February 21, 2012 (And the Privacy Gaps Just Keep On Coming)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, FEBRUARY 21, 2012
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PRIVACY
The Oil of the Digital Age - analysis
Disruptions: And the Privacy Gaps Just Keep On Coming - analysis
FTC Tells Consumer Watchdog to Mind Its Own Business
Federal lawmakers question if Google violated FTC agreement
Location tracking of GSM cellphones: now easier (and cheaper) than ever [links to web]
Online Data Helping Campaigns Customize Ads
Microsoft leaves privacy hole in browser, Google uses it
Google searches for Facebook solution - analysis
WIRELESS/SPECTRUM
Public Safety Broadband Network Wins in Tax Cut Deal
FCC can auction spectrum, but will broadcasters sell?
Broadcasters, Wireless Missed Joint Victory - editorial [links to web]
Coming soon to freeways: Drivers tweeting at 70 miles an hour
See also: Cars that communicate could improve safety [links to web]
New US Smartphone Growth by Age and Income - research [links to web]
Why LightSquared failed: It was science, not politics
LightSquared Defaults on $56M Payment to Spectrum Owner Inmarsat [links to web]
Sorry, America: Your wireless airwaves are full [links to web]
Over-the-Air TV Catches Second Wind, Aided by Web
Could Braille Touch app revolutionize texting?
LABOR
Apple Partner Foxconn Has ‘Tons of Issues,’ Labor Group Says
Apple supplier Foxconn raises worker pay as much as 25%
JOURNALISM
Possible Conflict Of Interest In ABC's Exclusive Access To Apple Chinese Supply Chain
CONTENT
Piracy reduces foreign box office receipts 7%, study says
After SOPA defeat, how can we move the piracy debate forward? - analysis
STORIES FROM ABROAD/INTERNATIONAL
The United Nations Threat to Internet Freedom - op-ed
China agrees to allow U.S. film studios more access, profit
Copyright Cheats Face the Music in France
Internet again disrupted in Iran ahead of election
INTERNET/BROADBAND
The United Nations Threat to Internet Freedom - op-ed
Media groups warn cybersecurity bill could lead to more secrecy [links to web]
Legislators aim to turn states into broadband backwaters - op-ed [links to web]
Consumers Forgoing Pay-TV For Internet Services [links to web]
TELECOM
Five fees that phone companies ring up [links to web]
MORE ONLINE
Radio Ads Are Coming Back, and the Presidential Run Will Help [links to web]
FEMA Taps Behavior Side of Social Media [links to web]
Eric Schmidt takes $1.45 billion of his Google bet off the table [links to web]
PRIVACY
THE OIL OF THE DIGITAL AGE
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
[Commentary] A Michael Rigley video called “Network” recently caught our eye. A caption describing the video reads, “Information technology has become a ubiquitous presence. By visualizing the processes that underlie our interactions with this technology we can trace what happens to the information we feed into the network.” For policy wonks like us, this generally translates into one word: privacy. For a country seemingly obsessed with reality television and tabloid journalism, the United States is suddenly very worried about privacy, wrote The Verge’s Joshua Topolsky in the Washington Post. And not celebrity privacy, but your privacy. Joshua Brustein wrote in the New York Times that Facebook’s pending initial public offering gives credence to the argument that personal data is the oil of the digital age. The company was built on a formula common to the technology industry: offer people a service, collect information about them as they use that service and use that information to sell advertising. That information – and that advertising – is becoming more and more targeted, too.
http://benton.org/node/114505
PRIVACY GAPS KEEP ON COMING
[SOURCE: New York Times, AUTHOR: Nick Bilton]
Whose fault is all of this? We can’t just point fingers at the companies that make iPhones, apps, social networking services and Web sites — although there are a lot of fingers that can be aimed in their direction. We’re all somewhat to blame. The argument that if consumers care about their privacy they shouldn’t use these technologies is a cop-out. This technology is now completely woven into every part of society and business. We didn’t tell people who wanted safer cars simply not to drive. We made safer cars. Well, safety advocates, consumers and the government dragged the automobile industry toward including seat belts, air bags, more visible taillights and other safety features. Christopher N. Olsen, assistant director in the division of privacy and identity protection at the Federal Trade Commission, expects that as the privacy violations pile up, Congress could enact laws to protect consumers. “Industry should redouble its efforts to focus on privacy issues, or they may face additional pressure in form of legislation from Congress,” he said. Such legislation would not be ideal for anyone. As technology companies rightly argue, more legislation and regulation stifle innovation. But the current system of self-regulation is clearly not working. “The FTC has been very active on the enforcement front; we’ve recently entered into consent decrees with large companies like Facebook and Google, and we have pushed other companies too,” Olsen said.
