October 20, 2015 (China Keeps Hacking)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, OCTOBER 20, 2015 (Let’s Co Cubs!)
Today's Event: The 2015 Everett C. Parker Lecture: https://www.benton.org/node/229033
PRIVACY/SECURITY
China still trying to hack US firms despite Chinese President Xi’s vow to refrain, analysts say
FBI probes claim that hacker broke into CIA director’s private e-mail
Android phones on Verizon, AT&T face LTE security vulnerability, researchers say
More China App Store Headaches for Apple: Hundreds of Apps Found to Collect User Data
Lawmakers want to fine carmakers $5,000 a day for not having a privacy policy
Volkswagen, car hacking, and copyrights: Getting the facts right (AEI op-ed) [links to American Enterprise Institute]
Congress Should Extend Rail Safety Deadline With Safeguards (NYT Editorial) [links to New York Times]
How Max Schrems took on American tech companies over privacy -- and won [links to Washington Post]
Five Myths About Safe Harbor - IAPP op-ed [links to Benton summary]
Survey: More consumers password protecting their smartphones [links to Hill, The]
Making the case for Cyber Defense Spending in Local Government [links to nextgov]
INTERNET/BROADBAND
FCC Reminds ETCs of High-Cost Support Requirements - public notice
Banning zero rating: Reducing consumer choice in the name of preserving consumer choice - Telefónica op-ed
Thin underwater cables hold the Internet. See a map of them all. [links to Vox]
Technology giants bypass Washington to reach world leaders [links to Brookings]
Facebook's Internet.org is more than charity (Daniel Sparks Op-Ed) [links to USAToday]
Utah Foundation Report Highlights Pioneering Work for Advanced Broadband [links to BroadbandBreakfast]
WIRELESS/SPECTRUM
Deutsche Telekom Said to Weigh New Antitrust Complaint Against Google
FCC Form 740 Suspension Order [links to Federal Communications Commission]
Will Patent Wars Disrupt Innovation in the 5G era? [links to International Telecommunication Union]
ELECTIONS & MEDIA
The inside story of Trump campaign’s connections to a big-money super PAC
Trump Campaign Reportedly Threatened To Sue Washington Post Over Super PAC Story [links to Benton summary]
Hillary Clinton attracts a rarity on the campaign trail -- an overwhelmingly female press corps
The Tech Start-Up Running Hillary Clinton's Campaign [links to Benton summary]
Clinton’s ‘Please Hack Me’ Server - WSJ analysis [links to Benton summary]
National Hispanic Leadership Agenda Members Call For Saturday Night Live To Drop Trump [links to Media Matters]
Canadian newspapers run huge political ads on front pages [links to Poynter]
GOVERNMENT & COMMUNICATIONS
OPM Says it Breaks Encryption to Monitor Employees' Browsing Habits
Obama Administration wants to change how government buys computers [links to Benton summary]
State and Local Internet of Things Activity Heats Up [links to Benton summary]
CONTENT
YouTube Will Make You Pay to See Some of Its New Videos
AT&T and Verizon Plot Different Strategies to Develop Video Business
Hispanics Going Over the Top [links to Multichannel News]
Regulate fantasy sports in California [links to San Jose Mercury News]
TELEVISION
Cablevision drops TV bundle lawsuit against Viacom
Publishers Straddle the Apple-Google, App-Web Divide [links to Benton summary]
Humans Still Matter in Our App-Driven World [links to Multichannel News]
Media Rights Are Set to Surpass the Gate [links to Benton summary]
HEALTH
Constant smartphone use comes with consequences [links to San Jose Mercury News]
CHILDREN AND MEDIA
Teens’ Media Habits [links to Benton summary]
EDUCATION
The most innovative schools in America [links to CNNMoney]
JOURNALISM
Kevin Merida of Washington Post to Take Over ESPN Project [links to New York Times]
Rieder: Newspapers seek Silicon Valley magic [links to USAToday]
Knight Foundation is giving $1.3 million to help 3 legacy newsrooms ‘speed up digital adoption’ [links to Poynter]
Accuracy in Media's Month of Bad Benghazi News [links to Huffington Post]
LOBBYING
COMPTEL Changes Name to INCOMPAS [links to Benton summary]
COMPANY NEWS
Amazon hits back at New York Times probe into workplace culture [links to Hill, The]
Yahoo Talent Exodus Accelerates, as Marissa Mayer’s Turnaround Flounders [links to Revere Digital]
Netflix Faces Challengers in Its Push to Expand Globally [links to New York Times]
AGENDA
Week ahead: FCC to vote on prison phone call reforms
A Broadcaster's Guide To Washington Issues - TVNewsCheck analysis [links to Benton summary]
STORIES FROM ABROAD
China still trying to hack US firms despite Chinese President Xi’s vow to refrain, analysts say
[links to http://www.fiercewireless.com/story/nokia-wins-chinese-antitrust-approva...]
