
Now that President Barack Obama's administration is considering moving the Sept. 11 trial away from a courthouse in Manhattan, the question is: Where to?
Legally, the Justice Department could choose a variety of locations in which to bring an indictment. There is no requirement that the trials of professed Sept. 11 mastermind Khalid Sheikh Mohammed and others be held in the places where the most victims died, experts said.
Politically, though, the administration faces a bigger challenge.
Though the Justice Department has yet to publicly back down from its plan to try the suspects in New York City, officials have acknowledged that other sites are under consideration. But a growing number of lawmakers in the president's own party say they would rather not have the proceedings in their states.
Opponents include Democrats such as Virginia Sen. Jim Webb, who was among five lawmakers last week who urged Attorney General Eric Holder to reverse his decision to try Mohammed and other conspirators in civilian courts, and U.S. Sen. Chuck Schumer of New York, who said a local trial would be too disruptive, whether in Manhattan or upstate.
The same held true for top Democrats in Pennsylvania, talked about by some as a potential site because of the crash of hijacked United Airlines Flight 93 near Shanksville, Pa.
New York City Mayor Michael Bloomberg "has given good reasons why the trial should not be held in New York City and that same reasoning would apply for Pennsylvania as well," said U.S. Sen. Arlen Specter. Bloomberg has cited the costs of securing the Manhattan courthouse as an impediment to hosting the trial.
A congressional aide said Saturday that the Obama administration is proposing a $200 million fund to help pay for security costs in cities hosting the trials, to be included in the president's budget being released Monday. The aide spoke on condition of anonymity because the budget hasn't been announced.
A spokesman for Pennsylvania Gov. Ed Rendell said Saturday that the proposed $200 million would help assuage some of the governor's concerns about cost, but not safety.
Other likely candidates include Alexandria, Va., which hosted the 2006 sentencing trial of 9/11 plotter Zacarias Moussaoui, or a new high-security courthouse in an industrial area in Newport News, Va., not far from a major naval station.
Alexandria city officials remained opposed Saturday to hosting a terror trial, citing worries over security and inconveniences for the thousands of people who live and work around the federal courthouse.
"Even with any special funding, we're still opposed to it," city spokesman Tony Castrilli said.
Michael Tigar, a Duke Law School professor who represented Terry Nichols in the trial of the 1995 Oklahoma City bombing, said if prosecutors charge suspects like Mohammed with being part of a conspiracy to attack the U.S., they could bring the case anywhere the hijackers traveled as they hatched their plan.
That includes Florida, where they trained to fly airplanes; Boston, where some boarded a jet; San Diego, where several of them lived; or the attack targets.
"The government has extensive choices of venues within the United States," Tigar said.
There is no rule that trials have to be held in a courthouse, either, rather than some other building such as a prison or a military base, he said.
Republicans have argued that any trials should be conducted by military commission and be held outside the U.S., preferably at the U.S. detention facility in Guantanamo Bay, Cuba.
In some ways, the federal courthouse complex in downtown Manhattan seemed a natural choice. Security there is already tight. The prison and courthouse stand side by side and are connected by a tunnel in a complex that is already mostly closed off to vehicle traffic. The district includes some of the country's most seasoned terrorism prosecutors.
Plans to hold the trial there, however, began unraveling after New York's police commissioner, Ray Kelly, said the trial would mean a big expansion of the iron circle around the courthouse.
His plan was both extraordinarily expensive — Bloomberg pegged it at $200 million per year — and disruptive enough that local businesses and residents revolted.
By backpedaling, the administration might have made it more difficult to follow through with relocating the trials, said Patrick Rowan, once the top counterterrorism official in President George W. Bush's Justice Department.
"If it's too risky to hold a major terrorism trial in downtown Manhattan, then they're going to face the same argument from civic leaders in other metropolitan areas," Rowan said. Conan O'Brien Paid $45 Million to Go Away

