Tag: US

FCC leaks terrible net neutrality decision

face-palmThe US FCC was expected to bow to public pressure and allow some semblance of net neutrality in the Land of the Free.

It was to be a brave move – after all a huge chunk of the FCC has connections with phone companies and the watchdog is widely seen as being in the telco pockets.

But the problem was that a huge chunk of the American public had told the FCC that they did not want the telcos strangling their bandwidth or making them pay extra for a reasonable service. In fact, more than four million Americans made it clear to the FCC that they were not going to stand for this thing.

However a new leak shows that the FCC is considering a proposal which it is called a hybrid proposal. It would expand the FCC’s powers to regulate broadband while also allowing cable providers to charge more money for fast lanes.

The “hybrid” proposal now under consideration has not been finalised but according to media leaks and discussions with interested parties they would expand the FCC’s powers to regulate broadband while also allowing a carve out for cable providers to charge more money for fast lanes. However, the rules will only allow the FCC to intervene to promote competition.

The idea is that would not upset the comms companies because they would be allowed to do what they like.

All those people who voted against such a scheme are a little miffed. Apparently, they thought if enough people voted against such a scheme the US government would have to listen. After all the US is supposed to be a democracy and follow the will of the majority and not corporates.

Apparently not.

Protesters having been gathering outside the White House and in a dozen US cities to demonstrate against a “hybrid” solution now being considered to end a stalemate over regulating the internet.

 

US spectrum launch delayed

LPSpectrumThe chance of the US leading the world when it comes to hi-spec mobile networks were put on ice by its regulatory authority.

The FCC has delayed the incentive auction and has prompted the agency to push the spectrum swap until 2016 thanks to a legal challenge.

The National Association of Broadcasters (NAB) started the court case because the incentive auction could hurt TV stations that choose not to participate in the auction.

Final briefs in the case are not due until late January 2015, meaning a decision is probably not likely until mid-2015.

An FCC spokesman said it was confident it wouldl prevail in court, but given the reality of that schedule, the complexity of designing and implementing the auction, and the need for all auction participants to have certainty well in advance of the auction, a delay is necessary.

The spectrum auction will allow broadcasters to sell their unused spectrum to mobile carriers and get a cut of the purchase price. NAB has been cautiously supportive of the move, but the group’s lawsuit says that the FCC is not providing adequate protection for broadcasters who decline to participate.

NAB said it was not its narrowly focused lawsuit which was the cause for delay. NAB Executive Vice President of Communications Dennis Wharton said the  NAB has said repeatedly, it is more important to get the auction done right than right now. Given its complexity, there is good reason Congress gave the FCC 10 years to complete the proceeding.

EU might suspend data agreements with the US

Russia-State-Cultural-Ideological-Policy-Weapon-West-US-Europe-Bodhita-NewsThe EU Justice Commissioner  is considering suspending a commercial data-sharing agreement between the European Union and the United States if Washington  doesn’t stop spying.

Vera Jourova said in written answers to EU lawmakers that the so-called Safe Harbour agreement allowing companies to transfer personal data to the United States could be suspended if negotiations between Brussels and Washington go nowhere.

Jourova said that suspension was an option on the table for me, but we are not yet there.

Under the EU’s strict data protection laws, companies may only transfer personal data outside the 28-member bloc if a country is deemed to have adequate safeguards for that data. Only a handful of countries worldwide meet the required standards and the US is not one of them.

In 2000 the EU adopted a Safe Harbour agreement under which US companies certify themselves that they meet the EU’s data privacy standards.

However the agreement was rendered a joke after last year’s revelations about mass US surveillance programs involving EU citizens which showed that  US technology companies were just handing over data to spooks.

And if negotiations with the US are tough now, it is expected that things will get worse when Jan Philipp Albrecht of the Greens group takes over  in November as the new Justice Commissioner. The Greens have no love of the US’s spying antics.

More than 3,246 companies were certified under Safe Harbour, including Google and Facebook.

The Commission announced a review of Safe Harbour in November last year after former U.S. National Security Agency contractor Edward Snowden revealed details of Washington’s eavesdropping on Europeans’ phone calls, including those of German Chancellor Angela Merkel.

The Commission gave Washington a 13-point list of issues to address before it would put forward a revised data sharing agreement. One of them was that the US would use the national security prerogative to access Europeans’ data only when strictly necessary and in response to a specific threat.

