August 3, 2011 (Silicon Valley has jobs advice for Washington)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, AUGUST 3, 2011

** Planning a communications-related course for 2011? See http://benton.org/headlines_in_the_classroom to learn how Headlines might help. **

AGENDA
FCC Confirms August Agenda - public notice
FCC Seeks Comment Regarding Possible Revision or Elimination of Rules - public notice

LABOR
   Making It Easier for Immigrants to Start Companies in the United States - press release
   Silicon Valley has jobs advice for Washington
   Jobs (Not Steve) - analysis
   Verizon Workers Threaten to Strike on Plan for ‘Gutting Health Care’
   A Rift Divides Members of Journalism Groups
   Ex-Googlers Flock 35 Miles North to Twitter [links to web]
   Fewer IPOs will stall tech jobs

GOVERNMENT & COMMUNICATIONS
New Tool Keeps Censors in the Dark
Russian minister calls for limits on the Internet

SPECTRUM/WIRELESS
   Use It vs. Lose It: The Threat of Internet Rationing - editorial
   AT&T subs holding on to their unlimited plans -- but change is coming
   Judiciary chairman backs AT&T/T-Mobile
   LTE revolution faces spectrum fragmentation
   Consumers need to be sold on benefits of mobile payments
   MetroPCS to begin VoIP transition in early 2012

INTERNET/BROADBAND
Measuring Broadband America Plan - press release
Is Prince George's (Maryland) becoming a ‘high-tech hotspot'? [links to web]

TELEVISION/RADIO
   FCC Continues Equal Employment Opportunity Audits - public notice
   Comcast-NBCU Under Fire for Dragging Its Feet on Diversity
   Cable Upfront Scores $9 Billion, Beats Broadcasters [links to web]
   Topeka Triopoly Takes Off [links to web]

CONTENT
In Battle With MPAA, Zediva Is Down For The Count
YouTube: The Epic Six-Year Tale [links to web]

PRIVACY
Privacy Rules

CYBERSECURITY
   Auditors: Pentagon Cyber Budget Has Fuzzy Numbers
   Debt deal could be a blow for cybersecurity [links to web]
   Pentagon Seeks a Few Good Social Networkers
   McAfee reveals huge series of cyberattacks

ENERGY
Why You Should Stop Worrying And Learn To Love The Smart Grid [links to web]

RETAIL
Amazon Battles States Over Sales Tax
Mall Owners Fight Internet Erosion With Technology

POLICYMAKERS
Google Hires Federal Trade Commission Intellectual Property Expert Michel
HP Hires New Government Affairs Chief [links to web]

NEWS FROM ABROAD
Telstra submits split plans

MORE ONLINE
Among Affluent Americans, Print Media Is Tops [links to web]

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AGENDA

FCC AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission confirmed the agenda for its August 9 meeting. The FCC will consider:
A Report and Order, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order addressing several proposals to remove regulatory barriers to the full and effective use of certain spectrum bands for wireless backhaul to promote broadband deployment. The item also addresses other ways to make additional spectrum available for wireless backhaul.
A Notice of Proposed Rulemaking to reduce regulatory burdens and streamline the review process for foreign ownership of common carrier radio licensees (e.g., wireless phone companies) and certain aeronautical radio licensees under section 310(b)(4) of the Communications Act, while ensuring the Commission continues to receive the information it needs to serve the public interest. This item does not address issues related to foreign ownership of broadcast licensees.
An Order on Reconsideration addressing two section 310(b)(4) foreign ownership rulings granted to Verizon Wireless in two proceedings approving its acquisitions of Rural Cellular Corporation (RCC) and Alltel Corporation (Alltel).
benton.org/node/85100 | Federal Communications Commission
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FCC: POSSIBLE ELIMINATION OF RULES
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission published a plan for the review of rules adopted by the agency in calendar year 2000 which have, or might have, a significant economic impact on a substantial number of small entities. The purpose of the review is to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objective of section 610 of the Regulatory Flexibility Act (RFA), to minimize any significant economic impact of such rules upon a substantial number of small entities.
In reviewing each rule the FCC will consider the following factors:
(a) The continued need for the rule;
(b) The nature of complaints or comments received concerning the rule from the public;
(c) The complexity of the rule;
(d) The extent to which the rule overlaps, duplicates, or conflicts with other federal rules and, to the extent feasible, with state and local governmental rules; and
(e) The length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule.
benton.org/node/85101 | Federal Communications Commission
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LABOR

