Glenn Fleishman writes "T-Mobile sent me the text of a lawsuit they filed yesterday against Starbucks. The telecom firm alleges that Starbucks didn't involve it in any discussions to launch their free loyalty program Wi-Fi service this week with AT&T. AT&T is gradually taking over hot-spot operation from T-Mobile, market by market over the course of 2008. T-Mobile told me Starbucks is essentially giving away something that isn't theirs. T-Mobile has sued to halt the two-hours-a-day of free service, and is asking for money to cover losses. This might sound like sour grapes, but T-Mobile still operates most of the network, and says that the terms to which they agreed with Starbucks and AT&T for the transition and with AT&T for bilateral roaming don't cover this situation at all. Maybe free access in exchange for buying a cup of joe every 30 days was too good to be true (this soon)."

Wired is running a story about AT&T's chief technical officer, John Donovan. He contrasts his view of BitTorrent and P2P in general against the controversial policies adopted by other ISPs. Donovan also explains why AT&T is considering usage-based pricing, citing the cost of network upgrades which only affect a small number of users. AT&T is expected to test the new pricing scheme later this year, which should give them plenty of time to see how Time Warner's customers respond to the idea. "'I don't view any of our customers, under any circumstances, as pirates -- I view them as users,' Donovan said. 'A heavy user is not a bad customer.' What he wants to do is gently encourage more efficient usage of his network, and usage-based pricing may be one of the ways that happens. Such measures may not even be necessary, as Donovan admits that users self-adjust their habits to take advantage of off-peak times. For instance, he said, BitTorrent on the company's network peaks around 4 a.m., when other traffic is at an ebb. Overall P2P traffic accounts for about 20 percent of the network's usage, Donovan said."

betaville points out comments AT&T filed with the FCC in which they denied throttling traffic by resetting P2P file-sharing connections. Earlier this week, a study published by the Vuze team found AT&T to have the 25th highest (13th highest if extra Comcast networks are excluded) median reset rate among the sampled networks. In the past, AT&T has defended Comcast's throttling practices, and said it wants to monitor its network traffic for IP violations. "AT&T vice president of Internet and network systems research Charles Kalmanek, in a letter addressed to Vuze CEO Gilles BianRosa, said that peer-to-peer resets can arise from numerous local network events, including outages, attacks, reconfigurations or overall trends in Internet usage. 'AT&T does not use "false reset messages" to manage its network,' Kalmanek said in the letter. Kalmanek noted that Vuze's analysis said the test 'cannot conclude definitively that any particular network operator is engaging in artificial or false [reset] packet behavior.'"

Joe Kauzlarich writes "In 2006, the on-line movie rental store Netflix proposed a $1 million prize to whomever could write a movie recommendation algorithm that offered a ten percent improvement over their own. As of this writing, the intriguingly-named Gravity and Dinosaurs team holds first place by a slim margin of .07 percent over BellKor, their algorithm an 8.82 percent improvement on the Netflix benchmark. So, the question remains, how do they write these so-called recommendation algorithms? A new O'Reilly book gives us a thorough introduction to the basics of this and similar lucrative sciences." Keep reading for the rest of Joe's review.

Donut hole hole writes "AT&T and Comcast are using recent successful P2P trials to argue to the FCC that there's no need for strong traffic management or net neutrality rules. 'Comcast's statement, filed with the FCC on April 9th, hails an announcement by P2P developer Pando Networks that its experiments with P4P technology on a wide variety of U.S. broadband networks have boosted delivery speeds by up to 235 percent. This news, Comcast vice president Kathryn A. Zachem wrote to the Commission, "provides further proof that policymakers have been right to rely on marketplace forces, rather than government regulation, to govern the evolution of Internet services."' Looks like Comcast only likes P2P technology when it can be used to serve its political and regulatory agenda."

An anonymous reader writes "2Wire manufactures DSL modems and routers for AT&T and other major carriers. Their devices suffer from a DNS redirection vulnerability that can be used as part of a variety of attacks, including phishing, identity theft, and denial of service. This exploit was publicly reported more than eight months ago and applies to nearly all 2Wire firmware revisions. The exploit itself is trivial to implement, requiring the attacker only to embed a specially crafted URL into a Web site or email. User interaction is not required, as the URL may be embedded as an image that loads automatically with the requested content. The 2Wire exploit bypasses any password set on the modem/router and is being actively exploited in the wild. AT&T has been deploying 2Wire DSL modems and router/gateways for years, so there exists a large vulnerable installed base. So far, AT&T/2Wire haven't done anything about this exploit." Update: 04/09 17:48 GMT by KD : AT&T spokesman Seth Bloom sends word that AT&T has not been ignoring the problem. According to Bloom: "The majority of our customers did not have gateways affected by this vulnerability. For those that did, as soon as we became aware of the issue, we expeditiously implemented a permanent solution to close the vulnerability. In fact, we've already updated the majority of affected 2Wire gateways, and we're nearing completion of the process. We've received no reports of any significant threats targeting our customers."

