Wireless

Safe and insecure

I opened up my wireless home network to the world, and I've never felt more comfortable.

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Safe and insecure

Last week, I turned off all the security features of my wireless router. I removed WEP encryption, disabled MAC address filtering and made sure the SSID was being broadcast loud and clear. Now, anyone with a wireless card and a sniffer who happens by can use my connection to access the Internet. And with DHCP logging turned off, there’s really no way to know who’s using it.

What’s wrong with me? Haven’t I heard about how malicious wardrivers can use my connection from across the street to stage their hacking operations? How my neighbors can steal my bandwidth so they don’t have to pay for their own? How I’m exposing my home network to attacks from the inside? Yup.

So why am I doing this? In a word, privacy. By making my Internet connection available to any and all who happen upon it, I have no way to be certain what kinds of songs, movies and pictures will be downloaded by other people using my IP address. And more important, my ISP has no way to be certain if it’s me.

In mid-April, Comcast sent letters to some of its subscribers claiming that their IP addresses had been used to download copyrighted movies. Since Comcast is not likely to improve customer satisfaction and retention with this strategy, it’s probable the letter was a result of pressure from the Motion Picture Association of America or one of its members. And to Comcast’s credit, it stopped short of direct accusation; instead it gives users an out. Says the letter, “If you believe in good faith that the allegedly infringing works have been removed or blocked by mistake or misidentification, then you may send a counter notification to Comcast.”

That’s good enough for me. I’ve already composed my reply in case I receive one of these letters someday. “Dear Comcast, I am so sorry. I had no idea that copyrighted works were being downloaded via my IP address; I have a wireless router at home and it’s possible that someone may have been using my connection at the time. I will do my best to secure this notoriously vulnerable technology, but I can make no guarantee that hackers will not exploit my network in the future.”

If it ever comes down to a lawsuit, who can be certain that I was the offender? And can the victim of hacking be held responsible for the hacker’s crimes? If that were the case, we’d all be liable for the Blaster worm’s denial of service attacks against Microsoft last year.

Don’t get me wrong. I’m not deliberately opening my network to hackers and miscreants bent on downloading copyrighted material. I’m simply choosing not to secure it. That’s no different from the millions of people who haven’t installed anti-virus software and the millions more who don’t keep theirs up to date. Yes, their vulnerabilities allow viruses to spread more quickly, but that’s their choice, right?

What about the security of my home network? A determined hacker may be able to crack my passwords or exploit weaknesses in the operating system that I never even thought of, but how is that different from before? There’s no system that’s completely secure, so whether hackers are inside or outside my firewall will make little difference. I’m willing to trade a little security for privacy.

It feels strange to be opening up my network after years of vigorously protecting it, and it’s not without a tinge of anxiety that I do so. But there’s also a sense of liberation, of sticking it to the Man, that’s undeniable, as well as an odd sense of community. It seems there’s safety in numbers after all, even among strangers.

What AT&T’s T-Mobile buy could mean for customers

The $39 billion deal could take a year to close, but the implications are already coming to light

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What AT&T's T-Mobile buy could mean for customersThis photo combination shows logos for AT&T, left, and Deutsche Telekom AG. AT&T Inc. on Sunday, March 20, 2011 said it will buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion, becoming the largest cellphone company in the U.S. (AP Photo)(Credit: AP)

AT&T Inc. has agreed to buy T-Mobile USA for $39 billion, but the deal isn’t set to close until a year from now, and it will likely face tough regulatory scrutiny. Here’s what a completed deal could mean for customers:

– Bigger choice of phones for T-Mobile subscribers. T-Mobile, as a much smaller carrier than AT&T, doesn’t get as many exclusives on top-line phones, and it doesn’t have the iPhone. This won’t be a big benefit to T-Mobile subscribers who don’t have contracts — if they want the iPhone today, they can sign up with AT&T or Verizon Wireless. But subscribers under contract would find it easier to upgrade to an iPhone.

– Fewer pricing plans to choose from. T-Mobile and AT&T have different offerings, some of which might disappear from the market.

