February 2014

Clarifying net neutrality

[Commentary] Netflix’s new deal with Comcast is a clarifying moment, or at least should be. It should now be clear that the mechanics of over-the-top video delivery are not a question of network neutrality.

The Netflix-Comcast deal, in fact, was made under conditions of maximum net neutrality -- at least as the Federal Communications Commission had initially construed it in its now-defunct Open Internet Order -- and of maximum scrutiny of Comcast. Comcast is still legally covered by those rules under the terms of it NBC Universal consent agreement with the Justice Department, and with Comcast now looking for the government’s blessing to acquire Time Warner Cable you can bet its lawyers are being scrupulous about hewing closely to the terms of that earlier agreement with the feds in its dealings with Netflix. If ever there were a time for Netflix to hold out and wait for the government to force Comcast’s hand in resolving whatever issues were behind the recent deterioration in the quality of Netflix streams on Comcast’s network it was now. And yet here we are, with Netflix apparently agreeing to pay Comcast to ensure smoother, more reliable streaming. So clearly, Netflix didn’t think the problem had to do with net neutrality or that it would be fixed by stricter enforcement of Comcast’s net neutrality commitment. But what the Comcast deal really reinforces is that Netflix has always been an awkward poster child for the cause of net neutrality, albeit a voluntary one. It may seem like a clean win for Comcast but that doesn’t mean it comes at Netflix’s expense. Netflix is getting a multi-year, service-level agreement with Comcast (and presumably Time Warner Cable at some point) at a predictable cost that accounts for future growth. Whatever that cost is, moreover, it’s likely to be lower than what it had been costing Netflix to send traffic to Comcast up to now via a third-party transit provider.

[Sweeting is Principal, Concurrent Media Strategies]

The Evolution Of The Twitter Revolution

[Commentary] Perhaps the most important and consistent observation about the role social media plays in global protest movements is that it isn’t static; it evolves just as the movements and the media themselves do, analysts said.

Whenever Twitter and other social networks appear to have played a defining role in a protest or revolutionary movement -- from Iran to Egypt to Turkey to Ukraine -- there’s typically been a succeeding narrative that says it was less influential than it seemed at the time or functioned in a different manner. While these analyses are often valid, said Joshua Tucker, a New York University politics professor who’s studying social media’s role in the protests in Ukraine, they ignore a larger lesson: that social media as an organizing and broadcasting tool is growing with each protest movement and shows no sign of slowing. “It’s becoming increasingly difficult to imagine protests that don’t utilize social media,” he said. “If you want to understand protests moving forward -- what leads to protests, the dynamics of protests -- you have to get a handle on how social media impacts protesters.”

Arresting Development: Why the Comcast-Netflix Deal Should Worry You

[Commentary] Netflix agreed to pay Comcast an undisclosed amount to ensure that its videos stream smoothly to Comcast customers. But this is more than a deal between two giant companies: It will affect everyone who uses the Internet. And as with so many things involving Comcast, consumers will end up paying for it in the end.

The deal should also be a wake-up call to regulators who are weighing the proposed Comcast-Time Warner Cable merger and grappling with what to do about network neutrality. If the game of chicken that preceded this pact becomes the norm, it will be a disaster for the future of online video. The exact terms of the Comcast-Netflix deal are secret, but this much is clear: Millions of consumers who already paid handsomely for a premium broadband experience received poor service for months on end. Comcast refused to make minimal investments to deliver what its customers already bought -- and simultaneously pushed people to upgrade to more expensive services. This deal spells bad news for future startups and anyone interested in creating or consuming online media (read: pretty much all of us). It will likely chill investment in online video startups as investors look to safer bets that don't involve battling Comcast, a company that’s poised to control over half of the bundled home video and broadband Internet market. Disputes like this hurt the open Internet. They hurt consumers. And they'll become par for the course if Internet service providers are allowed to get even bigger and operate without the Federal Communications Commission stepping in.

Inside the Netflix-Comcast deal

[Commentary] Comcast and Netflix announced a commercial interconnect relationship between the two companies, which is in the very early stages of implementation, and as a result, many who clearly don't understand how the Internet works are writing about the news.

Those who don't cover network infrastructure for a living should not be trying to explain the technical details behind the announcement. Articles from mainstream outlets like TechCrunch, the Wall Street Journal, NPR and many others aren't even getting the basics right. Words like transit, peering, speed, bandwidth, capacity, etc. are being used interchangeably without any understanding of what they mean. In the hopes of trying to educate the market, let's clear up a lot of the confusion many in the media have created. The first one is that consumers need more "speed" from Comcast or Verizon to get better quality video streaming from Netflix. Next up are articles where it says that transit allows two networks to exchange "bandwidth," which is not accurate. Another statement I have seen people write about is saying that the deal focuses on the "two company's pipes." Netflix is not a network operator, they don't have any "pipes." They buy capacity from other network providers who have the pipes. So while this deal is about the interconnection between Comcast and Netflix, Comcast is the only one who actually owns the pipes. Other misstatements of late have been about transit with no real idea of just how many types of transit one can buy or how transit deals work. Most writing about Netflix don't even know the basics of how their content is delivered today or how content delivery networks and transit providers are involved. Commercial deals around interconnect help alleviate the bright lines between settlement-free interconnect (or peering) and a customer buying a retail product. Wholesale commercial deals take into account efficiencies and many other factors to drive a much lower unit cost. Bottom line is this is good for Netflix, Comcast, and for consumers, and it has absolutely nothing to do with net neutrality.

