November 2011

DARPA appeals to hackers for cybersecurity help

The United States is facing a dire situation, according to former presidential counterrorism adviser Richard Clarke. The solution? The Defense Advanced Research Projects Agency (DARPA) is reaching out to hackers for help.

DARPA spokesman Eric Mazzacone told Wired that the agency is looking to recruit “visionary hackers” to the agency to help it explore “more and better options” to protect the country against threats. DARPA has already turned to respected hacker Peiter Zatko, aka “Mudge,” as a program manager for its Strategic Technologies Office, but is clearly looking to get more insider expertise on the world of cybersecurity. In a blog post, Sophos’s Lisa Vaas said that it’s about time that the government moved to hire more security talent. “At risk are both trade and technology secrets as well as crucial infrastructure,” she wrote in her own plea to white hats. “SOS. We need you.”

US charges 7 in Internet advertising fraud case

A crew of Internet bandits devised an international scheme to hijack more than 4 million computers worldwide, manipulating traffic on Netflix, the Internal Revenue Service and other popular websites to generate at least $14 million in fraudulent advertising revenue, federal prosecutors said.

About 500,000 computers in the United States were infected with malware, including those owned by ordinary users, educational institutions, nonprofit groups and government agencies like NASA, U.S. Attorney Preet Bharara said. Bharara called the case "the first of its kind" because the suspects set up their own "rogue servers" to secretly reroute Internet traffic to sites where they had a cut of the advertising revenue. Six of the seven people named in the indictment were Estonians who were in custody in that country, and extradition was being sought, prosecutors said. A Russian remained at large. As part of the takedown, the FBI disabled the rogue servers without interrupting Internet service, authorities said.

Public Wi-Fi hotspots to grow 4-fold by 2015: study

The amount of public Internet hotspots (Wi-Fi) globally will grow more than fourfold to 5.8 million by 2015, boosted by consumers increasing demand for connections on smartphones and tablets. Telecom operators see Internet hotspots crucial for offloading wireless data traffic, which is expected to grow 26-fold in the next five years, according to Cisco, as usage of video on mobile devices surges. The study by research firm Informa was commissioned by telecom industry lobby The Wireless Broadband Alliance (WBA). "The findings show we are about to enter the golden age of public Wi-Fi with hotspot deployments set to soar," WBA Chairman Chris Bruce.

FCC Gets Recommendations from Consumer Advisory Committee

On November 4, the Federal Communications Commission’s Consumer Advisory Committee adopted recommendations regarding Lifeline/Link Up reform, public broadcasting funding, and the November 9 test of the Emergency Alert System.

Concerning Lifeline and Link-Up programs, CAC said that that if the FCC wants to reach all intended participants of these programs, any “one per household” rule, if adopted, must legitimately encompass consumers that may be living in group homes or who are homeless. CAC recommends that the FCC not limit but rather expand eligibility and improve service for the low-income community.

The CAC recommended that the FCC, in its interaction with the Administration and with the Congress, support continued federal funding of the Corporation for Public Broadcasting so as to enable CPB to continue its support for public broadcast stations, including those providing service to rural, tribal, native, and disability communities.

On the EAS test, the CAC recommended that in addition to assessing the reliability and effectiveness of the public alerting mechanisms of EAS, the FCC and the Federal Emergency Management Agency specifically examine (1) the effectiveness of its outreach efforts to the public (including outreach targeted to persons with hearing, vision, and dual sensory loss disabilities); and (2) the accessibility of information available to consumers (including persons with hearing disabilities) during the National EAS test. The CAC further recommended that FEMA, the FCC, and other EAS partners specifically conduct targeted outreach to, and design future EAS tests and information, to meet the needs of consumers with hearing, vision, and dual sensory loss disabilities.

Big ISPs dwell in tax-break heaven, according to corporate tax study

A scathing new report on corporate tax breaks is out, and telcos and media companies figure prominently. Authored by Citizens for Tax Justice and the Institute on Taxation and Economic Policy, the survey focuses on 280 corporations that it concludes paid, on average, far less than the 35 percent corporate income tax tithe.

"Over the three years covered by our study, the average effective tax rate for all 280 companies was only 18.5 percent," charges Corporate Taxpayers & Corporate Tax Dodgers, 2008-2010. "For the past two years, 2009 and 2010, the effective tax rate for all 280 companies averaged only 17.3 percent, less than half of the statutory 35 percent rate." AT&T, Comcast, and Verizon Communications appear in the study. The last company places number 19 in the survey's list titled "30 Corporations Paying No Total Income Tax in 2008-2010."

Campaign News Draws More Coverage than Interest

Public interest in the presidential campaign showed no increase this week, despite the news media’s increasing coverage of sexual harassment allegations against Herman Cain.

