September 2013

FCC staffer heads to lobby giant Akin Gump

Veteran tech expert Gregory W. Guice has joined the law and lobby giant Akin Gump Strauss Hauer & Feld. Guice most recently worked as the leader of the Federal Communications Commission’s (FCC) Office of Legislative Affairs, and spent more than a decade at the independent regulator advocating for its legislative and policy goals. “The communications industry is constantly evolving and Akin Gump is widely known for its ability to develop bold solutions to the many challenges facing its clients,” Guice said in a statement.

Pakistan’s YouTube ban, one year later

Pakistan started banning access to YouTube a year ago as a response to violent protests against clips of the anti-Islamic film The Innocence of Muslims, and the company has kept up the ban ever since. Now, democracy activists are arguing that the Pakistani government uses those clips as a pretext to suppress freedom of speech.

“The Pakistani government has been blocking Internet content under the pretext of national interest, religion, and morality,” Hassan Belal Zaidi at the independent Internet rights advocacy group Bytes For All, based in Islamabad, told the Christian Science Monitor. “But it is actually trying to block any parallel discourse on the Internet and curtail freedom of expression of minorities... both political and religious, which speak against their persecution that happens quite often in Pakistan, and are not covered by mainstream media."

More Than 1 in 5 Cyber Jobs Vacant at Key DHS Division

More than one in five jobs at a key cybersecurity component within the Homeland Security Department (DHS) are vacant, in large part due to steep competition in recruiting and hiring qualified personnel, according to a new report by the Government Accountability Office.

The report, which assessed recruiting and hiring efforts at DHS overall, found that the Office of Cybersecurity and Communications – the subcomponent within the National Protection and Programs Directorate that houses cybersecurity personnel – has a vacancy rate of 22 percent. NPPD officials cited challenges in recruiting cyber professionals because of the length of time taken to conduct security checks to grant top-secret security clearances as well as low pay in comparison with the private sector. NPPD has taken a number of steps to help offset these recruiting challenges, including using direct hire authority and establishing relationships with cybersecurity centers of academic excellence to create a pipeline of qualified cyber staff. There also are department-wide efforts to boost the cyber workforce, particularly through the creation of a specific cybersecurity job series, GAO found.

Dr. Leslie Marx's expert analysis concludes that proposed FCC Incentive Auction restrictions would reduce revenues, risk auction failure

In a report filed with the Federal Communications Commission (FCC), Duke University Professor, Bates White Partner, and former FCC Chief Economist Leslie Marx states that proposals to restrict Verizon's and AT&T's participation in the upcoming Incentive Auction would "put at risk its twin priorities of raising significant revenue and reallocating a substantial amount of spectrum from broadcast to mobile wireless services."

Dr. Marx's analysis provides evidence that the FCC could not impose significant bidding restrictions without materially reducing auction revenues and risking outright auction failure. The filing, written on behalf of Verizon, addresses proposed rules for the FCC's upcoming Incentive Auction for wireless spectrum. Under these proposals, rules would limit Verizon's and AT&T's ability to bid for spectrum. In her analysis, Dr. Marx concludes that despite the claim that auction restrictions might increase revenue by ensuring that smaller firms are not discouraged from participating, proponents of that theory do not offer empirical support for these claims.

US investment heroes: AT&T and Verizon lead the way

The Progressive Policy Institute, that left-of-center think tank that became what PPI itself calls an “idea mill” for Bill Clinton’s New Democrats, has come out with its annual list of “US Investment Heroes,” the 25 companies that have bet the most on America’s future by making the largest capital investments in the United States.

The leaders are two telecommunications companies: AT&T, with $19.5 billion in capital expenditures, and Verizon, with $15 billion in 2012. AT&T and Verizon also ranked one and two on last year’s list. In fact, there are six telecom/cable firms among the top 25, and together they invested $51 billion, which is just shy of the $56 billion invested by energy companies in one of the greatest boom years for investment by that sector. Others among the six were Comcast, $5.6 billion (in 10th place); Sprint Nextel, $4.3 billion (13th); and Time Warner Cable, $3.1 billion (17th), and Direct TV, $1.7 billion.

The US's crap infrastructure threatens the cloud

[Commentary] US consumer broadband speeds rank 33rd in the world, right behind the Ukraine.