IMMIGRANTS AND ENTREPRENEURS
[SOURCE: The White House, AUTHOR: Alejandro Mayorka]
The United States has a long, rich history of welcoming innovative entrepreneurs and skilled workers into our country. These men and women fuel our nation’s economy by creating jobs, and promoting new technologies and ideas. Today, I joined Secretary of Homeland Security Janet Napolitano and outlined a series of new policy, operational, and outreach efforts that will help fuel the nation’s economy and stimulate investment by making it easier for high-skill immigrants to start and grow companies and create jobs here in the United States. Encouraging the kinds of streamlining measures USCIS is taking today has been one key focus of the President's Council on Jobs and Competitiveness because they help ensure that America can continue to out-innovate and out-compete the world in a global economy.
As part of the Administration’s comprehensive effort to attract and retain high-skill entrepreneurs, USCIS announced today that it will:
Clarify that immigrant entrepreneurs may obtain an employment-based second preference (EB-2) immigrant visa if they satisfy the existing requirements, and also may qualify for a National Interested Waiver under the EB-2 immigrant visa category if they can demonstrate that their business endeavors will be in the interest of the United States;
Expand the Premium Processing Service to immigrant petitions for multinational executives and managers;
Clarify when a sole employee-entrepreneur can establish a valid employer-employee relationship for the purposes of qualifying for an H-1B non-immigrant visa;
Implement fundamental enhancements to streamline the EB-5 process based directly on stakeholder feedback;
Launch new engagement opportunities to seek input and feedback on how to address the unique circumstances of entrepreneurs, new businesses and startup companies.
[Mayorkas is Director of U.S. Citizenship and Immigration Services]
benton.org/node/85096 | White House, The | Dept of Homeland Security
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SILICON VALLEY AND JOBS
[SOURCE: Fortune, AUTHOR: Michal Lev-Ram]
With the debt ceiling standoff resolved (sort of), Silicon Valley's technorati gathered in Palo Alto (CA) to dole out advice on Washington's next gargantuan problem, job creation. Tech heavyweights like Facebook COO Sheryl Sandberg, venture capitalist John Doerr and Reed Hastings, CEO of Netflix -- all members of President Barack Obama's Council on Jobs and Competitiveness -- emphasized the importance of immigration reform and better education in generating jobs and innovation. The Council was formed about six months ago to provide non-partisan advice to the President on how the government can "best foster growth, competitiveness, innovation, and job creation." It is schedule to meet with him in the fall to deliver policy recommendations. "We have to focus on our education system," said Facebook's Sheryl Sandberg. "We're falling behind in every way possible." Sandberg talked about what can be done to get more women in particular into high-tech jobs, such as giving girls more time with computers from an early age. "Let your daughters play video games," she told an audience comprised of educators, entrepreneurs and investors. Sandberg also talked about the role Facebook's ecosystem of developers has played in job creation. While Facebook employs about 2,600 employees, she noted that there are 2.5 million developers globally creating applications for the social network. She added that Facebook has also given rise to entire new industries, like social media consulting.
On immigration reform, the panel urged the government not only to make it easier for high-skilled workers to stay in the United States, but also to provide incentives for more professionals to enter the U.S. market.
benton.org/node/85095 | Fortune
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POSSIBLE VERIZON STRIKE
[SOURCE: Bloomberg, AUTHOR: Devin Banerjee]
Lowell McAdam, who just started as chief executive officer at Verizon Communications, is facing the possibility of a strike by thousands of repairmen, service workers and phone operators his first week on the job. The company is negotiating with more than 45,000 workers at two unions over the terms of a contract to replace one that expires at midnight Aug. 6. Among the issues to be resolved, health care has the company and unions most sharply divided. Verizon wants workers to contribute more for health benefits, including beginning to pay monthly premiums for the first time, while the unions say their members can't accept the financial burden given the current economy. “The company is insisting on gutting health care,” Bob Master, a legislative and political director for the Communications Workers of America, said. “I have never seen bargaining this unproductive in 25 years.” Richard Young, a spokesman for Verizon, said the company is only asking that union workers contribute upfront for health care like other employees do. The changes are necessary to keep the country’s second-largest phone company competitive, he said.
benton.org/node/85117 | Bloomberg
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JOURNALISM GROUPS
[SOURCE: New York Times, AUTHOR: Tanzina Vega]
As the National Association of Black Journalists opens its annual conference in Philadelphia, a topic of conversation is likely to be its recent efforts to get more black anchors on prime-time news programs. But another issue may form a larger backdrop — the association’s decision to end its alliance with three other minority journalist groups after nearly 20 years. The rift between NABJ and the Unity: Journalists of Color coalition comes as the number of minorities in newsrooms across the country has declined for the third consecutive year. When the association joined Unity in the early 1990s, its goal — along with the other members, the National Association of Hispanic Journalists, the Asian American Journalists Association and the Native American Journalists Association — was to make newsrooms and reporting more inclusive. The highlight of the alliance is the Unity: Journalists of Color conference, which brings the groups together every four years. This year, a debate erupted between board members from NABJ and Unity over how much revenue N.A.B.J. and other member organizations should receive as a result of the conference. NABJ members also questioned the need for Unity as a stand-alone organization and whether it was using its revenue to effectively support minority journalists. Unable to reach an agreement, NABJ withdrew from the 2012 Unity conference in April and announced last week that it would hold its own conference in New Orleans in June. That decision has left some NABJ members divided over how and why it was made and what they will do next year.
benton.org/node/85036 | New York Times
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VENTURE CAPITAL STALLED
[SOURCE: Politico, AUTHOR: Josh Boak]
America’s main engine for high-tech jobs could soon be running on fumes. Venture capital firms — those gurus who fronted the cash for Apple, Google and a host of other household names — committed $7.5 billion to 966 deals last financial quarter, according to PricewaterhouseCoopers and the National Venture Capital Association. But that level of investment is not sustainable without changes to how publicly traded companies are regulated, according to association President Mark Heesen. The problem is that venture capital firms have to replenish their coffers by having companies issue stock in initial public offerings. Without new public offerings, it’s harder for venture capital firms to exit their investments, pay back their own investors and buy stakes in new companies. Not enough IPOs means not enough investment in the kinds of start-ups the Obama administration says will reinvigorate the nation’s sluggish economy.
benton.org/node/85108 | Politico
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GOVERNMENT & COMMUNICATIONS