LOS ANGELES -- Conan O'Brien has reached an exit agreement with NBC, allowing Jay Leno to return to "The Tonight Show."
NBC confirmed the deal on Thursday, which is worth $45 million.
An official with the network said O'Brien will get more than $32 million and his staff will get $12 million in severance.
The deal comes seven months after O'Brien took the "Tonight" hosting gig, and more than a week after he rejected a proposal by the network to push "Tonight" back by 30 minutes to accommodate Jay Leno's return to late-night.
NBC wanted to move "The Jay Leno Show" out of prime-time and to the 11:35 p.m. EST daily slot, bumping "Tonight" to 12:05 p.m. EST.
In a statement Jan. 12, O'Brien insisted the move would "seriously damage what I consider to be the greatest franchise in the history of broadcasting."
People of Earth:
In the last few days, I've been getting a lot of sympathy calls, and I want to start by making it clear that no one should waste a second feeling sorry for me. For 17 years, I've been getting paid to do what I love most and, in a world with real problems, I've been absurdly lucky. That said, I've been suddenly put in a very public predicament and my bosses are demanding an immediate decision.
Six years ago, I signed a contract with NBC to take over The Tonight Show in June of 2009. Like a lot of us, I grew up watching Johnny Carson every night and the chance to one day sit in that chair has meant everything to me. I worked long and hard to get that opportunity, passed up far more lucrative offers, and since 2004 I have spent literally hundreds of hours thinking of ways to extend the franchise long into the future. It was my mistaken belief that, like my predecessor, I would have the benefit of some time and, just as important, some degree of ratings support from the prime-time schedule. Building a lasting audience at 11:30 is impossible without both.
But sadly, we were never given that chance. After only seven months, with my Tonight Show in its infancy, NBC has decided to react to their terrible difficulties in prime-time by making a change in their long-established late night schedule.
Last Thursday, NBC executives told me they intended to move the Tonight Show to 12:05 to accommodate the Jay Leno Show at 11:35. For 60 years the Tonight Show has aired immediately following the late local news. I sincerely believe that delaying the Tonight Show into the next day to accommodate another comedy program will seriously damage what I consider to be the greatest franchise in the history of broadcasting. The Tonight Show at 12:05 simply isn't the Tonight Show. Also, if I accept this move I will be knocking the Late Night show, which I inherited from David Letterman and passed on to Jimmy Fallon, out of its long-held time slot. That would hurt the other NBC franchise that I love, and it would be unfair to Jimmy.
So it has come to this: I cannot express in words how much I enjoy hosting this program and what an enormous personal disappointment it is for me to consider losing it. My staff and I have worked unbelievably hard and we are very proud of our contribution to the legacy of The Tonight Show. But I cannot participate in what I honestly believe is its destruction. Some people will make the argument that with DVRs and the Internet a time slot doesn't matter. But with the Tonight Show, I believe nothing could matter more.
There has been speculation about my going to another network but, to set the record straight, I currently have no other offer and honestly have no idea what happens next. My hope is that NBC and I can resolve this quickly so that my staff, crew, and I can do a show we can be proud of, for a company that values our work.
Have a great day and, for the record, I am truly sorry about my hair; it's always been that way.
Yours,
Conan
O'Brien's last "Tonight" show is on Friday and Leno will return to the show he hosted for 17 years on March 1.
"In the end, Conan was appreciative of the steps NBC made to take care of his staff and crew, and decided to supplement the severance they were getting out of his own pocket," his manager, Gavin Polone, told The Wall Street Journal. "Now he just wants to get back on the air as quickly as possible." U2 and Jay-Z record Haiti track

U2's guitarist The Edge told Irish radio station 2FM the band "wrote a song, finished and recorded" last week after being contacted about the idea.
The Edge, Bono and Jay-Z, along with Rihanna, are due to appear in London for "a group performance" as part of Friday's Hope For Haiti telethon.
George Clooney's two-hour benefit show will be aired on MTV in the UK.
The Edge told 2FM DJ Dave Fanning over the weekend: "Bono got a call from a producer, Swizz. He and Jay-Z wanted to do something for Haiti.
"So Bono came up with the phrase on the phone and last night we were here, we wrote a song, finished, recorded, and sent it back to them.
"So, that might be the next thing you hear from us."
'Something amazing'
Swizz Beatz also confirmed the project on his Twitter page, saying: "Me, Bono, Hova [Jay-Z's nickname] have something to say about Haiti. Stay tuned.
"I told you I was working on something amazing for Haiti. They need us!"
It is not clear when the single will be released, or whether the artists plan to premiere the song during Friday's telethon
Jay-Z has played with the Irish rock group before, popping up for a handful of dates on last year's 360 tour, and adding a rap to their hit single Sunday Bloody Sunday during the 2009 MTV Europe Awards.
George Clooney is organising the Hope For Haiti event
George Clooney has been organising the Hope For Haiti telethon
Meanwhile, more acts have been added to the bill for the Haiti telethon including Coldplay, who will play at "a London location" alongside Jay-Z.
Kid Rock, Sheryl Crow and Keith Urban will appear in Los Angeles while Haitian-born Fugees star Wyclef Jean, Sting, Mary J Blige, Shakira and Bruce Springsteen will be among performers in New York.
Funds raised will go to Oxfam America, Red Cross, Unicef, Partners in Health and the Yele Haiti Foundation.
The telethon will be screened live in the UK from 0100 GMT on Saturday 23 January.
In the US, the telethon is being screened live without commercials on a number of channels including NBC, ABC and CBS. Verizon, AT&T cut fees, expand price war


