January 2014

The nature of wireless competition

[Commentary] There is more to mobile wireless competition than meets the eye. It’s not about the static efficiency gains associated with economizing on infrastructure costs in sparsely populated areas, but rather about the innovations -- the new and better products and services of all sorts -- that come from dynamic competition between large, complex and constantly evolving platforms and encompasses platform innovations of all sorts, such as AT&T’s successful gamble on the iPhone and T-Mobile’s recent innovations in pricing plans. Dynamic competition is one phenomenon regulators will never be able to mimic or manufacture, but we can hope that, over time, they will learn how to avoid mucking up the works.

Poll: Cyberwarfare Is Top Threat Facing US

Cyberwarfare is the most serious threat facing the United States, according to almost half of US national security leaders who responded to the inaugural Defense News Leadership Poll, underwritten by United Technologies. But while the leaders in national security policy, the military, congressional staffs and the defense industry are united in the seriousness of the cyber threat, agreement on the next greatest threat breaks down clearly along party lines. Terrorism is viewed as the next greatest threat by leaders who identified themselves as Republicans, while climate change was cited by those identifying as Democrats.

The threat environment beyond cyber is where party differences show up:

  • Republicans saw terrorism as an equal threat to cyberwarfare, with an identical 36.3 percent citing terrorism as the greatest threat facing the country.
  • Democrats were less than half as likely pick terrorism (18.2 percent) as the leading threat. Instead, climate change took the No. 2 slot among Democrats, 21.2 percent. By contrast, not a single Republican respondent cited climate change as a threat.
  • Independents were in line with Republicans, listing terrorism as second (20 percent) behind cyberwarfare. China (13 percent) and climate change (7 percent) followed.

FISA and Sen Paul Face Off Over Domestic Spying

The Foreign Intelligence Surveillance Court has greenlighted the government's continued collection of call logs from millions of Americans, Director of National Intelligence James Clapper disclosed, as demands for the program’s abolishment reached new heights. Sen Rand Paul (R-KY), a potential 2016 presidential contender, responded saying he will file a class action lawsuit against the government to stop the surveillance.

DNI officials had attempted to preempt such blowback when they announced the court's blessing. They made promises to declassify the court order and consider a recommendation to shift data collection to private companies. "In light of the significant and continuing public interest in the telephony metadata collection program, DNI Clapper has decided to declassify and disclose publicly that the government filed an application with the Foreign Intelligence Surveillance Court seeking renewal of the authority to collect telephony metadata in bulk, and that the court renewed that authority on Jan. 3," DNI Public Affairs Director Shawn Turner said.

Verizon plows ahead on text-to-911, while AT&T 'resets' testing schedule

Verizon Wireless, Sprint, AT&T Mobility and T-Mobile US said they all continue to make progress in deploying services that will allow wireless customers to send text messages to 911 operators in place of voice calls. Of those three carriers, Verizon appears to be the furthest along in its efforts to launch the service by a May 15, 2014, deadline.

Specifically, Verizon in a report to the Federal Communications Commission said it plans to offer 911 call centers the choice of three text-to-911 options, two of which are already available and the third targeted for launch in the first quarter of 2014. Verizon said it is working with its Text Control Center vendor, Telecommunication Systems, to offer the three text-to-911 options: SMS using a Web browser client and SMS to TTY, both of which are currently available, and SMS over Direct IP. Verizon said the launch of the SMS over Direct IP capability was delayed from late 2013 to the first quarter of 2014. Verizon said that so far 46 different jurisdictions are using one of its text-to-911 options, up from 37 in October 2013, and several additional deployments are currently scheduled through early 2014. That Verizon appears further along in the process than other carriers doesn't come as a surprise. Verizon had pushed for a nationwide text-to-911 capability long before the FCC announced the May 15, 2014, deadline for the service. Indeed, Verizon first launched a commercial text-to-911 service in September 2012.

Phillies sign new deal with Comcast SportsNet

The Philadelphia Phillies reached a 25 year agreement on local TV-rights with Comcast SportsNet. The deal is “in the neighborhood of $2.5 billion.” The numbers -- 25 years and $2.5 billion -- would translate into the Phillies' netting an average annual rights fee of $100 million. The team's previous deal with Comcast, which was set to expire after 2015, brought in an average annual rights fee of $35 million. Quick translation: The Phillies roughly have $65 million more to spend each year. And that doesn't include the $24 million the team - along with the other 29 clubs in baseball - received this winter as part of Major League Baseball's new national television deal.