benton.org/node/114692 | New York Times
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FTC ANSWERS EPIC
[SOURCE: New York Times, AUTHOR: Somini Sengupta]
The Electronic Privacy Information Center’s pleas to the Federal Trade Commission to scrutinize Google’s latest privacy policy changes have met with a curt “No, thanks.” Last year, Google signed a consent decree with the FTC, promising not to make changes to the information it made public about its users without their consent. Last week, EPIC sued the FTC in Federal District Court in Washington, calling for it to investigate Google’s privacy policy changes. On Feb 17, the agency responded by saying that EPIC has no legal standing in the matter. It asked the court to dismiss the case. The agency’s response says nothing about the substance of the allegations. The agency reserves the right to scrutinize Google anyway and rule on whether it violated the consent decree it signed with the government last March. The FTC’s court filing simply tells the consumer group to mind its own business.
benton.org/node/114691 | New York Times
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DID GOOGLE VIOLATE AGREEMENT?
[SOURCE: Los Angeles Times, AUTHOR: David Sarno]
In the wake of evidence that Google circumvented privacy protections on the iPhone, federal lawmakers are asking if the company violated the terms of its broad privacy settlement with the Federal Trade Commission. The FTC settlement, finalized in October, "bars the company from future privacy misrepresentations," and required Google to implement a comprehensive privacy program. But Reps. Ed Markey (D-M), Joe Barton (R-TX) and Cliff Sterns (R-FL) are asking if Google's apparent end run around software on Apple's Web browser that blocks tracking would constitute a violation of Google's agreement with the FTC. "Google’s practices could have a wide sweeping impact because Safari is a major web browser used by millions of Americans," the lawmakers wrote to the FTC. "As members of the Congressional Bi-Partisan Privacy Caucus, we are interested in any actions the FTC has taken or plans to take to investigate whether Google has violated the terms of its consent agreement."
benton.org/node/114690 | Los Angeles Times | The Hill
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CUSTOMIZED POLITICAL ADS
[SOURCE: New York Times, AUTHOR: Tanzina Vega]
Political campaigns, which have borrowed tricks from Madison Avenue for decades, are now fully engaged on the latest technological frontier in advertising: aiming specific ads at potential supporters based on where they live, the Web sites they visit and their voting records. The technology that makes such customized advertising possible is called microtargeting, which is similar to the techniques nonpolitical advertisers use to serve up, for example, hotel ads online to people who had shopped for vacations recently. In the last few years, companies that collect data on how consumers behave both online and off and what charitable donations they make have combined that vast store of information with voter registration records. As a result, microtargeting allows campaigns to put specific messages in front of specific voters — something that has increased in sophistication with the large buckets of data available to political consultants.
benton.org/node/114704 | New York Times
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MICROSOFT AND GOOGLE
[SOURCE: Los Angeles Times, AUTHOR: David Sarno]
Microsoft left a big privacy loophole in its Internet Explorer browser and is now going after Google for driving a truck through it. Microsoft said Google has been rolling over a privacy safeguard in its Internet Explorer 9 browser that helps users prevent advertisers from placing tracking files on their computers. Microsoft's allegations come a few days after Google took licks for appearing to circumvent privacy protections on Apple's Safari browser. "When the IE team heard that Google had bypassed user privacy settings on Safari, we asked ourselves a simple question: Is Google circumventing the privacy preferences of Internet Explorer users too?" Dean Hachamovitch, Microsoft's vice president of Internet Explorer, wrote in a blog post. "We’ve discovered the answer is yes."
