August 2011

Attention: The Online Ad Industry Is Now Officially Regulating Itself

August 30 is the day that online advertisers formally implement a code of conduct.

The industry hopes it will persuade Congress to leave them alone -- and convince Internet users there is nothing inherently creepy about their business. Will it work? The code, created and promoted by the Interactive Advertising Bureau, strikes the right tone by emphasizing education, transparency and consumer empowerment. It requires members -- who include heavyweights like Google, MTV and the New York Times -- to allow consumers to dictate how their data is collected and to be vigilant about ensuring that the data they collect remains safe and anonymous. For Internet users, the only noticeable change will be the increased presence of a small blue triangle and an “Ad Choices” or “About our Ads” link at the bottom of the websites they visit.

Australia condemns 'irresponsible' Wikileaks cable leak

An Australian official has described as "incredibly irresponsible" Wikileaks' release of a US cable that appears to name Australian terror suspects. The cable was among more than 130,000 confidential US cables released by the whistle-blowing group, many of which did not remove the names of sources. Such information has previously been redacted in Wikileaks releases. The group has denied that any sources were exposed or that there were any mistakes in the data release.

New Zealand government approves Telecom's asset allocation plan

The New Zealand government has approved Telecom New Zealand's plan to split its assets after structural separation.

The company's asset allocation plan identifies how assets and liabilities will be split during Telecom's proposed demerger and the key terms of all intended material sharing arrangements. Under the plan, New Chorus will get the fibre and copper networks, and OSS/BSS systems for managing wholesale customers.

Australia regulator may delay Telstra separation plan

Australia's competition regulator voiced objections to the terms of the proposed split of dominant phone company Telstra Corp, threatening to delay an historic reform designed to wire up the entire nation to high-speed broadband.

The news knocked Telstra shares down 2.6 percent at A$2.99, after touching a low of A$2.92, down 4.9 percent. Telstra recently hammered out an agreement to hand over its fixed-line telecoms infrastructure, including cable ducts, to a state-run company for use in the government's $38 billion project to build a high-speed national broadband network. But the Australian Competition and Consumer Commission (ACCC) said Telstra's separation plan could not go ahead in its current form and called for important changes. Analysts said the watchdog's concerns would probably only mean a bump in the road to getting the deal done.

Samsung bruised by twin court rulings

Samsung Electronics should have been relieved in a week when Steve Jobs stepped down as chief executive of its rival Apple. Instead, this week has bruised the world’s biggest technology company by sales. A court in Germany edged towards upholding a ruling that Samsung’s tablets, which rival the iPad, could not be sold in Germany. A detailed ruling on whether Samsung has stolen Apple’s design is due on September 9. Separately, a court in the Netherlands barred Samsung from selling three smartphones that rival the iPhone for infringing Apple patents.

Facebook voting comes to UK’s ‘Big Brother’

Viewers of Big Brother who wish to expel irritating housemates from the fly-on-the-wall documentary will soon be able to do so by placing their votes on Facebook, in the latest sign of how live television is being complemented by social media.

Producer Endemol is using Facebook’s Credits system of micropayments, from which the social network takes a 30 per cent commission, alongside traditional phone and text-message voting. For Facebook, the deal will provide a welcome boost to its virtual currency as it moves away from buying in-game “virtual items”, such as tractors in Zynga’s Farmville, towards other digital goods. The BBC has started selling episodes of programmes such as Top Gear and Doctor Who through Facebook Credits, for watching on the site, alongside similar experiments from film studios such as Warner Bros and Miramax. Endemol said that voting through Facebook is expected to come to this series of Big Brother on Channel 5 in the UK but the final details, such as pricing, have not yet been confirmed.

Baidu criticized for fraudulent keyword advertising

China's Baidu is facing criticism after a state-run television network ran reports alleging that the company fails to stop scammers from abusing its keyword advertising platform to promote fraudulent websites.

The news reports, however, may just be the latest sign Chinese authorities want to better regulate the search company given its near monopoly over the country's market, according to analysts. The reports, which ran on China Central Television (CCTV) on Monday, showed an undercover journalist applying for and succeeding to advertise two fake companies on Baidu's search results. At no point, did Baidu take measures to verify if the companies actually existed, according to the report. Cases were also shown of how Baidu's keyword advertising can allegedly allow scammers to drive users to their fake sites.

Top Chinese official warns Sina's Twitter-like service

A top Chinese communist party official has urged the country's Internet companies to firmly put an end to the spread of fake and harmful information, a statement that appears to be a warning to one of China's most popular Twitter-like websites.

Liu Qi, a member of China's politburo and party secretary of Beijing, made the comment on Tuesday as he visited the Chinese Internet firm Sina, according to state media reports. Liu praised the company for its achievements with Sina Weibo, a Twitter-like microblogging platform with 200 million registered users. But he also urged China's Internet firms to improve the management and application of new technology, while working to stamp out harmful information over the Web. He also called on China's microblog users to be responsible and counter the spread of fake information.

Three UK Offers Free Mobile Broadband to Rural Villages

Mobile network, Hutchison 3G UK (Three) and the rural affairs lobbying group, the Countryside Alliance, have jointly launched a project aimed at getting people online in rural areas of poor or non-existent broadband.

Called the Rural Broadband Working Group, the initiative will see the operator work with local politicians and the Countryside Alliance to identify rural broadband 'not-spots' and give away around 4m MBs of free connectivity, alongside the dongles and MiFi's needed to get people online. The first wave of activity will see the group working with local political influencers to identify eleven rural communities, and to provide free mobile broadband data and devices for a year. In addition, free public access will be provided in communal areas such as pubs and community centers using a MiFi device.

Italian Networks Bid $3.3 Billion for 4G Licenses

The Italian government says that it has received preliminary bids worth a total of EUR2.3 billion (US$3.3 billion) for LTE radio spectrum. An auction is due to start August 31 when the bidders will be required to increase their bids in 3% increments. The Italian Industry Ministry said that it had received offers from Telecom Italia, Vodafone, Wind and 3 Italia.