Legal and Procedural Flaws May Doom FCC’s Comcast Ruling
Source: The Progress & Freedom Foundation

There appear to be serious flaws in the legal and procedural actions taken by the Federal Communications Commission when it found Comcast guilty of violating the principles announced in its 2005 Internet Policy Statement, states PFF Senior Fellow Barbara Esbin in “The Law is Whatever the Nobles Do: Undue Process at the FCC” released today by The Progress & Freedom Foundation.

In the paper, Esbin questions the Commission’s decision to combine adjudication, or enforcement actions directed at specific past behaviors, and rulemaking, or prospective rules generally applicable across an industry, in the same procedure. Among other failings, the FCC has never released a notice of proposed rulemaking that either publicly outlined the rules to be applied to Comcast’s broadband network management practices or the procedural vehicle the FCC would use to handle violations of such rules. It appears that the Commission also failed to provide Comcast with adequate process in which to address complaints, by relying on statements made in unrelated proceedings for “notice” and by claiming the two public hearings the company was invited to speak at satisfied due process “opportunity to be heard” requirements.

The author further explains that the Commission lacked established procedures for addressing “Formal Complaints” against a non-common carrier. “It appears,” Esbin states, “to have both created a new set of such procedures at the same time it applied them to Comcast, and established a new framework for [handling] similar complaints in the future.”

+ Full Report (PDF; 170 KB)

More Americans Seeking Health Information, Especially on the Internet
Source: Center for Studying Health System Change

In 2007, 56 percent of American adults—more than 122 million people—sought information about a personal health concern from a source other than their doctor, up from 38 percent, or 72 million people, in 2001, according to a national study released today by the Center for Studying Health System Change (HSC).

Consumers who actively researched health concerns widely reported positive impacts—more than half said the information changed their overall approach to maintaining their health, and four in five said that the information helped them to better understand how to treat an illness or condition, according to findings from HSC’s 2007 Health Tracking Household Survey, a nationally representative survey containing information on 18,000 people; the survey had a 43 percent response rate.

Across all categories of age, education, income, race/ethnicity and health status, consumers increased their information seeking significantly, but education level remained the key factor in explaining how likely people are to seek health information. In 2007, for example, 72 percent of people with a graduate education sought health information, compared with 42 percent of those without a high school diploma.

+ Full Report

Commission Orders Comcast to End Discriminationatory Network Management Practices (PDF; 137 KB)
SOURCE: Federal Communications Commission

Comcast Corp.’s management of its broadband Internet networks contravenes federal policies that protect the vibrant and open nature of the Internet, the Federal Communications Commission found today.

Ruling on a complaint by Free Press and Public Knowledge as well as a petition for declaratory ruling, the Commission concluded that Comcast has unduly interfered with Internet users’ right to access the lawful Internet content and to use the applications of their choice.

Specifically, the Commission found that Comcast had deployed equipment throughout its network to monitor the content of its customers’ Internet connections and selectively block specific types of connections known as peer-to-peer connections. The Commission’s action today is the result of an exhaustive examination of conduct that was first brought to light by Comcast subscribers who noticed that they had problems using peer- to-peer applications, such as BitTorrent, over their Comcast broadband connections. When first confronted with press reports about these difficulties, Comcast disclaimed anyresponsibility for its customers’ problems. However, after tests conducted by the Associated Press and Electronic Frontier Foundation suggested that Comcast was selectively interfering with attempts by customers to share files online using peer-to-peer applications, Comcast changed its story and admitted that it did target its subscribers’ peer-to-peer traffic for interference. The company initiallyclaimed that it did so onlyduring periods of peak network congestion and of heavy network traffic. Later, confronted with yet more evidence suggesting that interference was not limited in this manner, Comcast recast its position yet again and admitted that it interferes with peer-to-peer traffic regardless of the level of overall network congestion at the time and regardless of the time of day. The Commission’s extensive investigation into this matter–which included two public hearings, substantial input from experts, and thousands of comments from companies, organizations, and the public at large –confirms that Comcast’s interference is far more invasive and widespread than the company first conceded.

The Communications Market 2008
Source: Office of Communications (UK)
From press release:

People in the UK are spending more time using communications services than ever before – but paying less for them, according to Ofcom’s latest annual report into the UK’s £51 billion communications industry.
…
The 365 page report shows that in 2007 we spent an average of 7 hours and 9 minutes a day using an array of communications services - up by 6 minutes from 2002. This includes watching television, surfing the net, using our mobiles, talking on a landline phone and listening to the radio.

