FCC Scraps Net Neutrality Rules in US

There could soon be a major change in what Americans see on the internet after federal regulators voted Thursday to scrap traditional “net neutrality” rules. 

Thursday’s 3-2 vote by the Federal Communications Commission went along party lines, with Republican members voting to end the regulations and Democrats dissenting.

Individual states will also be barred from enacting their own rules governing the internet.

Net neutrality has been the norm since the internet was created more than 30 years ago. The FCC under former President Barack Obama formalized net neutrality rules in 2015.

The idea of net neutrality is for giant internet providers to treat all content equally. The Obama-era rules prevented them from giving preferential treatment to their own services and blocking and slowing down content from rivals.

Consumer groups and internet companies like net neutrality.

But FCC Chairman Ajit Pai, who was appointed by President Donald Trump, said the internet needs what he calls a “light touch” instead of what he believes is unnecessary government regulation.

WATCH: What is ‘net neutrality’?

“Prior to 2015, before these regulations were imposed, we had a free and open internet,” Pai told NBC ahead of the vote. “That is the future as well under a light touch, market-based approach. Consumers benefit, entrepreneurs benefit. Everybody in the internet economy is better off with a market-based approach.”

But Democratic FCC member Mignon Clyburn said the FCC was “handing the keys to the internet” to a “handful of multibillion-dollar corporations.”

British engineer Tim Berners-Lee, creator of the World Wide Web, said this week that getting rid of net neutrality rules meant internet service providers “will have the power to decide which websites you can access and at what speed each will load. In other words, they’ll be able to decide which companies succeed online, which voices are heard — and which are silenced.”

Officials in several states, including New York and Washington, said they would challenge the new rules in court.

Ken Bredemeier contributed to this report.

US Dismantles Internet Neutrality Regulation

The U.S. Federal Communications Commission (FCC) on Thursday dismantled two-year-old “net neutrality” rules that guaranteed equal access to the internet in favor of policies that will reduce regulation of major internet service providers and hand them sweeping powers to decide what web content consumers can access.

The FCC voted 3-2 to adopt a plan advanced by chairman Ajit Pai, appointed to his position by President Donald Trump, for a “light touch” on regulating major telecommunication companies and end what he says is the federal government’s “micromanaging” of the internet.

The meeting was briefly interrupted for security reasons before the vote took place.  A video feed of the meeting showed law enforcement officers enter the room with dogs.  No reason was immediately given for the disruption.

WATCH: What is ‘net neutrality’?

The controversial change unravels 2015 policies championed by former President Barack Obama. The unraveling of net neutrality rules that treat all web traffic equally has drawn hundreds of public protests and more than a million calls to members of Congress opposing Pai’s plan. Some consumer groups have vowed to file legal challenges of the new rules.

They roll back restrictions that have kept broadband providers like Comcast, Verizon and AT&T from blocking or charging fees to services they don’t like and would bar the country’s 50 states from enacting their own rules.

Pai says his plan will end unnecessary regulation and give more Americans access to the internet. It will give the large internet service providers the right to block rival apps, slow down competing services and offer faster internet connection to companies willing to pay for it.

“Prior to 2015, before these regulations were imposed, we had a free and open internet,” Pai told NBC. “That is the future as well under a light touch, market-based approach. Consumers benefit, entrepreneurs benefit. Everybody in the internet economy is better off with a market-based approach.”

Tim Berners-Lee, the British engineer and creator of the World Wide Web, opposed changing the U.S. policy. He said on the online platform Medium this week, “Net neutrality —  the principle that internet service providers treat all traffic equally —  underpins the internet as we know it today.”

Berners-Lee warned if Pai’s rules are adopted, “ISPs will have the power to decide which websites you can access and at what speed each will load. In other words, they’ll be able to decide which companies succeed online, which voices are heard  —  and which are silenced.”

