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Google opens first Asia data centres

Written By Unknown on Rabu, 11 Desember 2013 | 23.59

11 December 2013 Last updated at 01:37 ET

Google has opened its first ever data centres in Asia as it looks to boost its growth further in the region.

The move comes as a growing number of people in Asia - which is home to more than half of the world's population - are getting connected to the internet.

Google said that having data centres in Asia will help it to provide faster and "more reliable" access to its tools and services to users in the region.

The two new centres are based in Taiwan and Singapore.

"The growth in Asia's Internet has been amazing," Joe Kava, vice president of data centres at Google, said in a blogpost.

"Between July and September of this year alone, more than 60 million people in Asia landed on the mobile internet for the first time. That's almost two Canadas, or three Australias.

"And this growth probably won't slow for some time, since the majority of people that have yet to come online also happen to live in Asia," he added.

The rapid speed at which internet users in the region have been growing, has turned Asia into a key market for internet firms.

China - Asia's largest economy - has more 500 million internet users, making its the world's biggest internet market.

Meanwhile, India - the world's second most populous country after China - has seen the number of users double to 200 million just in the last two years.

It took six years to achieve a similar growth in the US, according to Google.

The firm said it plans to invest $600m (£365m) in the long run in the Taiwan data centre - the bigger of the two facilities in the region.


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Four arrests over '£1m cyber theft'

11 December 2013 Last updated at 10:19 ET

Four people have been arrested and £80,000 in cash seized following the suspected theft of £1m from two banks.

Some customers had inadvertently downloaded software enabling their money to be siphoned off, police said.

During raids at properties in Enfield and Islington on Tuesday, police also removed a live hand grenade.

Two men, aged 31, and two women aged 24 and 27, were arrested on suspicion of conspiracy to defraud and conspiracy to launder money.

Customers 'hoodwinked'

They have also been arrested on suspicion of possessing an explosive following searches at an address in Stadium Mews, Islington and Bowes Road in Enfield.

The men are currently in custody while the women have been bailed until early next year.

Officers from the Met's cyber crime unit carried out the operation after being alerted by two UK banks that a number of customers had downloaded complex malware on to their computer by opening emails claiming to be from their bank.

A total of £1m was siphoned off from their bank accounts and transferred to a series of other accounts, to be laundered and withdrawn as cash, police said.

During the searches, computers, smart phones and other media devices were collected to be forensically examined.

Luxury goods including designer jewellery and a Range Rover were also seized.

Officers have served restraint requests to several banks for a number of accounts linked to the investigation to be frozen.

Det Ch Insp Jason Tunn said: "The victims have been hoodwinked by malware-carrying emails purporting to be from their banks, and subsequently had money taken from their accounts."


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Several plead guilty to Paypal hack

10 December 2013 Last updated at 17:47 ET

Thirteen people have pleaded guilty to disabling Paypal's servers in an attack US authorities say was orchestrated by hacking collective Anonymous.

The defendants acknowledged taking part in protests organized by Anonymous in December 2010 against Paypal, after the payment site cut ties to Wikileaks.

By pleading guilty, they will be hit with minor misdemeanour charges, as long as they stay out of trouble.

Paypal had urged leniency by prosecutors.

Lawyers for the defendants had argued that they were taking part in protests that should be protected by the US Constitution - specifically the First Amendment that guarantees free speech.

However, the US Department of Justice accused them of intentionally damaging a protected computer.

Paypal, which is owned by eBay, said it received attacks from thousands of computers during the 2010 protest.

Anonymous termed the attacks "Operation Paycheck" and targeted not just Paypal, but also larger credit card firms like Mastercard and Visa.

The targeted firms had stopped processing payments to Wikileaks, the anti-secrecy site, in the wake of the publication of 700,000 classified US documents and diplomatic cables.


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Coach crash eye tracker tested

10 December 2013 Last updated at 03:05 ET By Leo Kelion Technology reporter

Coach drivers' eye movements and blinks are to be tracked by computers as part of a test to see whether the tech could be used to prevent accidents on long distance trips.

Five firms have each fitted the product to two coaches as part of a trial taking place across continental Europe.

Seeing Machines' Fatigue Monitoring System is already used by miners.

However, one expert cautioned it was unclear whether it would improve safety in the coach industry.

The Australian firm's product uses special cameras installed inside a vehicle to monitor the driver's gaze.

If it detects they are distracted or taking "microsleeps" - naps that can last less than a second and take place without the person's knowledge - it activates a vibration motor built into their seat.