Apparently this is causing a problem because the US sees everyone as a threat, even loyal allies.

Jourova asked for more time to continue working in a constructive spirit with the United States building on the progress made so far. Theoretically, the Commission could roll over and allow the US to have its wicked way with Europe, but it is likely that the European Parliament would throw its toys out of the pram if it did so. Most feel that the Commission is a US lapdog and it is about time it gave the land of the Free a Chinese burn until it stops being such an international douche.

US more likely to hack you than the Chinese

1220aTwo security experts, Jordan Robertson and Greg Martin set up an online honey pot to see which country was more  like to attack it and was surprised to discover that the US was more likely to be an aggressor than the Chinese.

Writing for Bloomberg, the pair  wanted to find a way to show the global nature of attacks against industrial-control systems used in electrical grids, water systems and manufacturing plants. For obvious reasons, attacks against critical infrastructure are among the biggest concerns in cyber-security.

Martin and Robertson  configured the honeypot to look like an enticing industrial-control computer to hackers and traced who attacked it.

The fake control systems were made to look like they were located in the U.S., the U.K., Amsterdam, Brazil, Tokyo and Singapore. The pair wanted a variety of locations to show that systems everywhere are under attack.

Over a three month period, the US was by far the biggest source of attack traffic, trying to hit the honeypot more than 6,000 times, nearly double China with 3,500, Russia, more than 2,500.

The Dutch and France were also carrying out statistically significant amounts of attacks on the honeypot.

The attacks were mostly reconnaissance missions, in which hackers often use less obfuscation, Martin said. However, it does mean that the idea of China being the leading hacking country is a myth and that crown belongs to the United States, which appears to have a policy of hacking everyone.

US confirms Chinese government behind hacks

1220aA US Senate panel has ruled that hackers associated with the Chinese government have repeatedly infiltrated the computer systems of US airlines, technology companies and other contractors involved in the movement of US troops and military equipment.

The Senate Armed Services Committee’s year-long probe found the military’s US Transportation Command, or Transcom, was aware of only two out of at 20 such cyber intrusions within a single year.

It found gaps in reporting requirements and a lack of information sharing among US government bodies which left the US military oblivious to the computer compromises of its contractors.

Democratic Senator Carl Levin of Michigan, the committee’s chairman was keen to focus on the Chinese hackers rather that the big defence industry’s cock-ups.

He said that the peacetime intrusions into the networks of key defence contractors are more evidence of China’s aggressive actions in cyberspace.

But cybersecurity expert Dmitri Alperovitch, chief technology officer with the security firm Crowdstrike, said that China had for years shown a keen interest in the logistical patterns of the U.S. military.

While its military uses secret or top-secret networks that are not on the Internet, but the US private companies hired by the US do not.

In the year beginning June 1, 2012, there were about 50 intrusions or other cyber events into the computer networks of Transcom contractors, the 52-page report stated.

At least 20 of those were successful intrusions attributed to an “advanced persistent threat,” a term used to designate sophisticated threats commonly associated with attacks against governments. All of those intrusions were attributed to China.

Senator Jim Inhofe of Oklahoma, the committee’s top Republican, called for a “central clearinghouse” that makes it easy for contractors to report suspicious cyber activity.

 

Comcast declares war on Tor

Newspaper Seller, 1939The most popular telco in the US, famous for its happy customers and commitment to a positive future for an open internet, Comcast has declared war on the encrypted system Tor.

Comcast agents have contacted customers using Tor and instructed them to stop using the browser or risk being cut off.

According to Deep Dot Web one Comcast agent named Jeremy insisted Tor an “illegal service” and was against usage policies. The Comcast agent then repeatedly asked the customer to tell him what sites he was accessing on the Tor browser. Of course the customer told him to go forth and multiply.

What is scary is that Comcast knew that any customer was using Tor. This would mean that Comcast is spying on the online activities of its users.

There is some bad blood between Tor and Comcast. The Tor project has listed Comcast as a Bad ISP. The Tor project cited Comcast’s Acceptable Use Policy for its residential customers which claims to not allow servers or proxies.

A Comcast spokesperson insisted that the outfit did respect customer privacy and security and would only investigate the specifics of a customer’s account with a valid court order.

However, this did not happen in the case of Comcast’s treatment of Ross Ulbricht, alleged Dread Pirate Roberts.

