Gunman's Father and Brother Are 'in Shock,' Says a Source

By Diane Herbst

12/14/2012 at 08:50 PM EST

State police personnel lead children to safety away from the Sandy Hook Elementary School

Shannon Hicks/Newtown Bee/Reuters/Landov

The father and older brother of the gunman who was blamed for the Connecticut school shooting are being questioned by authorities but are not suspects, a law enforcement source tells PEOPLE.

The Associated Press reports that the gunman has been identified as 20-year-old Adam Lanza.

His unidentified father, who lives in New York City, and his older brother, Ryan, 24, of Hoboken, N.J., are "in shock," the law enforcement source tells PEOPLE.

They were being questioned by the FBI in the Hoboken police station but "are not suspects, they have no involvement," the source says.

"Imagine the 24 year old – he's lost his mother. Imagine the father, his son killed 20 kids," the source says."   

As for Adam, "It looks like there's mental history there," the law enforcement source says.

Adam Lanza died at the scene of the shooting that killed 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn.

His mother, Nancy Lanza, was found dead at her home, according to CNN.

The source describes the weapons used by Lanza as "legitimate." According to CNN, Lanza used two hand guns that were registered to his mother and a rifle.

Adam's parents were no longer together, the source says.   

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.

The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.

To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.

But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.

When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.

And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.

In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."

The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.

Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.

Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.

A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.

California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.

The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.

And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.

If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.

Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.

The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.

"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."

Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.

There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.

Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.

For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.

"They always attended to me," she said, "even though it's slow."

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Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .

Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .

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Bellflower High theater program gets a boost from star alumni

Edgar Bullington stood with a slight hunch on the stage of Bellflower High School's Robert Newman Theater, slivers of gray hair peeking from under his top hat, and sneered, "Bah, humbug!"

His portrayal of Dickens' famous crotchety old man was all the more convincing for his graying beard.

But the beard was no prop. Bullington's drama career spans more than 50 years and started right here, at Bellflower High.

Bullington and other Bellflower alumni have returned this month to put their own spin on "A Christmas Carol." Their rendition features Bullington as Ebenezer Scrooge, with other former students making up the cast. The goal is to raise money for the school's arts programs.

The production is the brainchild of Harry Cason, a 1974 Bellflower graduate who was dismayed when he saw the theater's condition earlier this year.

"It's all aged out," the Juilliard-trained actor said of the facility, built in 1959. "The lights don't work, and they don't have a sound system. The school never had the funds to replace them."

Cason enlisted the support of former classmates, including Don Hahn, now an executive producer at Disney, and pulled their former drama teacher, Robert Newman, out of retirement. Newman gave up teaching drama a few years before retiring in 1982 because he was "burned out." But he said he could not pass up the opportunity to help the theater that bears his name.

The group produced H.G. Wells' "War of the Worlds" earlier this year and raised nearly $5,000. Cason said the effort went so well that they decided to follow it with "A Christmas Carol," this time with students performing too.

"When I hear that they are cutting out music and drama, I get really disgusted," said Newman, 90, after a recent rehearsal. "We need creativity. Providing kids with an outlet is important."

Cason, Bullington and Hahn all spoke of the director's influence on their lives.

Hahn, once a shy, introverted student, went on to produce Disney's "Beauty and the Beast," "The Lion King" and "Frankenweenie," among others.

"There was a sense of enthusiasm and a culture that showed us it was fun," Hahn said about Bellflower's drama program. "Teachers and parents would pack the theater. It showed us that it was important for us to be there."

This time around, "We're here to show kids, 'We were you,'" Hahn said.

The generationally diverse cast members read their lines and took direction from Newman and Eleanor Packwood, the school's current drama teacher.

Newman once ran four to five plays a year in the theater. Now, Packwood struggles for enough funds to produce three plays a year, she said.

What money she can scrape together "goes to everything not falling apart around me," she said.

Light bulbs are expensive, so some stage lights have not been replaced and spotlights are locked in storage until performances.

When she first got to Bellflower High 21 years ago, "We had the money to have a musical with musicians," Packwood said. "Now my kids have to raise the money for it."

Saturday's performance is at 8 p.m. Tickets are $15 for adults and $5 for students.

Cason said the actors plan to give the performance their all, aiming to show Bellflower students that they, too, can succeed in the entertainment industry. "I want to give them an equal footing," he said. "At least let the lights work."

dalina.castellanos@latimes.com

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News Analysis: China Stays Beside North Korea, a Buffer Against the U.S.

