The 27-count indictment, returned in Central Islip, N.Y., charges a Ukrainian , and an Estonian with wire fraud conspiracy, wire fraud, conspiracy to possess unauthorized access devices, access device fraud, aggravated identity theft, conspiracy to commit computer fraud, computer fraud and counts of interception of electronic communications.  In addition a one-count complaint charges a Miami resident with wire fraud conspiracy related to the scheme.

According to the indictment and complaint, they engaged in a scheme in which they hacked into cash register terminals for restaurants at various locations around the United States in order to acquire credit and debit card information. The defendants then sold the stolen data to others who used it to make fraudulent purchases or re-sold it to make such purchases, causing losses to financial institutions that issued the credit and debit cards.

The data included the customer account number and expiration date, but not the cardholderÂ’s name or other personally identifiable information.  The indictment alleges that in or about May 2007, gained unauthorized access to the cash register terminals and installed at each restaurant a packet sniffer, a malicious piece of computer code designed to capture communications between two or more computer systems on a single network. The packet sniffer was configured to capture the credit card data as it moved from the restaurant point-of-sale server through the computer system at the companys corporate headquarters to the data processors computer system. At one restaurant location the packet sniffer captured data for approximately 5,000 credit and debit cards, eventually causing losses of at least $600,000 to the financial institutions that issued the credit and debit cards.

    The 25 percent figure is 3 points higher than a study conducted in January and 11 points higher than one completed in October, indicating a deepening trend.  The study also found that  55 percent of the respondents said software spending will not change in the next 90 days, and just 12 percent indicated it will rise.

Cuts to capital budgets appear to be a factor, according to the survey. Twenty-six percent of people who took it said their capital budgets had been cut over the past three months, a 4 point rise from January. In contrast, only 8 percent reported an increase in their capital budgets.  However, 27 percent reported they simply did not need to buy any new software, down two points from the January survey.

A number of major software categories, such as ERP (enterprise resource planning) and CRM (customer relationship management) applications, showed weakness moving forward.  But spending on two, virtualization and security, will see a modest jump in the next 90 days, according to the study.

But in a May 2 filing with the FCC, Google contends Verizon has no such intentions. Instead, Google claims, Verizon plans to institute a two-door policy: one door for open access devices and applications and another door for closed devices that only support Verizon's proprietary applications.

In the filing, Google urged the FCC to deny Verizon a license to use the spectrum until it fully commits to an open network.

Verizon has taken the public position that it may exclude its handsets from the open access condition, Google states in the filing. Verizon believes it may force customers who want to access the open platform using a device not purchased from Verizon to go through Door No. 1, while allowing customers who obtain their device from Verizon access through Door No. 2.

It is door No. 2 that troubles Google, which is heavily invested in promoting its own Android open-source mobile platform. As the search giant sees it, Verizon plans to deny Verizon customers full open access to competing devices and applications.

Accourding to Google, the FCCmandates opening the C Block network for the use of any device, and for the use of any application on any device, regardless of whether an end user obtains the device from the licensee, another service provider, a manufacturer or other third party.

Verizon promptly dismissed the Google concerns.

The Google  filing has no legal basis.  It is really no surprise that despite not winning spectrum, they continue to try to change the rules and further their own business interests through the regulatory process, Verizon spokesman said in a statement, adding that Verizon plans an FCC filing in next several days to counter the Google claims.  

Last summer, Google lobbied the FCC into adopting open access standards for the prime C Block of spectrum, a notion Verizon initially opposed in a lawsuit, contending that the spectrum should go the highest bidder with no restrictions. Verizon eventually dropped the legal challenge.

Verizon Wireless Â… understood the FCC rules for using that spectrum in advance of the auction, a Verizon spokesman said. Of course Verizon will abide by those rules.  As Verizon works to put the spectrum we won to good use, if Google or anybody else has evidence that we aren't playing by the rules, there are legitimate and expedited ways to address that.

Such a discount could cause a surge in demand. At last count, Apple had sold some 5.4 million units, the vast majority of them for AT&Ts network, even with price tags of $400 to $600—essentially unheard of in the U.S. cellular market. Impressively, AT&T says 40% of its iPhone users are new customers. Yet with rival smartphones like Research In Motion's (RIMM) BlackBerry and a new Palm (PALM) Treo selling for as little at $99 at some carriers, competitive pressures are building.

But a price cut might be about more than nabbing new customers. AT&Ts goal may also be to boost monthly revenues from existing subscribers who switch to the iPhone, as the big colorful screen and robust Web browser on the Apple device tends to make iPhone owners heavier users of AT&Ts wireless data services. AT&T brings in about $90 a month from each iPhone user, reckons an analyst with UBS Investment Research (UBS). When Apple cut the price on the iPhone by 33% earlier this year, it stimulated demand, he says. If this new price turns out to be true, it would do it again. It's like déjà vu all over again.

For AT&T, eager to generate returns on its multibillion-dollar investments in a next-generation data network, a $200 subsidy on a device with a proven success record may be a no-brainer. This is not unexpected at all. The $200 is a small fraction of the revenue that AT&T makes over a two-year contract.

The topics covered in this issue are:

• IT Service Management (ITSM) is impacted by the recession
• Technology Investments Approaching the Point of Diminishing Returns
• Productivity Tools

In addition the newletter has links to:

• Metrics HandiGuide
• ITSM Template
• CIO Productivity Toolkit
• IT Job Descriptions
• 2008 Salary Survey