benton.org/node/114699 | Los Angeles Times
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GOOGLE VS FACEBOOK
[SOURCE: Politico, AUTHOR: Michelle Quinn]
What’s happened to the company that once vowed to “do no evil”? One word: Facebook. Sure, Facebook’s $3.7 billion annual revenue pales compared to the whopping $8 billion Google brings in each quarter — right now. But Facebook’s potential post-IPO trajectory puts it on a collision course for eyeballs and online advertising dollars and that’s driving Google to make moves that anger lawmakers, provide fodder for an antitrust probe and prompt a lawsuit from a public interest group, analysts say. “This is Google taking their lumps in the press in order to free themselves up to compete with Facebook on their social strategy,” said Ashkan Soltani, an independent privacy and security consultant and former technologist at the Federal Trade Commission’s division of privacy and identity protection.
benton.org/node/114698 | Politico
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WIRELESS/SPECTRUM
PUBLIC SAFETY BROADBAND
[SOURCE: Government Technology, AUTHOR: Brian Heaton]
The battle to establish an interoperable, nationwide broadband network for public safety appears to be over. Congress passed legislation on Friday, Feb. 17, that reallocates the 700 MHz “D Block” section of the airwaves for the network and supplies $7 billion in federal grant money to kick-start the project. For more than a decade, public safety advocates had been seeking federal approval for a high-speed wireless system that connects police and firefighters across multiple jurisdictions. The spectrum and network provisions were tucked into the Temporary Payroll Tax Cut Continuation Act of 2011 (H.R. 3630) — which extends social security tax breaks for the middle class and unemployment benefits. Funding for the system will come out of an expected $22 billion stemming from future FCC auctions to commercial wireless providers of unused airwaves and “white space” spectrum — the band of frequencies between TV channels that are currently blank and serve as a buffer between the broadcast signals of various stations. Wireless communications placed in white space aren’t expected to be powerful enough to interfere with TV transmissions. Thanks to the legislation, the reallocation of D Block means that public safety will have 20 MHz of contiguous spectrum to launch the nationwide wireless broadband network. In addition, public safety also won’t be required to return its 700 MHz narrowband spectrum.
benton.org/node/114688 | Government Technology | ars technica
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WILL BROADCASTERS SELL?
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
When it comes to parting with their spectrum, many television broadcasters have the same attitude Charlton Heston had when it came to his rifle: The government can pry it from their “cold dead hands.” Even though the potential cut for broadcasters from the sale is $1.75 billion, there doesn't seem to be a whole lot of excitement about the idea. “We have no intention of giving up spectrum,” said Alan Frank, president and chief executive of Post-Newsweek Stations, a broadcasting group that owns stations in several big cities, including Detroit, Houston and Miami. David Smith, CEO of Sinclair Broadcast Group Inc., which operates 74 stations around the country, said he “hasn't heard of any broadcaster who has said they have anything for sale.” The big networks seem to share that view. Although none would comment publicly, executives at Fox and NBC indicated they had no desire to sell any of their airwaves. CBS Chief Executive Leslie Moonves has previously said his company wants to keep all its spectrum. “The stations likely to sell — if any — are the ones that offer truly niche programming serving a melting pot of immigrant populations,” said Dennis Wharton, a spokesman for the National Association for Broadcasters. “The notion that an ABC or CBS affiliate would voluntarily choose to go out of business to help solve an alleged spectrum crunch is ludicrous.”
benton.org/node/114687 | Los Angeles Times
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TWEETING AT 70 MILES PER HOUR
[SOURCE: San Jose Mercury News, AUTHOR: John Boudreau]
American drivers are about to become a lot more distracted. As safety officials fret about drivers taking their eyes off the road to play with smartphones, automakers from Detroit to Japan are rolling out vehicles that are becoming virtual iPads on wheels. Next-generation vehicles, safety experts warn, could make multitasking motorists even more of a hazard on the nation's roads and freeways. Transportation Secretary Ray LaHood has called distracted driving "a dangerous epidemic." What began as perks for luxury cars are now becoming standard features of lower-end vehicles. Motorists can press steering wheel buttons to buy movie tickets and give voice updates for their Facebook pages. Daimler AG, the German manufacturer of Mercedes-Benz and other vehicles, is working on technology that will enable drivers to read information on the windshield by waving their hand. Ford is offering consumers a car system that converts smartphones into routers, giving passengers Internet access while barreling down the road.
