August 2011

Denial of Service: Is Wireless Access Always a Right?

It is broadly understood that wireless service may be absent altogether in a given public space, that it may be present but unavailable due to factors such as maintenance or insufficient capacity during periods of high demand, and that its utilization may be subject to various terms of use restrictions. Intentional shutdowns to thwart free expression, however, are a different matter, and the criticisms that have been directed at BART are generally reasoned and accurate.

But it is also important to recognize that those criticisms are made from the safety of hindsight. We know now that there was no protest, that there was no rogue breakaway flash mob inside a station that exploited an otherwise peaceful event by using wireless messaging to single out the passengers of a specific subway car for a spree of robbery and assault. In a week that has also seen widespread rioting in the United Kingdom, some of it facilitated through wireless communications, and the imposition of a curfew in Philadelphia specifically in response to a spate of violent flash mob attacks, the question of when a wireless network owner has a right to impede its use in the alleged interest of the greater public good – or when a government can compel a network owner to take such a step – is more relevant than ever.

Americans and Their Cell Phones

Mobile phones have become a near-ubiquitous tool for information seeking and communicating--83% of American adults own some kind of cell phone--and these devices have an impact on many aspects of their owners’ daily lives.

  • Cell phones are useful for quick information retrieval (so much so that their absence can cause problems) – Half of all adult cell owners (51%) had used their phone at least once to get information they needed right away. One quarter (27%) said that they experienced a situation in the previous month in which they had trouble doing something because they did not have their phone at hand.
  • Cell phones are an important tool in emergency situations – 40% of cell owners said they found themselves in an emergency situation in which having their phone with them helped.
  • Cell phones can help stave off boredom – 42% of cell owners used their phone for entertainment when they were bored.
  • Despite their advantages, some cell phone owners just need an occasional break – 29% of cell owners turned their phone off for a period of time just to get a break from using it.
  • With advantages comes frustration – 20% of cell owners experienced frustration because their phone was taking too long to download something; 16% had difficulty reading something on their phone because the screen was too small; and 10% had difficulty entering a lot of text on their phone.
  • Cell phones can help prevent unwanted personal interactions – 13% of cell owners pretended to be using their phone in order to avoid interacting with the people around them.

Text messaging and picture taking continue to top the list of ways that Americans use their mobile phones—three quarters of all cell owners (73%) use their phones for each of these purposes. Other relatively common activities include sending photos or videos to others (54% of cell owners do this) as well as accessing the Internet (44%).

One third of American adults (35%) own a smartphone of some kind , and these users take advantage of a wide range of their phones’ capabilities. Fully nine in ten smartphone owners use text messaging or take pictures with their phones, while eight in ten use their phone to go online or send photos or videos to others. Many activities—such as downloading apps, watching videos, accessing social networking sites or posting multimedia content online—are almost entirely confined to the smartphone population.

In Defense of the Internet Craftsman

[Commentary] To save the Internet as a platform for innovation, we need to see concerted intervention to protect the rights of users to create. Most importantly, we must fight for the Internet craftsman -- the individual who is free to develop networks, services, and applications and who shapes networking technologies better to meet her own needs and those of her community.

The democratic potential of the Internet is not predicated on a subscription to an Internet connection but on the idea that the Internet is a platform for free speech -- a space to access and share ideas and innovations. Policies addressing the digital divide must embrace the Internet Craftsman and confront the deep and growing chasm between users of restrictive technologies and those free to innovate without gatekeepers. The Internet's potential to empower is strongest when users are free to turn their imaginations into reality, not when innovation is confined by increasingly restrictive policies of network operators. The future of democratic communications depends on the ability of network participants to have control over the technologies we use every day.

What Is Cyberwar?

What constitutes an act of cyberwar?

Before we get to that, there's a clue in the spelling of the word: cyberwar instead of cyber war. The Defense Department has determined that cyber is a fifth domain after air, land, sea, and space. We wouldn't call the World War II battle for domain of the skies an "airwar," or the showdowns over North African terrain "landwar." Yet somehow cyberwar has become the preferred term. The oddity of the convention reflects the fact that cyberwar is not quite "war," not quite "cyber," yet it is so palpably real that most developed and developing nations are standing up their own cyber commands to engage in it. The problem, of course, is that no one can agree on what constitutes an act of cyberwar. There is as yet no international treaty in place that establishes a legal definition for an act of cyber aggression.

Guess who else wanted to buy Motorola?

Google may not have had much of a choice when it came to buying Motorola Mobility for $12.5 billion. If it didn't, someone else would have and that would have put the company in an even bigger patent hole. Sources say that Motorola was in acquisition talks with several parties, including Microsoft for quite some time. Microsoft was interested in acquiring Motorola’s patent portfolio that would have allowed it to torpedo Android even further. The possibility of that deal brought Google to the negotiation table, resulting in the blockbuster sale. Motorola found a Google deal more digestible because Microsoft had no interest in running a hardware business and was essentially interested in Motorola’s vast collection of patents.

