Politics and Law

A few days after leaked e-mail messages appeared on the Internet, the U.S. Congress may probe whether prominent scientists who are advocates of global warming theories may have misrepresented the truth about climate change.

Sen. James Inhofe, an Oklahoma Republican, said on Monday the leaked correspondence suggested researchers "cooked the science to make this thing look as if the science was settled, when all the time of course we knew it was not," according to a transcript of a radio interview posted on his Web site. Aides for Rep. Darrell Issa, a California Republican, are also looking into the disclosure.

The leaked documents (see our previous coverage) come from the Climatic Research Unit of the University of East Anglia in eastern England. In global warming circles, the CRU wields outsize influence: it claims the world's largest temperature data set, and its work and mathematical models were incorporated into the United Nations Intergovernmental Panel on Climate Change's 2007 report. That report, in turn, is what the Environmental Protection Agency acknowledged it "relies on most heavily" when concluding that carbon dioxide emissions endanger public health and should be regulated.

Read more of "Congress May Probe Leaked Global Warming E-Mails" at CBSNews.com.

Spanish officials said earlier this week that the government will require service providers to offer broadband with speeds of at least 1 Mbps at regulated rates to residents living anywhere in the country.

A frenzy over a new Sony Ericsson smartphone at the GSMA Mobile World Congress in Barcelona last February.

(Credit: Marguerite Reardon/CNET )

The Spanish telecommunications minister issued a statement Tuesday declaring that broadband would be added to the country's so-called "universal service," which guarantees reasonably priced telephone service to citizens, Reuters reported. The goal is to offer affordable broadband with speeds of at least 1 Mbps to residents by 2011.

To achieve this goal the Spanish government will require any service provider that gets universal service funds to also include broadband services to any home as part of its service.

Last month, Finland's minister of communications announced a similar plan. By July 1, 2010, every person in Finland will have the right to a 1 Mbps connection.

While the 1Mbps speeds don't sound like much, Spanish and Finnish officials say it's just the beginning. They hope this speed will serve as a starting point. And they believe that network operators will increase speeds over time.

Finland has already established aggressive public policies in place to encourage more ubiquitous and faster broadband deployments. In 2008, the Finnish government said it would pay a third of the cost to wire the country with fiber by 2015.

These mandates come at a time when the U.S. Federal Communications Commission is drafting a national broadband policy that outlines a plan for policies to help provide universal broadband to every American. The plan will be presented to Congress in February 2010.

In a report this week to the FCC, the task force working on the national broadband policy highlighted several barriers to universal broadband, including problems with the U.S. Universal Service Fund. But taking action to change the system is difficult.

The U.S. Universal Service Fund subsidizes the cost of building telephone infrastructure throughout the country in places where it is too expensive to deploy such services. Much of the money from this fund, which is collected from consumers as part of their monthly phone bills, is still being used to subsidize regular telephony service. Many policy makers and government officials say the program needs to be revised to include broadband. And the funding mechanism also needs to be revised.

While many consumer advocates believe the U.S. government should take a more active role in directing policy in way similar to what is happening in Finland and Spain, it's important to note that the U.S. is a much larger country by population and geography than either of these countries. To put it in context, Finland has about 5.3 million residents, compared to more than 300 million people who live in the U.S.

Developing and funding universal broadband access in the U.S. will cost anywhere between $20 billion and $350 billion, according to government estimates. That said, establishing a clear policy road map could help pave the way to truly affordable high speed Internet access everywhere in the U.S.

The Federal Communications Commission met Wednesday to discuss obstacles to enacting a national broadband policy that will provide high-speed Internet access to every American.

President Obama has made universal broadband access a key goal. Grants and loans for helping make universal broadband access a reality have already started being doled out as part of Congress' economic stimulus package.

In an effort to ensure that new programs and policies work toward achieving the same goal, the FCC has been tasked with developing a national broadband plan to help direct policy makers in getting affordable broadband to every American. A task force, headed by Blair Levin, who had been chief of staff for former FCC chairman Reed Hundt, is developing the plan that will be presented to Congress on February 17, 2010.

