December 2013

Google reports 68% jump in government takedown requests

Google published an update to its semi-annual Transparency Report, and the latest figures show an ongoing increase in the efforts of governments around the world to remove content from services like Google Play and YouTube. The new figures, which Google announced in a blog post, show that governments made 3,846 takedown requests in the first half of 2013, which is up from 2,285 requests in the previous six month period -- a 68 percent increase.

Overall, the requests targeted 24,737 pieces of content. In the case of requests to remove content critical of a government, Google says it complied in only one third of the cases, but did not say how many times it refused overall. The company refers to the requests as “censorship” and cited: “[A] worrying upward trend in the number of government requests, and underscores the importance of transparency around the processes governing such requests.” The increase in this report appears tied to a spike in requests from Turkey, which demanded the most takedowns of any country (1,673). The second biggest number came from the United States (545), which was followed by Brazil, Russia and India.

Bill would require 'kill switch' for smartphones

Two California officials have announced plans to introduce legislation requiring smartphones to have a "kill switch" that would render stolen or lost devices inoperable.

State Sen Mark Leno (D-CA) and San Francisco District Attorney George Gascon announced that the bill they believe will be the first of its kind in the United States will be formally introduced in January at the start of the 2014 legislative session. State Sen Leno joins AG Gascon, New York Attorney General Eric Schneiderman and other law enforcement officials nationwide who have been demanding that manufacturers create kill switches to combat surging smartphone theft across the country. "One of the top catalysts for street crime in many California cities is smartphone theft, and these crimes are becoming increasingly violent," Sen Leno said. "We cannot continue to ignore our ability to utilize existing technology to stop cellphone thieves in their tracks. It is time to act on this serious public safety threat to our communities." Almost 1 in 3 US robberies involve phone theft, according to the Federal Communications Commission. Lost and stolen mobile devices -- mostly smartphones -- cost consumers more than $30 billion in 2012, according to a study cited by Schneiderman in June. In San Francisco alone, more than 50 percent of all robberies involve the theft of a mobile device, and in Los Angeles mobile phone thefts are up almost 12 percent in 2012, the San Francisco DA's office said.

China grants renewed press cards to several Western journalists facing expulsion

Several Western journalists facing expulsion from China were given renewed press cards by the Chinese government, allowing them to apply for visas to remain in the country. The move appears to end a weeks-long standoff between the government and journalists that included a personal appeal by Vice President Joe Biden to China’s president.

Journalists from the New York Times, Bloomberg News and other organizations were facing the loss of their Chinese visas around the end of December, at which point they and their families would be forced to leave the country. While most reporters at the Times and Bloomberg still do not have visas, receiving their press credentials removes a main impediment to their applications. All of Bloomberg’s foreign staff in China but only some at the Times received press cards, members of both organizations said. A handful of Times journalists have not received press cards and thus continue to face the prospect of being forced to leave, according to journalists in Beijing working on their behalf.

Sen Paul: Clapper should resign for 'lying to Congress'

Sen Rand Paul (R-KY) called on Director of National Intelligence James Clapper to resign his post. Sen Paul also floated the idea of prosecuting Clapper for perjury.

Sen Paul said Clapper’s misleading testimony to a Senate panel in early 2013 about a National Security Agency program that collected phone records has hurt the United States far worse than anything leaker Edward Snowden has done. “I find really that Clapper is lying to Congress is probably more injurious to our intelligent capabilities than anything Snowden did because Clapper has damaged the credibility of the entire intelligence apparatus, and I'm not sure what to believe anymore when they come to Congress,” Sen Paul said. Sen Paul has been consistently critical of Clapper and the surveillance program since its public disclosure in 2013. “I really think that in order to restore confidence in our intelligence community, I think James Clapper should resign,” Sen Paul said. When asked if the Justice Department should file criminal charges against Clapper, Sen Paul said that if they do not, “you're just encouraging people to lie to us.”

Publisher’s Letter Explains Limits on Branded Content at the New York Times

Seeking to allay potential newsroom concerns about the introduction of a digital product called native advertising, the publisher of The New York Times said that features like a color bar and the words “Paid Post'’ would enable readers to identify material as advertising content.

In a letter to employees, Arthur O. Sulzberger Jr, also said there would be “strict separation between the newsroom and the job of creating content for the new native ads.'’ Native advertising, also known as branded content, is information provided by marketers that is designed to look more like the articles it appears alongside. It has led to controversy in the journalism industry because it blurs the line between editorial content and advertising. But it has also been viewed as a valuable new source of revenue for news organizations struggling to compensate for the decline of print advertising. The platform is “relatively new and can be controversial,” Sulzberger said in his letter, but is necessary to help “restore digital advertising revenue to growth.” The advertisements will appear digitally only and will start in January, said Meredith Kopit Levien, executive vice president for advertising at The Times. They will appear first on the newspaper’s website, placed on the home page and on the front pages of particular sections, in small numbers at first. The advertisements will take all of the forms that editorial content does, she said, “like narrative, video, data visualization.” Kopit Levien said the paid pages would have a blue border, and “visually, through design cues, it will be made clear that this is not coming from the newsroom.” In his letter, Sulzberger said the ads would also display the relevant company logo and a different typeface. The ads will be created by members of the advertising staff.

