May 2011

Justice Department Said to Extend Review of T-Mobile Bid by AT&T

The Department of Justice extended its review of the proposed $39 billion purchase of T-Mobile USA Inc. by AT&T, asking the companies for more information, two people familiar with the situation said.

The department's antitrust division also sent so-called civil investigative demands, which are like subpoenas, to competitors of the two companies, seeking data on how the transaction might affect their businesses, according to the people, who declined to be identified because the review is confidential. The second round of requests to AT&T and T-Mobile will allow the Justice Department to extend its review of the transaction indefinitely. "This confirms that the government is going to do a deep dive into the transaction to understand what the implications are," said Rebecca Arbogast, a Washington-based analyst with Stifel Nicolaus & Co.

Turning to Social Networks for News

When the White House abruptly announced an address to the nation by President Obama on Sunday night, CNN anchors spent the better part of an hour previewing the address without actually saying what it was about. Thanks to Twitter and Facebook, some CNN watchers had already heard the news.

Unconfirmed reports — that turned out to be true — of Osama bin Laden’s demise circulated widely on social media for about 20 minutes before the anchors of the major broadcast and cable networks reported news of the raid at 10:45 p.m., about an hour before President Obama’s address from the White House. It was another example of how social media and traditional media deal with the same news in different ways and at different speeds. Just as CNN once challenged newspapers and evening newscasts with a constant stream of images from the Persian Gulf war, Twitter and Facebook have become early warning systems for breaking news — albeit not always reliable ones. Twitter saw the highest sustained rate of posts ever, with an average of 3,440 per second from 10:45 p.m. to 12:30 a.m. Eastern time. There were more than five million mentions of Bin Laden on Facebook in the United States alone, as news of the raid at his hideout spread starting around 10:30 p.m. A new Facebook page titled “Osama bin Laden Is Dead” popped up for people to begin sharing their thoughts. It had more than 400,000 fans on Monday. (A second page, “Osama bin Laden Is Not Dead,” soon followed.) Text messages and social networks did not only help people get and spread the news about Bin Laden’s death, but they also helped people absorb it, spurring impromptu gatherings at ground zero and outside the White House.

US media unified in celebrating bin Laden’s death

There were high-fives on Fox News; the New York Times printed an extra 165,000 copies; and the headline on New York’s Daily News read “Rot in hell”. For one night and one morning, America’s usually divided media could agree: Osama bin Laden’s death was a cause for celebration, and a significant achievement for president Barack Obama.

News anchors jumped into suits and printing presses were held after the 9.30pm eastern time alert that the president was about to address the nation. Traffic to social media sites soared, and at 10.25pm Keith Urbahn, former chief of staff to Donald Rumsfeld told Twitter: “So I’m told by a reputable person they have killed Osama bin Laden. Hot damn.” Even before it emerged that a Pakistani IT consultant had unknowingly tweeted the strike on bin Laden’s compound, Business Insider, Henry Blodget’s website, declared it “Twitter’s CNN moment”, although many said the same of last year’s demonstrations in Iran, the uprising in Egypt’s Tahrir Square and other recent news events. “Twitter is our Times Square on this victory day,” said Jeff Jarvis, the journalism professor and blogger. On Monday morning, Mr Urbahn played down the idea that his tweet was evidence of the triumph of social media, saying that his source had been “a connected TV news producer”. For an awkward 20 minutes after his message, though, broadcasters and cable news networks were unable to confirm the news to their satisfaction. After they switched to rolling coverage of the announcement and scrambled to set up calls and video links with their own journalists and outside analysts on a Sunday evening, they were at first able only to hint at the magnitude of the announcement to come.

Ownership of TV Sets Falls in US

For the first time in 20 years, the number of homes in the United States with television sets has dropped.

The Nielsen Company, which takes TV set ownership into account when it produces ratings, will tell television networks and advertisers on Tuesday that 96.7 percent of American households now own sets, down from 98.9 percent previously. There are two reasons for the decline, according to Nielsen. One is poverty: some low-income households no longer own TV sets, most likely because they cannot afford new digital sets and antennas. The other is technological wizardry: young people who have grown up with laptops in their hands instead of remote controls are opting not to buy TV sets when they graduate from college or enter the work force, at least not at first. Instead, they are subsisting on a diet of television shows and movies from the Internet. That second reason is prompting Nielsen to think about a redefinition of the term “television household” to include Internet video viewers.

