Microsoft has agreed to acquire online telecom company Skype for $8.5 billion.

The two companies hope to complete the deal by the end of the year, subject to regulatory clearance. Skype will become a new business division within Microsoft, led by current Skype CEO Tony Bates who'll become President of the Microsoft Skype Division.

Google has updated its Google Goggles visual search application with a feature that allows users to suggest their own results if the subject of a photo can't be identified.

The app, which searches the web to identify pictures taken using the phone's camera, can provide results for a variety of queries - from artwork to business cards.

Chinese telecoms manufacturer Huawei Technologies has been awarded a four-year contract to upgrade the Orange and T-Mobile networks operated by Everything Everywhere.

The work will improve reception, expand HD voice calling and will also prepare for a move to 4G LTE technology.

Nutshell Mobile, the virtual mobile network launched in the UK last March by industry veterans Gareth Jones and Gordon Webber, is reported to have ceased trading.

The company, which used the Three UK network, offered 'pay monthly' contracts to customers who were unable to pass credit checks for other networks.

Vodafone UK and fund-raising website JustGiving have launched a free text donation service called JustTextGiving by Vodafone.

There are no set-up or running costs for participating charities and no network charges for people making donations. Any of Britain's 184,000 charities can apply for a unique 6-character code that'll enable them to receive SMS donations of up to £10.