An anonymous reader writes "Nearly a year after all the fanfare unveiling a new touchscreen tabletop interface, Microsoft's Surface computer will finally appear in select AT&T stores later this month. Popular Mechanics tech editor Glenn Derene, who first introduced us to Surface in May, seems to have done a complete 180 in this rant, blasting Microsoft for being more obsessed with Surface's novelty as a magnet for image-conscious partners while messing up a rare hardware device — and, surprisingly, the simple software he was told came with it. From Microsoft's official excuse in the article: 'It's actually been a good thing for us,' Pete Thompson, Microsoft's general manager for Surface, told me. 'We were anticipating that the initial deployments were going to be showcase pilots using our own software applications on units to drive traffic. What our partners have decided is that they want to skip that stage and go to an integrated experience where they build their own applications. That's pulled the timeline until this spring.'"

An anonymous reader writes "An unnamed U.S. wireless carrier maintains an unfiltered, unmonitored DS-3 line from its internal network to a facility in Quantico, Virginia, according to Babak Pasdar, a computer security consultant who did work for the company in 2003. Customer voice calls, billing records, location information and data traffic are all allegedly exposed. A similar claim was leveled against Verizon Wireless in a 2006 lawsuit."

stoolpigeon writes "Ars reports that Starbucks is replacing T-Mobile with AT&T as their Wi-Fi provider. AT&T broadband customers will be able to access the service for free. Starbucks card users will get 2 hours a day free. 2-hour, daily, and monthly rates will be lower than they were with T-Mobile. Starbucks says that their previously announced deal to tie in with iTunes will continue under AT&T. For now AT&T isn't offering free Wi-Fi to iPhone users, but says it expects to accommodate them soon. Quoting the article: 'The companies didn't specify exactly when the rollout would begin, only saying that it would take place this spring... [The company plans] to install all new equipment at Starbucks as part of this agreement, so the changeover won't be as simple as flipping a switch.'"

mooseman93 wrote to point out Forbes is suggesting that if you haven't purchased an iPhone yet, you may want to wait just a little bit longer. Supposedly the next generation of iPhone will offer some substantial upgrades, including 3G capabilities. "To be sure, a 3G iPhone likely won't pop up over the next several weeks. The Unofficial Apple Weblog reported this week that Apple is hiring a television production firm in preparation for a high-profile late February announcement. That event, however, will likely detail the widely anticipated release of a software developer's kit for Apple's iPhone and iPod Touch. But the wait can't drag on much longer. AT&T is building out its high-speed wireless network as quickly as it can, announcing Wednesday that it will expand its 3G wireless broadband service to more than 80 additional cities by the end of the year for a total of roughly 350 markets."

This week the US Patent and Trademark Office issued a surprisingly (although I guess it shouldn't be) broad patent for a "mobile entertainment and communication device". Upon closer inspection you may notice that it pretty much outlines the ubiquitous smartphone concept. "It's a patent for a mobile phone with removable storage, an internet connection, a camera and the ability to download audio or video files. The patent holding firm who has the rights to this patent wasted no time at all. At 12:01am Tuesday morning, it filed three separate lawsuits against just about everyone you can think of, including Apple, Nokia, RIM, Sprint, ATT, HP, Motorola, Helio, HTC, Sony Ericsson, UTStarcomm, Samsung and a bunch of others. Amusingly, the company actually first filed the lawsuits on Monday, but realized it was jumping the gun and pulled them, only to refile just past the stroke of midnight. "

dratcw writes "With the continuing writers' strike cutting way back on the number of new and original TV shows available, many media Web sites are providing alternatives to TV that can be found on the Web. A number of sites are offering features describing broadcast/cable TV alternatives while you wait for that next episode of 'Chuck'. 'What better time than during the writers' strike to (re)discover Internet TV and video? The quantity, quality, and diversity of online video grows by the day; and though it's far from perfect, it is at least interesting enough to make you forget that you're watching it on a PC monitor.'" Any web-based favorites you'd like to point out for fellow commenters?

