Verizon uses Dalek diplomacy on FCC

DayoftheDaleksUS telco Verizon has revealed its compromise on net neutrality which appears to have been drawn up by a Dalek PR – it has promised not to sue the FCC if the watchdog does exactly what it tells it to.

Verizon has promised that it will not sue to block net neutrality rules as long as they’re issued without reclassifying broadband providers as utilities.  There is a concern that Verizon would do this because that was exactly what it did last time.

In 2010, the FCC issued rules preventing Internet service providers from blocking or discriminating against traffic by relying on Section 706 of the Telecommunications Act, rather than the stronger powers the FCC has under Title II, which covers utilities or “common carriers”.

Verizon sued and won, with a federal appeals court stating that the FCC could not issue what amounted to common carrier rules without first reclassifying broadband service as a utility, similar to the traditional phone network.

Ironically, that is why the FCC is now considering reclassifying broadband. It wants the next set of net neutrality rules to survive a court challenge.

FCC Chairman Tom Wheeler said last week that whatever the FCC did, Verizon would sue it.

However Verizon Executive VP Randal Milch said that  statement was completely unfair. Verizon will not sue if the FCC uses Section 706, even though that is exactly what Verizon did last time.

Section 706 requires the FCC to encourage the deployment of advanced telecommunications capability to all Americans, and it can be used to govern broadband providers’ treatment of Internet traffic.

Milch’s e-mail was made public in an ex parte letter filed with the commission yesterday. Milch wrote that rules based on Section 706 “will not be the object of a successful court challenge—by Verizon or anyone else”.

So in otherwords, the FCC will be ok provided it obeys Verizon in all things. It is a bit like the burglars threatening to sue you if your watchdog bites them as they break into your house. In this case the burglars are telling you in advance that you will not be sued if your watchdog does not bite them while they make off with your TV. You cannot be fairer than that.

 

HP sees profits plummet

meg-whitmanThe maker of expensive printer ink, HP, has surprised the cocaine nose jobs of Wall Street by telling them that its quarterly revenue fell in almost every business segment over the year.

The numbers highlight weaknesses in the company ahead of the company’s planned 2015 separation of its enterprise services from its traditional computer and printing units.

Sales fell 2.5 percent in the fourth quarter to $28.41 billion, from $29.13 billion a year earlier, HP said. Analysts had expected $28.76 billion. Profit declined 2.7 percent to $2.01 billion.

Chief Executive Meg Whitman cryptically told analysts that she said that “turnarounds were not linear” which will be news to any driver who uses a roundabout or attempts a three point turn.  She insists that after three years of her rule, HP is exactly where she thought it would be.

The enterprise group and enterprise services, areas that Whitman had previously flagged as growth drivers, showed revenue declines of four percent and seven percent.

On the call, Whitman said she expected a slower decline in enterprise revenue next year. Enterprise services would be the biggest “swing factor” in the company’s 2015 growth projections, she said.

The company’s personal computer division grew by four percent after a 12 percent jump in the prior quarter. Much of the growth in PCs was driven by a Microsoft decision to quit supporting older software, and Whitman said that was pretty much over now.

The high-margin printer business shrank by five percent.

Whitman is pinning her hopes on splitting the company into two next year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, and eliminating another 5,000 jobs as part of its turnaround plan.

“This separation was totally the right thing to do for this company,” Whitman said. “It is remarkable how it focuses the mind on overhead.” Well if turnarounds are not linear then you have to keep an eye on what is above you otherwise a turnaround might fall on you.

Cameron claims that ISPs are protecting terrorists

stupid cameronUK Prime Minister David “one is an ordinary bloke” Cameron has been claiming that ISPs are responsible for the deaths of fusilier Lee Rigby.

Responding to a report by the intelligence and security committee, Cameron said that internet companies are allowing their networks to be used to plot “murder and mayhem”.

He demanded that internet companies live up to their social responsibilities to report potential terror threats and said there was no reason for such firms to be willing to cooperate with state agencies over child abuse but not over combatting terrorism, or anything else that he might not happen to likethat week.

The parliamentary intelligence and security committee (ISC) concluded that the brutal murder of Rigby could have been prevented if a US internet company had passed on an online exchange in which one of the killers expressed “in the most graphic terms” his intention to carry out an Islamist jihadi attack.

