September 2013

FAA Moves Toward Mandatory Replacement of Certain Honeywell Displays

The Federal Aviation Administration moved toward mandatory replacement of certain older Honeywell International pilot displays installed on more than 150 Boeing 737s and 777s flown by US carriers, raising new concerns about susceptibility to interference from Wi-Fi signals.

Regulators have warned that in extreme cases, Wi-Fi systems aboard commercial jets could cause essential pilot displays to blink or temporarily blank out, a previously discovered vulnerability affecting several hundred airliners world-wide. The FAA's move comes amid a proliferation of Web connectivity for airline passengers and pilots alike, and also coincides with FAA deliberations to ease current cabin restrictions on using personal electronic devices below 10,000 feet. Industry officials said the latest action wasn't prompted by those broader policy discussions, though it may end up having some impact on the agency's final decision. Both Honeywell and Boeing previously acknowledged the potential interference problem, which hasn't shown up during any flights.

Sen. McCaskill calls for criminal charges for 'Obamaphone' cheats

Sen. Claire McCaskill (D-MO) called for criminal charges to be filed against people who defrauded a federal phone subsidy program.

Sen McCaskill sent a letter to the Federal Communications Commission, urging the agency to refer examples of fraud in its Lifeline program to the Justice Department for prosecution. "Knowingly providing false information to a government agency for profit must be investigated. If these companies are found in violation of federal law, I expect the DOJ will prosecute those responsible to the fullest extent of the law," she wrote. She also urged the FCC to more aggressively use its own enforcement authority to fine companies abusing the program. She warned that Congress could kill the program unless the FCC institutes tough new reforms.

BlackBerry Buyout Offer Raises Array of Questions

An offer to take BlackBerry private does not end the uncertainty surrounding the ailing smartphone maker.

BlackBerry said that it had signed a letter of intent from a group led by Fairfax Financial Holdings, a Canadian insurance and investment company. The $4.7 billion offer from Fairfax, which already owns about 10 percent of BlackBerry, is a powerful symbol of the phone maker’s decline. In June 2008 — a time when BlackBerrys defined smartphones — the company had a stock market value of $83 billion. V. Prem Watsa, Fairfax’s chairman and chief executive, told shareholders in March that the company paid an average price of $17 for its BlackBerry shares, giving him an obvious interest in at least stalling the slide in BlackBerry’s shares. Yet not only are there questions about the offer, several analysts say it is not clear how the Fairfax group could stem BlackBerry’s rapid decline or stabilize the company. Given the high risk involved in investing in BlackBerry, one of the most pressing questions surrounding the deal is the identity of anyone prepared to invest in the company alongside Fairfax. Just as unclear is how a buyout would be financed. The offer establishes a timeline and a price floor for other potential bidders. But with the company in free fall, there is little certainty of another bid emerging in the coming weeks.

Is DC BlackBerry's last stand?

BlackBerry, in the midst of an incredible downward business spiral, appears to be hanging its hopes on what has been its most reliable customer: the government.

The firm, which has hung its hat on the security of its devices and platforms, has traditionally been the feds’ favorite mobile supplier. It’s that kind of customer that helped grow the company in the first place, CEO Thorsten Heins said. Now, with a renewed focus on its professional and enterprise customers, the company is trying to salvage its most loyal user base — a group that largely includes the federal government.

LightSquared Lenders Object to Independent Committee's Board Selection

Lenders to LightSquared questioned the selection of an independent director to help oversee a sale of the wireless telecom company. The lenders in bankruptcy court papers claim the director, Donna Alderman, isn't independent because she previously sparred with Dish Network, which is offering $2.22 billion for LightSquared. The lenders said in the court papers that Alderman has a "troubled history" with Dish Chairman Charlie Ergen and "his affiliates." Representatives for the lenders and Dish have also privately expressed concerns to LightSquared about the selection of Alderman, according to people familiar with the discussions. LightSquared's lenders, owed about $1.7 billion, have an interest in seeing Dish's bid accepted, as it would repay them in full with interest. The lenders include hedge funds that bought LightSquared debt at a discount. A bankruptcy judge is set to hold a hearing on Sept 24 to review rules governing LightSquared's expected auction later this year.

Australia to Review Fiber Network With Rollout 50% Behind Target

Australia will review its national fiber network as the rollout falls 50 percent behind targets and the new Communications Minister sought resignations from all directors of the government-backed company building the project.