Google’s Motorola Deal Will Spur Antitrust Regulators to Action

To say that Google is going to face some opposition to its proposed $12.5 billion acquisition of Motorola Mobility is what you might call a bit of an understatement.

First of all, the deal will give a lot of fresh meat to the Federal Trade Commission, which is already investigating several aspects of Google’s business, including its Android mobile operating system business. The offices of several state attorneys general will also want to weigh in. The AGs in New York, California, Ohio and Texas have all ramped up inquiries into Google’s dominance of the search business. Also in the mix is the European Commission. Google is clearly sharpening its arguments for the coming fight. In the company’s official blog post announcing the deal, CEO Larry Page said Google will continue to work with other hardware companies on Android. The company says it works with 39 different manufacturers that build Android devices. But he also renewed a recent Google complaint that other companies are banding together to hurt Android by accumulating a pool of patents owned by Novell. The biggest question will focus on whether or not a Google-owned Motorola will get preferential access to new versions of Android before other manufacturers. Whatever happens, it’s going to take Google some time to get this deal done, and if it does get approved, you can expect some significant regulatory concessions.


Broadband: Enabling Prosperity in a 21st Century Economy

Oct 18-19, 2011
Raleigh, NC
https://events.r20.constantcontact.com/register/eventReg?oeidk=a07e4ena4...



Google Buying Motorola Mobility For $12.5 Billion (updated)

Google is buying cell phone maker Motorola Mobility Holdings for $12.5 billion in cash.

It's by far Google's biggest acquisition to date and a sign the online search leader is serious about expanding beyond its core Internet business. Google will pay $40.00 per share, a 63 percent premium to Motorola's closing price on August 12. Motorola Mobility was separated from the rest of Motorola in January. The company has remade itself as a maker of smartphones based on Google's Android software, but has struggled against Apple Inc. and Asian smartphone makers. The acquisition has the approval of both companies' boards and is expected to close by the end of this year or early 2012.

Google agreed to pay Motorola Mobility $2.5 billion if it fails to close the purchase under certain circumstances, a fee more than six times the typical amount. On a percentage basis, the fee is more than triple the $3 billion AT&T is offering as part of its $39 billion bid for Deutsche Telekom AG’s T-Mobile USA, the largest deal this year. Both AT&T and Google face increasing scrutiny as regulators examine whether their acquisitions are stifling competition in the telecommunications and Internet industries. Motorola Mobility would pay a $375 million breakup fee if it decides not to sell to Google.

Additional coverage:
Google’s Big Bet on the Mobile Future (NYTimes)
http://dealbook.nytimes.com/2011/08/15/googles-big-bet-on-the-mobile-fut...

In the World of Wireless, It’s All About Patents (NYTimes)
http://dealbook.nytimes.com/2011/08/15/in-the-world-of-wireless-its-all-...

Google's $12.5 Billion Gamble (WSJ)
http://online.wsj.com/article/SB1000142405311190339290457650995382143796...

Google Primes Patent Pump (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651061220870619...

Friend or Foe? Tie-Up Turns Partners to Rivals (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651042257630267...

Motorola Chief Gets $62 Million If He Exits (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651077281728431...

Google snaps up Motorola Mobility (FT)
http://www.ft.com/cms/s/2/e906bedc-c734-11e0-a9ef-00144feabdc0.html

The Truth About Google-Motorola: It Could End Up Being A Disaster

This deal could end up being a disaster. How? For starters, the deal creates major channel conflict: Google is now competing with its partners. And hardware manufacturing is an entirely different kind of business than Google's core business. And hardware manufacturing is a crappy, low-margin commodity business. And Motorola is massive -- Google has just increased the size of its company by 60%. And the deal appears to be purely a defensive move, not an offensive one. And so on.

Larry Dignan, on the other hand, says six reasons the deal makes sense:

  1. Integration may be all that matters in the wireless industry;
  2. Google lands its patent treasure trove; Google gets a TV play;
  3. There’s a good chance that Google can keep hardware partners in the fold -- for now;
  4. The deal forces Microsoft’s hand: there’s no money in third party operating systems in the mobile space. The upshot: Mobile software players need a hardware component. As a result, Microsoft may be forced to acquire a hardware player.
  5. With Motorola, which has some enterprise credibility and Android innovations, Google can enter the enterprise easier. As a result, RIM increasingly looks like the odd man out. Nokia is already under fire as it waits for Windows Phone 7 to gain traction.

Where does Google-Motorola rank?

Google's purchase of Motorola Mobility Solutions is the 11th-largest M&A transaction announced so far in 2011. It also would be the year's largest-announced deal within the global "high-technology" sector, ahead of Microsoft's $8.5 billion deal for Skype. Were it to be classified as telecom, it would rank second behind AT&T's $39 billion deal for T-Mobile. In terms of Google, this would be the search giant's largest-ever acquisition (by far). To date, it's largest deal was for online ad company DoubleClick ($3.1 billion), followed by the 2006 purchase of YouTube ($1.65 billion).