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TITLE: NSA Caught Hacking Huawei, 970GUEST CO-ANCHOR: Donna Tam

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This is Tech News Today for Monday, March 24, 2014!

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Welcome to Tech News Today, I'm Mike Elgan - I'm Jason Howell.

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Tech News Today explores the big stories of the day in conversation with some of the world's best journalists.

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Our guest co-anchor today is Donna Tam, a writer for CNET.Donna Tam
Reporter, CNET @donnaytam

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http://bridgeurl.com/tnt970/all

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LATE-BREAKING STORYSHOWLINKS

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News

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CONVERSATION 1SHOWLINKS

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The US government has long accused the Chinese telecommunications giant Huawei of selling equipment compromised by code that enabled spying and hacking. A new report in the German magazine Der Spiegel says that it’s true. But it’s not the Chinese government doing the spying and hacking -- it’s the NSA.http://www.spiegel.de/international/world/nsa-spied-on-chinese-government-and-networking-firm-huawei-a-960199.htmlhttp://www.nytimes.com/2014/03/23/world/asia/nsa-breached-chinese-servers-seen-as-spy-peril.html

http://www.lawfareblog.com/2014/03/the-nyt-on-nsas-huawei-penetration/

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Holger Stark (HOLE-ger Schtark)
Senior correspondent, Der Spiegel

Q: Can you tell us more about the NSA hacking of Huawei? Why did they target the company and how did they do it?

Q: It appears that the initial idea was to hack Huawei to find out if Chinese government and army hackers were using the company’s equipment as secret spy tools. But then the agency appears to have realized that they themselves could do that. Is that right?

Q: Did the NSA appear to have found evidence that Huawei was being used by the Chinese government for spying

Q: You reported that the NSA was able to access the secret source code of individual Huwaei products. Is there any indication that the NSA was involved in industrial espionage

Q: You mentioned involvement of the White House and the FBI. Is this unusual?

Q: The piece posted over the weekend was a “preview” to a longer story to be posted in the magazine. Can you give us some highlights of what will appear in the longer story?

Q: Your report suggested hacks against other companies besides Huawei. Any major companies?

Q: Isn’t this the good kind of spying -- the reason for NSA’s existence?
Holger Stark
Senior correspondent, Der Spiegel @holger_stark

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* Started out trying to figure out whether Huawei was involved with PLA, but once inside decided to take opportunities to piggyback on Huawei’s business to spy broadly

* SHOTGIANT didn’t find out whether Huawei was involved in espionage

* NSA did identify espionage opportunities in compromising Huawei, including surveillance of an undersea fiber optic cable

* “If we can determine the company’s plans and intentions,” an analyst wrote, “we hope that this will lead us back to the plans and intentions of the PRC,” ]\\

* Huawei laid undersea cables to connect its $40 billion-a-year networking empire, the NSA was interested in tunneling into customers like Iran, Afghanistan, Pakistan, Kenya, Cuba.

* Documents were disclosed by The New York Times and Der Spiegel

* The N.S.A., for example, is tracking more than 20 Chinese hacking groups — more than half of them Chinese Army and Navy units — as they break into the networks of the United States government, companies including Google

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spiegel.de @holger_stark

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CONVERSATION 2SHOWLINKS

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Apple is talking to Comcast about streaming TV. The deal would give users of a future Apple TV box an advantage in getting past network congestion, according to a report in The Wall Street Journal. http://arstechnica.com/business/2014/03/apple-wants-its-own-path-on-comcast-network-for-video-service-wsj-says/http://variety.com/2014/digital/news/apple-comcast-tv-pact-dont-hold-your-breath-1201144101/

http://online.wsj.com/news/articles/SB10001424052702303949704579457554242014552

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INTERVIEW 1: Jon Brodkin
Reporter, Ars Technica

Q: If the report is true, it appears that Apple wants preferential treatment without being technically given higher priority in a way that violates net neutrality. How would they achieve this?

Q: The report suggests that this is not for Apple TV, but for a future product.

Q: In the past, Comcast and Apple could not agree over whether or not such services would be delivered via an Apple ID. Is there any indication that Comcast would change its tune on this?

Q: Apple’s general set of goals here is probably the same as what Roku, Google and any number of other companies would love to achieve. Why would Apple be granted this special treatment?
Jon Brodkin
Reporter, Ars Technica @jbrodkin

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Arstechnica.com * @jbrodkin

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INTERVIEW 2 Andrew Wallenstein
Editor-in-chief, VARIETY Digital

http://variety.com/2014/digital/news/apple-comcast-tv-pact-dont-hold-your-breath-1201144101/

Q: Andrew, you wrote that this deal is unlikely. Why?

