April 2014

Is the US headed toward a cyber Cold War with China?

[Commentary] Are cyberattacks, security breaches, and mounting distrust between the US and Chinese governments ushering in a new Cold War era?

Given US officials’ rhetoric and actions in recent months, it might appear that such a sustained state of political and military tensions between the two superpowers is a serious threat.

A number of events have likely precipitated Cold War fears. The disclosures by National Security Agency whistleblower Edward Snowden of dragnet government surveillance, including a revelation that the US has infiltrated the networks of China-based telecommunications company Huawei, have understandably upset the Chinese. Additionally, the increasing number of cyberattacks and security breaches in both the US and China appear to have strained relations. And considering the “mounting tensions over China’s expanding claims of control over what it argues are exclusive territories in the East and South China Seas, and over a new air defense zone,” diplomatic relations between the two countries appear further strained, according to a report from The New York Times.

While US officials are trying to fend off threats of a new Cold War, Harvard Law School scholar Noah Feldman described his belief that rather than entering a new Cold War period, the US and China are instead enmeshed in what he calls a “cool war.”

“What the US and China have in common is that each is a global superpower in a contest for geopolitical supremacy,” Feldman told Ars. “What makes it 'cool' and not cold is that we still have a strong economic partnership with China. While both sides would like to reduce their dependence on the other, neither side wants escalation.”

Is California Reversing Course on Government Transparency?

A California appeals court recently ruled that emails and other forms of electronic communication about public business are not subject to the state’s Public Records Act if they’re conducted on a private computer or device.

But the decision’s impact on government transparency policies may cause aftershocks well beyond the Golden State’s borders. The 6th District Court of Appeal in San Jose’s March 27 opinion gives elected officials and government employees a free pass to conduct public business in secret on their own devices. And with other states grappling with data retention and transparency issues, the decision could serve as a model to pull back on open government efforts over the last several years.

The 6th District Court of Appeal’s ruling overturned a lower court decision that would have enabled a citizen to obtain messages sent on private devices through private accounts of the San Jose mayor and city council members. The California Supreme Court may take up the case, but if it doesn’t, the 6th District’s decision would stand, creating a precedent for similar situations in the future.

Google to President Obama: Leave Us Out Of Your Spying Fight

Google is getting nervous. On the one hand, the Internet behemoth wants the public to know it’s outraged by US surveillance programs and is aggressively lobbying for new rules to keep its customers’ data safe from the government’s prying eyes. But as public attention turns to data privacy, Google, Facebook, Yahoo, and other tech giants want to be sure that their own data-gathering practices don’t get lumped in with the federal spying programs that are the target of popular ire.

At the top of their worry list: The White House is holding the two up side-by-side. In President Barack Obama’s speech in January outlining National Security Agency reforms, he also ordered a John Podesta-led review of “big data,” the collection and storage of massive amounts of personal information -- including by private companies. The implicit message from the White House is that while the public has raised legitimate privacy concerns about NSA spying, similar data-mining practices by private companies shouldn’t escape scrutiny.

So when White House officials invited outside input from the public on the “big data” review, the tech world’s loudest voices were more than happy to offer an earful. The companies’ oft-repeated message to the administration: Don’t conflate your spying practices with our data-privacy plans.

How the IRS Is Leaving Your Financial Data Unprotected

The tax agency needs to better audit its own accounts, according to the Government Accountability Office.

GAO officials discovered that Internal Revenue Service was not sufficiently monitoring databases for abnormal activity that could indicate a breach. They also found poor encryption on key agency systems. In addition, this is the seventh consecutive year the IRS has failed to patch security vulnerabilities that could compromise financial data, a review of GAO reports dating back to 2007 reveals.

"Serious weaknesses remain that could affect the confidentiality, integrity, and availability of financial and sensitive taxpayer data," Nancy Kingsbury, GAO managing director for applied research and methods, and Gregory Wilshusen, GAO director for information security issues, wrote in a new report.

The IRS did not apply critical patches in a timely fashion to multiple systems, including programs for procurement and email, the auditors said. In addition, the agency was running unsupported software on workstations and databases that developers are not even issuing security fixes for anymore. GAO officials also noticed that systems handling transfers of financial data were not configured to encrypt login information.

Survey: Broadband Seniors See Internet as Hard to Give Up

More than half of senior citizens (56%) would find it “very hard” to give up the Internet, according to new research from Older Americans Technology Services (OATS) and New York Law School.

Perhaps surprisingly the Internet was the only communications means or device cited as “very hard” to give up by more than half of survey respondents. Slightly less than half of respondents said they would find it “very hard” to give up cable TV (47%), their cellphone (45%) or their landline phone (45%).