NBN Co.’s target for the number of buildings with fiber broadband connections by the end of June 2014 has been revised down by half, Communications Minister Malcolm Turnbull said. About 1.3 million premises would have had access to the network by that date, according to the company’s most recent corporate plan. Turnbull has previously criticized the project, estimated to cost about A$44 billion ($41 billion) by the previous government, for missed targets and cost overruns. About 33,600 homes and businesses were using the fiber network at the end of June, with 207,500 premises connected to the cables, compared to a target of more than 2 million connections in NBN Co.’s earlier 2011 corporate plan. Turnbull and Prime Minister Tony Abbott have promised to connect all households to high-speed Internet by 2016 for A$30 billion, saving money by running the fiber only as far as junction boxes as much as a kilometer from homes and covering the remaining distance using existing copper wires. The previous government’s plan would have run fiber direct to almost every home and workplace in the country.

Telefónica eyes Brazil deal after sealing Telecom Italia control

Telecom Italia’s Italian shareholders have struck a deal with Telefónica for the Spanish operator to gradually increase its stake in Italy’s largest telecoms operator paving the way for a potential sale of its Brazil operations.

The deal will allow Telecom Italia's domestic investors Mediobanca, Generali and Intesa Sanpaolo, to exit Telco, the holding company that controls around 22 percent of Telecom Italia, and gradually cede control to Telefónica. The deal also marks a watershed in foreign acquisitions of Italian companies. Italy has seen an increase in foreign takeovers as a decade of economic stagnation and two-year recession are hitting sales and profits forcing business owners to seek outside capital. But the sale of a majority stake in the holding company Telecom Italia is the first time a former state monopoly has ceded to foreign control. Analysts think it may lead to further deals such as a mooted takeover of Alitalia, Italy's cash-strapped national airline, by Air France-KLM.

Senators call for investigation of surveillance programs

Nine Senate Judiciary Committee members called on the intelligence community's inspector general to conduct "comprehensive reviews" of the government's surveillance programs.

The bipartisan group wrote that recently declassified documents "appear to reveal numerous violations of law and policy." They urged Charles McCullough, the inspector general of the intelligence community, to prepare reports detailing how the National Security Agency collects information and, in particular, information on people in the United States. They also asked him to report on privacy safeguards, any abuses of power and the effectiveness of the programs. The letter was signed by Committee Chairman Patrick Leahy (D-VT), ranking member Sen. Chuck Grassley (R-IA) and Sens. Charles Schumer (D-NY), Mike Lee (R-UT), Sheldon Whitehouse (D-RI), Ted Cruz (R-TX), Chris Coons (D-DL), Jeff Flake (R-AZ) and Richard Blumenthal (D-CT).

FDA outlines rules for medical apps on phones, tablets

The Food and Drug Administration (FDA) is taking a look at smartphone and tablet applications that help patients monitor their health and connect with doctors remotely.

The FDA released formal guidance for creators of medical apps, laying out which programs it thinks need to be regulated to protect patient safety. The apps allow doctors to check an X-ray, perform an ultrasound or help someone with diabetes easily monitor their blood sugar from a distance. But if they malfunction, those apps could recommend an unnecessary medical treatment or unsafe prescription dosage, potentially posing a threat to patients. Those devices can pose a threat if they don’t work as intended, the FDA said. To make sure the tools are up to snuff, the FDA will treat those apps like any other medical device.

Reps Eshoo, Waxman Push Inquiry Into Navy Yard Communications Problems

Looking to put a spotlight on the FirstNet emergency broadband communications network being funded by Federal Communications Commission (FCC) auctions, Reps. Henry Waxman (D-CA), ranking member of the House Commerce Committee and Anna Eshoo (D-CA), ranking member of the Communications subcommittee, are pushing for a full inquiry into what they say were possible first responder communications failures during the Navy Yard shootings in Washington.

In letters to Lawrence Strickling, who heads the National Telecommunications & Information Administration, and FCC acting Chairwoman Mignon Clyburn, the lawmakers said they wanted the agency heads to work with all levels of government to investigate possible first responder communications problems, with a focus on how a FirstNet interoperable network might prevent future similar breakdowns. The legislators say that press reports indicated some of the problems were known before the shooting, but not addressed. They gave Chairwoman Clyburn and Strickling until Oct 21 to provide an update on their inquiry.

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