But a lobbyist for the major telecom firms, Jonathan Spalter, head of the trade group USTelecom, dismissed concerns of opponents of the changes.

“I genuinely look forward to the weeks, months, years ahead when none of the fire and brimstone predictions comes to pass,” Spalter said.

As ‘Net Neutrality’ Vote Nears, Some Brace for Long Fight

As the federal government prepares to unravel sweeping net-neutrality rules that guaranteed equal access to the internet, advocates of the regulations are bracing for a long fight.

The Thursday vote scheduled at the Federal Communications Commission could usher in big changes in how Americans use the internet, a radical departure from more than a decade of federal oversight. The proposal would not only roll back restrictions that keep broadband providers like Comcast, Verizon and AT&T from blocking or collecting tolls from services they don’t like, it would bar states from imposing their own rules.

The broadband industry promises that the internet experience isn’t going to change, but its companies have lobbied hard to overturn these rules. Protests have erupted online and in the streets as everyday Americans worry that cable and phone companies will be able to control what they see and do online.

That growing public movement suggests that the FCC vote won’t be the end of the issue. Opponents of the move plan legal challenges, and some net-neutrality supporters hope to ride that wave of public opinion into the 2018 elections.

Concern about FCC plan

FCC Chairman Ajit Pai says his plan eliminates unnecessary regulation that stood in the way of connecting more Americans to the internet. Under his proposal, the Comcasts and AT&Ts of the world will be free to block rival apps, slow down competing service or offer faster speeds to companies who pay up. They just have to post their policies online or tell the FCC.

The change also axes consumer protections, bars state laws that contradict the FCC’s approach, and largely transfers oversight of internet service to another agency, the Federal Trade Commission.

After the FCC released its plan in late November, well-known telecom and media analysts Craig Moffett and Michael Nathanson wrote in a note to investors that the FCC plan dismantles “virtually all of the important tenets of net neutrality itself.”

That could result in phone and cable companies forcing people to pay more to do what they want online. The technology community, meanwhile, fears that additional online tolls could hurt startups who can’t afford to pay them — and, over the long term, diminish innovation.

“We’re a small company. We’re about 40 people. We don’t have the deep pockets of Google, Netflix, Amazon to just pay off ISPs to make sure consumers can access our service,” said Andrew McCollum, CEO of streaming-TV service Philo.

ISPs: Trust us

Broadband providers pooh-pooh what they characterize as misinformation and irrational fears. “I genuinely look forward to the weeks, months, years ahead when none of the fire and brimstone predictions comes to pass,” said Jonathan Spalter, head of the trade group USTelecom, on a call with reporters Wednesday.

But some of these companies have suggested they could charge some internet services more to reach customers, saying it could allow for better delivery of new services like telemedicine. Comcast said Wednesday it has no plans for such agreements.

Cable and mobile providers have also been less scrupulous in the past. In 2007, for example, the Associated Press found Comcast was blocking or throttling some file-sharing. AT&T blocked Skype and other internet calling services on the iPhone until 2009. They also aren’t backing away from subtler forms of discrimination that favor their own services.

There’s also a problem with the FCC’s plan to leave most complaints about deceptive behavior and privacy to the FTC. A pending court case could leave the FTC without the legal authority to oversee most big broadband providers. That could leave both agencies hamstrung if broadband companies hurt their customers or competitors.

Critics like Democratic FTC commissioner Terrell McSweeny argue that the FTC won’t be as effective in policing broadband companies as the FCC, which has expertise in the issue and has the ability to lay down hard-and-fast rules against certain practices.

Public outcry

Moffett and Nathanson, the analysts, said that they suspect the latest FCC rules to be short-lived. “These changes will likely be so immensely unpopular that it would be shocking if they are allowed to stand for long,” they wrote.

There have been hundreds of public protests against Pai’s plan and more than 1 million calls to Congress through a pro-net neutrality coalition’s site. Smaller tech websites such as Reddit, Kickstarter and Mozilla put dramatic overlays on their sites Tuesday in support of net neutrality. Twitter on Wednesday was promoting #NetNeutrality as a trending topic. Other big tech companies were more muted in their support.

