Net Neutrality Vote Coming Next Month

The U.S. Federal Communications Commission will finally vote on new net neutrality rules in their February meeting.

FCC Chairman Tom Wheeler will bring a proposal to a vote during the commission’s Feb. 26 meeting, FCC spokeswoman Kim Hart said Friday, following a report in the Washington Post.

It’s unclear, however, what form those rules will take. Hart declined to comment further on the net neutrality order Wheeler plans to circulate in February.

Many telecom policy experts had expected the FCC to take action on net neutrality early this year after a year-long fight over the issue.

Nearly a year ago, a U.S. appeals court threw out a large portion of net neutrality rules the FCC approved in late 2010. The court ruled that the FCC’s rules came too close to common carrier regulations when the commission didn’t take the step of reclassifying broadband providers as regulated utilities. The court, however, pointed to a couple if sections of the Telecommunications Act that the FCC could use to pass net neutrality regulations.

After launching a net neutrality proceeding in early 2014, the FCC has received nearly 4 million public comments about proposed regulations. Wheeler originally proposed that the FCC adopt rules that would allow broadband providers to engage in “commercially reasonable” traffic management, and in limited cases, charge Web content providers and services for prioritized traffic.

But many people filing comments, and groups like Free Press and Public Knowledge, called on the FCC to pass stronger rules prohibiting traffic prioritization deals. Many advocates of strong net neutrality rules want the FCC to reclassify broadband as a regulated public utility, while exempting them from some common carrier rules, like price regulation.

Recent news reports have suggested Wheeler is leaning toward so-called hybrid net neutrality rules that would classify a part of broadband service as a regulated public utility.

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Samsung Goes With Tizen

Samsung Electronics Co Ltd has announced that all its new smart television products launched in 2015 will be powered by the Tizen operating system, marking a fresh effort by the company to increase the usage of the software platform.

Smart TVs offer additional software and connectivity functions, such as video streaming and web browsing capabilities. Samsung demonstrated TV sets powered by Tizen at developer conferences last year.

“We are focusing our efforts on Tizen right now,” Kim Hyun-suk, Samsung’s president of visual display business, told Reuters in an interview. “We hope that other TV makers will also use it and help build an ecosystem that will help the platform grow.”

Televisions would be an addition to the modest stable of Tizen products, which consists of a few smartwatches and cameras despite years of development and support by the world’s top maker of smartphones and TVs.

The platform represents the most visible effort on the software front by Samsung, which has sought to free itself from Google Inc’s Android platform.

But Tizen has so far failed to take off, due in part to Samsung’s failure to launch a smartphone powered by the system. Some analysts are skeptical about the platform’s viability despite Samsung’s standing as top smartphone maker, especially as Android and Apple Inc’s iOS tighten their grip in the smartphone sector.

Developers say that until there is a meaningful user base for Tizen they will have little incentive to make innovative software applications for the system, deemed crucial if Samsung is to convince wary consumers to try it out.

While the launch of Tizen-based TVs will increase the platform’s user base, it is unclear if that alone will be enough to pique developers’ interest. Users of smart TVs tend to use fewer apps than they would on smartphones.

Still, the operating system is expected to play a key role in Samsung’s smart-home business. Tizen can also run on devices with low computing power such as refrigerators and washing machines, offering a way for users to monitor and control such devices remotely.

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Can The USPS Win At E-commerce?

Dealing with a decline in the mail it has been delivering since the days of America’s Revolutionary War, in 2012 the U.S. Postal Service began aggressively targeting e-commerce and lapsed customers as the way to salvage its slumping business.

“Really it started almost at the level of cold-calling, talking to people who really hadn’t spoken to us in a long time,” said Nagisa Manabe, who joined the USPS in May 2012 as chief marketing and sales officer from Coca-Cola Co after a career in the private sector. “And really trying to persuade them to consider us as a very viable alternative in the shipping market.”

With further drops in its traditional bread-and-butter products ahead, the USPS wants to capitalize on e-commerce, which consulting firm Detroit LLP has predicted should grow 14 percent this holiday season alone. But industry experts question whether the USPS has enough space in its delivery vans and whether its unionized work force can handle a greater proportion of the e-commerce market.

Over the past two years the USPS has rolled out real-time scanning for packages, a vital tool for online retailers and consumers alike to track their packages. It is also upgrading all of its delivery workers’ handheld scanners.

The rise of the Internet has taken a heavy toll on first-class mail, the USPS’s most profitable product. That falling business played a significant role in the USPS’s fiscal 2014 loss of $5.5 billion, its eighth consecutive year in the red.

From 2009 to 2013, the volume of first-class mail deliveries dropped more than 20 percent. In the fiscal year ending Sept. 30, USPS deliveries declined to 155.4 billion pieces from 158.2 billion. First-class deliveries accounted for 2.2 billion pieces of that decline.

