To lock or unlock, that is one choicefacing the thousands of Canadiansintent on purchasing the iPhone 4.

On Friday, the smartphone will beon sale unlocked, or free to pur-

chase without the confines of awireless contract, at Apple’s retailand online stores.

It will also be available throughwireless carriers Rogers, Bell andTelus, which are expected to sell thephones for a much lower cost than

the Apple sticker price if consumersare willing to lock into what aretypically long-term contracts.

“An unlocked iPhone means youhave to dig a little bit deeper intoyour purse or jeans,” said IainGrant, managing director of con-sulting firm The SeaBoard Group.

“Most Canadians have actuallyshown they are more interested insaving the upfront cost than actu-

ally paying the real cost for thephone and having the option ofmoving around.”

On Monday Apple released pric-ing for the unlocked phone. The16GB iPhone 4 will cost $659, withthe 32GB model costing $779.

TELECOM

Apple unlocks iPhone 4 in Canada Customers can choose to buy the smartphonewithout a wireless contract — for a priceEMILY MATHIEU BUSINESS REPORTER

CARRIER continued on B2

You’ll dig deeper for iPhone 4.

S&P/TSX COMPOSITE31.86 to 11,746.070.27%

CANADIAN DOLLAR0.34¢U.S. to 96.86¢$1 U.S.=$1.0324

DOW JONES INDUSTRIALS100.81 to 10,525.430.97%

OIL0¢ U.S. a barrelto $78.98

Business& CareersMARKET WATCH

SECTION BTUESDAYJULY 27, 2010thestar.com

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MORE FOR LESSFord’s redesigned Explorerwill cost more with a smaller,more efficient V-4 engine, B2

LONDON — Robert Dudley, expectedto be appointed as BP’s chief exec-utive by the company’s board, facesa long road to restore confidence inthe embattled company — partic-

ularly in the United States, the big-gest part of BP’s business.

Dudley, an American who hasbeen with BP since it bought Amo-co in 1998, faces a host of challenges:repairing damaged relations withfederal and state authorities, deal-ing with the cost and legal conse-

quences of the spill, bolstering mo-rale among BP employees and win-ning back investors.

Ultimately, his job can be summedup simply as ensuring that BP sur-vives its latest crisis and finds a wayto move beyond it.

“I can’t think of any new chief ex-ecutive of an oil company steppinginto a more complicated situation,”said Daniel Yergin, chairman of IHSCambridge Energy Research Asso-

ciates. “BP is going to be in a re-building mode, and the aftermathof the spill will go on for a longtime.”

Dudley, whose ascension is expec-ted to be announced on Tuesday,succeeds Tony Hayward, who is re-signing from the job he has heldsince 2007. According to people fa-miliar with the situation, Haywardwas offered a position with BP’sjoint venture in Russia, known as

TNK-BP. BP owns half of the oilfirm, which is Russia’s third-largest.

In recent weeks, Hayward, in con-junction with BP’s directors, hadconcluded he could no longer effec-tively lead the company after hecame under criticism in the UnitedStates for his handling of the Deep-water Horizon accident in the Gulfof Mexico.

ENERGY

Host of challenges face new BP head Robert Dudley must restore confidence inembattled company, especially in United StatesJULIA WERDIGIERAND JAD MOUAWADNEW YORK TIMES

DUDLEY continued on B4

The woman in the white coat hov-ered over the sedated mouse, keep-ing a watchful eye on his breathingas she secured his paws with tape,used a chemical solution to removethe hair from his chest, then cov-ered it with a substantial blob ofblue-tinted gel.

The mouse was put to sleep soTonya Coulthard, applicationsteam leader, could demonstratehow VisualSonics Inc.’s patentedultrasound technology tracks theblood flow inside the heart of amouse.

“This area straight through here isactually the muscle of the heart,”said Coulthard.

Coulthard was manipulating theelectronic arm holding the high-resolution, high-frequency, micro-imaging system and pointing to ablack-and-white image about thesize of a large fist with pockets ofrapidly pulsating fluid.

“All of this here, you can see itactually swirling, that is the blood,”Coulthard said.

What makes the Toronto compa-ny’s ultrasound unique is its ex-tremely fast frequency.