Our mobile and internet use has increased by the greatest amount. Between 2002 and 2007 the time we spent talking and texting on our mobiles doubled, up from 5 minutes to 10 minutes each day. Meanwhile, time spent on PCs and lap-tops has grown fourfold between 2002 and 2007 - from 6 minutes to 24 minutes per person every day.
…
Despite this growth in use and take up, when it comes to paying for communications services, consumers get more for their pound. Overall average household spend on communications services was £93.63 a month in 2007, a fall of £1.53 (1.6 per cent) on the average spend in 2006 and a fall of £4.31 (4.4 per cent) since 2004.

This compares to big price increases for other goods, with food prices up by almost 7 per cent and the overall retail price index (RPI) rising to 4.1 per cent in 2007.

+ The Communications Market 2008 - 1 (PDF; 1.8 MB)
+ The Communications Market 2008 - 2 (PDF; 1.9 MB)

Hat tip: Andrew Mackenzie

Developments in the field of information and telecommunications in the context of international security (PDF; 47 KB)
Source: Secretary-General on Developments (UN)
From UN Pulse summary:

The report of the Secretary-General on Developments in the field of information and telecommunications in the context of international security, has been issued. The report provides a summary of the replies received from governments on the topics related to information security and security of global information and telecommunications systems.

Are There Business Applications for Virtual Worlds?
Source: Knowledge@Emory

In this Special Section of Knowledge@Emory, professors from Goizueta Business School and industry experts in the field of virtual worlds offer their insight on this growing Internet-based market. From the industry leader Second Life to the newest entry in the game, Google’s own Lively, the activity, interest, and investment in the virtual world industry is strong.

The stories in this special report analyze the history and trends in the marketplace, as well as the academic and business applications of virtual worlds. Now, well-known names such as Second Life, Entropia Universe, and Cyworld have competition from a host of other sites, including ones devoted to virtual pets, cartoon characters, TV shows, and more. Researchers in academia, health care, and various parts of Corporate America are exploring marketing and research applications of virtual worlds, using Second Life and other virtual worlds as the jumping off point for their work.

+ Uncovering the Economics and Possibilities of Virtual Worlds
+ Virtual Worlds: Mapping a New Business Reality
+ Virtual World Investment Goes to Youth Market
+ From Toys to Tools: Exploring Virtual Worlds in the Classroom

Speed matters: A report on Internet speeds in all 50 states (PDF; 5.0 MB)
Source: Communications Workers of America
From press release:

The results of a nationwide study of Internet connection speeds in the United States reveal little progress over the previous year in the country’s median data download speed. At the present rate—with a gain of only four-tenths of one megabit per second—it will take the U.S. more than one hundred years to catch up with current Internet speeds in Japan.

The national report is based on aggregated data from nearly 230,000 Internet users who took the online Speed Matters Speed Test (www.speedmatters.org), a project of the Communications Workers of America (CWA).

The Speed Test, which measures the last-mile speed of a user’s Internet connection, shows that the median real-time download speed in the U.S. is a mere 2.3 megabits per second (mbps). The best available estimates show average download speeds in Japan of 63 mbps, in South Korea of 49 mbps and in France of 17 mbps. That means the same multimedia file that takes four minutes to download in South Korea would take nearly an hour and a half to download in the U.S.

+ State Ranking Chart (PDF; 177 KB)

Online Consumers at Risk and the Role of State Attorneys General (PDF; 3.9 MB)
Source: Center for American Progress and Center for Democracy and Technology
From press release:

State attorneys general received thousands of consumer complaints of online fraud and abuse in 2006 and 2007 and yet, with the exception of several notable standouts, brought few significant cases in response, according to a report released today from the Center for American Progress and the Center for Democracy and Technology, Online Consumers at Risk and the Role of State Attorneys General.

Most states supplied the authors with a top 10 list ranking consumer complaint categories (Internet-related and other). In 2007, 24 out of 30 states that provided rankings reported an Internet-related category within their top 10. Eight states ranked Internet-related complaints among their top three most common consumer complaints, including four states that ranked Internet-related complaints at the top of the list.

For 2007 and 2006, 20 states provided the number of consumer complaints associated with each category—the others merely provided rankings without giving the number of complaints. In both years, these states reported roughly 20,000 Internet-related complaints.