Canadian newspapers run huge political ads on front pages [links to Poynter]
PRIVACY/SECURITY
CHINA STILL TRYING TO HACK US FIRMS DESPITE CHINESE PRESIDENT XI'S VOW TO REFRAIN
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
Chinese government hackers have attempted in the past few weeks to penetrate the networks of US companies to steal their secrets despite a pledge by Chinese President Xi Jinping that they would not do so. Chinese hackers have targeted at least seven US companies since President Xi vowed in September that his country would not conduct economic cyberespionage -- the theft of trade secrets and intellectual property for the benefit of the nation’s industries. In the three weeks since President Xi left Washington -- including the day after he left, on Sept. 26 -- hackers linked to the Chinese government have attempted to gain access to tech and pharmaceutical companies’ networks, said Dmitri Alperovitch, CrowdStrike co-founder and chief technology officer, who released a report on the issue. The efforts continue to the present, sometimes several times a day, and appear to be distinct from traditional intelligence gathering, which is not covered by President Xi’s pledge, Alperovitch noted. The US intelligence community is also seeing continued signs of economic cyberespionage by Chinese hackers, apparently.
benton.org/headlines/china-still-trying-hack-us-firms-despite-chinese-president-xis-vow-refrain-analysts-say | Washington Post | LA Times
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FBI PROBES CLAIM THAT HACKER BROKE INTO CIA DIRECTOR'S PRIVATE E-MAIL
[SOURCE: Washington Post, AUTHOR: Greg Miller]
The FBI is investigating claims by an anonymous computer hacker that he stole potentially sensitive files from the private e-mail account of CIA Director John Brennan and posted them online. The exposed documents appear to include a roster of senior US national security officials with their phone and Social Security numbers, a log of calls made by former CIA deputy director Avril Haines and a list of e-mail addresses that the hacker claimed were taken from Brennan’s AOL account. A CIA spokesman said, “We are aware of the reports that have surfaced on social media and have referred the matter to the appropriate authorities.” Other US officials said that the FBI had launched an inquiry and that the Secret Service was investigating related claims that the hacker obtained private information from Homeland Security Secretary Jeh Johnson. The potential breaches are likely to intensify security concerns over senior government officials’ use of private e-mail and Internet accounts.
benton.org/headlines/fbi-probes-claim-hacker-broke-cia-directors-private-e-mail | Washington Post
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ANDROID PHONES ON VERZON, AT&T FACE LTE SECURITY VULNERABILITY, RESEARCHERS SAY
[SOURCE: Fierce, AUTHOR: Phil Goldstein]
Verizon Wireless and AT&T Mobility customers with Android phones are vulnerable to security and privacy breaches when using Voice over LTE, according to an advisory posted by security researchers. As ZDNet notes, the advisory, which posted by Carnegie Mellon University's public vulnerability database (CERT) on Oct 16, was based on a paper published by South Korean academics and security researchers. "A remote attacker on the provider's network may be able to establish peer-to-peer connections to directly retrieve data from other phones, or spoof phone numbers when making calls," the advisory said about the vulnerability's potential impact. "A malicious mobile app for Android may be able to silently place phone calls without the user's knowledge." According to the advisory, Google's Android platform does not have appropriate permissions security for LTE networks, especially for VoLTE, and also suffers from improper access control. "Some networks allow two phones to directly establish a session rather than being monitored by a SIP server, thus such communication is not accounted for by the provider," the advisory states. "This may be used to either spoof phone numbers or obtain free data usage such as for video calls."
