February 2014

NSA surveillance hurting tech firms' business

It used to be that tech titans such as Cisco Systems and IBM could bank on fertile markets in Asia and Europe in their quest for worldwide financial domination. Not so much anymore. The National Security Agency, and revelations about its extensive surveillance operations -- sometimes with the cooperation of tech firms -- have undermined the ability of many US companies to sell products in key foreign countries, creating a fissure with the US government and prompting some to scramble to create "NSA-resistant" products. The fallout could cost the tech industry billions of dollars in potential contracts, which has executives seething at the White House. The Information Technology & Innovation Foundation estimates the NSA imbroglio will cost US businesses $22 billion through 2016. Forrester Research pegs potential losses at $180 billion, which includes tech firms and managed service providers.

Civil Rights Principles for the Era of Big Data

Technological progress should bring greater safety, economic opportunity, and convenience to everyone. And the collection of new types of data is essential for documenting persistent inequality and discrimination. At the same time, as new technologies allow companies and government to gain greater insight into our lives, it is vitally important that these technologies be designed and used in ways that respect the values of equal opportunity and equal justice.

Signatories ranging from the American Civil Liberties Union to Public Knowledge aim to:

  • Stop High-Tech Profiling. New surveillance tools and data gathering techniques that can assemble detailed information about any person or group create a heightened risk of profiling and discrimination. Clear limitations and robust audit mechanisms are necessary to make sure that if these tools are used it is in a responsible and equitable way.
  • Ensure Fairness in Automated Decisions. Computerized decisionmaking in areas such as employment, health, education, and lending must be judged by its impact on real people, must operate fairly for all communities, and in particular must protect the interests of those that are disadvantaged or that have historically been the subject of discrimination. Systems that are blind to the preexisting disparities faced by such communities can easily reach decisions that reinforce existing inequities. Independent review and other remedies may be necessary to assure that a system works fairly.
  • Preserve Constitutional Principles. Search warrants and other independent oversight of law enforcement are particularly important for communities of color and for religious and ethnic minorities, who often face disproportionate scrutiny. Government databases must not be allowed to undermine core legal protections, including those of privacy and freedom of association.
  • Enhance Individual Control of Personal Information. Personal information that is known to a corporation -- such as the moment-to-moment record of a person’s movements or communications -- can easily be used by companies and the government against vulnerable populations, including women, the formerly incarcerated, immigrants, religious minorities, the LGBT community, and young people. Individuals should have meaningful, flexible control over how a corporation gathers data from them, and how it uses and shares that data. Non-public information should not be disclosed to the government without judicial process.
  • Protect People from Inaccurate Data. Government and corporate databases must allow everyone -- including the urban and rural poor, people with disabilities, seniors, and people who lack access to the Internet -- to appropriately ensure the accuracy of personal information that is used to make important decisions about them. This requires disclosure of the underlying data, and the right to correct it when inaccurate.

Chill out about the Netflix-Comcast deal

[Commentary] A five-year-old app gets bought for $19 billion (WhatsApp). A Web document sharing firm gets valued at $10 billion (Dropbox). And cable TV firms are losing customers in their main video business. The Internet is booming, challenging established industries all around. Yet many greeted the news that Netflix would connect its video servers directly to Comcast with apocalyptic shrieks of Internet doom.

The fears are misplaced. The Internet is changing, as it was always meant to. That’s the genius of its design. Netflix’s decision to send video directly to Comcast, instead of routing it through other network intermediaries first, sets no precedent. Other firms like Google, Amazon and Microsoft have been linking directly to broadband networks for years. So have content delivery networks such as Akamai, Limelight and EdgeCast, which store videos, banner ads and other content closer to end users. The pessimistic charge that the US is failing, however, could send policy in a very different direction. The Netflix-Comcast news led to calls for applying the regulatory regime known as “network neutrality” (twice struck down by the courts) to not just last-mile broadband networks but the whole Internet ecosystem. Others called on the Federal Communications Commission to “reclassify” the Internet as a “Title II” telephone service. Do we really want regulate the Internet like an old monopoly phone network?

[Swanson is president of the technology research firm Entropy Economics LLC and a visiting fellow at the American Enterprise Institute’s Center for Internet, Communications, and Technology Policy]

GCHQ's interception and storage of Yahoo webcam images condemned

Politicians and human rights groups have reacted angrily to revelations that Britain's spy agency intercepted and stored webcam images of millions of people not suspected of any wrongdoing with the aid of its US counterpart.

GCHQ files dating between 2008 and 2010 reveal that a surveillance program codenamed Optic Nerve collected images of Yahoo webcam chats in bulk and saved them to agency databases, regardless of whether individual users were an intelligence target or not. The Tory member of Parliament David Davis said: "We now know that millions of Yahoo account holders were filmed without their knowledge through their webcams, the images of which were subsequently stored by GCHQ and the NSA. This is, frankly, creepy." While MP Davis said it was perfectly proper for the intelligence agencies to use any and all means to target those suspected of terrorism, kidnapping and other serious crimes, but that the indiscriminate nature of the program was alarming. "It is entirely improper to extend such intrusive surveillance on a blanket scale to ordinary citizens," he said. The Liberal Democrat MP Julian Huppert said he was "absolutely shocked" at the revelation. "This seems like a very clear invasion of privacy, and I simply cannot see what the justification is," he said.

