March 2016

American Cable Association: Net neutrality rules for Netflix! (But not for us)

Since Netflix's admission that it throttles video on most mobile networks to help customers avoid data cap overage charges, Internet service providers and anti-network neutrality think tanks have been blasting the online video provider. Netflix is a hypocrite because it throttles its own video streams even as it supports net neutrality rules that prevent ISPs from throttling traffic that passes over their networks, they claim. Even AT&T, which has throttled its own unlimited data users for years and tried to avoid any punishment for doing so, said it is "outraged" by Netflix's actions. While most ISPs want the elimination of the Federal Communications Commission's net neutrality rules, they generally are not demanding that new rules be applied to Netflix. But there is an exception.

The American Cable Association, a cable lobby group that represents more than 900 small and medium-sized companies, has called on the FCC to consider writing new rules that apply to Netflix and similar online content providers ("edge providers" in industry parlance). The FCC's "approach to Net Neutrality is horribly one-sided and unfair because it leaves consumers unprotected from the actions of edge providers that block and throttle lawful traffic," the ACA said. Netflix's confession of throttling provides "further evidence" that consumers are being harmed, the group claimed.

Privacy and Civil Liberties Oversight Board Chair Resigning

The first-ever head of a small federal privacy watchdog is resigning this summer, a year and a half before his term ends in 2018. The surprise announcement from David Medine, chairman of the Privacy and Civil Liberties Oversight Board (PCLOB), will leave a hole at the top of the five-member board, which has been instrumental to shining a light on the National Security Agency (NSA).

President Barack Obama said that Medine’s tenure took place “during an especially momentous period, coinciding with a concerted examination of our national security tools and policies to ensure they are consistent with my administration's commitment to civil liberties and individual privacy. “Under David's leadership, the PCLOB's thoughtful analysis and considered input has consistently informed my decision-making and that of my team, and our country is better off because of it,” President Obama added. The privacy board has served as a crucial tool for critics of the NSA’s expansive surveillance powers in the years since former NSA contractor Edward Snowden’s 2013 leaks about the agency. Medine came to the PCLOB after stints at the Securities and Exchange Commission and the Consumer Financial Protection Bureau. He had also worked in the White House’s National Economic Council, the Federal Trade Commission and the law firm WilmerHale. His resignation will take effect July 1. The privacy board said that Medine will leave his post to work at a development organization focusing on data privacy and consumer protection issues for people in developing countries. Medine said that he will continue his work on the board until he leaves office. It's unclear whether the executive order analysis will be finished by the time he leaves.

Why hackers are going after health-care providers

Here's what you need to know about how health-care providers became the latest digital battleground. Why would cybercriminals go after the health-care industry? The health-care sector has a lot of information that could be valuable to criminals and that makes them a juicy target. They often have a bunch of personal information that could be use for traditional financial fraud -- things like your name, social security number, and payment information. But they also have health insurance information, which can be sold for even more on online black markets because it can be used to commit medical fraud -- things like obtaining free medical care or purchasing expensive medical equipment -- that often isn't caught quite as quickly as credit card or bank account fraud.

Just how vulnerable is the health-care sector to cyberattacks? Things aren't looking good. According to cybersecurity firm TrendMicro, health care was the sector that was hit hardest by data breaches from 2010 through 2015. Not all of those breaches involved hacks -- two-thirds were actually due to the loss or theft of things like laptops, smartphones, or thumb drives -- but it still demonstrates a major problem with the way the industry approaches keeping data safe.

Why Technological Innovation Relies on Government Support

[Commentary] Andy Grove, the Silicon Valley pioneer who died recently at age 79, was many things: a survivor of the Nazi occupation of Hungary and refugee of Cold War Eastern Europe, a keen scientific thinker with a Ph.D. in chemical engineering, an innovator who became CEO of Intel, and a bestselling management theorist. Yet the side of Grove’s success that has received scant notice—even though Grove himself repeatedly acknowledged it—is the huge debt that he and the industry he led owed to US public policy.