In addition it triggers an alarm in the co-driver's sleeping compartment to alert them to the fact they should take over control of the vehicle.

The patented technology uses invisible infrared light to detect the driver's eyes in the dark without distracting them, and can be used even if they are wearing glasses.

Seeing Machines' chief executive suggested the system could detect the risk of an accident at an earlier point than alternative products such as lane detection cameras and steering wheel monitoring sensors.

"Coach accidents aren't that frequent, but when they do happen they are so catastrophic that they make the [newspaper] front pages and in a lot of cases it is almost the end of the coach company involved as no-one wants to ride with them anymore," Ken Kroeger told the BBC.

"The way the technology works is that it tracks your head position and your eye aperture.

"If you turn your head beyond a certain angle for a specified duration while moving over a certain speed, it will remind you your eyes should be on the road.

"Then for fatigue it looks at the frequency of blinking, the velocity of the eyelid when it's opening and the duration of the eye closure to determine if it's a microsleep."

Seeing Machines has teamed up with the coach operator Royal Beuk to hold the trial.

The Dutch firm has installed the tech on two of its vehicles and has recruited a further four coach firms to do likewise.

Over the winter months the vehicles will travel from the Netherlands to ski resorts in Austria, Switzerland and Italy. Then, in the summer, they will travel to southern parts of France, Italy and Spain.

"There are competitor products on the market and we evaluated a few of them," Royal Beuk's research manager Marc Beuk said.

"But all of the others required something from the driver. One system required them to wear a special hat, another involved special glasses hooked up to wires.

"This was the only device that we know of that didn't give the driver something to do - once he turns the ignition key the system boots up and it starts monitoring him."

He added that if the nine-month test was a success, his firm intended to install the kit across its 60-vehicle fleet and act as its European distributor.

Coach crashes

In recent years driver fatigue has been blamed for several accidents.

US investigators said it was a factor in a bus crash in which 15 passengers died in New York in 2011, as well as another similar incident which killed four people in Virginia last year.

In the UK, a coroner cited it as the reason a coach veered off the M25 motorway near Slough, Berkshire, in 2003, resulting in the deaths of six people.

However, one expert warned it was unclear exactly how common the problem was.

"Crashes are very rare when measured per kilometre, nevertheless they do occur and some of these may be related to fatigue, although very little is known about the precise numbers," said Prof Pete Thomas, head of the Transport Safety Research Centre at Loughborough University.

"The trial of a driver-fatigue detection system for coach drivers will provide useful further information to help improve coach safety, although it is important the trials are properly scientifically controlled.

"Other factors such as speed and alcohol may also be important causes of coach crashes and bus operators should continue to reduce all types of risks."

It currently costs the mining industry about £10,000 to install Seeing Machines' equipment in each vehicle on top of a continuing licence fee.

But the firm said that if the trial was a success it intended to offer coach firms a "less rugged" version that would be about a quarter of the cost.

It added it was also in early-stage talks to introduce its products to the airline industry.


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Sensors used to monitor obesity

10 December 2013 Last updated at 12:10 ET

A range of hi-tech sensors that can measure food intake and activity in order to assess obesity risks is to be funded by the European Union.

Dubbed Splendid, the project aims to persuade youngsters to adopt healthier lifestyles and be more aware of their eating and exercise habits.

It is part of a push to use technology to create preventative healthcare.

Obesity causes an estimated 2.8 million deaths among adults around the world every year.

"The idea is that we try to investigate ways to prevent obesity and eating disorders," said Prof Anastasios Delopoulos, the project co-ordinator who works for the department of electrical and computer engineering at the Aristotle University of Thessaloniki in Greece.

The system will be tested on around 200 secondary school students in Sweden and another set of children in the Netherlands.

Sensors will be used to measure the speed at which food is eaten as well as how food is chewed.

The time taken to consume food is one of the risk factors in obesity, according to Prof Delopoulos.

It will be measured using a mandometer, from Swedish firm AB Mando, which is currently used in a handful of clinics set up to treat eating disorders.

The sensor comprises a scale connected to a portable computer or a smartphone. A plate of food is put on the scale and the rate at which it leaves the plate is recorded, with an audible warning if it is being eaten too quickly for the person to realise they are full.

Swiss firm CSEM is developing the other two sensors that will be used in the project. ActiSmile is a wearable sensor, which rewards the wearer with a smiley face when enough exercise has been done.

The firm is also designing an acoustic sensor, which will take the form of a wearable microphone, and record how the user chews food.