The Federal Trade Commission also provides data for all 50 states on consumer complaints related to Internet fraud. These data are compiled from a variety of sources, including 13 state attorneys general. In 2007, the FTC reported 221,226 Internet-related fraud complaints, up almost 16,000 from 2006 and more than 24,000 in 2005.

Newspaper Web Site Audience Rises Twelve Percent in Second Quarter to Nearly 66.4 Million Visitors
Source: Newspaper Association of America

Newspaper Web sites attracted nearly 66.4 million unique visitors on average (40.2 percent of all Internet users) in the second quarter of 2008, a 12.2 percent increase over the same period a year ago, according to a custom analysis provided by Nielsen Online for the Newspaper Association of America.

In addition, newspaper Web site visitors generated an average of just over three billion page views per month throughout the quarter, compared with nearly 2.7 billion during the same period last year.

Press release includes charts.

Fact Sheet: Department of Justice Efforts to Combat Cyber Crime (PDF; 81 KB)
Source: U.S. Department of Justice

In May 2006, President Bush created an interagency Identity Theft Task Force, chaired by the Attorney General and co-chaired by the Federal Trade Commission (FTC) Chairman. After examining government and private sector efforts in the identity theft area, the Task Force in April 2007 issued a report to the President with 31 recommendations to improve our national efforts to combat identity theft. These recommendations included protecting personal data in the private and public sector, investigating and prosecuting data breaches and related identity theft, and assisting victims of identity theft. Since then, the Task Force has worked to implement these 31 recommendations over the last year across the government and with our private sector and international partners.

The Department of Justice has supported this Task Force through the vigorous prosecution of the various forms of identity theft. The Department’s identity theft prosecutions have ranged from simple theft of financial data and documents to credit-card “skimming” operations; high-tech “phishing” schemes; and schemes to use others’ online brokerage accounts to manipulate securities markets.

Energy and Commerce Committee Questions Data Practices of Network Operators
Source: U.S. House of Representatives, Committee on Energy and Commerce

A key Congressional Committee is initiating an inquiry into the privacy concerns raised by the data collection practices of Internet network operators who tailor Internet advertising based on a consumer’s Web surfing activity. Leaders of the Committee on Energy and Commerce wrote today to top cable, phone and Internet companies asking that the companies provide information about their data collection practices.

The letter was signed by Reps. John D. Dingell (D-MI) and Joe Barton (R-TX), the Chairman and Ranking Member of the Committee on Energy and Commerce, and Reps. Ed Markey (D-MA) and Cliff Stearns (R-FL), the Chairman and Ranking Member of the Telecommunications and the Internet Subcommittee.

Earlier this month, Dingell and Markey wrote to Embarq Corporation regarding a test the company had performed to tailor advertising to consumers’ web browsing habits. On July 17, the Telecommunications and the Internet Subcommittee held a hearing on deep packet inspection and the privacy issues implicated by the technology.

Today’s letter was sent to: AOL; AT&T; Bresnan Communications; Bright House Networks; CableOne; Cablevision; Cbeyond; CenturyTel; Charter; Citizen Communications; Comcast; Covad; Cox; Earthlink; Google; Insight; Knology; Level 3; Mediacom; Microsoft; PAETEC; Qwest; RCN; Suddenlink; Time Warner Cable; tw telecom; WideOpenWest; TDS Telecom; United Online; Windstream Communications; Verizon; XO Communications; and Yahoo!.

+ Full text of letter (PDF; 153 KB)

Commission Orders Comcast to End Discriminatory Network Management Practices (PDF; 137 KB)
Source: Federal Communications Commission

Comcast Corp.’s management of its broadband Internet networks contravenes federal policies that protect the vibrant and open nature of the Internet, the Federal Communications Commission found today.

Ruling on a complaint by Free Press and Public Knowledge as well as a petition for declaratory ruling, the Commission concluded that Comcast has unduly interfered with Internet users’ right to access the lawful Internet content and to use the applications of their choice. Specifically, the Commission found that Comcast had deployed equipment throughout its network to monitor the content of its customers’ Internet connections and selectively block specific types of connections known as peer-to-peer connections.