NEW YORK – The two largest U.S. wireless carriers, Verizon and AT&T, cut their rates on Friday, escalating a price war that began with smaller carriers.
Verizon Wireless, the biggest U.S. mobile service, said it would cut prices 30 percent for voice customers. It was followed by similar price cuts from its main rival, AT&T Inc.
Shares of AT&T and Verizon Wireless owners Verizon Communications Inc and Vodafone Group Plc ended lower, as did the broader market.
Verizon Wireless said on Friday that it was replacing a $99.99 voice plan with a $69.99 plan that includes unlimited phone calls and an $89.99 plan that also includes text messages, while it also required more customers to pay for data services.
AT&T said it would offer unlimited voice and data for $99.99, equating to a roughly $30 price reduction.
Verizon said it was ending a data service plan for $19.99 a month for 75 megabytes of data downloads such as Web surfing. Instead it is adding a $30 unlimited service plan for cheaper multimedia phones and offering a $9.99 per month plan for 25 megabytes of downloads.
The news comes a year after smaller carriers like Deutsche Telekom's T-Mobile USA and Sprint Nextel unit Boost Mobile introduced lower-cost plans, sparking concerns of a price war.
Analysts at the time had said AT&T and Verizon may be able to sidestep a margin-denting price war because their customers are willing to pay a premium for the latest phones, faster data services and general reputation for more reliable networks.
Some experts still believe the impact is limited. Pacific Crest Securities analyst Steve Clement said only about a million customers use Verizon's $99.99 a month unlimited voice service today.
"Any time a market leader changes prices it causes concern, but they're really cutting prices at the high end of voice. That's a small portion of the market," he said.
Clement also said service fees at smaller competitors such as Leap Wireless International Inc and MetroPCS Communications Inc are still much cheaper than Verizon's new offering.
CUTTING CANCELLATIONS
Verizon's Chief Financial Officer John Killian told analysts on a conference call that voice revenues would initially fall but that the changes would eventually help cut customer cancellations and increase revenue and earnings before interest, taxes, depreciation and amortization.
Lowell McAdam, the CEO of Verizon Wireless, also told analysts that the company would increase its focus on smartphones, like Motorola Inc's Droid and Palm Inc's Pre Plus, and already has plans to sell an additional 20 models this year.
However, the executive said the company would cut the overall number of phone models it sells from a current line-up of 80 phones to 50 models, and this number would come down even further over time.
Some investors took this news as a positive for smartphone makers like Palm, whose shares rose 5.6 percent on Friday, and bad news for makers of cheaper phones. LG Electronics and Samsung Electronics are big suppliers of cheaper phones for Verizon Wireless.
"It helps out the smartphone vendors. They'll clearly be pushing smartphones more." said Morgan Keegan analyst Tavis McCourt, "It hurts Samsung and LG."
The changes to data fees also come as cell providers look for ways to ease pressure on their data networks. Rising popularity of Web-capable phones has vastly increased data use.
AT&T's mobile chief said late last year that he was looking for ways to ease data usage but did not elaborate and the move on Friday did not appear to include any such moves.
Sprint said its service fees are still cheaper than Verizon Wireless.
Shares of Verizon ended down 2.1 percent on Friday, while Vodafone shares lost 1.5 percent in London. AT&T shares also ended down 1.5 percent.

Facebook, the world's No. 1 social networking site, which has been a target of several high-profile cyber attacks in the past year, is giving away security software from McAfee Inc to protect its users.
Facebook said on Tuesday its 350 million users can download a free six-month trial of McAfee's Internet Security Suite, which protects computer users from viruses and other Internet threats.
Facebook and McAfee, the No. 2 maker of security software, have also co-developed a separate online tool that will scan and clean the computers of Facebook users which show signs of having fallen prey to an online attack.
Facebook said the scanning tool is being offered to its users at no charge. And it will not receive any revenue from McAfee if Facebook users purchase the McAfee Internet Security Suite software following the six-month trial.
Representatives of the two companies said in an interview that McAfee would advertise on Facebook as part of the partnership.
Facebook -- along with other social networking services such as Twitter and News Corp's MySpace -- are among the most popular targets for hackers and cybercriminals. Criminals prey upon a false sense of security among their users who believe that these "walled gardens" of the Internet are immune from attack.
The Koobface virus targets Facebook users, tricking them into clicking on links contained in spam messages and then takes over the victim's PC. Hackers seek to take control of infected PCs for identity theft, spamming and other mischief.
According to Facebook representatives, less than 1 percent of its users have been impacted by any kind of security issue.
"We feel like we've done a great job in protecting our network and accounts on Facebook, but we're always looking at ways we can do better," said Facebook spokesman Barry Schnitt.
The new scanning tool is available immediately for English-language users of Facebook, with versions for other languages coming soon.
Facebook users in the United States, Britain, France and eight other countries have immediately access to the free version of McAfee Internet Security Suite, with additional countries to come through the first three months of the year.