Public-interest groups Free Press and Public Knowledge are already promising to go after Pai’s rules in the courts. There may also be attempts to legislate net neutrality rules, which the telecom industry supports. Sen. John Thune, a South Dakota Republican, on Tuesday called for “bipartisan legislation” on net neutrality that would “enshrine protections for consumers with the backing of law.”

But that will be tough going. Democrats criticized previous Republican attempts at legislation during the Obama administration for gutting the FCC’s enforcement abilities. Republicans would likely be interested in proposing even weaker legislation now, and Democrats are unlikely to support it if so.

Some Democrats prefer litigation and want to use Republican opposition to net neutrality as a campaign issue in 2018. “Down the road Congress could act to put in place new rules, but with Republicans in charge of the House, Senate, and White House the likelihood of strong enforceable rules are small,” Rep. Mike Doyle, a Pennsylvania Democrat, wrote on Reddit last week. “Maybe after the 2018 elections, we will be in a stronger position to get that done.”

A future FCC could also rewrite net-neutrality regulation to be tougher on the phone and cable industry. That could bring a whole new cycle of litigation by broadband companies.

Blockchain — The New Must-Know Word

There is a new word in the English language that all internet users should learn, because it may define the next stage in global financial transactions. It may not be translatable to many other languages so it may become an international term, much like “computer” or “internet,” used and understood around the world. The word is “blockchain,” and VOA’s George Putic explains its meaning.

Microsoft Updates Bing Search to Highlight Reputable Results

Microsoft on Wednesday rolled out new features on its Bing search engine powered by artificial intelligence, including one that summarizes the two opposing sides of contentious questions, and another that measures how many reputable sources are behind a given answer.

Tired of delivering misleading information when their algorithms are gamed by trolls and purveyors of fake news, Microsoft and its tech-company rivals have been going out of their way to show they can be purveyors of good information — either by using better algorithms or hiring more human moderators.  

Second-place search engine 

Microsoft is also trying to distinguish its 2nd-place search engine from long-dominant Google and position itself as an innovator in finding real-world applications for the latest advances in artificial intelligence.

“As a search engine we have a responsibility to provide answers that are comprehensive and objective,” said Jordi Ribas, Microsoft’s corporate vice president for AI products.

Bing’s new capabilities are designed to give users more confidence that an answer is correct and save them time so they don’t have to click through multiple links to validate it themselves. 

“You could be asking, ‘Is coffee good for you?’ We know that there are no good answers for that,” Ribas said. But the new search features side-by-side opposing perspectives. One source emphasizes coffee’s ability to increase metabolism and another shows it can raise blood pressure. Similar questions can also be asked on more sensitive topics, such as whether the death penalty is a good idea.

Digestible doses

On more complicated questions — is there a god? — Bing doesn’t have enough confidence to provide a pro-con perspective. But on questions that involve numbers, it boils information down into digestible doses. Iraq, for instance, is described as “about equal to the size of California.”

Search engines have evolved since Google took the lead at the turn of the 21st century, when rankings were based on “link analysis” that assigned credibility to sites based on how many other sites linked to them. As machines get better at reading and summarizing paragraphs, users expect not just a list of links but a quick and authoritative answer, said Harry Shum, who leads Microsoft’s 8,000-person research and AI division. To test its technology, the company has compared its machine-reading skills to the verbal score on the SAT.

“We are not at 800 yet, but we bypassed President Bush a long time ago,” Shum jokes.

Sophisticated searches

 The demand for more sophisticated searches has also grown as people have moved from typing questions to voicing them on the road or in their kitchen.

“If you use Bing or Google nowadays you recognize that more and more often you’ll see direct answers on the top of search result pages,” Shum said. “We’re getting to the point that for probably about 10 percent of those queries we’ll see answers.”

