July 2016

T-Mobile hammers Verizon's new plans, proclaims US wireless market competitive

In a filing at the Federal Communications Commission, T-Mobile hammered Verizon's new price plans as it said competition in the US wireless market is thriving.

The operator cited its uncarrier marketing strategy, which has disrupted the wireless industry in several ways and driven T-Mobile's recent success. The company said some of its tactics have been adopted by other major wireless carriers – Verizon and AT&T, namely – illustrating that competition is thriving in the US mobile market. The filing was submitted as a public comment in advance of the FCC's annual report on the state of competition in the wireless industry, which is due later this year.

What happens when the sun sets on a smart product?

A recent Federal Trade Commission investigation into one company’s decision to stop providing support for an Internet of Things (IoT) device illuminates some pitfalls IoT businesses should avoid in introducing and marketing these innovative products.

In that case, a company acquired the marketer of a “Smart Home Hub” and then decided to shut down support for the device, thereby rendering it inoperable. Although we closed that investigation, it raises broader issues about what happens when an IoT product or service, or the updates and support for them, stops. First, there are serious issues at play when consumers purchase products that unexpectedly stop functioning due to a unilateral decision by the company that sold it. Second, when a company stops providing technical support, including security updates, for an IoT device, consumers may be left with an out-of-date product that is vulnerable to critical security or privacy bugs. So, if you’re an IoT business, product designer, or marketer, this scenario should make a light bulb go on in your head.

Ask yourself:

  • Are you selling a device, a service, or both? What are you telling consumers you’re selling?
  • Are consumers getting a fixed-term rental or subscription, or are they getting something they will own and can rely on for the life of the device?
  • Would reasonable consumers expect to be able to keep using the device – and have it be fully functional – if the company, even many years later, rides off into the sunset? Would they expect the device to have an “expiration date”?
  • Could consumers keep using your device in the ways they would reasonably expect based on their experience with similar devices?
  • What did you tell consumers at the outset – or what would they otherwise expect – about the security you would provide for the life of the device?

Digital Equity in Action—Schools Can Share How They Are Addressing 21st Century Educational Challenge

The Consortium for School Networking (CoSN) is inviting school districts to share how they are improving digital equity—and providing out-of-school high-speed broadband connectivity to students in their communities. Digital equity is considered a top 21st century educational challenge.

Only 3 percent of teachers in high-poverty schools reveal that their students have the digital tools necessary to complete homework assignments, compared to 52 percent of teachers in more affluent schools. “For students to leave school grounds once the bell rings and not have high-quality connectivity puts them at a learning disadvantage. They are unable to harness the benefits of personalized learning and reach their potential in today’s digitally-based environment,” said Keith Krueger, CEO of CoSN. “The good news is many schools are making big gains to accelerate the connection for students outside of school. We want to showcase those positive efforts and provide pathways for additional communities to follow.” To participate, school districts must complete a short, five-minute survey that asks, How are you collaborating with your community to provide broadband access outside of school for students? Schools that complete the survey will be showcased by CoSN and considered for recognition at a special national event in Washington, DC.

FCC Chairman Tom Wheeler Announces Staff Changes

Federal Communications Commission Chairman Tom Wheeler announced the appointment of Holly Saurer as legal advisor, and the transition of Diane Cornell to a role in the FCC’s International Bureau. Starting July 13, Saurer will work primarily on international and consumer affairs issues.

Saurer served in various positions in the Media Bureau, including as associate bureau chief, senior legal advisor to the bureau chief and attorney-advisor with the bureau’s Policy Division. She has also served as an acting advisor for FCC Commissioners Jessica Rosenworcel and Mignon Clyburn. Prior to joining the Commission, Saurer worked at the Washington DC offices of Drinker Biddle & Reath and Miller & Van Eaton. Cornell will join the International Bureau where she will continue to advance the Commission’s international priorities, and will serve as special advisor to the Chairman. She has served as a key legal and policy advisor to the Chairman since he joined the Commission, with vital contributions made to process reform, international communications policy and consumer affairs.

Cornell has previously served as a legal advisor to three Commissioners; held leadership positions in the Wireless, International and Common Carrier Bureaus; and served as president of the Federal Communications Bar Association.

Multicultural Media, Telecom and Internet Council President: Build Dialogue Around Digital Issues

Multicultural Media, Telecom and Internet Council president Kim Keenan called on attendees at the 14th annual Access to Capital and Telecom Policy Conference July 13 to help make important DC telecommunication issues understandable to the wider public they are affecting. In opening remarks for a Federal Communications Commission luncheon, Keenan said she was deeply concerned about the spectrum auction and that, in terms of minority ownership, the media landscape following that auction could look like it did "100 years ago."

The two-day MMTC conference includes a panel session on the impact of the auction on diversity. One concern is that the auction will reduce the number of channels -- including multicast channels -- owned by or programmed for minorities, given that the FCC is incentivizing broadcasters to give up spectrum. Keenan said that while policymakers tend to have "wonky conversations with ourselves" about those issues, when she talks to groups outside Washington about issues like set-top boxes or network neutrality, their eyes "glaze over." She suggested it is important to open those eyes to the digital future and called on her audience to help make those issues understandable and encourage dialogue. "If we have a digital future that does not connect everyone, we don't have a digital future," she said, adding, "We don’t want it to be easier to be stopped by police than to get access to capital by people of color."

Drones Taking Our Network to New Height

Imagine you’re at a concert watching your favorite band, and out of the corner of your eye you notice a tethered drone hovering nearby. But this drone isn’t taking photos or videos of the band. It's temporarily providing enhanced LTE wireless coverage at the packed venue so you, along with thousands of others in attendance, can simultaneously send photos and videos to share the moment.

While this isn’t a reality yet, we expect many different drone uses in the future. This week, we reached another milestone by launching the trial phase of our national drone program. Led by Art Pregler, our national drone program is driving innovation, and focuses on how AT&T and our customers can benefit from drone-based solutions. We expect our experiences will lay the foundation for new, exciting drone applications. Possible uses include Flying COWs (Cell on Wings) providing LTE coverage at large events or even rapid disaster response. A Flying COW may even be able to provide coverage when a vehicle is unable to drive to a designated area.

China hacked the FDIC - and US officials covered it up, report says

China's spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 -- and American government officials tried to cover it up, according to a Congressional report. The House of Representative's Science, Space and Technology Committee released its investigative report on July 13. It presents the FDIC's bank regulators as technologically inept -- and deceitful.

According to congressional investigators, the Chinese government hacked into 12 computers and 10 backroom servers at the FDIC, including the incredibly sensitive personal computers of the agency's top officials: the FDIC chairman, his chief of staff, and the general counsel. When congressional investigators tried to review the FDIC's cybersecurity policy, the agency hid the hack, according to the report. Investigators cited several insiders who knew about how the agency responded. For example, one of the FDIC's top lawyers told employees not to discuss the hacks via e-mail -- so the e-mails wouldn't become official government records. FDIC Chairman Martin Gruenberg is being summoned before the Congressional committee on July 14 to explain what happened.