benton.org/node/114684 | San Jose Mercury News
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LIGHTSQUARED FAILED BECAUSE OF SCIENCE
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
The seeds of LightSquared's failure to win government clearance to build a 4G-LTE network can, ironically, be found in the "approval" the company received just 13 months ago. In January 2011, the Federal Communications Commission (FCC) was clearly getting a positive vibe from LightSquared's plan to build an open-access network using both satellites and cell towers. The conditional approval issued by the agency stressed the positives of LightSquared's plan, noting that "if LightSquared successfully deploys its integrated satellite/terrestrial 4G network, it will be able to provide mobile broadband communications in areas where it is difficult or impossible to provide coverage by terrestrial base stations (such as in remote or rural areas and non-coastal maritime regions), as well as at times when coverage may be unavailable from terrestrial-based networks (such as during natural disasters)." Despite the FCC's glowing remarks about LightSquared, the conditional approval made it clear the plan would never gain final clearance unless it could be implemented without interfering with GPS devices. In a nutshell, LightSquared needed a special waiver because it is trying to use spectrum allocated for low-power space-to-ground transmissions for something it was not originally allocated for: high-power ground-only transmissions that could fuel a nationwide wireless mobile broadband network. The portion of L-Band spectrum controlled by LightSquared is adjacent to the spectrum used by GPS devices, and GPS devices, according to repeated tests, would be unable to receive the signals intended for them because the high-power LightSquared signals would overpower the GPS ones.
benton.org/node/114700 | Ars Technica
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OVER-THE-AIR TV
[SOURCE: Wall Street Journal, AUTHOR: Christopher Stewart]
It's cool to have rabbit ears again. Largely relegated to obscurity decades ago, old-fashioned television broadcasts—over the airwaves and not via cable or satellite—are enjoying an unexpected revival in the digital era. With an increased array of online-video programming now drawing viewers' attention, companies are starting to pitch consumers on complementing online video streamed from the Web with broadcast-TV signals as a way to save money on cable subscriptions. If it gains traction, this trend could undercut part of the rationale for selling off TV spectrum in voluntary auctions, aimed at freeing up spectrum for wireless broadband. There are signs that consumers are responding.
benton.org/node/114703 | Wall Street Journal
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BRAILLE AND TEXTING
[SOURCE: Los Angeles Times, AUTHOR: Deborah Netburn]
Braille Touch is a new app that enables people to type messages on an Android or iOS touch screen without having to look down. The app is designed for people who are visually impaired, but that doesn't mean the rest of us can't use it too. "We have become slaves to keyboards that are too small and that have too many buttons," said Mario Romero, a post-doctoral fellow at Georgia Tech's School for Interactive Computing and the lead researcher on a paper about Braille Touch. "Almost everyone has to look at the keyboard when they send a text message. We lose sight every time we text. And I don't think that's right." Braille Touch would change that. It is based on Computer Braille, a system of typing that allows users to input up to 63 characters through pressing different combinations of just six buttons -- three on each side of the phone. Users of this new typing system hold the phone facing away from the body, using the middle three fingers of each hand to chord in letters, numbers and characters such as exclamation points and the "at" sign. Spaces and backspaces can be entered through gestures of flicking left or right on the phone.
benton.org/node/114695 | Los Angeles Times
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LABOR
FOXCONN ISSUES
[SOURCE: Bloomberg, AUTHOR: Peter Burrows]
The Fair Labor Association, a watchdog monitoring working conditions at makers of Apple products, has uncovered “tons of issues” that need to be addressed at a Foxconn Technology Group plant in Shenzhen, China, FLA Chief Executive Officer Auret van Heerden said. Van Heerden made the comments in a telephone interview after a multiday inspection of the factory. Apple, the first technology company to join the FLA, said on Feb. 13 that it asked the Washington-based nonprofit organization to inspect plants owned by three of its largest manufacturing partners. “We’re finding tons of issues,” van Heerden said en route to a meeting where FLA inspectors were scheduled to present preliminary findings to Foxconn management. “I believe we’re going to see some very significant announcements in the near future.” He declined to elaborate on the findings. The FLA plans to release more information about its inspection in the coming weeks. By then, the company will have had a chance to contest or agree to steps to prevent further violations.