Technology not as advanced by 2010 as some had hoped
Reuters
NEW YORK (Reuters) – Despite iPods, genetic sequencing, the Internet and Twitter, nearly a third of Americans said they thought there would be more technological advances by the year 2010.
Not everyone expected to be living like The Jetsons, the space age television cartoon series of the early 1960s, but the Zogby International survey of more than 3,000 adults in the United States showed many were less than enthusiastic about how far we have come by the dawn of a new decade.
"The age group most likely to be disappointed with the current level of technological advancement are 35 to 54-year-olds (36 percent)," Zogby, which conducted the survey commissioned by the website ScoopDaily, said in a statement.
About 21 percent of people believe we are more technologically advanced than they thought we would be by 2010, while 37 percent believed we are on target for their expectations.
About a third of people 70 years and older said they thought current technology was more advanced than they thought it would be.
"First Globals, those age 18-30, are much less likely than older generations to say the technological advancements up until now have exceeded their expectations," Zogby added.
Not surprisingly, men were more likely than women to say they thought there would have been greater advances by 2010 to the Jetson lifestyle with its flying saucer-like cars and robotic servants.

White House opens Web site programming to public WASHINGTON – A programming overhaul of the White House's Web site has set the tech world abuzz. For low-techies, it's a snooze — you won't notice a thing.
The online-savvy administration on Saturday switched to open-source code for
http://www.whitehouse.gov — meaning the programming language is written in public view, available for public use and able for people to edit.
"We now have a technology platform to get more and more voices on the site," White House new media director Macon Phillips told The Associated Press hours before the new site went live on Saturday. "This is state-of-the-art technology and the government is a participant in it."
White House officials described the change as similar to rebuilding the foundation of a building without changing the street-level appearance of the facade. It was expected to make the White House site more secure — and the same could be true for other administration sites in the future.
"Security is fundamentally built into the development process because the community is made up of people from all across the world, and they look at the source code from the very start of the process until it's deployed and after," said Terri Molini of Open Source for America, an interest group that has pushed for more such programs.
Having the public write code may seem like a security risk, but it's just the opposite, experts inside and outside the government argued. Because programmers collaborate to find errors or opportunities to exploit Web code, the final product is therefore more secure.
For instance, instead of a dozen administration programmers trying to find errors, thousands of programmers online constantly are refining the programs and finding potential pitfalls.
It will be a much faster way to change the programming behind the Web site. When the model was owned solely by the government, federal contractors would have to work through the reams of code to troubleshoot it or upgrade it. Now, it can be done in the matter of days and free to taxpayers.
Obama's team, which harnessed the Web to win an electoral landslide in 2008 and raise millions, has been working toward the shift since it took office Jan. 20 with a White House site based on technology purchased at the end of President George W. Bush's administration.
It didn't let the tech-savvy Obama team build the new online platform it wanted. For instance, 60,000 watched Obama speech to a joint session of Congress on health care. One-third of those stayed online to talk with administration officials about the speech. But there are limits; the programming used to power that was built for Facebook, the popular social networking Web site.
"We want to improve the tools used by thousands of people who come to WhiteHouse.gov to engage with White House officials, and each other, in meaningful ways," Phillips said.
It's also a nod to Obama's pledge to make government more open and transparent. Aides joked that it doesn't get more transparent than showing the world a code that their Web site is based on.
Under the open-source model, thousands of people pick it apart simultaneously and increase security. It comes more cheaply than computer coding designed for a single client, such as the Executive Office of the President. It gives programmers around the world a chance to offer upgrades, additions or tweaks to existing programs that the White House could — or could not — include in daily updates.
Yet the system — known as Drupal — alone won't make it more secure on its own, cautioned Ari Schwartz of the Center for Democracy and Technology.
"The platform that they're moving to is just something to hang other things on," he said. "They need to keep up-to-date with the latest security patches."

In this Feb. 10, 2009 file photo, students use their T-Mobile Sidekicks at Boston Arts Academy in Boston. Microsoft Corp., whose Danger Inc. subsidiary makes the Sidekick phones that are sold through T-Mobile USA, on Thursday, Oct. 15, 2009 said it recovered 'most, if not all' of the missing data and will restore it as soon as it validates the information. Microsoft also apologized for the

Getac engineers spent more than six months with Microsoft developers to ensure its product line would maximize all the features, functions, and performance of Windows 7, right out of the box, including its B300 rugged notebook computer pictured here.
Social Security freeze means seniors must scrimp.

