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Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.

Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.

On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.

The head of the Federal Communications Commission was quick to reassure lawmakers on Wednesday that his agency is seriously considering using the authority it has to regulate phone lines on Internet service providers.“Title II is very much on the table,” Chairman Tom Wheeler said during a House Small Business Committee hearing on Wednesday, referring to the section of the Communications Act that some have urged the agency to turn to for stronger rules.“I will assure you that Title II is very much a topic of conversation and on the table and something that’s we’ve specially asked for comment on,” he added.In its controversial proposal on net neutrality — the notion that Internet service companies like Comcast or Cox should be banned from slowing or block access to some websites — the agency specifically asked whether it should reclassify broadband Internet as a “telecommunications service” and open them up to Title II rules, instead of an “information service.”

The plan Wheeler proposed earlier this year would not rely on that authority, but would instead allow for companies to make “commercially reasonable” deals to speed up users’ service on a particular website. Critics have said that would lead to “fast lanes” on the Internet, with quicker speeds for wealthy companies and slower service everywhere else.Supporters of strong rules have told the FCC that the stronger legal backing is the best way to prevent companies from slowing users’ service or blocking their access to particular websites.Critics, however, have said that the rules were designed for telephone monopolies and would lead to utility-style regulation on the Internet. In their comments to the FCC, cable companies have said that reclassifying broadband service to use the tough rules would likely be a violation of the law, which could tie the new rules up in court for years to come.

Google said Thursday it will by default encrypt data warehoused in its Cloud Storage service. The server-side encryption is now active for all new data written to Cloud Storage, and older data will be encrypted in the coming months, wrote Dave Barth, a Google product manager, in a blog post.

The data and metadata around an object stored in Cloud Storage is encrypted with a unique key using 128-bit Advanced Encryption Standard algorithm, and the "per-object key itself is encrypted with a unique key associated with the object owner," Barth wrote. "These keys are additionally encrypted by one of a regularly rotated set of master keys," he wrote. "Of course, if you prefer to manage your own keys then you can still encrypt data yourself prior to writing it to Cloud Storage."

A Google spokeswoman said via email the company does not provide encryption keys to any government and provides user data only in accordance with the law.

One security start-up that had an encounter with the FBI was Wickr, a privacy-forward text messaging app for the iPhone with an Android version in private beta. Wickr's co-founder Nico Sell told CNET at Defcon, "Wickr has been approached by the FBI and asked for a backdoor. We said, 'No.'" The mistrust runs deep. "Even if [the NSA] stood up tomorrow and said that [they] have eliminated these programs," said Marlinspike, "How could we believe them? How can we believe that anything they say is true?" Where does security innovation go next? The immediate future of information security innovation most likely lies in software that provides an existing service but with heightened privacy protections, such as webmail that doesn't mine you for personal data.

Wickr's Sell thinks that her company has hit upon a privacy innovation that a few others are also doing, but many will soon follow: the company itself doesn't store user data. "[The FBI] would have to force us to build a new app. With the current app there's no way," she said, that they could incorporate backdoor access to Wickr users' texts or metadata. "Even if you trust the NSA 100 percent that they're going to use [your data] correctly," Sell said, "Do you trust that they're going to be able to keep it safe from hackers? What if somebody gets that database and posts it online?" To that end, she said, people will start seeing privacy innovation for services that don't currently provide it. Calling it "social networks 2.0," she said that social network competitors will arise that do a better job of protecting their customer's privacy and predicted that some that succeed will do so because of their emphasis on privacy. Abine's recent MaskMe browser add-on and mobile app for creating disposable e-mail addresses, phone numbers, and credit cards is another example of a service that doesn't have access to its own users' data.

Stamos predicted changes in services that companies with cloud storage offer, including offering customers the ability to store their data outside of the U.S. "If they want to stay competitive, they're going to have to," he said. But, he cautioned, "It's impossible to do a cloud-based ad supported service." Soghoian added, "The only way to keep a service running is to pay them money." This, he said, is going to give rise to a new wave of ad-free, privacy protective subscription services.

(AP) -- Federal regulators are urging consumers to go through their phone bills line by line after they accused T-Mobile US of wrongly charging customers for premium services, like horoscope texts and quirky ringtones, the customers never authorized. The Federal Trade Commission announced Tuesday that it is suing T-Mobile in a federal court in Seattle with the goal of making sure every unfairly charged customer sees a full refund. The lawsuit, the first of its kind against a mobile provider, is the result of months of stalled negotiations with T-Mobile, which says it is already offering refunds. "It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent," FTC Chair Edith Ramirez in a statement.

The practice is called "cramming": A third party stuffs a customer's bill with bogus charges such as $10-per-month horoscopes or updates on celebrity gossip. In this case, the FTC said, T-Mobile was working with third-party vendors being investigated by regulators and known to be the subject of numerous customer complaints. T-Mobile then made it difficult for customers to notice the added charge to their bill and pocketed up to 40 percent of the total, according to the FTC.

