickets, unavailable until late March when WestJet finishes reconfiguring its 100 Boeing 737 planes to allow more leg room, will include priority screening and boarding, free cancellations and flexibility on ticket changes.


Pricing for those tickets, which may include free meals and drinks and an extra baggage allowance, has not yet been determined. Fares will be well below half the price for business class at WestJet’s bigger competitor, Air Canada, Saretsky said.


“It’s time for us to be more serious with respect to going after business travelers because frankly, they’re the ones who are booking last-minute and are happy to pay for the conveniences,” Saretsky said.


WestJet will launch its premium economy service with 24 seats per plane, but will consider expansion if it proves “wildly successful,” he added.


POISED FOR CHANGE


WestJet, which has spent about C$ 40 million over the past two years on technology projects, is poised for major changes in 2013 as it readies to launch a new regional airline, Encore.


Saretsky hopes that WestJet’s switch in coming weeks to a new Internet phone system will allow ticket reservation agents to work from home and help make room for Encore staff.


Some 750 reservation agents work at WestJet’s Calgary offices, which house about 2,400 staff. Space will be needed for Encore employees over the next 18 months while their office, hangars and maintenance stores are constructed at the WestJet campus.


Encore will be launch in the second half of 2013, “probably closer to July than December,” Saretsky said, with seven Bombardier Q400 planes.


While WestJet won’t announce Encore’s schedule until Jan 21, the carrier will initially serve only “a handful” of new cities, with ticket prices up to 50 percent below Air Canada’s, he added.


Over the next two months, WestJet will also roll out a guest notification system that alerts travelers via email about their flights, allowing them to check in remotely.


Such self-service technology will be critical as WestJet faces increasing labor costs, Saretsky said.


Wage and benefit costs, which represent about a third of operating costs, have climbed 50 percent since WestJet was founded in 1996.


“You can see that creates a little bit of drag on earnings,” Saretsky said. “We’ve got to find ways of reducing our component costs.”


If WestJet can increase self service options for travelers, that could limit the need for new employees, Saretsky said. Management also wants to improve attendance management, so that fewer employees book off sick around long weekends, and more quickly clean and process planes between flights, he said.


(Reporting By Susan Taylor; Editing by Peter Galloway)


(This story was corrected to show that WestJet is replacing its Internet booking engine, not entire reservation system, in the first and second paragraphs)


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$120 tablet that runs both Android and Linux to launch in early 2013












For anyone who has ever used his or her Android tablet and wished that it could double as a desktop-style device, PengPod has a product just for you. Ars Technica reports that the new PengPod tablet, which runs both Android and Linux, has met its crowd-sourced fundraising goals and will so on sale in January for $ 120 a 7-inch model and $ 185 for a 10-inch model. According to Ars, the tablet will be able to “dual-boot Android 4.0 and a version of Linux with the touch-friendly KDE Plasma Active interface.” Overall, the tablet received funding of nearly $ 73,000, or around 49% more than the $ 49,000 that the company had been seeking.


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Kansas City Chiefs murder/suicide key may never be unlocked












(Reuters) – The murder/suicide committed on Saturday by Kansas City Chiefs football player Jovan Belcher left the National Football League, its fans and health professionals struggling to understand what drove him to do it.


Belcher, 25, shot and killed his 22-year-old girlfriend Kasandra Perkins, the mother of his three-month-old daughter, in front of his own mother at home before driving to Arrowhead Stadium where he shot himself dead in the parking lot after thanking team officials for all they had done for him.












For the NFL, arguably the most popular U.S. professional sport, the tragic shootings cast the league in a frightfully brutal light as Belcher became the fourth player this year to die of a self-inflicted gunshot.


Former players Junior Seau in May, Ray Easterling in April and Michael Current in January all committed suicide.


A fifth suicide victim, former Chicago Bears player Dave Duerson killed himself by gunshot less than two years ago, leaving a note requesting that his brain be examined for a post-concussive disease that might have led to his severe depression.


