April 2011

Carriers spar over FCC’s plans for USF

On April 27, the Federal Communications Commission held a workshop on Universal Service Fund and intercarrier compensation (ICC) reform. The FCC’s goal is to expand broadband to unserved areas by asking private telecom companies to bid on particularly hard-to-reach areas of the country. But there is disagreement among wireless carriers about the best way to go about doing that.

While large companies like Verizon agree with the competitive bidding idea, smaller carriers say an auction would undermine other efforts to reach unserved areas. In addition to defining broadband as a universal service, the Consumer Federation of America's Mark Cooper says the FCC should also define 4G wireless as a universal service. “Mobility will help the adoption problem,” Cooper said. To expand broadband to hard-to-reach areas, he said the FCC should think about adopting a model similar to electricity co-ops. “We serve a huge swath of the country with nonprofits – and there’s nothing wrong with that,” he said. “The unserved broadband problem is nothing compared to the New Deal problem of getting electricity to people.” Cox Communications’ Jose Jimenez told the FCC to keep its expectations reasonable for building out to unserved areas. “We are not going to be able to get broadband to everyone at the same time. That is just not feasible,” he said during the USF reform workshop. “We are going to get there eventually. This is an iterative process. To think you’re going to do it at once is not reasonable.”

Sparks fly at FCC Universal Service reform workshop

A workshop conducted by the Federal Communications Commission about Universal Service Fund (USF) reform brought together a wide range of stakeholders to discuss the Commission’s proposals about transitioning today’s voice-focused USF to one focused on broadband. It’s a controversial topic -- particularly when it comes to proposals such as using a reverse auction to award funding for unserved areas to the provider of a single technology, which could be wireline, wireless or even satellite. Not surprisingly, several participants took the opportunity to dish up some provocative commentary.

Wireless carriers: Apps are privacy threat

The nation’s top wireless carriers have a message for Congress: Smarthphone apps — not the carriers themselves — pose the greatest threat to people’s privacy.

That’s the common thread running between a series of letters this month from AT&T, Verizon, Sprint and T-Mobile to Reps. Ed Markey (D-MA) and Joe Barton (R-TX). The two members in March asked those top companies to detail how and why they track mobile phone location data. But the carriers pointed to app makers as the leading cause for concern. AT&T noted it “plays no role” in what kind of information smartphone apps collect, while T-Mobile pointed out the ways in which that data can be used. Sprint lamented “consumers no longer can look to their trusted carrier with whom they have a trusted relationship to answer all of their questions,” particularly on privacy. And Verizon Wireless called out smartphone app makers directly on the issue, stressing “location-based applications and services (whether provided by us or third parties such as Google) should give customers clear and transparent notice” and control. The carriers acknowledged in their responses that they also track consumers’ location — albeit to provide the best cell reception and data services, while maintaining the records required by federal law.

Rep Barton has a feeling of "uneasiness and uncertainty" about third-party use of location data and Rep Markey is pushing for more consumer control. "This is a huge problem," said Rep Barton of third-party use of the info. "They shouldn't have free reign over your location data and personally identifiable information," he said, pledging to work on legislation to hold third-party developers accountable. Rep Markey said consumer privacy protections must apply "across the entire wireless ecosystem - from wireless carriers, to mobile handset makers, to application developers."

Wrapping Up the Apple Location Brouhaha

Apple is saying that the researchers were wrong. First, the “secret file” contains information about nearby Wi-Fi hot spots and cell towers, not your exact location. And second, your device is sending information to Apple, although in an anonymous, encrypted form. Now, one part of Apple’s response is a little unconvincing. Yeah, OK, the file includes the location of Wi-Fi hot spots and cell towers — near you. So no, it doesn't record what park bench you were sitting on. But it’s still tracking what city you were in, and is therefore keeping a record of your travels.