Lessons from the C Block: Auction complexity leads to disastrous consequences for consumers

[Commentary] If we do want to ensure that “smaller’ companies compete in the mobile market, how do we answer the following two questions? 1) Should the government extend corporate welfare to T-Mobile and Sprint -- either in the form of direct subsidization or limits on competing bidders -- to make these firms more competitive in the auctions, and 2) can the Federal Communications Commission effectively micro-manage the auction to get the desired post-auction result?

When examined in the bright light of day, the answer to the first question seems clear. T-Mobile and Sprint are hardly undercapitalized and are likely to be strong competitors in an open auction. The C Block exemplifies how even limited government restrictions can add considerable complexity. Secondly, after the auction, but before the FCC could take a victory lap on how it had simultaneously raised competition and record revenue, the bottom fell out: designated entities couldn’t pay. The FCC quickly instituted a license return policy so that it could collect and re-auction the licenses. Many winners did return the licenses but of course, much damage to consumer welfare had already been done as the time-to-market of spectrum resources was greatly increased.

2014: The year AT&T’s mobile network goes small

AT&T has been poking and prodding small cells in its labs and out in the wild. The tiny little base stations will allow AT&T to surgically insert capacity into its HSPA and LTE networks in high-traffic areas like malls, stadiums and public areas where its customers are using their smartphones the most.

Those cells will bring a lot of benefits for consumers. They’ll offer up to greater speeds to customers in dense areas such as downtown financial districts and other high-traffic zones. They’ll bring stronger signals to the dead zones between cells on AT&T’s network. And they’ll bring greater coverage and capacity in difficult-to-penetrate indoor locations. Finally they’ll free up room on the macro network, giving customers in between small cells a better experience. But first AT&T has to work out the kinks. It’s a tricky business, AT&T Associate VP of Small Cells Gordon Mansfield said in a recent interview, because AT&T can’t just plop down a small cell anywhere. Since AT&T is using the same frequencies for small cells it’s using for its umbrella macro-network, interference becomes an issue. If the signal clash between the big and small networks is too great, customers won’t get faster connections. Instead, their phones would only see white noise.

Handicapping Google’s Assault on the TV Industry

This report addresses the following points:

  • The ripest adjacent market for Google is television. Online video is gaining rapidly and related advertising is beginning to show metrics exceeding the effectiveness of traditional TV. As these lines blur Google wins by gaining access to TV monies, and as dollars migrate Google increases the value of its current advertising on a per unit basis.
  • Google’s summer 2013 release of Chromecast further adds to a large and growing set of tools that position Google to challenge the traditional television model.
  • Google’s dominant market share in online and mobile advertising now accounts for more than 5x its nearest competitor. However, gaining a larger share will be difficult even for Google, meaning new markets will be needed.

Recent reports indicate that Google may enter into some sort of over the top pay TV equivalent. Live events -- particularly sports -- are critical for this equation to work, both in attracting and retaining subscribers, but also in terms of supporting an economically sound advertising payload.

NSA reform panel: Foreigners actually have privacy rights, too!

The Report and Recommendations of The President’s Review Group on Intelligence and Communications Technologies is absolutely stuffed with references to the privacy considerations owed to non-US citizens.

And while some of this is of course a mere damage control exercise in the face of world outrage, the rhetoric does at least occasionally rise to striking heights. "There are sound, indeed, compelling reasons to treat the citizens of other nations with dignity and respect," the report says in an entire chapter devoted to surveillance of non-US persons. This is due in part to self-interest, since "if we are too aggressive in our surveillance policies under section 702 [allowing non-FISA warrantless collection and targeting of non-US persons], we might trigger serious economic repercussions for American businesses, which might lose their share of the world’s communications market because of a growing distrust of their capacity to guarantee the privacy of their international users. Recent disclosures have generated considerable concern along these lines."

But the report takes a more principled position, too. “Perhaps most important, however, is the simple and fundamental issue of respect for personal privacy and human dignity -- wherever people may reside.” In other words, the report calls for an international right to digital privacy.

Judge Blocks Georgia’s $5 Fee on Cellphone Service for Poor

A federal judge has stopped Georgia from charging residents to participate in a federal program that provides low-cost or free cellphone service for low-income people.

The decision to halt the $5-a-month fees comes two months after Georgia became the first state to impose fees on people who receive subsidized phone service through the Federal Communications Commission’s Lifeline program. Georgia decided in favor of the $5 charge in order to rein in abuses and discourage aggressive sales tactics. The rule, which was set to take effect in January, required participating carriers to bill Lifeline consumers $5 every month or provide them with 500 minutes of call time per month. Currently, carriers typically provide much less than that. The rationale is that having to offer the extra minutes would be enough to deter companies from aggressively -- and perhaps fraudulently -- hawking free phones. CTIA-The Wireless Association, a trade group that represents the wireless industry, sued the Georgia Public Service Commission, claiming that the fees would harm customers who couldn’t afford to pay them and were preempted by federal law that prohibits states from regulating phone rates. US District Judge Richard W. Story agreed with CTIA, granting a temporary injunction that suspends the fees as the litigation plays out. “[W]hile the status quo may permit some level of fraud to continue, the public interest tilts in favor of providing telephone services to low-income households that otherwise would be unable to afford mobile phones,” Judge Story wrote in a six-page decision.