Reps Form Congressional Spectrum Caucus

Already co-chairs of the House Commerce Committee's Federal Spectrum Working Group, Reps Brett Guthrie (R-KY) and Doris Matsui (D-CA) have taken their spectrum policy advocacy to a new level, forming the Congressional Spectrum Caucus.

"Spectrum, a key component of innovation, is facing an increasingly high demand while in limited supply," said Rep Guthrie. "The caucus will attempt to educate our colleagues on the importance of spectrum policy and identify ways to increase access to and better utilize spectrum." The pair have already teamed up on two bills to promote and incentivize sharing of federal agency spectrum. The National Telecommunications & Information Administration has identified more than 400 MHZ of federal spectrum that could be shared or reclaimed. The White House has directed both the FCC and NTIA to hunt up spectrum for wireless broadband as a way to speed deployment and increase capacity. Chip Pickering, CEO of Comptel (competitive telecommunications carriers) and a former member of the Commerce Committee welcomed the spotlight.

Media Institute: Aereo Is Illegal Contrivance Masquerading As Disruptive Innovation

The Media Institute has filed a friend-of-the-court brief with the Supreme Court backing broadcasters in their fight with Aereo. The First Amendment think tank, which is backed by major media companies, recruited Duke University Law visiting professor and institute advisor Rodney Smolla to make the argument that Aereo is simply using a technological contrivance"-- banks of remote off-air antennas and servers for recording programming -- that serves no purpose other than to provide legal cover so that Aereo can "traffic in copyrighted content without paying for it." "If a picture tells a thousand words, a thousand antennas tell the picture," the brief says, "Aereo's bizarre engineering, employing thousands of antennas to do the work of one, reveals to all what is really going on." Smolla also argues that the Aereo model threatens to undercut broadcasters business models, and not through the disruptive innovation that is a threat to any settled business model, but by illegal activity in the guise of that innovation.

Rep Eshoo Wants FCC to Investigate Below-the-Line Wireless, Wired Fees

House Communications Subcommittee ranking member Rep Anna Eshoo (D-CA) -- backed by Reps Howard Coble (R-NC), Mike Doyle (D-PA) and Ben Ray Lujan (D-NM) -- wants the Federal Communications Commission to open a proceeding on below-the-line fees on wired and wireless phone bills.

The committee said that from their own experience from the web sites of those companies -- AT&T, Century Link, Sprint, T-Mobile, Verizon, and Verizon Wireless --"consumers cannot easily obtain a total estimate of their first month’s bill, including all taxes, fees and surcharges, prior to entering personal information, such as name, social security number and credit card information. Given that the combination of such charges can add as much as 42 percent to a consumer’s monthly bill, we believe that further examination by the FCC is warranted."

ABC Will Live-Stream Oscars to Web, Mobile Apps for First Time -- But There’s a Catch

ABC will use the Oscars telecast as a carrot to lure viewers to its Watch ABC mobile and web video services. But the network is setting up a digital velvet rope: It will let only subscribers of participating pay-TV providers in eight markets watch the full show over the Internet.

ABC also has retired its standalone Oscars app, which the network debuted in 2011 to provide live looks into the action backstage and on the red carpet. Instead, that content will be folded into Watch ABC, but will be available to anyone in the US for free. The decision to phase out the dedicated Oscars app was made to get the content “in front of the largest addressable audience without them having to download a separate app,” said Karin Gilford, senior VP of digital media for ABC Television Network.

FCC Airwaves Auction Ends After Reaching Minimum Price Set by Dish

In one of the least suspenseful airwaves auctions ever, the Federal Communications Commission announced that bidding for licenses sought by Charlie Ergen’s Dish Network sold for the auction’s minimum price of $1.56 billion.

It certainly isn’t the best outcome for government officials hoping to attract the most revenue possible for the airwaves. Proceeds from the auction are set to go toward funding a new mobile network for police and other first responders. Dish is the presumed winner of the airwaves licenses, according to industry analysts who’ve been watching the bidding. The FCC wouldn’t release the name(s) of the winner(s) and said it would take a few days to compile the official results. A Dish spokesman declined to comment, citing anti-collusion rules.

Netflix Is Chasing HBO, but It’s Already Passed Plenty of Big Cable Guys

Netflix makes no bones about the fact that it wants to be HBO. And it is closing in on the pay channel, at least in terms of revenue: in 2013, Netflix’s streaming business generated $3.5 billion, while HBO made $4.9 billion from subscription fees. But while it chases Time Warner’s pay channel, Netflix has already passed lots of other big cable operations. MoffetNathanson’s Michael Nathanson spelled it out -- Netflix has already climbed past AMC Networks, Starz, CBS’s Showtime and Scripps Networks. Next up, Discovery.