benton.org/headlines/android-phones-verizon-att-face-lte-security-vulnerability-researchers-say | Fierce
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MORE CHINA APP STORE HEADACHES FOR APPLE: HUNDREDS OF APPS FOUND TO COLLECT USER DATA
[SOURCE: Revere Digital, AUTHOR: Dawn Chmielewski]
China continues to present some unusual challenges for Apple, which confirmed that it has removed apps that collected private user data such as e-mail addresses and device identifiers. Researchers from SourceDNA found 256 apps using a third-party advertising tool that harvested personal information and sent it off to its own servers. The software developer kit in question comes from a Chinese mobile advertising company, Youmi. Apple issued a statement confirming that Youmi’s software collected private information in violation of Apple’s security and privacy policies. These apps have been removed from the App Store
benton.org/headlines/more-china-app-store-headaches-apple-hundreds-apps-found-collect-user-data | Revere Digital | The Verge
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LAWMAKERS WANT TO FINE CARMAKERS $5,000 A DAY FOR NOT HAVING A PRIVACY POLICY
[SOURCE: Washington Post, AUTHOR: Brain Fung]
Cars of the future are likely to be highly advanced machines with knowledge of the driver's every decision: Do you speed? Brake too hard? Wear a seatbelt? All this information could potentially be used against you by insurers, data brokers or hackers -- potentially without your knowledge. So House lawmakers are proposing a measure, as part of a draft bill to be debated during the week of Oct 19, that would open carmakers up to fines of $5,000 a day if they don't submit a detailed privacy policy to the government. The policies should explain what information a manufacturer collects on drivers, according to the draft text, and lay out the choices consumers have about the use of the data. The automaker would also have to pledge not to keep the driving data for any longer than is necessary for "legitimate business purposes." There are a whole slew of other requirements, such as a proposed ban on hacking into car software. (Security researchers have objected to this section over concerns it could prevent them from detecting and warning of gaps in the companies' code.) Under the draft legislation, car manufacturers could be held liable if they violate any part of their own privacy policies or if they fail to file a privacy policy to begin with. But the maximum penalty automakers face would be limited to $1 million, and they would be shielded from Federal Trade Commission scrutiny for "unfair" or "deceptive" acts related to privacy as long as their privacy policies meet all the legislation's requirements.
benton.org/headlines/lawmakers-want-fine-carmakers-5000-day-not-having-privacy-policy | Washington Post
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INTERNET/BROADBAND
FCC REMINDS ETCS OF HIGH-COST SUPPORT REQUIREMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission reminds all eligible telecommunications carriers (ETCs) that receive support from the Universal Service Fund's s high-cost mechanisms (whether legacy high-cost program support or
Connect America Fund support) of their obligations to use such support only for its intended purposes of maintaining and extending communications service to rural, high-cost areas of the nation. Expenditure of legacy high-cost or Connect America support for any other purpose is misuse and may subject the recipient to recovery of funding, suspension of funding, enforcement action by the Enforcement Bureau pursuant to the Communications Act of 1934 or our rules, and/or prosecution under the False Claims Act. In a joint statement, FCC Commissioners Mignon Clyburn and Michael O'Rielly said, "Today’s public notice helps ensure that scarce consumer dollars are targeted to only costs directly related to deploying and providing service...To be clear, the vast number of providers are good actors and would never take advantage of the system, but there are unfortunate examples to the contrary and spending on outrageous items has occurred. We therefore support today’s public notice to remind all providers of expenditures that should not be supported by universal service."
[WC Docket No. 10-90, WC Docket No. 14-58]
benton.org/headlines/fcc-reminds-etcs-high-cost-support-requirements | Federal Communications Commission | Clyburn and O'Rielly Joint Statemenet | Pai Statement
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ZERO RATING
[SOURCE: American Enterprise Institute, AUTHOR: Fernando Herrera-González]
[Commentary] Promotions are ubiquitous, and most consumers appreciate them. Imagine, however, that a shopping center – Walmart for instance – was fined $200,000 for allowing consumers to taste its store-brand olives. Seems unreasonable, right? It is hard to understand why Walmart should be banned from letting us test their olives. However, this is exactly what has happened in the Netherlands with Vodafone, in the world of the Internet. Vodafone offered customers in that country the chance to watch HBO without deducting the data traffic consumed for this service from their monthly data allowance, a practice commonly referred to as zero rating. The ACM, which regulates telecommunications in that country, fined Vodafone on the grounds that this promotion reduces consumer choice, as incredible as this reasoning may seem. Unfortunately, the case of the Netherlands is not the exception anymore, as this trend has already spread to other countries.
[Fernando Herrera-González is Regulatory Economic Manager at Telefónica]
benton.org/headlines/banning-zero-rating-reducing-consumer-choice-name-preserving-consumer-choice | American Enterprise Institute
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WIRELESS/SPECTRUM
DEUTSCHE TELEKOM SAID TO WEIGH NEW ANTITRUST COMPLAINT AGAINST GOOGLE
[SOURCE: New York Times, AUTHOR: Mark Scott]
Deutsche Telekom, the German telecommunication company, has long been an outspoken critic of United States tech companies’ dominance over how Europeans access online services. Google, in particular, has been in the company’s sights. More than a year ago, Deutsche Telekom filed a complaint with the European Commission over its antitrust investigation into Google’s online search practices. Now, Deutsche Telekom, which owns a controlling stake in T-Mobile US, the cellphone carrier, appears ready to get involved in Europe’s investigation into Google’s Android mobile software as well. The complaint, which may be submitted by early November, focuses on whether Google uses its Android mobile operating system to unfairly promote its own products like Google Maps and online search over those of rivals, apparently. They would speak only on the condition of anonymity because they were not authorized to speak publicly. The move by Deutsche Telekom would make it an official complainant in the case, allowing the company to provide information and potential evidence on why it believes Google abuses its control over Android. The evidence could include data on which mobile services the carriers’ tens of millions of users regularly access on their cellphones. Such information could help European competition officials decide whether to bring formal charges against Google linked to the region’s Android investigation.
