Benton RSS Feed
Get ready for international Internet regulation; top leaders from the US, UK, and France are making increasingly public statements about their plans to draft new rules that will make the 'Net more secure and will crack down on copyright infringers.
On May 25, as President Obama wrapped up a UK visit with Prime Minister David Cameron, the two issued a joint statement on the Internet calling for "rules of the road" in cyberspace. Both singled out the London International Cyber Conference as a key event at which "consensus" would be sought on such rules. Both sides are deadly serious about policing the Internet. In October 2010, the UK issued the most recent draft of its National Security Strategy — and "cyber attack" was the second most pressing security risk faced by the country after terrorism. In May 2011, the US issued a cybersecurity policy document of its own which threatened even military retaliation. "When warranted, the United States will respond to hostile acts in cyberspace as we would any other threat to our country," said the document. This is music to the ears of French President Nicolas Sarkozy, who for years has called for a "civilized Internet." Sarkozy had a world platform for his ideas when he pushed the creation of the e-G8 conference last month in Paris, which took place just before a major G8 summit in the French resort of Deauville.
Inside the US-Anglo-French plan to civilize the Internet
AT&T is lining up support for its acquisition of T-Mobile from a slew of liberal groups with no obvious interest in telecom deals -- except that they've received big piles of AT&T’s cash.
In recent weeks, the NAACP, the Gay & Lesbian Alliance Against Defamation and the National Education Association have each issued public statements in support of the deal. The groups all say their public positions have nothing to do with the money they received from AT&T. And AT&T says it supports nonprofit groups because it’s the right thing to do — and not because of any quid pro quo. “For decades, AT&T has proudly supported numerous diverse groups and organizations,” a company spokesperson said. But not everyone’s buying it.
“The money that nonprofits receive from their corporate sponsors sticks not only in their bank accounts but in their minds,” Ellen Miller, executive director of the Sunlight Foundation, a nonprofit dedicated to government transparency, said. “This is what I think of as deep lobbying — there is an expectation that when push comes to shove, these groups will come out in favor of their benefactors.” AT&T’s corporate giving arm, the AT&T Foundation, doled out $62 million in 2009 to support a variety of arts and education programs, charities and organizations. Jim Cicconi, AT&T’s senior vice president and top lobbyist, chairs the foundation. AT&T’s record of corporate giving is widely touted by recipients, many of whom cite the company’s extensive record on promoting minorities, women, schools and the arts. But some public interest groups question whether the company is cashing in on its status as one of the country’s biggest corporate donors.
AT&T has assembled a platoon of more than 72 outside lawyers and consultants to work the FCC and Justice Department on the deal. And it’s brought on public relations agencies and other consultants to craft a message that the merger is more about spreading wireless broadband to underserved populations across America than about enriching the company’s shareholders. To build support, AT&T employees and consultants have been making personal visits and calls as well as holding luncheons. Out of about a dozen supporters interviewed by POLITICO, the vast majority said they decided to issue a statement supporting the AT&T/T-Mobile deal after being approached this way. The company has put much of its efforts into winning support from left-leaning groups like labor unions, environmentalists and minorities. Support from these groups may give pause to Washington Democrats who might otherwise rail against wireless industry consolidation.
AT&T gave cash to merger backers
In a split vote, state regulators decided to scrutinize AT&T's proposed $39-billion purchase of T-Mobile USA to make sure that the deal is good for California's consumers and its economy.
The California Public Utilities Commission's approval marked a major departure from the commission's 16-year policy of taking a hands-off attitude toward the wireless industry. The commission wants detailed information about whether the request to consolidate much of the state's cellphone and wireless broadband business might limit competition, giving control of nearly four-fifths of the market to just two companies — AT&T and Verizon Wireless.