Levin and his staff appeared before the FCC Wednesday to present what they see as gaps or obstacles that must be overcome to develop clear recommendations and policy for universal broadband.

Levin said that commissioners and policy makers must consider the broadband ecosystem if they hope to achieve the president's goals. This means taking into account not only consumer needs but also considering the needs of the industry, which will likely fund the bulk of the $20 billion to $350 billion that will be needed to build new infrastructure and develop new programs for spreading broadband throughout the country.

In considering these needs, Levin said it is important to identify and come up with ways to overcome some hurdles that stand in the way for achieving the ultimate goal of providing broadband to every American.

Obstacles to universal broadband access
One major issue has to do with the Universal Service Fund, a program funded through extra charges on consumers' phone bills. The USF was originally designed to provide subsidies to pay for phone service in rural communities. But the task force believes that more of the $7 billion that is allocated each year from the fund should also be used to help subsidize the cost of deploying broadband in rural areas.

Today, most of these funds are used for voice services and not broadband, the task force reported. And of the money that is used to subsidize broadband, the group noted it is often used inefficiently so that gaps in broadband deployment are still not filled.

The task force also reported that there is still a high level of disparity in income levels between people who subscribe to broadband service and those who do not. Nearly 90 percent of families with incomes of $100,000 or more subscribe to broadband services, compared to 35 percent with incomes of $20,000 or less. Rural households are less likely to subscribe to broadband service than urban households. About 65 percent of white households subscribe to broadband, while only 40 percent of Hispanic households subscribe to broadband and 46 percent of African-American households have broadband.

Another issue that was brought up by the task force during the meeting is the fact that broadband service providers tend to favor higher-income regions in more populated areas over low-income areas.

The data suggests that many low-income people in these parts of the country are offered only one broadband service option. The data also suggests that these consumers who have only one option tend to pay higher prices for service.

What this means is that lower-income people, who have less disposable income, are often the ones forced to pay higher prices, while people who have more money pay lower prices for service.

Deployments in rural areas are often affected by the high cost of building infrastructure and providing service. The task force noted that "middle mile" costs are almost three times higher than general network operations costs. This high cost is often a serious barrier to rural broadband deployments, the group said.

Blair Levin, head of the task force developing a national broadband policy for the FCC.

This "middle mile" infrastructure consists of equipment and fiber that connects local cable head-ends or telephone company central offices with bigger points of presence that connect those networks to nationwide networks. The task force said there was a lack of efficient coordination when carriers or other utility providers dig trenches for fiber infrastructure. The group also noted that these deployment gaps don't only affect rural consumers, but many residential neighborhoods and small business marketplaces as well.

As the Internet and television markets converge, the task force also noted that a lack of innovation exists in the TV set-top box market. Specifically, the majority of consumers today use set-top boxes provided through their subscription TV providers. And only a very small number of devices are even available to purchase at retail. By comparison, there are hundreds of devices available in the mobile phone market. Due to a lack of competition, innovation has been stifled. And the task force recommends the FCC adopt policies to encourage a retail market for such devices.

That said, the FCC has tried to encourage the consumer electronics industry to develop set-top boxes that could be bought separately from cable services, but so far the efforts have largely failed.

More spectrum needed
On the wireless side, the key barrier is a lack of spectrum, the task force said. The problem is simple, as demand for mobile broadband increases, there is a need for more spectrum to support these services. Demand for these services comes from the rapidly growing market for smartphone wireless devices and Netbooks. By 2011, smartphone sales are expected to overtake standard mobile phones.

The task force said it is critical for the FCC to identify and reallocate available spectrum as soon as possible. The group said the nation could face a spectrum shortage as soon as 2013 or 2015, if nothing is done today.

The wireless trade group CTIA and the Consumer Electronics Association support this claim. And the groups sent a letter to FCC chairman Julius Genachowski on Tuesday urging him to investigate using broadcast TV spectrum for mobile Internet use.