Shum is hesitant to over-promise Bing’s new features as an antidote to the misinformation flooding the internet. 

“At the end of the day, people have their own judgments,” he said.

The search engine features were announced along with updates to Microsoft’s voice assistant Cortana and a new search partnership with the popular online forum Reddit.

Trump Administration Calls for Government IT to Adopt Cloud Services

The White House said Wednesday the U.S. government needs a major overhaul of information technology systems and should take steps to better protect data and accelerate efforts to use cloud-based technology.

“Difficulties in agency prioritization of resources in support of IT modernization, ability to procure services quickly, and technical issues have resulted in an unwieldy and out-of-date federal IT infrastructure,” the White House said in a report.

The report outlined a timeline over the next year for IT reforms and a detailed implementation plan. The report said one unnamed cloud-based email provider has agreed to assist in keeping track of government spending on cloud-based email migration.

President Donald Trump in April signed an executive order creating a new technology council to overhaul the U.S. government’s information technology systems.

The report said the federal government must eliminate barriers to using commercial cloud-based technology. “Federal agencies must consolidate their IT investments and place more trust in services and infrastructure operated by others,” the report found. Government agencies often pay dramatically different prices for the same IT item, the report said, sometimes three or four times as much.

Amazon.com Inc, Microsoft Corp, Alphabet Corp’s Google and Intel Corp are making big investments in the fast-growing cloud computing business.

A 2016 U.S. Government Accountability Office report estimated the U.S. government spends more than $80 billion on IT annually but said spending has fallen by $7.3 billion since 2010.

In 2015, there were at least 7,000 separate IT investments by the U.S. government. The $80 billion figure does not include Defense Department classified IT systems and 58 independent executive branch agencies, including the Central Intelligence Agency.

The GAO report said U.S. government IT investments “are becoming increasingly obsolete: many use outdated software languages and hardware parts that are unsupported.”

The GAO report found some agencies are using systems that have components that are at least 50 years old.

Agencies typically buy their own IT systems independently, the White House said Wednesday. A “lack of common standards and lack of coordination drives costly redundancies and inefficiencies.”

The White House said in June that most of the government’s 6,100 data centers can be consolidated and moved to a cloud-based storage system.

Various U.S. government systems have been the target of hacking and data breaches in recent years. In September, the Securities and Exchange Commission, America’s chief stock market regulator, said cybercriminals may have used data stolen last year.

Growing Levels of E-Waste Bad for Environment, Health and Economy

A new report finds growing levels of E-waste pose significant risks to the environment and human health and result in huge economic losses for countries around the world.  Lisa Schlein reports for VOA from the launch of the International Telecommunication Union report in Geneva.

The global information society is racing ahead at top speed.  The International Telecommunication Union (ITU) reports nearly half of the world uses the internet and most people have access to mobile phones, laptops, televisions, refrigerators and other electronic devices.

But ITU E-waste Technical Expert, Vanessa Gray, said the ever-increasing expansion of technology is creating staggering amounts of electronic waste.

“In 2016, the world generated a total of 44.7 million metric tons of e-waste—that is, electronic and electrical equipment that is discarded,” Gray said. “So, that basically everything that runs on a plug or on a battery.  This is equivalent to about 4,500 Eiffel Towers for the year.” 

The report found Asia generates the greatest amounts of E-waste, followed by Europe and the Americas.  Africa and Oceania produce the least.

Gray warned improper and unsafe treatment and disposal of e-waste pose significant risks to the environment and human health.  She noted that low recycling rates also result in important economic losses, because high value materials – including gold, silver, copper – are not recovered. 

“We estimate that the value of recoverable material contained in the 2016 e-waste is no less than $55 billion US, which is actually more than the Gross Domestic Product in many of the world’s countries,” Gray said.