However Cameron’s blaming the ISPs was probably more to cover up for the fact that the agencies had made a cock-up in their monitoring of Rigby’s murderers, Michael Adebolajo and Michael Adebowale.  He focused on a comment which said that if MI5 had had access to the exchange between one of the killers, Adebowale, and an extremist overseas, Adebowale would have become a top surveillance priority. By failing to alert the authorities, the company had, “however unintentionally,” provided a “safe haven for terrorists.”

The report did say that MI6 and MI5 had made errors but that the murder would have happened even if the errors had not.

This is one of the problems – terrorists are darn hard to spot at the best of times and these two were known as self-starter terrorists, whose connection with other terrorist groups is slight. The report says the two men appeared between them in seven different agency investigations but were for the most part regarded as low-level subjects of interest.

“Adebolajo was a high priority for MI5 during two operations: they put significant effort into investigating him and employed a broad range of intrusive techniques. None of these revealed any evidence of attack planning,” the report said.

Adebowale was never more than a low-level subject of interest and the agencies took appropriate action based on the rigorous threshold set down in law: they had not received any intelligence that Adebowale was planning an attack and, based on that evidence, more intrusive action would not have been justified.

However Cameron said there was no possible justification for US internet providers not to inform agencies of terrorist activity since they already cancelled the accounts of suspected terrorists.

This summer, the government updated its legislation to require internet companies to cooperate with the state and report potential terrorist activity, but he said the level of cooperation was not satisfactory, mostly because of a reluctance for ISPs to be involved with what would be a police state.

Given that the ISP in this case was based in the US, it would have been incredibly unlikely that Cameron cracking down on UK ISPs would have made the slightest difference.

However, he admitted there was legal uncertainty about the duty of internet companies based in the US to cooperate with UK agencies due to conflicting laws in the US.

“There were errors in these operations, where processes were not followed, decisions not recorded, or delays encountered. However, we do not consider that any of these errors, taken individually, were significant enough to have made a difference,” the report says.

US gets shirty with EU over Google

euroflagzA motion in the European Parliament to be debated tomorrow and voted on on Thursday has raised the ire of the United States.

Two MEPs are proposing that Google should be dismembered because its power is excessive.

And even though the European Parliament has no powers to enforce such a move, it’s attracted ire from the US mission to the EU, according to Reuters.

In an email to the the EU the mission said it was concerned about the call to dismember Google.

It added that looking at competitive problems and remedies should be based on objective and impartial information and “not be politicised”.

If the European Parliament votes for the motion on Thursday, that’s likely to put pressure on the European Commission to step up its investigations.

Google has been under scrutiny by the EC – a separate entity from the parliament for four years following complaints by all and sundry that it is behaving in an antitrust manner.

ARM fails to dent X86 server market

intel_log_reversedBeancounters at mighty chip behemoth Intel can stop playing with their worry beads as it looks as though servers based on ARM technology are failing to dent X86 server business.

A report in Taiwanese wire Digitimes said that ARM has made serious attempts to invade the server business but hasn’t succeeding in storming the Intel fortress.

And with Intel having an 80 percent share in the PC market, shareholders in the chip giant believe that despite its appalling performance in the mobile space, it will continue to make high margins from its server chip offerings.

AMD is waiting in the wings but doesn’t have a great deal of traction in the server business,  the report claims.

Both ARM and Intel hope to make vast profits by being in the vanguard in offering products that will leverage the expected boom in the “internet of things”.

Intel and ARM are relying on cloud based apps to make everything work together.  These things are only a tiny fraction of the internet of things, however, and it’s hard to see either company having much of a share in the expected bonanza.

SaaS deployments are at boiling point

Pic Mike MageeThe use of Software as a Service (SaaS) by enterprises is becoming “mission critical”,  according to a survey by IT market research company Gartner.

Gartner said that cost and agility are the main reasons for SaaS cloud adoption by enterprises, based on a survey involving four countries in four regions around the world.

Joanne Correia, a research VP at Gartner, said that the most common reasons for using SaaS were to develop and test production and mission-critical workloads.

“We’ve seen a real transition from use cases in previous surveys where early SaaS adoption focused on smaller pilot projects. This is an affirmation that more businesses are comfortable with cloud deployments beyond the front office running sales force automation and email,” she said.

