April 2012

Netflix CEO calls out Comcast on network neutrality

When most Comcast subscribers complain, it’s a blip. When the CEO of Netflix vents to his 120,000 subscribers on Facebook, it’s a salvo. Reed Hastings doesn’t agree with Comcast’s approach to network neutrality and caps — and he wants everyone to know it. His beef? Watch Netflix, Hulu or HBO Go on Xbox and it counts against Comcast’s broadband cap for consumers. Use Comcast’s own Xfinity app and it doesn’t. Translation: Anyone worried about hitting the cap will watch what they can on Xfinity, giving it an advantage over the other services like Netflix or even a service it partially owns (but has no say over), Hulu.

Are mobile phone taxes a real problem?

While it's easy to dwell on just how much we pay over to the government this time of year, we're actually paying taxes all the time -- when we buy things, when we fill up our gas tank and when we pay our cell phone bills. Those phone bills are the focus of proposed legislation in Congress that would freeze cell phone taxes for five years.

Scott Mackey is an economist at KSE Partners; he also works with the major cell phone companies. “The typical customer pays about 16 percent of their total bill in taxes and fees,” he says. “To compare, the sales tax you pay on everyday items that you purchase, that rate is about 7.4 percent.” But why do the cell phone companies care how much we pay in taxes? Mackey says it’s pretty simple. People have limited budgets. “To the extent that taxes are driving up cost of people's bills, they have to cut back in what kinds of services they buy and what they purchase,” Mackey says. He and other supporters of the legislation argue that these taxes disproportionately impact lower-income people, who depend on their mobile phones for phone and Internet service.

From the Birthplace of Big Brother

[Commentary] The George W. Bush team must be consumed with envy. Britain’s government is preparing sweeping new legislation that would let the country’s domestic intelligence agencies monitor all private telephone, e-mail, text message, social network and Internet use in the country, bypassing requirements for judicial warrants. As with all such legislation on both sides of the Atlantic, sponsors promote the bill as a necessary new tool to keep the public safer from would-be terrorists, child molesters and common criminals. We are not convinced. What such sweeping new powers surely would do is compromise the privacy and liberty of law-abiding British citizens without reasonable justification.

Africa’s Free Press Problem

[Commentary] As Africa’s economies grow, an insidious attack on press freedom is under way.

Independent African journalists covering the continent’s development are now frequently persecuted for critical reporting on the misuse of public finances, corruption and the activities of foreign investors. Why this disturbing trend? In the West, cynicism about African democracy has led governments to narrow their development priorities to poverty reduction and stability; individual liberties like press freedom have dropped off the agenda, making it easier for authoritarian rulers to go after journalists more aggressively. In the 1990s, leaders like Paul Kagame of Rwanda and Meles Zenawi of Ethiopia were praised by the West as political and social reformers. Today, the West extols these men for achieving growth and maintaining stability, which they do largely with a nearly absolute grip over all national institutions and the press. Then there’s the influence of China, which surpassed the West as Africa’s largest trading partner in 2009. Ever since, China has been deepening technical and media ties with African governments to counter the kind of critical press coverage that both parties demonize as neocolonialist.

[Mohamed Keita is the Africa advocacy coordinator for the Committee to Protect Journalists.]

Brussels probes groups’ mobile wallet bid

Britain’s biggest mobile phone operators are to face an in-depth antitrust investigation into their payments joint venture after Europe’s top competition regulator raised concerns over it stifling innovation.

The European Commission’s decision to launch a lengthy probe, likely to run until late August, will be a blow to the operators’ hopes of winning speedy approval for the mobile payments and advertising system, codenamed “Project Oscar.” While the Commission gives most mergers the green light, even after an in-depth investigation, it has the power to block the venture or demand significant changes.

Google Bangs on the Openness Drum Again

[Commentary] Google co-founder Sergey Brin said that “very powerful forces” — including oppressive and territorial governments, the entertainment industry, and Facebook and Apple — “have lined up against the open Internet on all sides and around the world.”

