January 2012

Bono Mack says DOJ memo has muddied waters for online gambling

The Department of Justice's recent reversal on the Wire Act and interstate betting has created considerable uncertainty for the legal future of online gambling, according to House Energy and Commerce subcommittee on Manufacturing Chairwoman Mary Bono Mack (R-CA).

The Department of Justice released a ruling last month clarifying that the Wire Act’s ban on interstate transactions related to gambling applies only to sports betting, opening the door for states to offer online gaming to their citizens. Bono Mack's subcommittee held several hearings on legalizing online gaming last year and has been considering a bill from Rep Joe Barton (R-TX) that would legalize and regulate online poker at the federal level. She told reporters the most likely next step is a hearing featuring the DOJ and other law enforcement officials during a preview of the subpanel's 2012 agenda.

How To Avoid 'Bill Shock' From Smartphone Use

Americans who've been traveling abroad are all too often stunned by the size of their mobile phone bill. Even if they aren't actively using their phone, they can rack up hundreds, sometimes thousands, of dollars in charges — resulting in what consumer advocates call "bill shock." Smartphones try to connect to the Internet using Wi-Fi; it's often free, so you don't incur connection charges. But if the device doesn't pick up Wi-Fi, it will use a local cellular network. And what runs up the bill is usually data.

AT&T blasts Sprint for using roaming rules to support 'massive disinvestment' in its own network

AT&T is coming out swinging over some material changes to Sprint's network in Oklahoma and Kansas that will see it shut down some of its own coverage in favor of roaming agreements with CDMA competitors.

Specifically, AT&T cites two policy changes on the Federal Communications Commission's part that have enabled Sprint's move: first, the end of the Home Market Rule, which prevented carriers from establishing roaming agreements in markets where they owned their own spectrum; second, its decision last year to require carriers offer high-speed data roaming in addition to voice. It seems an odd thing for AT&T to get worked up over, save for a couple important things: one, the intent of the roaming rule was to allow rural carriers to compete on even ground, and two, it only stands to reason that a carrier holding spectrum should be required to exhaust it before turning to roaming agreements in a given market. As AT&T senior VP Bob Quinn says, "Sprint can now use other folks' networks rather than pony up its own investment dollars. Nice work if you can get it."

A bird’s-eye view of T-Mobile’s new spectrum trove

AT&T is in the process of handing over T-Mobile’s consolation prize, which includes a grab bag of airwaves T-Mobile will use to bulk up its 4G network.

AT&T’s official transfer application popped up on the Federal Communications Commission website, revealing for the first time the specific licenses T-Mobile would gain. For those of you who don’t want to dig through the arcane documentation, GigaOM reader and spectrum policy wonk Andrew Shepherd has prepared a map that shows exactly where T-Mobile picks up new airwaves and how much. T-Mobile didn’t get new spectrum nationwide but it certainly got some valuable licenses in key cities. What’s more, Shepherd found that AT&T had fork over all of its AWS holdings in some pretty valuable markets, including Boston; San Francisco/Oakland; Washington, D.C.; Houston; Baltimore; Atlanta; San Diego; Seattle; Kansas City, Mo.; San Jose, Calif.; San Antonio; and Salt Lake City. While those losses must sting AT&T, the operator was very careful about which markets it chose to relinquish.

Young Internet entrepreneurs embrace philanthropy

[Commentary] When Mark Zuckerberg, the 27-year-old co-founder of Facebook, announced last year that he was giving $100-million to set up a foundation to help Newark (NJ) public schools, he became one of the highest profile examples of an increasingly common type of big donor: the Internet geek gone good.

Zuckerberg follows donors like eBay’s Pierre Omidyar and Jeff Skoll and AOL’s Steve Case down what’s becoming a well-worn path for Internet entrepreneurs. Those entrepreneurs and company officials listed on this year’s Forbes ranking of the richest Americans – who represent Amazon, eBay, Facebook, Google, Salesforce.com, Yahoo, and others – account for at least $1.54-billion in gifts announced to the public over their lifetimes, according to a Chronicle tally (and that’s not including Bill Gates, who has given more than $28-billion). Zuckerberg, Omidyar, Skoll, and Facebook co-founder Dustin Moskovitz have also signed the Giving Pledge, devoting themselves to giving away a big share of their combined $29.9 billion. Many more young Internet entrepreneurs­ are giving big, setting up foundations, building charity into their companies, and serving on boards relatively early in their lives. They give to causes such as education and health care as well as projects designed to create economic opportunity and expand access to technology. And they aren’t waiting to make a difference.