Some of the data will be collected in a series of public hearings to be held in Los Angeles, San Francisco, the Silicon Valley, Orange County and the Central Valley. The 3-2 vote was "a big win for consumers," said Bill Nusbaum, a lawyer with the Utility Reform Network, which advocates for telephone and power utility customers. The majority — three members appointed this year by Democratic Gov. Jerry Brown — also defeated a less stringent alternative proposal by commission President Michael Peevey, who was appointed by former Gov. Gray Davis, a Democrat, and reappointed by former Republican Gov. Arnold Schwarzenegger. Nusbaum said his group was "gratified" that the commission would engage in a "rigorous, data-driven analysis" on the effect the proposed purchase would have on competition, service quality, pricing and other issues.
The findings from the California investigation will be submitted in October to the Federal Communications Commission, which will vote on the deal if the Justice Department clears it of antitrust concerns. But the California investigation will have a bigger mission, said Commissioner Catherine Sandoval, a Santa Clara University law professor and former FCC staff attorney. "Only this body can determine how this measure affects California consumers," she said. "Our analysis will give the public an opportunity to determine if this serves competition and the public interest."
California PUC votes to scrutinize AT&T's proposed purchase of T-Mobile USA
Whoever dreamed up the legend of Faust, the sad tale of the man who traded his soul for unlimited knowledge, could well have been thinking ahead to Facebook and its fascination with China.
What to make of Facebook -- which holds itself up as an icon of openness -- and its flirtation with the largest authoritarian nation on earth? Mark Zuckerberg, CEO of the social-networking behemoth, sees an inevitability to China. "How can you connect the whole world," he asked a group at Stanford in October, "if you leave out a-billion-six people?" And then Zuckerberg hinted at how he'll answer those who worry about compromises Facebook might make to get into China: "I don't want Facebook to be an American company," he said. "I don't want it to be this company that just spreads American values all across the world. ...For example, we have this notion of free speech that we really love and support at Facebook, and that's one of the main things that we're trying to push with openness. But different countries have their different standards around that. ...My view on this is that you want to be really culturally sensitive and understand the way that people actually think."
Soon afterward, Zuckerberg made the rounds of Chinese Internet companies, visiting Baidu and Sina. Facebook continues to explore possible partnerships, and Zuckerberg, who is studying Mandarin, may travel to China again this year.
"This is a train wreck waiting to happen," says a businessman in Beijing familiar with China's Internet legacy. He and others believe Facebook will be allowed into the country, subjected to the same treatment Google and Yahoo received, and then spit out -- its reputation for openness damaged, and its technology metabolized by a China eager to find new ways to spy on its citizens. The potential price for Facebook: its standing in the U.S., its most important advertising market.
Facebook's Test in China: What Price Free Speech?
A new set of government tests showed that LightSquared's proposed mobile broadband network disrupted the signal strength to all GPS devices in the test area, dealing another setback to the company's startup plans.
While all global-positioning system devices tested were affected, the severity of the loss of service varied, said Deane Bunce, co-chair of the National PNT Engineering Forum, a federal advisory group of engineers that oversaw the government tests. Bunce, speaking at a federal government advisory group hearing, said some devices lost signal strength while others were knocked out completely. For example, the government tests found that General Motors Co.'s OnStar system saw a "significant degradation of service" on most receivers tested. The interference concerns of GPS users have become a major problem for LightSquared, a wireless startup. The government tests will increase pressure on the Federal Communications Commission to slow down approval of LightSquared's network.
More Tests Show GPS Interference From LightSquared's Network
The latest threat to the shopping-mall hierarchy is an unlikely one. But Apple is challenging the dominance of department stores. The technology giant isn't branching into clothing or furniture. It is, however, expanding its presence in malls. That is a territory where department stores have long been treated better than other tenants because they attract shoppers.
