February 2016

Apple lawyer says helping FBI break into iPhone will lead to more crime

As Apple prepares to move its encryption battle with the Federal Bureau of Investigation from the courts to the halls of Congress, its chief lawyer is arguing that unlocking the iPhone used by a San Bernardino (CA) terrorist will ultimately create more crime than it prevents. Bruce Sewell, Apple’s general counsel, will warn legislators on the House Judiciary Committee that the Feb 16 court order on Apple to help the FBI break into the iPhone will create a digital vulnerability that jeopardises another US government imperative: cybersecurity.

“Hackers and cyber criminals could use this to wreak havoc on our privacy and personal safety,” Sewell will tell the House panel at a hotly anticipated hearing on March 1, according to prepared remarks the company has released. “Some of you might have an iPhone in your pocket right now, and if you think about it, there’s probably more information stored on that iPhone than a thief could steal by breaking into your house,” Sewell will testify. Sewell’s testimony will follow that of James Comey, the director of the FBI who has since 2014 publicly warned that thorough mobile encryption will jeopardise law enforcement.

The technology at the heart of the Apple-FBI debate, explained

[Commentary] What if the FBI could force Samsung to covertly turn on the video camera in your smart TV? Or force Google to deliver a malicious security update to your web browser which actually spied on you and transmitted your passwords and other sensitive information back to the FBI? Sound like something from a dystopian sci-fi movie? If Apple loses its high-profile legal fight with the US government, these scenarios could become a reality. This will also threaten the security of all Internet users.

Earlier in Feb, the American public learned that the Department of Justice had sought and obtained a court order forcing Apple to help it hack into the iPhone of Syed Rizwan Farook, one of the San Bernardino (CA) shooters. The court ordered Apple to create a new, special version of Apple’s iOS operating system that bypasses several security features built into the company’s operating system. The court also ordered Apple to sign the custom version of the software. Without this digital signature certifying the software’s authenticity, the iPhone would refuse to run it. Experts fear that the precedent that the government is seeking in this case - to be able to force Apple to sign code for the government - could allow the government to force other technology companies to sign surveillance software and then push it to individual users’ devices, using the automatic update mechanisms that regularly look for and download new software.

[Christopher Soghoian is the Principal Technologist with the Speech, Privacy & Technology Project at the American Civil Liberties Union.]

Working Paper: Online Privacy and ISPs

This Working Paper provides a detailed, factual description of today’s online ecosystem for the United States, with attention to user privacy and the data collected about individual users. The Working Paper addresses a widely-held, but mistaken view about Internet Service Providers (ISPs) and privacy. That view asserts that ISPs have comprehensive and unique access to, and knowledge about, users’ online activity because ISPs operate the last mile of the network connecting end users to the Internet. Some have cited this view to suggest that ISPs' collection and use of their customers’ online data may justify heightened privacy restrictions on ISPs. This Working Paper takes no position on what rules should apply to ISPs and other players in the Internet ecosystem going forward. But public policy should be consistent and based on an up-to-date and accurate understanding of the facts of this ecosystem.

The Working Paper addresses two fundamental points. First, ISP access to user data is not comprehensive – technological developments place substantial limits on ISPs’ visibility. Second, ISP access to user data is not unique – other companies often have access to more information and a wider range of user information than ISPs. In summary, based on a factual analysis of today’s Internet ecosystem in the United States, ISPs have neither comprehensive nor unique access to information about users’ online activity. Rather, the most commercially valuable information about online users, which can be used for targeted advertising and other purposes, is coming from other contexts. Market leaders are combining these contexts for insight into a wide range of activity on each device and across devices.

FCC Commissioner Pai Is Dead Wrong on Investment and Net Neutrality

[Commentary] In a speech on Feb 26, Commissioner Ajit Pai of the Federal Communications Commission claimed that investment by larger Internet service providers had “flatlined” since the agency passed its Open Internet Order protecting Network Neutrality in February 2015. Commissioner Pai cited an industry-funded economist’s tweet to support his claim. The tweet draws on selective data that excludes certain investments from the actual total reported by the companies in their regulatory filings. To show actual investment numbers, Free Press released analysis demonstrating that broadband-industry capital expenditures increased in 2015. Free Press’ analysis is based on a thorough review of these companies’ public statements as well as their quarterly and annual reports to the Securities and Exchange Commission.

