Traffic Management on Mobile Gets Regulated

Shortly before Canada Day the Canadian Radio-television Telecommunications Commission (CRTC) released their decision as to whether they were to modify the forbearance framework for mobile wireless data services. To date, the CRTC has used a light hand when it’s come to wireless data communications: they’ve generally left wireless providers alone so that the providers could expand their networks in the (supposedly) competitive wireless marketplace. As of decision 2010-445 the Commission’s power and duties are extended and the spectre of traffic management on mobile networks is re-raised.

In this post I’m going to spell out what the changes actually mean – what duties and responsibilities, in specific, the CRTC is responsible for – and what traffic management on mobile networks would entail. This will see me significantly reference portions of the Canadian Telecommunications Act; if you do work in telecommunications in Canada you’ll be familiar with a lot of what’s below (and might find my earlier post on deep packet inspection and mobile discrimination more interesting), but for the rest this will expose you to some of the actual text of the Act.

In amending the forbearance framework the CRTC is entering the regulatory domain on several topics pertaining to wireless data communications. Specifically, wireless providers are now subject to section 24 and subsections 27(2), 27(3), and 27(4) of the Act. Section 24 states that the “offering and provision of telecommunications service by a Canadian carrier are subject to any conditions imposed by the Commission or included in tariff approved by the Commission.” In effect, the CRTC can now intervene in the conditions of service that carriers make available to other carriers and the public. Under 27(2) carriers can no longer unjustly discriminate against or give unreasonable preference towards any person. This limitation includes the telecommunications carrier itself and thus means that neither fees nor management of the network can be excessively leveraged to the benefit of the carrier and detriment of other parties.

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On a Social Networking Bill of Rights

I attended this year’s Computers, Freedom, and Privacy conference and spent time in sessions on privacy in large data sets, deep packet inspection and network neutrality, the role of privacy in venture capital pitches, and what businesses are doing to secure privacy. In addition, a collection of us worked for some time to produce a rough draft of the Social Network Users’ Bill of Rights that was subsequently discussed and ratified by the conference participants. In this post, I want to speak to the motivations of the Bill of Rights, characteristics of social networking and Bill proper, a few hopeful outcomes resulting from the Bill’s instantiation and conclude by denoting a concerns around the Bill’s creation and consequent challenges for moving it forward.

First, let me speak to the motivation behind the Bill. Social networking environments are increasingly becoming the places where individuals store key information – contact information, photos, thoughts and reflections, video – and genuinely becoming integrated into the political. This integration was particularly poignantly demonstrated last year when the American State Department asked Twitter to delay upgrades that would disrupt service and stem the information flowing out of Iran following the illegitimate election of President Ahmadinejad. Social networks have already been tied into the economic and social landscapes in profound ways: we see infrastructure costs for maintaining core business functionality approaching zero and the labor that was historically required for initiating conversations and meetings, to say nothing of shared authorship, have been integrated into social networking platforms themselves. Social networking, under this rubric, extends beyond sites such as Facebook and MySpace, and encapsulate companies like Google and Yahoo!, WordPress, and Digg, and their associated product offerings. Social networking extends well beyond social media; we can turn to Mashable’s collection of twenty characteristics included in the term ‘social networking’ for guidance as to what the term captures:

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Packet Headers and Privacy

One of the largest network vendors in the world is planning to offer their ISP partners an opportunity to modify HTTP headers to get ISPs into the advertising racket. Juniper Networks, which sells routers to ISPs, is partnering with Feeva, an advertising solutions company, to modify data packets’ header information so that the packets will include geographic information. These modified packets will be transmitted to any and all websites that the customer visits, and will see individuals receive targeted advertisements according to their geographical location. Effectively, Juniper’s proposal may see ISPs leverage their existing customer service information to modify customers’ data traffic for the purposes of enhancing the geographic relevance of online advertising. This poses an extreme danger to citizens’ locational and communicative privacy.

Should ISPs adopt Juniper’s add-on, we will be witnessing yet another instance of repugnant ‘innovation’ that ISPs are regularly demonstrating in their efforts to enhance their revenue streams. We have already seen them forcibly redirect customers’ DNS requests to ad-laden pages, provide (ineffective) ‘anti-infringement’ software to shield citizens from threats posed by three-strikes laws, and alter the payload content of data packets for advertising. After touching the payload – and oftentimes being burned by regulators – it seems as though the header is the next point of the packet that is to be modified in the sole interest of the ISPs and to the detriment of customers’ privacy.

