Wall Street Journal

Comcast to Encrypt Email for Security

Google wants to make encryption hip -- and may have won a quick convert. Comcast, the nation's largest Internet provider by number of homes and businesses served, said it would begin scrambling customers' email to protect it from prying eyes.

The move came just hours after Google called out email providers, including Comcast, for not using encryption.

Comcast spokesman Charlie Douglas said the company is testing encryption and would begin using it more broadly on customers' email "within a matter of weeks." He said Comcast is "very aggressive about this."

The moves were an indication that some tech companies see privacy as a consumer issue after a year of leaks from Edward Snowden, the former National Security Agency contractor. Snowden's leaks prompted Facebook, Microsoft and Yahoo among others, to make it harder for government spies to read emails as they cross the Internet's backbone.

US Goes Back to Publishers on Prices

Two years after three major book publishers settled a major civil antitrust lawsuit with the federal government, the Justice Department has gone back to the publishers asking about any recent pricing discussions they may have had with others in the industry, say people familiar with the situation.

The inquiries, made in recent weeks by letter to Lagardere SCA's Hachette Book Group, CBS's Simon & Schuster and News Corp's HarperCollins Publishers, have created anxiety in the publishing industry.

The inquiries reopened a sensitive and costly issue that publishers thought they had resolved, and raised the possibility of additional constraints on how they do business. The department's latest move comes as Amazon is dominating sales of both print books online and e-books in large part through its discounting strategy.

The first of the publishers to renegotiate contract terms is Hachette, which is currently caught up in a bitter dispute with Amazon.com Inc. over e-book terms. As a result of the dispute, Amazon has delayed shipments of Hachette books and blocked preorders of new titles.

Precise terms being discussed aren't known, although Amazon is seeking a higher split of e-book prices, people familiar with the situation said. The significance of the Justice Department's latest move isn't clear. The inquiries don't necessarily mean any legal action is imminent or even likely, a person familiar with the situation said.

The three publishers the Justice Department has contacted are the ones who first settled the lawsuit. Two other publishers also named in the suit settled later. Apple went to trial, was found guilty of collusion and said it would appeal.

Turkey's Top Court Rules YouTube Ban is Unconstitutional

Turkey's top court ruled that a ban on YouTube is unconstitutional, paving the way to lift the two-month blockade, after the government cut off access to Google's video-sharing website for publishing leaked state secrets just days before critical March elections.

The Constitutional Court in Ankara sided 14-to-2 with individual appeals filed by Google's local attorney, opposition lawmakers and the Union of Turkish Bar Associations, ruling that YouTube's blockade breached freedom of expression, according to a brief decision published on its website.

Judges next will write up their detailed ruling and send it to Turkey's TIB telecommunications watchdog and the Transport, Maritime Affairs and Communications Ministry for implementation, thus lifting the ban.

China Is Projected to Overtake the US in Mobile Revenue

More evidence, if any was needed, that the balance of global mobile telecom power continues to tilt away from the West towards Asia.

China will overtake the US to become the world’s largest mobile phone market by revenue for the first time in 2014, according to a report from Strategy Analytics, a Boston, Massachusetts-based research group.

Mobile phone sales in China will rise 15% to 430 million units in 2014 driven by the country’s rapid shift to 3G and 4G smartphones, and generating a 53% surge in trade -- or wholesale -- revenue to $87 billion in 2014, it forecasts. In contrast, mobile phone sales in the US will flat-line at 163 million units, with revenues up just 4% to $60 billion, it adds. In 2013, both countries recorded almost identical revenue at around $57 billion, reflecting a wide difference in performance. Overall, mobile handset revenues are forecast to grow 13% worldwide during 2014.

Major Asian brands, such as Samsung, Huawei and Lenovo, are aggressively expanding their distribution channels and product ranges across the region to meet strong demand from Chinese consumers for more advanced mobile phones, say analysts. The revenue growth is propelled by a decrease in the ultra-low tier market and an increase in other higher-price range segments.

Google's Settlement with European Union Faces Increased Pressure

Google's proposed settlement with European Union antitrust cops is under increasing threat of being revised or scrapped, amid calls to more tightly regulate the Web giant in the run up to European Parliament elections.

Politicians from France and Germany have in recent days ramped up rhetoric against the settlement with Google, which aims to resolve accusations that the company abuses its dominance in online search to promote its own businesses. Germany's economy minister said the deal should be improved. His French counterpart said that the European Commission -- the bloc's executive arm -- should reject it as it stands.

Behind closed doors, commission officials have suggested to opponents that some elements of the deal -- in which Google has pledged to dedicate space for competitors atop its search results --could be revisited, according to people involved in the discussions. Google officials, for their part, have been holding similar meetings to press their case that their settlement is fair, and tougher than regulators might get by pressing formal antitrust charges, people familiar with those meetings said.