“Broadband clearly brings the world to senior citizens,” said John Horrigan, a senior advisor for the Advanced Communications Law and Policy Institute (ACLP) at New York Law School. “Without question it is helping seniors be more engaged with others. . . They clearly value being on line.”

The OATS and New York Law School research was based on a telephone survey of 1200 Americans aged 65 or older, including 780 broadband users and 420 who don’t use broadband.

Comcast has very bad reasons for wanting to buy Time Warner Cable

[Commentary] Comcast wants to own the Internet -- or, at least, the cables that carry it to most Americans’ homes. There is absolutely no way that Comcast can argue it would have meaningful competition in wired broadband or cable after the merger.

A merger would turn Comcast’s already long lead into overwhelming dominance. And Comcast knows this. So how can it convince the FCC that this isn’t a problem? By comparing itself to pretty much any company that offers Internet or video service in any form. Leaving aside its link to NBCUniversal, Comcast has three major offerings: wired broadband, cable TV, and video on demand. If a company has moved into any of those spaces, Comcast says it’s a competitor.

Taken individually, each of these companies do compete in some sense with parts of Comcast, but the comparison falls apart when you look at how many of these services run on its broadband network. Comcast offers carefully constructed revenue and market cap charts that place it and TWC at the very bottom of the scale -- except that it’s comparing itself to the entirety of multinational giants like Apple, AT&T, and Microsoft, as well as bizarre additions like Facebook.

Comcast can only claim new services compete with existing wired broadband if it vastly oversells their potential. Google announced tentative plans to bring Fiber to more cities in February, and Comcast has spun this into a pending flurry of expansions, ignoring the fact that Google has until the end of 2014 to announce its decision and currently operates in only two small markets. There’s no doubt it can spur competition, but certainly not on the scale that Comcast implies.

In the era of mobile, the web will live on

[Commentary] Chris Dixon, one of my favorite writers and investors, wrote a piece on what he sees as the inevitable decline of the web as the world transitions to mobile computing.

The thesis is simple -- mobile is dominating, and apps dominate mobile. Ergo, the web is dead. However, Chris misses a critical distinction that must be made to understand the future (or possible non-future) of the web. 'the web' heretofore has meant two things:

  1. A distributed platform for publishing content globally
  2. A frictionless delivery system for Internet-enabled software

Unfortunately, these two things are often conflated, which has led to countless confused conversations. Clearly, mobile will be the dominant medium for computing. Rich native mobile apps provide a significantly better customer experience over web apps loaded via a mobile browser. For this reason, Internet- enabled software will transition primarily to mobile apps.

However, that doesn't mean mobile apps will displace the web as the world's primary publishing platform. More devices and more users will only drive demand for more and better content. Content will continue to be primarily published via the web.

[Rosen is co-founder and CEO of Pantheon, a San Francisco-based professional website platform for developers, marketers, and IT users]

A golf channel tells Congress: Comcast-TWC would hurt little guys like them

Back9Network, a golf lifestyle cable channel, fears that the merger between Comcast and Time Warner could spell the end of its business.

The remarks by the CEO of the independent programming firm were made during a Senate Judiciary hearing on the proposed $45 billion cable and Internet mega merger.

James Bosworth, chief executive of the Hartford-based network, told lawmakers that for an independent programmer to succeed, it needs its channel to be carried by one of the big four paid television providers: Comcast, Time Warner Cable, Dish or Direct TV.

Senator fears merger could gag the right

Sen Mike Lee (R-UT) said he is worried that the proposed $45 billion merger between Comcast and Time Warner Cable could lead to a clampdown on conservative media.

The deal would put one massive cable and Internet provider in 27 of the top 30 markets in the country. But perhaps more importantly, that resulting cable giant would also own NBC Universal and its slew of subsidiary channels, which Comcast has owned since 2011. That could lead to unfair treatment of some content, Sen Lee warned, including shows appealing to the conservative right.

“I’ve heard some concerns expressed that the emerging Comcast, the post-merger Comcast, might have the incentive or even the predilection but certainly an enhanced capacity, due to its larger size, to discriminate against certain types of content, including political content,” he said at a hearing with Comcast and Time Warner Cable executives.

Tablet Television nears launch

Tablet Television, America’s first broadcast TV service for tablets, has revealed plans for its first beta market test in San Francisco and start of commercial operations in autumn 2014.

Utilizing existing ATSC distribution, viewers in the US will be able to receive direct, free over-the-air television transmissions to their portable devices. This first broadcast TV service for tablets will enable viewers to watch and record live broadcast content in HD in every market in the US and, in association with local broadcasting partners, will be able to provide on-demand packages. Additional features such as fully-integrated social television will be available to Internet connected viewers.