The FCC’s Christmas Gift to Internet Users

No doubt your Christmas would be troubled and anxiety ridden if not for this column assuring you that the Trump administration decision last week to “repeal net neutrality” does no such thing.

Net neutrality long ago became the expectation of broadband customers. It was an expectation that internet service providers routinely met during the two decades before the Obama rules were enacted. It’s an expectation they will continue to meet after the Obama rules have been withdrawn.

Net neutrality means unfiltered, unhindered access to what the web offers. Net neutrality is the business that broadband suppliers are in.

What is being repealed is a decision to recategorize broadband from a Title I to a Title II service under the 1934 Communications Act. This decision had little to do with net neutrality but meant that lobbyists and petitioners and courts would be able to pressure Washington steadily in the direction of regulating the internet the way it did the railroads in the early 1900s.

Title II is what many groups militating in the name of net neutrality really wanted. They conflated net neutrality with Title II regulation because they thought it politically expedient to do so.

Does this mean you should run screaming to the nearest cliff and throw yourself off because now the internet will be taken over by “fast lanes”?I, for one, will pass. The whole idea of fast lanes reflects a faulty, obsolete metaphor for how the internet works. The internet is more like a giant computer providing a diverse array of services to a billion-plus users simultaneously.

It delivers you a webpage, me a video. In the future, it will help your driverless car navigate traffic, a doctor examine and treat an injury remotely. It will make sure your refrigerator is full of beer.

The businesses supplying each of these services care only that their own customers are happy. Their customers care only that their own service is satisfactory. They won’t care or even notice that the computer is constantly optimizing its performance so its diverse users are all kept simultaneously happy.

The whole “fast lane” nonsense is even more nonsense when we realize how much it’s the efforts of so-called edge providers that determine service quality. If a static webpage doesn’t load as quickly as you might wish, today it’s because of slow servers among the dozens that nowadays contribute pieces of a webpage. Not to blame usually is the last-mile carrier, who’s moving these elements to you as fast as content suppliers make them available.

Or take Netflix: It spends millions to place servers containing its shows inside the systems of last-mile providers to improve delivery and reduce transport costs.

Laws against fraud and anticompetitive behavior apply to broadband suppliers as they do to other companies in the economy. If a supermarket sells you a can of dirt labeled “peas,” it would not long stay in business. But, wait, aren’t we in a uniquely bad position because so many of us have only one or two choices for broadband at home?

All businesses would like to charge an infinitely high price for infinitely chintzy service, but not even Comcast can get away with this, even when competition is inadequate, because customers have voices and politicians and regulators listen to those voices. And competition can only improve matters.

Ironically, what consistently outrages the net-neut freaks is the wireless sector, where competition is fierce, and where rivals dangle offers of uncapped streaming from certain video services, and even free Netflix or Sling TV. This offends sacred principle, never mind that it increasingly turns wireless into a plausible substitute for the local fixed-line monopolist.

Verizon, AT&T, Sprint and T-Mobile—all have made announcements, and put money behind them, promising that 5G wireless will render the local cable oligopoly a thing of the past. Repealing Title II not only makes such investment attractive. It will enable wireless to support a whole slew of advanced services while keeping customers maximally happy.

Disney last week announced it would spend $52.4 billion to acquire certain Fox assets to replicate Netflix’s business model. Notice that Netflix’s business model is premised entirely on the existence of ubiquitous, affordable, unhindered broadband.

Ajit Pai, chairman of the Federal Communications Commission, is the Santa, not the Grinch, of this holiday season. Repeal of Title II is what will make the future internet possible. It’s just too bad those net-neutrality obsessives piling up lifelessly at the bottom of the nearest cliff won’t be around to enjoy it.

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Government-forced 'net neutrality': Putting future inventors between a rock and a hard place

One of my favorite Greek Myths is Sisyphus, an arrogant king who earned a terrible punishment by trying to cheat death: he was forced to roll a rock pointlessly up a hill, only to watch it roll back down every time, for all of time.

Fast forward to modern times, and the debate surrounding “net neutrality” very much feels like my rock. We make a move in the right direction — taking a hands-off regulatory approach to the Internet — but then leftist activists swoop in, and try to throw shackles on the Internet.

