September 2008

US intelligence agencies are unable to share information about foreign cyber attacks against companies for fear of jeopardizing intelligence-gathering sources and methods, cyber security expert Paul B. Kurtz told lawmakers. Kurtz, who served on the National Security Council in the Clinton and Bush administrations, spoke at the first open hearing on cyber security held by the House Permanent Select Committee on Intelligence. He and other experts discussed President Bush's Comprehensive National Cybersecurity Initiative, disclosed in January, which focuses on cyber espionage against government systems and, they said, does not adequately address the private sector. There is no coordinated strategy or mechanism for sharing intelligence about intrusions with companies, nor is there a systematic way for companies to share information with the government, said the panelists, who are members of the Center for Strategic and International Studies commission on cyber security, set up last year to advise the next administration. While certain information must remain classified, "the government needs to do better" at sharing unclassified information about cyber attacks, said Rep. Silvestre Reyes (D-TX), who chairs the intelligence committee. "Everyone stands to benefit from an improved two-way information flow."

In a letter to Congress, acting National Telecommunications and Information Administration chief Meredith Attwell Baker says the administration's digital-TV-to-analog converter-box-coupon program could well run out of funds to process those coupons by the end of January unless Congress frees up more money. That would be 17 days short of the DTV-transition date and almost seven weeks short of the March 31 end date for applying for the coupons. That shortfall could be a problem if there is an anticipated spike of coupon requests from procrastinators as the Feb. 17, 2009, date nears. "NTIA has placed orders with IBM to distribute up to 44.5 million coupons," Baker said in the letter. "Assuming steady demand and an increase for the months of November, December and January, as well as a redemption rate consistent with that realized to date [49%], NTIA estimates that the coupon program will be able to honor requests for 44.5 million coupons through the end of January 2009 within existing administrative funds." She added the caveat that there may be cost savings of up to $6 million that could add several weeks to that end-of-January date.

The cost of basic local telephone service may increase as much as 30% next year and an additional 23% in 2010 for land-line service, under new rates approved Thursday by California regulators. The Public Utilities Commission voted Thursday to approve increases of as much as $3.25 a month beginning in January 2009 for the four major phone companies, including AT&T Inc. and Verizon Communications Inc., that offer land-line service. Another $3.25-a-month increase can go into effect a year later. The PUC has deregulated most aspects of California phone services and was expected to deregulate it all next year. Instead, the commission opted to maintain a cap on local land-line rates for two more years. The decision was met with disappointment from the phone companies that had sought total deregulation and from consumer groups that opposed the rate increase. Consumer advocates said the decision would hurt the poor and elderly. "Phone service is as necessary to modern life as are other essentials like gas, electricity and food," said Mark Toney, executive director of the Utility Reform Network, known as TURN. "But without regulation, low-income and rural Californians could lose access." TURN failed to persuade commissioners to conduct an affordability study before allowing the rate increases.

Leading European telecoms companies should give rivals access to their superfast broadband networks, the European Commission said on Thursday. In a draft recommendation for national telecoms regulators, the Commission also highlighted the importance of ensuring that Europe's former fixed-line phone monopolies are able to secure appropriate returns on their high-speed broadband investments. Viviane Reding, European telecoms commissioner, and Neelie Kroes, competition commissioner, on Thursday expressed concern that the EU was lagging behind leading industrialized countries, such as Japan and the US, in the rollout of high speed broadband networks.