Evgeny vs. the internet

Evgeny Morozov wants to convince us that digital technology can’t save the world, and he’s willing to burn every bridge from Cambridge to Silicon Valley to do it.

To say that Morozov has gone out of his way to irritate powerful and influential people in the tech world doesn’t quite capture it. Doing so is his primary occupation. In the Morozovian worldview, New York University professor and social-media theorist Clay Shirky is a “consultant-cum-intellectual”; Google’s mission is to “monetize all of the world’s information and make it universally inaccessible and profitable”; and Tim O’Reilly, the Silicon Valley publisher and venture capitalist who coined “Web 2.0,” is an Orwellian “meme hustler” and the main culprit behind “the enduring emptiness of our technology debates.” To millions of viewers, TED talks are inspirational speeches about “ideas worth spreading” in science and technology. To Morozov they are a “sinister” hyping of “ideas no footnotes can support.”

Championing affordable Internet access

[Commentary] St. Paul nonprofit, PCs for People, has given away nearly 25,000 refurbished computers to grateful low-income Minnesotans over the past 18 months. Impressive, yes. But in the minds of Andy Elofson and Casey Sorensen, only halfway to their goal.

In some neighborhoods, mostly in the Twin Cities’ urban core, as many as one-third of the residents still cannot afford Internet access, free computer or not. Without that connection, it’s tough to check in with a child’s teacher regarding homework and progress, or figure out which bus to take to a job interview, or communicate with loved ones a state, or a continent, away. But Elofson, the founder, and Sorensen, the executive director, are champs at finding a need and filling it. Through word-of-mouth a year ago, Sorensen connected with Denver-based Mobile Citizen, a high-speed mobile Internet provider with an altruistic founder. As this new year begins, 7,000 Minnesotans are enjoying unlimited Internet access for $10 a month. The big goal for 2014 is to give away 2,400 computers throughout the Upper Midwest. Then? “Chicago’s next,” Sorensen said.

Snapchat’s bad security shows how data use policies fail

In their privacy policies and terms of use, the companies that handle our data make plenty of promises about all of the third-party evils they will protect our data from. But those policies contain few limits on what the companies themselves can do with our info or how they will secure it.

Case in point: the messaging app Snapchat gives itself access to users' phone numbers and usernames, standard for any messaging service. After ignoring months of warnings from Gibson Security that it was possible to tie together usernames and real phone numbers with incessant queries of the service's Find My Friends feature, the security collective dumped the code to its site. Snapchat took a few days to even acknowledge the problem, and even after hackers created a database with 4.6 million names and phone numbers, the company is still hesitating to apologize or offer its user base reassurance. Security researcher Chris Soghoian said that a lawsuit against the company for this oversight is extremely likely. Snapchat had the information, and hackers had the opportunity. The damage has been done.

Snapchat hires lobbyists for the first time

The social network Snapchat has hired lobbyists in Washington for the first time.

Snapchat -- which allows users to send photos and videos that disappear after a certain amount of time -- has signed up with the powerhouse K Street firm Heather Podesta + Partners, according to a lobbying disclosure form filed Jan. 1. The lobbying firm will work on communications, computers and consumer protection issues for Snapchat, and “educating policymakers regarding the application's operation and practice,” according to the form. The lobbyists on the account include Heather Podesta, once counsel to the late Rep Bob Matsui (D-CA), Eric Rosen, former counsel to the Senate Judiciary Committee, and Benjamin Klein, once legislative director for ex-Sen. Byron Dorgan (D-ND). Snapchat is hiring lobbyists in the wake of a data breach that exposed millions of users’ information and prompted calls for a Federal Trade Commission (FTC) investigation.

Former FCC Chairman Genachowski heads to Carlyle Group

Former Federal Communications Commission (FCC) Chairman Julius Genachowski joined the Carlyle Group’s buyout team as a managing director and partner. He will focus on investments in technology, media and telecommunications.