benton.org/headlines/deutsche-telekom-said-weigh-new-antitrust-complaint-against-google | New York Times
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ELECTIONS & MEDIA
THE INSIDE STORY OF TRUMP CAMPAIGN'S CONNECTIONS TO A BIG-MONEY SUPER PAC
[SOURCE: Washington Post, AUTHOR: Matea Gold, Tom Hamburger, Jenna Johnson]
As he brags that he is turning down millions of dollars for his presidential campaign, Donald Trump has leveled a steady line of attack against his rivals: that they are too cozy with big-money super PACs and may be breaking the law by coordinating with them. “You know the nice part about me?” he told reporters in Iowa in August. “I don’t need anybody’s money.” What Trump doesn’t say is that he and his top campaign aide have connections to a super PAC collecting large checks to support his candidacy -- a group viewed by people familiar with his campaign as the sanctioned outlet for wealthy donors. During the summer of 2015, Trump appeared at at least two events for the Make America Great Again PAC, which took his campaign slogan as its name and received financing from his daughter’s mother-in-law. A consultant for the super PAC is a Republican operative who has previously worked with Trump’s campaign manager, Corey Lewandowski, according to several people with direct knowledge of their ties. The Trump campaign’s links to the low-profile group could undercut the candidate’s posture as the only Republican in the race who has not sought to curry favor with wealthy donors, a central part of his anti-establishment message.
benton.org/headlines/inside-story-trump-campaigns-connections-big-money-super-pac | Washington Post
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HILLARY CLINTON ATTRACTS A RARITY ON THE CAMPAIGN TRAIL -- AN OVERWHELMINGLY FEMALE PRESS CORPS
[SOURCE: Politico, AUTHOR: Hadas Gold]
A few dozen reporters who regularly cover Hillary Clinton gathered in August to watch the first GOP debate at her headquarters in Brooklyn. MSNBC's Alex Seitz-Wald stopped for a moment and looked around. A second later, he realized what seemed strange: He was the only man in the room. At least 18 national media outlets have female reporters on the Clinton beat, across print, online, radio and TV. Some, such as NBC, have as many as three. Local outlets in Iowa and New Hampshire have female reporters on Clinton, as well. No one can remember a political press corps this heavily female. The change seems to be a combination of more women doing political reporting in general, and many more being drawn to Clinton's potentially historic candidacy. It's made for an unusual atmosphere, with a female candidate sparring with a nearly all-female corps of reporters. It hasn’t brought Clinton more positive coverage, according to those both inside the campaign and outside it. But reporters and press aides alike note that there’s a different vibe nonetheless, punctuated by occasional expressions by the candidate herself of camaraderie for fellow pioneers.
benton.org/headlines/hillary-clinton-attracts-rarity-campaign-trail-overwhelmingly-female-press-corps | Politico
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GOVERNMENT & COMMUNICATIONS
OPM SAYS IT BREAKS ENCRYPTION TO MONITOR EMPLOYEES' BROWSING HABITS
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
Through a technique called "SSL decryption," the Office of Personnel Management (OPM) sees through secure online transactions between a worker’s computer inside the agency firewall and an external website. As with massive eavesdropping by the National Security Agency, the idea of organizations routinely intercepting workers’ communications riles some civil liberties activists, acknowledged Jeff Wagner, OPM director of security operations. "When I bring up SSL decryption -- first, it's always the 'How do you do it without the [Office of General Counsel] getting mad at you?'-discussion, which is true," he said. "You are going to get a lot of privacy questions." OPM officials peek at what their employees are browsing, because, increasingly the bad guys are using tainted websites as a launching pad, said Wagner.
