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Federal Bureau of Investigation officials quietly approached executives at Coca-Cola on March 15, 2009, with some startling news. Hackers had broken into the company’s computer systems and were pilfering sensitive files about its attempted $2.4 billion acquisition of China Huiyuan Juice Group, according to three people familiar with the situation and an internal company document detailing the cyber intrusion.

The Huiyuan deal, which collapsed three days later, would have been the largest foreign takeover of a Chinese company at the time. Coca-Cola, the world’s largest soft-drink maker, has never publicly disclosed the loss of the Huiyuan information, despite its potential effect on the deal. It is just one in a global barrage of corporate computer attacks kept secret from shareholders, regulators, employees -- and in some cases even from senior executives.


Coke Gets Hacked And Doesn’t Tell Anyone
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SNL Kagan is projecting retransmission consent fees to surpass $6 billion by 2018 (the prediction is $6.05 billion), almost triple the projection of $2.36 billion for 2012, and on pace for a little south of $1 per sub.

In November 2011, Kagan projected $4.86 billion by 2017. Kagan said that the increased projection was due to "the success of a wider range of TV station owners in securing sequentially higher retrans fees from multichannel operators over the last year of negotiated deals." Or put another way, more stations getting more money for their signals. But according to Kagan, that is still only 10% of the estimated $43 billion by 2015 that cable operators are projected to pay cable programmers in affiliate fees.


Kagan: Retransmission to Top $6 Billion by 2018
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Apparently, Federal Communications Commission Chairman Julius Genachowski said back in July that the FCC is on track to issue an order on its media ownership notice of proposed rulemaking by the end of the year and, according to FCC sources, he is expected to circulate an item for a vote at the Nov. 30 meeting.

The chairman's office had no comment. The FCC has been reviewing its rules in response to a quadrennial congressional obligation to do so, and a court order from the Third Circuit. According to sources, broadcasters have been beating a path to commission staffers' doors lately to talk about media ownership issues. If the order follows the Notice of Proposed Rulemaking (NPRM) on the media ownership rules that the commissioners approved last December, it will scrap the radio/TV cross-ownership rules, essentially preserve the FCC's attempted loosening of the newspaper/TV cross-ownership rules, which the FCC tried to do under former FCC Chairman Kevin Martin, but leave in place the radio and TV local market ownership caps.


FCC Sources: Chairman Wants Media Ownership Vote at Nov. 30 Meeting
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TechAmerica, the technology industry association, has named Dennis Stolkey, a senior vice president at HP Enterprise Services, as chairman of its board of directors. Stolkey will replace past Chairman Peter Boni, CEO Emeritus of Safeguard Scientifics, a venture capital firm.


TechAmerica Names New Board Chairman
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Chicago intends to do what no American city even remotely its size has ever pulled off – get a municipal broadband network built.

There isn’t a city in the country that doesn’t want better broadband infrastructure. Several cities, tiring of waiting for the market to create those networks, have attempted to build their own. The biggest ones have all failed, usually for one of two reasons: Some never got beyond the proposal stage, blocked by commercial interests complaining about the competition; of the few that actually got built, most were unable to monetize their networks. Chicago is trying a different route. “Chicago has no interest in being an Internet service provider, so the competitive issue is gone,” explained John Tolva, the city’s CTO. The city’s primary concern is economic development, and broadband is only one among several means to that end. So the city currently has out a request for interest (RFI), asking for ideas for how private interests can build and operate a gigabit fiber ring to connect a combination of a dozen existing and developing technology neighborhoods. The ring should support free Wi-Fi access in public places and should also be expandable to provide broadband access to underserved neighborhoods. The city will sift through the responses to the RFI, then craft a request for proposals (RFP). It would expect responses to the RFP by early next year and to begin implementing the plan shortly thereafter.


Muni broadband with a twist
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Several Washington (DC) sources say the Federal Communications Commission is circulating a draft notice of proposed rulemaking about what to do with the $185 million in Connect America Phase 1 funding that has not been claimed, although none were familiar with the details in the proposed NPRM. According to widely circulating rumors, the NPRM includes a proposal that would direct the money toward incumbent carriers.