BEIJING — Even though North Korea ignored China’s appeal not to test its new longer-range missile, the new leadership here appears intent on remaining a steadfast supporter of its wayward neighbor because it considers the North a necessary buffer against the United States and its allies.

Analysts said that China’s overriding fear was of a collapse of the hard-line Communist government in Pyongyang, which could lead to the reunification of the Korean Peninsula under a government in Seoul allied with the United States. China, they said, would consider an American presence on its doorstep untenable.

But China’s unyielding support of Kim Jong-un has a serious downside, they added, because it may lead to a result nearly as unpalatable: efforts by the United States and its regional allies Japan and South Korea to contain China.

“It stirs up regional security,” said Zhu Feng, a professor of international relations at Peking University who favors reducing support for North Korea. Without naming the United States, he added that the missile launching “facilitates China-bashers to work on hard-line policies to contain China, or just balance China.”

Obama administration officials were clearly exasperated this week with China’s inability to rein in Mr. Kim, saying that they were considering a stronger military presence in the Asia-Pacific region.

Beneath the official tolerance of North Korea, a debate about the wisdom of remaining loyal to such a world outlier and its defiant young leader simmers among analysts who strive to influence China’s foreign policy.

China runs the risk, Dr. Zhu said, of being bunched together with North Korea as one of “the two bad guys.”

“I feel very frustrated,” Dr. Zhu added. “At least we should distance ourselves from North Korea. The reality is, as long as North Korea can’t change their behavior, then peace and stability on the peninsula will be increasingly vulnerable.”

China has twice asked Mr. Kim, who inherited the leadership of North Korea after the death of his father at the end of last year, not to proceed with missile tests, and twice he has rebuffed the entreaties. Shortly after he came to power, a Chinese vice minister of foreign affairs, Fu Ying, visited Pyongyang to warn him not to conduct a test. In April, Mr. Kim went ahead anyway with a rocket launching, which fizzled. Last month, Li Jianguo, a member of the Politburo, visited North Korea to again urge restraint.

Despite their displeasure, China’s leaders see little choice but to put up with such indignities.

The slight pique expressed by the Foreign Ministry on Wednesday was not a signal that China would alter its course, the analysts said, or back tougher sanctions at the United Nations.

The official reaction was “very hesitant,” said Jin Canrong, a professor of international relations at Renmin University in Beijing.

After the missile test, Washington immediately started pushing for deeper sanctions at the United Nations and for a tightening of existing sanctions that China agreed to after earlier rocket launchings.

“China will not support a resolution; it will favor a president’s statement,” said Cai Jian, the deputy director of the Center for Korean Studies at Fudan University in Shanghai. A president’s statement at the United Nations is considered a much weaker form of condemnation than sanctions.

A major reason for not backing new sanctions is the fear that they would provoke North Korea to test another nuclear weapon, a far worse prospect than the launching of an unarmed rocket like the one on Wednesday, said Jonathan D. Pollack, a North Korea expert at the Brookings Institution in Washington.

“The North Koreans demurred from a third nuclear test in April, very likely under major Chinese pressure,” Dr. Pollack said.

In 2006 and 2009, North Korea tested a nuclear weapon soon after launching missiles. Dr. Pollack said a repeat of that action would pose a major test to the Obama administration, as well as to the new Chinese leader, Xi Jinping.

“Pyongyang may have decided now is the time to put down a major marker as Obama’s second term approaches and as South Korea elects a new president,” he said.

Beyond the hard strategic questions for the new Chinese leadership, the concerns among ordinary Chinese about why China bankrolls such a ruthless government should be considered, several Chinese analysts said.

“Internally in China, many voices are questioning all this spending on rocket launches instead of on improving people’s livelihoods,” said Jia Qingguo, an expert at Peking University.

The South Korean government recently estimated that North Korea had spent $2.8 billion to $3.2 billion since 1998 on its missile program, said Stephan M. Haggard, a professor of Korea-Pacific studies at the University of California, San Diego. That amount of money would have bought enough corn to feed the country for about three years, Dr. Haggard said.

The debate within China about its relationship with North Korea stems from the unusual nature of the alliance. Fundamentally, the two governments do not like each other and harbor deep mutual suspicions, said Stephanie T. Kleine-Ahlbrandt, the China and Northeast Asia project director of the International Crisis Group in Beijing. When North Korean officials visited Singapore this year to get new ideas for Mr. Kim’s government, leaders in Beijing — who have sent teams of their own to Singapore to study its softer form of one-party leadership — became very nervous, she said.

