April 2011

House Commerce Committee Questions Mobile Device Companies About Tracking of Phone Users’ Locations

Leaders of the House Commerce Committee sent letters to several developers of mobile device operating systems seeking more information on whether these devices are tracking, storing, and sharing users’ locations and the implications of such tracking for individual privacy and federal communications policy. The letters come on the heels of recent media reports that certain operating systems are tracking and storing information on users’ locations. The letters, which were sent to Apple, Google, Microsoft, Nokia, Research in Motion, and HP, ask about location data that is tracked, used, stored, or shared by mobile device operating systems.

Included in the inquiries are the following questions, along with several others:

  • How is that data accessible and who can access it? Is the data automatically transferred to your company or to other devices, or to third parties? If so, how and why? Is there any other manner in which the data can be transferred to or obtained by your company, or by other devices, or by third parties and, if so, how and why?
  • Is the user informed of, or given an opportunity to prevent, such tracking, use, storing, or sharing of data and, if so, how? Can the end-user disable the tracking, use, storing, and sharing of such data? Can the user delete the data?

What Does Your Phone Know About You? More Than You Think

[Commentary] I plugged my phone into my computer and opened an application called Lantern, a forensics program for investigating iPhones and iPads. Ten minutes later, I'm staring at everything my iPhone knows about me.

About 14,000 text messages, 1,350 words in my personal dictionary, 1,450 Facebook contacts, tens of thousands of locations pings, every website I've ever visited, what locations I've mapped, my emails going back a month, my photos with geolocation data attached and how many times I checked my email on March 24 or any day for that matter. Want to reconstruct a night? Lantern has a time line that combines all my communications and photos in one neat interface. While most of it is invisible during normal operations, there is a record of every single thing I've done with this phone, which also happens to form a pretty good record of my life. Figuring that I've got nothing to hide or steal, I'd always privileged convenience over any privacy and security protocols. Not anymore. Immediately after trying out Lantern, I enabled the iPhone's passcode and set it to erase all data on the phone after 10 failed attempts. This thing remembers more about where I've been and what I've said than I do, and I'm damn sure I don't want it falling into anyone's hands.

Technical Advisory Committee's Advice for the FCC

The Federal Communications Commission created its Technical Advisory Committee last fall and charged the committee with coming up with recommendations to enhance innovation, create jobs and increase competition that the FCC could put in place without requiring a rulemaking. On April 25, the committee released what it calls a “mid-term report” that includes eight recommendations aimed at streamlining broadband deployment by eliminating red tape and encouraging government entities to adopt modern communications technology.

  1. Municipal Race-to-the-Top program: Recognize municipalities that have expedited broadband deployment, with the goal of encouraging other municipalities to adopt the same approach.
  2. Broadband Infrastructure Executive Order: Ask the White House to issue an order to expedite the approval process for deploying infrastructure on federal land and in federal buildings.
  3. Advocacy for Rapid Tower Siting: Use the FCC’s “leadership pulpit” to encourage states and municipalities to create a faster procedure for adding equipment to existing infrastructure, such as cell towers.
  4. Best Practices/Technology Outreach to State and Local Governments: Go on the road with a series of workshops to help educate municipalities about new technologies for deploying broadband such as micro-trenching, distributed antennas on light poles and directional boring.
  5. Model an Online Deployment Coordination System: Create a “white label” web site that would be freely available to any local government to use to disseminate information about planned telecom and utility company construction projects so that companies in other industries can consider deploying their own infrastructure in the same trenches to reduce construction costs and minimize disruptions.
  6. New Metrics to Measure Broadband Network Quality: Establish new metrics to measure broadband network quality other than speed.
  7. Highlight Stranded Public Switched Telephone Network (PSTN) Investments: Highlight concerns about devices designed to work with traditional phone networks such as alarm systems, automatic teller machines and point of sale terminals that could become stranded assets as networks increasingly shift toward IP.
  8. Promote Small Cell Deployment: Work with federal agencies to encourage more efficient use of spectrum by, for example, installing small cell sites in and on commercial and government buildings.

Automatic Wi-Fi Offloading Coming To U.S. Carriers

It would seem there is a relatively simple solution to the wireless data deluge faced by mobile operators: shift the traffic that is tying up their networks to Wi-Fi hotspots whenever possible.

This is not a radical idea. Over the years, T-Mobile USA has launched several programs with similar objectives. Consumers with Wi-Fi-enabled phones can sometimes do this switchover themselves. But most carriers have not instituted automatic traffic offloads between their networks and Wi-Fi due to the complexity of building such a system. And many consumers don't take the time and effort to move between 3G/4G and Wi-Fi, even when they know Wi-Fi is available and represents a cheaper alternative to cell connections. The boom in smartphones and bandwidth-heavy mobile video is changing all this.

Forbes has learned that three of the four largest U.S. carriers are testing technology from Tel Aviv-based startup WeFi that lets them point subscribers’ smartphones to private and public Wi-Fi networks whenever practical. If the operators formally adopt the program, as WeFi anticipates, consumers should see a change in the way their handsets navigate networks. That, in turn, should translate into savings in the number of data bytes consumers use and, thus, in the amount they pay their carriers each month — particularly given the recent trend toward tiered rather than unlimited data plans.