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Apple and Locational Data Sharing

Apple’s entrance into the mobile advertising marketplace was born with their announcement of iAd. Alongside iAd comes persistent locational surveillance of Apple’s customers for the advantage of advertisers and Apple. The company’s advertising platform is controversial because Apple gives it a privileged position in their operating system, iOS4, and because the platform can draw on an iPhone’s locational awareness (using the phone’s GPS functionality) to deliver up targeted ads.

In this post I’m going to first give a brief background on iAd and some of the broader issues surrounding Apple’s deployment of their advertising platform. From there, I want to recap what Steve Jobs stated in a recent interview at the All Things Digital 8 concerning how Apple approaches locational surveillance through their mobile devices and then launch into an analysis of Apple’s recently changed terms of service for iOS4 devices as it relates to collecting, sharing, and retaining records on an iPhone’s geographic location. I’ll finish by noting that Apple may have inadvertently gotten itself into serious trouble as a result of its heavy-handed control of the iAd environment combined with modifying the privacy-related elements of their terms of service: Apple seems to have awoken the German data protection authorities. Hopefully the Germans can bring some transparency to a company regularly cloaked in secrecy.

Apple launched the iAd beta earlier this year and integrates the advertising platform into their mobile environment such that ads are seen within applications, and clicking on ads avoids taking individuals out of the particular applications that the customers are using. iAds can access core iOS4 functionality, including locational information, and can be coded using HTML 5 to provide rich advertising experiences. iAd was only made possible following Apple’s January acquisition of Quattro, a mobile advertising agency. Quattro was purchased after Apple was previously foiled in acquiring AdMob by Google last year (with the FTC recently citing iAd as a contributing reason why the Google transaction was permitted to go through). Ostensibly, the rich advertising from iAds is intended to help developers produce cheap and free applications for Apple’s mobile devices while retaining a long-term, ad-based, revenue stream. Arguably, with Apple taking a 40% cut of all advertising revenue and limiting access to the largest rich-media mobile platform in the world, advertising makes sense for their own bottom line and its just nice that they can ‘help’ developers along the way… Continue reading

The Consumable Mobile Experience

We are rapidly shifting towards a ubiquitous networked world, one that promises to accelerate our access to information and each other, but this network requires a few key elements. Bandwidth must be plentiful, mobile devices that can engage with this world must be widely deployed, and some kind of normative-regulatory framework that encourages creation and consumption must be in place. As it stands, backhaul bandwidth is plentiful, though front-line cellular towers in American and (possibly) Canada are largely unable to accommodate the growing ubiquity of smart devices. In addition to this challenge, we operate in a world where the normative-regulatory framework for the mobile world is threatened by regulatory capture that encourages limited consumption that maximizes revenues while simultaneously discouraging rich, mobile, creative actions. Without a shift to fact-based policy decisions and pricing systems North America is threatened to become the new tech ghetto of the mobile world: rich in talent and ability to innovate, but poor in the actual infrastructure to locally enjoy those innovations.

At the Canadian Telecom Summit this year, mobile operators such as TELUS, Wind Mobile, and Rogers Communications were all quick to pounce on the problems facing AT&T in the US. AT&T regularly suffers voice and data outages for its highest-revenue customers: those who own and use smart phones that are built on the Android, WebOS (i.e. Palm Pre and Pixi), and iOS. Each of these Canadian mobile companies used AT&T’s weaknesses to hammer home that unlimited bandwidth cannot be offered along mobile networks, and suggested that AT&T’s shift from unlimited to limited data plans are indicative of the backhaul and/or spectrum problems caused by smart devices. While I do not want to entirely contest the claim that there are challenges managing exponential increases in mobile data growth, I do want to suggest that technical analysis rather than rhetorical ‘obviousness’ should be applied to understand the similarities and differences between Canadian telcos/cablecos and AT&T.

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Cisco Brings Targeted Ads Home

Linksys has adopted a horrible approach to further monetizing the digital ecosystem; some of their routers now hijack 404 pages to deliver advertising! This leads me to ask: when customers are sold automatic advertising + networking gear should they really be required to pay for the router? It seems like most users (i.e. those who won’t go any further than running the default system to set up their wireless networks) are going to be in a situation where they pay cash for a device AND subsequently have to put up with obnoxious advertisements.

While a freemium model for the sale of hardware (i.e. get the router for free + advertising, and evade advertising with either a one-off or monthly payment plan) is interesting, setting defaults so that people are both paying for a piece of hard and increasing third-parties’ revenue streams by being forced to view ads is just wrong.