KEEPING CENSORS IN THE DARK
[SOURCE: Technology Review, AUTHOR: Brian Krebs]
A new approach to overcoming state-level Internet censorship relies, ironically enough, on a technique that security experts have frequently associated with government surveillance. Current anti-censorship technologies, including the services Tor and Dynaweb, direct connections to restricted websites through a network of encrypted proxy servers, with the aim of hiding who's visiting such sites from censors. But the censors are constantly searching for and blocking these proxies. A new scheme, called Telex, makes it harder for censors to block communications. It does this by taking traffic that's destined for restricted sites and disguising it as traffic meant for popular, uncensored sites. To do this, it employs the same method of analyzing packets of data that censors often use.
benton.org/node/85050 | Technology Review
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RUSSIAN CALLS FOR INTERNET LIMITS
[SOURCE: Reuters, AUTHOR: Guy Faulconbridge]
Russia's interior minister called for limits on the Internet to prevent a slide in traditional cultural values among young people, raising fears of controls over the vibrant Russian-language web. Many of Russia's 53 million web users fear that hardliners around Prime Minister Vladimir Putin would like to impose Chinese-style limits on the Internet to stave off any potential Arab Spring-style unrest ahead of the presidential election. Russia's iPad-wielding president, Dmitry Medvedev, has ruled out draconian controls while suggesting a discussion of how to deal with clearly illegal content such as child pornography. Interior Minister Rashid Nurgaliyev is the most senior official to publicly propose limits for cultural reasons.
benton.org/node/85103 | Reuters
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SPECTRUM/WIRELESS

