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As Cyber-Attacks Grow, So Do Defenses

Craig Kuhl, Contributing Writer — Mon, 18 Jul 2016 12:00:00 +0000

Few companies in the cable and telecommunications industries have escaped the cyber attacks that continue to wreak havoc on just about every layer of the supply chain.

Varying degrees of security breaches at Comcast, Cox Communications, Time Warner Cable and other cable providers have raised the red flag in the cybersecurity space and prompted a new mantra: Now is the time to raise the level of security.

“A fundamental evolution is taking place and the security implications are numerous,” Michela Menting, research director at consulting firm ABI Research, said. “Above all are the issues raised by the transition to all-[Internet protocol] networks, which are already highly exploited by threat actors and will be a boon for malicious cyber-agents — and all sectors are vulnerable.

“Investment in security services and corresponding hardware and software is not something they can ignore or put off , except at great cost to their services, reputation and client base,” she said.

Cybersecurity concerns have become so paramount that in its Charter Communications-Time Warner Cable merger order, the Federal Communications Commission required Charter to submit a plan to manage its increasing security risks during the transition.

And according to the Hewlett Packard Enterprise/Ponemon Institue “2015 Cost of Cyber Crime” study, hacking attacks cost U.S. firms, on average, some $15.4 million a year. Globally, U.K. insurance firm Lloyds estimates that cyber-attacks are costing businesses a staggering $400 billion a year.

There’s also the shaken confidence of clients and subscribers about the safety of their data. And not everyone is convinced the cable industry is prepared for any attacks.

“Cable networks are archaic in many respects, as they extend the life of existing systems, and frankly, the security posture of networks and the less time spent on security leads to a lot of holes,” Chris Simkins, CEO and co-founder of supply chain analysis and risk management firm Chain Security, said.

PricewaterhouseCoopers (PwC), a consultancy moving deeper into the cybersecurity space, believes cable companies are getting the message that shoring up their networks should be of the highest priority.

“There’s a lot going on with MSOs and we’re seeing the awareness lev el rising,” Mark Lobel, a principal in PwC’s U.S. advisory practice and Cybersecurity Technology, Information, Communications & Entertainment leader, said. “But cybersecurity is like a chess game with no kings, and trying to stay ahead of who’s across the board.”

And just who is across the board?

“There are many threat vectors,” Irfan Saif, a principal in Deloitte’s Cyber Risk Services practice, said. “There are service-disruption actors, those looking at the backbone to propagate malware and those who want to compromise customers. It’s a broad range of threat actors and companies must be cognizant of them all.”

That will require a holistic approach, Saif noted. “You must understand what behavior is considered normal and what indicates a threat of attack and what are the crown jewels that require higher-grade protection.”

Cisco Systems, another player in the cybersecurity space, concurred with Saif’s assessment.

“The best approach is a holistic look at security and where each layer builds on top of each other — firewalls, advanced malware protection, email and core technologies like conditional access, DRM and anti-piracy technology — a breadth of security,” Cisco senior product and solutions marketing manager Sam Rastogi said.

Another less glamorous threat, but just as dangerous, comes from the inside.

“Employees or vendors with access to information is a growing concern,” Rastogi sad. “Who’s accessing information and how, and is there abnormal activity? A risk-based program with alerts, authentication measures and more will give companies more insight.”

CableLabs, the cable industry’s research and development consortium, is accelerating its cybersecurity activity with two initiatives: It’s working with the Wi-Fi Alliance to ensure links to hotspot access points are secure, and it’s reaching more deeply into home managed access points.

“The level of engagement is very high and there are real questions being asked,” The mindset is changing,” CableLabs principal security architect Steve Goeringer said.

That’s a good thing, said Rick Michaels, CEO of CEA, a cable industry-focused investment bank. “It’s one thing that cable is carrying 60% of the Internet traffic, but now there are data centers and multiple services with different touch points in cable. Cybersecurity should be of paramount interest to the cable industry.”

Most cable companies are understandably reluctant to discuss their cyber security strategies. Comcast, which in March hired Noopur Davis as senior vice president of product security and privacy, offered a statement from Myrna Soto, senior vice president and global chief information security officer: “We’ve committed extensive resources with a focus on risk management and built resilient and smarter networks with many security layers that are monitored continuously. Using automation, tooling and analytics is key.”