The FTC told reporters in a conference call Tuesday that it had been in negotiations with T-Mobile for months in an attempt to guarantee refunds would be provided to customers but that the two sides couldn't reach an agreement. T-Mobile appears to have been laying the groundwork to head off the federal complaint. Last November, the company announced that it would no longer allow premium text services because they were waning in popularity and not all vendors had acted responsibly. In June, it announced it would reach out to consumers to provide refunds. But the FTC says that in many cases, the refunds are only partial and T-Mobile often refers customer complaints to the third-party vendors.

Comcast is being forced to pay the largest fine the FCC has ever levied against a cable operator. Its offense: Charging customers for services and equipment they didn't ask for. The company agreed to pay a $2.3 million civil penalty and to submit to a "compliance plan," in which regulators will monitor Comcast for the next five years to ensure it cleans up its act.

The FCC said it received over 1,000 complaints from customers, who said Comcast charged them for premium channels, cable boxes, DVRs or other products that they never ordered. In many cases, the FCC said, customers expressly told Comcast that they didn't want the add-on options, but they were charged anyway. Complaints also describe how customers spent "significant time and energy to attempt to remove the unauthorized charges" and get refunds, the commission said. The complaints spurred the FCC to launch an investigation nearly two years ago. Today's settlement marks the conclusion of the probe. Under the five-year compliance plan, Comcast must begin sending customers special notifications every time a new charge or service is added to their bill. The company also has to add a way for customers to easily "block the addition of new services or equipment to their accounts," according to an FCC press release.

Comcast (CMCSA) will also be required to compensate or address complaints from customers who have disputed charges, and it will be barred from referring an account to collections or suspending an account that has a disputed charge. Comcast agreed to the fine without admitting any guilt.

ne new email service promising "end-to-end" encryption launched on Friday, and others are being developed while major services such as Google Gmail and Yahoo Mail have stepped up security measures.A major catalyst for email encryption were revelations about widespread online surveillance in documents leaked by Edward Snowden, the former National Security Agency contractor."A lot of people were upset with those revelations, and that coalesced into this effort," said Jason Stockman, a co-developer of ProtonMail, a new encrypted email service which launched Friday with collaboration of scientists from Harvard, the Massachusetts Institute of Technology and the European research lab CERN.Stockman said ProtonMail aims to be as user-friendly as the major commercial services, but with extra security, and with its servers located in Switzerland to make it more difficult for US law enforcement to access.

"Our vision is to make encryption and privacy mainstream by making it easy to use," Stockman told AFP. "There's no installation. Everything happens behind the scenes automatically."Even though email encryption using special codes or keys, a system known as PGP, has been around for two decades, "it was so complicated," and did not gain widespread adoption, Stockman said.After testing over the past few months, ProtonMail went public Friday using a "freemium" model a basic account will be free with some added features for a paid account.

As our users from China, Iran, Russia, and other countries around the world have shown us in the past months, ProtonMail is an important tool for freedom of speech and we are happy to finally be able to provide this to the whole world," the company said in a blog post.Google and Yahoo recently announced efforts to encrypt their email communications, but some specialists say the effort falls short."These big companies don't want to encrypt your stuff because they spy on you, too," said Bruce Schneier, a well-known cryptographer and author who is chief technology officer for CO3 Systems."Hopefully, the NSA debate is creating incentives for people to build more encryption."Stockman said that with services like Gmail, even if data is encrypted, "they have the key right next to it if you have the key and lock next to each other, so it's pretty much useless."

Box for Industries is comprised of three parts: A Box-tailored core service offering, a selection of partner apps, and the implementation services to combine the two of those into something that ideally can be used by any enterprise in any vertical. 

Following up on its announcement at The Cable Show last month, Cox Communications is now offering more detail on the company's pending rollout of gigabit broadband services throughout its territories. (See Cox Goes for a Gigabit .) Cox Communications Inc. is targeting Phoenix, Las Vegas, and Omaha as its first new gigabit markets and plans to begin deployments across its entire footprint by the end of 2016. In addition to residential home service, the company will offer gigabit connectivity to select condominiums and apartments and will expand WiFi service both in common areas of those multi-dwelling units (MDU) and in public locations across the Phoenix and Las Vegas metro areas. The announcement by Cox, the first major North American MSO to make a 1-Gig commitment throughout its footprint, follows a recent pattern of competitive announcements from broadband service providers. Typically, one operator introduces or says it will explore delivery of higher broadband speeds, and then other local providers rapidly follow suit. In February, for instance, Google Fiber Inc. said it would look at expanding fiber service to 34 new cities, including Phoenix, where it will compete against Cox for the first time. (See Google Fiber Shifts Into High Gear.)