Ponca City, We Love You writes "Tim Wu has an interesting (and funny) article on Slate that says that AT&T's recent proposal to examine all the traffic it carries for potential violations of US intellectual property laws is not just bad but corporate seppuku bad. At present AT&T is shielded by a federal law they wrote themselves that provides they have no liability for 'Transitory Digital Network Communications' — content AT&T carries over the Internet. To maintain that immunity, AT&T must transmit data 'without selection of the material by the service provider' and 'without modification of its content' but if AT&T gets into the business of choosing what content travels over its network, it runs the serious risk of losing its all-important immunity. 'As the world's largest gatekeeper,' Wu writes, 'AT&T would immediately become the world's largest target for copyright infringement lawsuits.' ATT's new strategy 'exposes it to so much potential liability that adopting it would arguably violate AT&T's fiduciary duty to its shareholders,' concludes Wu."

fermion writes "Wired asserts that the iPhone blew up the wireless industry. This article argues that because Apple demanded the opportunity to control their own phone, and ATT née Cingular agreed, other companies are opening up the networks, and Google now has the opportunity to make Android a reality. There are other tidbits. Allegedly Verizon turned Jobs down without even listening to his pitch, a decision they may well regret now that they are hemorrhaging customers. Also, that Motorola and the networks were responsible for the fiasco dubbed the ROKR, something which I believe given how damaged the American version of the RAZR was compared to international version. It also estimates that the iPhone cost upward of $150 million to design, and earns Apple about $200 profit per phone."

Dr. Zarkov writes "At a CES forum, representatives of AT&T and other ISPs discussed the need to filter traffic at the network level, to stop the transfer of copyrighted material. An AT&T spokesman said they 'would have to handle such network filtering delicately, and do more than just stop an upload dead in its tracks, or send a legalistic cease and desist form letter to a customer. "We've got to figure out a friendly way to do it, there's no doubt about it," he said.'"

oahazmatt writes "According to MarketWatch, AT&T said that its pay phones will be phased out over the next year. A company spokeswoman declined to say how much revenue its pay-phone business generated, but the number is small and declining. 'The first public pay-telephone station was set up in 1878, just two years after Alexander Graham Bell invented the talking device. The first coin-operated pay phone was installed in Hartford, Conn., in 1889. For decades after the pay phone's invention, many Americans relied on them because of the expense and difficulty in obtaining reliable home service. Only after World War II did the telephone become a household necessity.'"

Ponca City, We Love You writes "There's some interesting speculation from Cringley on why AT&T chief executive Randall Stephenson let drop that a new version of Apple's iPhone will be introduced in 2008. The announcement is sure to cut into Apple's Christmas sales and could also cost ATT a million new customers and at least $1 billion in market cap, says Cringley. 'It is no coincidence that Stephenson made his remarks in Silicon Valley, rather than in San Antonio or New York,' says Cringley. 'He came to the turf of his 'partner' and delivered a message that will hurt Apple as much as AT&T, a message that says AT&T doesn't really need Apple despite the iPhone's success.' What may be troubling the relationship between AT&T and Apple is the upcoming auction for 700-MHz wireless spectrum and AT&T's discovery that Apple may be joining Google in bidding."

bednarz writes "AT&T is requiring thousands of employees who work from their homes to return to traditional office environments, sources say. 'It is a serious effort to reel in the telework people,' says the Telework Coalition's Chuck Wilsker, who has heard that as many as 10,000 or 12,000 full-time teleworkers may be affected. One AT&T employee says rumors have been circulating since AT&T's merger with SBC that the new upper management is not supportive of teleworking: 'We'd heard rumors to that effect, and all of a sudden we got marching orders to go back to an office.'"

Filtered Coward writes "Last summer, AT&T announced its intention to begin filtering copyrighted content at some point. The telecom has now bought a chunk of Vobile, whose core product is VideoDNA. "Like other systems of its kind, VideoDNA develops a unique signature from every frame of video. The signature is meant to be robust enough to survive various transformations and edits, and it can then be used to run matches against incoming content.' Vobile claims that VideoDNA is good enough to be used on video when transmitted over a network. 'Based on the complexity of the problem, we suspect that anything initially deployed by AT&T will fall far short of a robust P2P video filter. But should AT&T truly have its eyes on just such a prize, the company would be in a powerful position to impose its own policies on the entire US, since it owns major parts of the Internet backbone.'"

Ponca City, We Love You writes "In October 2006, Netflix, the online movie rental service, announced that it would award $1 million to the first team to improve the accuracy of Netflix's movie recommendations by 10% based on personal preferences. Each contestant was given a set of data from which three million predictions were made about how certain users rated certain movies and Netflix compared that list with the actual ratings and generated a score for each team. More than 27,000 contestants from 161 countries submitted their entries and some got close, but not close enough. Today Netflix announced that it is awarding an annual progress prize of $50,000 to a group of researchers at AT&T Labs, who improved the current recommendation system by 8.43 percent but the $1 million grand prize is still up for grabs and a $50,000 progress prize will be awarded every year until the 10 percent goal is met. As part of the rules of the competition, the team was required to disclose their solution publicly. (pdf)"