About one-in-five Americans (22%) say they followed news about the 2012 candidates very closely, little changed from a week earlier (21%), according to the latest weekly News Interest Index survey, conducted Nov. 3-6 among 1,005 adults by the Pew Research Center for the People & the Press. Still, the Cain allegations registered widely with the public: 75% say they heard a lot (51%) or a little (24%) about the accusations that Cain sexually harassed several women in the late 1990s when he served as president of the National Restaurant Association. In terms of the week’s top stories, as many followed news about the economy most closely (14%) as followed campaign news most closely (16%). Another 12% cite news about the freak snowstorm that hit the East Coast as their top story. Meanwhile, coverage of the campaign accounted for 29% of all news coverage, up from only 18% a week earlier, according to a content analysis by the Pew Research Center’s Project for Excellence in Journalism (PEJ). About two-thirds of campaign coverage dealt with the controversy surrounding Cain and its potential impact on the race (20% of all coverage).

About 27% of Pay-TV Customers Also Subscribe To Netflix: Study

More than a quarter of all U.S. subscribers to cable, satellite or telco TV services (27%) also are Netflix members, representing an incremental "cord throttling" threat to traditional providers from over-the-top video, according to a study by research firm NPD Group.

Almost half of pay-TV subscribers -- 46% -- also pay extra for premium movie channels or sports tiers, and 24% watched movies via both paid and free video-on-demand from their providers. On VOD usage, Comcast leads the industry with 41% of subscribers using video-on-demand, followed by Verizon's FiOS TV at 38% and Time Warner Cable at 20%. At the same time, those customers are also increasingly watching TV programming and movies from other sources, including Netflix, Hulu and YouTube, according to NPD senior vice president and entertainment analyst Russ Crupnick. Overall, 10% of pay-TV subscribers streamed movies for free, and the same percentage streamed TV programs for free, with the networks themselves the most popular sources for free online TV viewing.

How to teach young children in the digital age

As research suggests more than half of children ages 5-8 have used a mobile device such as a smart phone, iPod touch, or iPad, a new report offers recommendations for how policy makers and education leaders can take a more robust and modern approach to helping young students learn and develop in the digital age.

“Take a Giant Step,” from the Digital Age Teacher Preparation Council, finds that the integration of innovative, research-based training models for early childhood educators is a key element missing in the design of high-quality early learning programs. In light of recent reports—such as Common Sense Media’s “Zero to Eight: Children’s Media Use in America“—revealing that today’s children consume up to 7 hours of media daily, some organizations, including the National Association for the Education of Young Children, are updating their professional practices to guide learning and development for today’s digital-age children. “Take a Giant Step” says policy makers can learn from these efforts, and it calls on teacher preparation programs to integrate into their curricula more research on how young children learn. It also recommends that early learning programs take more advantage of free digital assets created by public media (such as PBS) to reach a new generation of digital-savvy learners.

TV Stations, Local Advertisers Brace For 2012 Political Ad Season

Too much of a good thing? TV stations will be getting a whiff of this next year when it comes to a really big kick up of TV political ad revenues -- estimated to net north of $3.2 billion.

The rub of these big election years always hits regular, nontraditional political advertisers like a black-eye. That's because political advertising -- by FCC mandate -- not only gives marketers the "lowest unit charge," it allows political spots to pre-empt a TV station's more regular, nontraditional political media. Regular TV advertisers can be left in the lurch -- not too good for any media planning strategy. Some ad agencies are looking to get around this by building packages around additions of "sponsorships," "brand mentions" and buys on a station's Internet business. The belief -- from those media agencies -- is that these added pieces of a TV buy will help lessen the blow TV advertisers might take in 2012.

FTC Head Ties Self In Knots At Ad:Tech

Federal Trade Commission Chairman Jon Leibowitz nearly tied himself in knots at Ad:Tech NY, explaining to attendees that the FTC does not want to crash the cyber party, nor get in the way of the industry’s own efforts to self-regulate around digital privacy and data mining.

Chairman Leibowitz talked about how the FTC noted that, from 1999 to 2008, Internet advertising has grown at a 40% compounded rate to something like a $23 billion business. "The ads you create are picking up the tab for free content; it's high-tech, targeted marketing relying on analysis." So where does the FTC partake of this? He says the commission jumps into the intersection of advertising, technology and media, "not to create a stoplight, but to enforce consumer-protection laws so marketers can continue to make a profit…we are an enforcement agency, not a regulator." So what's the problem with the current state of consumer privacy and data collection? In the broadest terms, Chairman Leibowitz argues that people need to have an easily executed and obviously recognizable means of opting out. He said that people have already agreed, tacitly, to give up the right to be left alone and, in return, get personalized ads and open invitations to the "cyber party, but that they need to have control of the firewall between their computers (when it comes to cookies) and their personal information.