The measure is opposed by the broadcast TV industry. But the FCC task force noted that as the need for wireless broadband spectrum increases, the need for broadcast TV spectrum is actually decreasing. Specifically, smartphone subscriptions have increased by 690 percent since 1998, while over-the-air TV viewership decreased by 56 percent. This proposal is already generating criticism from lawmakers supporting the TV broadcast industry.

Levin and his staff acknowledged there are many other barriers that exist in providing affordable broadband access to every person in the U.S. Levin said his staff is on track to meet its February deadline, but he said the process will remain open throughout the remaining 90 days that are left to incorporate new ideas. He also emphasized the fact that the ultimate success or failure of the national broadband plan will be in the hands of Congress and policy makers who must remain committed to implementing the plan.

"In my experience and seeing what has worked in other countries, you can plan all you want, but there really needs to be a long-term commitment for such plans to succeed," he said.

Also as part of the meeting, the five-member FCC unanimously voted to impose a "shot clock" for wireless tower applications to speed up the time it takes for wireless operators to deploy new cell phone networks.

Chairman Genachowski promised last month at the CTIA tradeshow in San Diego that the Commission would do what it could to speed up this process. And the Commission's vote solidified that promise.

"Tower siting is a vital piece of our industry," CTIA president and CEO Steve Largent said in a statement. "It enables mobile services, including voice and broadband, for consumers, public safety, and businesses. Both Congress and the Supreme Court recognized the importance of taking concrete steps to ensure that the zoning process does not become a barrier to the reasonable deployment of, and competition among, diverse wireless networks."

The European Commission on Monday formally dug in its heels over Oracle's planned acquisition of Sun Microsystems, but Oracle accused the regulatory body of "profound misunderstanding" in a rebuttal that declared its intention to fight the opinion.

The regulatory body issued a statement of objections about the merger, according to a Securities and Exchange Commission filing from Sun Microsystems. The open-source MySQL database software is the sole issue of concern in the matter, Sun said in the filing.

"The Statement of Objections sets out the Commission's preliminary assessment regarding, and is limited to, the combination of Sun's open source MySQL database product with Oracle's enterprise database products and its potential negative effects on competition in the market for database products," Sun said in the filing.

Oracle, though, fired back immediately, saying the objection "reveals a profound misunderstanding of both database competition and open-source dynamics." And indicating that other technologies are in limbo during the European deliberations, Oracle said, "Oracle's acquisition of Sun is essential for competition in the high-end server market, for revitalizing Sparc, and Solaris and for strengthening the Java development platform."

Meanwhile, the U.S. Justice Department reiterated its stance that the acquisition isn't anticompetitive. But given the gulf between Oracle and EC perspectives and Oracle's unwillingness to spin the MySQL software group off, it appears the matter won't be resolved soon.

MySQL is open-source software, meaning anyone may see, modify, and distribute the human-readable source code that underlies the software package computers actually run. Oracle's core database product is proprietary, meaning they don't grant those freedoms. MySQL is used widely at Facebook and Google among other companies, and competes to some extent with Oracle's existing products, arguably indirectly by expanding into newer markets to which Oracle's software isn't as well-suited.

Oracle castigated the commission in its statement:

It is well understood by those knowledgeable about open source software that because MySQL is open source, it cannot be controlled by anyone. That is the whole point of open source.

The database market is intensely competitive with at least eight strong players, including IBM, Microsoft, Sybase and three distinct open-source vendors. Oracle and MySQL are very different database products. There is no basis in European law for objecting to a merger of two among eight firms selling differentiated products. Mergers like this occur regularly and have not been prohibited by United States or European regulators in decades...

Sun's customers universally support this merger and do not benefit from the continued uncertainty and delay. Oracle plans to vigorously oppose the Commission's Statement of Objections as the evidence against the Commission's position is overwhelming. Given the lack of any credible theory or evidence of competitive harm, we are confident we will ultimately obtain unconditional clearance of the transaction.