An brain analysis showed that Duerson had a degenerative brain disease, as he had believed.


Details on Belcher’s health have been slow to emerge.


Dr. Alan Hilfer, Director of Psychology at Maimonides Medical Center in New York, said just why Belcher suddenly snapped could remain a mystery.


“We may never know the reasons,” Hilfer told Reuters in a telephone interview on Monday. “Something was terribly wrong.”


The league has come under fire from former players who have joined to sue the NFL, claiming league officials looked the other way while the players were absorbing concussions that have led to long-term disabilities.


LOOKING FOR AN EDGE


Others suspect that the high-speed, muscular contact game leads players to look for a doping edge despite drug testing, and that can lead to psychological instability.


Chiefs Chairman Clark Hunt said Sunday that doctors and coaches told him they knew of no physical or emotional issues bothering Belcher, who reached the NFL as a free agent after going to the University of Maine.


“What do you look for? It’s a very hard question to answer,” Hilfer said. “Certainly you look for mood changes. Certainly you look for increased levels of impulsively and anger.


“These things sometimes occur so suddenly. Sometimes there is just no way you could possibly know that someone is going to perpetrate an act of violence of this magnitude.”


Don Hooton, who founded the Taylor Hooton Foundation to promote steroids education in 2004, seven months after his son, Taylor, committed suicide following his use of anabolic steroids, suspects doping.


“Every time I hear a story like this, my mind runs immediately to anabolic steroids,” Hooton said. “Not necessarily to the exclusion of anything else, but because anabolic steroids can affect the mind in these crazy ways.


“I hope when they do the autopsy on this young man, that they look for these substances because it’s possible that what we saw was ‘Roid Rage’” – a label given to the exhibition of anger among steroid users.


Hooton said that despite efforts in professional leagues to stem the use of performance-enhancing drugs (PED), recent studies showed that steroids use was on the rise among U.S. school children.


“It’s not getting better – it’s getting worse,” said Hooton. “We better wake up, America.”


LARGER SOCIETAL PROBLEMS


Dan Lebowitz, executive director of Sport in Society at Northeastern University, said he saw the Belcher tragedy as something that speaks to societal problems transcending sports.


“This is an issue of men’s violence against women, not just football players being too violent,” Lebowitz said.


“When I look at it, I try to take it out of the realm of sport. I just think about the way we acculturate young boys in this country and our whole view of manhood.”


Lebowitz’s group has worked for the NFL on a 2010 training program aimed at gender equality and respect in the workplace, and ran a training project at the soccer World Cup in South Africa on preventing gender violence.


“If you look at how many NFL players commit gender violence in proportion to the overall population, the percentage falls in line with the general population, three to five percent.


“From what I hear she came home from a concert late and he reacted horrifically. We don’t have a healthy concept of what manhood is and how certain things that we see as an affront to manhood probably aren’t that at all.”


Lebowitz said the awful incident could spawn an opportunity to educate others.


“Nothing happens in a bubble. This is the fifth NFL player to commit suicide by a self-inflicted gunshot … this one was (preceded) by a murder. Right now there is an absolute heightened spotlight on all the issues around sports in general.


“How do we make a healthier sport, and how do we make a healthier man? How do we engage in a real conversation about respect for women’s rights and freedoms?”


Dr. Hilfer said athletes were often reluctant to seek help.


“They can benefit from additional help, especially considering the rash of suicides from concussive syndromes,” he said. “I would have loved to get this guy into some form of counseling therapy.


“It would have been wonderful if they could ask for help but athletes are often reluctant because their image is that of a tough guy who can handle things. They are as a rule some of the people who are least likely to access mental health services.”


Mike Paul, who runs a New York public relations business specializing in reputation management, said the incident would challenge NFL Commissioner Roger Goodell.


“This is a big one for him,” Paul told Reuters. “The helmet (safety) issue and the steroids and PED issue, continue. Now it is right back in his face again and he has two choices.