The report calls for the development of proper legislation to manage e-waste.  It says a growing number of countries are moving in that direction.  Currently, it says 66 percent of the world population, living in 67 countries, is covered by national e-waste management laws.

EmTech at MIT: Where Technology’s Future First Appears

Every year hundreds of the most famous names in high tech gather on the campus of the Massachusetts Institute of Technology, or M.I.T, for the EmTech Conference, an opportunity to discover future trends in technology that will drive the new global economy. This report by VOA Russsian Service reporter Evgeny Maslov is narrated by Bob Leverone.

Trump Signs into Law US Government Ban on Kaspersky Lab Software

President Donald Trump signed into law on Tuesday legislation that bans the use of Kaspersky Lab within the U.S. government, capping a months-long effort to purge the Moscow-based antivirus firm from federal agencies amid concerns it was vulnerable to Kremlin influence.

The ban, included as part of broader defense policy spending legislation that Trump signed, reinforces a directive issued by the Trump administration in September that civilian agencies remove Kaspersky Lab software within 90 days. The law applies to both civilian and military networks.

“The case against Kaspersky is well-documented and deeply concerning. This law is long overdue,” said Democratic Senator Jeanne Shaheen, who led calls in Congress to scrub the software from government computers. She added that the company’s software represented a “grave risk” to U.S. national security.

Kaspersky Lab has repeatedly denied that it has ties to any government and said it would not help a government with cyber espionage. In an attempt to address suspicions, the company said in October it would submit the source code of its software and future updates for inspection by independent parties.

U.S. officials have said that step, while welcomed, would not be sufficient.

In a statement on Tuesday, Kaspersky Lab said it continued to have “serious concerns” about the law “due to its geographic-specific approach to cybersecurity.”

It added that the company was assessing its options and would continue to “protect its customers from cyber threats (while) collaborating globally with the IT security community to fight cybercrime.”

On Tuesday, Christopher Krebs, a senior cyber security official at the Department of Homeland Security, told reporters that nearly all government agencies had fully removed Kaspersky products from their networks in compliance with the September order.

Kaspersky’ official response to the ban did not appear to contain any information that would change the administration’s assessment of Kaspersky Lab, Krebs said.

US Retailer Aims to Give Tech Experience to Immigrant Teens

A major U.S. electronic retailer says it wants to help immigrant and underprivileged teens gain the technology skills they’ll need for the job market.

Best Buy, in partnership with a local nongovernmental organization known as the Brian Coyle Center, has opened a tech center in Minneapolis’ Cedar-Riverside area. The center provides after-school computer classes for teens in the area, many of whom come from East African immigrant families.

The company plans to open 60 such centers nationwide by 2020. Trish Walker, the president of service for Best Buy, said the aim is to train a million teens each year to help them be prepared for tech-related jobs.

“Here, teens can learn so many skills, from coding to web programming, music production, 3-D design, editing, fashion design, getting leadership skills, entrepreneurship, mentoring from others,” Walker said at the opening ceremony for the center. “Great stuff to be able to prepare the teens for workforce for the future. Eighty percent of the future [jobs] are tech-related.”

Hamza Nur is a Somali youth who spent four years learning at the first Minneapolis-area Best Buy tech center, where he learned how to digitally edit and draw.

“I learned so much, and am grateful,” Nur said at the ceremony. “I think this is a great idea that we can all learn from. I think the idea of tech center is pretty great one, because it lets all the youth of Cedar have a great experience with technology.”

Abdirahman Mukhtar, the youth program director at the Brian Coyle Center, says the center gives young people a positive outlet through which to channel their energy, and it helps to keep them away from drugs and gangs, which have been recurring problems in the area.

“The time of the program is after-school time, and it’s [then] that a youth has free time and can commit negative habits,” he told VOA’s Somali service.

Minneapolis is home to the United States’ largest communities of Somali and East African immigrants, most of whom came to the U.S. because of armed conflicts in their home countries.

