September 2012

Company Says It, Not FBI, Was Hacking Victim

An Orlando (FL) company said that it — not the Federal Bureau of Investigation — was the source of a file hackers posted online that contained a million identification numbers for Apple mobile devices. The company, BlueToad, which works with thousands of publishers to translate printed content into digital and mobile formats, said hackers had breached its systems more than a week ago and stolen the file. A few days after the file appeared online, the company realized it matched the stolen information, said Paul DeHart, BlueToad’s chief executive.

Sen Collins: Congress should continue work on cybersecurity despite executive order

Although the White House is drafting an executive order on cybersecurity, Sen. Susan Collins (R-Maine) argues that Congress shouldn't abandon its efforts to pass legislation that would better protect the United States from cyberattacks.

Sen Collins was a key co-sponsor of a sweeping cybersecurity bill by Sen. Joe Lieberman (I-Conn.) that failed to pass the Senate in August. The momentum around cybersecurity legislation in Congress weakened after Senate Republicans blocked Lieberman's bill, but Collins believes lawmakers should still forge ahead and get a bill done this year. "Given the threat, I understand the administration’s desire to act, but an executive order should not be a substitute for legislative action," Sen Collins said. "I am deeply disappointed that the Senate failed to pass our bipartisan bill before the August recess, but it remains imperative that this Congress address this issue. "An executive order could send the unintended signal that congressional action is not urgently needed,” she added.

Lobby group rebrands for fight against AT&T and Verizon

The lobbying association for small wireless carriers rebranded itself as part of its bid to take on AT&T and Verizon. The Rural Cellular Association renamed itself the Competitive Carriers Association.

The group is made up of more than 100 small regional companies, but its member list also includes Sprint and T-Mobile, which have nationwide networks but are still much smaller than the two largest carriers. Sprint joined the association last year as it partnered with the rural carriers to fight AT&T's attempt to buy T-Mobile, a deal that would have significantly consolidated the wireless industry. Regulators blocked the deal, and T-Mobile joined the association this year.

New Coalition to Push FCC for Spectrum Interoperability

A group of smaller wireless companies are launching a new coalition to urge the Federal Communications Commission to take action on a proposal that would make it easier for them to use spectrum they already hold to launch their next-generation 4G wireless networks. The Interoperability Alliance wants the FCC to finalize rules that would require other wireless providers to use the same standard in a band of spectrum where smaller wireless providers hope to launch their 4G wireless networks.

Much of their ire appears to be targeted at AT&T, which opted to use a different standard in the 700 megahertz band than adopted by other wireless providers. Because of this, smaller providers argue they are having a difficult time obtaining handsets from manufacturers and will be unable to allow their customers to roam on AT&T's network, which is key if their customers want to use their phones anywhere in the country. Coalition organizers declined to release a list of members before the launch but the group is expected to include the Rural Cellular Association.

Analysts: Retransmission Revenues Growing Faster Than Expected

Revenue from retransmission is growing faster than expected, according to a new report.

Todd Juenger, senior analyst at Bernstein Research, notes that CBS has signaled that retrans revenues will approach $1 billion in 2016. The company has previously said retrans will reach that level in 2017. To get $1 billion in revenue in retrains, CBS would be getting about $1.22 a month per sub from operators and 61 cents a month per sub in reverse compensation payments from affiliates. Juenger says that retrans growth for Fox and ABC are moving in line with CBS, while NBC's is growing more slowly. Longer term, Juenger says he expects retrans to reach $2 per month per sub by 2015, reflecting an annual growth rate of 7% between 2016 and 2025.

Real-Time Sharing of Obama and Romney Ads Up to Election Day

To see whose ads—and which ones—are getting the most viral traction, Unruly Media has put together a handy dynamic infographic that tracks videos from the official Obama and Romney campaigns, as well as the 12 Super-PACs that are most active in this year's contest.

The infographic, which will update twice a day until Election Day, tracks total shares across social media, as well as views and comments on YouTube—and shows the 10 most-shared clips for each candidate over the past seven days. So far, Obama leads Romney more than two-to-one in YouTube views, and more than three-to-two in total shares. The only tally where Romney leads is in YouTube comments, which indicates that his videos are the subject of more debate.

Google Fiber will hit 89% of neighborhoods, some poor areas miss out

Signing up for Google Fiber isn't simply a matter of scheduling an installation appointment. Google divided up the two Kansas Cities (Missouri and Kansas) into 202 "fiberhoods" of about 800 homes each, and asked residents to preregister and plunk down a $10 fee to express their interest. To qualify, neighborhoods had to reach goals of anywhere between 5 percent and 25 percent of residents signing up. Google announced that it has closed preregistration, with 180 out of the 202 fiberhoods meeting their goals. People living in one of these neighborhoods can sign up starting September 13. For $70 per month, residents can get Gigabit Internet, and for $120 per month, they can get Gigabit Internet service plus TV. There's even a "free" Internet tier with 5Mbps down and 1Mbps up. The free tier requires a one-time construction fee of $300 or 12 monthly payments of $25, but Google guarantees the free service for seven years. Affluent areas signed up much more quickly than poor ones.

How Kansas City taxpayers support Google Fiber

It's true that the Google Fiber project hasn't developed the way many liberal groups wanted it to. But it's important not to gloss over the fact that Kansas City's support for Google's network went well beyond deregulation to outright corporate welfare.

It's hardly an example of the free market in action. Fred Campbell, a former FCC official who now hangs his hat at the Competitive Enterprise Institute, writes, “Google received stunning regulatory concessions and incentives from local governments, including free access to virtually everything the city owns or controls: rights of way, central office space, power, interconnections with anchor institutions, marketing and direct mail, and office space for Google employees. City officials also expedited the permitting process and assigned staff specifically to help Google. One county even offered to allow Google to hang its wires on parts of utility poles—for free—that are usually off-limits to communications companies.” Indeed, the agreement between Google and Kansas City, MO, specifies that the city will "make space available to Google in City facilities for the installation of Google’s Central Office equipment and for additional network facilities," will "provide power necessary for Google’s equipment at City locations," and "will not charge Google for such space, power, or related services." Obviously, offering free (e.g. taxpayer-subsidized) power and rack space goes well beyond "regulatory concessions."

Sniffing open Wi-Fi networks is not wiretapping, judge says

A federal judge in Illinois has ruled that intercepting traffic on unencrypted Wi-Fi networks is not wiretapping.

The decision runs counter to a 2011 decision that suggested Google may have violated the law when its Street View cars intercepted fragments of traffic from open Wi-Fi networks around the country. The ruling is a preliminary step in a larger patent trolling case. A company called Innovation IP Ventures has accused various "hotels, coffee shops, restaurants, supermarkets," and other businesses that offer Wi-Fi service to the public of infringing 17 of its patents. Innovatio wanted to use packet sniffing gear to gather Wi-Fi traffic for use as evidence in the case. It planned to immediately delete the contents of the packets, only keeping the headers. Still, the firm was concerned that doing so might violate federal privacy laws, so it sought a preliminary ruling on the question.

Kids reading fewer websites, more e-books

In the UK, 7.8 percent of schoolchildren aged nine and up read e-books outside of class last year, according to new research.

That rate is up from 5.6 percent a year earlier, according to the National Literacy Trust’s “Children’s Reading Today” survey. The survey of kids from 128 UK schools gives an insight in to how the next generation is using various platforms to read. It shows that: “Since 2005, reading across all formats has fallen – with the exception of text messages.” Remarkably, that trend even goes for websites. Whilst 64 percent of schoolchildren said they read the web out of class in 2005, that dropped to 50 percent in 2011.