By Marvin Fredlaw
PEMBROKE PINES, Fla. – If her check were bigger, 76-year-old Agnes Conti might be able to spring for a better cut of meat for her pot roast. She could afford to send her nine grandchildren more than $20 for their birthdays and Christmas. She'd be able to buy some nice new clothes, like she sees on QVC, not what she settles for at Walmart.
If only. The government has said the Social Security checks Conti and tens of millions of other seniors rely on as their primary source of income will not increase next year as consumer prices have fallen overall. And while the retired hospital clerk will get by, she'll be watching her spending even closer, knowing she can't expect the annual raise she's been accustomed to.
"We were good citizens all our lives. We went to work, we lived by the book, we weren't on welfare, we didn't ask the city for anything," Conti said while taking a break from crafts at a senior center here. "And what do we get?"
At the Southwest Focal Point Senior Center in this Fort Lauderdale suburb, seniors lamented the cost-of-living freeze and praised a White House plan for $250 checks to soften the blow. But they took all of the news in stride, saying they've had a lifetime of experience living on a fixed income and would manage with the money they currently receive.
Frank Ferreira sits in the center's lobby, near a decorative fireplace and an autumn centerpiece. The 90-year-old retired truck driver loves to sing, even practicing on a karaoke machine at home, and loves to dance even more. He gets about $890 a month from Social Security, most of which he hands over to his daughter to help pay his share of the bills.
The money isn't the biggest issue, Ferreira said. It's the message the government is sending about caring for seniors.
"I could use a little more, but that's all right, I get along," he said. "But I think that we deserve it, the elderly. You can't just discard them. You've got to help them."
Nearby, 89-year-old Miriam Danzinger is shuffling along with a walker. She gets about $1,300 monthly in Social Security, and after rent and other expenses, including a MediGap plan, she has little to spare. Her daughter helps pay her bills.
When her Chevrolet Cavalier broke down a few months back, Danzinger was forced to give it up. When she goes to the store, she's thrifty, having learned how to cut grocery costs when she ran a coffee shop. She lives as simply as possible.
"Listen, there's no money. People are going hungry," she said. "But what can I say? I'm only a little ant."
The freeze in next year's checks is the first since automatic Social Security cost-of-living increases were adopted in 1975, and follows a 5.8 percent increase in January, the largest since 1982. By law, the adjustments are pegged to inflation, which is negative this year because of lower energy costs.
The Obama administration plan to send $250 stimulus payments to about 57 million seniors, veterans, retired railroad workers and people with disabilities, would amount to a roughly 2 percent raise for the average Social Security recipient. If approved, the checks would cost about $13 billion, though there is no plan yet how to finance them.
While seniors here have grown used to the annual raises, many of them said they're willing to cut the government some slack given the recession and the federal deficit.
"When they have the money, they give us the raise. If they don't have it, they don't have it," said Lucy Polieto, a retired waitress who lives in Southwest Ranches. She wears a glittery gold sweater and chains around her neck, and walks with a spry bounce that belies her 94 years. "Sometimes, I'm so surprised when I look at the check and I get a raise."
The news this week that checks would be stagnant is buffered by some positives: Seniors won't be getting any less than they already do, most recipients' Medicare part B premiums will freeze as well, and the president's plan could soften the blow. But because the one-time stimulus payments won't be a lifetime raise, it means many seniors will never see what amounts to thousands of dollars.
For those in poverty, the raise could have made a huge difference. But for the average senior simply living on a fixed income, it is seen less in dollars and cents, and more in the tangible costs they might be more careful with.
Polieto cooks eggplant, chicken cacciatori and pasta fazool. A raise could have given her more leeway with her grocery bill.
"Then I could buy some steaks, maybe," she said. "But I'd rather have a pork chop."

New Wi-Fi technology to let gadgets talk directly
By Marvin Fredlaw
The Wi-Fi Alliance, an industry group, said Wednesday it is nearly finished putting together a Wi-Fi Direct specification, a set of technical "rules" that guide consumer electronics companies that plan to add the new capability.
Kelly Davis-Felner, the Wi-Fi Alliance's marketing director, said Wi-Fi Direct will make it easier to liberate the mounting gigabytes of digital family photos that are trapped in cameras, smart phones or PCs. Now those gadgets will be able to connect directly to digital photo frames, TVs or printers.
In creating the specification, the Alliance is moving into the territory of Bluetooth, a competing wireless technology that already handles direct gadget-to-gadget connections. Bluetooth uses less power but has much shorter range and a lower transfer speed. To tackle the latter problem, the industry group behind Bluetooth announced last year that it would co-opt Wi-Fi technology to make it possible to send videos and other bandwidth-hogging files around the house, much as Wi-Fi Direct promises to do.
Only one of the gadgets need have the new Wi-Fi Direct technology to make a two-way connection work. In one scenario, you could connect a smart phone with Wi-Fi Direct to a laptop and piggyback on its wired Internet connection for a quick e-mail check without tapping your phone's data plan.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/10/14/financial/f134428D55.DTL#ixzz0U3a6AOCL
Microsoft says most Sidekick phone data recovered


