November 2013

Map Shows the NSA's Massive Worldwide Malware Operations

A new map details how many companies across the world have been infected by malware by the National Security Agency's team of hackers, and where the companies are located.

Dutch newspaper NRC Handelsblad reports the NSA uses malware to infect, infiltrate and steal information from over 50,000 computer networks around the globe. This new, previously unreported scope of the NSA's hacking operation comes from another PowerPoint slide showing a detailed map of every infection leaked by former contractor Edward Snowden. The practice is called "Computer Network Exploitation," or CNE for short, and it's carried out by the NSA's Tailored Access Operations team. A yellow dot on the map signifies a CNE infection. The NSA plants malware within a network that can flipped on or off at any time. Once a network is infected, the malware gives the NSA unfiltered access to the network's information whenever it's most convenient. An NSA Web page that outlines the agency's Computer Network Operations program describes CNE as a key part of the program's mission and says it "includes enabling actions and intelligence collection via computer networks that exploit data gathered from target or enemy information systems or networks."

The End of the Beginning of the IP Transition

Much has been written over the 12 months that have passed since AT&T filed its request for the Federal Communications Commission to oversee trials to facilitate the industry’s continued transition from aging communication platforms and services to new services based fully on Internet Protocol (“IP”). One important highlight in all that has been written is the vast number of customers, both business and residential, that already have made the transition. But to paraphrase Sir Winston Churchill, this is not the end of the transition, it is not even the beginning of the end of the transition, but it is, perhaps, the end of the beginning of the transition.

We have been very clear about our efforts to transform our network to one that is all Internet Protocol (IP). The first step of that plan is to align the commitments we make to our customers with the goal of transitioning to an all-IP network. That is why today we have taken a step to make sure that multi-year commitments we enter into for aging TDM-based services reflect the on-going transition to IP and do not extend beyond the expected completion of our transition in 2020. Taking this step ensures we keep the commitments we enter into with our customers. In industry jargon, we are “grandfathering” these longer term plans for TDM-based services (i.e., allow those that have it to keep it but not enter in to new long term plans for these services). The tariff changes will grandfather DS1 and DS3 term plans greater than 36 months, including ones that have term periods as long as seven years. These changes are scheduled to become effective on December 10, 2013. Other tariffed term plans of shorter durations will continue to be available to all customers. Importantly, customers also will continue to have the opportunity to negotiate individualized contracts with AT&T to obtain these services.

Expanding Broadband Access to Businesses Nationwide

Just as more Americans are finding broadband essential to life at work and home, most businesses also need high-speed Internet service to remain competitive. The nation has made good headway in efforts to expand broadband access to work places, according to a new report from the US Commerce Department’s National Telecommunications and Information Administration (NTIA) and Economic and Statistics Administration (ESA).

Nearly all jobs in the United States are located in areas with at least basic wired or wireless broadband service, which is defined as service with an advertised download speed of 3 megabits per second (Mbps) and an upload speed of 768 kilobits per second (Kbps), according to the report. Using data collected by NTIA’s State Broadband Initiative (SBI) and the Census Bureau, which is part of ESA, the report also finds that between 2011 and 2012 the number of jobs located in areas with access to broadband download service speeds of 50 Mbps or greater increased from 56 percent to 75 percent. Employers located in areas that have robust broadband may have an advantage compared with otherwise similar competitors. Manufacturing jobs, which make up 9.2 percent of all jobs in 2010, are more concentrated in “Very Rural” or “Exurban” areas, as defined in the report, where there is less high-speed broadband available. In 2012, 69 percent of manufacturing jobs were in areas with 50 Mbps or greater download service compared to 75 percent of all jobs. Still, there has been progress in recent years in bringing high-speed broadband to these areas. In 2011, only 49 percent of manufacturing jobs had access to broadband at these speeds. Access to broadband with download speeds of 50 Mbps or greater in Very Rural areas grew from only 18 percent in 2011 to 33 percent in 2012, while in Exurbs, it went from 36 percent in 2011 to 53 percent in 2012.

Broadband Availability in the Workplace

Building on previous work examining broadband availability across different geographies by population, this report examines broadband availability by job location.

As in Broadband Availability, Beyond the Rural/Urban Divide, this report divides the United States into five categories based on degree of urbanization. Rather than examining broadband and general population levels, however, this report assesses the impact of broadband availability in the workplace. Virtually all jobs have access to very basic broadband speeds. However, jobs located in more rural communities have less access to high-speed broadband than more urban communities, for both upload and download speeds, and the gaps in availability generally are greater at higher speeds. This brief also examines two industries -- manufacturing and information. Manufacturing jobs, which are relatively concentrated in more rural communities, have less access to higher speed broadband than information jobs, which are concentrated in more urbanized communities.

New judges could give a net neutrality appeal a fighting chance

Any day now the DC Circuit Court is expected to rule on Verizon’s case against the Federal Communication Commission’s open internet order -- the network neutrality rules. Most analysts expect the court to reverse many parts of the FCC’s order, which would be a devastating blow to consumers and tech firms. But Stifel Nicolaus, a DC investment bank, notes that the expected confirmation for three new Democratic appointees to the DC Circuit Court will give the FCC a better chance of winning if it appeals the decision the current 3-judge panel makes. Which basically means more waiting.

Time Ticking for States to Opt In or Out of FirstNet

Within the next year or two, governors will need to decide if they want to join the federal government’s new nationwide public safety communications network. And although the decision may seem far away, now is the time to prepare.