“He can confront it head on and say it is time for further examination as we go into 2013 … or he can try to slide it under the rug by saying it’s a one-off.


“I think it would be a big mistake to say it was a one-off.”


(Editing by Philip Barbara)


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The March of Robots Into Chinese Factories












Step into the factory of Chinese SUV and truck maker Great Wall Motors, and it’s easy to forget you’re in the world’s most populous country. Swiss-made robots pivot and plunge, stamping metal door frames and soldering them to the skeletal vehicle bodies of a mini-SUV called the Haval M4. The blue-smocked workers in yellow hard hats are few and far between here in Great Wall’s largest factory complex, located in Baoding, some 90 miles southwest of Beijing.


“With automation, we can reduce our head count and save money,” says Hao Jianjun, Great Wall’s general manager, who has invested $ 161 million into mechanizing four plants with 1,200 robots. The average price of a factory-floor robot is around $ 50,000 before installation. “Within three years, this cost will be completely paid for in savings from reduced worker wages,” says Hao. After the robots were added, the number of welders at Great Wall dropped from 1,300 to around 400.












edf60  econ china49  01inline  202 The March of Robots Into Chinese FactoriesIllustration by Dorothy Gambrell; Data: GavekalThe Automation Nations


Last year sales of industrial robots in China reached 22,577 units, up 51 percent over 2011. That puts China just behind Japan and South Korea, but ahead of Germany and the U.S., in the purchase of new robots. With robot sales quadrupling from 2006 to 2011, China is on track to become the world’s largest industrial cyborg market by 2014, predicts the Frankfurt-based International Federation of Robotics.


China’s car industry has led the automation wave, particularly at its joint ventures with General Motors (GM), Honda Motor (HMC), and Volkswagen (VOW). Consumer electronics, food and beverage processing, and the plastics and textile industries are following suit. “What we are seeing is robots increasing in a lot of industries where they are already common in the rest of the world,” says Yuchan Li, an analyst with economic consultancy GaveKal Research. “For China, there is still a lot of low-hanging fruit when it comes to automation.”


China is now an important market for robot makers such as Japan’s Fanuc, Germany’s Kuka and Siemens (SI), and Rockwell Automation (ROK) of the U.S. Swiss-based ABB (ABB) has chosen Shanghai to base its global robotics business and produce robotic systems for auto and electronics clients.


One factor driving the switch to robots is demographics. Next year China’s labor force will peak at 1 billion before starting to shrink, in part because of the nation’s one-child policy. Labor shortages are already common and are driving wage inflation, up around 20 percent annually in recent years. Beijing is encouraging automation by forcing up minimum wages. A rise in labor costs “ups the ante for manufacturing companies so they change their production processes and move up the value chain,” says Louis Kuijs, chief China economist at Royal Bank of Scotland (RBS) in Hong Kong.


9ec0c  econ china49  01  inline405 The March of Robots Into Chinese FactoriesImaginechinaWelding robots piece together a car at Great Wall’s Tianjin plant


For the textile industry, facing ever-narrower margins, automation may be the only alternative to shutting down or moving. While some factories relocated to lower-wage Cambodia and Vietnam, Hong Kong sweater maker Milo’s Knitwear International upgraded. After spending $ 1.9 million for 29 Japanese stitching machines, its Dongguan factory has reduced staff from 140 workers to six. Average wages of $ 450 a month had been rising 20 percent a year, says managing director Willy Lin. “Machines can run 24 hours a day, with very little downtime,” says Lin. “Without this improvement in efficiency, I wouldn’t be able to survive at all.”


Worker protests have sped up the automation trend, says Milo’s Lin. Labor unrest at Foxconn Technology Group, the iPad and iPhone contractor employing more than 1.4 million Chinese, has forced shutdowns at its facilities in the cities of Taiyuan and Zhengzhou. Those demonstrations followed a spate of suicides at its Shenzhen factory in 2010. Last year the company announced the ambitious goal of adding a million robots to its Chinese factories within three years. GaveKal’s Li estimates Foxconn will have at least 30,000 robots in China by yearend.


