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The United States on Friday criticized proposals to build a European communication network to avoid emails and other data passing through the United States, warning that such rules could breach international trade laws. In its annual review of telecommunications trade barriers, the office of the U.S. Trade Representative said impediments to cross-border data flows were a serious and growing concern.It was closely watching new laws in Turkey that led to the blocking of websites and restrictions on personal data, as well as calls in Europe for a local communications network following revelations last year about U.S. digital eavesdropping and surveillance."Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in the report.

Germany and France have been discussing ways to build a European network to keep data secure after the U.S. spying scandal. Even German Chancellor Angela Merkel's cell phone was reportedly monitored by American spies.The USTR said proposals by Germany's state-backed Deutsche Telekom to bypass the United States were "draconian" and likely aimed at giving European companies an advantage over their U.S. counterparts.Deutsche Telekom has suggested laws to stop data traveling within continental Europe being routed via Asia or the United States and scrapping the Safe Harbor agreement that allows U.S. companies with European-level privacy standards access to European data. (www.telekom.com/dataprotection)"Any mandatory intra-EU routing may raise questions with respect to compliance with the EU's trade obligations with respect to Internet-enabled services," the USTR said. "Accordingly, USTR will be carefully monitoring the development of any such proposals."

U.S. tech companies, the leaders in an e-commerce marketplace estimated to be worth up to $8 trillion a year, have urged the White House to undertake reforms to calm privacy concerns and fend off digital protectionism.

AMERICAN AND BRITISH spies hacked into the internal computer network of the largest manufacturer of SIM cards in the world, stealing encryption keys used to protect the privacy of cellphone communications across the globe, according to top-secret documents provided to The Intercept by National Security Agency whistleblower Edward Snowden. The hack was perpetrated by a joint unit consisting of operatives from the NSA and its British counterpart Government Communications Headquarters, or GCHQ. The breach, detailed in a secret 2010 GCHQ document, gave the surveillance agencies the potential to secretly monitor a large portion of the world’s cellular communications, including both voice and data. The company targeted by the intelligence agencies, Gemalto, is a multinational firm incorporated in the Netherlands that makes the chips used in mobile phones and next-generation credit cards. Among its clients are AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers around the world. The company operates in 85 countries and has more than 40 manufacturing facilities. One of its three global headquarters is in Austin, Texas and it has a large factory in Pennsylvania. In all, Gemalto produces some 2 billion SIM cards a year. Its motto is “Security to be Free.”

With these stolen encryption keys, intelligence agencies can monitor mobile communications without seeking or receiving approval from telecom companies and foreign governments. Possessing the keys also sidesteps the need to get a warrant or a wiretap, while leaving no trace on the wireless provider’s network that the communications were intercepted. Bulk key theft additionally enables the intelligence agencies to unlock any previously encrypted communications they had already intercepted, but did not yet have the ability to decrypt.

Leading privacy advocates and security experts say that the theft of encryption keys from major wireless network providers is tantamount to a thief obtaining the master ring of a building superintendent who holds the keys to every apartment. “Once you have the keys, decrypting traffic is trivial,” says Christopher Soghoian, the principal technologist for the American Civil Liberties Union. “The news of this key theft will send a shock wave through the security community.”

We’ve often heard security folks explain their belief that one of the best ways to protect Web privacy and security on one's home turf is to lock down one's private Wi-Fi network with a strong password. But a coalition of advocacy organizations is calling such conventional wisdom into question. Members of the “Open Wireless Movement,” including the Electronic Frontier Foundation (EFF), Free Press, Mozilla, and Fight for the Future are advocating that we open up our Wi-Fi private networks (or at least a small slice of our available bandwidth) to strangers. They claim that such a random act of kindness can actually make us safer online while simultaneously facilitating a better allocation of finite broadband resources. The OpenWireless.org website explains the group’s initiative. “We are aiming to build technologies that would make it easy for Internet subscribers to portion off their wireless networks for guests and the public while maintaining security, protecting privacy, and preserving quality of access," its mission statement reads. "And we are working to debunk myths (and confront truths) about open wireless while creating technologies and legal precedent to ensure it is safe, private, and legal to open your network.”

One such technology, which EFF plans to unveil at the Hackers on Planet Earth (HOPE X) conference next month, is open-sourced router firmware called Open Wireless Router. This firmware would enable individuals to share a portion of their Wi-Fi networks with anyone nearby, password-free, as Adi Kamdar, an EFF activist, told Ars on Friday. Home network sharing tools are not new, and the EFF has been touting the benefits of open-sourcing Web connections for years, but Kamdar believes this new tool marks the second phase in the open wireless initiative. Unlike previous tools, he claims, EFF’s software will be free for all, will not require any sort of registration, and will actually make surfing the Web safer and more efficient.