Arris, another key equipment supplier to cable networks, said in a statement (in part): “Security remains a top priority at Arris, as it does for all manufacturers of Internet and network-connected devices” and that it “employs a variety of protective measures to help ensure the safe and reliable operation of our devices including, but not limited to, DOCSIS compliance, vulnerability scanning, and monitoring programs.” It works “actively with security organizations and our service provider customers to identify and quickly resolve any potential vulnerabilities to protect the subscribers who use our CPE devices.”

Breaches cut across both residential and business markets, added Sander Smith, president of Sericon Technology.

“It’s clear that very soon we’ll see consumers filling their home networks with IoT devices, and these devices will be rushed to market with very little thought given to security.”

Yet even with the increase in cyber attacks (PwC reported a 38% increase in 2015 vs. 2014), there is cautious optimism that with emerging cybersecurity innovations, an expanding community of cybersecurity companies and a heightened awareness among service providers, security is being strengthened.

“We’re seeing various levels of maturity in cable and telecom and a raising of awareness in those organizations,” PwC’s Lobel said. “But they can’t lose focus.”

The National Cable & Telecommuications Association is focusing its cybersecurity attention on two areas, senior vice president, science and technology and chief technology officer Bill Check said.

“We are leading the industry’s Cybersecurity Working Group and working with the FCC’s Communications Security, Reliability and Interoperability Council (CSRIC), along with various cybersecurity-related working groups,” he said. “The challenge is to anticipate current and future threats and design systems of early detection and resistance, because cyber-criminals will always look for new exploits.”

CEA's New Middle Name Is ‘Technology’

garyarlen@gmail.com (Gary Arlen) — Tue, 10 Nov 2015 23:30:00 +0000

The Consumer Electronics Association (CEA) has morphed into the Consumer Technology Association (CTA), unveiling its new name during a preview of its benchmark Las Vegas trade show. The group's January extravaganza will still be called CES. CTA's members ratified the new name at their annual membership meeting held during the group's Innovate! conference in New York City this week.

It is not yet clear how or if the shift in focus will affect CTA's lobbying positions, which have often conflicted with policies embraced by broadcasters, cable operators and telephone companies on issues ranging from digital TV transition timetables to network neutrality. At the New York meeting this week, CTA also unveiled its "Disruptive Innovation Council," which will focus on "messages to lawmakers, regulators and the general public."

The new Council will "provide support and advocacy to help innovative companies that are disrupting traditional business models and empowering consumers navigate market and policy challenges."

CTA says that the term "electronics ... no longer captures the breadth of the consumer tech industry" and that the new name "more accurately represents its members, many of whom are non-hardware innovators including BMW, Expedia, Ford, Google, Lyft, Netflix, Pandora, Snapchat, Starz, Uber, WebMD, Yelp and Twentieth Century Fox." (It conveniently avoided the fact that BMW, Ford and others actually do manufacture "hardware," although they are increasingly developers and integrators of system and software technology.)

“Innovation and expansion are hallmarks of the consumer technology industry and our association – and as our industry changes, so must we,” said Gary Shapiro, president and CEO of the Consumer Technology Association. "CTA also better captures our association’s vision, scope of advocacy, current membership base and brand promise.”

CTA represents more than 2,200 technology companies, 80 percent of which are small businesses and startups, others are among the world’s largest companies.

“As the tech sector has evolved at the lightning speed of innovation, we’ve broadened our membership to include new technologies and intersecting industry sectors,” said Dan Pidgeon, Starpower chairman and CTA Executive Board chair. “App and software development, crowd-sourcing technology, content creation, personalized health care, the sharing economy, music streaming services – companies from all of these sectors and more now look to us as the public voice of industry, a champion for innovation and source of unparalleled market research.”

The name for the CES trade show and conference will not change. CTA said that CES has become "a global brand representing innovation."

CEA's most recent name change came in 1999 when it dropped one word from its previous name, the Consumer Electronics Manufacturers Association. The association began as the Radio Manufacturers Association in 1924, later became the Electronic Industries Association, which included a Consumer Electronics Group.

CTA's new "Disruptive Innovation Council" includes companies such as Google, Uber, Yelp, Expedia, GoPro and Pandora. "Council companies must exhibit a proven success, significant cultural impact and create new markets or solve, or simplify commonly used processes or services," according to the CTA announcements.

“The Internet has enabled nimble, innovative companies to reshape our economic ecosystem," Shapiro explained. "These companies are reinventing legacy markets and creating jobs along with consumer-friendly new opportunities and services."

The new Council's "policy principles" may set it on a collision course with long-standing communications companies and associations, although both sides often espouse similar lofty principles. CTA's principles include:

Innovation should not require government permission.
Intellectual property laws must balance protecting and incentivizing creators to innovate.
Consumer privacy expectations and customized delivery can be achieved with clear disclosure, choice and consent.
Consumers should have the right to share opinions on services and products without concern or fear of retaliation.
Laws should enable innovation, not require perfection.