Of those surveyed, 44 percent thought overall cost reduction was the main reason for investment in SaaS.  But CIOs and senior IT project managers rated adoption not only because of cost but because of operational agility and giving their businesses an advantage over competitors.

Gartner believes that few enterprises will completely migrate to SaaS and instead will mix that with traditional on premises deployment.

Outside of the USA, many enterprises still worry about security, privacy and “fear of government snooping”.

Traditional on premise deployments will shrink from 34 percent in 2014 to 18 percent by 2017.

Virtual reality boggles the brain

UCLA's Mayank MehtaYesterday we reported that Thomas Cook wants to woo customers by showing them fun places they might like to book a holiday.

And so they might be interested in research from UCLA which finds the brain reacts completely differently to virtual reality than to seeing and hearing things in the real world.

Mayank Mehta, a UCLA professor of physics, said that his and his teams findings could well be significant for people who use VR for gaming, military, commercial or other purposes.

Mehta said: “The pattern of activity in a brain region involved in spatial learning in the virtual world is completely different than when it processes activity in the real world.  Since so many people are using virtual reality, it is important to understand why there are such big differences.”

The UCLA boffins studied the hippocampus, a part of the brain which plays a big part in creating new memories and mental spatial maps.

The scientists believe that the hippocampus measures distances between a person and surrounding landmarks, aided by other sense impressions like sounds and smells.

The scientists tested rats in virtual and real worlds and measured the activity of hundreds of neurons in their hippocampi in both environments. The results were entirely different – in VR the rats’ hippocampi fired randomly “as if the neurons had no idea where the rat was”.  Mehta said the mental map “disappeared completely”. Over half of the neurons in the hippocampi shut down in VR.

Homeland Security deletes Einstein files

einstineThe Department of Homeland Security has promised to delete records from a controversial network monitoring system called Einstein.

The files to be deleted are at least three years old, and the reasons for the deletion is not exactly altruistic.

DHS thinks the files, which include data about traffic to government websites, agency network intrusions and general vulnerabilities, are a waste of space.

The irony is that some security experts claim that the DHS would be deleting a treasure chest of historical threat data and privacy experts claim that destroying it could eliminate evidence that the government-wide surveillance system does not work.

Either way it appears that the spooks cannot win.

According to Homeland Security’s rationale a three-year retention period for reference purposes is sufficient, and “the records have no value beyond that point” but can be kept longer, if needed, appraisers said.

Some incident reports, which include records on catastrophic cyber events, must be kept permanently. Apparently the spooks are keen to save space on their servers. Keeping too much data costs an arm and a leg.

Johannes Ullrich, dean of research at the SANS Technology Institute warned that older intrusion-detection records provide insight into the evolution of threats, said. Analysts there sometimes need even older data to answer today’s research questions.

He thinks the intrusion records would be made available to the public in some form. The Einstein data would likely be a goldmine for researchers, as it documents attacks against very specific networks in a consistent way over a large extent of time, he said.

Lee Tien, senior staff attorney with the Electronic Frontier Foundation said that  getting rid of data about people’s activities is a pro-privacy, pro-security step.  But “if the data relates to something they’re trying to hide, that’s bad.”

It is possible the records could reveal the monitoring tools make mistakes when attempting to spot threats.

According to Next Gov  The public has until Dec. 19 to request a copy of the records retention plan. Comments are due within 30 days of receipt.

IT pros don’t want to live in America

Photo-02-Emigrantstationen-EllisIsland-NewYork-500A new study of the worldwide migration of IT professionals to the US shows a sharp drop-off in its proportional share of those workers.

The study used social media site LinkedIn to track the movement of professional people and is the first to monitor global migrations of professionals to the U.S.

Co-author Emilio Zagheni, a University of Washington assistant professor of sociology and fellow of the UW eScience Institute presented the study at the recent SocInfo conference in Barcelona, Spain.

While 27 percent of migrating professionals among the sample group chose the U.S. as a destination in 2000, in 2012 just 13 percent did.

The biggest drop was among those in the science, technology, engineering and math (STEM) fields, from 37 to 15 percent.

