Daniel Osburn

Federal Communications Commission Chairman Julius Genachowski announced Monday, that the FCC would prevent broadband carriers from limiting your access to high speed Internet for things like Internet-based voice calls, video streaming, and legal file sharing (that carriers might wish to block or at least charge extra for). In a speech to the Brookings Institution in Washington, D.C. on Monday, Genachowski said the FCC will begin to formalize net neutrality rules in the United States. This is particularly important with the emergence of data-intensive smartphone handsets, 3G netbooks, and wireless broadband cards. Genachowski also wants to have a public discussion about how net neutrality regulations would apply to mobile broadband providers. As expected, not everyone is happy with Genachowski's concept of what a free and open Internet should be.

To keep the Internet neutral, Genachowski wants the FCC to formally adopt six principles, four of which have been employed by the FCC on a case-by-case basis since 2005. 1. Consumers are entitled to access the lawful Internet content of their choice. 2. Consumers are entitled to run applications and use services of their choice, subject to the needs of law enforcement. 3. Consumers are entitled to connect their choice of legal devices that do not harm the network. 4. Consumers are entitled to competition among network providers, application and service providers, and content providers. Here's what's going on: The FCC's Four Freedoms Grow to Six On Monday, Genachowski described the Internet as a "blank canvas" that has inspired "innovation and ubiquitous entrepreneurship." He cited online success stories like Netscape, Facebook, and eBay, arguing that businesses like these could not have been successful without a free and open Internet. The two additions: 5. Broadband providers cannot block or degrade lawful traffic over their networks, favor certain content or applications over others and cannot "disfavor an Internet service just because it competes with a similar service offered by that broadband provider." 6.Broadband providers must be transparent about the service they are providing and how they are running their networks. In a blog post entitled "Does the Internet Need More Regulation? Don't force us to be free While the principle of net neutrality has been embraced for years by many Internet advocates including Craig Newmark of Craig's List, Google, and Microsoft; broadband providers and mobile operators aren't so sure about Genachowski's plan.

FCC to Decide," David L. Cohen, executive vice president of broadband for Comcast - one of the largest broadband providers in the United States - points out that net neutrality debates have been going on for years. Wired's Dylan F. Tweney has an interesting take on the FCC's net neutrality moves, arguing that intervention will actually stifle your Internet access. During that time, however, the "Internet has enjoyed immense growth... [and the] Internet in America has been a phenomenal success." With that in mind, says Cohen, it is "fair to ask whether increased regulation of the Internet is a solution in search of a problem." Despite Cohen's questions about government intervention, he says Comcast is committed to working with the FCC on this issue. Tweney's three-point argument suggests that broadband providers may be forced to give up on flat-rate Internet service in favor of bandwidth caps. Tweney believes formal net neutrality will cause problems in broadband that we've already seen with iPhone users' inconsistent service from AT&T. Enforcement may also be difficult for the FCC to carry out, according to Tweney, because it will be hard to prove when a service provider has run afoul of neutrality regulations. Bandwidth, Tweney argues, is not unlimited - especially for mobile providers - and therefore must be managed.

Tweney also says an open and free Internet has already won out over closed networks, and points to the failures of services like AOL and CompuServe as examples. However, the FCC Chairman did say he wanted the regulatory body to "analyze fully the implications of the principles for mobile network architectures and practice." Cell phone companies were not too thrilled to hear about this. "We are concerned the FCC appears ready to extend the entire array of net neutrality requirements to what is perhaps the most competitive consumer market in America , wireless services," AT&T said in a statement. Mobile Provider Backlash In his speech, Genachowski didn't lay out any specifics for how net neutrality would apply to mobile providers. Verizon also spoke up, saying the FCC should not start regulating the Internet and arguing net neutrality would "limit customer choices and affect content providers, application developers, device manufacturers and network builders," according to the BBC. Republicans Move Against Net Neutrality Reacting to the FCC's announcement, Senator Kay Bailey Hutchinson from Texas, who is the ranking Republican on the Senate Commerce Committee, attached an amendment to an appropriations bill that would deny the FCC any funding for "developing or implementing new Internet regulations," according to Eweek. The amendment was co-sponsored by four other Republicans. Republican objections to the FCC proposal include concerns that government intervention would stifle innovation.

What's next for the FCC Genachowski said he wants to initiate a public discussion about net neutrality that is "fair, transparent, fact-based, and data-driven." The FCC Chairman says nothing is predetermined, and will schedule public workshops as well as online discussion. Watch Julius Genachowski's Introduction to OpenInternet.gov: To that end, the FCC has launched a new Website called OpenInternet.gov, where, you can submit comments, view Genachowski's speech, and connect with the FCC through social networks and new media like Twitter, Facebook and YouTube.

The man described by federal authorities as the mastermind of the massive data thefts at TJX Companies Inc., Heartland Payment Systems and other retailers today pleaded guilty to charges in a 19-count indictment that include conspiracy, wire fraud and aggravated identity theft. That case was being prosecuted separately in New York but was merged with the case in Boston under a plea agreement negotiated with prosecutors a few days ago. Albert Gonzalez, 28, of Miami, also pleaded guilty to one count of conspiracy to commit wire fraud related to a data theft at Dave & Buster's restaurant chain. Gonzalez is scheduled to be sentenced Dec. 8 by U.S. District Court Judge Patti Saris in Boston.

