theodp writes "Have you ever hacked into AT&T customer accounts and diverted money to terrorism-financing groups? You will. In 2003, the NY Times reported that AT&T contended U.S. victims of a Philippines-based telephone hacking swindle were responsible for long-distance calls fraudulently made through their voice mail systems. At the time, the city of East Palo Alto was slapped with a $30,000 long-distance phone bill that resulted from voice-mail hacking. Fast forward to 2011, and the NY Times is reporting that a Philippines-based group hacked into the accounts of AT&T business customers in the U.S. and diverted money to an organization that financed terrorist attacks across Asia. But it's not quite deja-vu-all-over-again. While it'd make a better story if AT&T contended customers were responsible for the charges and any ensuing terrorism, AT&T reimbursed the victims of the hacking this time around."

An anonymous reader writes "The attempted merger between AT&T and T-Mobile has fallen on hard times amid antitrust concerns, but there's a potential silver lining for T-Mobile — one that would give them a boost over competitors anyway. Reuters reports that T-Mobile USA would be entitled to a hefty breakup fee including $3 billion in cash as well as spectrum and roaming agreements. 'In a research note, Moody's said that could also lead to a network sharing deal between the two companies, reasoning that it "would make sense given the spectrum that AT&T will have to cede to T-Mobile and the 3G roaming agreement between the two." That would make life especially hard for No. 3 U.S. carrier Sprint, which has been one of the most vocal opponents of the AT&T/T-Mobile deal, going so far as to file a lawsuit. ... Smaller rivals such as MetroPCS and Leap Wireless may be affected even more because T-Mobile is eyeing similar customer segments.'"

An anonymous reader writes Relationships are tough and it looks like AT&T and T-Mobile's has stopped before it even started. From the article: 'AT&T and T-Mobile have announced that they will remove their pending applications to the FCC for their merger bid. This comes after statements from the FCC chairman 'strongly opposing the merger'. In doing so, AT&T has agreed to pay T-Mobile 4 Billion US dollars to cover accounting and other costs that this may have caused. While AT&T would still like to merge, it is unlikely that they will gain antitrust clearance from the Department of Justice. It's the antitrust aspect that this is mostly about, in that AT&T has said that they want this move to free up the FCC to consider all options, and focus both AT&T and T-Mobile on the pending antitrust.'"

jfruhlinger writes "AT&T's plan to merge with T-Mobile just hit a pretty big snag. The FCC declared the merger would be anti-competitive and not in the public interest." According to the NY Times, the FCC seeks to hold a hearing before an administrative law judge in which the burden would be upon AT&T to prove the deal isn't anti-competitive.

New submitter fran6gagne writes "AT&T [Monday] notified customers of an effort by hackers to collect online account information. It is not believed that the perpetrators of this attack obtained access to sensitive information." eWeek's account has a bit more detail.

gManZboy writes "Babies, athletes, first responders, the elderly — a growing list of people could benefit from connected clothing, says AT&T, which claims 'the stars have aligned' for this technology. Prices of clothing sensors have come down; Wi-Fi and wireless networks have become ubiquitous; and mobile apps have become easier to design and simpler to use. 'For example, parents of babies could cover them in connected clothing to check on their children when they were out of the house ... And relatives of elderly people who are "aging in place" in their homes could check on their vital signs and make sure their loved ones haven't fallen. This could help the elderly stay out of assisted living facilities, as most prefer to do.'"

dstates writes "What happens when Apple ships 100,000 iPhone 4S in a day? Answer, 100,000 users all try to activate their new phones. AT&T's activation servers are struggling under the load. Apparently Verizon and Sprint are doing a better job keeping up with the load." Adds an anonymous optimist: "The solution? Call AT&T by dialing 611 and talking to an operator to perform a manual activation with your IMEI and SIM card #, works every time!"

With his first accepted submission, tyler.russell writes with a report that the WineHQ database systems were compromised. Quoting the official announcement: "We are sorry to report that recently our login database for the Wine HQ Application Database was compromised. We know that the entire contents of the login database was stolen by hackers. The password was encrypted, but with enough effort and depending on the quality of your old password, it could be cracked. We have closed the hole in our system that allowed read access to our database tables. To prevent further damage we have reset your password to what is shown below. We strongly suggest that if you shared your AppDB password on any other sites that you change that password as soon as possible.". He adds: "A new username and password were included with this email."

Apple is currently announcing various things about a new iPhone; the CNN Live has coverage as it is happening. Watch for updates as more information comes in. For those of you who like to read instead of watch, PC Magazine is^W was^W is running a live commentary stream (it broke and then unbroke). The New York Times also has a working live stream which seems more reliable. Update: 10/04 19:04 GMT by U L :Unexpectedly, Apple did not announce an iPhone 5, but rather an incremental update. CNet has a decent article about the features of the iPhone 4S. Additionally, all major carriers except T-Mobile will be getting the phone October 14th.

hazytodd was one of several readers to tip news of Sprint Nextel's plan to grab a piece of the iPhone action in order to halt the company's downward slide. According to a Wall Street Journal report, Sprint has committed to buying 30.5 million iPhones over the next five years (summary of paywalled WSJ story), which at retail rates works out to roughly $20 billion. "To sell that many iPhones, Sprint would have to double its rolls of contract customers, convert all of them to the Apple device or a combination of the two." A separate rumor at Boy Genius Report suggests the iPhone 5 may be a Sprint exclusive until sometime next year, with Verizon and AT&T getting the upgraded iPhone 4S until then. Apple is holding an event to unveil the new phone tomorrow.

tekgoblin writes "AT&T has started tossing out warnings for users that fall into the top 5% of data users on their wireless network. AT&T announced this change back in July and is now starting to actually enforce it."

zacharye writes "BGR has uncovered a security flaw on AT&T's version of the Samsung Galaxy S II that renders Android's unlock pattern feature completely useless. Using a simple workaround, the security hole allows anyone to bypass the unlock pattern, which normally denies users access to an Android device unless a preset pattern is drawn on a grid of nine dots spread across the device's lock screen."