The Commission’s action today is the result of an exhaustive examination of conduct that was first brought to light by Comcast subscribers who noticed that they had problems using peer- to-peer applications, such as BitTorrent, over their Comcast broadband connections. When first confronted with press reports about these difficulties, Comcast disclaimed any responsibility for its customers’ problems. However, after tests conducted by the Associated Press and Electronic Frontier Foundation suggested that Comcast was selectively interfering with attempts by customers to share files online using peer-to-peer applications, Comcast changed its story and admitted that it did target its subscribers’ peer-to-peer traffic for interference. The company initially claimed that it did so only during periods of peak network congestion and of heavy network traffic. Later, confronted with yet more evidence suggesting that interference was not limited in this manner, Comcast recast its position yet again and admitted that it interferes with peer-to-peer traffic regardless of the level of overall network congestion at the time and regardless of the time of day. The Commission’s extensive investigation into this matter–which included two public hearings, substantial input from experts, and thousands of comments from companies, organizations, and the public at large –confirms that Comcast’s interference is far more invasive and widespread than the company first conceded.

Michael Barrett: Cybercrime - and what we will have to do if we want to get it under control
Source: Publius Project (Berkman Center for Internet & Society at Harvard University)

As I write this, in the spring of 2008, we have recently passed a milestone - on April 22nd, 1993, Mosaic 1.0 was released by the National Center for Supercomputing Applications (NCSA) . This was the first web browser used by the general public, making the World Wide Web more than just a tool for academics.

How many Internet users are there today? Conservative estimates exceed one billion people. In a decade and a half we have gone from minimal Internet usage to approximately 20% of the world’s population now being online. Moreover, the bulk of that growth has occurred since the year 2000.

In this essay, I will explore two themes: first, how societies adopt new technologies and second, how governance and regulation may co-evolve with new technologies. I’ll use two historical examples – the road system and airplanes – to ask what lessons they may provide for the Internet.

“You’ve Got Drugs!” V: Prescription Drug Pushers on the Internet
Source: National Center on Addiction and Substance Abuse at Columbia University

Despite a decline in the number of Web sites advertising or selling controlled prescription drugs, like OxyContin and Valium, Xanax and Vicodin, and Ritalin and Adderall, in the past year, 85 percent of Web sites selling such drugs do not require a prescription, according to “You’ve Got Drugs!” V: Prescription Drug Pushers on the Internet, the fifth annual White Paper on this subject released by The National Center on Addiction and Substance Abuse (CASA) at Columbia University.

+ Full Paper (PDF; 794 KB)

McAfee, Inc. Experiment Reveals the Growing Psychological Nature of Spam
Source: McAfee, Inc.

McAfee, Inc. today released the results of its S.P.A.M. (Spammed Persistently All Month) Experiment, in which 50 people from around the world surfed the Web unprotected for 30 days. By taking part in the experiment, participants were given permission to go where most Internet users would not dare, in order to discover how much spam they would attract and what the effects would be. Having studied the daily blogs and analyzed the spam itself, McAfee® researchers confirm that spammers are as active as ever; they are increasingly using psychological tricks to lure Internet users to part with their contact details, identity information and cash. The experiment clearly shows that spam continues to evolve, utilizing more local languages and cultural nuances, as well as becoming much more targeted in a bid to avoid detection.

In the first experiment of its kind, the participants from 10 countries received more than 104,000 spam e-mails throughout the course of the experiment. That’s 2,096 messages each - the equivalent of approximately 70 messages a day.

One of McAfee’s goals was to highlight that, contrary to what people might think, spam is not only a nuisance but it also poses a very real threat and is showing no sign of slowing down. For anyone that has ever wanted to ‘click’ and find out if an offer really is “too good to be true,” the McAfee S.P.A.M. Experiment satisfies that curiosity, without any of the risks.

A Pain or Perilous?

Many of the spam messages received were phishing e-mails; e-mails which pose as a trustworthy source to criminally acquire sensitive information such as usernames, passwords and bank account details. Other e-mails carried viruses and many allowed malware to be silently installed on the computers by persuading participants to surf unsafe Web sites. A number of participants noted a decrease in their computers’ processing speeds, as well as an increased number of pop-ups.

“Many of our participants noticed that their computers were slowing down, which means that while they were surfing, unbeknownst to them, Web sites were installing malware,” said Jeff Green, senior vice president of McAfee Avert(R) Labs. “In just 30 days there was quite a noticeable change in the system performance of their computers. Notably showing just how much malware was being installed without their knowledge. Spam is much more than a nuisance; it’s a very real threat.”

+ McAfee Global SPAM Diaries (zipped PDF; 1.4 MB)

See related Network World story: Diary of a deliberately spammed housewife

Hat tip: PW