Under the plea agreement, Gonzalez will serve between 15 and 25 years for both cases and will be fined as much as $250,000 for each of the charges. He faces a maximum of 25 years in prison for the charges in Boston and 20 years for the case in New York. Gonzalez will also forfeit more than $2.7 million in cash as well as multiple pieces of real estate and personal property, including a condominium in Miami, a BMW and several Rolex watches that he is alleged to have acquired through his ill-gotten gains. Gonzalez was arrested in Miami in 2008 along with 10 other individuals on charges relating to the thefts at TJX, Dave & Busters, BJ's Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports Authority, Forever 21 and DSW. In August, federal authorities in New Jersey indicted Gonzalez on charges involving breaches at Heartland Payment Systems, Hannaford, 7-Eleven Inc. and two other unnamed retailers. About $1 million of the money being forfeited was recovered from a container buried in Gonzalez' back yard, according to a statement released today by the U.S. Department of Justice. Prosecutors alleged that Gonzalez, along with two unnamed Russian conspirators, stole more than 130 million credit and debit cards from the five retailers.

It is not clear if Gonzalez was the leader of a worldwide criminal gang or merely acting at the behest of powerful crime gangs based in Russia and East Europe. Today's plea brings to an end, for the moment, to the career of a hacker who federal authorities say has been the mastermind of the biggest data thefts in U.S. history. But his actions, which his lawyer has claimed stemmed from a computer addiction , have caused millions of dollars in losses to his victims. In addition, some of the companies that were Gonzalez's victims have had to pay fines to Visa and the other card brands for being noncompliant with the credit card industry's Payment Card Industry Data Security Standard and to spend more money to revamp their security controls. TJX has publicly estimated that costs to the company from the data breach will touch $200 million . Heartland has already spent or set aside more than $12 million and is facing numerous lawsuits from affected institutions.

Every year it seems that some foreign telecom company is in the running to purchase Sprint and this year is no exception. Hottest tech M&A deals of 2009 Deutsche Telekom is the parent company of U.S. wireless carrier T-Mobile USA, meaning that any purchase of Sprint would probably mean a merger of the two carriers. According to a report in the U.K.-based Telegraph newspaper, German carrier Deutsche Telekom is interested in purchasing Sprint and could submit an offer that will likely at least match the $10.6 billion that the company is estimated to be worth.

Sprint is the third-largest wireless carrier in the United States with an estimated 48.8 million wireless subscribers, while T-Mobile is the fourth-largest carrier with an estimated 33.5 million wireless subscribers. Deutsche Telekom was rumored to be interested in Sprint last year, when the company's credit rating was downgraded to junk status by Standard and Poor's. South Korean carrier SK Telecom was also rumored to have an interest in purchasing Sprint. A merger between the two companies would help T-Mobile match the subscriber numbers fielded by wireless giants AT&T, which has approximately 78 million subscribers, and Verizon, which has approximately 86 million subscribers. In 2007, Sprint nixed a $5 billion investment offer from SK Telecom and buyout firm Providence Equity Partners that also would have installed former Sprint chairman Tim Donahue as Sprint's CEO. SK Telecom and Providence Equity partners had proposed the investment to Sprint earlier in the month in a letter written to the telco in tandem to Donahue. Sprint's competitors, meanwhile, all seemed to extend their advantages over the beleaguered carrier.

Sprint has taken a major hit to its finances and market share in recent years, as the carrier not only posted an annual loss of $2.8 billion in 2008 but also lost more than 4 million wireless subscribers and wound up laying off 8,000 workers this past January. Buoyed by the release of the iPhone 3G, AT&T added nearly 7 million wireless subscribers in 2008 while posting earnings of $12.9 billion for the year, a 7.7% increase over its 2007 earnings. Verizon, meanwhile, added 6.3 million wireless customers while posting a net income of $6.4 billion, a 16.4% increase from 2007.

TransferJet, a data transfer technology that allows information to be exchanged between gadgets by simply bringing them close to each other, should begin appearing in products next year.

Both Sony and Toshiba are demonstrating the technology at this week's IFA electronics fair in Berlin and said products should be available in early 2010.

TransferJet works over a distance of a few centimeters and users will see speeds of up to 375Mbps. It's designed for data exchange between a user's gadgets and uses radio spectrum around 4.5GHz, which is available for unlicensed applications in most countries, so worldwide use should be possible.

"The idea of TransferJet is not to compete with technologies like WiFi. It can be viewed as a connector replacement," said Chris Clifton, chief technology officer at Sony UK's Semiconductor and electronic solutions division. "So instead of looking for the USB cable or the hassle of trying to connect from one device to another, just touch and go and transfer data in a few seconds."

The products will follow the completion of version 1.0 of the TransferJet standard, which is due next month, said Clifton.

Sony originally developed the technology but work was handed over to a consortium last year. It counts 40 major consumer electronics companies among its members, including Samsung, Toshiba, Kodak, Canon, Nikon, Panasonic, Sharp, Olympus, Pioneer and Sony Ericsson.

Details of the first products are not available but as many of the major digital still camera, video camera and cellular telephone companies are among the early supporters it's likely that it will appear in these products first.

At IFA Sony was demonstrating data transfer from a Walkman to a cell phone and from a cell phone to a digital picture frame, and also downloading of movies from a retail kiosk. Toshiba was using TransferJet to send photos from a cell phone to a laptop computer.

TransferJet's short range brings several advantages, said Clifton.

It uses a low power to transmit data so doesn't have the same problems with interference that other wireless technologies can suffer, and has a lesser impact on battery life. It also means that set-up can be made easier without all of the pairing and security in systems like Bluetooth. Because it works over a few centimeters it typically would require a user to be in possession of the gadgets being used.

TransferJet was first unveiled by Sony at the Consumer Electronics Show in Las Vegas in January 2008. A prototype system transferred pictures from a digital camera to a television. The technology was again demonstrated at this year's CES when Toshiba showed a prototype PDA with the technology.