Anyway, the whole thing is moot now. In a software update in the next couple of weeks, Apple will (a) stop backing up the location database to your computer, (b) store only a week’s worth of hot spot locations and (c) stop collecting hot spot locations if you turn off Location Services. In the next iOS update, furthermore, the location list will also be encrypted on the phone itself. Interestingly, Apple also performed a pre-emptive strike. It revealed something else your iPhone is tracking: traffic data. This is the second time Apple has found itself neck-deep in a PR brouhaha where it blamed the problem on a bug. Both times, Apple wasn't apologetic, but at least it took prompt action through a software update. In this case, at least, security consultants seem satisfied. Apparently, the Locationgate case is now closed.

Google Sued For Android Location-Tracking

Google has been hit with a potential class-action lawsuit stemming from reports last week that the company's Android operating system tracks the location of cell phone users.

"If Google wanted to track the whereabouts of each of its products' users, it should have obtained specific, particularized informed consent," Michigan residents and Julie Brown and Kayla Molaski allege in their complaint. The lawsuit was filed in the U.S. District Court for the Southern District of Michigan. The case marks the first legal action against Google relating to location-tracking. Apple is also facing at least two similar lawsuits. The litigation stems from revelations by security researchers that smartphones and other devices collect extensive data about their owners' whereabouts. iPhones and iPads store that information on a "consolidated.db" file contained in the devices. Androids also reportedly store location data in unencrypted files on devices. In addition, Androids reportedly send the information back to Google.

Senate Hearing on Mobile Consumer Protection and Privacy

Senate Commerce Committee Chairman John D. (Jay) Rockefeller IV announced the Senate Commerce Committee will hold a hearing on consumer protection and privacy in the mobile marketplace in May:

“Modern technology has connected people around the world and led to great innovations, helpful products and new experiences,” Chairman Rockefeller said. “But with new portable technologies consumers are encountering a mobile marketplace that collects and uses a wide range of personal information—often with inadequate or untimely disclosure. Reports of mobile devices tracking the location of users is just the latest in a string of concerns raised in the mobile marketplace. This committee has investigated this in the past, and it is appropriate to review it again. That is why I intend to hold a hearing on this issue next month. Consumers deserve to know exactly what information is being collected about them, how it is being used, and should be able to say no to undesired collection of information. Concentration in the mobile platform market raises further concerns about whether or not competition will drive pro-consumer practices."

Smartphones make up majority of cellphone sales for first time in last quarter

For the first time, more smartphones were sold than any other type of mobile phone last quarter, according to the NPD Group research firm. Sales of smartphones rose 8% during the first three months of 2011when compared with the same period in 2010, the NPD Group said. Smartphones accounted for 54% of total cellphone sales for the period.

Study: Social media has little impact on online retail purchases

A new study says social media has almost no influence on online purchasing behavior. The report, a collaboration between Forrester Research and GSI Commerce, analyzed data captured from online retailers between November 12 and December 20, 2010. The research shows that social media rarely leads directly to purchases online — data indicates that less than 2% of orders were the result of shoppers coming from a social network. The report found email and search advertising were much more effective vehicles for turning browsers into buyers.

FCC: We must not study spectrum issue 'to death'

Responding to a paper sponsored by the National Association of Broadcasters on spectrum use, a Federal Communications Commission (FCC) spokesperson said, "We simply can't afford to study this to death while the rest of the world passes us by." He pointed to soaring levels of data usage as well as the level of tablet sales to argue that the airwaves are under strain.

Senate Commerce Committee Hearing To Include Incentive Auction Bill

A May 3 Senate Commerce Committee hearing will focus on federal investments in natural disaster preparedness and the government's plans for response. Committee Chairman Jay Rockefeller (D-WV) also signaled it would involve his Public Safety Spectrum and Wireless Innovation Act which would authorize incentive auctions as a way to help pay for a national, interoperable broadband emergency communications network Rockefeller has been pushing for some time now. His and other legislators have been pushing for passage of an emergency communications bill before the tenth anniversary of 9/11.

Benton

Search