August 2013

Verizon and Vodafone Rekindle Talks on $100 Billion-Plus Deal

Verizon Communications and Vodafone Group have rekindled talks about a buyout of the UK company's stake in their US wireless joint venture in a deal that would likely cost Verizon well over $100 billion.

Vodafone said there is no certainty an agreement will be reached. Apparently, Verizon is in discussions with banks about the tens of billions of dollars in loans it would need to complete the deal. Verizon has sought for years to buy out Vodafone's 45% stake in Verizon Wireless, the largest U.S. cellphone carrier, but the companies have never been able to agree on price. They remained far apart earlier this year, with Verizon looking to pay around $100 billion and Vodafone hoping for more like $130 billion.

New Report Exposes Flaws in Obama Administration’s “Multistakeholder” Effort to Establish Privacy Safeguards: White House Must Act Now to Fulfill its Vision for a “Privacy Bill of Rights”

A report released by the Center for Digital Democracy (CDD) criticizes the Obama Administration’s recent effort to establish new privacy safeguards for the Digital Era.

The more than yearlong proceeding led by the Department of Commerce’s National Telecommunications and Information Administration (NTIA) to further the Administration’s proposed “Consumer Privacy Bill of Rights” failed to ensure that the public can be protected from the array of sophisticated mobile “app” data-gathering practices. The detailed, 34-page report, “Head in the Digital Sand,” argues that the lobbyist-dominated process failed to examine the actual operations of the mobile app industry and its impact on the ability of consumers to protect their privacy effectively.

Among the most disturbing revelations is the growing use of real-time tracking and surveillance of individual mobile app users. Industry practices requiring investigation by the Federal Trade Commission are identified, including apps that stealthily eavesdrop on consumers to ensure they spend more on virtual goods and other services—moving them up, in industry parlance, from “minnows” to “dolphins” and then to big cash-generating “whales.” The report examines other mobile and app-related data collection practices, including the ways users are being tracked from device to device; how app developers “acquire” and target users; the role of so-called “ad exchanges” that auction off mobile consumers to advertisers in milliseconds, through the use of data-rich profiles; so-called “monetization” practices relied on by developers; and industry research on the unique personal relationship users have with mobile devices and content.

CBS-Time Warner Cable fight invites football fans’ wrath

Peyton and Eli Manning may play a starring role in bringing the long-running CBS-Time Warner Cable fight to an end while at the same time putting pressure on Washington to change the law at the heart of the dispute.

The contract battle, which has dragged on for nearly a month, has resulted in CBS blackouts for Time Warner Cable customers in New York, Los Angeles and Dallas. But if it plays out like other major “retransmission” spats in recent years, a major sports event like the Sept. 15 Manning brothers matchup in the Giants-Broncos game may act as a catalyst to bring the companies together for an agreement. Disputes like this one — with a broadcaster demanding more compensation from a pay-TV operator to run its programming — often precede a big NFL game, the World Series or the Oscars, high-profile events that raise the negotiating stakes. But by turning consumers into pawns, the strategy also carries risks.

FCC Must Provide Guidance On Natural Disasters

[Commentary] August 29 will be the 8th anniversary of Hurricane Katrina, a storm that left a level of devastation and death in the Gulf Coast that horrified our nation. Soon after the storm in 2005 there was an open debate about whether it was smart to rebuild in cities such as New Orleans, where the cost to build back the city’s defenses against future storms was great due to the natural terrain and the level of technology needed to do the job. Residents had to choose if they would return to their homes and invest in making their communities whole again, or simply start over in a new town where the prospects were better. This decision is not unlike what communities faced following the aftermath of Hurricane Sandy along the New York and New Jersey coast in 2012. In both instances, residents decided that their community was “stronger than the storm” and that they would restore their communities back to a place that worked for all its people and businesses.

Now the Federal Communications Commission faces a similar decision. After all previous natural disasters, such as Katrina, telecom and communications companies worked with the FCC to establish an understanding that they would, given adequate time by the agency, build back the parts of their network that had been destroyed in the disaster. Building out communications networks is expensive, time-consuming work and so the FCC set up a system under section 214(a) of the Communications Act for phone companies to ask for that needed time and flexibility.

Amazon Asks Supreme Court to Decide Sales Tax Fight

Amazon is taking a fight over sales tax in the state of New York to the U.S. Supreme Court. Exactly why is a little unclear.