The larger fear is that any fundamental change in North Korea could send waves of refugees into China, who would be considerably more difficult to absorb than people of other nationalities on China’s borders.

“For the Chinese,” Ms. Kleine-Ahlbrandt said, “there are fewer problems keeping North Korea the way it is than having a collapse.”

Bree Feng contributed research.

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U.S. drops China’s Taobao website from “notorious” list

WASHINGTON (Reuters) – The United States on Thursday dropped a website owned by China‘s largest e-commerce company, Alibaba Group, from its annual list of the world’s most “notorious markets” for sales of pirated and counterfeit goods.

Taobao Marketplace, an online shopping site similar to eBay and Amazon that brings together buyers and sellers, “has been removed from the 2012 List because it has undertaken notable efforts over the past year to work with rightholders directly or through their industry associations to clean up its site,” the U.S. Trade Representative‘s office said in the report.

The move came just before an annual high-level U.S.-China trade meeting next week in Washington.

Taobao Marketplace is China’s largest consumer-oriented e-commerce platform, with estimated market share of more than 70 percent. The website has nearly 500 million registered users, with more than 800 million product listings at any given time. Most of the users are in China, Hong Kong, Taiwan and Macao.

The U.S. Chamber of Commerce has called Taobao “one of the single largest online sources of counterfeits.”

The Chinese Commerce Ministry strongly objected to Taobao’s inclusion on the USTR’s 2011 notorious markets list. A ministry spokesman said it did not appear to be based on any “conclusive evidence or detailed analysis.

Alibaba hired former USTR General Counsel James Mendenhall to help persuade USTR to remove Taobao from its list.

The Chinese company’s bid to shed its “notorious” label won support from the Motion Picture Association of America, a former critic of Taobao, which praised its effort to reduce the availability of counterfeit goods on its website.

But U.S. software, clothing and shoe manufacturers urged USTR to keep Taobao on the list.

To stay off in the future, USTR urged “Taobao to further streamline procedures … for taking down listings of counterfeit and pirated goods and to continue its efforts to work with and achieve a satisfactory outcome with U.S. rights holders and industry associations.”

USTR said it also removed Chinese website Sogou from the notorious markets list, based on reports that it has made “notable efforts to work with rights holders to address the availability of infringing content on its site.”

U.S. concerns about widespread piracy and counterfeiting of American goods in China are expected to be high on the agenda at next week’s meeting in Washington of the U.S.-China Joint Commission on Commerce and Trade.

The 2012 notorious markets list includes Xunlei, which USTR described as a Chinese-based site that facilitates the downloading and distribution of pirated movies.

Baixe de Tudo, a website hosted in Sweden but targeted at the Brazilian market, was also put on the list along with the Chinese website Gougou.

Warez-bb, which USTR described as a hub for pre-release music, software and video games, was also included. The forum site is registered in Sweden but hosted by a Russian Internet service provider, USTR said.

The full report can be found on USTR’s website at: http://www.ustr.gov/sites/default/files/121312%20Notorious%20Markets%20List.pdf

(Reporting by Doug Palmer; Editing by Will Dunham, Dan Grebler and Jim Marshall)

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The X Factor Reveals Season 2 Finalists

TV Watch

The X Factor

12/13/2012 at 09:10 PM EST

Carly Rose Sonenclar, Emblem3, Tate Stevens and Fifth Harmony

Ray Mickshaw/FOX (4)

Sparks will fly at the finale!

On Thursday, The X Factor revealed its top three acts, who will perform next week in the final night of competition – in hopes of taking home the $5 million recording contract.

Simon Cowell said it would take a miracle to get his girl group, Fifth Harmony, to the finale after they performed Shontelle's "Impossible" and Ellie Goulding's "Anything Could Happen" on Wednesday. Keep reading to find out if their dream came true ...

Apparently, miracles do happen! Fifth Harmony was the first act to be sent through to the finale.

They will compete against departing judge L.A. Reid's country singer, Tate Stevens, and Britney Spears's only remaining contestant, Carly Rose Sonenclar.

That means Simon's promising boy band, Emblem3, are out of the running for the big prize.

"This is the way it goes on competitions," Simon said. "I'm gutted really for them ... But it happens."