The Justice Department, which is in Oracle's camp, detailed its reasoning in a statement from Deputy Assistant Attorney General Molly Boast of the Justice Department's Antitrust Division.

And though Boast pointed to the department's "strong and positive relationship on competition policy matters" with the EC, she also said, "At this point in its process, it appears that the EC holds a different view. We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the commission's jurisdiction."

The Justice Department reasoned that there are other database packages available and that open-source projects can be forked by those who disagree with corporate sponsors' handling of the software.

"Several factors led the (Justice Department's antitrust) division to conclude that the proposed transaction is unlikely to be anticompetitive. There are many open-source and proprietary database competitors. The division concluded, based on the specific facts at issue in the transaction, that consumer harm is unlikely because customers would continue to have choices from a variety of well established and widely accepted database products," Boast said. "The department also concluded that there is a large community of developers and users of Sun's open source database with significant expertise in maintaining and improving the software, and who could support a derivative version of it."

Europe is set to get a major overhaul of its telecommunications regulation, after the European Parliament and Council of Telecoms Ministers reached a compromise on the rights of Internet users.

The Telecoms Reform Package is a raft of new laws that tackle issues ranging from data-breach notification to faster number porting. Following an agreement reached on Wednesday night, the package will now become part of national legislation in every EU country, with a deadline of May 2011.

A sticking point in the package's progress had been a provision regarding "three strikes" laws targeting Internet users suspected of unlawful file-sharing of copyrighted material. But negotiations led to an "Internet freedom provision," which states that any measures taken by member states to limit Internet access or use must "respect the fundamental rights and freedoms of natural persons, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and general principles of Community law."

Read more of "European 'internet freedom' law agreed at ZDNet UK.

For the last decade or so, Internet service providers have been dealing with requests to block access to pornographic or copyright-infringing Web sites, or in China, ones that dare to criticize the government.

Now a U.S. House of Representatives bill is taking the unusual step of requiring Internet providers to block access to online financial scams that fraudulently invoke the Securities Investor Protection Corporation--or face fines and federal court injunctions.

The House Financial Services Committee approved the legislation on Wednesday by a 41 to 28 vote.

If you've never heard of the SIPC, you're not alone. It's a government-linked entity that aids investors when funds are missing from their accounts, up to a limit of $500,000 for stocks, bonds, and mutual funds. Only investor accounts that investors have opened with members of the SIPC--here's a list--qualify for its protection.

It turns out that occasionally, Internet fraudsters, scamsters, and other assorted malcontents have posed as legitimate brokerage firms that are SIPC members, often with a similar name or domain name. The scam may be a too-good-to-be-true offer to buy securities that asks the unwitting customer to pay fees in advance, or schemes involving fraudulent checks that eventually bounce.

That seems to be in part what prompted Rep. Paul Kanjorski, a Pennsylvania Democrat and chairman of a key subcommittee, to introduce the Investor Protection Act a few weeks ago. Section 508 of that bill says:

Any Internet service provider that, on or through a system or network controlled or operated by the Internet service provider, transmits, routes, provides connections for, or stores any material containing any misrepresentation (of the SIPC) shall be liable for any damages caused thereby, including damages suffered by the SIPC, if the Internet service provider...is aware of facts or circumstances from which it is apparent that the material contains a misrepresentation.

That section isn't mentioned in Kanjorski's press release dated October 1, which is why Internet providers were a bit taken aback when they found out about it a few days ago. The Internet Commerce Coalition sent a letter to Kanjorski before Wednesday's vote raising concerns with the bill, but the industry isn't terribly optimistic.

One potential problem with Kanjorski's bill is that most Internet providers simply don't have a good way to block access to any electronic "material" containing fake SIPC data. That wording is broader than just Web pages: it includes blocking certain e-mail, IM conversations, VoIP chats, and so on. And even the more straightforward task of blocking Web sites can be overly broad and problematic, which is why a federal judge in Pennsylvania declared a child porn filtering law to be unconstitutional in a landmark 2004 ruling.