Comcast previously collaborated with the FBI by providing information on alleged Silk Road mastermind Ross Ulbricht’s internet usage. Ulbricht was most certainly never given a warning by Comcast or given time to contact a lawyer before he was arrested in a San Francisco library last October.

 

US begins McCarthyite purge of scientists

mccarthyism-3The US’s obsession with imaginary terrorists has resulted in what appears to be a McCarthy style purge of academics.

According to Science the latest to be purged is Valerie Barr who, in 1979, when she was 22, handed out leaflets, stood behind tables at rallies, and baked cookies to support two left-wing groups, the Women’s Committee Against Genocide and the New Movement in Solidarity with Puerto Rican Independence.

In a few years, she had become a top software academic and found herself too business for such causes and a quarter-century later, she’s a tenured professor of computer science at Union College in Schenectady, New York, with a national reputation for her work improving computing education and attracting more women and minorities into the field.

In August 2013 she took a leave from Union College to join the National Science Foundation (NSF) as a program director in its Division of Undergraduate Education and that is when she found herself in trouble with the terror police.

The FBI insists that Barr lied during a routine background check about her affiliations with “a domestic terrorist group” that had ties to the two organisations to which she had belonged in the early 1980s.

On 27 August, NSF said that her “dishonest conduct” compelled them to cancel her temporary assignment immediately, at the end of the first of what was expected to be a two-year stint.

Behind all this craziness is an obscure agency within the White House called the Office of Personnel Management (OPM) it has huge control over hiring workers because it is supposed to arrange background checks.

Ironically labelling her a terrorist and booting her off the progamme is a security own goal. Barrs job was to help the US combat cyberterrorism.

So how much of a security threat was she?  Well the two groups she was involved with were affiliated with a third, the May 19 Communist Organization (M19CO), that carried out a string of violent acts, including the killing of two police officers and a security guard during a failed 1981 robbery of a Brink’s truck near Nyack, New York.

When she was asked if she had ever been a member of an organization “dedicated to the use of violence” to overthrow the U.S. government or to prevent others from exercising their constitutional rights she had said no.

But since in the mind of the FBI the three groups were all linked she must have known that she was a member of the M19CO/

“I found out about the Brink’s robbery by hearing it on the news, and just like everybody else I was shocked,” she recalls.

Barr says she was casually acquainted with two of the convicted murderers, Judith Clark and Kuwasi Balagoon (née Donald Weems) but had no prior knowledge of their criminal activities.

Barr also has some ammunition in the form of the fact that the FBI investigator into her case was, according to his own blog, somewhat of a conservative who likes to tell stories about thumping atheist academics. Barr is a feminist and a lesbian.

All this calls into question whether the US government is hiring scientists on the basis of their ability to do a job or shooting itself in the foot following the same McCarthest mindset which paralysed the US for years.

Basically it means that it does not matter how good a scientist or computer security expert you are, if you are a woman, a lesbian or belonged to groups when you were a kid which we think might have been left wing extremists, we don’t want you working for our government.

 

US tech companies rally against China

55_Days_at_Peking-633098393-largeUS companies are moaning that Chinese regulators are ganging up on Western tech outfits in a bid to shut them out.

The American Chamber of Commerce in China is fuming about a series of investigations scrutinising at least 30 foreign firms, as China enforces its 2008 anti-monopoly law.

According to the Chamber, multinational firms are under “selective and subjective enforcement” using “legal and extra-legal approaches,” the Chamber said in a report.

A survey of 164 members showed 49 percent of respondents felt foreign companies were being singled out in recent pricing and anti-corruption campaigns, compared to 40 percent in a late 2013 survey of 365 members. Twenty-five percent said they were uncertain, or did not know, and 26 percent said no.

Lester Ross, vice chairman of the chamber’s policy committee, said the expansion of the enforcement was welcome in principle, but regulators were using “extra-legal” means to conduct investigations.

“They have taken what are, in many instances, vague or unspecified provisions in the law and moved to enforce them, and sought to enforce those means through processes that do not respect the notion of due process or fairness,” Ross said.

The Chamber wrote to Secretary of State John Kerry and Treasury Secretary Jacob Lew and asked them to get tough with Beijing on its use of anti-competition rules.

China is using competition law to advance industrial policies that nurture domestic companies, the U.S. Chamber, based in Washington, said in the letter.