Users will also input their own data, including how full they feel after a meal as well as daily intake and activity logs.

All the data will be processed and run through algorithms which will assess the risks for obesity and eating disorders.

In the later stages of the trial, the system will be used to help change the way at-risk youngsters eat and exercise.

"The goal is to modify eating and activity behaviour of individuals in a personalised way," said Prof Delopoulos.

"A medical expert will assign goals, such as to eat more slowly or adopt more activity and the sensors will monitor whether the individual succeeds," he added.

Daniel Kraft is a doctor and executive director of FutureMed, a healthcare education programme aimed at teaching medical professionals about new technologies.

He thinks that sensors will increasingly be integrated into healthcare.

"From connected scales to sensors that can track heart rate and activity levels... the patient can be empowered to understand their healthcare data," he said.

"It brings you to an era of healthcare rather than sick care," he added.


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Crooks 'seek ransomware making kit'

10 December 2013 Last updated at 19:04 ET By Mark Ward Technology correspondent, BBC News

Cyber-thieves are seeking to mass-produce new forms of ransomware, the security company Sophos has suggested.

It said there were discussions on underground forums about ways to produce a "kit" that criminals could use to craft their own variants.

Scammers try to extort cash by using ransomware to encrypt data, preventing access, or falsely accusing people of possessing illegal material.

Sophos said the problem had become much more widespread in 2013.

It said this was partly because Microsoft had protected Windows against other types of attack.

Continue reading the main story

Ransomware has existed since at least 1989 when malware called the PC Cyborg Trojan scrambled the filenames on a computer's C-drive, making it unusable, and then demanded payment to rectify the problem.

A particularly dangerous type emerged in 2013 called Cryptolocker, which used a very strong type of encryption to lock away files on a Windows computer.

The 2048-bit key that would free the data is so complex that researchers have suggested it would take a standard PC more than a million years to crack it.

But Windows was not ransomware's only target in 2013.

In June, researchers highlighted the emergence of malware called Android Defender Platinum, which demanded $100 (£60) to restore access to handsets or tablets running Google's operating system.

Apple Mac users were not immune to the problem either. Ransomware written in Javascript told Safari browser users that they had been detected to have been looking at illicit content, and attempted to blackmail them.

This particular variant, however, was easy to remove by selecting Reset Safari in the program's menu.

But, said others, there were still millions of machines running versions of Windows vulnerable to older attacks.

Crypto crime

Ransomware was on the way to becoming the "market leader" in malicious code, said James Lyne, global head of security research at Sophos, who co-wrote the company's annual report into cyber-crime and emerging threats.

Worryingly, he said, there was evidence that many cyber-thieves were keen to cash in on the success of ransomware programs such as Cryptolocker.

Documents had been seen circulating online looking for criminally minded software developers to write a "kit" that anyone could use to create their own version of this type of malware.

Cybercrime kits have fuelled the huge rise in the number of malicious programs circulating online and have helped many people get involved in hi-tech crime for the first time.

The kits remove the need for any technical skill and some offer technical support numbers for those that need advice on how to craft their own malicious programs.

Thanks to these kits Sophos and other security firms saw about 250,000 novel variants of malware every day, said Mr Lyne.

Thieves were keen to emulate Cryptolocker because of the success it has had in making people pay up. One study of a handful of the servers run by the criminals behind Cryptolocker indicated 12,000 victims a week were being hit.

A separate attempt to shut down the network supporting Cryptolocker found almost 150 separate systems gathering responses from infected machines. Although the systems found were shut down, the sophisticated networking software built in to the malware meant the malicious network quickly recovered.

Blackmail by bitcoin

Cryptolocker demands payment in bitcoins - a virtual currency - and many paid the ransom it demanded in the hope that the data it had encrypted would be unscrambled. No-one who paid the ransom, which in some cases ran to hundreds of pounds, got their data back.

The prevalence of Cryptolocker has also prompted warnings from national anti-cybercrime agencies in the UK and US.

"Cryptolocker is very much a deviation from the norm," said Mr Lyne, "and I actually think it is a sign of things to come."

Before now, he said, most cyber-thieves had tried to avoid detection and slip their malicious programs on to victims' machines without being detected.

Typically, he added, once a machine was infected it then got searched for saleable data and enrolled onto a botnet so it could act as a proxy for sending spam or mounting other attacks.

By contrast, he said, Cryptolocker and its ilk were "noisy" and made their presence known almost instantly.

By adopting this approach criminals got their money straight away and also did not need to find and assess the worth of data stolen from compromised machines or launder cash stolen via credit cards, said Mr Lyne.