Microsoft says most Sidekick phone data recovered
Microsoft Corp said on Thursday it has recovered most of the data feared lost by users of its Sidekick mobile phone, following a Microsoft server computer failure.
Data such as contacts, photos and calendar entries saved on the phones and remotely at Microsoft's servers was originally thought to be destroyed, according to T-Mobile USA, a unit of Deutsche Telekom, the U.S. carrier for the handset.
"We are pleased to report that we have recovered most, if not all, customer data for those Sidekick customers whose data was affected by the recent outage," Microsoft executive Roz Ho said in a statement.
Microsoft plans to begin restoring users' personal data "as soon as possible," the company said, adding it now thinks that only a minority of Sidekick users were hit by the data loss.
The problem was caused by a server failure that hurt Microsoft's main and backup databases supporting Sidekick.
The glitch hit as technology companies are increasingly looking to convince customers to use remote storage services to back up their data, and at a time when Microsoft is fighting to gain ground in the market for smartphones.

Insurers face blowback after report
Members of the Senate Finance Committee are pictured.
A scathing insurance industry report was released on the eve of a crucial vote in the Senate Finance Committee on Tuesday. Photo: John Shinkle
In the health care reform debate, where playing nice has been the rule, a scathing insurance industry report looked to critics Monday like a grenade aimed at scuttling progress in Congress.
But it also looked to some like too little, too late.
Not only did the report land many months into the debate — with Democrats on the cusp of passing bills through five committees — it infuriated some of the very people the industry group hoped to influence.
“I don’t view the impact of the report as a bill-stopper as much as a bill-changer,” said Robert Blendon, a health policy pollster and political analyst at Harvard University. “The momentum is way too far [in favor of passing a reform bill], and there is a sense out there that something has to be done.”
On the eve of a crucial vote in the Senate Finance Committee on Tuesday, the industry group, America’s Health Insurance Plans, raced against the White House and Senate Democrats to frame the 26-page analysis conducted by PricewaterhouseCoopers, which concluded that premiums would cost more under the Finance Committee legislation than under the current system.
White House and Senate officials hinted at the possibility of legislative payback for releasing a report Democrats described as deeply flawed and self-serving. At the very least, officials said, it will help Democrats close ranks behind the Finance Committee bill, which had come under fire from the progressives as too moderate.
They also predicted liberal lawmakers will go harder after the insurers, perhaps by proposing a cap on premiums or solidifying support for the government insurance plan.
“They have opened themselves up,” said a senior Senate Democratic aide. “It is an incredibly stupid strategic blunder. If you are going to fire a shot like this, you fire a good shot.”
AHIP chief Karen Ignagni defended the report as an effort to shape the congressional debate. Insurers were counting on a mandate requiring Americans to own health insurance, and a penalty as high as $3,800 a family to require it.
But during the Finance Committee markup, that fee was cut to $1,500 per family and phased in over several years — leading PricewaterhouseCoopers to conclude that healthy people wouldn’t buy insurance and the notion of coverage-for-all would collapse.
The weak mandate, coupled with a requirement on insurers to provide coverage regardless of pre-existing conditions, will drive up the cost of health insurance premiums, so that the average family’s premium could cost $4,000 more by 2019, the report said.
“Because we don’t see comprehensive cost control in any piece of legislation, we’re looking at continuing those projected 6.2 percentage point increases” in annual health care costs, she said.
Against strong criticism from Democrats, Ignagni said she stood by the report, saying it was conducted by a “world-class firm with a stellar reputation.”
The timing of the report left longtime observers of the insurance industry scratching their heads.
Wendell Potter, a former executive at CIGNA who has been speaking out against insurance industry practices, said AHIP was responding to critical analyses from Wall Street that the weakened penalty will hurt private insurers.
“Karen had no alternative because the CEOs were so determined to do something to try to sway the committee to back off the reductions. She didn’t have an alternative,” Potter said. “They are obviously doing this on the eve of the vote in the Senate Finance Committee, hoping enough members of the committee would be concerned, to restore it. I think the strategy will backfire.”
Ignagni made a high-profile promise to the president in March that she would work to pass a bill, and at least publicly, she was was welcomed at the table until now. However, since the summer, both the White House and the industry have been increasingly at odds over the direction of reform, and the report seems to mark a final break. Some Democrats yesterday even hinted that Ignagni released the report because the chief executives she represents were angered by a provision in the Senate Finance bill that would cap insurance executives’ pay – a charge an Ignagni spokesman denied.
By Marvin Fredlaw