Finally, the level of precision required to make many high-end consumer electronics and other products now lies beyond the abilities of most humans. Mistakes can be very costly, points out Raymond Tsang, a partner at consultant Bain & Co. in Shanghai.


Workers have one consolation. With manufacturing wages still less than a 10th of those in the U.S., Chinese factories are unlikely to soon be as robot-dependent as those in developed countries. As product cycles shorten and customers put in smaller orders more often, people can still be shifted more quickly to new production roles, says Bain’s Tsang. In China, “a fully automated, human-less factory will still be hard to justify anytime in the near future.”


The bottom line: With robot sales in China up 51 percent last year to 22,577 units, the switch from low-wage shops to high-end producers is under way.


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Official: Syria moving chemical weapons components












WASHINGTON (AP) — U.S. and allied intelligence have detected Syrian movement of chemical weapons components in recent days, a senior U.S. defense official said Monday, as the Obama administration strongly warned the Assad regime against using them.


A senior defense official said intelligence officials have detected activity around more than one of Syria‘s chemical weapons sites in the last week. The defense official spoke on condition of anonymity because he was not authorized to speak publicly about intelligence matters.












Secretary of State Hillary Rodham Clinton, in Prague for meetings with Czech officials, reiterated President Barack Obama‘s declaration that Syrian action on chemical weapons was a “red line” for the United States that would prompt action.


“We have made our views very clear: This is a red line for the United States,” Clinton told reporters. “I’m not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


Syria said Monday it would not use chemical weapons against its own people. The Ministry of Foreign Affairs said Syria “would not use chemical weapons — if there are any — against its own people under any circumstances.”


Syria has been careful never to confirm that it has any chemical weapons.


The use of chemical weapons would be a major escalation in Assad’s crackdown on his foes and would draw international condemnation. In addition to causing mass deaths and horrific injuries to survivors, the regime’s willingness to use them would alarm much of the region, particularly neighboring states, including Israel.


At the White House, press secretary Jay Carney said, “We are concerned that in an increasingly beleaguered regime, having found its escalation of violence through conventional means inadequate, might be considering the use of chemical weapons against the Syrian people. And as the president has said, any use or proliferation of chemical weapons by the Syrian regime would cross a red line for the United States. “


Administration officials would not detail what that response might be.


Although Syria is one of only seven nations that have not signed the Chemical Weapons Treaty, it is a party to the 1925 Geneva Protocol that bans the use of chemical weapons in war. That treaty was signed in the aftermath of World War I, when the effects of the use of mustard gas and other chemical agents outraged much of the world.


Clinton didn’t address the issue of the fresh activity at Syrian chemical weapons depots, but insisted that Washington would address any threat that arises.


An administration official said the trigger for U.S. action of some kind is the use of chemical weapons or movement with the intent to use or provide them to a terrorist group like Hezbollah. The U.S. is trying to determine whether the recent movement detected in Syria falls into any of those categories, the official said. The administration official was speaking on condition of anonymity this person was not authorized to speak publicly about the issue.


The senior defense official said the U.S. does not believe that any Syrian action beyond the movement of components is imminent.


An Israeli official said if there is real movement on chemical weapons, it would require a response. He didn’t say what that might be and spoke on condition of anonymity pending a formal government response to the reports of the latest activities.


Israeli officials have repeatedly expressed concerns that Syrian chemical weapons could slip into the hands of Hezbollah or other anti-Israel groups, or even be fired toward Israel in an act of desperation by Syria.


Syria is believed to have several hundred ballistic surface-to-surface missiles capable of carrying chemical warheads.


Its arsenal is a particular threat to the American allies, Turkey and Israel, and Obama singled out the threat posed by the unconventional weapons earlier this year as a potential cause for deeper U.S. involvement in Syria’s civil war. Up to now, the United States has opposed military intervention or providing arms support to Syria’s rebels for fear of further militarizing a conflict that activists say has killed more than 40,000 people since March 2011.