Enforcing Copyrights Online, for a Profit

Over the last year, as newspapers continue to grapple with how to protect their online content, Righthaven has filed more than 200 federal lawsuits in Colorado and Nevada over material posted without permission from The Denver Post or The Las Vegas Review-Journal. The company has business relationships with both newspapers. Like much of the industry, the papers see the appropriation of their work without permission as akin to theft and harmful to their business, and are frustrated by unsuccessful efforts to stem the common practice, whether it’s by a one-man operation, or an established one. Some critics contend that Righthaven’s tactics are draconian, and that the company hopes to extract swift settlements before it is clear that there is a violation of federal copyright law. Typically, the suits have been filed without warning. Righthaven rarely sends out notices telling Web sites to take down material that does not belong to them before seeking damages and demanding forfeiture of the Web domain name.

Hackers Breach Second Sony Service

Sony Corp. said computer hackers breached security for a second online service, gaining access to personal information for 24.6 million customer accounts as part of a broader attack on the company that has compromised data for more than 100 million accounts.

Sony Online Entertainment, a San Diego-based subsidiary that makes multiplayer games for personal computers, said it shut down its services Monday amid concerns a hacker may have accessed names, birth dates and addresses for its users. The company said it doesn't believe credit-card information on those accounts was accessed, but said hackers may have stolen credit-card data for about 12,700 non-U.S. accounts and 10,700 bank-account numbers from an "outdated database from 2007." The company, which has come under fire for its handling of the security breach, said it detected the latest intrusion early May 2, Tokyo time, as part of an ongoing investigation of the attacks.

Storing Too Much Information

[Commentary] How secure is the Internet? It is perhaps less so than many trusting consumers seem to believe. Two recent privacy infractions involving companies with a global brand name should make users sit up and think. They are a reminder that the voracious appetite of Internet firms for data is not always matched by their ability to keep that information secure.

Apple’s decision to embed location-tracking software in its iPhone without flagging this to customers is a good example. While the resulting data helped the company target advertisements through the handsets, it involved both a careless invasion of privacy and lax data protection. Apple did not offer users an explicit opt-out to its obtaining and logging of the information. Having obtained the data it did not store this securely. Worrying in a different way was the hack-in at Sony’s Playstation network, which may have compromised the personal data of 77m gamers. The lure of such a huge stash of information invites attacks even on big companies. Inevitably some may succeed. The cases highlight a larger security problem.

Consumers have few qualms about giving up a great deal of personal information – as they do, wittingly or unwittingly, on mobile devices and social networking sites such as Facebook. Yet while they store ever more information about themselves online, the effort they make to protect this trove of data has not risen commensurately. People often use the same password for many personal accounts, so it is comparatively easy to piece together a lot of information once one has been breached. These traits make consumers vulnerable if the information they supply goes astray. Consumers rely on companies to protect them. But it is not clear that companies, especially social networks, take these vulnerabilities seriously enough.

Much More Than WhiteHouse.gov

Two years ago, the White House launched official profiles on Facebook, Twitter and MySpace. Since then we've grown quite a bit, both in terms of the number of connections we've made through these sites, as well as other places on the web that now feature an official White House presence.

As I wrote then, technology continues to change how and where Americans get information and discuss important issues online. It’s also means that any organization, including the White House, must recognize that its website is only one part of an effective online platform. Let’s take a look at the range of places you can now connect with the White House online: Facebook, Twitter, MySpace, LinkedIn, Digg, YouTube, Vimeo, Hulu, Flickr, iTunes, UStream, Socrata, SlideShare.

Pandora Is Now 10 Billion Thumbs Strong

Personalized radio service Pandora has reached a major milestone: last week it recorded its 10 billionth thumb (and it was a thumbs up).

Avid fans of the popular service already know what that means — for the rest of you, Pandora lets users mark the song that’s currently playing with a Thumbs Up or Thumbs Down. The effect is pretty straightforward: hit a thumbs up and Pandora will try to play more music that sounds like the song you’re listening to, thumbs down and Pandora will immediately jump to the next song and send a minor electric shock to CTO Tom Conrad. In other words, these thumbs are explicit signals that users are sending to Pandora to help fine-tune their radio stations, and it shows that plenty of people actually try to take advantage of the personalization features as opposed to just letting the radio play in the background all day.

The Internet: One big power suck

The Internet uses more electricity in America than the auto industry uses to make cars and trucks. Yet despite all the talk about the nation's aging power grid, utility experts say they can easily handle the additional demand.

In a way, for energy producers, the huge increase in usage by companies like Google and Facebook is a godsend. Electricity demand from many industrial clients has dropped by up to 20% over the last few years, largely due to the recession and greater efficiency. Tech sector growth "has helped make that decrease not so bad," said Steve Rosenstock, an engineer at the Edison Electric Institute, the utility trade association. The electricity needed to power and cool the millions of servers that make the Internet hum has grown by more than 10% a year for the last decade, Rosenstock said. It now accounts for about 2% of all the electricity consumed in the Untied States.