February 2012

Lawmakers question Apple CEO Cook about privacy

Reps. Henry Waxman (D-CA) and G.K. Butterfield (D-NC) sent a letter to Apple CEO Tim Cook asking if the company does enough to protect user information on iPhones.

Specifically, they asked if Apple’s policies ensure developers can’t share or collect user data — such as iPhone contact lists — without permission. The concern comes after Path, an online diary, said it collected and stored users’ iPhone contact lists without explicitly asking for permission to do so. When launching the app, Path automatically uploaded contact data in order to “find friends” to connect to on the social networking app. The lawmakers say the practice “raises questions about whether Apple’s iOS app developer policies and practices may fall short when it comes to protecting the information of iPhone users and their contacts.” They asked Cook how many apps grab information from users’ iPhone contact lists and whether the apps ask for permission from users to access that data.

They asked for Cook to answer by Feb. 29 how Apple vets app developers and their use of data from devices.

White House pleased with cybersecurity bill's approach

A White House spokeswoman said the Administration is pleased with the "comprehensive approach" of the Senate's cybersecurity bill.

"While we are fully reviewing the bill introduced by Sens. [Joe] Lieberman [(I-CT)], [Susan] Collins [(R-Maine)], [Jay] Rockefeller [(D-WV)] and [Dianne] Feinstein [(D-CA)], we are especially pleased with the bill's comprehensive approach and the Senators' work to address the core national security requirements and economic interests laid out in the Administration’s legislative proposal," said Caitlin Hayden, a spokeswoman for the White House National Security Council. "We fully support the fact that the bill provides [the Homeland Security Department] the authority to address critical infrastructure risks and to enable greater sharing of cybersecurity information while preserving privacy and civil liberties. We look forward to continued engagement with the Congress as this vital legislation moves forward."

Spectrum auctions included in tentative tax deal

Apparently, a tentative deal to extend the payroll tax cut includes auctions of airwaves licenses, known as spectrum.

The auction proceeds would help to pay for extending unemployment benefits. The spectrum legislation would authorize the Federal Communications Commission (FCC) to auction airwaves that currently belong to television broadcasters, splitting some of the revenue with the stations that choose to participate.

Sen Grassley refuses to lift hold on FCC nominees despite agency backtracking on LightSquared

Sen. Chuck Grassley (R-Iowa) plans to block President Obama's two nominees to the Federal Communications Commission (FCC) despite the agency nixing LightSquared's high-speed wireless network.

Sen Grassley placed the hold on the nominees to try to force the FCC to release internal records on its review of the company. He questioned why the FCC allowed LightSquared to get as far as it did in the regulatory process despite tests that showed its network could disrupt GPS devices. “The FCC’s action seems to acknowledge the point I’ve been making since April," Sen Grassley said. "Prematurely granting a conditional waiver in a rushed process is not the way to get the right result. Now that the interference issue is settled, we need to find out more than ever why the FCC did what it did." "The agency put this project on a fast track for approval with what appears to have been completely inadequate technical research," Grassley said. "After all of this time and expense, still, no one outside of the agency knows why. That’s not the way the people’s government should work. The public’s business ought to be public." FCC officials have declined to meet with Sen Grassley on several occasions, saying the usual order of the Senate is to only meet with lawmakers who serve on committees with jurisdiction over their agency. Although Sen Grassley is the top Republican on the Judiciary Committee, he does not sit on the Senate Commerce Committee, which oversees the FCC.

"Now that the FCC has backtracked on LightSquared, I’d like to see my Senate colleagues join my document request, especially the chairman of the only Senate committee that the FCC is willing to answer," Sen Grassley said, referring to Commerce Committee Chairman Jay Rockefeller (D-WV). "If we don’t find out how and why the FCC failed to avoid this controversy, then it will keep operating as a closed shop instead of the open, publicly accountable agency it should be.”

Comcast almost stops losing subscribers in 4Q

It's become the routine in the cable industry that subscribers stream out the door every quarter, hanging up on cable in favor of service from satellite or phone companies. But in the October to December quarter, Comcast nearly managed to stop that flow, giving its profit a lift.