Armed with their good old playbook, these activists have declared war and are unapologetic in their efforts to spread mistruths that will hopefully trick enough people into believing that burdensome overregulation of the Internet is our only choice. Instead of commonsense and transparency, they opt for radical ideological warfare.

One point to clarify is that these pretend consumer advocates are not on their white horses, brandishing their swords and shields, to save your “free and open Internet.” That is what they desperately want you to believe.

The activists are supporters of the deceptively titled “net neutrality," which treats Internet service providers as public utilities, like electric companies. Net neutrality is not neutral at all. It would appoint a bureaucrat to play referee over the Internet, which it doesn’t need, but even worse, that referee would only call fouls on one team. That means that it is nearly impossible (Greek mythology-type impossible) for net neutrality to bring down costs.

Their efforts now focus on protecting a set of 2015 rules put in place by former President Barack Obama and his Federal Communications Commission known as Title II, which classifies Internet service providers as public utilities, like electricity, gas, and water. That is the contentious point in this debate, not the issue of a free and open Internet.

These groups are raising an all-out policy war and kicking dust in the air because of the current FCC’s intent to reverse this crippling 2015 rule, which not only prioritizes certain companies over others but it also manipulates the very foundation of how our nation’s markets work.

The irrefutable economic truth is that more regulation like Title II equals more costs and less innovation.

A market doesn’t become more efficient when a bureaucrat tries to step in and dictate how decisions are to be made and how a market/service/transaction is going to run. That kind of meddling always slows things down, both Internet speeds and innovation, because even if a better solution is found, old regulations can stifle the marketplace and hurt consumers. Think of the way taxi unions have tried to stop ride-share programs like Uber and Lyft.

For example, this trend can be seen in markets from TVs to college, as this Bureau of Labor Statistics chart wonderfully illustrates.

Armed with their good old playbook, these activists have declared war and are unapologetic in their efforts to spread mistruths that will hopefully trick enough people into believing that burdensome overregulation of the Internet is our only choice. Instead of commonsense and transparency, they opt for radical ideological warfare.

One point to clarify is that these pretend consumer advocates are not on their white horses, brandishing their swords and shields, to save your “free and open Internet.” That is what they desperately want you to believe.

The activists are supporters of the deceptively titled “net neutrality," which treats Internet service providers as public utilities, like electric companies. Net neutrality is not neutral at all. It would appoint a bureaucrat to play referee over the Internet, which it doesn’t need, but even worse, that referee would only call fouls on one team. That means that it is nearly impossible (Greek mythology-type impossible) for net neutrality to bring down costs.

Their efforts now focus on protecting a set of 2015 rules put in place by former President Barack Obama and his Federal Communications Commission known as Title II, which classifies Internet service providers as public utilities, like electricity, gas, and water. That is the contentious point in this debate, not the issue of a free and open Internet.

These groups are raising an all-out policy war and kicking dust in the air because of the current FCC’s intent to reverse this crippling 2015 rule, which not only prioritizes certain companies over others but it also manipulates the very foundation of how our nation’s markets work.

The irrefutable economic truth is that more regulation like Title II equals more costs and less innovation.

A market doesn’t become more efficient when a bureaucrat tries to step in and dictate how decisions are to be made and how a market/service/transaction is going to run. That kind of meddling always slows things down, both Internet speeds and innovation, because even if a better solution is found, old regulations can stifle the marketplace and hurt consumers. Think of the way taxi unions have tried to stop ride-share programs like Uber and Lyft.

For example, this trend can be seen in markets from TVs to college, as this Bureau of Labor Statistics chart wonderfully illustrates.

The trend is obvious, but many on the left still think they can regulate an industry into submission. They can use the stick instead of the carrot to encourage innovation and competition. Markets just don’t work that way.

Regulation is an extra constraint, and the way to create more innovation is to eliminate constraints. In a lot of ways, that is the way that the Internet currently functions. The Internet catapulted us into the future because Internet providers and Silicon Valley were not hamstrung by excessive extortion: taxes, regulation, and unionization. Silicon Valley exploded because its barons followed Atlas Shrugged, not Haight-Ashbury.

In the lead up to a potential December vote on restoring Internet freedom at the FCC’s open meeting, there has been an uptick in events, congressional hearings, and commentary. While it’s no surprise that debate continues on the merits of Title II, the FCC needs to look one step further. If it really wants to restore and preserve Internet freedom, it needs a national framework to pre-empt a patchwork framework in the states, which is where the leftist activists will go next to try to get wins.