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — After health care reform is complete, states that have the most illegal immigrants could be left with a disproportionate number of uninsured people — and a financial burden.

Two-thirds of the nation's estimated 11 million illegal immigrants live in eight states. None of them is covered by President Barack Obama's reform law.

So when the plan is fully implemented, illegal immigrants could make up a quarter of the uninsured.

Over the past decade, many illegal immigrants sought care at community clinics. But those clinics will also have to care for the newly insured. Some observers fear they won't be able to do both.

Hospitals are concerned that many immigrants will instead go to emergency rooms just as government funding for that care is cut.

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State population rises in sign of economic recovery

California's population has grown to 37.8 million, continuing the state's trend of slowing but steady growth — about 1% annually — over the last decade, according to new population estimates released by the state Department of Finance.

The population increased by 256,000 people since July 2011, a growth rate of 0.7%. It's roughly the same growth rate as last year, but some experts pointed to an uptick in the number of people moving in and out of California and between counties as a sign of economic recovery.

"We've been mired in this deep slump, economically and demographically, and we're all looking for signs of revival," said USC demography and urban planning professor Dowell Myers. "During the recession, everyone froze. People didn't move as fast as normal."

In Los Angeles County, more people moved out than into the county in 2011, but at a significantly slower rate than in 2010, the state numbers show.

"Overall, movements are speeding up in both directions, but L.A.'s attraction is winning the war," said Myers, who also noticed an increase in movement in the entire western region, particularly among young adults. "It means the system is unfreezing, it's loosening up....This is the beginning."

Recent estimates by the American Community Survey showed that about 100,000 more Californians left the state than moved here. Most of those who left headed to Texas, Arizona and Oregon.

But state demographers cautioned that the out-of-state migration numbers may appear misleading because immigrants often enter through California before settling in other states.

"People see that so many people are leaving the state, and they think 'oh, it's because California business is bad,' " said Bill Schooling, chief of demographics research for the state Department of Finance. "It's more that California, particularly with counties like L.A., is a huge gateway state."

Los Angeles remains the state's most populous county, with more than 9.9 million residents. More than 26% of the state's entire population lives within the Los Angeles County limits.

Schooling noted that much of the state's population growth was concentrated in coastal counties, where people tend to be younger and more mobile.

Economists also said that job growth has been much stronger along the coast, particularly with growth in foreign trade, technology and tourism.

"The state recovery really started in the Bay Area, spread to Orange County and San Diego, and in the last six months, has spread to L.A. County," said Stephen Levy, director of the Center for Continuing Study of the California Economy. "Slow population growth is consistent with the early phase of recovery."

Births helped maintain the population growth, with 503,000 babies born in California between July 2011 and July 2012. There were 234,000 deaths in the state during the same time, a slight increase from past years, according to the state estimates.

Until the state becomes more stable economically, it is difficult to make long-term population projections, experts said.

"This is a step in the right direction," Myers said. "And we will, we should, have much better news next year."

rosanna.xia@latimes.com

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IHT Rendezvous: IHT Quick Read: Dec. 13

NEWS President Bashar al-Assad’s forces have resorted to firing ballistic missiles at rebel fighters inside Syria, Obama administration officials said Wednesday, escalating a nearly two-year-old civil war as the government struggles to slow the momentum of a gaining insurgency. Michael R. Gordon and Eric Schmitt report.

A former senior commander of the Bosnian Serb Army, Zdravko Tolimir, was convicted of genocide on Wednesday and sentenced to life in prison for his role in the killings of thousands of prisoners near the Bosnian town of Srebrenica in July 1995. Marlise Simons reports.

German lawmakers on Wednesday passed legislation ensuring parents the right to have their boys circumcised, bringing a close to months of legal uncertainty set off by a regional court’s ruling that equated the practice with bodily harm. Melissa Eddy reports from Berlin.

After a raid at Deutsche Bank’s headquarters, the company disclosed Wednesday that two of its highest-ranking executives were a focus of a tax evasion investigation, dealing a fresh blow to the German institution’s already battered reputation. Jack Ewing reports from Frankfurt.

Members of the Organization of Petroleum Exporting Countries left their 30 million-barrel-per-day quota for oil production intact Wednesday, indicating the cartel’s satisfaction with current crude prices and its reluctance to do anything to further weaken the world economy. Stanley Reed reports from London and Clifford Krauss from Houston.