The country's largest cable company said it lost 17,000 TV customers in the fourth quarter, the smallest number of defections in five years. It compares with a loss of 135,000 subscribers in the same quarter a year earlier. Comcast credits added TV channels and better customer service for the better retention. Its stock jumped nearly 6% in morning trading, hovering just below $29.05, which the stock hit on Feb 14 and is near a four-and-a-half-year record high.

Apple iPad plant conditions better than the norm: Fair Labor Association

Working conditions at Chinese manufacturing plants where Apple Inc's iPads and iPhones are made are far better than those at garment factories or other facilities elsewhere in the country, according to Auret van Heerden, president of the Fair Labor Association which is investigating the plants.

He offered no immediate conclusions on the working conditions, but he noted that boredom and alienation could have contributed to the stress that led some workers to take their own lives. After his first visits to Foxconn, van Heerden said, "The facilities are first-class; the physical conditions are way, way above average of the norm." He spent the past several days visiting Foxconn plants to prepare for the study.

The Case for Publicly Owned Internet Service

[Commentary] In cities and towns across the US, a familiar story is replaying itself: Powerful companies are preventing local governments from providing an essential service to their citizens. More than 100 years ago, it was electricity. Today, it is the public provision of communications services. Like the power trusts of the 20th century, the enormous consolidated providers of wired Internet access want to tamp down any enthusiasm for municipal networks.

Right now, state legislatures -- where the incumbents wield great power -- are keeping towns and cities in the U.S. from making their own choices about their communications networks. Meanwhile, municipalities, cooperatives and small independent companies are practically the only entities building globally competitive networks these days. Both AT&T and Verizon have ceased the expansion of next-generation fiber installations across the U.S., and the cable companies’ services greatly favor downloads over uploads. Congress needs to intervene. One way it could help is by preempting state laws that erect barriers to the ability of local jurisdictions to provide communications services to their citizens.

Apple Seeks Court Permission to Sue Bankrupt Kodak for Patent Infringement

Apple asked a bankruptcy judge for permission to sue Eastman Kodak over allegations it’s infringing patents that Apple says cover technologies used in printers, digital cameras and digital picture frames.

Apple said in a filing in U.S. Bankruptcy Court in New York that it intends to file a complaint against Kodak at the International Trade Commission and a corresponding suit in U.S. District Court in Manhattan based on patent-infringement claims. The suit will seek an order blocking Kodak’s infringement, according to the filing. Apple previously claimed it is the true owner of the image-preview patent that is the subject of infringement claims lodged against Apple and Research in Motion Ltd. The Cupertino, California-based company contends that it developed a digital camera in the early 1990s that it shared with Kodak, and that Kodak then sought the patent on the technology. Kodak has denied the allegations.

ABC News, Bluefin Labs Extend Social TV Analytics Partnership Through Presidential Election

ABC News has extended its partnership with social TV analytics firm Bluefin Labs through next year’s presidential inauguration.

Bluefin Labs is a social media analytics company backed by Time Warner Ventures and several other top VC firms. The company has quickly established itself as a key source of data in the burgeoning social TV arena. Starting in December and continuing throughout the recent Republican primary debates, Bluefin Labs has been analyzing social media reactions and valuing candidates’ performances for ABC News. O’Keefe said the values assigned to candidates has “almost perfectly” correlated with major campaign events.

Apple Slashes iAd Pricing Again as Mobile Ad Share Declines

Apple is once again slashing the minimum amount it charges advertisers to run a campaign on its iAd mobile ad system and boosting the amount it pays mobile app developers.

Advertisers will now have to spend just $100,000 for Apple mobile campaigns running in iPhone and iPad apps, down from a previous $500,000 threshold and a significant reduction from the initial starting price of $1 million in 2010, when Steve Jobs unveiled Apple's first ad product. In addition, app developers will receive 70% of ad revenues from iAds running on their apps, vs. their previous 60% cut. The extra money will compensate for lower ad rates and serve as added incentive for developers to build businesses on Apple devices, even though they may grab a bigger audience or more ad revenue creating apps for Google's Android devices, which now outnumber Apple smartphones in the US. Apple also plans to change the way it charges for ads, which irked some advertisers and agencies. Since iAd launched, Apple has charged advertisers twice: a fixed rate for every 1,000 ad impressions plus an additional fee every time a user clicked on the ad. Apple will now charge only the cost-per-thousand rate.