The Council is opened to CTA members only.

Speaker Ryan Welcomed By D.C. Tech Power Players

john.eggerton@futurenet.com (John Eggerton) — Thu, 29 Oct 2015 16:45:00 +0000

The election of Paul Ryan (R-Wis.) as the new speaker of the House Thursday (Oct. 29) drew immediate response from communications tech industry players.

Consumer Electronics Association President Gary Shapiro welcomed the chairman, but has some "asks" as well.

"We congratulate Speaker Ryan. He can help grow our economy by advancing policies that promote our nation's leadership in technological innovation," Shapiro said in a statement. "We encourage Speaker Ryan to work with House members to prioritize legislation that will encourage innovation, entrepreneurship and a vibrant free-market system."

"Specifically,," he said, "we urge action and legislation restricting patent trolls, encouraging free trade, investing in infrastructure, allowing online taxation to equalize the playing field for brick-and-mortar retailers, reducing the national debt and expanding wireless broadband."

“On behalf of TechNet, I congratulate Congressman Paul Ryan on becoming Speaker of the House,” said TechNet President Linda Moore. “Congressman Ryan is a thoughtful, dedicated public servant who is committed to solving the very real challenges facing our nation.”

Moore also had some suggested priorities for the new speaker, including "international tax reform, free trade, patent reform, and high-skilled immigration reform."

"Over his tenure on Capitol Hill, Congressman Ryan has a proven track record of taking on important policy issues, and looking for principled, pragmatic, and lasting solutions," said Michael Timmeny, head of government and Community relations for Cisco.

Fred Upton (R-Mich.), chairman of the House Energy & Commerce Committee that oversees communications, added his congratulations.

“We will have a steady hand at the tiller with the selection of Paul Ryan to lead the people’s House today,” Upton said. “I appreciate Paul’s commitment to advancing solutions in a thoughtful and deliberate way and know we will get to work quickly to address pressing issues that present both challenges and opportunities...."

Re-Create Coalition Formed to Promote 'Balanced' Copyright

john.eggerton@futurenet.com (John Eggerton) — Tue, 28 Apr 2015 13:45:00 +0000

Fair use fans have formed a new coalition, Re-Create, to advocate for "balanced" copyright laws, which means ones that do not "encroach" on creativity and speech by being overly protective of those copyrights.

Coalition members include the Consumer Electronics Association, the Computer & Communications Industry Association and the American Library Association.

Other members of the group include the Association of Research Libraries, Center for Democracy & Technology, Electronic Frontier Foundation, Media Democracy Fund, New America's Open Technology Institute, Public Knowledge and the R Street Institute.

"We and the other members of the Re-Create coalition want to make sure that our laws account for these realities of today's connected environment, and help bring a pre-VCR regime into a post-Meerkat world," said Sherwin Siy, VP of legal affairs at Public Knowledge.

The copyright regime issue could heat up in Congress this session.

Sen. Ron Wyden (D-Ore.) and Rep. Jared Polis (D-Colo.) have introduced a bill that would expand the exemptions for the Digital Millennium Copyright Act (DMCA) prohibitions on technological protection measures (TCMs).

DMCA bars circumvention of protection for digital content to prevent it from being stolen and copied, but the legislators, backed by fair use fans, argue the law is outdated and the prohibitions impede research, journalism, the repair and maintenance of personal devices and freedom of expression.

They also argue the "protections" can impede the creation of accessible versions of e-books for the blind.

Wyden also this month introduced the 'The Bipartisan Congressional Trade Priorities and Accountability Act of 2015' to make sure that intellectual property rights are protected in trade agreements.

CEA Survey Says: Broadcast, Not Streaming, Super Bowl Champ

john.eggerton@futurenet.com (John Eggerton) — Sat, 31 Jan 2015 02:30:00 +0000

NBC's free stream notwithstanding, broadcast TV remains the Super Bowl venue of choice for those without a ticket to the Big Game.

According to a Consumer Electronics Association survey of the 79% of only adults who say they plan to watch the game, 71% say they will watch it live on TV, while only 5% say they will watch live online--NBC will stream the game live for free online.

Between those two percentages are a variety of viewing options for following the game: 8% say they will watch clips or highlights on broadcast TV; another 8% will follow via social media posts--Twitter, Facebook; 6% will watch online clips; 5% will follow news about the game online; 5% will DVR it for later viewing.