Those were the carriers toward whom the funding initially was directed, but several of them opted not to accept it under the terms initially specified. At least one wireless carrier association has argued against directing the unclaimed funding to the telcos. “Wireless carriers offer the best opportunity to bring much needed broadband services to unserved and underserved areas, and it only makes sense for the FCC to consider proposals from wireless carriers,” said Steven K. Berry, president and CEO of the Competitive Carriers Association, in a statement. “Many of our members are ready and willing to build out these networks, but depend on USF support in order to do so. Wireless remains underfunded, and this could be an opportunity for the FCC to provide significant support for the services consumers want most.”


Industry Argues Fate of Unclaimed Connect America Funds
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A federal judge is ordering the Justice Department to disclose more information about its so-called “Going Dark” program, an initiative to extend its ability to wiretap virtually all forms of electronic communications.

The ruling by U.S. District Judge Richard Seeborg of San Francisco concerns the Communications Assistance for Law Enforcement Act, or CALEA. Passed in 1994, the law initially ordered phone companies to make their systems conform to a wiretap standard for real-time surveillance. The Federal Communications Commission extended CALEA in 2005 to apply to broadband providers like ISPs and colleges, but services like Google Talk, Skype or Facebook and encrypted enterprise Blackberry communications are not covered. The FBI has long clamored that these other communication services would become havens for criminals and that the feds would be left unable to surveil them, even though documents acquired by Wired shows that the FBI’s wiretapping system is robust and advanced. Little is known about the “Going Dark” program, though the FBI’s 2011 proposal to require backdoors in encryption found no backers in the White House. The FBI has never publicly reported a single instance in the last five years where encryption has prevented them from getting at the plaintext of messages.


Feds Ordered to Disclose Data About Wiretap Backdoors
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Pandora, the Internet music service, exemplifies the mega trends that have defined the current generation of Web companies -- mobility, dependence on the cloud, and slick, user-friendly design. No less, its performance as a public company has largely made investors happy.

Without Pandora it's hard to imagine what the current state of the online music-streaming space would look like. According to data released by the company, Pandora had 58.3 million users at the end of September, representing a 49% gain over the 39 million folks that used its service during the same period last year. Pandora controlled 6.5% of the U.S. radio listening audience, jumping from 4% last year. Pandora has benefited from the mobile boom. According to its own figures, 70% of the firm's total listening hours -- about 771 million last month alone -- come via mobile products and so-called "non-traditional sources," such as connected televisions and set-top boxes. Over 100 million of Pandora's registered users have accessed the service from a smartphone or tablet.


Why (almost) everybody loves Pandora
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Apparently, Google and Microsoft have expressed "extreme interest" in unused sections of airwaves known as white spaces.

These spaces are effectively gaps between those airwaves used for television, radio and mobile services, and are used as buffers to prevent the broadcasting and mobile signals from interfering with each other. In the past, white spaces have been put to little or no use, but telecoms regulator Ofcom wants to develop them for broadband services. "Recycling airwaves – or 'spectrum' – in this way is a highly efficient use of what is a very limited resource," the watchdog said.


Google and Microsoft go on Wi-Fi offensive in UK
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Back in 2009, Finland announced what might be the world’s most ambitious national broadband plan: a guaranteed minimum service level of 1Mbps for all homes and companies by 2010. That goal is then planned to be kicked up to 100Mbps, served via a fixed connection or wireless, by 2015. Three years into the program, Finnish government officials say they are well on the road to meeting that goal by providing subsidies mainly to local cooperatives that have sprung up to serve rural communities. To date, 86 percent of the 5.35 million Finnish population lives within two kilometers of a 100Mbps connection, and the expectation is that this will grow to 95 percent by 2015. By that definition, it looks like Finland will come very close to meeting its goal. (Finnish households are expected to pay for that final connection to the home, should they want the full 100Mbps fiber service.)


Finland: Plan for universal 100Mbps service by 2015 on track