Sisyphus’s action of rolling his rock make sense, at least in the context of Greek Mythology. It’s his punishment. But this isn’t ancient Greece, and U.S. tech innovators shouldn’t be punished in similar fashion.

The leftist activist support of slow government bureaucracy to foster innovation from the Internet doesn’t make any sense. I guess, unless, they are trying to cheat the laws of economics. That might not be as punishable as cheating death, but maybe they should be “punished” by being forced to read Ludwig Von Mises' Human Action only to return to the riveting beginning of the economic page-turner when they are done.

A punishment for sure, but one which will likely lead to something greater: a faster, cheaper, less-regulated Internet.

Charles Sauer (@CharlesSauer) is a contributor to the Washington Examiner's Beltway Confidential blog. He is president of the Market Institute and previously worked on Capitol Hill, for a governor, and for an academic think tank.
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The $300 Million Contract Awarded to the Interior Secretary's Friend's Company Is Exempt from Government Audits


The federal government has awarded a tiny Montana company a $300 million no-bid contract to repair Puerto Rico's hurricane-wrecked electrical grid. The company, Whitefish Energy, has close ties to Interior Secretary Ryan Zinke. A copy of that contract leaked last night, and it seems to prohibit the federal government from auditing Whitefish's work and to shield other details of the company's efforts from being disclosed via open records laws.
"In no event," the contract says, will the Puerto Rico Electric Power Authority, the Federal Emergency Management Agency, the Comptroller General of the United States, "or any of their authorized representatives have the right to audit or review the cost and profit elements" of the deal.
The contract was posted online by Ken Klippenstein, a contributor to The Daily Beast, the first publication to report on the connections between the company and the secretary of the interior.
The leaked document seems to confirm concerns—voiced by lawmakers, pundits, and reform groups—that the Whitefish contract is a lucrative special deal for a friend of a top administration official, and that it places politics ahead of what's in the best interest of Puerto Ricans, many of whom are still without electricity.
Andy Techmanski, owner of Whitefish Energy, is a neighbor and friend of Secretary Zinke, according to multiple news reports. The two men have publicly disclosed their acquaintance. The company has only a handful of employees and is relying almost entirely on subcontractors to do the actual work of restoring power in Peurto Rico.
Members of Congress have called for an investigation into the Whitefish contract. Yesterday members of the House Committee on Energy and Commerce sent a letter to Techmanski seeking copies of all contracts and subcontracts signed by Whitefish as part of its work in Puerto Rico. Meanwhile, members of the House Natural Resources Committee wrote to the Puerto Rico Electric Power Authority (PREPA) requesting more information about how and why Whitefish was selected for this work.
Separately, Sens. Maria Cantwell (D-Wash.) and Ron Wyden (D-Ore.) have requested a Government Accountability Office review of the "use of public money to reimburse work completed by Whitefish Energy," according to Reuters.
Prior to landing the contract for repair work in Puerto Rico, Whitefish's largest project had been a $1.3 million deal to rebuild less than 5 miles of electrical lines in Arizona, The Washington Post reported this week. By comparison, there are more than 2,400 miles of transmission lines and 30,000 of distribution electrical lines in Puerto Rico.
The Trump administration and the company itself have offered only the barest of explanations for how a small electrical firm from Montana managed to land a lucrative contract for work in the Caribbean. Both have claimed that the company has experience working in mountain ranges and on rugged terrain and have denied that cronyism played a role in awarding the contract.
"There was no federal involvement," Chris Chiames, a spokesman for Whitefish Energy, told BuzzFeed this week. "There was never any special favors asked, nor would there have been."
The Federal Emergency Management Agency (FEMA), which is no stranger to fiscal malfeasance, said Friday that it had "significant concerns" about the Whitefish contract. According to The Hill, FEMA denied having signed off on the contract and said details of the contract suggesting as much were inaccurate.
Whether Whitefish gets the job done is supposed to be shrouded in secrecy. The copy of the contract posted by Klippenstein includes a provision prohibiting the government from auditing its work. Another part of the contract says the Puerto Rican government "waives any claim against [Whitefish Energy] related to delayed completion of work."
Until the Trump administration can offer a better explanation for the decision to award a multi-million no-bid contract to a company with close ties to a top administration official, this whole thing smells really bad. The administration sure looks like it's been swallowed by the very swamp it promised to drain.