INTERNET RATIONING
[SOURCE: Public Knowledge, AUTHOR: Art Brodsky]
[Commentary] AT&T’s announcement that it would start to throttle the “heaviest users” on its wireless network is only the latest in a series of developments that place the idea of a thriving, useful Internet at risk. No one knows why rationing schemes like data caps are triggered, what they are supposed to do, much less if they are successful. Serious doubts have been raised whether caps are necessary at all to manage networks or to cover costs from increased Internet use. But consumers who wants to use the Internet more are the ones who will suffer. Some institutions, like the New York Times editorial page, the news pages of the Washington Post, and Canadian regulators, are paying attention. Some institutions, like the Federal Communications Commission, are not.
benton.org/node/85085 | Public Knowledge
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AT&T UNLIMITED DATA PLANS
[SOURCE: Connected Planet, AUTHOR: Kevin Fitchard]
Starting in October, AT&T will start throttling speeds to its heaviest smartphone data users still using unlimited data plans, cutting back their download speeds after the reach an unspecified threshold. Since AT&T introduced usage-based pricing last year, it’s been gradually shifting smartphone customers to tiered plans, but AT&T grandfathered all of its previous unlimited customers under the new policy, allowing them to keep their restriction-less plans even if they signed new contracts or upgraded handsets. With throttling, obviously those days of unfettered access are over, though only the top 5% of heaviest users will feel the effects of the new policy. It’s worth examining, though, just how many AT&T customers will see any difference. Approximately 19+ million AT&T customers are still on unlimited plans. By defining a specific cap, AT&T would essentially be introducing another tier into its pricing plans, which would defeat the purpose of a supposedly unlimited plan. AT&T wants to keep that unlimited allure intact, while reserving the right to judge if that privilege is being abused. Think of like it an unlimited speed limit law: You can drive as fast as you want, but if a state trooper finds your speed to be reckless he can still ticket you.
benton.org/node/85054 | Connected Planet
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SMITH BACKS AT&T
[SOURCE: Politico, AUTHOR: Jennifer Martinez]
AT&T has picked up the support of powerful House Judiciary Committee Chairman Lamar Smith (R-TX), who urged federal regulators this week to consider the “many benefits” of the company's pending T-Mobile bid. Chairman Smith sent a letter to Attorney General Eric Holder and FCC Chairman Julius Genachowski that was aimed, in part, at countering several Democratic lawmakers who recently urged the officials to block the $39 billion transaction. “Recently you have heard from members of Congress who, based on the limited information provided in congressional hearings, urged you to conclude that this merger should be blocked,” Chairman Smith wrote in the missive. “Unfortunately, they provided you with only one side of the story. I feel compelled to briefly point out the other side.” Chairman Smith then listed some of the benefits that could be yielded from approving the wireless mega-deal, which are largely similar to AT&T’s arguments in favor of the proposed acquisition. He argued that the deal would allow AT&T to expand its LTE mobile broadband service to 97 percent of Americans, provide better service, and create jobs and innovation through an improved broadband network.
benton.org/node/85082 | Politico
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SPECTRUM FRAGMENTATION
[SOURCE: GigaOm, AUTHOR: Ryan Kim]
The world is going LTE, but the availability of spectrum in different countries and regions is fragmenting the 4G wireless standard internationally, according to research from Informa Telecoms & Media. The company found distinct regional bands are emerging for LTE, which is posing a challenge for manufacturers looking at which bands to support in their devices. Informa said the availability of spectrum for 4G varies widely from country to country and by region with some bands only available in particular countries. For example, the 700MHz band, which is popular in the U.S., will only be adopted by a handful of operators outside the Americas. The 1900MHz band is most likely to be confined to the U.S. and Argentina, while the 1500MHz band will be limited to Japan.
benton.org/node/85098 | GigaOm
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BENEFITS OF MOBILE PAYMENT
[SOURCE: GigaOm, AUTHOR: Ryan Kim]
The way people have been talking about near field communication, digital wallets and carrier billing, you'd think consumers were ready to embrace mobile payments. But Consumer Reports thinks consumers may not be that excited yet about paying for goods with their phones, nor should they be. The consumer advocacy organization highlighted transaction problems and fees when warning about potential hurdles standing in the way for mobile payments. Consumer Reports said only 5 percent of recent survey respondents had used their cell phone to pay for day-to-day purchases in the previous month, and only 10 percent had billed a purchase to their home or cell phone account. The low usage number isn't completely surprising, given that mobile payments are still quite new to most people, but it underscores the challenges ahead in getting consumers to opt-in to the tech. Many are open to the idea, but there needs to be a good case for ease of use and added flexibility. Payment processes like near field communication require new hardware purchases and some changes in behavior. The challenge for Google , the carrier consortium Isis and others pursuing NFC payments will be to convince consumers that it’s clearly a better option than swiping a card, which is pretty familiar and easy for people.
benton.org/node/85062 | GigaOm | Consumers Reports
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METROPCS GOING VOIP
[SOURCE: Connected Planet, AUTHOR: Kevin Fitchard]
MetroPCS will introduce its first carrier VoIP services in the first quarter of 2012, CEO Roger Linquist said today during Metro’s earnings call. Using its new long-term evolution (LTE) network, MetroPCS will take the first steps in migrating its circuit-switched voice service over to an IP Multimedia Subsystem (IMS)-driven voice-over-LTE (VoLTE) service, a process it has already begun with the migration of its SMS and MMS services to the same platform. “We are planning to begin introducing VoLTE-capable handsets early next year to move voice as well as data traffic to our LTE network,” Linquist said. Linquist added that moving to VoIP will allow MetroPCS to use its limited spectrum much more efficiently. While MetroPCS already is one of the most efficient operators on a subscriber per megahertz basis, it is always looking for more ways to increase that efficiency as well as expand its frequency base through strategic acquisitions., Lindquist said.
benton.org/node/85056 | Connected Planet
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INTERNET/BROADBAND