It is not just the Americans who are concerned. The European Union Chamber of Commerce in China in August expressed its concern over the antitrust investigations, saying China was using strong-arm tactics and appeared to be unfairly targeting foreign firms.

The Chinese argue that some business operators in China have not adjusted their practices in accordance with the anti-monopoly law.  Others have a clear understanding of the laws, but they take the chance that they may escape punishment.

Anti-trust watchdogs have bitten Qualcomm’s local subsidiary after it said in February the company was suspected of overcharging and abusing its market position in wireless communication standards.  Yesterday Microsoft was given 20 days to reply to queries on the compatibility of its Windows operating system and Office software suite.

The internet belong US

pressieThe US government has ruled that if data is on the internet, anywhere in the world, it has to be turned over to one of its spying organisations for processing.

President Barack Obama’s administration is insisting that that any company with operations in the United States must comply with valid warrants for data, even if the content is stored overseas.

This means that anyone who uses an iPhone anywhere in the world will see their data inside a US government database.

Microsoft and Apple insist that enforcement of US law stops at the border, but the government seems to think that it rules the world.

A magistrate judge has already sided with the government’s position, ruling in April that “the basic principle that an entity lawfully obligated to produce information must do so regardless of the location of that information.”

Microsoft appealed   and the case is set to be heard in two weeks.

The US government said that content stored online is not protected by Fourth Amendment protections as data stored in the physical world. It quoted a law put out by President Ronald Reagan called the  Stored Communications Act (SCA).  This said that overseas records must be handed over domestically when a valid subpoena, order, or warrant forces them. No one thought that the SCA stuffed up the Fourth Amendment so there is no need to change the laws.

However Microsoft said Congress has not authorised the issuance of warrants that reach outside US territory. It points out that the government cannot issue a warrant allowing federal agents to break down the doors of Microsoft’s Dublin facility.

Microsoft said that consumer trust in US companies is low in the wake of the Edward Snowden revelations and the government will make overseas operations impossible.

It has the backing of Apple, AT&T, Cisco, and Verizon agree. Verizon said if the government wins, it would produce “dramatic conflict with foreign data protection laws.” Apple and Cisco said (PDF) that the tech sector would be blacklisted by foreign governments.

Recently the senior counsel for the Irish Supreme Court wrote in a recent filing that a US-Ireland “Mutual Legal Assistance Treaty” was a way for the US government to obtain the e-mail held on Microsoft’s external servers.

 

US Senate committee approves company snooping

Despite fears about personal data, the US Senate Intelligence Committee approved a bill to encourage companies to exchange information with the government.

The move is supposed to help share information on hacking attempts and cybersecurity threats, the only problem is that you have to trust the US government not to misuse the situation.

Experts see the bill as the best chance for the current congress to pass some type of legislation to encourage better cooperation between the government and private companies to boost the cyber defences of critical industries.

It is a serious problem as cyber-attacks by a determined enemy could be the greatest threat to US national and economic security.

However, comprehensive cyber bills have been delayed by rows over liability and concerns about privacy. In the middle of it, came the news of the government surveillance programmes.

The bill must be approved by the full Senate and reconciled with similar legislation that passed the House of Representatives in April.

There are already signs that the measure has bipartisan support in the House. The Republican chairman and top Democrat on the House Intelligence Committee issued a statement on Tuesday backing the measure and urging the full Senate to vote quickly.

Under the bill, companies and individuals can monitor their own and consenting customers’ networks for hacking and voluntarily share cyber threat data, stripped of personally identifiable information, with the government and each other for cybersecurity reasons.

In return, the US director of national intelligence to increase the amount of information the government shares with private firms and the Department of Homeland Security to set up and manage a data-sharing portal.

The bill offers liability protections to companies that appropriately monitor their networks or share cyber threat data and limit the government’s ability to use data it receives.

However, privacy advocates are worried about giving companies any form of immunity and the long history of abuse of consumer data by both the private sector and the government.

US arrests Russian hacker

skullkThe US has arrested a Russian national and charged him with hacking.

The Department of Homeland Security said Roman Valerevich Seleznev hacked into American retailers’ computer systems to steal credit card data from 2009 to 2011.

It has taken the Secret Service a while to find Seleznev, who was indicted in Washington state in March 2011 on charges including bank fraud, causing damage to a protected computer, obtaining information from a protected computer and aggravated identity theft.

At that time it was suggested that Seleznev hacked into websites ranging from those run by the Phoenix Zoo, a branch of Schlotzsky’s Deli and many other small restaurants and entertainment venues.