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6 Reasons to Use a VPN


A Virtual Private Network, or VPN, allows you to browse the Internet without fear of being spied on by neighbors, hackers, or the government, as the case may be. While you might think that only those with something to hide would be interested in using a VPN, that’s definitely not the case. Think of all the information you put out there on a daily basis without even thinking about it: Your Facebook status, your credit card numbers, your passwords…the list goes on. You might think that the websites you’re using are secure, and while that may be the case, it’s the security of your network that you need to worry about.
https://goo.gl/1L5zGw
There are also some ways you can benefit from using a VPN while utilizing WiFi connections other than your own, as well as if you were to travel abroad. Choosing the right VPN allows you to essentially view the Internet as if you’re in your home country, without any restrictions that may affect local ISPs. Bear in mind that you utilize a VPN in this manner at your own risk, as many countries can be extremely strict when enforcing their Internet censorship policies.
If you’re still on the fence about whether or not to use a VPN, decide for yourself after reading up on the following benefits of a Virtual Private Network:


Access restricted content abroad

So you took a trip to another country, but it’s raining and you’re jet-lagged. You go to load up some Breaking Bad on Netflix, only to realize that Netflix is completely blocked in the country you’re currently staying in. And so are a ton of your favorite websites. With a VPN, you can use your American IP address anywhere in the world, thus tricking Netflix and other websites into thinking your actually in the States. Hey, it’s not like you’re downloading movies illegally.


Access restricted content at school or work

How many times have you tried to visit a legitimate site for work- or school-related research only to find it’s been blocked by your organization’s “Acceptable Use” policy? I can recall a time when I worked in a high school in which Khan Academy was blocked. I’m not advocating for you to circumvent your school or company’s gateway for illicit or immoral means, but using a VPN can allow you to access important information that is completely necessary to your current task.


Use public WiFi

Public WiFi is about as unsecure as you can get. If you’ve ever logged into the free WiFi at Starbucks, you ran a huge risk of having all of your information stolen by some guy sitting in his car in the parking lot. Not only that, but if you really weren’t careful, you may have logged into a different WiFi network altogether, inadvertently handing your information directly over to a spoofer without him having to do any work at all. With a VPN, your information is encrypted, so it is indecipherable to anyone trying to eavesdrop.
https://goo.gl/1L5zGw

Private file sharing

Again, I’m not saying you should be downloading and uploading stolen files such as copyrighted music and movies, but a VPN allows you to send and receive files to friends without anyone else seeing what you’re doing. Surely there times you need to share files that you don’t want others seeing. By using a VPN, sending private documents or personal photo albums can be done without the thought crossing your mind of your information being leaked to the world for all to see.


Browsing isn’t logged

Once again, this sounds a little shady, but think about it. Imagine you were accused of a drug-related crime, but weren’t able to prove your innocence. The authorities subpoena your Internet browsing history, and find that you had previously looked up the recipe for crack cocaine. It’s not going to matter that this was for a research project in chemistry class; it’s only going to make you look worse in front of a judge. If you had used a VPN, your browsing history would be completely untraceable, and you’d have a much better chance at convincing the court of your innocence.
Right to privacy

Above all else, privacy is (or at least, should be) a basic human right. Everything discussed above should be private in the first place. But unfortunately, in this day and age, it’s not. Even those who have nothing to hide should be wary about how their Internet browsing habits may appear when viewed out of context by outsiders. Remember: Nothing you do online is private, but with a VPN you can minimize the chances of your private information becoming public knowledge.
https://goo.gl/1L5zGw

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Massive iOS 11 leak reveals key iPhone 8 secrets ahead of launch


Oh, Apple, you just can’t keep leaking unreleased software, can you? After the massive HomePod leaks that practically confirmed many of the iPhone 8 rumors that we kept bumping into, we have a similar blunder from the Cupertino-based company. This time around, someone close to Apple leaked iOS 11 GM, the final iOS 11 version that’s actually be installed on the iOS devices launching soon. And iOS 11 GM is full of iPhone 8 details.