benton.org/node/114676 | Bloomberg
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FOXCONN RAISES WAGES
[SOURCE: Los Angeles Times, AUTHOR: Nathan Olivarez-Giles]
Foxconn, a supplier for Apple, Microsoft, Samsung and many other top electronics brands, is giving its employees a raise of 16% to 25% this month as the company faces new scrutiny about its workplace conditions. The raise is reportedly the third that Foxconn has given to employees since 2010 and comes as the Fair Labor Association is monitoring its factories, media scrutiny is at a high point, and activists such as Change.com are calling for improved pay and work environments.
benton.org/node/114675 | Los Angeles Times
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JOURNALISM
CONFLICT OF INTEREST?
[SOURCE: Forbes, AUTHOR: ED Kain]
Apple has granted ABC full, unfettered access to its Chinese suppliers. “For years, Apple and Foxconn have been synonymous with monster profits and total secrecy,” said ABC’s Bill Weir, “so it was fascinating to wander the iPhone and iPod production lines, meet the people who build them and see how they live. Our cameras were rolling when thousands of hopeful applicants rushed the Foxconn gates and I spoke with dozens of line workers and a top executive about everything from hours and pay to the controversies over suicides at the plant and the infamous “jumper nets” that line the factories in Shenzhen. After this trip, I’ll never see an Apple product the same way again.” The real twist here, however, is Apple’s relationship with ABC. ABC’s parent company is Disney Corporation. The top dog at Disney, CEO Bob Iger, sits on Apple’s Board. Meanwhile, the late Steve Jobs (and now his family) are the biggest individual shareholders of Disney. Does this create a conflict of interest and possibly call into question ABC’s reporting on the Apple supply chain?
benton.org/node/114674 | Forbes
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CONTENT
PIRACY AND BOX OFFICE
[SOURCE: Los Angeles Times, AUTHOR: Ben Fritz]
A new academic study provides ammunition for those who say online piracy is hurting Hollywood's bottom line. A paper by economists Brett Danaher of Wellesley College and Joel Waldfogel of the University of Minnesota estimates that piracy caused a 7% decline in international box office returns during a one-year period bridging 2005 and 2006 studied by the academics. The study did not estimate the effects of piracy on domestic box office or DVD sales. The authors looked at a period before and after the 2003 launch of the popular BitTorrent technology, which is widely used by film pirates. Since movies have typically premiered first in the U.S. and are usually available via BitTorrent soon after they hit theaters, the study compared movies' foreign box office receipts to their domestic takes before and after the advent of Internet piracy. It found that the overall decline in overseas box office receipts was 7%, which during the period studied amounted to a drop of $240 million. The researchers found a more significant decrease in foreign box office compared with domestic for science fiction and action films, genres that tend to be more popular among the online piracy community.
benton.org/node/114702 | Los Angeles Times
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WHAT HAPPENS AFTER SOPA?
[SOURCE: San Jose Mercury News, AUTHOR: Chris O’Brien]
[Commentary] The defeat last month of the odious Stop Online Piracy Act left some hard feelings between Silicon Valley and Hollywood. This obscures a far more important point: Both sides need each other. Badly. While the valley is revolutionizing the gadgets and online services that are turning our viewing and listening habits upside down, Hollywood (really just shorthand for creators of film, TV and music) is making the high-quality content that users are eager to view across these blossoming platforms. It has been a tense relationship. But in the end, they need each other to succeed. In that spirit, it's time to ask: How can we move the piracy conversation forward? After talking with people from the various constituencies this week, I'm convinced it can happen. To get there, four things need to change: Cool the rhetoric. Get better data. Be transparent. Avoid politics.
benton.org/node/114701 | San Jose Mercury News
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STORIES FROM ABROAD/INTERNATIONAL
MCDOWELL ON THE UN AND THE INTERNET
[SOURCE: Wall Street Journal, AUTHOR: FCC Commissioner Robert McDowell]
[Commentary] On Feb. 27, a diplomatic process will begin in Geneva that could result in a new treaty giving the United Nations unprecedented powers over the Internet. Dozens of countries, including Russia and China, are pushing hard to reach this goal by year's end. As Russian Prime Minister Vladimir Putin said last June, his goal and that of his allies is to establish "international control over the Internet" through the International Telecommunication Union (ITU), a treaty-based organization under United Nations auspices. If successful, these new regulatory proposals would upend the Internet's flourishing regime, which has been in place since 1988. That year, delegates from 114 countries gathered in Australia to agree to a treaty that set the stage for dramatic liberalization of international telecommunications. This insulated the Internet from economic and technical regulation and quickly became the greatest deregulatory success story of all time.