Often, such so-called anchor tenants pay little or no rent. But Apple has arguably become an equally important attraction, thanks to a consistent string of blockbuster products. Indeed, Apple stores have overtaken many traditional anchors by revenue. In Apple's fiscal year through September, it had sales of $34.1 million per retail store. Macy's much larger stores generated $29 million on average in sales last year, and J.C. Penney, just $16.1 million, estimates Michael Exstein of Credit Suisse. And yet, Apple isn't getting anchor privileges. Steve Sakwa of ISI Group estimates Apple pays $50 to $80 a square foot in annual retail rent. For a store with 6,000 square feet, Apple would pay as much as $480,000 annually. That compares with the $439,000 per leased store that J.C. Penney paid last year, Exstein estimates. Department stores are often 20 times larger than an Apple location. For now, department stores are unlikely to lose anchor status. Landlords are struggling to keep large spaces filled, and many leases last 30 years. The bigger headache may be for landlords who benefit from Apple. Simon Property Group, the country's largest mall owner by revenue, has Apple stores in 20% of its locations, says Cedrik LaChance of Green Street Advisors. Smaller rival Taubman Centers has Apple stores in 65% of its malls, he says.
Apple Upsets the Department-Store Cart
[Commentary] California state Sen. Joe Simitian (D-Palo Alto) has sponsored a bill that would tighten California's existing breach-notification rules to require more detailed disclosure of privacy violations.
The legislation, SB 24, passed the Senate in April and is now under consideration in the Assembly. It's hard to see why anyone would oppose the bill. More than 530 million consumer accounts have been compromised in 2,520 known data breaches since 2005, according to the Privacy Rights Clearinghouse, an advocacy group. The latest breach came to light Thursday when Citigroup said the names, account numbers and email addresses of as many as 200,000 bank customers were accessed by hackers who broke into Citi's online account site. The Citi breach was discovered by the company in early May. Citi has declined to say why it took weeks to notify customers of the incident. "There's nothing more disconcerting than getting a notice that says only, 'Hi, we had a breach and you were affected,'" Sen Simitian said. "Ignorance is not bliss. What you don't know can hurt you."
We have a right to information on data security breaches
The chief of the federal car safety agency served notice that he'll fight unsafe infotainment technology that tries to convert vehicles into smartphones on wheels.
"I'm just putting everyone on notice. A car is not a mobile device," said David Strickland, administrator of the National Highway Traffic Safety Administration. "I'm not in the business of helping people tweet better. I'm not in the business of helping people post on Facebook better." Strickland, speaking at the Telematics Detroit 2011 conference in Novi (MI), acknowledged that there are useful in-car applications that help drivers, dealerships and automakers diagnose mechanical problems and find solutions faster. And he praised navigation systems and automatic notification of emergency responders after accidents as valuable technologies. But there is a difference, he said, between technology that supports a driver or enhances vehicle safety and services that simply distract people from driving safely. "It's OK not to be connected when you're operating a car. I'm not going to dispute that people want these services. They do."
NHTSA chief vows to fight cars becoming smartphones on wheels
The next great battle America faces is likely to involve cyberwarfare, Leon Panetta, the Central Intelligence Agency director, warned senators , predicting that “the next Pearl Harbor that we confront could very well be a cyberattack that cripples" America’s electrical grid and its security and financial systems.
“It’s going to take both defensive measures as well as aggressive measures to deal with that,” said Mr. Panetta, who was appearing before the Senate Armed Services Committee in a confirmation hearing for the post of secretary of defense. Panetta, a consummate Washington insider, is expected to be confirmed easily as the successor to Defense Secretary Robert Gates, but that did not stop him from receiving a tough – if cordial – grilling from lawmakers.
CIA chief Leon Panetta: The next Pearl Harbor could be a cyberattack
Britain could fall further behind with the construction of high-speed mobile broadband networks after O2 claimed that a planned airwaves sell-off would breach state aid rules.
O2, the UK’s second-largest mobile operator by customer number, also claimed regulators could unlawfully discriminate against the company if they proceeded with proposed rules for a radio spectrum auction due early next year. O2 called on Ofcom, the telecoms watchdog, to revise its rules or risk seeing the auction delayed. Consumers and businesses in several industrialized countries, including the US and Japan, are already enjoying the benefits of mobile networks based on fourth generation wireless technology that enables fast web-surfing on smartphones. The prime reason for the UK’s late adoption of 4G networks is a bitter dispute between mobile operators over their spectrum holdings.
O2 warns Ofcom on airwaves sell-off rules