Clinton said that while the actions of President Bashar Assad‘s government have been deplorable, chemical weapons would bring them to a new level.


“We once again issue a very strong warning to the Assad regime that their behavior is reprehensible, their actions against their own people have been tragic,” she said. “But there is no doubt that there’s a line between even the horrors that they’ve already inflicted on the Syrian people and moving to what would be an internationally condemned step of utilizing their chemical weapons.”


Activity has been detected before at Syrian weapons sites, believed to number several dozen.


Defense Secretary Leon Panetta said in late September the intelligence suggested the Syrian government had moved some of its chemical weapons in order to protect them. He said the U.S. believed that the main sites remained secure.


Asked Monday if they were still considered secure, Pentagon press secretary George Little declined to comment about any intelligence related to the weapons.


Senior lawmakers were notified last week that U.S. intelligence agencies had detected activity related to Syria’s chemical and biological weapons, said a U.S. intelligence official, speaking on condition of anonymity to discuss the closed-door meetings. All congressional committees with an interest in Syria, from the intelligence to the armed services committees, are now being kept informed.


“I can’t comment on these reports but I have been very concerned for some time now about Syria’s stockpiles of chemical weapons and its stocks of advanced conventional weapons like shoulder-launched anti-aircraft missiles,” said House intelligence committee Chairman Mike Rogers, R-Mich. “We are not doing enough to prepare for the collapse of the Assad regime, and the dangerous vacuum it will create. Use of chemical weapons by the Assad regime would be an extremely serious escalation that would demand decisive action from the rest of the world,” he added.


Syria is believed to have one of the world’s largest chemical weapons programs, and the Assad regime has said it might use the weapons against external threats, though not against Syrians. The U.S. and Jordan share the same concern about Syria’s chemical and biological weapons — that they could fall into the wrong hands should the regime in Syria collapse and lose control of them.


___


Klapper reported from Prague. Associated Press writers Josef Federman in Jerusalem, Albert Aji in Damascus and Matthew Lee, Kimberly Dozier, and Julie Pace in Washington contributed to this report.


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Chris Brown Returns To Twitter, Instragrams Photo Of Scantily Clad Rihanna












Breezy’s back with a bang.


Chris Brown has returned to Twitter, after deleting his account last Sunday following an expletive-laced online fight with comedian Jenny Johnson.












PLAY IT NOW: Rihanna Discusses Her Fashion Sense & Tattoos


While the “Don’t Wake Me Up” singer still boasts 7.7 million followers, he has yet to grace the Twittersphere with a post since reactivating his account on Saturday.


However, the 23-year-old has been active on his Instragram account (with a handle we can’t repeat – you’ve been warned!), posting a photo of himself smoking, while a scantily clad Rihanna lays next to him with the caption, “What would music today sound like if these kids didn’t exist?”


VIEW THE PHOTOS: Rihanna: Burning Up The Stage!


Rihanna hasn’t been shy about sharing photos of Chris either.


In the last week she’s posted multiple photos of her seemingly-on-again beau – one with Chris lying shirtless on a bed, as well as a shot of her hugging the singer with the caption, “I don’t wanna leave! Killed it tonight baby!!!”


Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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Obama salutes entertainers taking a Washington bow












WASHINGTON (Reuters) – Music legend Led Zeppelin was recognized on Sunday alongside entertainers from stage and screen for their contributions to the arts and American culture at the Kennedy Center Honors, lifetime achievement awards for performing artists.


The eclectic tribute in Washington, alternated between solemn veneration and lighthearted roasting of honorees Academy Award-winning actor Dustin Hoffman, wisecracking late-night talk show host David Letterman, blues guitar icon Buddy Guy, ballerina Natalia Makarova and Led Zeppelin.












“I worked with the speechwriters – there is no smooth transition from ballet to Led Zeppelin,” President Barack Obama deadpanned while introducing the honorees in a ceremony in the White House East Room.