The First Responder Network Authority -- the independent federal entity better known as FirstNet -- is in the process of drawing up specific network designs for each state. Right now, a federal grant program is paying states to tally potential users and inventory radio towers and other gear that could be used by the network. Once those network plans hit governors’ desks, the clock starts ticking. Under federal legislation signed in 2012, states have 90 days to opt into or out of the plan. The goal of the new broadband network is to finally put the nation’s emergency responders on a common communications platform, eliminating potentially deadly situations where police or fire agencies from different jurisdictions can’t talk to each other during major disasters. But to deliver on those promises, FirstNet needs to offer a national service that’s better than existing networks used by state and local agencies. That won’t be easy. And if states don’t like what they see? Rejecting the plan presents its own set of challenges.

Opting out of FirstNet doesn’t mean the network won’t come to your state; it just means the feds won’t build it for you. Instead, you’ll build your own network -- following standards that allow it to plug into the national network -- and pick up at least 20 percent of the cost. States opting out will have just 180 days to get their own network plans approved by the Federal Communications Commission and the National Telecommunications and Information Administration, and then release a request for proposals for the project. Furthermore, governors may not be able to make the opt-out decision alone, says Bill Schrier, who, as a senior policy adviser to the Washington state CIO, serves as point man for the FirstNet deployment there. “Let’s suppose that it costs $100 million to build the network in Washington state,” Schier says. “If the governor opts out, he needs to cough up at least $20 million. That typically would require legislative authorization.”

Comcast + Time Warner Cable: One Broadband Giant to Rule Them All?

Cable industry sharks are circling Time Warner Cable, the second largest cable TV company in the United States, which has become the subject of intense speculation that it might be purchased by one of its rivals. The latest scuttlebutt suggests that Comcast, the nation’s largest cable company, might pursue a joint bid for Time Warner Cable with Charter Communications, with plans to break it up. That news follows reports that Comcast is exploring the regulatory hurdles associated with buying Time Warner Cable outright, which sent the company’s shares soaring by 10%.

Such a merger would be intensely scrutinized by the US government, including the Justice Department, which would address antitrust concerns, and the Federal Communications Commission, which would be charged with ensuring that the deal serves the public interest. Combining the number one and number two cable companies in the country would create a corporate behemoth with approximately 33 million customers. Comcast already owns NBCUniversal, one of the crown jewels of the media industry, after buying the company from industrial conglomerate General Electric in a highly controversial deal.

In search of bigger bandwidth

A push to expand high-speed Internet access in Iowa has gained the attention of rural school districts struggling to incorporate more technology into the classroom.

In Storm Lake, Superintendent Carl Turner said ensuring Internet access for students outside of school and problems with inconsistent speeds in school limit the ability to get his 2,100 students online. The district is struggling to find enough bandwidth to accommodate students and staff looking to use mobile devices in class. Iowa has the worst ranking for high-speed Internet access compared with seven neighboring states, according to a 2012 TechNet State Broadband Index. Iowa ranks 34th nationally, while North Dakota at 18th and Minnesota at 19th lead the region. Illinois comes in at 24th, followed by South Dakota at 26th, Wisconsin, 29th, Missouri, 32nd and Nebraska, 33rd. John Stineman, executive director of the Heartland Technology Alliance, a regional advocacy group, said the lack of access is a quality-of-life issue that affects economic development and education. Connect Iowa, a nonprofit group that tracks Internet access in Iowa, estimates that about 680,000 Iowans don’t have broadband Internet service. “It’s a big issue and it’s not going to go away,” Stineman said. “The rural nature of Iowa and its small communities do present challenges, but Iowa is not alone.”

Universities still reviewing hyper-speed Internet

The North Carolina Next Generation Network project is being billed as the fastest lane yet on the information superhighway. However, the process for launching the ultra-high speed Internet service in Winston-Salem and the Triangle appears to be moving along at a dial-up modem pace.

The goal had been securing an Internet service provider by fall, which would design, build, operate and own the network, and have the network operational by mid-2014. “NCNNG is reviewing the proposals,” Eric Tomlinson, president of Wake Forest Innovation Quarter, said. “It’s a crucial opportunity/need.” Wake Forest University, along with Duke University, NC State University and UNC Chapel Hill, are establishing the network as part of the GiG.U initiative, which involves 37 universities nationwide. An advantage Winston-Salem has is that the potential network would be built on part of the high-tech foundation provided since 2001 by Winston-Net, a partnership of local governments, academic institutions and the Winston-Salem Chamber of Commerce. The network is a way to allow more people to have access to cloud technology at an affordable price, said Rick Matthews, an associate provost for technology and information systems at Wake Forest. The goal is providing wireless service, up to 100 times faster than typically available, at a potential cost of $70 to $100 a month. “It’s a potential driver for the academic and scientific sides of the university, including potentially giving us an advantage in recruiting more technology and life-sciences companies if it is done in a relative quick period of time,” Tomlinson said. The GiG.U initiative has drawn more than $200 million in private investment funding. There are 18 communities nationwide involved in the first phase.

Experts rank the top 10 global trends

A new report from the World Economic Forum ranks the 10 most important global trends, based on a poll of 1,592 leaders from academia, business, government, and non-profits. Here are two highlighted data points that compare and contrast the public’s views around the world with the trends identified by the experts.

Intensifying cyber threats -- US policy experts were very concerned about the threat of cyber-attacks from China, according to our 2012 survey. However, while the World Economic Forum survey identified cyber threats as a top concern, 47% of experts admitted they have limited knowledge of the problem.
The rapid spread of misinformation online -- One-third (30%) of the world’s youth have been active online for at least five years, according to the International Telecommunication Union. Social networking has also spread around the world. In 19 of 21 countries, about three-in-ten or more of those polled use sites such as Facebook, according to our 2012 survey.

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