Instead, all the brains are going to Asian countries which saw the highest increase in professional migrants worldwide, attracting a cumulative 26 percent in 2012, compared with just 10 percent in 2000.

Australia, Oceania, Africa and Latin America also saw an uptick in their share of the world’s professional migration flows.

The Land of the Free attracted 24 percent of graduates from the top 500 universities worldwide in 2000, but just 12 percent in 2012.

The US is still the top destination for migrations, but the study indicated that was something that should not be taken for granted.

The study suggests numerous possible reasons for the proportional migration decline including the US’s Byzantine style visa system, a greater demand for professionals in other countries, fewer opportunities for immigrants due to the dot-com collapse of the early 2000s and the 2008 recession.

 

Microsoft sues the US taxman

MSlogoSoftware giant Microsoft has sued the US taxman as part of a move to find out about a law firm hired by US tax authorities in a review of how the software company books sales between subsidiaries.

Vole claims the IRS entered into a contract this year with Quinn Emanuel Urquhart & Sullivan, which specialises in litigation. The agency is paying Quinn Emanuel more than $2 million in connection with its examination of Microsoft tax returns between 2004 and 2009, the court filing said.

Microsoft wanted more information, but the IRS had not fulfilled a Freedom of Information request seeking the complete Quinn Emanuel contract and other documents.

“Government agencies, funded by citizens, have an obligation of transparency under the Freedom of Information Act,” Microsoft said in a statement.

At issue are how multinational corporations value goods and services moving across international borders from one of their units to another. These cash transfers frequently reduce a corporation’s global tax costs.

The IRS has scrutinised technology companies, including Microsoft and Amazon over how they account for such transfer pricing and it appeared to using Quinn Emanuel.

That outfit represented the Federal Housing Finance Agency in high-profile lawsuits against financial institutions, including Goldman Sachs Group over the quality of mortgage-backed securities they sold before the financial crash.

It seems a little odd that Microsoft, instead of being concerned about a potential IRS investigation is going to court to find out who the taxman is hiring as his lawyers.

 

Intel shares could rise by 30 percent

hopeWhile some have decided that Intel will go the way of the Dodo, it appears that the analysts Barrons disagree.

The outfit’s augury division has walked a compliant white bull into the temple of Juno, read its steaming entrails, and concluded that Intel will do rather well.

It thinks that shares in Chipzilla will rise more than 30 percent to $48 over the next two years.

The logic is that with shares its recently at over $35, Intel stock is halfway to the five-year doubling Barron’s said it predicted in June of 2013.

Barron’s said that in two years’ time, the 30 percent rise would put shares trading at around 16 times future earnings estimates, the same price to 2014 earnings ratio that it now trades at.

Intel has few fans among the cocaine nose jobs of Wall Street, suggesting plenty of popularity to be gained. Intel is strategically running a deep loss in its mobile-chip division in order to make up for its late start.

However, Barron insists that might be a good thing. Shrinking those losses to break-even in future years will uncover earnings power in the rest of the company that is currently hidden.

However there is a lot of scepticism about Intel—just 40 percent of analysts who cover the shares say to buy them.

Earnings per share are expected to climb 19 percent this year to $2.25, which looks like excellent growth, except that earnings first topped $2 a share back in 2010, said a Barron.

However Barrons did not see everything as lilly white in the ox’s liver.  It thinks that while Intel is on track to ship a promised 40 million tablet chips this year, versus just a million or so two years ago, its mobile division will likely lose about $4 billion in the process. That is partly due to “contra revenues,” which are effectively rebates to spur demand while Intel closes the cost gap to rivals on low-end multifunction chips.

Next year Intel expects the division’s loss to shrink by only $800 million. However, by then, it expects to sell a full range of tablet chips, ranging from cheap models called SoFIA, which have integrated wireless function, to pricier Cherry Trail chips for zippy performance at low power. Analysts see the mobile unit achieving positive gross profit margins by 2016.

So if you are thinking about making a quick buck from Intel you might want to wait until this period is over before investing your nest-egg.

 

 

Copyright troll used robo-harassment

trollCopyright troll Rightscorp is being dragged from under its bridge to face the music in court for harassing victims with illegal harassing robo-calls.