Ransomware was on the rise in 2013, just as fake anti-virus and other "security" programs had gained popularity in 2012, he added.

He speculated that changes Microsoft had introduced with Windows 8 and 8.1 were partly behind this. These changes, involving better memory management and erecting virtual walls around some applications, made it technically more difficult to find vulnerabilities that could help compromise a machine, causing the criminals to change tactics.

"There could be a lot more mainstream cybercriminals looking to go 'noisy'," said Mr Lyne.

Adrian Culley, a technical consultant at a security firm who was formerly a Scotland Yard cyber-cop, said Microsoft may have beefed up defences in the latest version of Windows but other factors often left people vulnerable.

"It assumes that people will have applied all the latest updates to their Windows machine," he said. "And that's not true."

He said there were still millions of Windows machines connected to the web that ran very old and vulnerable versions of the operating system.

In particular, Windows XP, he said, had "horrendous issues" with vulnerabilities.


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Zavvi threatens PlayStation shoppers

11 December 2013 Last updated at 07:20 ET By Leo Kelion Technology reporter

Online retailer Zavvi has warned customers to whom it accidentally sent a video games console that they could face legal action if they have not arranged the machines' return.

The UK firm mistakenly delivered PlayStation Vitas to shoppers who had ordered a £20 game released last month.

It subsequently warned those who did not voluntarily return them that it might take "legal remedies".

One expert warned the move could damage its brand.

News of the issue was first covered by the games blog Dark Zero.

It published a "final notice" letter sent to one Zavvi customer who had originally ordered a copy of the platform game Tearaway.

"As you are aware, as a result of a technical error, you were not sent Tearaway (priced at approximately £19.99) and instead were sent a PS Vita (priced at approximately £169.99). This was an error on our part and we apologise for any inconvenience this has caused you," it said.

"We have tried to contact you on numerous occasions to give you the opportunity to return this item to us (at our cost and no inconvenience to yourself), but to date you have refused to do so.

"This is our final notice to politely remind you that you did not order, or pay for, a PS Vita and if you fail to contact us by 5pm (UK time) on 10 December 2013 to arrange a convenient time for the PS Vita to be collected we reserve the right to enforce any and/or all legal remedies to us."

A spokeswoman for The Hut Group - which owns Zavvi - confirmed that the letter was genuine, but declined to say how many had been sent out or to comment further.

The BBC understands that the majority of customers contacted by the firm have complied with its request.

Legal argument

The Hut Group based its threat of legal action on its understanding of the UK's distance selling regulations.

Although they state that "unsolicited goods" can be treated as unconditional gifts that do not need to be returned, and that it is illegal for the sender to threaten legal action - the legislation they are based adds the qualification that this only applies if there was no "prior request made by or on behalf of the recipient".

In the case of orders that were made but mixed up, the Citizens Advice Bureau suggests consumers should indeed return the items.

"If goods are sent to you by mistake, you need to contact whoever sent them to let them know and ask them to collect the goods," it says on its website.

"You might get goods sent by mistake if they are meant for someone else or you've been sent duplicate or extra items on top of what you ordered."

Machiavellian customers

Comments left by gamers on Eurogamer's discussion forum indicated that many sympathised with Zavvi's request that the consoles be returned.

"Not sending them back is just pure thievery and nothing else," wrote one nicknamed megatronx.

However, several objected to the way the firm had handled the affair.

"I don't deny that they are within reason to get back those Vitas, as they were clearly sent out in error. However, I've described them as scumbags on the basis of the using the 'law' as a justification for the threatening tone of the letter," wrote karaokequeen3.

One consumer goods expert said that the firm risked damaging its brand during the crucial Christmas shopping season.

"Whether or not a customer has the legal right to keep goods, or indeed must return them, they will feel that the responsibility for the inconvenience caused sits squarely with the business who wrongly delivered them," Aidan Bocci, chief executive of the Commercial Advantage consultancy, told the BBC.

"That business must tread very carefully.

"A heavy handed approach to ensure mistakenly delivered goods are returned will at best bring out a Machiavellian streak in a small group of people and at worst damage the reputation of the business to loyal honest customers - its core source of profit - who are now being told by the business that 'we don't trust you'".


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'Revenge porn' site owner arrested

11 December 2013 Last updated at 08:08 ET

A 27-year-old man has been arrested in connection with the running of a "revenge porn" website.

Kevin Bollaert is accused of being behind UGotPosted, a site that published intimate photographs of people against their wishes.