But package deliveries rose to more than 4 billion pieces from 3.7 billion, accounting for $1.1 billion of the USPS’s revenue growth of $1.9 billion. In the run-up to Christmas, the USPS has been doing Sunday deliveries for Amazon.com Inc in a number of cities. Manabe adds that the agency will handle the online retailer’s push into same-day and next-day deliveries “in many markets.”

EBay Inc is another major customer and Manabe says “pretty much anyone who’s in the e-commerce space at least does some volume with us.”

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Are We Moving Too Fast Into Cloud Computing?

Businesses need to take a hybrid approach when it comes to the cloud, Dell has said.

The firm’s cloud strategy leader, Gordon Davey, told V3.co.uk in an interview that cloud computing is “overhyped” and moving an entire IT infrastructure into the cloud would be an unrealistic goal.

Davey also believes that cloud vendors have enticed companies to make major shifts to the cloud without considering a model that works for their business.

“I think it’s definitely a case of cloud as a buzzword is overhyped. The idea of cloud for the sake of cloud doesn’t really stand out,” he said.

“The problem comes from customers that have seen the buzzword and want to get the benefits and are just jumping on the bandwagon because it is an industry hype thing, rather than actually evaluating the benefits that a true cloud can bring, and applying that to their business requirements.”

Davey outlined the need to take a more considered approach, adopting an IT strategy that mixes on-premise infrastructure with cloud components to harness the technology without escalating IT costs and complexity.

“The future is going to be hybrid. It’s horses for courses – putting the right workload on the right platform,” he said.

“It’s that balanced approach that I think we’re going to see much more often, rather than trying to put everything into the cloud and potentially failing.”

Davey’s position is unsurprising given Dell’s approach of acting as a ‘middleman’ between cloud service providers and end users, providing hardware, software, services and consultancy to enable businesses to use cloud computing in a way that works for them.

“We see our role as enabling the cloud industry, being that underlying technology,” he said, going on to detail Dell’s five pillar approach to acting as a cloud middleman rather than developing its own end-to-end cloud offering.

The strategy involves consulting on a customer’s cloud needs, helping provide cloud infrastructure, brokering deals between vendors and users, providing security, and managing how multiple cloud services are deployed in a single business.

Davey claimed that Dell’s strategy will help companies take a more tailored approach to cloud adoption, adding: “A properly deployed cloud for the correct workloads in hugely beneficial.”

Dell is not alone in promoting a hybrid approach to cloud adoption. Microsoft is adding hybrid cloud capability to the next version of Windows Server.

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Oracle Acquires Datalogix

On Monday, Oracle agreed to purchase Datalogix for an undisclosed sum, saying that together the companies will provide marketers with a richer understanding of what consumers do, say and buy, allowing them to measure the effectiveness of their different campaigns and advertising channels.

Oracle plans to link the Datalogix service, which provides the spending data to customers through a cloud-based tool, to its other cloud-based services via Oracle Identity Graph. This, it said, will allow it to connect consumer identities to build better profiles that can be used to personalize online and mobile services — and even to target them offline and via the TV.

It made no commitment to maintain the existing Datalogix product roadmap, saying that it was still reviewing its plans. The companies set no timeline for completing the deal, which they said must meet customary closing conditions including obtaining regulatory approval.

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Intel Shows New IoT Platform

Intel showed off a new platform which it claims makes it easier for companies to create Internet-connected smart products using its chips, security and software.

Intel’s platform is like Lego and based on the chipmaker’s components and software for companies to create smart, connected devices. The only difference is that you can’t enact your own Doctor Who scene from it.

Doug Davis, head of Intel’s Internet of Things business, said at a launch event in San Francisco it will make it a doddle to connect to data centres in order analyse data collected from devices’ sensors.

Intel’s chips should compute capability in end-point devices that scale from its highest performance Xeon processor to the Quark family of products.

Intel’s Internet of Things Group had $530 million in revenue in the September quarter. That accounted for just 4 percent of Intel’s total revenue in the quarter, but it grew 14 percent over the previous year, which was faster than the company’s PC business.

Dell, SAP, Tata Consultancy, Accenture and other companies are working with the new reference model, Davis said.

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Ericsson Goes After Xiaomi

Ericsson has thrown a spanner into Chinese firm Xiaomi’s expansion plans, and has reportedly stopped it from selling handsets in India.

According to reports, this is already happening. We have asked Ericsson to confirm its role and what it wants to say about it. It told us that the reports are true and that it is ready to defend itself.