MEASURING BROADBAND AMERICA PLAN
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission conducted the first nationwide test of residential wireline broadband service finding that:
For most major broadband providers, actual speeds are generally 80%-90% of advertised speeds or better, although performance varies by technology and service provider.
Even during peak usage periods -- between 7:00 pm and 11:00 pm on weeknights, when more home users are online and service quality declines -- most major broadband providers deliver actual speeds that are 80% of advertised speeds or better.
That’s significantly better than a study of 2009 broadband performance in the U.S. and a recent study of broadband performance in the UK, both of which found actual speeds were roughly 50% of advertised.
All technologies measured – DSL, cable, and fiber-to-the-home broadband – can deliver good service to consumers depending on their needs.
While download speed is the major factor affecting service performance, upload speed and latency (lag time in transmitting data) also matter for some applications.
Increased speed improves performance, but with some limits. For basic Web browsing -- viewing
web pages but not downloading or streaming online video -- performance improves as speeds increase, but only up to ~10 Mbps. However, high-demand applications like video conferencing, HD video streaming, gaming, or multiple activities occurring within one household may benefit from very high speeds.
Sascha Meinrath, Director of the New America Foundation's Open Technology Initiative, said: "The FCC's report documents considerable variation among ISP’s advertised speeds and actual broadband speeds. According to the report, a select few providers appear to be meeting their advertised speeds, but, most others are failing to do so. What the FCC's report makes clear is that there is an immediate need for disclosure and transparency to consumers regarding the expected performance of the Internet services they are purchasing."
benton.org/node/85086 | Federal Communications Commission | read the report | Technical Appendix | B&C | New America Foundation | Multichannel News | GigaOm | Connected Planet | ars technica | The Consumerist
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TELEVISION/RADIO

FCC CONTINUES 2011 EEO AUDITS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
On August 1, 2011, the Federal Communications Commission mailed the second of its Equal Employment Opportunity (EEO) audit letters for 2011 to randomly selected radio stations. The FCC annually audits the EEO programs of randomly selected broadcast licensees and multi-channel video programming distributors (MVPDs). Each year, approximately five percent of all radio and television stations and MVPDs are selected for these EEO audits.
benton.org/node/85083 | Federal Communications Commission | list of radio stations | see letter to stations
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COMCAST DIVERSITY
[SOURCE: The Wrap, AUTHOR: Johnnie Roberts]
When Comcast was angling to take over NBCU, the cable giant promised prominently to increase the profile of minorities at the company and launch eight independent cable networks, including four under African-American control. But a Who’s Who of African American media figures and civil rights leaders are frustrated that Comcast doesn't seem to be moving fast enough, if at all. That includes a recent disastrous meeting between Comcast executives and Oprah Winfrey, in which Comcast executives rebuffed the media queen's request for support for her OWN network. Leading entrepreneur Russell Simmons was rebuffed when he approached NBCU CEO Steve Burke about acquiring the Style network. The National Urban League, NAACP and Al Sharpton's National Action Network, major civil rights groups, see several trouble spots with their efforts to work with Comcast.
benton.org/node/85053 | Wrap, The
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CONTENT

