December 2013

NSA deputy director steps down

Chris Inglis, the deputy director of the National Security Agency and its top civilian official, stepped down, according to an agency spokeswoman.

Fran Fleisch is now serving as the acting NSA deputy director, the agency's No. 2 position. She had been the NSA executive director, which is the third-highest ranking post. “The plan has been set for some time, first announced internally at NSA this past summer, for Inglis to retire at the end of 2013 and Gen. Alexander in the spring of 2014," NSA spokeswoman Vanee Vines said. "In each case, their time in office represented a significant extension of service beyond their original tours." Vines said the NSA plans to name Fleisch as the long-term successor to Inglis "pending administration concurrence."

Google Pulls Privacy Feature it Says Wasn’t Supposed to Be in Android in First Place

With the latest update to Android, Google has removed a hidden feature that had been used to allow phone owners to more tightly control which personal information could be accessed by applications.

Google isn’t commenting directly on the feature’s removal, but the company has indicated that it had inadvertently included experimental code within Android 4.3 that enabled it. Google won’t say when or if the feature might return. The move isn’t winning Google any love from privacy advocates who see yanking the feature as a step back for consumers. Google maintains that the feature could cause apps to crash since it allows for certain permissions to be revoked.

15 Million Students Learned to Program This Week, Thanks to Hour of Code

Hour of Code, a five-day-old initiative to get kids to take programming tutorials during Computer Science Education Week, will soon reach 15 million students, organizers said.

A Movement To Bake Online Privacy Into Modern Life, 'By Design'

As we become a more digitally connected society, one question has become increasingly pervasive: Is the expectation of privacy still reasonable? Ann Cavoukian, the privacy commissioner for Ontario, Canada, thinks so.

She contends that privacy — including privacy online — is foundational to a free society. She developed a framework for approaching privacy issues back in the 1990s that's been recognized around the world. Her approach of seven principles, called "Privacy By Design," advocates that tech designers and engineers need to bake privacy provisions into their products and work from the start, not as an afterthought.

The seven principles:

  1. Proactive not Reactive; Preventative not Remedial
  2. Privacy as the Default Setting
  3. Privacy Embedded into Design
  4. Full Functionality – Positive-Sum, not Zero-Sum
  5. End-to-End Security – Full Lifecycle Protection
  6. Visibility and Transparency – Keep it Open
  7. Respect for User Privacy – Keep it User-Centric

Sprint Preparing a Bid for T-Mobile US

Sprint is working toward a possible bid for rival T-Mobile US, people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the US wireless market dominated by three big companies.

Sprint is studying regulatory concerns and could launch a bid in the first half of 2014, the people said. A deal could be worth more than $20 billion, depending on the size of any stake in T-Mobile that Sprint tries to buy. A merger of the third and fourth largest US carriers would create a sizable competitor to industry leaders Verizon Wireless and AT&T. But it would likely face tough opposition from antitrust authorities, who worry consumers could suffer without a fourth national competitor to keep a check on prices. Sprint hasn't yet decided whether to move ahead with a bid. Going forward despite regulators' concerns would be highly risky. Any pursuit of a bid by Sprint could be aimed at testing antitrust officials' reaction to a deal, and a bad reaction could put an end to the effort.

Can Sprint really buy T-Mobile?

[Commentary] A resurgent T-Mobile underpinned by aggressive pricing and a boisterous CEO, a new Sprint backed by hyper-fast data and a Japanese telecom giant, and the duopoly -- AT&T and Verizon -- up to its usual antics: just when it seemed like we'd finally reached some semblance of stability in the US wireless market, we hear the news that Sprint may be ramping up to make a bid for T-Mobile. If the report holds water and Sprint elects to proceed, we could be in for an unexpectedly turbulent 2014 (and beyond) for the American wireless landscape, as regulators and executives spar over the viability and wisdom of allowing the United States' number three and four carriers to combine. And who would win that battle?

For the Federal Communications Commission, it’s primarily a question of whether a consolidation would help or harm competition. Two years ago, with Sprint and T-Mobile both hemorrhaging subscribers, teaming up might have put the two in a better position to square off against the Big Two; since then, though, the smaller carriers have gotten their desperately needed LTE efforts off the ground. T-Mobile has started adding customers; Sprint hasn't, but it's now backed by SoftBank's wallet and ambition. In other words, it's fair to call T-Mobile and Sprint more "competitive" now, at least by some metrics -- and that makes a merger, which would bring the United States down to just three national wireless providers, less appealing in the eyes of competition-minded regulators. But regulation aside, none of this touches on the technical nightmare that engineers at Sprint and T-Mobile would face in combining their networks.

A Few Thoughts on the Sprint/T-Mobile Merger Rumors

[Commentary] I have some thoughts on the rumors about Sprint merging with T-Mobile. Basically, the national wireless market is already too concentrated. We need more, not less competition. A stronger third-place competitor, better able to keep AT&T and Verizon in check, might sound appealing. But it's not worth the price of losing the number four competitor. A market with only three major carriers would be much more prone to "coordinated effects" where "competing" companies act as an effective cartel, even if they don't meet secretly to split up the market. All they need to do is match each other’s pricing moves and pay attention to press statements and you have the same result as an illegal cartel without any lawbreaking. This is just as bad for consumers.

House panel eyes next steps for cellphone unlocking

The House Judiciary Committee could have more to do on the issue of “cellphone unlocking.”

The committee, which has worked on the issue before and is in the middle of a broad review of copyright law, may take up the issue again. Many in Congress applauded the announcement that five top cellphone carriers — AT&T, Verizon, T-Mobile, Sprint and U.S. Cellular — have reached an agreement that will allow their users to keep their devices when they switch between the five companies’ networks when technologically possible as a significant gain for consumers, but some are saying the agreement isn’t enough. According to a House Judiciary aide, Chairman Bob Goodlatte (R-VA) “welcomes the agreement” and “is in the process of reviewing this agreement and determining if legislation is necessary.” In a statement, Committee member Jason Chaffetz (R-UT) called the carriers’ agreement a “partial win” for consumers but said, “The process that necessitated the FCC having to take action remains heavily flawed.” Rep Chaffetz said he would work “with Chairman Goodlatte to help advance legislation that will remove the threat of felony charges for unlocking a cell phone.”

Charter Prepares Takeover Offer for Time Warner Cable

Charter Communications is preparing to make an offer of less than $135 a share for Time Warner Cable, according to people briefed on the matter. The offer, which is likely to come in the form of a so-called bear hug letter, will consist of a mix of cash and Charter stock. It will set the wheels in motion for a new round of consolidation in the cable operator industry. Such a deal would have an equity value of around $38 billion. Charter could make its offer very soon. Charter believes it can get away with offering what is a small premium above the current trading price.

Verizon Is Said to Be Near Deal to Buy Intel’s TV Service

Verizon Communications is near an agreement to purchase Intel’s Internet-based pay-TV startup, according to people familiar with the discussions.

Intel, which developed the service called OnCue, began looking for a buyer rather than invest in the programming and bring it to market on its own. Verizon, the second-largest US communications company, will use OnCue to extend its pay-TV offering beyond the geographic footprint of its FiOS fiber-optic service. Intel, the world’s largest chipmaker, decided to sell the business after its new management opted to focus on selling chips for mobile devices, said one of the people.