Friends, contemporaries and a new generation of artists influenced by the honorees took the stage in tribute.


Dustin Hoffman is a pain the ass,” actor Robert DeNiro said in introducing Hoffman, the infamously perfectionist star of such celebrated films as “The Graduate” and “Tootsie.”


“And he inspired me to be a bit of a pain in the ass too,” DeNiro said with a big smile.


At a weekend dinner for the winners at the State Department, Secretary of State Hillary Clinton noted that the performing arts often requires a touch of diplomacy as she toasted Makarova, a dance icon in the former Soviet Union when she defected in 1970.


Tiler Peck of the New York City Ballet, who performed in “Other Dances,” one of Makarova’s signature roles, said she has studied her idol’s technique for years.


“This is a role she created,” Peck said.


Despite the president’s misgivings about his own speech, the performance at the Kennedy Center navigated the transition from refined ballet to gritty blues music when the spotlight turned to Guy, a sharecropper’s son who made his first instrument with wire scrounged from around his family’s home in rural Louisiana.


“He’s one of the most idiosyncratic and passionate blues greats, and there are not many left of that original generation…,” said Bonnie Raitt, who as an 18-year-old blues songstress was often the warm-up act for Guy.


George “Buddy” Guy, 76, was a pioneer in the Chicago blues style that pushed the sound of electrically amped guitar to the forefront of the music.


“You mastered the soul of gut bucket,” actor Morgan Freeman told the Kennedy Center audience. “You made a bridge from roots to rock ‘n roll.”


In a toast on Saturday night, former President Bill Clinton talked of Guy’s impoverished upbringing and how he improvised a guitar from the strands of a porch screen, paint can and his mother’s hair pins.


“In Buddy’s immortal phrase, the blues is ‘Something you play because you have it. And when you play it, you lose it.’”


It was a version of the blues that drifted over the Atlantic to Britain and came back in the finger-rattling rock sound of Led Zeppelin.


Jimmy Page, 68, was the guitar impresario who anchored the compositions with vocalist Robert Plant, 64, howling and screeching out the soul. Bassist/keyboardist John Paul Jones, 66, rounded out the band with drummer John Bonham, who died in 1980.


The incongruity of the famously hard-partying rock stars sitting in black tie under chandeliers at a White House ceremony was not lost on Obama.


“Of course, these guys also redefined the rock and roll lifestyle,” the president said, to laughter and sheepish looks from the band members.


“So it’s fitting that we’re doing this in a room with windows that are about three inches thick – and Secret Service all around,” Obama said. “So, guys, just settle down.”


The gala will be aired on CBS television on December 26.


(Reporting By Patrick Rucker and Mark Felsenthal)


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Clinton in Prague to lobby for Westinghouse nuclear bid












PRAGUE (Reuters) – U.S. Secretary of State Hillary Clinton will seek to convince Czech leaders of the advantages of picking U.S. firm Westinghouse over a Russian rival as the contractor for a $ 10 billion nuclear reactor project in meetings in Prague on Monday.


U.S. officials traveling with Clinton to Prague said the Temelin nuclear power project could bring as many as 9,000 jobs to the United States and would help diversify the Czech Republic‘s energy supply away from Russia.












Majority state-owned Czech firm CEZ applied on Friday to build two new blocks at its 2,000 megawatt Temelin nuclear power plant, in what would be the European country’s biggest energy deal.


Westinghouse, a unit of Japanese firm Toshiba Corp, is competing with Russia’s Atomstroyexport, which is bidding in a consortium with a Russian-owned Czech group.


U.S. officials said formal negotiations between the two bidders and the Czech government are expected to start in December, with a decision on the contractor expected in the spring.


Clinton is due to meet Prime Minister Petr Necas and Foreign Minister Karel Schwarzenberg on Monday morning.


“There will be the opportunity for the Secretary to support … Westinghouse,” a senior State Department official told reporters.