“It is unfair for Xiaomi to benefit from our substantial R&D investment without paying a reasonable licensee fee for our technology. After more than 3 years of attempts to engage in a licensing conversation in good faith for products compliant with the GSM, EDGE, and UMTS/WCDMA standards, Xiaomi continues to refuse to respond in any way regarding a fair license to Ericsson’s intellectual property on fair, reasonable and non-discriminatory (FRAND) terms,” it said in a statement.

“Ericsson, as a last resort, had to take legal action. To continue investing in research and enabling the development of new ideas, new standards and new platforms to the industry, we must obtain a fair return on our R&D investments. We look forward to working with Xiaomi to reach a mutually fair and reasonable conclusion, just as we do with all of our licensees.”

Xiaomi has responded to Bloomberg but it declined to say too much until it has access too all of the information.

“Our legal team is currently evaluating the situation based on the information we have,” said the spokesperson. “India is a very important market for Xiaomi and we will respond promptly as needed and in full compliance with India laws.”

The banning on the sale of devices was approved by a court in Delhi India, according to reports, and is based on an Ericsson claim on eight patents that it owns.

Xiaomi has bold plans for its own future and sees itself competing against rivals like Samsung and Apple. It has given itself between five and 10 years to do this, and will presumably want to include the Indian market in those plans.

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Yet Another Retailer System Hacked

Women’s clothing retailer Bebe Stores has become the latest in a growing list of national retailers to be hit by an attack on its credit card payment system.

The company said Friday that the cardholder name, account number, expiration date, and verification code could have been stolen by hackers who apparently had access to the company’s payment processing system between Nov. 8 and 26.

The incident came to light in late November when Bebe said it noticed suspicious activity on computers that operate the payment processing system. Stores affected were the roughly 200 it operates in the U.S., Puerto Rico and the U.S. Virgin Islands.

“If you used a payment card at a U.S., Puerto Rico or U.S. Virgin Islands store during this time frame, you should review your account statements for any unauthorized activity,” it said in a message to customers.

The last couple of years have been bad ones for the safety of credit card data at major U.S. retailers. Millions of credit and debit card numbers have been compromised in breaches at retailers, including Target, Home Depot, PF Chang’s restaurants, Super Valu grocery stores, Neiman Marcus, UPS Store and others.

In many cases, the attacks were targeted at payment processing terminals and used sophisticated malware that stole card details as consumers swiped their cards. Many of the thefts were only discovered after the card numbers appeared for sale on Internet hacking forums.

Such was the case with Bebe Stores. First news of the hack came earlier this week through the closely followed Krebs on Security blog.

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Intel’s Security Exec Jumps Ship

Michael Fey has left Intel Security Group to become chief operating officer at Blue Coat. Blue Coat is apparently not the traditional garb of a British Holiday Camp entertainer, but apparently a privately owned network security company.

Fey was one of the few top McAfee managers to stay with the company after it was bought by Intel in 2011. McAfee is now part of Intel Security Group, where Fey had been chief technology officer. Fey said that his role at Blue Coat would be “very similar” to his old job but he was allowed to focus on the cloud and the advanced threats space more.

“Blue Coat had tremendous growth behind the scenes and now I get to focus on taking that growth and trying to get it to the billion-dollar revenue mark,” he told Reuters.

Since the $7.7 billion acquisition by Intel, McAfee has lost senior managers and key talent in technology development, research and sales. At Blue Coat, Fey will replace David Murphy, who will stay on as a strategic adviser to the board.

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Cisco Files Suit Against Rivals

Network equipment maker Cisco Systems Inc filed several lawsuits on Friday against Arista Networks Inc, alleging the smaller rival of copying its networking technologies.

The lawsuits, filed in a federal court in California, accuse Arista of infringing on 14 patents on networks and also on related copyrights, Cisco General Counsel Mark Chandler said in a blog post.

Arista was formed by former Cisco employees, including Chief Development Officer Andreas Bechtolsheim, Chief Technology Officer Kenneth Duda, and Chief Executive Officer Jayshree Ullal.

“Rather than building its products and services based on new technologies developed by Arista, however, and providing legitimate competition to Cisco, Arista took a shortcut by blatantly and extensively copying the innovative networking technologies designed and developed by Cisco,” one of the complaints said.

Cisco is a leader in the networking world, with revenue of $12.2 billion in the third quarter. Arista, in contrast, reported sales of $155.5 million for the period, although it is growing fast.

Arista said it had not yet been able to evaluate the lawsuits.

“While we have respect for Cisco as a fierce competitor and the dominant player in the market, we are disappointed that they have to resort to litigation rather than simply compete with us in products,” Arista said in an emailed statement.

Cisco filed the lawsuits on the same day the U.S. Supreme Court agreed to review a $64 million patent infringement verdict that Commil USA LLC won against the company.

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