Pro-regulation forces are, thus far, much more energized and organized than those who favor the multi-stakeholder approach. Regulation proponents only need to secure a simple majority of the 193 member states to codify their radical and counterproductive agenda. Unlike the U.N. Security Council, no country can wield a veto in ITU proceedings. With this in mind, some estimate that approximately 90 countries could be supporting intergovernmental Net regulation—a mere seven short of a majority. While precious time ticks away, the U.S. has not named a leader for the treaty negotiation. We must awake from our slumber and engage before it is too late. Not only do these developments have the potential to affect the daily lives of all Americans, they also threaten freedom and prosperity across the globe.
benton.org/node/114705 | Wall Street Journal
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CHINA-HOLLYWOOD DEAL
[SOURCE: Los Angeles Times, AUTHOR: Kate Linthicum, Richard Verrier]
Some observers had written off Chinese Vice President Xi Jinping's five-day visit to the United States as heavy on pomp but light on substance. But on Feb 17, just before his plane left Los Angeles, the White House announced that China has agreed to ease restrictions on the number of U.S. movies it allows into the country and the amount of revenue that studios can collect from box office ticket sales there. Under the deal, China has agreed to allow 14 additional foreign films, at least those that are in 3-D or IMAX, into the country each year under a revenue-sharing agreement. The agreement also increases the amount of revenue that foreign studios collect from movies distributed in China from about 13% to 25% of ticket sales. Easing China's restrictions on access to its vast market has been a top priority for the Motion Picture Association of America, whose chief executive, Chris Dodd, met with Xi. The agreement is a big political win for the Obama Administration, which had seen Hollywood actors and executives giving the President a cold shoulder during a recent fundraising swing through California. Studios were upset with the perception that Democrats were favoring Silicon Valley interests over the industry's intellectual property when the President refused to support controversial legislation that would have further criminalized online piracy. The new trade pact should help Hollywood increase its footprint in one of the fastest growing film markets. The agreement brings with it a message about what the next wave of movie exports will look like: They will be large, in 3-D and mostly unrelated to the real world.
benton.org/node/114673 | Los Angeles Times | NYTimes | The Hill
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COPYRIGHT CHEATS IN FRANCE
[SOURCE: New York Times, AUTHOR: Eric Pfanner]
The curtain has risen on the third act of one of the most ambitious French musical productions, one whose goal is to end digital piracy. More than two years after France approved a tough crackdown on copyright cheats, the agency that oversees it sent its first cases to the courts last week. Some repeat offenders may temporarily be cut off from the Internet. Studies show that the appeal of piracy has waned in France since the so-called three-strikes law, hailed by the music and movie industries and hated by advocates of an open Internet, went into effect. Digital sales, which were slow to get started in France, are growing. Music industry revenues are starting to stabilize. “I think more and more French people understand that artists should get paid for their work,” said Pascal Nègre, president of Universal Music France. “I think everybody has a friend who has received an e-mail. This creates a buzz. There is an educational effect.” But the curtain has not yet come down for the fallen file-sharers. As a presidential election nears, opposition to the law is heating up.
benton.org/node/114672 | New York Times
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INTERNET IN IRAN
[SOURCE: Reuters, AUTHOR: Zahra Hosseinian, Ramin Mostafavi]
Iranians faced a second and more extensive disruption of Internet access Feb 20, just a week after email and social networking sites were blocked, raising concerns about state censorship ahead of parliamentary elections. The latest Internet blockade affected the most common form of secure connections, including all encrypted international websites outside of Iran that depend on the Secure Sockets Layer protocol, which display addresses beginning with "https."
benton.org/node/114671 | Reuters
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