“It could be great in lots of ways – for American jobs, American companies, for energy security and diversity in the Czech Republic, for jobs in the Czech Republic and for a scientific and innovation partnership with the United States.”


Clinton would stress Westinghouse’s safety record given concerns about nuclear reactors after the Fukushima disaster in Japan last year, he said.


The U.S. side will also stress the advantage of reducing the Czech Republic’s reliance on Russia for energy. According to U.S. officials, the country currently gets 60 percent of its oil, 70 percent of its gas, and 100 percent of its nuclear reactor fuel from Russia.


“We think there’s an awful lot to be said for this (choosing Westinghouse) in terms of energy security and diversifying sources.”


Clinton will also discuss energy security with EU officials in Brussels on Wednesday.


CEZ, central Europe’s biggest energy group, with a market capitalization of $ 18.2 billion, threw out a bid from French firm Areva in October, because it failed to meet “crucial requirements.”


Clinton’s visit to Prague follows one by U.S. Assistant Secretary of Commerce Nicole Lamb-Hale last week. Lamb-Hale said the U.S. Export-Import Bank was interested in financing the deal if Westinghouse were picked.


The Czech Republic’s bid to expand its nuclear capacity has run into opposition from neighbors Austria and Germany. Clinton will share a conference table with the foreign ministers of these countries, as well as with Russia, when she attends a meeting of the NATO military alliance in Brussels on Tuesday and Wednesday.


Many Czech officials fear an over reliance on Russian energy will put their country under too much influence from its former communist master. After the end of the Cold War and the collapse of the former Soviet Union, Prague became a close ally of the United States.


The Russian bidders have sought to allay Czech fears about Moscow and stressed that there would be a high participation rate by domestic firms if they won the tender.


(Editing by Stacey Joyce)


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UN net regulation talks kick off
























A UN agency is trying to calm fears that the internet could be damaged by a conference it is hosting.


Government regulators from 193 countries are in Dubai to revise a wide-ranging communications treaty.


Google has warned the event threatened the “open internet”, while the EU said the current system worked, adding: “If it ain’t broke, don’t fix it.”


But the agency said action was needed to ensure investment in infrastructure to help more people access the net.


“The brutal truth is that the internet remains largely [the] rich world’s privilege, ” said Dr Hamadoun Toure, secretary-general of the UN’s International Telecommunications Union, ahead of the meeting.


“ITU wants to change that.”


Internet governance


The ITU traces its roots back to 1865, pre-dating the United Nations. Back then the focus was on telegrams, but over ensuing decades governments have extended its remit to other communications technologies.


It helped develop the standards that made sure different countries’ telephone networks could talk to each other, and continues to allocate global radio spectrum and communication satellite orbits.


The current event – the World Conference on International Telecommunications (Wcit) – marks the first time it has overseen a major overhaul of telecommunication regulations since 1988.


Continue reading the main story

Wcit key facts


Regulators and other delegates have until 14 December to agree which proposals to adopt.


More than 900 changes to the International Telecommunication Regulations have been put forward.


The ITU highlights proposals to block spam messages, cut mobile roaming fees and prioritise emergency calls as some of the event’s key topics.


There have been accusations of “secrecy” because the ITU had left it to individual countries to publish proposals rather than release them itself.


Two sites – Wcitleaks and .nxt – have gathered together related documents from a variety of sources but many are still unpublished.


The resulting treaty will become part of international law, however the ITU itself recognises that there is no legal mechanism to force countries to comply.



The ITU says there is a need to reflect the “dramatically different” technologies that have become commonplace over the past 24 years.


But the US has said some of the proposals being put forward by other countries are “alarming”.


“There have been proposals that have suggested that the ITU should enter the internet governance business,” said Terry Kramer, the US’s ambassador to Wcit, last week.


“There have been active recommendations that there be an invasive approach of governments in managing the internet, in managing the content that goes via the internet, what people are looking at, what they’re saying.