[Rayburn is executive vice president of StreamingMedia.com and principle analyst at Frost & Sullivan]

WhatsApp to Start Offering Internet Phone Calls

WhatsApp will start offering free voice services later this year -- diversifying beyond its main messaging service into phone calls.

Speaking at the Mobile World Congress conference in Barcelona, the tech company’s chief executive, Jan Koum, said users in the second quarter would be able to make Internet calls through their smartphones similar to services that are already available on rival Internet messaging offerings like Kakao of South Korea and Viber of Cyprus. WhatsApp’s voice service is expected to be available first on Google’s Android and Apple’s iOS operating systems, then expand to others like Windows Phone and Blackberry, he added. Koum, who was born in Ukraine before moving to the United States as a teenager, also said that WhatsApp would launch a mobile brand in a partnership with the German cellphone carrier E-Plus.

Why AT&T’s Surveillance Report Omits 80 Million NSA Targets

AT&T released for the first time in the phone company’s 140-year history a rough accounting of how often the US government secretly demands records on telephone customers. But to those who’ve been following the National Security Agency leaks, Ma Bell’s numbers come up short by more than 80 million spied-upon Americans.

AT&T’s transparency report counts 301,816 total requests for information -- spread between subpoenas, court orders and search warrants -- in 2013. That includes between 2,000 and 4,000 under the category “national security demands,” which collectively gathered information on about 39,000 to 42,000 different accounts. There was a time when that number would have seemed high. Today, it’s suspiciously low, given the disclosures by whistleblower Edward Snowden about the National Security Agency’s bulk metadata program. We now know that the secretive Foreign Intelligence Surveillance Court is ordering the major telecoms to provide the NSA a firehose of metadata covering every phone call that crosses their networks. An accurate transparency report should include a line indicating that AT&T has turned over information on each and every one of its more than 80 million-plus customers. It doesn’t.

John Dingell longest serving US representative retire

Rep John Dingell (D-MI), a Dearborn representative who replaced his father in the House some 58 years ago and became one of the most powerful members of Congress ever, will step down, capping a career unmatched in its longevity and singular in its influence and sweep.

Rep Dingell, 87, said that he’d reached the decision to retire at the end of his current term -- his 29th full one -- rather than run for re-election because it was time, given a list of achievements that any other member of Congress would envy, and his continued frustration over partisan gridlock. His health, too, has been more of a concern for those around him in recent years and Rep Dingell made it a practice every two years of consulting with his wife Deborah about whether he should continue. “My standards are high for this job,” Rep Dingell said. “I put myself to the test and have always known that when the time came that I felt I could not live up to my own personal standard for a member of Congress, it would be time to step aside. ... That time has come.” President Barack Obama said “the people of Michigan -- and the American people -- are better off because of John Dingell’s service.”

With Rep Dingell out, the race to be the top Democrat on technology is wide open

Rep John Dingell's departure will surely shake up a burgeoning competition over who gets to be the top Democrat on the House Commerce Committee.

Rep Dingell (D-MI) was well-placed to step in for Rep Henry Waxman (D-CA) on the committee. In fact, it's a position Rep Dingell has played before -- twice -- and was ousted most recently when Rep Waxman himself dislodged him from the post. Until his retirement announcement, Rep Dingell did not rule out trying to reclaim his old title. With Rep Dingell (D-MI) out of the picture, the spotlight now shines on two more junior lawmakers on the committee: Rep. Anna Eshoo (D-CA) and Rep. Frank Pallone (D-NJ)

Apple’s security bug: What to know about it and what to do about it

Apple users, it’s time for some updates.

The tech giant took the unusual step of releasing an update for its mobile operating system, iOS, to fix one bug -- one that left Apple devices wide open to hackers and spies looking to grab users’ most sensitive information. The bug affects iOS devices and Mac computers; Apple has yet to release a patch for its laptops and desktops. Apple spokeswoman Trudy Muller said that Apple is “aware of this issue and already have a software fix that will be released very soon” for Mac OS X devices. The security firm CrowdStrike, one of the first to release information on the patch, said that the bug in Apple’s system leaves devices open to hackers by letting them bypass the verification that Web sites use to encrypt sensitive information, called SSL/TLS. Go to your Settings menu to update your system through the “General” submenu. Right now. I’ll wait. This is the kind of update that should not be ignored, and it doesn’t take long to install. Apple has pushed out updates for iOS 7 users, as well as for iOS 6 users who’ve been wary to make the jump to the firm’s newest system.

The big bang of older TV viewers

Prime-time TV is going gray.

After decades chasing young viewers, the broadcast networks are starting to shift tactics -- peppering their lineups with shows and actors who appeal to the growing audience of aging baby boomers. The trend is being driven by demographics. Members of the baby boom generation will all be 50 or older, and they watch a disproportionate amount of TV. The median age of a broadcast television viewer is now the highest ever at 54. Twenty years ago, it was 41. The most-watched scripted series in the 1993-94 season was "Home Improvement," with a median viewer age of 34. Today, it's "NCIS," with a median viewer who is 61. Confronted with these realities, the networks are aggressively making the case to advertisers that older viewers are valuable -- especially the affluent and influential 55-to-64-year-olds they're calling "alpha boomers." The 50-and-up crowd of today, they contend, is far different than the frugal and brand-loyal group that came of age during the Great Depression and World War II. "These people are more active, healthier and much more likely to still be in the workforce," said David Poltrack, chief research officer at CBS. "It's certainly a much more vibrant and economically active audience than it used to be."