A Quirky Set of Technology Predictions for 2012

The yearly technology forecasting game tends to be too earnest and too obvious. In part, that is because when the big research houses, like IDC and Gartner, prepare their lists, it is a consensus of their analysts. And why not? The strength of the large research firms is their deep benches — the breadth and depth of their industry smarts. The results, though, are works of what today is called collective intelligence and what used to be called a committee.

A bracing contrast comes from Mark R. Anderson, chief executive of the Strategic News Service, a predictive technology newsletter. His list is decidedly the idiosyncratic work of one man. If distance lends perspective, he has it; Mr. Anderson resides in Friday Harbor (WA), a town on San Juan Island, about halfway between Seattle and Vancouver.

Here are a few of Mr. Anderson’s prognostications:

  • “TV becomes the new center of gravity in the tech universe, as all other devices find their niches in the TV galaxy.” Signs of progress, he said, will include Microsoft’s deeper integration of Kinect, its voice- and gesture-controlled add-on to the Xbox, to television sets. And “smartphone TV integration software becomes a new category,” he said.
  • “Google loses technology control of Android,” Anderson said, as Asian manufacturers increasingly develop unlicensed versions of Google’s open-source operating system for smartphones and tablets.
  • “Siri stuns the world,” he said. The door will open to more Siri-style digital personal assistants. “It’s not unlikely that we’ll see duels between assistants, a la ‘Jeopardy’ for handhelds, as the media gets the idea,” he said.

Sen. Leahy urges Congress to pass national data breach legislation

Senate Judiciary Committee Chairman Patrick Leahy (D-VT) urged his colleagues to pass a national law telling companies when and how they must inform consumers their data has breached.

Chairman Leahy issued a statement in advance of Data Privacy Day on Jan 28 arguing that the need for a national data breach standard is greater than ever due to the recent string of high-profile attacks on e-commerce firms and government institutions. "Even as the Internet and other rapidly advancing technologies spur economic growth and expand opportunity, there is growing uncertainty and unease about how Americans’ sensitive personal information is collected, shared and stored," Sen Leahy said. "After a record year of high profile data breaches in the private sector and throughout government, it is more important than ever that Congress step forward and enact meaningful data privacy legislation." Chairman Leahy noted the Judiciary Committee reported his Personal Data Privacy and Security Act in September and has passed similar legislation three times. The bill would force e-commerce firms to take measures to protect consumers' data and create a single nationwide standard for breach notification.

Chairman Leahy also argued a data breach provision should be part of any comprehensive cybersecurity legislation, which the Senate is set to consider in the coming weeks.

Amazon Fire Tablet Leaves Google Apps Behind

Since Google introduced its Android operating system in 2007, the company’s strategy has been simple: Give it to developers for free and make money when consumers click ads on the Web or through apps. That model is hitting a snag.

Amazon and Chinese Internet giants Baidu and Tencent Holdings are using Android as a building block for their devices, skipping preloaded applications such as Gmail, Google Maps and YouTube that generate ad revenue for Google, as well as its app store. Amazon’s Kindle Fire tablet, which is gaining ground on Apple’s iPad, comes with none of those apps. Mobile advertising is one of Google’s fastest-growing markets, with industrywide revenue projected to rise to $20.6 billion in 2015 from $3.3 billion in 2010, according to Gartner. With online traffic increasingly coming through apps instead of mobile browsers, Google’s push to wring mobile-ad revenue from Android could be impeded if more device makers emulate and succeed with Amazon’s scaled-back approach.

Big Week in Washington for Online Privacy Issues

This week, which leads up to Data Privacy Day on Jan 28, could be a big one for advancing online privacy policy in Washington (DC) and globally.

In keeping with the push to protect consumers' personal data and privacy online, the Obama administration is expected to release its white paper on privacy, endorsing a "privacy bill of rights" and calling on companies to self-regulate by adopting codes of conduct. On the other side of the pond, the European Commission on Jan 25 will propose big changes to its 17-year-old European privacy policy directive, adopting regulation that by 2014 could require companies like Google and Facebook to obtain explicit consent from consumers before collecting and using their personal data. Both events will cause companies to re-examine privacy policies and "look around the corner to anticipate future privacy policy," said Christopher Wolf, a partner with Hogan Lovells and the co-chair of the Future of Privacy Forum.

FCC’s Jan 31 Meeting Agenda Released – Tees-Up Lifeline Reform

The Federal Communications Commission confirmed just the one item on the Jan 31 Open Meeting agenda. The FCC will consider a Report and Order and Further Notice of Proposed Rulemaking to comprehensively reform the Lifeline program to ensure universal availability of communications services to low-income Americans while minimizing the universal service contribution burden, including by eliminating waste, fraud, and abuse; strengthening program oversight and administration; and modernizing Lifeline to support broadband adoption.