Internet providers are also worried that Kanjorski's requirement--and the accompanying civil penalties and injunctions--would apply even if the blocking is not technically feasible. Or if it's impossible. (Other questions: Would this blocking requirement apply to private-sector employers? Schools and universities? Locally owned coffee shops that provide Internet service through Wi-Fi?)

Fraudulent Web sites have bedeviled the SIPC, off and on, for at least six years. In 2003, the group distributed a public warning against "brokerage identity theft" and followed up by asking the FBI to investigate a fake site that resembled the SIPC's own.

The SIPC does have a searchable database of its members, listing street addresses, but it doesn't take the obvious step of listing members' official Web sites, which other certification programs like Truste do.

Searching on San Francisco shows, for instance, that SIPC-listed Whitehall-Parker Securities has an address on Pacific Avenue. But an investor can't easily tell whether whitehall-parker.com is the actual site; a scammer could easily set up a fake site at whitehallparker.com (which, as of this writing, is available to be registered).

The Treasury Department's version of the Investor Protection Act of 2009 released in July doesn't seem to include the Internet-filtering section, meaning that the Obama administration concluded that it was unnecessary. So what prompted Kanjorski to insert it?

Addendum at 11:30 a.m. PT: Abigail McDonough, Kanjorski's spokeswoman, told me that her boss is open to modifying the language of the bill to reflect industry concerns. It also turns out that the language from the Investor Protection Act was borrowed from H.R. 2798, which was introduced in June by Rep. Michael Arcuri, D-N.Y., as part of a post-Bernie Madoff scandal effort to increase the level of SIPC guarantees for investors.

One Capitol Hill source says the SIPC asked for that language to be included in the Investor Protection Act. And a representative of SIPC says the organization may not have a response until Thursday because its president, Stephen Harbeck, is traveling from China.

The organization responsible for managing the assignment of domain names and IP addresses has approved a new plan to allow non-Latin characters in Web extensions.

Known as Internationalized Domain Names (IDNs), the system is designed to globalize the Net so regions around the world can use their own local alphabet characters to surf in cyberspace, the Internet Corporation for Assigned Names and Numbers, or ICANN, said Friday.

Calling IDNs the "biggest technical change" to the Internet since its birth 40 years ago, ICANN unanimously approved the plan on the final day of its six-day conference in Seoul.

IDNs will allow domain names to be to be written in native character sets, such as Chinese, Arabic, and Greek. In charge of managing domain names, ICANN has argued that IDNs are necessary to expand use of the Web in regions where people don't understand English. Since its inception, the Internet has been limited to the Latin character set used by the U.S. and many other nations.

"The coming introduction of non-Latin characters represents the biggest technical change to the Internet since it was created four decades ago," said ICANN chairman Peter Dengate Thrush in a statement. "Right now Internet address endings are limited to Latin characters--A to Z. But the Fast Track Process is the first step in bringing the 100,000 characters of the languages of the world online for domain names."

To expedite the new plan, ICANN will launch a Fast Track process on November 16. At that time, the organization will begin accepting applications from countries for new top level domains, or Internet extensions, based on each nation's character set.

Initially, the change will apply only to local country codes, such as .kr for Korea and .ru for Russia. Major top level domains (TLDs) such as .com, .net., and .org won't see non-Latin editions just yet. But ICANN is pushing to make progress on these major TLDs and hopes to include them in the IDN system before long.

ICANN had discussed and debated IDNs for years, during which time much testing, development, and global cooperation were needed to jump start the new system.

"This is a culmination of years of work, tests, study and discussion by the ICANN community," said Thrush. "To see this finally start to unfold is to see the beginning of an historic change in the Internet and who uses it."

The Internet may be getting friendlier for a significant chunk of the world. A proposal is up for a vote to let Web addresses use non-English characters.

The proposed change (PDF), known as Internationalized Domain Names (IDNs), will allow the use of non-Latin characters in the entire address. Currently, such characters are allowed only in part of the address. IDNs will let people who write in Chinese, Korean, or Arabic use their own languages to surf the Web, and is expected to jump-start Internet use in many regions across the globe.

