October 2015

Millions of Facebook users have no idea they’re using the Internet

It was in Indonesia three years ago that Helani Galpaya first noticed the anomaly. Indonesians surveyed by Galpaya told her that they didn’t use the Internet. But in focus groups, they would talk enthusiastically about how much time they spent on Facebook. Galpaya, a researcher (and now CEO) with LIRNEasia, a think tank, called Rohan Samarajiva, her boss at the time, to tell him what she had discovered. “It seemed that in their minds, the Internet did not exist; only Facebook,” he concluded.

Since at least 2013, Facebook has been making noises about connecting the entire world to the Internet. But even Sheryl Sandberg, Facebook’s operations head, admits that there are Facebook users who don’t know they’re on the Internet. So is Facebook succeeding in its goal if the people it is connecting have no idea they are using the internet? And what does it mean if masses of first-time adopters come online not via the open web, but the closed, proprietary network where they must play by Facebook CEO Mark Zuckerberg’s rules? This is more than a matter of semantics. The expectations and behaviors of the next billion people to come online will have profound effects on how the Internet evolves. If the majority of the world’s online population spends time on Facebook, then policymakers, businesses, startups, developers, nonprofits, publishers, and anyone else interested in communicating with them will also, if they are to be effective, go to Facebook. That means they, too, must then play by the rules of one company. And that has implications for us all.

Cox, Cable One charge ahead with all-digital deployment plans

Cox Communications and Cable One continue to charge ahead with all-digital conversions in Midwest and Southern regional markets. Cable One has already told customers in its South Mississippi region that they will need new digital boxes to continue to receive signals. This is part of a plan by the Phoenix (AZ)-based company to spend $28 million over the next five years to upgrade network infrastructure for its Gulf Coast systems. The company wants to complete the digital upgrade by mid-March. Cable One is providing two free digital set-tops for each customer and charging $5 for each additional box.

Senators Seek Answers on Data Breach From T-Mobile, Experian

The Ranking Members from three Senate committees are pulling rank on T-Mobile and Experian in the wake of a data breach at Experian that may have exposed the Social Security numbers of up to 15 million T-Mobile customers. In a letter to the CEO's of both companies, Senate Commerce Committee Ranking Member Bill Nelson (D-FL), Consumer Protection Subcommittee Ranking Member Richard Blumenthal (D-CT), and Senate Communications Subcommittee Ranking Member Brian Schatz (D-HI) said they wanted answers about what happened and what the companies are doing to address the security breach.

They used the letter as an opportunity to push for cybersecurity legislation. “We have been advocates for data security and breach notification legislation that would better protect consumers and improve corporate responsibility,” the Senators said in announcing the request from the companies. “Experian and T-Mobile’s recent incident demonstrates the need for legislation that addresses both consumer notification and sets minimum security requirements for companies that collect and store such sensitive consumer data.” They said they expected detailed information on how such a breach occurred.

Android adware wields potent root exploits to gain permanent foothold

Researchers have uncovered yet another Android-based adware campaign targeting people who download what they believe are trusted titles from websites and other third-party app stores. The apps use repackaged icons to disguise themselves as popular titles and are offered for download through pop-up ads on visited websites and in-app promotions, according to researchers from security firm FireEye.

Once installed, the apps exploit as many as eight separate Android vulnerabilities that allow the apps to gain deep root access privileges. From there, the apps launch code libraries mimicking legitimate Android services to gain a permanent foothold on infected phones. The FireEye blog post is another reminder of the threats that come from Android apps available in third-party app stores. No doubt, Google's security vetting of apps is by no means perfect, but it does offer a level of protection that's generally not available elsewhere. Android users should make use of it whenever possible and remain highly suspicious of other sources.

How Max Schrems Scored an Own Goal by Toppling Safe Harbor

[Commentary] Max Schrems may have won a victory in relation to Safe Harbor but he has lost the war as, presumably, he has still consented to Facebook's standard terms, which allow the continued transfer of his data to the US. Unwittingly, Max Schrems may actually have worsened the position for consumers who will now find business-to-consumer (B2C) companies relying more heavily on consumer consent for data transfers to the US.

We may not see pop up boxes explicitly stating, “I consent to Facebook transferring my data to the US and sharing it with the NSA,” but deploying annoying pop-up boxes to gain consent for data transfer is an easy option for B2C companies looking for grounds to transfer data. Once consent has been obtained, the data controller need not consider tiresome issues such as putting in place protocols to protect EU data stored in the US or providing a right of redress for EU individuals in the courts. The consumer has simply traded their EU privacy rights for a product. How is this possibly a better deal for consumers?

[Nicola Regan (McKilligan) is senior partner with the Privacy Partnership in London]

The NY Times Co Outlines Strategy to Double Digital Revenue

The New York Times Company released a strategy memo to its staff on Oct 7 outlining an ambitious plan to double digital revenue to $800 million in 2020 from $400 million in 2014, in part through a focus on increasing subscriptions and engagement with its most loyal readers. The memo, which was signed by the company’s chief executive, Mark Thompson, and the executive editor of The Times, Dean Baquet, is based on the findings of an executive committee that met over the summer.

Outlining a strategy that includes a shift away from platforms and departments and more toward the reader, the memo concludes, “What’s needed adds up to a transformation of the company.” It comes as the Times Company, like most other publishers, faces a complex and shifting industry, with precipitous declines in high-margin print advertising, which was long the bedrock of the newspaper business model. The company has been seeking to increase digital and other revenue to compensate, most notably through charging readers to subscribe online.

Huffington Post Workers Plan to Unionize

The editorial staff of The Huffington Post, the news and aggregation site that recently celebrated its 10th anniversary, plans to unionize, joining a number of digital publications that have made similar moves in recent months. The workers will join Writers Guild of America, East, which announced the move on Oct 7.

“The creative freedom we enjoy is one of the things that makes HuffPost a great place to work,” the Huffington Post organizing committee wrote in a statement. “We believe organizing is the best way both to preserve what’s already working and to bring about positive change.” The committee added, “Simply, a union will give us a voice in our newsroom’s future.” In its statement, the committee listed reasons for unionizing, including better pay, clarifying job responsibilities and changing the hiring process, which it called “lengthy” and “highly subjective.” The committee also said it wanted a union to push for more diversity on the staff.