"The offers by Google aren't worthless, but they're not nearly enough," said EU Energy Commissioner Günther Oettinger, among the 28 commissioners who must approve a settlement before it becomes binding. "We don't want to become a digital colony of global Internet giants," said French Economy Minister Arnaud Montebourg said at an event to oppose the antitrust deal. "It is necessary, indeed urgent, to put in place a framework that guarantees a level playing field" for European companies.

Google Rated Top Employer for Pay and Benefits by Glassdoor

Google and three other Silicon Valley companies recently settled a lawsuit alleging that they agreed not to recruit each other’s employees. Maybe Google didn’t need to worry about poaching.

The search giant ranked as the top US employer for compensation and benefits, according to employee ratings compiled by Glassdoor. Facebook ranked third. Overall, 12 tech companies ranked in the top 25.

How much do Google employees make? Glassdoor shared survey results for software engineers at five top tech firms. Those show software engineers at Google have an average base salary of $128,000. Apple software engineers did slightly better, making $132,000. Facebook’s made $120,000 and Microsoft's and Amazon’s made closer to $111,000 and $105,000 respectively. Of course, salary is not those employees’ only compensation: Perks can include stock options or restricted stock, not to mention free lunch.

House Passes Bill Overhauling NSA Phone Program

The US House of Representatives passed a bill overhauling the National Security Agency's heavily criticized telephone-surveillance program -- the first legislative move responding to revelations about the agency's spying by former government contractor Edward Snowden.

The bill, which passed 303-121, would restructure the way the NSA collects and searches Americans' phone records as it investigates terrorism. Instead of collecting millions of Americans' phone records en masse, the NSA will ask phone companies to query their databases for connections to suspicious phone numbers.

The fate of the bill now lies with the Senate, where the measure received a key endorsement from Senate Judiciary Committee Chairman Patrick Leahy (D-VT)). He said his committee will take up the bill next month.

However, the House bill faced last-minute opposition from lawmakers concerned that the measure's language had been revised in a way that would expand the scope of spy agency data searches.

Critics have vowed to pursue a more restrictive version of the provisions in the Senate.

"While far from perfect, this bill is an unambiguous statement of congressional intent to rein in the out-of-control NSA," said Laura Murphy of the American Civil Liberties Union. "We will fight to secure additional improvements in the Senate."

Google Predicts Ads in Odd Spots Like Thermostats

Advertising may be coming to your thermostat and lots of other strange places, courtesy of Google.

In a December letter to the Securities and Exchange Commission, the search giant said that it could be serving ads and other content on “refrigerators, car dashboards, thermostats, glasses, and watches, to name just a few possibilities.”

Google made the statement to help justify why it shouldn’t disclose revenue generated from mobile devices, a figure the SEC had requested and that companies like Facebook and Twitter both disclose.

Google argued that it doesn’t make sense to break out mobile revenue since the definition of mobile will “continue to evolve” as more “smart” devices roll out.

“Our expectation is that users will be using our services and viewing our ads on an increasingly wide diversity of devices in the future,” the company said in the filing.

So, What’s Next for Dish?

Dish Network currently finds itself on the outside looking in amid the deal mania taking place in the cable and telecom industries. AT&T agreed to acquire DirecTV for $49 billion, a deal that follows Comcast Corp's $45 billion agreement in February to buy Time Warner Cable, Sprint has also been forging ahead on a possible bid for T-Mobile US.

Dish, run by Chairman Charlie Ergen, is noticeably absent from those pacts. Analysts say the company, which has amassed valuable wireless airwaves, needs a partner to start putting that spectrum to use. The more that the industry consolidates without Dish getting in on the activity, the fewer options it will ultimately have when trying to make a deal.

“We’d be surprised if Charlie Ergen sat on the sideline for long,” Credit Suisse analyst Joseph Mastrogiovanni, wrote in a note. “This deal could be a catalyst that causes Dish to act sooner rather than later.”

Ergen has said that Dish wouldn’t compete for DirecTV because the price would be too high, but Mastrogiovanni said he doesn’t necessarily believe him. “We believe he could get involved,” Mastrogiovanni wrote. “If nothing else, a higher bid would force the price up on AT&T.” Still others said regulatory hurdles to such a transaction would be far harder for Dish to clear than AT&T.

SoftBank Calls Off Asset Reshuffle

SoftBank halted plans to shuffle its Japanese assets, canceling a move that would have resulted in an extra ¥450 billion ($4.4 billion) in the Internet and telecom firm's war chest for acquisitions.

Japan representatives said the company changed its mind after studying the challenges in operating its own network and setting pricing plans. Now all the parties say the deal has been scrapped.

Some investors said they were troubled by corporate-governance issues in the now-abandoned deal. SoftBank was an early investor in Yahoo of the US and retains a small stake in the US firm, which in turn owns 35.5% of Yahoo Japan. In Japan, SoftBank operates one of the big three mobile-phone carriers and owns eAccess, the No. 4 player that specializes in data plans.