Free Press Research Director S. Derek Turner made the following statement: “The broadband industry’s apocalyptic predictions about how the adoption of enforceable Net Neutrality rules would destroy the market have failed to materialize in the year since the FCC’s historic vote. Network investment is up. Revenues and profits are higher. And subscriber growth continues at a high level even as prices rise and the market nears saturation...Despite these facts, certain dead-enders like FCC Commissioner Ajit Pai are still peddling the false claim that broadband investment has flatlined and are still blaming the FCC’s Net Neutrality rules for this imaginary result."

Oregon created a tax break for Google Fiber – but Comcast may be the big winner

Comcast has created a new class of hyper-fast Internet service it acknowledges almost nobody needs. And it charges a price few would pay. What the new "Gigabit Pro" service does accomplish, according to Comcast, is make the company eligible for millions of dollars in state tax breaks. Those exemptions were written in 2015 with Google Fiber in mind, for companies that bring very fast Internet service to Oregon. Comcast argues it qualifies, too, by virtue of its obscure new service. Oregon cities are crying foul, but the staff of the Oregon Public Utility Commission says Comcast meets the letter of the broadly written law – even if hardly anyone signs up for a service critics say would cost subscribers $4,600 in the first year alone. State utility regulators will vote on Comcast's application March 1, with "tens of millions" of dollars on the line, according to local government officials who hope to block the company's pending tax break and preserve a revenue stream they fought for years to keep.

Robert Reich Gets Broadband Wrong

[Commentary] Robert Reich's new book "Saving Capitalism" reads like the last message in a game of telephone on the topic of broadband policy. He starts with distorted perceptions of the US broadband market — the endnotes confirm the role of Harvard professor Susan Crawford, who stridently opposes for-profit broadband, in Reich's thinking — and then twists them even more to promote his campaign for a Bernie Sanders-esque "democratic socialism."

Let's start with broadband speed and prices. Crawford argued in "Captive Audience" — a tract advocating government-owned broadband networks — that US speeds ranked only the 22nd-fastest in the world, and that our prices were among the highest. We were actually in the top 10 for speed, and in fact our lower-end services were among the world's most affordable. But when Reich takes his turn in the game of telephone, he goes even further, lamenting that "the United States ha[s] some of the highest broadband prices among advanced nations, and the slowest speeds." This simply isn't true.

[Doug Brake is a telecommunications policy analyst at the Information Technology and Innovation Foundation]

AT&T Fiber Ready Designation Targets Economic Development in Georgia

AT&T launched a new AT&T Fiber Ready designation in partnership with Georgia Gov Nathan Deal (R-GA) and the state legislature. It’s the latest example of how governments across the country have latched on to high-speed fiber network connectivity as a means of promoting investment and economic development. It’s thought that commercial property owners awarded the designation can use it in marketing campaigns to attract tenants, thereby boosting the local economy. “Working with Governor Deal, the members of the General Assembly have worked to keep Georgia’s economy moving forward,” Speaker of the Georgia House of Representatives David Ralston (R-Blue Ridge) said. “As we implement pro-business policies to drive investment and create jobs, it is great to have the private sector develop additional tools – like the AT&T Fiber Ready designation – that can further help to attract employers to communities across the state.”

Diversity in Television: An FCC Principle Now Being Reconsidered

[Commentary] A founding principle of the Federal Communications Commission (FCC) is protecting the public interest in communications - in television, radio, internet and new emerging mediums. In a country of increasing diversity, the public interest is not a "one size fits all" proposition. In the United States of 2016, the public interest must serve a Spanish-speaking mother in Los Angeles as well as it serves a rural rancher in South Dakota or a millennial urbanite in Brooklyn. As an industry, broadcast television has long served the largest number of Americans with its mass, free, over-the-air broadcasts. For this reason, Media Alliance finds it troubling that the FCC's current re-examination of the rules for exclusivity may jeopardize local broadcast television as it exists today.

The Commission is in the process of reexamining rules which allow broadcasters to negotiate the terms of use for broadcast content to be disseminated to cable providers. The current exclusivity rules preserve diversity in broadcast programming. And while there is nowhere near enough diversity, taking actions to further reduce it in order to increase profit levels for cable providers is not in the public interest. We believe that the current exclusivity rules should be preserved by the FCC. Any change to these regulations is a win for Big Cable and a terrible loss for small broadcasters across the country and the local communities in which they serve. The "public interest" that the FCC must protect includes Americans who have affordability challenges with pay TV and high-speed broadband access and the FCC must recognize this when considering how it should act on this important issue.

[Tracy Rosenberg is the Executive Director of Media Alliance, based in Northern California]