April 2015

A New Tool Against Cyber Threats

Starting April 1st, we’re giving notice to those who pose significant threats to our security or economy by damaging our critical infrastructure, disrupting or hijacking our computer networks, or stealing the trade secrets of American companies or the personal information of American citizens for profit. From now on, we have the power to freeze their assets, make it harder for them to do business with US companies, and limit their ability to profit from their misdeeds. While we’re focused on the supply side of this problem -- those who engage in these acts -- we’ll also go after the demand side -- those who profit from them.

As of April 1, there’s a new deterrent because I’m also authorizing sanctions against companies that knowingly use stolen trade secrets to undermine our nation’s economic health. These sanctions are meant to protect our national security, personal privacy and civil liberties. As such, sanctions will in no way target the unwitting victims of cyberattacks, like people whose computers are hijacked by botnets. Nor does this executive order target the legitimate cybersecurity research community or professionals who help companies improve their cybersecurity. And unlike some other countries, we will never try to silence free expression online or curb Internet freedom. As Americans, our security, prosperity, and privacy in the 21st century will depend on our ability to learn, innovate, build, and do business online -- and to do it safely, knowing that our sensitive or personal information will be protected. As of April 1, the United States has a new tool to protect our nation, our companies, and our citizens -- and in the days and years ahead, we will use it.

Energy companies around the world infected by newly discovered malware

Researchers have uncovered an ongoing espionage campaign that uses custom-developed malware to siphon confidential data out of energy companies around the world. Trojan.Laziok, as the malware has been dubbed, acts as a reconnaissance tool that scours infected computers for data including machine name, installed software, RAM size, hard disk size, GPU details, CPU details, and installed antivirus software, according to researchers from security firm Symantec. The attackers then use the data to decide how to infect the computer with additional malware, including versions of Backdoor.Cyberat and Trojan.Zbot that are tailored for a specific compromised computer.

"The detailed information enables the attacker to make crucial decisions about how to proceed further with the attack, or to halt the attack," Symantec researcher Christian Tripputi wrote. "During the course of our research, we found that the majority of the targets were linked to the petroleum, gas and helium industries, suggesting that whoever is behind these attacks may have a strategic interest in the affairs of the companies affected." The United Arab Emirates was the country most targeted by the attackers, followed by Saudi Arabia, Pakistan, and Kuwait.

Judge rejects AT&T claim that FTC can’t stop unlimited data throttling

Judge Edward Chen of US District Court in Northern California has rejected AT&T's claim that it can't be sued by the Federal Trade Commission, which is trying to put a stop to the carrier's throttling of unlimited data plans. The FTC sued AT&T in October 2014, saying the company deceived customers by offering unlimited data plans and then throttling data speeds once customers hit certain usage thresholds, such as 3GB or 5GB in a month. AT&T claimed in January that because it is a common carrier, it isn't subject to FTC jurisdiction.

It's true that the FTC Act exempts common carriers from the commission's oversight. But while AT&T is a common carrier for landline telephone and mobile voice service, the mobile data services at issue were not classified as common carriage at the time the lawsuit was filed. AT&T argued that it is exempt from FTC oversight "even when it is providing services other than common carriage services," Chen wrote. "Contrary to what AT&T argues, the common carrier exception applies only where the entity has the status of common carrier and is actually engaging in common carrier activity," Chen wrote.

The Federal Communications Commission ultimately did reclassify mobile data as a common carrier service in February, a decision that takes effect 60 days after publication in the Federal Register, which hasn't happened yet. AT&T argued that this decision also strips the FTC of jurisdiction over AT&T, even for violations that occurred before the reclassification, an argument Chen rejected. "When this suit was filed, AT&T’s mobile data service was not regulated as common carrier activity by the Federal Communications Commission," Chen wrote. "Once the Reclassification Order of the Federal Communications Commission (which now treats mobile data serve as common carrier activity) goes into effect, that will not deprive the FTC of any jurisdiction over past alleged misconduct as asserted in this pending action."

US Smartphone Use in 2015

Today nearly two-thirds of Americans own a smartphone, and 19 percent of Americans rely to some degree on a smartphone for accessing online services and information and for staying connected to the world around them -- either because they lack broadband at home, or because they have few options for online access other than their cell phone. Indeed, 7 percent of Americans own a smartphone but have neither traditional broadband service at home, nor easily available alternatives for going online other than their cell phone. This report documents the unique circumstances of this “smartphone-dependent” population, and also explores the ways in which smartphone owners use their phones to engage in a wide range of activities.

Certain groups of Americans rely on smartphones for online access at elevated levels, in particular:

Younger adults -- 15 percent of Americans ages 18-29 are heavily dependent on a smartphone for online access.
Those with low household incomes and levels of educational attainment -- Some 13 percent of Americans with an annual household income of less than $30,000 per year are smartphone-dependent. Just 1 percent of Americans from households earning more than $75,000 per year rely on their smartphones to a similar degree for online access.
Non-whites -- 12 percent of African Americans and 13 percent of Latinos are smartphone-dependent, compared with 4 percent of whites.