Morgan Pietz, one of the lawyers who wrapped “copyright troll” Prenda Law in judicial red tape is targeting Rightscorp saying the outfit made illegal, harassing robo-calls to his clients, who were accused of illegal downloading. The lawsuit says that Rightscorp broke the Telephone Consumer Protection Act (TCPA), a 1991 law which limits how automated calling devices can be used.

Under the suit, Pietz claims that Rghtscorp was a “debt collector” but made harassing phone calls and didn’t abide by federal or California debt collection laws. Rightscorp company managers, including CEO Christopher Sabec and COO Robert Steele, and Rightscorp’s clients are all named as defendants in the lawsuit.

Violations of federal debt collection laws can result in damages of $1,000 and include provisions for paying lawyers’ fees in successful cases.  TCPA violations can cost $500 per incident, and that can be tripled if the violations were wilful.

Pietz says he doesn’t know how many violations have occurred. But he says just one of his named plaintiffs was subject to enough illegal phone calls to add up to tens of thousands of dollars in damages.

One victim, Jeanie Reif,  had her mobile phone called every day for a couple of months, Pietz said. And there could be thousands of members of this class.

If a judge agrees with Pietz that the phone calls were harassing and illegal, Rightscorp could be on the hook for many millions of dollars and that could send it under. The company has lost $6.5 million since its inception in 2011.

If it goes under the enforcement company’s marquee music clients, who include BMG Rights Management and Warner Brothers could end up having to pay up.

Scientists use ammonia to speed up memory

unlA team at the Nebraska Lincoln University has created a mixture of ammonia and graphene to improve properties that will be used in next gen memory technology.

The team have created a better memory structure called a ferroelectric tunnel junction.

This junction uses a ferroelectric layer thin enough that electrons can tunnel through it. The switch comes because the layer lies in between two electrodes that can reverse the direction of its polarisation – creating the zero and ones used in binary computing.

Graphene, a type of carbon,  is the basis of the ferroelectric junction with the electrodes only an atom thick and by experimenting with ammonia the team was able to demonstrate a clear difference between the zeros and the ones.

Alexei Gruverman, a professor of physics, claimed: “This is one of the most important differences between previous technology that has already been commercialised and this emergent ferroelectric technology.”

Ferroelectric memory is non volatile even without an external power source but Gruverman claimed the team’s graphene-ammonia combo  improve the stability of the junction’s polarisation.

Pictured here are left to right, University of Nebraska-Lincoln scientists Alexei Gruverman, Alexander Sinitskii and Evgeny Tsymbal .

Thomas Cook set to make you dizzy

Thomas Cook VR headsetWant to book a holiday abroad?   Thomas Cook claims that it’s going to give you the experience of a lifetime before you ever get near an airport.

The firm said it will use head mounted virtual reality display headsets to customers in a number of shops it has in the UK, Germany and Belgium.

Thomas Cook said it is introducing the virtual reality following successful trials in the massive Bluewater concept store earlier this year.

The company has already created a number of virtual reality experiences including a helicopter tour of Manhattan, a visit to a pool at a resort in Rhodes, and a trip to the restaurant in Cyprus. Other content will include a boat tour round the Statue of Liberty, a drive in New York in a yellow taxi cab.

The content will also be made available on the company’s website so you can look at the content on your tablet, rather than putting your head in the gadget (pictured).

Marco Ryan, head of new things at Thomas Cook, said: “Our use of VR is set to enhance the in store shopping experience for Thomas Cook customers, allowing them to make informed decisions regarding their next holiday.”

UK extends terror laws to ISPs

Home Secretary Theresa MayThe UK Home Secretary Theresa May will unveil additional powers to curb terrorism on Wednesday and those will cover ISPs (internet service providers) too.

Companies will have to tell police who was using a PC or a mobile phone and as part of the proposed bill, ISPs will have to keep IP data that links users to their devices.

The additional powers were originally part of the so-called “snoopers’ charter” which was abandoned after widespread protests.

May claims that the proposal will help it fight terror suspects, paedophiles, hackers, and crooks.  She made the case over the weekend that police should be able to access far more communication data in the snopers’ charter, which was rejected by the Tory Party’s coalition partner, the Liberal Democrats.

However, the head of the Liberal Democrats, Nick Clegg, said the latest moves were acceptable and reasonable.