The software was obtained by 9to5Mac, which inspected it for iPhone 8 clues. It turns out there are plenty of secrets that were not spilled in the previous HomePod dump.

iPad Pro display
The iPhone is finally getting the True Tone Display that Apple first launched on the iPad Pro for white balancing. iOS 11 GM beta also indicates the resolution of the phone will be at 2436 x 1125, which seems to match previous leaks and estimates.

iPhone 8 design
More references to the new iPhone 8 are found in iOS 11, which confirm the phone’s top notch. An animation that shows instructions for enabling the SOS mode also highlights the design changes, including the top bezel and bigger on/off button on the side.

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FTC settles with Lenovo over a built-in snooping software, $3.5 million fine







SAN FRANCISCO —  Lenovo, the world’s second largest computer manufacturer, has settled with the Federal Trade Commission over charges it shipped some of its laptops preloaded with software that compromised security protections in order to deliver ads to consumers. The company will also pay $3.5 million to 32 states that were part of the settlement.

The VisualDiscovery program caused pop-up ads to appear on the user's screen whenever his or her cursor hovered over a similar-looking product on a website. While only information about websites the user visited was transmitted, the program had the ability to access all of a consumer’s sensitive personal information transmitted over the Internet, including login credentials, Social Security numbers, medical information, and financial and payment information, the FTC alleged.

Consumers are frequently shown ads the correspond to their search or viewing history, but it's done via ad tracking software or cookies, which can be turned off on Facebook and Google or by deleting cookies. In the case of the VisualDiscovery software, the software hijacked encrypted web sessions.

“It’s the online equivalent of someone intercepting your mail, opening it, reading it, closing it back up and then putting it back in your mailbox,” said FTC acting chair Maureen Ohlhausen.

The program was created by an third-party advertising software company Superfish that was founded in Israel but headquartered in Palo Alto, Calif. It has since shut its doors.

As many as 750,000 laptops sold in the United States had the program installed from 2014 through 2015, the FTC says.

The FTC alleges that beginning in August of 2014, China-based Lenovo began selling laptops in the United States that came pre-installed with the software program. Consumers weren’t told the software was on their systems.

Beijing-based Lenovo made headlines in 2005 when it purchased IBM’s personal computing division for $1.75 billion, an acquisition that at the time was controversial as many feared it was a beachhead for other Chinese businesses. Today it is the world’s second-largest PC maker, with 20.4% of the global market, very close behind HP which has 21.8%, according to research firm IDC. In 2016 Lenovo's revenue was $43 billion.

Lenovo has published a list of computers that came with the software installed. Its popular ThinkPad laptops were not affected.
“Egregious does describe it,” said Eugene Spafford, founder of the Center for Education and Research in Information Assurance and Security at Purdue University.

“Sadly, other vendors may be doing something similar as the competition for ad revenue is huge, and the mechanisms are not that difficult to build in (or get prepackaged),” he said.

The snooping software was first discovered by and reported by Chris Palmer from the Google Chrome security team.

As part of the settlement, Lenovo must now get consumers' permission before pre-installing any software that injects advertising into consumers' Internet browsing sessions or that transmits sensitive information from their systems to third parties. Lenovo must also implement a comprehensive software security program to test all software the comes preloaded onto its laptops, and that security program will be subject to third-party audits.

In a statement, Lenovo said it "disagrees" with allegations contained in these complaints but is pleased to bring the matter to a close.
In order to be able to show pop-up ads on encrypted websites, the VisualDiscovery program used an insecure method to replace the digital certificates for the websites with its own certificates. VisualDiscovery did not adequately verify that the websites’ digital certificates were valid before replacing them, and used the same, easy-to-crack password on all affected laptops rather than using unique passwords for each laptop, the FTC said.

That meant that even if a consumer went to a website that began with https://, which would lead them to believe they were on a secure and encrypted site, in fact the security had been breached.
“The harm was consumers were buying computers whose basic security features were undermined without their knowledge or consent,” said Ohlhausen.
Lenovo stopped installing the software over a year ago, and many antivirus programs were updated to identify the program and remove it was news about the insecurity broke.

Still, it’s possible that it still exists on some laptops, the FTC said. Lenovo has published instructions on how to remove the Superfish software on its website.

Neither Lenovo nor the FTC are aware of any actual instances of a third party exploiting the vulnerabilities the VisualDiscovery software created to steal user’s communications.

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