– No more unlimited data plans. AT&T has stopped offering unlimited data plans in favor of plans with monthly data usage caps and overage fees. T-Mobile USA still offers “unlimited” data for smartphones for $30 per month, but slows down downloads after 5 gigabytes of traffic in a month. If the deal closes, current “unlimited” subscribers would likely be grandfathered in, but AT&T would probably stop offering the plan to new subscribers.

– Better network coverage. Combining the two networks will improve performance is some areas, because there will be more towers available. However, today’s AT&T phones can’t use T-Mobile’s 3G wireless data network, and vice versa, because they run on different frequencies.

– Wider rural broadband coverage. AT&T is pledging to increase spending on the construction of a new ultrafast broadband network by $8 billion, to cover rural areas.

– The big question is whether the combination would let AT&T, Verizon and Sprint raise prices on wireless service once competition from T-Mobile disappears. AT&T points out that prices have fallen through a decade of mergers in the industry, but public-interest groups are raising concerns.

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FCC fines Verizon Wireless $25M for spurious fees

Provider's inadvertent data charges lead to the largest fine in the commission's history

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Federal regulators say Verizon Wireless has agreed to pay a fine of $25 million and at least $52.8 million in refunds to customers who inadvertently racked up data charges on their phones over the last three years.

The Federal Communications Commission says the fine is the largest in its history.

To forestall action by the FCC, Verizon Wireless said earlier this month that it would issue refunds, mostly of $2 to $6, to about 15 million subscribers.

The FCC started asking Verizon Wireless last year about $1.99-a-megabyte data access fees that appeared on the bills of customers who didn’t have data plans but who accidentally initiated data or Web access by pressing a button on their phones.

Congress moves to crack down on prison cellphones

The devices can be used to direct criminal activity inside and outside jail walls

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The House has passed a bill that bans inmates from using or possessing cellphones in federal prisons.

A similar bill already has passed the Senate.

Congress is trying to crack down on the smuggling of cellphones into federal prisons, where they can be used to direct criminal activities both inside and outside prison walls.

The bill approved by the House on Tuesday night would classify cellphones as contraband material. Currently, the devices are not specifically defined as contraband, and inmates and guards caught smuggling them into prisons are rarely punished. One report says inmates pay up to $1,000 for a cellphone. It cites a case where a correctional officer made $150,000 by smuggling phones to inmates.

 

Wireless broadband network set to launch next year

LightSquared will be third company with 4G and should cover 92 percent of the population by 2015

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U.S. consumers and businesses may get more options in wireless service starting next year, with the launch of a new wireless broadband network that aims to provide competition to the incumbent phone companies.

Private-equity firm Harbinger Capital Partners on Tuesday revealed details of the launch of its wireless network, LightSquared, which should cover 92 percent of the population by 2015.

But there are financial and regulatory hurdles to overcome. And in another wrinkle, LightSquared won’t initially be offering conventional cell phone service, just data. It’s possible to send phone calls over data connections, but that technology is not fully mature or standardized.

Still, LightSquared represents a rare new entrant in the wireless market. Only two other companies, Verizon Wireless and AT&T Inc., have firm plans to build nationwide networks using the same, fourth-generation network technology that LightSquared will use. Sprint Nextel Corp., through its Clearwire Corp. subsidiary, is building a third one with a different 4G technology that’s likely to get less support from equipment makers.

Consumers won’t buy service directly from LightSquared. Instead, it will sell access wholesale to other companies that can resell it to consumers. LightSquared hopes to attract cable TV providers, phone companies that don’t have wireless networks of their own and retailers that want to provide wireless service under their own brand.

Dan Hays, who focuses on telecommunications with consulting firm PRTM, said LightSquared “could provide a renewed opportunity for retailers and major brands such as Wal-Mart, Best Buy, and Office Depot to enter the wireless market as service providers to consumers.”

LightSquared plans to start providing service in the second half of 2011 in Las Vegas, Phoenix, Denver and Baltimore.

LightSquared said Nokia Siemens Networks will build, maintain and operate the network under a $7 billion, eight-year contract. Nokia Siemens is a joint venture of Finland’s Nokia Corp. and Siemens AG of Germany.