And among that same group, watching the game actually tops watching the ads: 46% say their favorite part of the game is, well the game; 36% favor the commercials; 9% say their favorite part of the game is food; 8% says it is the halftime show and the camaraderie of watching with friends.

CEA, EOBC, Seek More Time For Incentive Auction Comments

john.eggerton@futurenet.com (John Eggerton) — Mon, 29 Dec 2014 16:45:00 +0000

The Consumer Electronics Association, CTIA: The Wireless Association, and the Telecommunications Industry Association have asked the FCC for a 30-day extension on the comment deadlines for incentive auction procedures.

Currently the deadline is Jan. 30 for initial comments and Feb. 27 for replies.

They argue that will give them more time for subject matter experts to examine the "novel" issues raised by the two-sided broadcast incentive auction, which everyone is in general agreements represents the most complicated auction the FCC has ever undertaken.

Some of those experts, it points out, are currently involved in the still-ongoing AWS-3 spectrum auction, which is on holiday break until the first of the year.

CEA Study Adds Fuel to Power Consumption Brouhaha

garyarlen@gmail.com (Gary Arlen) — Tue, 24 Jun 2014 20:30:00 +0000

And you wonder why customers are confused!?

The Consumer Electronics Association issued a 158-page "Energy Consumption of Consumer Electronics in U.S. Homes" report on Monday, declaring that residential electricity consumption for consumer electronics devices is down 9% since 2010. Deep into the report are data showing that cable TV set top boxes consume 128 kilowatt hours (kWh/y) per year, compared to standalone STBs (such as Roku, Apple TV or other devices), which drink just over one-third that amount of juice: 45 kWh/y Satellite and telco STBs require about 16% less energy than the cable boxes, according to this study.

What makes the CEA study most interesting is that it comes barely a week after the kerfuffle started last week when the Los Angeles Times published a "power hog" story entitled "Cable TV boxes become 2nd biggest energy users in many homes," after air conditioning equipment.

The National Cable and Telecommunications Association responded quickly with a blog on Friday: "LA Times Gets it Wrong on Cable Box Energy Efficiency", citing cable industry projects to reduce power consumption. NCTA even cites the "forthcoming" CEA study and points readers to a CEA blog , also posted on Friday, by CEA VP-Technology Policy Doug Johnson, who dissed the newspaper report but said CEA "welcome[s] the growing public dialog on this topic."

While the kind words between NCTA and CEA are pleasant, the looming issue remains sizeable. For example, the report cites STB variables, such as DVRs, multi-room video servers and High Definition capability, that affect energy consumption. As Americans rely more on digital devices for entertainment and information, electric consumption is a costly part of the equation. The CEA study, conducted the Fraunhofer Center for Sustainable Energy Systems demonstrates the scale of the power problem. Both organizations acknowledge they are participating in several projects seeking to curtail electricity consumption in their environments.

Yet the CEA/Fraunhofer study underscores the scale and challenges. On the efficiency side, the report says that CE devices represent about 12% of total residential energy consumption. Within that segment, TV sets account for 30%, STBs 18%, computers 13%. Overall, U.S. households used nearly 3.8 billion CE devices in 46 technology categories, consuming 169 terawatt hours during 2013. By comparison, in 2010, when CEA conducted a similar survey, there were 2.9 billion devices in 35 categories using 193 terawatt hours per year - hence the electrical usage drop.

Beyond STBs, cable ecosystems products identified in the study include Internet access tools such as Integrated Access Devices, cable modems and routers. The study also lists videogame consoles - which are often used for online access and come in right after STBs for their large energy thirst.

Overall, the study also offers evidence for why some cable operators see a synergisticopportunity in getting into the electricity distribution business themselves. In particular, the fast-growing category of mobile/wireless devices. Keeping tablets and smartphone charged provides a tantalizing segment of the AEC (Annual Electrical Consumption), as described in the CEA report.

The collegial stances of NCTA and CEA regarding the L.A. Times' allegations are commendable. Yet, there's always the prospect that the Fraunhofer Center's analyses will show up in future policy discussions in a less friendly forum. The report is laden with data and field reports that can easily be adapted in finger-pointing claims about conservation commitments and the value of specific devices. Indeed, the study provides a powerful cornucopia of usage data for everyone in future discussions.

Whatever triggered the LA Times story last week (my guess is that it was some misinterpretation of a leaked version of the Fraunhofer Center's report or just a noisy politician's platform), the issue has now come front and center. The heavily annotated report with its heavy-duty math equations to show usage methodology offers plenty of ammunition for all sides in upcoming policy reviews.