“These fundamentally violate everything that we believe in in terms of democracy and opportunities for individuals, and we’re going to vigorously oppose any proposals of that nature.”


He added that he was specifically concerned by a proposal by Russia which said member states should have “equal rights to manage the internet” – a move he suggested would open the door to more censorship.


However – as a recent editorial in the Moscow Times pointed out – Russia has already been able to introduce a “black list” of banned sites without needing an international treaty.


The ITU’s leader is also playing down suggestions that Russian demands will see him gain powers currently wielded by US-based bodies such as the internet name regulator Icann.


“There is no need for the ITU to take over the internet governance,” said Dr Toure following Mr Kramer’s comments.


Pay to stream


One of the other concerns raised is that the conference could result in popular websites having to pay a fee to send data along telecom operators’ networks.


The European Telecommunications Network Operators’ Association (Etno) – which represents companies such as Orange, Telefonica and Deutsche Telekom – has been lobbying governments to introduce what it calls a “quality based” model.


This would see firms face charges if they wanted to ensure streamed video and other quality-critical content download without the risk of problems such as jerky images.


Continue reading the main story

Overseeing the internet


No one organisation is “in charge” of the internet, but the following groups help ensure it continues to function:


Internet Engineering Task Force (IETF)


Charged with producing technical documents to influence the way people design, use and manage the net.


Internet Corporation for Assigned Names and Numbers (Icann)


Defines policies for how the domain name and IP (internet protocol) address number systems should run to ensure the net’s system of unique identifiers remains stable and secure.


Internet Assigned Numbers Authority (Iana)


Assigns net address endings (generic top-level domain names), and coordinates the allocation of IP numbers. It currently functions as a department of Icann.


Internet Society (Isoc)


Lobbies governments to ensure the internet’s technical standards are open and non-proprietary, so that anyone who uses an application on it in a certain way has the same experience. It also promotes freedom of expression.


Internet Architecture Board (IAB)


Oversees the process used to create internet standards and considers complaints about the way they are executed.


Internet Governance Forum (IGF)


An UN-created forum in which governments, businesses, universities and other organisations with a stake in the internet can share dialogue.



Etno says a new business model is needed to provide service providers with the “incentive to invest in network infrastructure”.


A leaked proposal by Cameroon which talks of network operators deserving “full payment” has been interpreted by some as evidence that it is sympathetic to the idea.


Mr Kramer has suggested that “a variety of nations in the Arab states” also supported the idea.


However, the US and EU are against it which should theoretically stop the proposal in its tracks.


The ITU has repeatedly said that there must be common ground, rather than just a majority view, before changes are introduced to the treaty.


“Voting in our jargon means winners and losers, and we cannot afford that,” Dr Toure told the BBC.


Rejecting regulation


Such assurances have failed to satisfy everyone.


The EU’s digital agenda commissioner, Neelie Kroes, has called into question why the treaty needs to refer to the net.


“The internet works, it doesn’t need to be regulated by ITR treaty,” she tweeted.


Vint Cerf – the computer scientist who co-designed some of the internet’s core underlying protocols and who now acts as Google’s chief internet evangelist – has been even more vocal, penning a series of op-ed columns.


“A state-controlled system of regulation is not only unnecessary, it would almost invariably raise costs and prices and interfere with the rapid and organic growth of the internet we have seen since its commercial emergence in the 1990s,” he wrote for CNN.


Google itself has also run an “open internet” petition alongside the claim: “Only governments have a voice at the ITU… engineers, companies, and people that build and use the web have no vote.”


However, the ITU has pointed out that Google has a chance to put its views forward as part of the US’s delegation to the conference.


“They are here, and they’re telling everyone that it’s a closed society,” said Dr Toure when asked about the firm’s campaign.


“We will challenge them here again to bring their points on the table. The point that they are bringing – which is internet governance – it’s not really a place for discussion [of that] here.


“Therefore we believe they will find themselves in an environment completely different from what they were expecting.”


BBC News – Business


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