TECHNOLOGY

Firm pioneers ultrasound toolU.S. company bets onhigh-frequency systemdeveloped in Toronto

EMILY MATHIEU BUSINESS REPORTER

ULTRASOUND continued on B2 Tonya Coulthard of Visualsonics points to the highly detailed ultrasound image of the heart of a sedated mouse. RICK EGLINTON/TORONTO STAR

B2 H TORONTO STAR H TUESDAY, JULY 27, 2010 ON ON0

BUSINESS

That ultra-fast frequency allows areal-time, highly detailed vision ofeverything going on in the top threecentimetres of human tissue or sur-face of an organ.

One area where the company ex-pects the ultrasound tool to be mostuseful would be in detecting bloodflow to and from skin cancers.

VisualSonics’ technology attract-ed the attention of U.S. ultrasoundcompany SonoSite Inc., which re-cently bought VisualSonics in a $71-million U.S. deal that includes as-sumption of about $4 million U.S. ofthe Canadian company’s net debt.

Chief executive officer Anil Am-lani said the machine is currentlybeing used at a research facility inKentucky, where it is used to seekout and study early signs of graftrejection for reattached limbs.

“The biomarkers that exist todaycannot tell the hand is being reject-ed until it is too late,” Amlani said.

That level of detail means the ma-chine could potentially detectchanges in the texture and shape oftissue in organs like the kidney, aswell as show how fast blood is flow-ing to, from and through the vesselsinside the organ.

Amlani hopes the machine couldbe used to guide needles into theminiscule veins of newborns andpremature infants. The currentmodel was created last year, after a$10 million investment in researchand development that saw it rebuiltfrom the ground up.

VisualSonics has already sold ap-proximately 700 units to researchinstitutions and health-care facil-ities around the world, includingMount Sinai Hospital and SickChildren’s Hospital, said Amlani.

At the time of the June sale, thenow public company had reported$30 million in sales and earningsbefore interest, taxes, depreciation,and amortization of $5 million inthe previous 12 months.

The company, which employs 100people, will remain at its north To-ronto location. Everything is creat-ed in-house, from software to man-ufacturing to the fully packagedproducts ready for shipment tomedical and educational institu-

tions around the world.During the demonstration, the

mouse was on a heated platform,his body temperature monitoredby a rectal thermometer. Thintransparent tape attached themouse’s paws to the platform,which monitors vital signs. Doses ofa sedative gas are given throughoutthe procedure.

The minute readings mean thatone animal can be studied through-out the course of a disease or groupof surgeries, rather than sacrificingmultiple mice at different stages,she said. Using the same mouse alsoincreases the strength of the data.

The product has been tested onhumans, but neither Health Cana-da nor the U.S. Food and Drug Ad-ministration has approved it forregular clinic use on patients. Am-lani said SonoSite aims to have theproduct available for commercialsale by late 2011or early 2012.

The company was founded in 1999by Dr. Stuart Foster, a researcherwho specializes in high-frequencyultrasound technology, and venturecapitalist Sam Ifergan, who joinedin 2002 and invested $1.5 million.

They had a rocky start, but soldtheir first system that year. Amlanisaid the basic model costs $145,000and systems can go up to $500,000.

“SonoSite has a very good strategyand is willing to invest to acceleratepenetration in the clinical market,”said Amlani. Ifergan hopes the mar-ket will include neonatal care, urol-

ogy and detection and treatment ofmultiple forms of cancer.

One of the earliest models went toDr. Guy Cloutier, professor of radi-ology with the University of Mon-treal and a scientist with the Uni-versity of Montreal Hospital Re-search Centre. Cloutier and histeam combined the VisualSonictechnology with a patented algo-rithm system to collect and studydata for several potential clinicalapplications.

They have been using the systemto examine inflammation duringopen heart surgery, using pigs. In-flammation drugs can cause sideeffects. The ultrasound allows doc-tors to recognize symptoms of in-flammation, the aggregation of redblood cells and administer drugsaccordingly.

Cloutier said what defines Visu-alSonics’ technology, the ability toread surface tissue, is its one limita-tion. “You have to target pathologythat is on the surface of the humanbody,” or perhaps adjust the tech-nology to reach internal organs. Butthere is tremendous potential touse the technology for areas likeskin cancer and surgery, he said.