benton.org/headlines/opm-says-it-breaks-encryption-monitor-employees-browsing-habits | nextgov
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CONTENT
YOUTUBE WILL MAKE YOU PAY TO SEE SOME OF ITS NEW VIDEOS
[SOURCE: Revere Digital, AUTHOR: Peter Kafka]
YouTube, the world’s biggest video site, is readying a slate of programming that will only be available to people who join its upcoming subscription services. YouTube will announce some of that programming, which it is helping to fund, on Oct 21. Industry sources say the programming is the product of an initiative the site announced in 2014, when YouTube said it would “fund new content from some of our top creators." At the time, YouTube didn’t say that stuff it was funding would be placed behind a paywall. But industry sources say the site now intends to use at least some of the content it is bankrolling as a bonus for its premium subscription service, which will also include features like ad-free videos. YouTube will continue to operate a free, ad-supported version of the site, and has said that all of the videos that appear on the free site will be available on its paid version -- which is why YouTube is insisting that all video makers who make money from YouTube ads need to participate in the subscription service as well.
benton.org/headlines/youtube-will-make-you-pay-see-some-its-new-videos | Revere Digital | Wall Street Journal
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AT&T AND VERIZON PLOT DIFFERENT STRATEGIES TO DEVELOP VIDEO BUSINESS
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta]
Investors will get fresh insight into old telecommunication’s new media strategies when Verizon and AT&T report quarterly results. The two companies have long resembled each other but they are on different paths to find growth in the video business. AT&T made a bet on television with its $49 billion purchase of DirecTV in July that vaulted it to become the largest pay-TV company in the U.S. Verizon is building out a mobile video service, costing at least a few hundred million dollars, called go90 to target millennials. While AT&T pursues a satellite-based business, Verizon is sticking to its knitting by focusing on wireless. Chief Executive Lowell McAdam has ruled out an AT&T-like strategy saying the company isn’t interested in buying the television business of DirecTV’s rival Dish Network. Instead, Verizon recently launched its own stand-alone wireless video service -- which was preceded by a number of deals including the $4.4 billion acquisition of AOL. Wall Street is eager to hear any adoption and usage details, along with plans to get more content on the app when Verizon reports its third-quarter results on Oct 20. “For the first time we are seeing a divergence in strategy,” says Barclays analyst Amir Rozwadowski. Wall Street, he says, is still learning about their tactics and the companies’ relevant milestones along the way. “We are trying to distill what is success,” he says. Both strategies have been hit with questions on whether the hulking telecom companies possess the nimbleness needed to navigate rapidly shifting video-consumption habits.
benton.org/headlines/att-and-verizon-plot-different-strategies-develop-video-business | Wall Street Journal
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TELEVISION
CABLEVISION DROPS TV BUNDLE LAWSUIT AGAINST VIACOM
[SOURCE: Associated Press, AUTHOR: ]
Cablevision has dropped a two-year-old lawsuit against Viacom that accused the channel operator behind MTV, Nickelodeon and Comedy Central of charging it exorbitant fees if it did not also carry less popular channels like Logo and Palladia. The companies said in a joint statement they had resolved the legal fight and were "entering into mutually beneficial business arrangements." Cablevision, which has agreed to be bought by European telecommunications giant Altice for $17.7 billion, argued in its March 2013 suit that Viacom abused its market power and coerced it into taking channels it didn't want. While neither company would comment on the settlement, the new deal comes amid a broad ratings decline for traditional TV channels that has caused New York-based Viacom shares to fall 34 percent in 2015.
benton.org/headlines/cablevision-drops-tv-bundle-lawsuit-against-viacom | Associated Press | telecompetitor
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AGENDA
WEEK AHEAD: FCC TO VOTE ON PRISON PHONE CALL REFORMS
[SOURCE: The Hill, AUTHOR: Mario Trujillo, David McCabe]
The Federal Communications Commission will vote to cap the price that phone companies can charge inmates to make a call. The order, which is expected to be approved, will likely lead to a decrease in phone charges for prison and jail inmates, whose calling costs tend to far exceed the rates paid by the general public. Commissioner Mignon Clyburn of the Federal Communications Commission has worn the mantle of lowering prison call rates in recent years. She received a boost from more than a dozen Democratic Senators who endorsed the order, which includes a plan to discourage what Senators characterized as "kickbacks," money phone companies usually pay prisons to win exclusive phone service contracts. "Unfortunately, in many cases state prisons can receive a commission or 'kick-back' from contracts with phone service providers, thus incentivizing a regime in which prisons profit from charging inmates higher rates," the Senators wrote in a letter to the FCC. Under the order, the majority of prison inmates would not be charged more than 11 cents per minute for any call, a more than 50 percent cut from the current cap on interstate calls. Other service charges would be capped as well. The FCC is also setting its sights on the commissions that prison phone companies generally fork over to prisons upfront. The order would not ban that practice but "strongly discourages" it, according to a fact sheet.
benton.org/headlines/week-ahead-fcc-vote-prison-phone-call-reforms | Hill, The
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