Conflating Internet censorship and Google’s biggest competitors is a bit lazy, and it makes Brin seem wistful and out of touch. Has he looked around his own company lately and seen things like Search Plus Your World and Google Play? “Open” probably isn’t the best word to describe them.

Brin can argue that the current environment wouldn’t have fostered the creation of Google, but we’ve come a long way on the Internet since the late ’90s. If the definition of “open” is “that which can be indexed and monetized by Google,” maybe we need a new word.

Web freedom faces greatest threat ever, warns Google's Sergey Brin

The principles of openness and universal access that underpinned the creation of the internet three decades ago are under greater threat than ever, according to Google co-founder Sergey Brin.

In an interview with the Guardian, Brin warned there were "very powerful forces that have lined up against the open internet on all sides and around the world". "I am more worried than I have been in the past," he said. "It's scary." The threat to the freedom of the internet comes, he claims, from a combination of governments increasingly trying to control access and communication by their citizens, the entertainment industry's attempts to crack down on piracy, and the rise of "restrictive" walled gardens such as Facebook and Apple, which tightly control what software can be released on their platforms. The 38-year-old billionaire, whose family fled antisemitism in the Soviet Union, was widely regarded as having been the driving force behind Google's partial pullout from China in 2010 over concerns about censorship and cyber-attacks. He said five years ago he did not believe China or any country could effectively restrict the internet for long, but now says he has been proven wrong. "I thought there was no way to put the genie back in the bottle, but now it seems in certain areas the genie has been put back in the bottle," he said. He said he was most concerned by the efforts of countries such as China, Saudi Arabia and Iran to censor and restrict use of the internet, but warned that the rise of Facebook and Apple, which have their own proprietary platforms and control access to their users, risked stifling innovation and balkanising the web.

Iraq Emerges From Isolation as Telecommunications Hub

Iraq -- cut off from decades of technological progress because of dictatorship, sanctions and wars -- recently took a big step out of isolation and into the digital world when its telecommunications system was linked to a vast new undersea cable system serving the Gulf countries.

The engineers who designed and installed the cable that made shore in Al-Faw, near Basra, had to deal with an unusual number of challenges. There were more than 100 oil and natural gas pipelines to cross; stretches of shallow water where the cable had to be buried; and unexploded ordnance from the Iraq war that had to be avoided. The new cable will speed Internet and telephone traffic to India in the East and Sicily in the West. From there, traffic moves onto other networks to connect to the rest of the world.

Google Is Faulted for Impeding US Inquiry on Data Collection

When Google first revealed in 2010 that cars it was using to map streets were also sweeping up sensitive personal information from wireless home networks, it called the data collection a mistake. On April 14, federal regulators charged that Google had “deliberately impeded and delayed” an investigation into the data collection and ordered a $25,000 fine on the search giant. The finding, by the Federal Communications Commission, and the exasperated tone of the report were in marked contrast to the resolution of a separate inquiry two years ago. That investigation, by the Federal Trade Commission, accepted Google’s explanation that it was “mortified by what happened” while collecting information for its Street View project, and its promise to impose internal controls. But since then, the FCC said, Google repeatedly failed to respond to requests for e-mails and other information and refused to identify the employees involved.

White House Opens Door to Big Donors, and Lobbyists Slip In

Last May, as a battle was heating up between Internet companies and Hollywood over how to stop online piracy, a top entertainment industry lobbyist landed a meeting at the White House with one of President Obama’s technology advisers. He was accompanied by Antoinette C. Bush, a well-connected Washington lawyer who has represented companies like Viacom, Sony and News Corporation for 30 years. A friend of the president and a cousin of his close aide Valerie B. Jarrett, Ms. Bush has been to the White House at least nine times during his term, taking lobbyists along on a few occasions, joining an invitation-only forum about intellectual property, and making social visits with influential friends. At the same time, she and her husband, Dwight, have donated heavily to the president’s re-election effort: Mr. Bush gave $35,800 on the day of his wife’s White House meeting last year, and Ms. Bush contributed the same amount a month later. In November, they hosted a $17,900-a-plate fund-raiser at their home, where Mr. Obama complained that the nation’s capital should be more “responsive to the needs of people, not the needs of special interests.”