ZEDIVA LOSES IN COURT
[SOURCE: paidContent.org, AUTHOR: Joe Mullin]
When the Zediva DVD-streaming service popped up earlier this year, its novel legal strategy immediately became a subject of debate among law school professors and digital copyright pundits. Whatever the bounds of copyright are in the digital age, Zediva now appears to be outside them. A Los Angeles federal judge has hit the service with an injunction that will force Zediva to stop streaming very soon. Zediva hoped to preserve its business with a legal argument that it wasn't so different from a bricks-and-mortar DVD shop; Zediva was simply “place-shifting” the physical DVD rental, making the internet into essentially a “cord” from a user’s computer to a DVD player borrowed from Zediva. Unlike services like Netflix or digital rentals like those available on iTunes and Amazon, Zediva never made a digital copy. It simply put a physical DVD into a DVD player located in its Silicon Valley data center and streamed the movie online to its customers. It’s now clear that strategy, described by some as a “loophole,” isn't going to work so easily. Zediva was hit with a lawsuit by the Motion Picture Association of America back in April, and although the small company lawyered up and vigorously defended itself, it’s now lost a key battle.
benton.org/node/85057 | paidContent.org
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PRIVACY

PRIVACY RULES
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
The burgeoning News Corp. phone-hacking scandal has shined a spotlight on the issue of privacy in recent days. For cable operators, programmers and advertisers, though, the issue has long been under the klieg lights, thanks to an inescapable recognition that we - and our kids - are living in the online space these days. Privacy legislation has been kicking around Washington for almost a decade, generally caught in the ideological gap between Democrats' desire for government involvement and Republicans' defense of free-market forces. That was before broadband became the buzzword on every policymaker's lips and revelations piled up about how cutting-edge technology was slicing into privacy rights. There has never been as much activity on the privacy policy front in the nation's capital as there is today. A raft of bills have been introduced in the House and Senate, with more on the way; the Justice Department and Federal Trade Commission are conducting investigations; and a pair of advisory reports are due from the FTC and the Obama administration, by way of the Commerce Department. All of these efforts seek to provide citizens with basic protections from hackers, thieves and unwanted marketers. The subject of security is also under serious study and scrutiny by corporations, think tanks and legislators. Service providers, online advertisers and marketers - whose digital sales tools peer ever deeper into consumers' lives by recording channel choices and keystrokes - have a lot at stake in how the government chooses to bulk up online privacy protections.
benton.org/node/85063 | Multichannel News
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CYBERSECURITY

PENTAGON CYBER BUDGET
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
Federal auditors have told Pentagon officials to define "cybersecurity" so the military services adopt the same terminology, and by extension, calculate their cyber spending plans in comparable ways. With a clear definition, the department could avoid having to redo the math on its cyber budget, something it was forced to do twice this year. The order follows the disclosure of fuzzy math in the Defense Department's cyber budget. After Nextgov questioned why the Air Force's $4.6 billion 2012 budget request for cybersecurity was $2.3 billion more than Defense's servicewide spending proposal, Pentagon officials upped their total figure from $2.3 billion to $3.2 billion. Eventually, a Pentagon spokesperson explained that the service's estimate differed dramatically because the Air Force included "things" that are not typically considered information assurance or cybersecurity.
benton.org/node/85041 | nextgov
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SOCIAL NETWORKERS FOR DEFENSE
[SOURCE: New York Times, AUTHOR: David Streitfeld]
The Pentagon is developing plans to use social networking sites like Facebook and Twitter as both a resource and a weapon in future conflicts. Its research and development agency is offering $42 million in funding to anyone who can help. Social media will change the nature of warfare just as surely as the telegraph, the radio and the telephone did, and the Pentagon is fearful of being caught short. As social media play increasingly large roles in fomenting unrest in countries like Egypt and Iran, the military wants systems to be able to detect and track the spread of ideas both quickly and on a broad scale. The Defense Advanced Research Projects Agency is soliciting innovative proposals to help build what would be, at its most basic level, an Internet meme tracker.
benton.org/node/85037 | New York Times
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CYBERATTACKS REPORT
[SOURCE: Financial Times, AUTHOR: Joseph Menn]
A cyber-espionage operation lasting many years penetrated 72 government and other organizations, most of them in the US, and has copied everything from military secrets to industrial designs, according to technology security company McAfee. In a report released on the eve of a major conference on hacking, McAfee said that it had obtained access to a computer that controlled the operation and documented a pattern of attacks dating back at least as far as 2006. McAfee did not name most of the targets but said they included six US government agencies and 13 defence contractors. It said some classified military secrets had been stolen and that logs showed that the UN, the International Olympic Committee, Olympic committees of several countries and a large US-based news organization were among the victims. Dmitri Alperovich, McAfee vice-president, said the nature of many of the targets strongly suggested backing by a national government, since there would be no obvious economic benefit for crime groups. People briefed on McAfee’s research said the most logical suspect was China, which was not among the Asian countries that were home to any of the victim institutions. Two South Korean companies and a government agency, as well as companies in Taiwan and Vietnam, were compromised.
benton.org/node/85111 | Financial Times | LATimes
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RETAIL