The online retailer on filed documents to appeal the issue to the nation’s highest court, arguing that Amazon customers shouldn’t be subject to sales tax in New York because the Seattle company’s operations there aren’t substantial enough to trigger the levies. The document was filed by the Washington DC law firm Gibson Dunn & Crutcher, whose partner Ted Olson is a former US solicitor general and took part in the Bush v. Gore battle following the 2000 election. What seems odd about the filing is that Amazon has brokered deals with a variety of states–or chosen not to fight–allowing sales tax collection there. Starting next month, for instance, Georgia and Virginia will begin requiring sales tax collection for Amazon merchandise and in just the past year, Amazon has begun collecting sales tax from residents in New Jersey, California, Texas and Pennsylvania. At issue is a 1992 Supreme Court case that found that companies must have a physical presence in a state to be subject to sales tax.

NYT hack exposes Web Achilles' heel

The take-down of the New York Times website for nearly two days this week exposed how easily computer hackers can exploit the Internet's Achilles' heel.

As the website was being restored, the tech industry scurried to assess the high-profile cyberattack and weigh what measures could be taken to prevent a similar breach. In the last two years, a growing number of companies with a significant presence on the Web have had to bolster their defenses to make up for security gaps that were not considered a problem when the Internet was created. But as online attacks escalate in severity and visibility, high-profile targets whose digital presences often span the globe have struggled to spot and repair every vulnerability. The latest cyberattack on the nation's second-largest newspaper highlighted two well-known problems: a reliance on user names and passwords that can be easily stolen; and reliance on an unsecure directory that's crucial to delivering the right content after a user enters a Web address in an Internet browser.

Pass rates up for online classes at San Jose State

Students who took online classes in a summer program at San Jose State University performed better than those who took the same online classes in the spring, a result that is likely to provide a boost to a highly touted but problem-plagued collaboration between the campus and an online provider.

83% of summer students in elementary statistics earned a C or better compared with 50.5% of those in the spring; and 72.6% of summer college algebra students made the grade compared with 25.4% of those in the spring. The pass rates for remedial math improved somewhat, reaching nearly 30% for summer students compared with 24% for those in the spring. Students in two new summer classes also fared well, with 67% earning a C or better in general psychology and 70% achieving that level in computer programming. Officials said they were encouraged by the developments, especially after the disappointing spring results raised a host of critical questions about the highly watched project with Udacity, a Mountain View-based online course provider. Each of the for-credit classes cost $150 with no state or federal support.

LAUSD launches its drive to equip every student with iPads

Two local elementary schools became the first to roll out tablet computers in a $1-billion effort to put iPads in the hands of every student in the Los Angeles Unified School District.

For Broadacres, in Carson, the tablets were an exhilarating upgrade for a campus that had no wireless Internet and few working computers. Technology was only marginally better at Cimarron, in Hawthorne, where the computer lab couldn't accommodate an entire class. LA schools Supt. John Deasy has pushed for the technology, which will cost about $1 billion — half of that for the Apple tablets and about half for other expenses, such as installing a wireless network on every campus. The vast majority of the cost will be covered by school construction bonds, a payment method that has sparked some concerns and legal and logistical hurdles. Not everyone is sold on whether the tablets will improve learning.

Comcast to Light Up 250-Meg Broadband Service in Provo

Comcast will soon launch a high-speed Internet tier in Provo, Utah, that will deliver maximum downstream speeds of 250 Mbps and upstream bursts of 50 Mbps for $80, giving the MSO a new weapon to wield against Google Fiber as it takes over, upgrades and prepares to expand the city’s all-fiber iProvo network.

Google Fiber, which acquired the iProvo assets on July 22 for $1 and a pile of promises, plans to launch its package of 1 Gbps broadband and pay TV services in Provo by the end of the year. Closely mimicking the pricing plan for its Kansas City network, Google Fiber’s 1 Gig service in Utah will run $70 per month, and its 1 Gbps/TV bundle will start at $120 per month.

For Rural Teachers, Support Is a Click Away

Though located hundreds of miles apart, only one thing separated Kansas teacher Linda Dixon from the six novice special educators she advised last year: bandwidth. Day and night, the veteran teacher offered personalized advice and support to her junior colleagues in all corners of the Sunflower State, as well as stimulate discussions among them and point the group toward resources through the online platform that kept them all connected.

Online mentoring—or E-Mentoring for Student Success, as it’s called by the Santa Cruz (CA)-based New Teacher Center, which facilitates the Kansas initiative—is beginning to catch on as states seek ways to support new teachers that aren’t limited by geography or time. Those two factors have been particularly challenging for teachers in rural locales, where the nearest physics, calculus, or special education teacher might be in a school or district hours away.