AT&T Takeover of T-Mobile Is Beyond The Fringe

[Commentary] The only feasible explanation for AT&T's filing at the Federal Communications Commission (FCC) on April 21 to take over T-Mobile is that somehow the AT&T from the "other side" leaked through to this world, with the resultant confusion.

This world's AT&T is a colossus. It spends about $2 billion a year on ads to persuade everyone to "rethink possible" with its fabulous 4G network on which "sparks fly faster." The company's commercials boast that it covers 97 percent of all Americans. Its financials are as solid as a company's financials can get. Look at their first quarter numbers. The company made 57 cents per share, contrasted with 41 cents a year earlier. It collected $31.2 billion in revenues, up $700 million from the first quarter a year ago. There were "best ever" increases in wireless customers, smartphone sales, device adds, while the revenue per subscriber keeps going up and up for the ninth straight quarter. Wireless revenue was up almost 24 percent, which translates into about $1 billion. Broadband connections are up, business revenue is up. Dividends are getting paid.

Yet the AT&T depicted in the FCC filing seems to be another company entirely. It faces "a growing capacity crunch." AT&T continued: "Absent a solution to this problem, AT&T’s customers would face a greater number of blocked and dropped calls as well as less reliable and slower data connections. And in some markets, AT&T’s customers would be left without access to more advanced technologies." This dire state of affairs is made more mysterious because AT&T declined to make public where it is having the most difficulty.

It's time for a consumer-oriented FCC

[Commentary] AT&T's proposed acquisition of T-Mobile USA will shine a light on the Federal Communication Commission's view of the wireless industry's "state of competitiveness." Given the rapidly changing communications landscape, it might also be a good time to consider what the role of the FCC should be over the next decade. If the FCC were to ask consumers what they want, the answer would be pretty simple: anytime, anywhere high-speed network access, from any device, at an affordable price. Is today's FCC, in focus and approach, aligned with these needs? Let's look at this across three key criteria.

  1. Wireless Industry Structure: Isn't it better to have fewer, really good networks than a larger number of mediocre ones? I'd bet consumers would give up choice for "better network, sooner."
  2. Spectrum Policy: The FCC has failed to define, with any level of precision, how much, how soon, to whom, and by what process, more spectrum will become available. AT&T/T-Mobile is a strong statement that if the FCC won't move the discussion, then the market will. Spectrum auctions remove dollars from wireless investment and send them to the US Treasury.
  3. Service Pricing: How many complaints has the FCC really received about mobile Internet pricing? It would be presumptuous for the FCC to assume that the merger will lead to higher prices.

Lowenstein concludes: "I'd encourage the FCC to balance consumer demands for "more network, sooner," against the needs for a healthy industry structure and strong U.S. competitive position, in a time where the market has given us the most innovative period in communications industry history, with more to come."

Kentucky proposes using remote monitoring of patients

Kentucky's Cabinet for Health and Family Services is seeking to make Rest Assured available to some of the state's disabled Medicaid recipients, expecting it could save money by using less in-home care. The cabinet has asked permission from federal officials to use Medicaid funds for “telecare” services like Rest Assured, as is allowed in Indiana and at least one other state.

BBC, Under Criticism, Struggles to Tighten Its Belt

The British Broadcasting Company’s news broadcasts, whether on the radio or on television, exude authority and command respect around the globe. The corporation has also made extraordinary cultural contributions to Britain over the decades, through nurturing talent, sponsoring major musical events and broadcasting television shows like “I, Claudius,” “Monty Python’s Flying Circus” and “Fawlty Towers.” Britons call it, affectionately, the Beeb, and sometimes “Auntie,” for its traditional role as the last word on everything. But despite all that, or perhaps because of it, the BBC seems at times to be an all-purpose whipping boy, an easy target for casual joking and at times naked derision from the country’s political establishment.

As British Prime Minister David Cameron’s Conservative-led coalition government embarks on a grueling austerity program, it has accused the BBC of “extraordinary and outrageous waste.” Media companies — especially those of the Rupert Murdoch media empire, the BBC’s chief competitor — have been quick to join the critical chorus. Much of the criticism has to do with the license fee of £145.50 (about $240) that is levied annually on every British household with a television set. The fee brings in £3.6 billion a year, about 80 percent of the BBC’s total income. The mandatory charge makes Britons feel, rightly, that they own the BBC, and emboldens them to complain loudly and often.

In Slovakia, News Outlets Take Cue From Cable

The newspaper industry is in trouble; cable television, despite the same challenges, is thriving. Could newspapers learn something from the cable guys? In tiny Slovakia, publishers want to find out. Borrowing the cable TV business model, in which a single monthly payment brings mainstream networks, news channels and nutty talk show hosts into people’s living rooms, they are bundling their Web sites to create a more diverse offering. For €2.90, or $4.20, a month, starting in May, users will get full access to the Web sites of the two leading broadsheets, SME and Pravda. Also included will be the sites of business and sports newspapers, magazines, a TV network, online video portals and a media news service. Until now, the sites have mostly been free.

China to punish Baidu for illegal music downloads

China's ministry of culture is to punish search engine company Baidu for providing illegal music downloads, a move that may hit its soaring share price. Xinhua, China's official news agency, reported the government will punish 14 websites that have provided illegal music downloads, including Baidu, China's top search engine. Xinhua reported that an official said the websites continued to provide illegal downloads after repeated warnings not to do so. Details about the punishment were not released. Baidu spokesman Kaiser Kuo said it would act quickly to remove links to files identified by the ministry.