AMAZON AND SALES TAX
[SOURCE: Wall Street Journal, AUTHOR: Stu Woo]
Amazon hasn't charged sales tax in most states since its founding in 1994. And it has taken some extreme measures to keep it that way. Among them: Staff traveling around the U.S. have been required to first consult a company map that shades each state red, yellow or green, said three people who have worked for the retailer. These people said they needed permission from managers or company lawyers before entering "red" states because a worker's actions might trigger laws that force Amazon to collect taxes in those states. Such steps to avoid local levies allow Amazon to undercut in-state retailers by the amount they must add in sales tax, which can exceed 8%. A close examination of Amazon's corporate practices, based on interviews with more than a dozen former employees and people who have done business with the Seattle company, as well as a review of corporate documents, indicates that the company believes its sales-tax policy is critical to its performance.
benton.org/node/85115 | Wall Street Journal
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MALL OWNERS EMPLOY TECH
[SOURCE: Bloomberg, AUTHOR: Tim Barwell, Simon Packard]
The world’s largest mall owners are harnessing digital technology to stem an erosion in their tenant base by online retailing and to keep shoppers coming to their centers.
London-based Hammerson Plc plans to use software that tracks visitors to its malls using the signal from their mobile phones. Australia’s Westfield Group Ltd. has set up a virtual mall and landlords Simon Property Group of Indianapolis and Paris-based Unibail-Rodamco SE, are encouraging shoppers to add new and more sophisticated smartphone applications. “The big beasts of the jungle are showing that they are alive, ready and willing to embrace these trends,” said Joshua Bamfield, director of Newark, England-based Centre for Retail Research. For some town-center shopping streets and smaller retail centers, “it’s another nail in the coffin.” Online shopping is helping retailers reach their customers with fewer stores, making them pickier about the amount of space they lease and where shops are located. Mall landlords, seeking to grow rental income and raise property values, are using technology to attract more visitors and track the habits and movements of shoppers to better meet the needs of their increasingly selective tenants.
benton.org/node/85112 | Bloomberg
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POLICYMAKERS

GOOGLE HIRES FTC EXPERT
[SOURCE: Bloomberg, AUTHOR: Sara Forden, Jeff Bliss]
Google , under investigation by the Federal Trade Commission for its dominance of Internet searches, said it hired Suzanne Michel, one of the commission’s top intellectual property officials. Michel, 49, is leaving her post as deputy director of policy planning at the FTC, where she worked for more than 11 years on patent antitrust issues and patent policy. She will join the company’s legal team. Michel was the chief writer of a patent report the FTC issued in March, which analyzed the evolution of the patent system in the U.S. and made recommendations on how to improve patent law to promote innovation. The report also made suggestions to the courts on how to make patent remedies more effective.
benton.org/node/85110 | Bloomberg
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NEWS FROM ABROAD

TELSTRA PLAN
[SOURCE: Sydney Morning Herald, AUTHOR: Lucy Battersby]
Telstra has revealed how it plans to shut down the copper telephone network by 2018, in a document submitted to the competition watchdog. It is also proposing new regulations for the copper network under which Telstra would report internal pricing for the first time, and prevent staff in network and wholesale divisions working with Telstra's retail unit. The structural separation undertaking and migration plan, submitted on Friday and released yesterday, are part of the government's broadband policy and will transform Australia's telecommunications industry. They must be approved by the Australian Competition and Consumer Commission before Telstra can finalize its deal with NBN Co - worth at least $11 billion to the company.
benton.org/node/85031 | Sydney Morning Herald
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