It would link to relevant social networks of the subjects pictured.

Prosecutors said the website also sought to extort money from the people featured on the site by charging a fee to have pictures taken down.

"This website published intimate photos of unsuspecting victims and turned their public humiliation and betrayal into a commodity with the potential to devastate lives," California Attorney General Kamala Harris said in a statement.

"Online predators that profit from the extortion of private photos will be investigated and prosecuted for this reprehensible and illegal internet activity."

The authorities alleged that Mr Bollaert also ran changemyreputation.com, a site that offered services to have pictures from UGotPosted removed for a fee of about $300 (£180).

According to court documents, he is said to have made "around $900 per month from advertising on the site and records obtained from his changemyreputation.com PayPal account indicate that he received payments totalling tens of thousands of dollars".

More than 10,000 images had been posted to the site, arranged by location, police said.

In addition to the photographs, each entry would display a range of contact details - including links to Facebook, Twitter, LinkedIn, places of work and other personal information.

Mr Bollaert is being held in a San Diego jail on $50,000 (£30,000) bail. He has not yet entered a plea.

Distress

As part of the investigation, a search warrant was obtained to look through emails sent to ugotposted@gmail.com - the address used by the site administrator.

"Please help!" read one email. "I am scared for my life!"

The woman - named in court only as Jane Doe #6 - said she felt unable to go back to work as people who had seen the picture had then called her office.

Jane Doe #6 also noted that she may have been under 18 years old when the pictures in question had been taken.

Another victim said over 100 people had tried to contact her after her pictures appeared on the website.

ID theft

Revenge porn sites have typically been difficult to shut down thanks to what many see as outdated laws surrounding the publishing of images.

A common hurdle for law enforcement is the Communications Decency Act, which has been used as a defence for website owners who have found their services being used for hosting or distributing illegal material.

The crime - the defendants have repeatedly successfully argued - is perpetrated by the user who uploaded the images, not the owner of the website.

Another closed revenge porn site, IsAnyoneUp.com, was targeted by campaigners who said it was a gross invasion of privacy.

However, in this case the most effective way to see the content removed, at least from Google search results, was by using copyright law.

If the person in a picture also took it - a "selfie" - then a copyright claim can be made to search engines under the Digital Millennium Copyright Act, known as DMCA, designed to make it easier to stop pirated content from spreading online.

In targeting UGotPosted, prosecutors used a different approach - pressing charges of ID theft and extortion.

Law makers in several US states are looking at ways to crack down on revenge porn.

In October, California enacted a new law that made posting explicit images of someone without permission punishable with six months in prison.


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Spy agencies 'track Google cookies'

11 December 2013 Last updated at 09:24 ET By Leo Kelion Technology reporter

The latest Snowden leak suggests US and UK cyberspies are taking advantage of Google's proprietary cookie technology in an effort to track suspects.

Documents published by the Washington Post refer to the NSA and GCHQ's use of "GooglePrefIDs" - files containing a numeric code placed on computers to help the search firm remember users.

The paper said the US and UK spy agencies piggybacked the files to "home in" on targets already under suspicion.

Google has not commented.

However, the news may add to existing tensions between the firm and the authorities.

Google's chairman Eric Schmidt said last week that the company had considered moving its servers outside of the US following the publication of earlier leaks, before deciding it was impractical.

"Google's position is we are outraged on this," he said in reference to claims that the NSA and GCHQ had taken data from communication links used by his firm.

"It's government overreach, is the best way to explain it."

The cookie surveillance technique is the latest in a series of alleged spy agency activities described by papers released to journalists by the whistleblower Edward Snowden, a former NSA contractor now living in Russia.

Ad trackers

Google says it uses "preferences" cookies to enhance people's use of the internet.

"These cookies allow our websites to remember information that changes the way the site behaves or looks, such as your preferred language or the region you are in," it explains on its site.

"The Pref cookie may store your preferences and other information, in particular your preferred language (eg English), how many search results you wish to have shown per page (eg 10 or 20), and whether or not you wish to have Google's SafeSearch filter turned on."

Continue reading the main story

Cookies are small files that allow a website to recognise and track users. The Information Commissioner's Office divides them into three overlapping groups:

Session cookies

Files that allow a site to link the actions of a visitor during a single browser session. These might be used by an internet bank or webmail service. They are not stored long-term and are considered "less privacy intrusive" than persistent cookies.

Persistent cookies

These remain on the user's device between sessions and allow one or several sites to remember details about the visitor. They may be used by marketers to target advertising or to avoid the user having to provide a password during each visit.