Personally, I pay more than $1,500 per month for 30/30MB fiber for our office. This is ridiculously expensive and slower than the average household Internet in many other countries. It's a serious impediment to the United States maintaining its economic competitiveness -- and to enabling all of us to take full advantage of the cloud, which is clearly the next phase of computing. As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Poor laws and regulations have protected a duopoly in most areas of the country. You can buy Internet from the local cable monopoly or the local phone monopoly, period. Neither have much motivation to make it much faster nor any cheaper. Today, the argument is that municipal fiber -- as well as other efforts to both increase the speed and availability of broadband and make the United States competitive with the rest of the world -- will cost telecommunication jobs. In reality, most evidence points to the opposite net effect. Yes, it would cut into Time Warner's short-term profitability. But it would increase my company's short and long-term profitability -- and create other higher-paying jobs associated with technology and communication throughout the economy.

After the initial cloud rush, where everyone will be talking but only a few will be doing, I expect that cloud adoption will closely match broadband speed, cost, and availability curves. Those companies living in countries where the broadband monopoly is protected will adopt the cloud at a slower rate than those with competitive markets and municipal fiber. There's a good chance US firms will fall into that group.

This is how the fear of government snooping takes its toll on tech companies

Two very different technology offerings were dropped because of fears that the US and China might be trying to spy on the customers using them.

In Baltimore, Maryland—just down the road from the headquarters of the National Security Agency in Ft. Meade—a US company called CyberPoint International lost a contract to provide a videoconferencing system to the federal government after US Customs determined that CyberPoint’s offering was in fact Chinese, substantially made by telecom equipment maker ZTE. A US House Intelligence panel has recommended that government agencies and contractors should avoid using equipment made by ZTE and its larger Chinese counterpart Huawei, because of fears that they might have ties to the Chinese military that could compromise the security of federal computer networks. ZTE and Huawei have strenuously denied the claims.

China is already planning to probe EMC, IBM, and Oracle over “security issues,” according to the state-run Shanghai Securities News. Trade groups have projected that the NSA hacking could end up costing US technology firms billions in lost sales if their foreign clients suspect that the NSA will have surreptitious access to their systems. The allegations against ZTE and Huawei have not been backed up with any evidence that their products have any intentional vulnerabilities that hackers from China or elsewhere could exploit. But it is becoming very clear why American intelligence officials, knowing what their own spy agency has been up to, are so worried about China doing the same thing.

Refocusing on newsroom diversity

[Commentary] Robert C. Maynard—journalist, editor, newspaper publisher, and former owner of The Oakland Tribune—spent much of his career trying to improve diversity in journalism. His namesake organization, the Maynard Institute for Journalism Education, is devoted to that effort. Twenty years after his death, the organization is headed by his daughter, Dori Maynard, who is troubled by what she sees as a decrease in attention paid to diversity in newsrooms.

“As one industry leader said a few years ago, ‘When it comes to diversity, it’s not only on the backburner—it’s not even in the kitchen,” she noted. About 90 percent of newsroom supervisors are white; only 12.37 percent of those in the newsroom are minorities, even though they make up 37 percent of the US population. The problem, Maynard said, is that when the journalism business model changed abruptly with the advent of the Internet, people went into “freefall panic” and diversity, she said, became an afterthought. But diversity is important. Robert Maynard, in his last public address before he died, said that “The country cannot be the country we want it to be if its story is told only by one group of citizens. Our goal is to give all Americans front door access to the truth.” So what’s to be done? Maynard´s daughter said that the Institute is commemorating the anniversary of her father’s death by refocusing on increasing the number of minorities in the journalism industry pipeline and retaining them once they’re there. The Institute is planning a possible series of online conversations that looks not only at what has gone wrong, but also at what has gone right—at coverage that works and why. She said they want to gather examples of how having a diverse staff adds “nuance to story and subject.”

Ballmer calls Google a 'monopoly' that authorities should control

Microsoft just unveiled its new Bing logo and design, and CEO Steve Ballmer opted to highlight his concerns over Google's business practices.

During a presentation at Microsoft's financial analysts meeting, Ballmer discussed how Microsoft might generate money in consumer services. "Google does it," he noted. "They have this incredible, amazing, dare I say monopoly that we are the only person left on the planet trying to compete with." Asked by an analyst how Microsoft can attack Google's dominance in search and advertising, Ballmer explained "we're the only guys in the world trying," with the Bing search engine. Bing now accounts for 17.9 percent of search share in the US, second only to Google at nearly 67 percent. Although Bing's market share has slowly grown in the US over the past two years, it has largely been at the expense of other competitors like Yahoo and AOL rather than Google itself. After its own troubles in the US and Europe, Microsoft is participating in a case against Google in Europe.

Fair Search, which includes Microsoft, Nokia, and others, is attempting to force Google to change how search results are displayed. The case centers on concerns around how Google displays its own specialized search services alongside those of its competitors. Google proposed some changes recently, but the EU rejected them and called for a better alternative. In the US, similar concerns resulted in a settlement with the Federal Trade Commission that Microsoft described as "weak" and "unusual."