Grove came to the United States just as massive federal investments were transforming the nation into the world’s scientific superpower. He then flourished at two public institutions, City College of New York and the University of California Berkeley, that were part of a spectacular post-war expansion of higher education. These enormous public investments both promoted fundamental research and educated a new generation of innovators who could exploit that expanding knowledge. In the wake of Grove’s death, observes Wired, “The tech industry has come together to mourn the loss of Andy Grove,” as well it should. Yet in addition to celebrating Grove’s many achievements, the industry should also be celebrating the farsighted policies that helped make those achievements possible—policies that are now not just widely forgotten but under broad assault. Even more important, the industry and its allies should see in Grove’s remarkable life an inspiration for reviving the active government role in the knowledge economy on which future Andy Groves—and American prosperity more broadly—depend.

[Jacob S. Hacker is a professor of political science at Yale University. Paul Pierson is a professor of political science at the University of California, Berkeley]

Expand Lifeline, But Keep Consumer Choice

[Commentary] The Federal Communications Commission (FCC) is nearing a historic vote to expand the Lifeline program, which subsidizes communications for low-income Americans. After the rules go into place, recipients will be able to put the $9.25-per-month subsidy towards broadband Internet access instead of the voice telephone service the program originally supported. ITIF would like to join the chorus of others to reiterate our concerns with the rules as previewed by the FCC.

A primary concern is the Commission’s plan to institute a minimum standard of service that companies must offer to qualify as part of the program. Specifically, the FCC appears intent on requiring a certain level of broadband speed (10 Mbps for downloads and 1 Mbps for uploads), as well as other requirements around data caps, voice minutes, etc. There are two main concerns motivating the Commission’s lean towards minimum standards. First, many want to ensure Lifeline recipients are not “left behind” with substandard Internet service. Such standards will disproportionately hurt rural recipients, where low population density makes high-speed networks uneconomical. Instead of setting paternalistic up-front standards for what service should look like, the FCC should encourage as many carriers to participate as possible, maximize consumers’ flexibility in choosing supported services, and rely on competition to drive improvements to offerings over time. A second possible motivation for minimum standards is somewhat subtler: Minimum standards could act as a roundabout control on the program’s budget. If the minimum standard is such that broadband service would cost more than $9.25, it would require participants to contribute some personal funds before being able to connect, which would help rein in spending.

The tech industry wants to use women’s voices – they just won't listen to them

[Commentary] The voices of women – and their creators’ ingrained concepts of modern womanhood – are leading the AI frontier. But we have no reason to believe that the male-dominated technology industry understands us at all. Siri and her cohort, for example, know how to respond to health crises such as suicidality but do not know what rape is. These robot women have no answer for questions about domestic violence, like a community of real women would. Siri’s makers had apparently not thought about emergencies primarily relevant to women. In fact, Siri even insists she has no gender – but women’s speech is more than just voice sound – it purportedly involves word choices, too. They conditioned a woman and then attempted to neutralize her. The industry wants to use women’s voices but still has no plans to actually listen to them.

If empathy is core to the future of artificial intelligence, worry not – the Singularity is still quite a way off, no matter how many terrifying Holocaust-denying, racist, anti-feminist white millennial-bots Microsoft “accidentally” spawns.

Justice Department to withdraw legal action against Apple

The Justice Department is expected to withdraw from its legal action against Apple, as soon as March 28, as an outside method to bypass the locking function of a San Bernardino (CA) terrorist’s phone has proved successful, a federal law enforcement official said. The official, who is not authorized to comment publicly, said the method brought to the FBI earlier in March by an unidentified entity allows investigators to crack the security function without erasing contents of the iPhone used by Syed Farook, who with his wife, Tashfeen Malik, carried out the December mass shooting that left 14 dead. March 28's withdrawal would culminate six weeks of building tensions.

The foes were poised to exchange legal body blows in a court room in Riverside (CA) during the week of March 21 before the Justice Department belatedly asked for — and was granted — a postponement. Since a federal magistrate in California in mid-February ordered the company to assist the FBI in gaining access to San Bernardino terrorist Syed Farook's seized iPhone, the legal filings and rhetoric between the world’s most valuable technology company and one of the largest crime-fighting organizations in the world had sharpened into verbal vitriol.