Secretary of Homeland Security Jeh Johnson implied that the hacks were the work of organised crime and that Seleznev was probably working for the Russian mafia.

“This important arrest sends a clear message: despite the increasingly borderless nature of transitional organized crime, the long arm of justice – and this Department – will continue to disrupt and dismantle sophisticated criminal organizations,” Johnson said.

 

 

 

Genii gives SecureIT to new US masters

idreamofjeannie1-300x193Genii Capital has sold the Multi-Tier Datacenter service provider SecureIT to a US real estate fund manager.

Genii funded and started SecureIT in 2003 on the back of the acquisition of a datacenter building to be developed.  The company remained solely funded by Genii Capital until its sale.

Eric Lux, CEO of Genii Capital said that when his company bought the building that would became SecureIT’s first datacenter, it just inherited a mini datacenter and a few racks. “We had no idea this small operation would become so successful but we knew there was a niche for us,” Lux said.

Initial demand came from new players like Skype who were considering setting up part of their infrastructure in Luxembourg.

This transaction underlines Genii Capital’s capabilities in the growing cloud and datacenter industry, he said.

Tesco profits flag

tescoTesco is facing the same fate as many other businesses, reporting the first annual profit loss in nearly 20 years.

The supermarket giant said pre-tax profits were down 51 percent to £1.96 billion, while post-tax profits including the cost of its £1.2 billion US exit were £120 million, marking a decrease of 95.7 percent.

The company confirmed that it would be backing out of the US after its investment in 190 Fresh and Easy stores failed to make it a profit.

In Blighty the company has also announced a property write down of £804 million. This was as a result of a review by the company, which uncovered more than 100 sites, scooped up five years ago for potential stores, now lying dormant.

In a blog post, head honcho Philip Clarke said: “Much of this property was bought more than five years ago, some more than 10 years ago.

“That is before the 2008 financial crisis, before the iPhone, social media, tablet computers, before we knew how profoundly technology would change both how we and our customers live and shop.

“Technology has changed much that we all took for granted and it is still changing. The last five years have shown that change in retail can be disruptive and come in sharp steps, not a steady trend. We must anticipate change and act decisively so we looked hard at the land we own and conclude that although we have a strong and attractive network of stores, we will never develop some of this land, mostly the very large mixed-use developments.”

The past three months have also not been favourable to the company, with Tesco claiming its sales, not including petrol, only rose by 0.5 percent. This was a decrease from the growth the company faced in six weeks to 5 January when the company marked a 1.8 percent rise as a result of Christmas shopping.

IT services market was poor last year

rubbish-tip1Beancounters at Ovum have officially ruled 2012 as bad for the IT services market.

Ed Thomas, Senior Analyst in the Ovum IT Services team said that 2012 was the worst for IT services contract activity since 2002.

He wrote that performance in the three months to the end of December 2012 fell well below the levels seen in the same period of 2011. This makes IT services contract activity the lowest than it has been for more than a decade.

In Ovum’s latest analysis, deals in the IT services market was only $20.8 billion, down 34 per cent on the same period of the previous year.

The number of deals fell 17 per cent in the same period and there was a notable lack of big deals. While the fourth quarter was slightly better than the beginning of the year, that really does not make things better across the year.

Thomas blamed the ongoing economic uncertainty afflicting key markets for IT services such as the US and Europe as a major factor behind the weak performance of the industry in 2012.

His research suggests that many enterprises remain wary of committing to major projects, with issues such as the Eurozone crisis having a particularly significant impact.

In addition, public sector activity has reduced as many governments come under pressure to cut public spending in the face of high debt levels, Thomas said.

Enterprises were just as bad, where the number of deals announced fell by 50 per cent. In healthcare contract volumes were down 39 percent and in the financial services market they fell 18 percent. The only industries in which contract activity was up on the previous year were telecommunications and technology sectors.

Europe was the leading market for private sector contract activity in 2012 but the number of contracts generated by European enterprises actually declined sharply during the year, falling 31 percent to $16.7 billion.

Private sector contracts in America slumped dramatically in 2011, rebounded in 2012, finishing the year up 48 percent at $10.5 billion.

This was mostly boosted by a couple of big contracts from Procter & Gamble and it is too early to tell whether or not this represents a significant shift in approach by enterprises in the region, Thomas said.