First- and third-party cookies

A cookie is classed as being first-party if it is set by the site being visited. It might be used to study how people navigate a site.

It is classed as third-party if it is issued by a different server from that of the domain being visited. It could be used to trigger a banner advert based on the visitor's viewing habits.

The file - which contains a randomly-generated numeric code, rather than the name of the user - is also used by the firm to personalise the adverts shown to people who are not signed into its service.

Since many other firms make use of Google's technologies to place ads, a user may have PrefIDs on their computer even if they have never visited the search firm's own services.

There are tools on the internet with which users can reset the cookie's numeric code to make themselves anonymous. One expert said the company would be concerned if the leaks encouraged more people to use them.

"The last thing that Google wants is for people to tamper with or otherwise mess with its tools, disabling its ability to track them," said Chris Green, a tech analyst at the consultancy Davies Murphy Group.

"Cookies are a very valuable part of its business."

A document published by the Washington Post suggests the spy agencies also track other types of cookies, but does not specify which.

It is not clear how the authorities would have obtained the information, although the paper notes that it is among the data the NSA can demand through a Foreign Intelligence Surveillance Act (Fisa) court order.

A spokesman for GCHQ said he could neither confirm nor deny the agency's involvement in the alleged activity.

"All GCHQ's work is carried out in accordance with a strict legal and policy framework which ensures that its activities are authorised, necessary and proportionate, and that there is rigorous oversight, including from the Secretary of State, the Interception and Intelligence Services Commissioners and the Intelligence and Security Committee," he said.

The NSA added that it was "within its lawful mission to collect foreign intelligence to protect the United States, use intelligence tools to understand the intent of foreign adversaries and prevent them from bringing harm to innocent Americans".


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Spotify offers 'free' mobile service

11 December 2013 Last updated at 11:38 ET

Spotify is to extend its "free" ad-supported music service to mobile devices.

Smartphone users will be able to build playlists of songs and then hear them played back in a random order. Tablet users will have more control, letting them select specific tracks.

The Swedish firm also announced it was expanding to a further 20 countries, taking its total reach to 55.

Experts said it needed to make the moves to combat growing competition.

Until now Spotify has offered a free-to-use product only on PCs, and had restricted its mobile apps to paying subscribers.

But its founder, Daniel Ek, said bringing a free service to Android and iOS devices would tempt more people to eventually switch to the premium version where they could access higher-quality audio, no adverts and the ability to listen to songs offline.

"Our very clear mission is getting more people to access and discover more great music," he told a press conference in New York.

"Along with more free users there will be more subscribers, and that means more revenue back to the industry."

The firm is dropping the 10-hours-a-month cap it previously placed on long-term users of its free services.

Mobile YouTube

Over the past year Google has rolled out its own subscription Play Music service in several countries, Apple has launched iTunes Radio in the US and Bloom.fm has begun offering subscription packages at cheaper rates than Spotify in the UK.

In addition Rdio has expanded its music-streaming service to 51 countries, while France's Deezer has announced its intention to begin offering tracks in the US next year.

Mr Ek suggested Spotify would gain an advantage over its rivals by offering a product that was free to use and gave device owners control over exactly which songs they listened to.

But one expert pointed out that YouTube already did that.

"YouTube is available on all smartphones with absolutely no premium fee at all, and you get video, social features and lyrics as well," said Mark Mulligan, editor of the Music Industry Blog.

"The labels have always been very keen to keep a separation between the free tier being locked to the PC and premium to mobile, but YouTube has never played by those rules.

"This is about making the playing field more level."

Uploading a music track

Please turn on JavaScript. Media requires JavaScript to play.

Newsnight's Jim Reed asks whether music-streaming service Spotify is good for musicians

Andy Malt, editor of the industry news site, CompleteMusicUpdate.com. said there had been reports that YouTube had secured licences to begin its own paid music subscription service early next year with ad-free, offline-use features.

"In January we're expecting YouTube to launch its own music service, which may well have a strong mobile offering," he said.

"Also, the long-awaited Beats Music service, from Dr Dre's company will launch in the US the same month and offer strong competition.

"I suspect at this stage Spotify is trying to move ahead of its competitors to try to maintain its dominance in the streaming market ahead of extreme competition. Next year will be a make-or-break time for many."

Spotify also announced it was adding Led Zeppelin's tracks to its library as a streaming "exclusive" and had teamed up with speaker manufactures to allow its premium members to send music wirelessly to their systems.


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