The contract is an important step for Nokia Siemens, which hasn’t had much of a presence in the U.S. market for wireless equipment. On Monday, it announced a deal to buy Motorola Inc.’s networks business for $1.2 billion, with a view to increasing its foothold in the U.S.

One reason it’s rare for new national wireless carriers to spring up is that it’s difficult and expensive to procure the rights to airwaves across the nation. Verizon Wireless paid $9.4 billion for nationwide spectrum rights in a 2008 auction, for example.

LightSquared is in an unusual position in that it owns nationwide wireless spectrum once set aside for satellite phone use. Harbinger bought SkyTerra, a satellite company, earlier this year.

Placing calls over satellites is expensive and impractical compared with using cell towers, so the FCC allows spectrum holders to back up satellite coverage with towers. That gives LightSquared a “back door” to building out a conventional ground-based network of cell towers.

However, under current FCC rules, all devices that use LightSquared’s spectrum have to come with the ability to connect to a satellite besides conventional cell towers, according to satellite industry consultant Tim Farrar. That would add to the cost of devices and limit the selection.

LightSquared is banking on the FCC changing its rules to allow devices that only talk to towers. Regardless, it needs to launch a satellite later this year to satisfy the FCC’s condition that it be able to provide satellite connectivity.

The launch of the new network would fit into the FCC’s goals of creating more competition in the wireless market. FCC Chairman Julius Genachowski said Tuesday that he was pleased to learn of the creation of LightSquared.

Farrar said it’s also not clear if Harbinger will be able to raise the billions needed to build out the network, and other expenses.

“It’s going to be very interesting to see where this money comes from,” Farrar said.

Tom Surface, a spokesman for LightSquared, said the company “will evaluate our funding needs as we develop and grow our business.”

LightSquared’s CEO is Sanjiv Ahuja, who was CEO of French cell phone company Orange from 2004 through 2007. He then founded a company that started wireless service in Pakistan and Bangladesh.

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Nokia Siemens buys Motorola networks

The Finland-based company acquires majority of wireless operations for $1.2 billion

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Nokia Siemens Networks will acquire the majority of Motorola’s wireless operations for $1.2 billion in a major thrust to gain a stronger foothold worldwide, the company said Monday.

The Finland-based company said the deal is “expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.”

Nokia Siemens said it will “gain incumbent relationships with more than 50 operators,” including top American wireless carriers and cable companies, including Verizon Wireless and Sprint Nextel Corp. It will also improve its position with China Mobile, Clearwire, KDDI, Sprint and Vodafone.

Nokia Siemens Networks — a joint venture between Finland’s Nokia Corp. and Siemens AG of Germany — has seen dwindling profits in recent years, worsened by the global economic downturn.

The new contract, expected to be completed by year-end, would improve profitability and “have significant upside potential,” Nokia Siemens said.

The deal is a step in the process of breaking up Schaumburg, Ill.-based Motorola. The company has planned for years to spin off the cell phone division, but steep losses in the unit have forced it to postpone the move. It’s now scheduled for the first quarter of next year.

The handset division, to be called Motorola Mobility, will take with it the division that makes cable set-top boxes.

That will leave Motorola Solutions, the remainder, focused on government and corporate clients, with products like police radios and bar-code scanners. It’s also keeping one part of its wireless network portfolio: the division that makes iDEN equipment, used in the Nextel part of Sprint Nextel Corp.’s network. Motorola invented that technology and is the dominant supplier of equipment.

Its push-to-talk feature is appreciated by dispatchers and work crews, but has been overshadowed in the mainstream by other technologies that provide broadband data speeds.

Nokia Siemens CEO Rajeev Suri described the deal as an “exciting acquisition … with significant benefits for customers, employees and our shareholders.”

“Motorola’s current customers will continue to get world-class support for their installed base and a clear path for transitioning to next generation technologies while employees will join an industry leader with global scale and reach,” Suri said.

Parent company Nokia shares were trading up 1.4 percent at euro6.86 ($8.92) in afternoon trading in Helsinki.

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