The proposed merger of AT&T with T-Mobile doesn't impress everyone as a good idea; in particular, Sprint has filed suit to stop the merger, and while hardly a disinterested party, they're not alone in claiming that the resulting megacompany would harm customers. Verizon is taking a different tack; tekgoblin passes along this excerpt: "Verizon Communications chief executive Lowell McAdam has announced that he is supporting the AT&T T-Mobile merger. He warned that the Government has no choice but to let the deal go though unless they want to fix the current spectrum problems. He went on to say 'We need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation.' The current telcos need more wireless spectrum to continue expanding and operating efficiently so they have resorted to acquiring other companies."

Attorney Jennifer Granick has defended many high profile hackers, including researcher Christopher Soghoian, creator of a fake boarding pass generator (2006); Michael Lynn versus Cisco/ISS (2005); Jerome Heckenkamp; and Luke Smith and Nelson Pavlosky in Online Policy Group v. Diebold Election Systems (now Premier Election Solutions), a copyright misuse case related to electronic voting. Granick also won an exemption from the U.S. Copyright Office in 2006 allowing phone unlocking despite the anti-circumvention provisions of the Digital Millennium Copyright Act, which set the stage for renewal of the exemption and for the jailbreaking exemption in 2009. At Stanford, Granick worked with Lawrence Lessig on constitutional copyright cases and taught six years worth of law students about computers, technology and civil liberties. While Civil Liberties Director at the EFF, Granick started the Coders' Rights Project and participated in litigation against ATT and the federal government for violation of surveillance regulations. Now an attorney at ZwillGen PLLC, Granick assists individuals and companies creating new products and services. And now, she's graciously agreed to answer your questions. Please, as usual, ask as many questions as you'd like, but confine each question to a separate post.

adeelarshad82 writes "AT&T launched a speedy 4G LTE network in five cities on Sunday, and the question that comes to mind is how it compares to Verizon Wireless' 4G LTE system. Well, according to the eight rounds of testing conducted in Houston, Texas, Verizon may have something to worry about. Downloads over the AT&T network averaged about 24Mbps and peaked at 42.85Mbps, the fastest cellular connection seen to date. Just as interesting as the sheer download speeds were the connection quality results: Pingtest.net generally rated the network an A or a B, good enough for video chat or gaming."

An anonymous reader writes "New York, California, and five other U.S. states have joined a lawsuit initiated by the Department of Justice that would block AT&T's merger with T-Mobile. 'The revised filing comes ahead of a court hearing next week, when the two sides are scheduled to discuss the prospects of a settlement. AT&T has said that it will contest the Justice Department's lawsuit, while also seeking a potential settlement.' CNet notes that 'States don't have the power to block the deal, but they can influence the federal regulators and make it more onerous if AT&T attempts to negotiate for concessions to close the deal. They can also slow down the process with their own lawsuits.'"

An anonymous reader writes "Last week the Department of Justice filed an antitrust complaint to stop the merger between AT&T and T-Mobile USA. Now, AT&T has responded, arguing that the merger would benefit consumers by increasing competition and freeing up spectrum. 'That means increased output, higher quality service, fewer dropped calls,and lower prices to consumers than without the merger,' they say. Meanwhile, House Republicans have sent a letter to FCC Chairman Julius Genachowski and Attorney General Eric Holder asking for an explanation of 'what went into the decision to challenge the merger and whether the agencies considered the impact on jobs and economic growth.' A hearing is scheduled for Sept. 21."

zacharye writes with a news post in BGR. From the article: "Sprint ... announced that it has filed a lawsuit with a federal court in the U.S. District of Columbia in an effort to block AT&T's planned $39 billion acquisition of T-Mobile USA from Deutsche Telekom. The suit is related to the Department of Justice's lawsuit, which was filed on August 31st. 'Sprint opposes AT&T's proposed takeover of T-Mobile,' Sprint's vice president of litigation Suzan Haller said. 'With today's legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal.'"

sunbird writes "The EFF argued several critical cases yesterday before the Ninth Circuit Court of Appeals. Both Hepting v. AT&T and Jewel v. National Security Agency raise important questions regarding whether the NSA's warrantless wiretapping program (pdf summary of evidence), disclosed by whistleblower Mark Klein and implemented by AT&T and other telecoms, violates the Fourth Amendment to the U.S. Constitution. The full text of the Klein declaration and redacted exhibits are publicly available (pdf). ... The Klein evidence establishes that AT&T cut into the fiber optic cables in San Francisco to route a complete copy of internet and phone traffic to the 'SG3' secure room operated by the NSA. The trial court dismissed the Hepting lawsuit (pdf order) based on the 2008 Congressional grant of immunity to telecoms. Similarly, the trial court in Jewel dismissed (pdf order) the lawsuit against the government agencies and officials based on the state secrets privilege. Both cases were argued together before the same panel of judges. The audio of the oral argument will be available after noon PDT [17:00 GMT] today."

Hitting the front page for the first time, AngryDeuce writes with a piece of exciting news hot off the news wire. From the article: "The Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices. The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint since it was announced in March." The DOJ has released a full statement on their decision to file the antitrust suit, and AT&T has drafted a response. So much for AT&T's paltry promise of bringing 5000 unskilled call center jobs back to the U.S. if the merger were approved. Competition may yet live!