Tripoli is no longer known for its meandering souks, its commerce or its culture: The modern-day city is known for its widespread poverty, high levels of corruption and repeated bouts of violence. Josh Wood reports from Tripoli, Lebanon.

In October, the government of Cyprus announced it was negotiating licensing deals with 15 companies to explore for natural gas in a deep-water zone off the island’s southwest coast. The government says it expects to sign four contracts early next year — raising deep concerns over the possible reaction of Turkey, which has never recognized the Republic of Cyprus or its maritime borders since the de facto division of the island in 1974. Stephen Glain reports from Nicosia, Cyprus.

ARTS After traveling through Russia, setting up shop at Tate Modern in London and welcoming more than 350,000 visitors since its creation in 2009, the Museum of Everything has parked its 500 works of outsider art in Paris for the winter, at the end of a dark alleyway in St Germain des Prés in what used to be a catholic seminary. Saskia de Rothschild writes from Paris.

A new Paris Opera production of Bizet’s “Carmen” at the Bastille involves a suitcase, a wedding dress and a Marilyn Monroe wig. George Loomis reviews.

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U.S. federal agency to test RIM’s BlackBerry 10

TORONTO (Reuters) – Research In Motion said a U.S. federal agency, which recently outlined plans to move away from BlackBerry in favor of Apple Inc’s iPhone, is now set to begin testing RIM‘s new BlackBerry 10 platform and devices.

The U.S. Immigration and Customs Enforcement agency (ICE), will early next year begin a pilot program on RIM’s new line of BlackBerry 10 smartphones and BlackBerry Enterprise Service 10 (BES 10), which allows corporations and government users to run the new devices on their networks, a RIM spokeswoman said late on Wednesday.

The news, which comes just as shares of the embattled company rallied to their highest close in seven months, signals that RIM’s BlackBerry 10 platform is gaining some traction ahead of its official launch next month.

RIM, a one-time pioneer in the smartphone industry, has lost market share in recent years to the iPhone and devices powered by Google Inc’s market-leading Android operating system, even among the business audience who once used BlackBerry devices exclusively.

Waterloo, Ontario-based RIM is now seeking to persuade both corporations and government users to stick with its smartphones, which have long been valued for their strong security features. It promises that its new line of devices, which will be powered by the BlackBerry 10 operating system, will be both smoother and faster than previous BlackBerry phones.

RIM is betting that these new devices – to be launched on January 30 – will revive its fortunes. But that may well depend to a large extent on the response from enterprise customers, many of whom have recently begun to flee to rival platforms.

ICE is one such example. The agency, in October, announced plans to end a long relationship with RIM, stating that its now aging line-up of BlackBerry devices could “no longer meet the mobile technology needs of the agency.

At the time, ICE outlined intentions to buy iPhones for more than 17,600 employees. It is not immediately clear whether the agency plans to revisit this plan or whether its intends to use RIM’s new BES 10 platform to manage both iPhones and BlackBerry devices. A spokeswoman for the agency was not immediately able to comment on the pilot program or the agency’s plans.

SHARES SURGE

The news comes soon after yet another rally in RIM shares on Wednesday, after Eric Jackson – a long-time bear on RIM’s stock – penned an opinion piece on his now bullish stance on the company.

Jackson, the founder of Ironfire Capital, in his piece, said parallels drawn by some analysts between RIM and its now-defunct rival Palm are flawed, as Palm never had the kind of installed subscriber base that RIM enjoys.

In his article, published on Wednesday on the TheStreet.com, Jackson contends that RIM’s new BlackBerry 10 devices have much better odds of success than Palm’s Pre device, which failed to capture a following despite positive reviews on the device and its operating system.

Jackson, who was short RIM’s stock for an extended period, argues that the positive sentiment building in RIM’s stock ahead of the launch of the make-or-break line of devices is unlikely to dissipate in a hurry, as a large portion of RIM’s 80 million subscribers are likely to upgrade to BB10 when the new devices are launched. Jackson said he now has a long position in RIM.

Shares in the company rose 5.6 percent to close at $ 13.31 on the Nasdaq – their highest close since May 1. Its Toronto-listed shares rose 5.8 percent to close at C$ 13.14.

The stock has more than doubled in price since September 24, when the shares were trading slightly above the $ 6 level in both New York and Toronto. The wave of optimism around BB10 has in recent weeks been bolstered by a number of analyst upgrades on the stock.

(Editing by Dan Grebler and Muralikumar Anantharaman)

Tech News Headlines – Yahoo! News

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