August 2011

Lawsuit says Microsoft tracks customers without consent

Microsoft allegedly tracks the location of its mobile customers even after users request that tracking software be turned off, according to a new lawsuit.

The proposed class action, filed in a Seattle federal court, says Microsoft intentionally designed camera software on the Windows Phone 7 operating system to ignore customer requests that they not be tracked. The lawsuit against Microsoft cites a letter the company sent to Congress, in which Microsoft said it only collects geolocation data with the express consent of the user. "Microsoft's representations to Congress were false," the lawsuit says. The litigation, brought on behalf of a Windows Phone 7 user, claims Microsoft transmits data -- including approximate latitude and longitude coordinates of the user's device -- while the camera application is activated. It seeks an injunction and punitive damages, among other remedies.

The case in U.S. District Court, Western District of Washington is Rebecca Cousineau, individually on her own behalf and on behalf of all others similarly situated v. Microsoft Corp., 11-cv-1438.

FCC Still Looking for Open Internet Advisory Committee Nominees

On June 30, 2011, the Federal Communications Commission issued a public notice seeking nominations for membership on the Open Internet Advisory Committee (OIAC), which is discussed in the Commission’s Order on Preserving the Open Internet (Order). The original deadline for nominations was September 1, 2011. The FCC has extended the deadline to submit nominations through October 1, 2011.

Media Institute: Google is Monopoly FTC Should Rein In

The Media Institute has told the Federal Trade Commission that the government needs to step in to remedy the "threat" to competitors in the digital space posed by Google's unrivaled dominance in the search and advertising marketplace.

That came in a White Paper submitted by the institute as the FTC vets Google's search and ad businesses. The Institute is an independent First Amendment think tank supported by major media companies and more frequently associated with arguing against government entry into the media space. It points out in the paper that all those media need to compete in a digital space where Google is its major competitor for advertising.

Report Urges Congress To Act On Public Safety Network

A report detailing the unfinished recommendations from the commission that investigated the Sept. 11, 2001 terrorist attacks called on Congress to act swiftly to finally build a national broadband public safety network aimed at improving communications for emergency first responders.

In a report card on the steps the United States has taken to respond to those attacks, the Bipartisan Policy Center listed the failure to address the communications problems among the nine items that remain unfinished 10 years after the 2001 terrorist attacks. "The inability of first responders to communicate with each other on demand was a critical failure on 9/11," reads the report, crafted with help from the co-chairmen of the federal commission that investigated the Sept. 11, 2001 attacks, former-Gov Tom Kean (R-NJ) and former Rep-Lee Hamilton (D-IN). "Incompatible and inadequate communications led to needless loss of life. To remedy this failure, the commission recommended legislation to provide for the expedited and increased assignment of radio spectrum for public safety purposes. To date, this recommendation continues to languish." It said the biggest obstacle at this point is a political battle in Congress over whether to give spectrum known as the D-block to public safety officials or stick with current law, which requires that the D-block be auctioned off to commercial bidders.

Universal Service reform: What it means for schools

With broadband service becoming an increasingly essential tool for participating in modern life, federal policy makers are pursuing regulatory reforms that will fundamentally refocus the government’s “Universal Service” programs and related regulations to spur more broadband deployment and adoption -- a marked departure from the historical primacy of circuit switched voice services.

These reforms promise to give community anchor institutions, including schools and libraries, access to a wider variety of affordable broadband service than ever before. The changes also promise to expand the range of broadband services eligible for support under the federal Schools and Libraries Universal Service Support Mechanism. At the same time, broadband service providers and their customers -- including schools -- will face new compliance challenges as the web of federal programs supporting broadband infrastructure grows larger and more intertwined.

GAO reviews Americans' interest-level in cyber jobs

Federal auditors are conducting a human capital study to gauge the draw, or lack thereof, of cybersecurity careers, Government Accountability Office researchers said. Government and industry officials, as well as employment postings and university degree programs, regularly tantalize job seekers with estimates that the country needs about 30,000 information security professionals, but GAO officials said they do not yet know if there is enough interest among the U.S. population to fill the ranks.

"We know that a lot of people in the area are concerned that there aren't enough [people] between industry and all of the civilian agencies," Davi D'Agostino, GAO director for defense capabilities and management, said. A report "should be coming out soon" that will examine the cyber staffing challenges confronting government agencies, she said.

Should Minnesota bond for broadband?

If Minnesota wants to move up in the state rankings for broadband access and speeds, it will need more fiber optic cable in the ground. And one way to encourage that without direct infusion of state money is to allow broadband projects to be included in state bonding requests, even if they ultimately are owned by private companies.

If the AT&T deal fails, what’s next for T-Mobile?

AT&T’s $39 billion bid for T-Mobile USA isn't over with the Department of Justice’s decision to file suit against the merger. But it raises a lot of new uncertainty around the deal and the possibility that it might not go through at all.

So what happens to T-Mo if AT&T’s can't buy it? Here are some thoughts on possible outcomes: 1) T-Mobile could go it alone -- with the $3 billion break-up free and spectrum promised by AT&T, 2) Sprint could make a play for T-Mobile, but the DoJ suit suggests that Sprint may face similar opposition if it tries to go after T-Mobile but even a combined Sprint/T-Mobile wouldn't rise to the level of a No. 2 carrier, 3) T-Mobile could end up being an appealing pick-up for one or more cable companies, 4) A private equity firm could look at taking on T-Mobile, and 5) Deutsche Telekom could sell off T-Mobile in parts.

DoJ Says "No Ma Cell"; What Happens Next?

[Commentary] In a court fight with AT&T, the odds are in the Department of Justice's favor -- which is why so many companies simply abandon the merger once DoJ has filed to block an acquisition.

If AT&T fights, the Federal Communications Commission is not off the hook with its review of the deal. It needs to make a decision. The most obvious (and most likely) thing for the FCC to do is follow the general shape of DoJ's antitrust complaint and refer for a hearing. Remember, even if AT&T ultimately wins on pure antitrust, the same concerns may make the matter contrary to the public interest under the higher public interest standard. So it seems fairly straightforward that a DoJ complaint = issue of material fact that an administrative law judge (ALJ) would need to consider, and the if AT&T wins on the Antitrust side that is a factor to consider by the ALJ. But this case is unusual because it actually gives rise to the concern that the proposed merger violates Section 314 of the Communications Act. So the FCC has a rare option here. It can decide that the merger is ungrantable as a matter of law and dismiss the Applications. At that point, AT&T can appeal to the D.C. Circuit, a process which will take at least a year, possibly more, and where the agency gets lots of deference for its decision. And, even if AT&T wins its appeal, it gets the right to a hearing on the issue of material fact (does this violate Section 314). My bet is AT&T gives up at that point, or T-Mobile walks away and collects its $6 Billion in spectrum and cash.

Bottom line is that there are really no good options for AT&T at this point. To come back for a victory, AT&T must (a) convince FCC to hold off; while, (b) convincing the court to go ahead despite the FCC being on hold. And then it has to win the case -- which the odds do not favor. At some point, T-Mobile is going to exercise its option and walk. It has $6 billion in cash and spectrum, which will make it a heck of a lot more competitive (or more attractive to a potential buyer). AT&T can delay the inevitable by fighting. But while AT&T still has a theoretical road to victory, I don't think anyone seriously wants to take that bet.

What The Justice Department’s Slapdown Of AT&T Really Means

Why did the government sue? Shortly after the merger was announced, the government said it would investigate the deal. Typically, this leads to negotiations in which the company offers to take steps to ensure the deal will not be anti-competitive. The fact the government is now going to court means negotiation have broken down.

Benton

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