Facebook to Book Advertising Revenue Locally Amid Political Pressure

Social media giant Facebook said on Tuesday it would start booking advertising revenue locally instead of re-routing it via its international headquarters in Dublin although the move is unlikely to result in it paying much more tax.

Corporate taxation has become a hot-button topic in the wake of revelations of tax avoidance schemes by multinationals which have led to calls for companies to pay more tax while Europe has begun exploring options for taxing digital giants.

Facebook Chief Financial Officer Dave Wehner said the company had decided to move to a local selling structure in countries where it has an office to support sales to local advertisers.

“In simple terms, this means that advertising revenue supported by our local teams will no longer be recorded by our international headquarters in Dublin, but will instead be recorded by our local company in that country,” Wehner said in a blog post.

Tuesday’s announcement follows Facebook’s April 2016 shift to recording revenues from its large U.K. sales customers in Britain which resulted in an increase in the tax it paid.

“We believe that moving to a local selling structure will provide more transparency to governments and policy makers around the world who have called for greater visibility over the revenue associated with locally-supported sales in their countries,” Wehner said.

The European Commission is working on legislative proposals, expected in March, to increase taxes on multinational digital companies, who are accused of paying too little in the EU by booking profits in low-tax countries where they have their EU headquarters, like Ireland and Luxembourg.

Among the options the EU executive is considering to raise taxes quickly on tech giants is a levy on revenues from advertising, according to an EU document published in September.

Other short-term options are a tax on turnovers of digital firms and a withholding tax on electronic transactions. Wehner said Facebook would implement the change throughout 2018 and aim to complete it by the first half of 2019.

Facebook’s recent experience in Britain suggests that the move will not lead to the company paying significantly more in tax.

Facebook reported a dramatic rise in revenues and profits reported in the UK for 2016 and had a 2.5 million pound ($3.34 million) tax bill against racking up tax credits in previous years.

However, while the change did lead to an increase in the tax it paid, Facebook still enjoyed a low effective tax rate.

That’s because, even with this measure, Facebook declares relatively little profit in Britain. It reported a profit margin of under 7 percent for 2016 in Britain, compared to a group wide margin of around 45 percent for the year.

Much of the profit linked to U.K. sales is reported elsewhere are a result of inter-group transactions worth hundreds of millions of pounds.

($1 = 0.7491 pounds)

Cryptocurrency Exchanges Coinbase, Bitfinex Down

Digital currency exchange operators Coinbase and Bitfinex reported problems with service through their websites on Tuesday, frustrating traders seeking to cash in on the latest surge in the value of bitcoin and other cryptocurrencies.

Wallet-provider Coinbase’s website showed “service unavailable” early on Tuesday U.S. time, flashing a message that said it was down for maintenance. Its exchange gdax.com was still quoting prices, although it also said it was experiencing a “minor service outage.”

Bitfinex, another cryptocurrency exchange, tweeted it was under heavy distributed denial of service (DDoS) and its application programming interface was down.

DDoS attacks have been common on the internet, using hijacked and virus-infected computers to target websites until they can no longer cope with the scale of data requested. It was not immediately clear if the two incidents were related to any cyberattacks.

Bitfinex last Thursday tweeted that it had been under significant denial of service attack for several days, and that the attack had recently worsened.

Bitcoin exchanges and wallets have a history of being hacked, and security experts say they become more vulnerable to cyber-crime as valuations rise.

There have been at least three dozen heists on exchanges that buy and sell digital currencies since 2011, including one that led to the 2014 collapse of Mt. Gox, once the world’s largest bitcoin market.

The latest attack came last Thursday, when a Slovenian cryptocurrency mining marketplace, NiceHash, said it lost about $64 million worth of bitcoin in a hack of its payment system.

Bitfinex did not immediately respond to a request for comment. Reuters was unable to contact Coinbase since the website was down.

Reporting By Aparajita Saxena in Bengaluru; Editing by Martina. D’Couto and Patrick Graham.