So STB power is not confusing just for customers and subscribers (if they're interested in such an arcane topic).

It's also mind-bending for industry planners and regulatory decision-makers.

CEA: Unlicensed Provides $62B Boost To Economy Annually

john.eggerton@futurenet.com (John Eggerton) — Mon, 16 Jun 2014 15:45:00 +0000

The Consumer Electronics Association said Monday that unlicensed spectrum generate $62 billion annually to the U.S. economy, led by WiFI in and outside the home.

The report, Unlicensed Spectrum and the American Economy, comes as the government is freeing up more unlicensed spectrum, with cable operators standing to benefit.

According to CEA, WiFi and wireless LANs account for almost a third ($20.029 billion of that 62 Billion total).

CEA based the study on sales estimates from "over 40 categories of devices or services using unlicensed spectrum," then attributed a price based on the "incremental" value of unlicensed features, for example not attributing the entire retail price of a smart phone given it other, non-licensed spectrum, uses for storage or as a media player, or for accessing LTE.

CEA said its study also "properly isolates unlicensed uses in those devices with mixed licensed and unlicensed features, and avoids over-counting of devices and sales."

Exclusive: CEA Says TV Set Still Video Viewer of Choice

john.eggerton@futurenet.com (John Eggerton) — Thu, 05 Jun 2014 12:00:00 +0000

TV remains the "key" viewer for video in U.S. homes, but that video is increasingly coming from the 'net, which is taking some toll on traditional distribution.

That is one of the conclusions of a new market research analysis being released today by the Consumer Electronics Association.

Multichannel News received an early copy of the report, which found that 45% of TV households reported getting some programming on their TV's via the Internet (from a Netflix or Hulu, for example), up from 2013's 28%.

Nearly half of TV households (46%) also watched video on a portable computer (laptop, notebook or netbook), up from 38% in 2013, or on a smartphone (43%, up from 33% in 2013), or on either a tablet (35%, up from 26% in 2013) or a desktop computer (34%, up from 30% in 2013).

Consumers who said they receive Internet-based programming are also doing so on other devices, including gaming consoles (50%), Blu-ray players (405) and a service such as Apple TV or Roku (33%).

But Internet-only viewers are still a small fraction at 5%, about the same as 2013.

That number could be growing. CEA says that according to figures as of January 2014, 24% of all households had an Internet-enabled TV, with 16.1 million app-enabled TV's projected to ship this year.

The vast majority of U.S. households (93%) have used TVs to access video in the past 12 months. Traditional TV programming is primarily accessed through a pay-TV service, with cable claiming half-52%--of that subscriber base with 60 million subs, down from 63 million in 2013.

Satellite services boast 36 million households (31%), up from 35 million in 2013. Fiber to the home video services account for 14% or 16 million subs, up 33% from 12 million in 2013.

Seventeen percent of TV households receive television programming through an antenna, with only 6% relying exclusively on an antenna for their TV, in line with 2013 findings.

CEA says there has been a seven percentage point decline in the number of homes using traditional pay-TV platforms since 2010, when 88% of households said they subscribed to cable, satellite or fiber to the home. And since 2005, said CEA, cable service subs have declined from 61% to 52% in 2014. Even with the increases over that time for fiber and satellite, total paid subs are still down. "The decline in traditional pay TV service may be partially attributed to increasingly accessible Internet sourced television programming on TVs as well as the adoption and use of alternative video-capable CE devices in homes," said the report. "Inexpensive streaming options, such as Netflix and Hulu Plus, are also contributing to the overall decline."

The numbers appear to bear that out. Over the past 12 months, in homes not subscribing to pay TV, "non-subscriber use of notebook, laptop or netbook computers to view video content increased from a quarter (25%) in 2013 to over half (53%) in 2014. Use of smartphones for in-home video consumption increased among non-subscribers from 27% in 2013 to 46% this year, and 27% of non-subscribers now view video content on tablets compared to just 13% in 2013."

The CEA report found that 10% of pay TV households currently subscribing to cable, satellite or fiber video services said they were "likely" to cut that cord in the next 12 months. Of those, 23% said they were going the all-Internet route, with 20% saying they would be getting an antenna and 17% said they were swearing off video entirely.

The report is based on findings of a telephone survey of 1,006 adults, 504 men and 502 women 18 and older, living in the continental United States. The survey was conducted April 24-27, 2014, with 606 landline interviews and 400 by cell phone.

The margin of error at 95% confidence is +/- 3.1%.