ICANN, the Internet Corporation for Assigned Names and Numbers, which is responsible for managing domain names on the Net, will review the historic, hot-button proposal on Friday at its six-day 36th International Public Meeting in Seoul. If approved, IDNs could kick in as early as mid-2010.

"This is an extremely important meeting for ICANN, since the IDN program is moving one step closer to reshaping the global Internet landscape," ICANN CEO Rod Beckstrom said in a statement. "In Seoul, we plan to move forward to the next step in the internationalization of the Internet, which means that eventually people from every corner of the globe will be able to navigate much of the online world using their native language scripts."

IDNs are not a new concept. They've been debated for at least a decade. Some doubted whether such a system could work. But countries like China have taken the lead in pushing for this change.

Of the 1.6 billion Internet users worldwide, more than half use languages with character sets other than Latin. Beckstrom sees the change as necessary, not just now, but for the future as Internet use continues to grow.

One of the challenges behind IDNs has been the use of translation technology to convert one character set to another to deliver the right address. But ICANN seems to have covered that base.

"We're confident that it works because we've been testing it now for a couple of years," Peter Dengate Thrush, chairman of ICANN's board, said in a statement. "And so we're really ready to start rolling it out."

CAMBRIDGE, Mass.--President Barack Obama on Friday called on the U.S. Congress to pass energy-and-climate legislation, a move he said would stimulate technology innovation and improve the economic competitiveness of the United States.

Obama delivered a speech at the Massachusetts Institute of Technology here after touring student laboratories and before attending a fund-raiser for Massachusetts Gov. Deval Patrick.

President Obama speaking on clean energy at MIT on Friday.

(Credit: Martin LaMonica/CNET)

A "comprehensive" energy-and-climate bill will address both environmental and economic problems, Obama said. Countries around the world recognize that energy supplies are limited while demand is rising. That situation is giving rise to a "peaceful competition" among countries to develop clean-energy technologies that "will propel the 21st century."

"There are going to be all sorts of debate both in (the) laboratory and on Capital Hill, but there is no question that we have to do these things," he said. "The nation that wins that competition will be the nation to lead the global economy. I'm convinced of that, and I want America to be that nation."

Obama urged Congress to pass an energy-and-climate bill the Senate is now considering, the Clean Energy Jobs and American Power Act. He specifically praised the bill co-sponsor Democratic Massachusetts Sen. John Kerry, who was present at the talk, and Republican South Carolina Sen. Lindsay Graham. The senators co-wrote an editorial in the New York Times earlier this month outlining the main components of a desired bill, which was seen as a key step toward passage.

The House bill, which narrowly passed in May, includes a national mandate for utilities to use renewable energy and a cap-and-trade system in which large polluters can buy and sell permits for carbon dioxide emissions.

The president did not weigh into the details of the existing bills, but he did outline the contours of an energy policy that reduces the country's reliance on fossil fuels while making better use of natural resources.

The ingredients of energy policy should include clean use of coal, oil, and natural gas; "safe nuclear power;" sustainably grown biofuels; and energy from wind, solar, and wave power, Obama said.

"It is a transformation that will be made as swiftly and carefully as possible, to ensure we are doing everything we can to grow this economy in the short, medium, and long term. And I do believe that a consensus is growing to achieve exactly that," he said.

Obama said the Pentagon and energy security hawks are stepping up efforts to reduce oil imports while businesses and environmentalists are working together. Young people, too, view energy-and-climate as the challenge of their generation, he added.

"We are seeing a convergence. The naysayers, the folks (who) would pretend this is not an issue--they are being marginalized," Obama said.

He said key pieces of the Senate bill have been approved in various committees but he warned that opposition to passing an energy-and-climate bill will increase as passage gets closer.

There were about 700 people at the MIT talk, including a number of local green-technology entrepreneurs, investors, and students at the university, which has become a hotbed for energy science and technology research.