Technology reporter, BBC News
mobile phone users
Mobile broadband has enjoyed huge popularity.
Researchers predict that more than one billion people around the world will be using mobile broadband by 2012.
However some European mobile operators claim that current levels of use are already crippling their networks.
In Britain mobile operator Vodafone is doubling its mobile broadband capacity to 14.4Mbps (Megabits per second).
The new service rolling out across the UK should give users a realistic peak speed of 10.8Mbps, says the company. The upgrade will not affect devices.
By March 2009 three million British homes had mobile broadband access according to communications watchdog Ofcom.
Many use dongles, which attach to computers like a USB stick and enable internet access from anywhere with a mobile signal.
"Dongles really are reaching a critical mass," a Vodafone spokesperson told BBC News.
"There has been quite a bit of obsessing about speed by the media, but we have been concentrating on depth of coverage and quality of the network... as it will help us cope with the demands of new users."
French operator SFR claims laptops equipped with a dongle use 450 times more bandwidth than a classic mobile phone.
Fixed rate deals
The mobile broadband service is proving particularly popular with young adults says Howard Wilcox, senior analyst at Juniper Research.
"There's a growing number of under 35s living in rented properties, who tend to move around and take their mobile broadband with them," he said.
People need to know what it's going to cost them - there's no way back from fixed monthly deals. A fair use policy is reasonable.
Phil Sayer, Forrester Research
"Growth has also been driven by the availability of smartphones. It must be placing a strain on the mobile operators' networks."
The majority of complaints about mobile broadband from UK users are about network congestion in busy areas and poor signals inside office buildings.
Phil Sayer, principal analyst at Forrester Research, believes that the TV industry may unwittingly provide the solution to the interior signal problems.
Following digital switchover in 2012, the TV analogue frequency that the BBC, ITV, Channel Four and Five currently broadcast on, will no longer be in use.
A decision has not yet been made about what will happen to it.
"It would improve mobile broadband enormously," he believes. "700 MHz is a great frequency for good building penetration. 2.4 GHz [the current frequency used for wireless broadband] is pretty poor."
Fixed rate deals
An added attraction of web access on the move is that it is usually available for a competitively-priced, fixed-rate fee.
In the UK many fixed rate deals are capped - which can lead to high charges for dongle users who go over their allocated bandwidth.
Earlier this year O2 claimed the surcharge was "used as a deterrent and to make sure that others using the network had a good experience".
"Very few of our customers go over their limits," added a spokesman.
According to Phil Sayer fixed rates are here to stay.
"People need to know what it's going to cost them - there's no way back from fixed monthly deals," he said.
"A fair use policy is reasonable. Nobody wants anybody totally hogging the service."
Some operators, such as Norway's Telenor, slow down or even block the internet connection of individual users once they reach a certain amount of bandwidth.
"We have to do this otherwise only a few users will end up straining the whole network," a spokesman told Reuters.
High cost
Some operators claim that they do not generate a big enough financial return from fixed price deals to allow for much investment in the service.
"You can easily lose money on mobile broadband if you do it in the wrong way," warns Bjorn Amundsen, director of mobile network coverage at Telenor in Norway.
"We have had to be careful not to invest too much, because the only thing that would happen if we did would be to increase data traffic without an increase in our profits."
Phil Sayer does not think there will be much public sympathy for their plight.
"The user community as a whole is tired of hearing special pleading from the mobile operators," he said.
"Remember, these guys have been making money hand over fist from data roaming charges."
In July this year the EU introduced caps on the cost of using the internet abroad from a mobile.
The maximum operators can now charge is one Euro per megabyte.

Microsoft chief Steve Ballmer on Tuesday unveiled his company's line of Windows smartphones in an offensive against Apple's iPhone and Google's Android system. The new mobile operating system was launched simultaneously in France and New York on Tuesday. Dell to buy Perot Systems for $3.9 billion