Kamdar said that the new firmware utilizes smart technologies that prioritize the network owner's traffic over others', so good samaritans won't have to wait for Netflix to load because of strangers using their home networks. What's more, he said, "every connection is walled off from all other connections," so as to decrease the risk of unwanted snooping. Additionally, EFF hopes that opening one’s Wi-Fi network will, in the long run, make it more difficult to tie an IP address to an individual. “From a legal perspective, we have been trying to tackle this idea that law enforcement and certain bad plaintiffs have been pushing, that your IP address is tied to your identity. Your identity is not your IP address. You shouldn't be targeted by a copyright troll just because they know your IP address," said Kamdar.

When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”

The full story about GCHQ’s infiltration of Belgacom, however, has never been told. Key details about the attack have remained shrouded in mystery—and the scope of the attack unclear. Now, in partnership with Dutch and Belgian newspapers NRC Handelsblad and De Standaard, The Intercept has pieced together the first full reconstruction of events that took place before, during, and after the secret GCHQ hacking operation. Based on new documents from the Snowden archive and interviews with sources familiar with the malware investigation at Belgacom, The Intercept and its partners have established that the attack on Belgacom was more aggressive and far-reaching than previously thought. It occurred in stages between 2010 and 2011, each time penetrating deeper into Belgacom’s systems, eventually compromising the very core of the company’s networks.

Snowden told The Intercept that the latest revelations amounted to unprecedented “smoking-gun attribution for a governmental cyber attack against critical infrastructure.” The Belgacom hack, he said, is the “first documented example to show one EU member state mounting a cyber attack on another…a breathtaking example of the scale of the state-sponsored hacking problem.”

Now, as the Internet revolution unfolds, we are seeing not merely an extension of mind but a unity of mind and machine, two networks coming together as one. Our smaller brains are in a quest to bypass nature's intent and grow larger by proxy. It is not a stretch of the imagination to believe we will one day have all of the world's information embedded in our minds via the Internet.

BCI stands for brain-computer interface, and Jan is one of only a few people on earth using this technology, through two implanted chips attached directly to the neurons in her brain. The first human brain implant was conceived of by John Donoghue, a neuroscientist at Brown University, and implanted in a paralyzed man in 2004. These dime-sized computer chips use a technology called BrainGate that directly connects the mind to computers and the Internet. Having served as chairman of the BrainGate company, I have personally witnessed just how profound this innovation is. BrainGate is an invention that allows people to control electrical devices with nothing but their thoughts. The BrainGate chip is implanted in the brain and attached to connectors outside of the skull, which are hooked up to computers that, in Jan Scheuermann's case, are linked to a robotic arm. As a result, Scheuermann can feed herself chocolate by controlling the robotic arm with nothing but her thoughts.

Mind meld But imagine the ways in which the world will change when any of us, disabled or not, can connect our minds to computers.

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.

SOPA, ACTA, the criminalization of sharing, and a myriad of other measures taken to perpetuate antiquated business models propping up enduring monopolies - all have become increasingly taxing on the tech community and informed citizens alike. When the storm clouds gather and torrential rain begins to fall, the people have managed to stave off the flood waters through collective effort and well organized activism - stopping, or at least delaying SOPA and ACTA. However, is it really sustainable to mobilize each and every time multi-billion dollar corporations combine their resources and attempt to pass another series of draconian rules and regulations? Instead of manning the sandbags during each storm, wouldn't it suit us all better to transform the surrounding landscape in such a way as to harmlessly divert the floods, or better yet, harness them to our advantage? In many ways the transformation has already begun.

While open source software and hardware, as well as innovative business models built around collaboration and crowd-sourcing have done much to build a paradigm independent of current centralized proprietary business models, large centralized corporations and the governments that do their bidding, still guard all the doors and carry all the keys. The Internet, the phone networks, radio waves, and satellite systems still remain firmly in the hands of big business. As long as they do, they retain the ability to not only reassert themselves in areas where gains have been made, but can impose preemptive measures to prevent any future progress. With the advent of hackerspaces, increasingly we see projects that hold the potential of replacing, at least on a local level, much of the centralized infrastructure we take for granted until disasters or greed-driven rules and regulations upset the balance. It is with the further developing of our local infrastructure that we can leave behind the sandbags of perpetual activism and enjoy a permanently altered landscape that favors our peace and prosperity. Decentralizing Telecom

As impressive as a hydroelectric dam may be and as overwhelming as it may seem as a project to undertake, it will always start with but a single shovelful of dirt. The work required becomes in its own way part of the payoff - with experienced gained and with a magnificent accomplishment to aspire toward. In the same way, a communication network that runs parallel to existing networks, with global coverage, but locally controlled, may seem an impossible, overwhelming objective - and for one individual, or even a small group of individuals, it is. However, the paradigm has shifted. In the age of digital collaboration made possible by existing networks, the building of such a network can be done in parallel. In an act of digital-judo, we can use the system's infrastructure as a means of supplanting and replacing it with something superior in both function and in form. 