At the same time, CenturyLink Inc. (NYSE: CTL) began offering gigabit service in Las Vegas last fall and in Omaha last May, putting Cox on the hot seat in those two markets as well. This isn't Cox's first venture into gigabit broadband service. In addition to providing gigabit connections to commercial customers, the operator started a fiber-to-the-home trial service in Orange County, Calif. last year. For the company's upcoming deployments, a spokesperson noted that Cox hasn't yet specified which technologies it will use, but said that it will rely on portions of Cox's existing network in addition to newer fiber infrastructure.

The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”

Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.

At decade's end, the trusty landline telephone could be nothing more than a memory. Telecom giants AT&T T +0.31% AT&T Inc. U.S.: NYSE $35.07 +0.11 +0.31% March 28, 2014 4:00 pm Volume (Delayed 15m) : 24.66M AFTER HOURS $35.03 -0.04 -0.11% March 28, 2014 7:31 pm Volume (Delayed 15m): 85,446 P/E Ratio 10.28 Market Cap $182.60 Billion Dividend Yield 5.25% Rev. per Employee $529,844 03/29/14 Prepare to Hang Up the Phone, ... 03/21/14 AT&T Criticizes Netflix's 'Arr... 03/21/14 Samsung's Galaxy S5 Smartphone... More quote details and news » T in Your Value Your Change Short position and Verizon Communications VZ -0.57% Verizon Communications Inc. U.S.: NYSE $47.42 -0.27 -0.57% March 28, 2014 4:01 pm Volume (Delayed 15m) : 24.13M AFTER HOURS $47.47 +0.05 +0.11% March 28, 2014 7:59 pm Volume (Delayed 15m): 1.57M

The two providers want to lay the crumbling POTS to rest and replace it with Internet Protocol-based systems that use the same wired and wireless broadband networks that bring Web access, cable programming and, yes, even your telephone service, into your homes. You may think you have a traditional landline because your home phone plugs into a jack, but if you have bundled your phone with Internet and cable services, you're making calls over an IP network, not twisted copper wires. California, Florida, Texas, Georgia, North Carolina, Wisconsin and Ohio are among states that agree telecom resources would be better redirected into modern telephone technologies and innovations, and will kill copper-based technologies in the next three years or so. Kentucky and Colorado are weighing similar laws, which force people to go wireless whether they want to or not. In Mantoloking, N.J., Verizon wants to replace the landline system, which Hurricane Sandy wiped out, with its wireless Voice Link. That would make it the first entire town to go landline-less, a move that isn't sitting well with all residents.

New Jersey's legislature, worried about losing data applications such as credit-card processing and alarm systems that wireless systems can't handle, wants a one-year moratorium to block that switch. It will vote on the measure this month. (Verizon tried a similar change in Fire Island, N.Y., when its copper lines were destroyed, but public opposition persuaded Verizon to install fiber-optic cable.) It's no surprise that landlines are unfashionable, considering many of us already have or are preparing to ditch them. More than 38% of adults and 45.5% of children live in households without a landline telephone, says the Centers for Disease Control and Prevention. That means two in every five U.S. homes, or 39%, are wireless, up from 26.6% three years ago. Moreover, a scant 8.5% of households relied only on a landline, while 2% were phoneless in 2013. Metropolitan residents have few worries about the end of landlines. High-speed wire and wireless services are abundant and work well, despite occasional dropped calls. Those living in rural areas, where cell towers are few and 4G capability limited, face different issues.

Vodafone, one of the world's largest mobile phone groups, has revealed the existence of secret wires that allow government agencies to listen to all conversations on its networks, saying they are widely used in some of the 29 countries in which it operates in Europe and beyond.The company has broken its silence on government surveillance in order to push back against the increasingly widespread use of phone and broadband networks to spy on citizens, and will publish its first Law Enforcement Disclosure Report on Friday. At 40,000 words, it is the most comprehensive survey yet of how governments monitor the conversations and whereabouts of their people.The company said wires had been connected directly to its network and those of other telecoms groups, allowing agencies to listen to or record live conversations and, in certain cases, track the whereabouts of a customer. Privacy campaigners said the revelations were a "nightmare scenario" that confirmed their worst fears on the extent of snooping.

Vodafone's group privacy officer, Stephen Deadman, said: "These pipes exist, the direct access model exists."We are making a call to end direct access as a means of government agencies obtaining people's communication data. Without an official warrant, there is no external visibility. If we receive a demand we can push back against the agency. The fact that a government has to issue a piece of paper is an important constraint on how powers are used."Vodafone is calling for all direct-access pipes to be disconnected, and for the laws that make them legal to be amended. It says governments should "discourage agencies and authorities from seeking direct access to an operator's communications infrastructure without a lawful mandate".

In America, Verizon and AT&T have published data, but only on their domestic operations. Deutsche Telekom in Germany and Telstra in Australia have also broken ground at home. Vodafone is the first to produce a global survey.