Ifergan said the company is nowtargeting surface conditions but isexploring ways to use the technolo-gy deep inside the body. “Ten yearsfrom now,” he said, “it is going tobecome a de facto standard as partof the treatment of all kinds of dis-ease and taught in medical schools.”

A sedated lab mouse has its stomach hair removed before being given an ultrasound at Visualsonics.RICK EGLINTON/TORONTO STAR

SonoSite ‘willing to invest’ULTRASOUND from B1

Visualsonics’ new ultrasound technology can be used to detect minutedetails not see by other types of ultrasound technology.

RICK EGLINTON/TORONTO STAR

majority of our time in Canada,there really isn’t much of an advan-tage except if you really get upsetwith your current carrier you canwalk across the street.”

Johanne Lemay, a telecommuni-cations consultant and co-presi-dent of Lemay–Yates AssociatesInc., said the price tag is heftyenough to deter many Canadiansfrom purchasing the phone directlyfrom Apple.

However, the iPhone 4 is morethan just a cellphone, she said.

“It is like a mini-computer and weall buy our computers without anyincentives and change them fairlyregularly. The same thing goes forThe iPad,” she said.

The stores also sell an iPhone 3GS8GB model without a contract for$549.

Buyers will need to purchase andinsert a Subscriber Identity Module(SIM) card to set up service on thedevice. The cards are typically soldthrough the carriers.

Bell, Rogers and Telus have notreleased pricing for the iPhone 4.

Grant said that for consumerswho travel, the option to purchasean unlocked phone could result insignificant savings compared toroaming charges for internationaltravel.

“But for those of us who spend the

Commitment and a deal or freedom for a price? CARRIER from B1

MONTREAL—How email and textmessages are managed on Black-Berry smartphones is facing scruti-ny in the United Arab Emirates,where authorities say the devicesoperate outside its national laws.

The Middle Eastern country’stelecommunications watchdog hasnoted that data services are man-aged by Research In Motion out-side local control and it wants thatto change.

The UAE’s TelecommunicationsRegulatory Authority said that“certain BlackBerry applicationsallow people to misuse the service,causing serious social, judicial andnational security repercussions.”

“Like many other countries, wehave been working for a long timeto resolve these critical issues, withthe objective of finding a solutionthat safeguards our consumers andoperates within the boundaries ofUAE law,” the authority said via thecountry’s state news agency’s web-site on Sunday.

“It’s a control issue,” PC Magazineanalyst Sascha Segan said Monday.

Data from BlackBerrys in UnitedArab Emirates goes through RIMcomputers in Britain, he said.

“Uniquely on BlackBerrys, allemail and a lot of other data goes toa set of RIM computers before itgoes to its destination,” said Segan,managing editor of PCMag Mobile.

“That is so RIM can compress thedata to speed up transfers and sothat RIM can bundle it to lower theimpact on battery life, and so thatRIM can encrypt and secure thedata for corporate managementreasons.

“The result is good for wirelesscarriers, too, because BlackBerrysuse less network capacity,” Segansaid from New York.

The BlackBerry is well-known forthe security it provides to its users,which may be of interest to author-ities in UAE.

The UAE is among countries that

censor websites and other forms ofmedia.

Segan noted UAE’s major mobileservice provider previously tried toget its BlackBerry users to unknow-ingly install an update that turnedout to be spyware that presumablywould have allowed governmentaccess to content on individuals’smartphones.

RIM has said tests showed the up-date could allow outsiders to accessprivate information stored onBlackBerrys. The Waterloo, Ont.-based company gave users informa-tion on how to remove it.

Technology analyst Nick Agostinodescribed the latest announcementby the UAE as a political move byauthorities there. India and Chinahave had similar concerns with theBlackBerry device, he said.

“I think, basically, RIM is going topull out their file and look at dis-cussions they’ve had with China,with India, and basically go downthat same path,” said Agostino ofMackie Research Capital Corp.

Kuwait and Saudi Arabia have ex-pressed similar security concernsabout the BlackBerry.

“We are going to see more of this,not from developed nations butfrom the non-democratic emergingmarkets,” Agostino said from To-ronto.

But he said he doesn’t expect theissue to be detrimental to RIM inthe long term, calling it “headlinenoise.”

Agostino said RIM could makesome changes to give UAE potentialaccess to information. RIM had noimmediate comment on Monday.