FCC Provides Guidance to Telecom Carriers on Process to Elect USAC to Perform Lifeline Recertification

The Wireline Competition Bureau of the Federal Communications Commission provides guidance regarding the process for eligible telecommunications carriers (ETCs) to elect the Universal Service Administrative Company to perform Lifeline recertification for their subscribers in 2015. Starting in 2015, USAC will provide ETCs with an opportunity to update consumer addresses 45 days prior to USAC's recertification attempts. Second, USAC will provide sufficient notice to consumers if they are going to be de-enrolled from Lifeline for a failure to recertify prior to de-enrollment by an ETC. Finally, ETCs choosing USAC for recertification may limit the Study Area Codes (SACs) for which USAC performs recertification.

Europe’s Digital Single Mistake

[Commentary] Brussels has long used antitrust cases to achieve policy outcomes it can’t achieve otherwise, and so it is with the European Commission’s new plan to create a “digital single market,” or DSM. Competition Commissioner Margrethe Vestager announced that she will conduct a wide-ranging inquiry into why cross-border e-commerce isn’t more common in the single market. In her telling, around half of Europeans shopped online in 2014 but only 15 percent bought something online from a seller in another European Union state. The supposed culprit is the practice of “geo-blocking,” in which firms set different prices, or make products unavailable entirely, for consumers in different countries or regions. Likely targets of the inquiry include Netflix and Amazon. Europe’s digital strategy needs more “market” and less bureaucrat-imposed “single.” The sooner Brussels figures that out, the sooner regulators will stand aside and start allowing Europe’s online economy to flourish.

Classic TV shows get new life on digital airwaves

When cable TV was growing in the 1980s and '90s, many of its programs were past hits from the lineups of ABC, CBS and NBC. "The Andy Griffith Show" was the top show on Turner Broadcasting's TBS. Viacom made classic TV a big business by packaging series from the 1950s, '60s and '70s on Nickelodeon's Nick at Nite, which later spawned TV Land. But many cable networks abandoned classic TV shows once the baby boomers who watched them moved out of the 18-to-49 age group that advertisers covet most. That's created an opening for multicast TV networks -- the channels that viewers can watch over the air for free with a digital antenna -- to come to their rescue.

Unplug your cable system and find MeTV, which stands for Memorable Entertainment Television. The network airs hits such as "M*A*S*H," "Bonanza" and "Star Trek," and averages about 521,000 viewers in daytime -- higher than all but nine national cable networks. From 5 to 11 p.m., MeTV ranked 20th with 667,000 viewers compared with those networks. Other media companies have also turned to classic TV as a low-cost programming solution for multicast channels, which now reportedly take in more than $250 million a year in ad revenue.

Broadcasters Challenge FCC Auction Pricing

Just how much broadcasters will earn from selling their spectrum in the Federal Communications Commission incentive auction in 2016 will depend largely on the rules the agency adopts for it. Recognizing that fact, the National Association of Broadcasters and other broadcasters have been active in the FCC rule-writing proceeding, arguing for changes that could add billions of dollars to the bottom lines of broadcasters that opt to sell. At the top of the broadcast industry’s hit list is the FCC's dynamic reserve pricing plan, which broadcasters believe will depress spectrum prices. At the same time, broadcasters are pushing for higher opening bids, figuring the higher they are, the higher the final take for broadcasters will be. However, broadcasters are not unified on how best to do that.

More Schools Connect To ‘Xfinity On Campus’

Comcast has signed up three more schools -- Regis College, Dartmouth College and California State University, Chico -- for Xfinity On Campus, a multiscreen, IP-based video service that’s designed for college students and offered on Web browsers, tablets and smartphones. Comcast has not commented on the deployment status for Xfinity on Campus for those three schools, but those partnerships build on the multiple-system operator's existing deployments with Bridgewater College, Emerson College, Lasell College, Drexel University, Massachusetts Institute of Technology, Northwestern University, the University of Delaware, and the University of New Hampshire.

The IP-based platform is powered by Comcast’s cloud-based X1 platform, offering a mix of linear TV, VOD, premium channels, and sports package via the partner school’s managed campus WiFi network. Students access it by logging in on Web browsers or the Xfinity On Campus app for iOS and Android devices. Comcast has also begun to extend support to several TV Everywhere apps, including WatchESPN, via its campus-tailored platform. Comcast has said it intends to pair the Xfinity On Campus with its new cloud DVR service as it extends that capability into additional regions.

Moody’s: Stations To Get Election Year Boost

Local broadcasters are expected to see slow growth in core ad sales, but will see a record-setting boom in political spending during the 2016 campaign, according to a new report from Moody’s Investors Service. Moody’s projects ad revenue from the auto, retail and service categories to increase by 0.5 percent to 2.5 percent for the rest of 2015. That will leave total revenue down 6 percent to 9 percent from 2014, an Olympics and election year. “During election years, political advertising can account for 10 percent to 20 percent of a broadcaster’s revenue, depending on how many stations are in election battlegrounds,” said Moody’s VP Carl Salas. “Many broadcasters anticipate record-setting campaign spending and political advertising revenue in the upcoming 2016 election season.” The core ad gains reflect improving consumer sentiment and economic growth.

Benton

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