Computer gian IBM has developed a new formula for encrypting sensitive data transmitted on the Internet which it says will be nearly impossible to crack.

The model, based on a problem that defied mathematicians for 150 years, does not yet have concrete applications, International Business Machines said in a statement.

"This is a pioneering accomplishment in the field of cryptography and a big step towards the ultimate in cryptography a truly invincible mathematically proven method for protecting private computer information from unwanted viewing," said Ashok Chandra, manager of computer science at the Almaden laboratory. "I would describe this achievement as being more scientific than practical, at this time," he said.

The person who wants to protect a message sent over the Internet uses a program that automatically scrambles the data using a "public key", a publicly known series of codes. Recipients then unscramble them, using their complementary and secret "private keys". The problem, which was impossible to solve until now, is that this type of program does not always generate keys that are difficult to crack, offering weak links in the coding.

US telecom rates cut

The Federal Communications Commission voted to reduce the access charges long-distance telephone companies pay to have their calls placed onto local networks. MCI Communications Corp. said the reduction amounts to $1.7 billion in 1997. Over five years, the plan is expected to reduce access charges by $18.5 billion. The decision will take effect from July 1, the FCC said. The program is part of a plan implementing telecommunications deregulation while guaranteeing universal access and allowing schools to be connected to the Internet. MCI President Timothy Price said "today's announcement by the FCC of an immediate $1.7 billion net reduction in interstate access charges is a first step towards eliminating the billions of dollars of unjustified overcharges."

S. Korea's textile giant goes bankrupt

South Korea's biggest woollen textile maker, Yusung Co. was declared bankrupt by its main creditor, dealing another blow to banks still reeling from the collapse of Hanbo and Sammi groups. "Yusung failed to honor a total of 270 million won ($302,000) worth of promissory notes by the close of business yesterday, so we declared it insolvent," a spokesman for Commercial Bank of Korea said.

In South Korea, if companies failed to meet the second deadline for repayments,they are automatically declared bankrupt. The bankruptcy announcement followed the company's application on Wednesday for court protection to freeze its assets and liabilities. Yusung, capitalized at $16.7 million, cited worsening cash flow problems and mounting financial costs for its resort to court protection. Trading in shares of Yusung was suspended on the Korea Stock Exchange on Wednesday, with investors taking another failure of a listed firm with a sharp 1.8 percent drop in the benchmark index on Wednesday.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.