Reporters Without Borders sayseven though the United Arab Emir-ates has the highest Internet pene-tration rate in the Arab world, theauthorities have put in place “anextensive system to filter sensitivesubjects, backed by repressivelaws.”

“Netizens are increasingly resort-ing to proxy servers to access thou-sands of banned websites,” the or-ganization says its on website.

Gulf states see threatin BlackBerry platformRIM manages data flowoutside local control

The Canadian Press

With the launch of its latest Explor-er, Ford Motor Co. will try to con-vince fans of sport-utility vehiclesto choose fuel efficiency and ener-gy-conscious consumers to consid-er a vehicle that seats seven.

The latest version of the Ford iconcomes at a time when the domesticautomaker is riding high. The com-pany didn’t just spurn the billion-dollar bailouts that saved its rivals.It turned a profit through the reces-sion and has increased its marketshare thanks to a focus on quality.

But the second-largest U.S. auto-maker will still have its work cut outfor it, industry experts say.

“How do you get the consumer’shead around the fact that it’s thislarge but will give exceptional fuelefficiency?’ said Geoff Helby, na-tional sales manager at Power In-formation Network, a division ofJ.D. Power and Associates.

“Everyone now is cognizant oftheir environmental footprint. It’sno longer socially acceptable to bedriving the old-style SUV.”

Ford officially unveiled the Ex-plorer Monday. The biggest change:a smaller engine. The standard en-gine will be a 3.5-litre V-6 with 290horsepower. Buyers can opt for amore expensive four-cylinder op-tion that offers turbo boost.

Ford says the former will delivermore than 20 per cent better fueleconomy, and the latter, 30 per centover the 2010 model.

Ford Motor Co. of Canada Ltd hadits own unveiling for the Explorer atKool Haus in Toronto on Monday.

“This will be a vehicle that offersgreat value,” David Mondragon,president and chief executive offi-cer of Ford of Canada, said in aninterview.

The new Explorer “will touch amarket that needs to be addressedby our company.”

The more fuel-efficient model willhave the least off-road capabilities,the trait that typically draws SUVfans. But Ford is betting that buyerswill be willing to make the trade-off.Ford said poor gas mileage is the

No. 1reason shoppers reject the Ex-plorer, which saw sales fall 88 percent during the past decade, from445,157 in 2000 to 52,190 last year.

Long-time observers say Ford hasobviously made better design a pri-ority. “These vehicles used to bevery boxy in nature. Now there’ssome curvature,” Helby said. “Fromthe old Explorer, this is night andday.”

The Explorer’s improved fueleconomy has been central to its so-cial media marketing campaign.Ford has been rallying fans on Face-book, giving glimpses of the newvehicle and question-and-answersessions with top executives.

It has also been touting the vehi-cle’s safety features, which includeinflatable seat belts for rear-seat oc-cupants and curve control system.

“Ford has been riding a wave thatI’ve never seen,” said Byron Pope,associate editor at industry journalWard’s Auto, who has covered Fordfor about a decade.

“I’ve never seen them being com-pared favourably to Honda andToyota. A lot of that has to do withnot taking that money and standingon their own two feet,” Pope said.

Ford will start building the Ex-plorer, which uses the Taurus plat-form, in Chicago in November.

“Ford isn’t discussing volumes butthey added a whole shift in Chicago,so that tells you something.” Popesaid.

Ford ranked No. 1for new car qual-ity among mass-market brands,beating out foreign automakers, inthe latest study by J.D. Power andAssociates, conducted betweenFebruary and May of this year.

Mondragon said sales have beenholding steady this summer, andwhile the industry may be slowing,he is optimistic. “We do see an in-dustry that started like a lion, buthas been tempoing down, not to thepoint of being a lamb at the end ofthe year, but maybe like the fourthquarter of last year.”

He expects moderate sales growthof about 1 to 2 per cent for the nexttwo years.

Curvaceous Explorer is more fuel efficientThe biggest change inredesign of Ford SUVis a smaller engine

MADHAVI ACHARYA-TOM YEW BUSINESS REPORTER

The reinvented all-new 2011 Ford Explorer was unveiled Monday. RENÉ JOHNSTON/TORONTO STAR

With files from the Star’s wire services