* By Marvin Fredlaw
Dell Inc plans to buy Perot Systems Corp for about $3.9 billion, paying a steep 67.5 percent premium to expand its technology services business and compete with Hewlett-Packard Co and IBM.
Perot Systems, a computer services provider founded in 1988 by former U.S. presidential candidate Ross Perot, would be the largest ever acquisition by Dell and comes after extended speculation about its M&A strategy.
Dell is looking to buy a company with a strong focus on serving healthcare and federal government customers. It expects the deal to add to earnings in fiscal 2012, but some analysts thought the price tag may have been to high.
Dell said it would pay $30 per share for Perot Systems. Its Friday's closing price was $17.91 on the New York Stock Exchange.
J.P. Morgan analyst Mark Moskowitz said the price is 1.4 times Perot Systems' sales, compared to HP's purchase of EDS for 0.6 times sales last year. That would make the acquisition a little expensive, although it was good for Dell to lessen its dependence on personal computers, he said.
"We believe the deal should be a good stepping stone to diversifying beyond Dell's historically high reliance on PCs," Moskowitz wrote in a research note. "We do see the building block as being compelling, but the purchase price seems relatively rich."
Perot shares jumped 65 percent to $29.58 in afternoon trading while Dell shares fell 4.4 percent to $15.96.
The deal comes as large technology companies expand into higher margin IT services to secure stable and recurring revenues as computer hardware becomes cheaper.
Dell is the world's No. 2 maker of PCs, with roughly 60 percent of its revenue coming from that market. The company has been trying to diversify its range of offerings, and services currently comprise only around one-tenth of sales.
HP made a splashy foray into the services segment with last year's $13.2 billion purchase of EDS, founded by Ross Perot in 1962. HP is the world's No. 1 PC maker and No. 2 IT services player, behind IBM.
Kaufman Bros analyst Shaw Wu said Dell is finally taking a step to address some of its weaknesses, but it remains to be seen how much impact the deal will have as Dell's combined services offering would still be much smaller than its rivals.
"This still doesn't have quite the scale to compete ... but it's also not so outrageous it will be difficult to integrate," Wu said.
ONE-THIRD OF EMPLOYEES ARE BASED IN INDIA
Perot specializes in providing business processes and technology consulting services, with a strong client base among healthcare, government and other commercial segments. Over a third of its employees are based in India.
Perot Systems is expected to become Dell's services unit. It will be run by Peter Altabef, the current chief executive of Perot Systems.
On a combined basis, the two companies have posted services revenue of roughly $8 billion over the past four quarters.
Dell said the deal may open the door to the sale of Dell PCs to Perot's clients, but emphasized that the main target was the expansion in IT services.
"For me and our board this acquisition makes great sense because of the obvious ways our businesses complement each other and enable us to grow profitably over time," Dell Chief Executive Michael Dell told analysts on a conference call.
Dell said the two companies spend a combined $4 billion in the areas they plan to integrate, and that Dell hopes to achieve cost savings of about 6-8 percent, or $300 million over two years.
"We believe this is a critical acquisition in our strategy to transform the company," said Dell Chief Financial Officer Brian Gladden. "IT services will be a big part of our strategy and we were very focused on getting a great anchor acquisition, which we believe we did."
Ross Perot Jr., Perot Systems' chairman, will be considered for appointment to the Dell board. Perot Systems' biggest owner as of March was HWGA Ltd, an investment firm founded by Perot senior. Sprint Facing $1.2 Billion Class-Action Lawsuit

The suit claims that the company's early termination fees violate laws in several states as well as the Federal Communications Act.
By Marvin Fredlaw
Computer and security systems.
Sprint Nextel (NYSE: S) is facing a $1.2 billion class-action lawsuit over claims that it wrongly charged customers early-termination fees.
In July, a California judge ruled that the third largest U.S. wireless carrier had to pay $73 million over these cancellation fees. The attorney in that case, Scott Bursor, has now filed a federal lawsuit which claims the $150 and $200 fees violate laws in every state as well as the Federal Communications Act.
Communications at CDW talks about the benefits of unified communications, some of the technology involved, the typical migration path, several advanced applications, and provides a customer example. The Swedish LTE site will be part of a commercial network scheduled to go live in 2010, bringing data rates far above what is possible in today's mobile broadband networks.
See the new visual voicemail feature in action on a recently upgraded Blackberry Bold
"After a full trial on merits, we proved that Sprint Nextel's termination fees violated California's law," Bursor said.
But Bursor may be jumping the gun a bit, as the California ruling is not final. A California judge will hear arguments from both sides Thursday, and a final ruling is expected within 90 days.
Sprint has not responded to press inquiries regarding the national ETF lawsuit, but the company did recently finalize a new pro-rated ETF policy. The mobile operator said its $200 fee will be reduced by $10 per month after month six. The adjusted cancellation fee will only apply for new contracts, but existing subscribers can get it by renewing their service agreement.
All four major U.S. wireless carriers have a cancellation fees, and nearly all of them have faced multimillion-dollar lawsuits over them. The mobile operators say these fees are crucial in recouping costs of heavily-subsidized handsets, but consumer advocates say they are overly punitive and stifle consumer freedom to switch carriers.
The Federal Communications Commission has even leapt into the discussion, and is mulling a plan to create a nationwide policy.
"While I'm respectful of state regulators, I have been skeptical that lawsuits are a good way of ensuring protection for all consumers," said Kevin Martin, the FCC's commission chairman.