What they are doing could be seen as the online world’s equivalent of punk rock: a scattered revolt against an industry that many now think has grown greedy, intrusive and arrogant – as well as governments whose surveillance programmes have fuelled the same anxieties. As concerns grow about an online realm dominated by a few huge corporations, everyone involved shares one common goal: a comprehensively decentralised internet.

In the last few months, they have started working with people in the Belgian city of Ghent – or, in Flemish, Gent – where the authorities own their own internet domain, complete with .gent web addresses. Using the blueprint of Heartbeat, they want to create a new kind of internet they call the indienet – in which people control their data, are not tracked and each own an equal space online. This would be a radical alternative to what we have now: giant “supernodes” that have made a few men in northern California unimaginable amounts of money thanks to the ocean of lucrative personal information billions of people hand over in exchange for their services.

His alternative is what he calls the Safe network: the acronym stands for “Safe Access for Everyone”. In this model, rather than being stored on distant servers, people’s data – files, documents, social-media interactions – will be broken into fragments, encrypted and scattered around other people’s computers and smartphones, meaning that hacking and data theft will become impossible. Thanks to a system of self-authentication in which a Safe user’s encrypted information would only be put back together and unlocked on their own devices, there will be no centrally held passwords. No one will leave data trails, so there will be nothing for big online companies to harvest. The financial lubricant, Irvine says, will be a cryptocurrency called Safecoin: users will pay to store data on the network, and also be rewarded for storing other people’s (encrypted) information on their devices. Software developers, meanwhile, will be rewarded with Safecoin according to the popularity of their apps. There is a community of around 7,000 interested people already working on services that will work on the Safe network, including alternatives to platforms such as Facebook and YouTube.

On a mysterious farm just above the Pacific Ocean, the group who built the internet is inviting a small number of friends to a semi-secret gathering. They describe it as a camp "where diverse people can freely exchange ideas about the technologies, laws, markets, and agreements we need to move forward.” Forward indeed.It wasn’t that long ago that the internet was an open network of computers, blogs, sites, and posts.But then something happened -- and the open web was taken over by private, for-profit, closed networks. Facebook isn’t the web. YouTube isn’t the web. Google isn’t the web. They’re for-profit businesses that are looking to sell audiences to advertisers.Brewster Kahle is one of the early web innovators who built the Internet Archive as a public storehouse to protect the web’s history. Along with web luminaries such as Sir Tim Berners-Lee and Vint Cerf, he is working to protect and rebuild the open nature of the web.advertisementadvertisement“We demonstrated that the web had failed instead of served humanity, as it was supposed to have done,” Berners-Lee told Vanity Fair. The web has “ended up producing -- [through] no deliberate action of the people who designed the platform -- a large-scale emergent phenomenon which is anti-human.”

o, they’re out to fix it, working on what they call the Dweb. The “d” in Dweb stands for distributed. In distributed systems, no one entity has control over the participation of any other entity.Berners-Lee is building a platform called Solid, designed to give people control over their own data. Other global projects also have the goal of taking take back the public web. Mastodon is decentralized Twitter. Peertube is a decentralized alternative to YouTube.This July 18 - 21, web activists plan to convene at the Decentralized Web Summit in San Francisco. Back in 2016, Kahle convened an early group of builders, archivists, policymaker, and journalists. He issued a challenge to  use decentralized technologies to “Lock the Web Open.” It’s hard to imagine he knew then how quickly the web would become a closed network.Last year's Dweb gathering convened more than 900 developers, activists, artists, researchers, lawyers, and students. Kahle opened the gathering by reminding attendees that the web used to be a place where everyone could play. "Today, I no longer feel like a player, I feel like I’m being played. Let’s build a decentralized web, let’s build a system we can depend on, a system that doesn’t feel creepy” he said, according to IEEE Spectrum.With the rising tide of concerns about how social networks have hacked our democracy, Kahle and his Dweb community will gather with increasing urgency around their mission.The internet began with an idealist mission to connect people and information for good. Today's web has yet to achieve that goal, but just maybe Dweb will build an internet more robust and open than the current infrastructure allows. That’s a mission worth fighting for.

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.

Hillary Clinton called for the U.S. to promote Internet freedoms earlier this week and introduced a $25 million fund for technology companies that might help with the task. The New America Foundation has already applied for a grant under the program, which includes a $3.5 million proposal, of which $500,000 will be funded by the New America Foundation itself. The mission? To build the technology stack for a distributed, open-source telecommunications system. The project would combine well-known projects — such as the open source voice projects Asterisk and OpenBTS – with new projects for mesh networking known as The Serval Project — which Kevin covered earlier this month — and Commotion, open-source firmware to enable routers to create an open mesh network. Dan Meredith, a technologist at New America, broke it down for me, and said the hope is to deliver communications in areas where Internet access is scarce, but also among populations unable to use communications because of government interference.