Q: How does Time Warner Cable’s pending merger with Comcast affect prospects for an Apple deal?

Q: As you pointed out, Apple always seems to be “in talks” with media companies, yet seems to reach actual agreementts only rarely. Why is that?

Q: Why are Hollywood studios afraid of Apple?

Andrew Wallenstein
Editor-in-chief, VARIETY Digital @awallenstein

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* Deal would keep Apple’s live streaming TV traffic “separated from public Internet traffic over the 'last mile'——the portion of a cable operator's pipes that connect to customers' homes."

* They would get around net neutrality rules by treating Apple traffic as a "specialized" or “managed services”

* This would make Apple video “separate” but not “prioritized,” and thereby avoid net neutrality rules

* Rumors that Apple was teaming up with Time Warner Cable for video delivered on a new Apple TV set-top box cropped up last July and again in February.

* Deal would “mark a new level of cooperation and integration between a technology company and a cable provider to modernize TV viewing.”

* Stream live and on-demand TV programming and digital-video recordings stored in the "cloud"

* Would replace cable set-top box

* Apple wants new TV service's traffic to be separated from public Internet traffic over the "last mile"

* Goal: video the same quality as Comcast's TV transmissions to normal set-top boxes

* Apple and Comcast are NOT close to an agreement

* Comcast would have to spend big bucks to make it happen

* Apple wants users to sign on using Apple login IDs

* Comcast wants to retain significant control over the relationship with customers and the data

* Apple would have to get significant TV programming rights from media companies

* People familiar with the matter said that while Apple would like a separate "flow" for its video traffic, it isn't asking for its traffic to be prioritized over other Internet-based services.

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variety.com @awallenstein

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CONVERSATION 3SHOWLINKS

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Microsoft’s $7.2 billion deal to acquire Nokia’s phone business has been delayed. The acquisition was expected to be done by the end of this month, but now it probably won’t happen until the end of April. The holdup is Asian regulatory approval, according to Nokia. http://press.nokia.com/2014/03/24/nokia-expects-the-sale-of-substantially-all-of-its-devices-services-business-to-microsoft-to-close-in-april-2014/

http://blogs.technet.com/b/microsoft_blog/archive/2014/03/23/an-update-on-nokia-devices-and-services-acquisition.aspx

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No Interview

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* Sale was announced last September

* European Union and U.S. Department of Justice approved the purchase in December

* The deal = Nokia will sell substantially all of its Devices & Services business and license its patents to Microsoft

* Bloomberg reported Huawei and Samsung Electronics have complained to the Chinese government, worried about higher cross-licensing fees

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CONVERSATION 4SHOWLINKS

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Cisco plans to spend a billion dollars on new data centers over the next two years to compete with Amazon in the cloud services market. Called Cisco Cloud Services, the new offering is very different from Cisco’s previous business of selling networking equipment. http://www.marketwatch.com/story/cisco-and-partners-to-build-worlds-largest-global-intercloud-2014-03-24http://online.wsj.com/news/articles/SB10001424052702303949704579457743067494938

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No Interview

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* Cisco = $49 billion in annual revenue

* Amazon Web Services makes about $3 billion or more in annual revenue

* Amazon is big on startups; Cisco may go after enterprises

* "It does not mean that we're embarking on a strategy to go head-to-head with Amazon," Cisco's Mr. Lloyd said.

* Cisco plans to sell its cloud services to telecom companies that will then use them in a package of Internet-based services the companies already sell to others

* Cisco may be getting price-squeezed by rival Huawei and others who sell cheaper

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CONVERSATION 5SHOWLINKS

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CONVERSATION 6SHOWLINKS

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CONVERSATION 7SHOWLINKS

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CONVERSATION 8SHOWLINKS

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CONVERSATION 9SHOWLINKS

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E-MAILSHOWLINKS

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FOLLOW-UP

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We told you Friday that after Turkey’s government blocked Twitter in that country, a viral campaign of graffiti spread the word about Google’s Public DNS service, which helped users get around the block. Over the weekend, the Turkish government blocked that, too. Twitter users are still able to get around the block by using other DNS servers, or by using a VPN or the Tor network. http://www.washingtonpost.com/blogs/the-switch/wp/2014/03/22/turkey-strengthens-twitter-ban-institutes-ip-level-block/

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* * * FIN * * *

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NSA caught hacking Huawei!

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Apple wants special treatment by Comcast!

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Microsoft won’t get Nokia’s phone business until April

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And Cisco is getting into the cloud business!

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* * * END PROMPTER COPY * * *