“Google is using its Android mobile operating system as a ‘Trojan Horse’ to deceive partners, monopolize the mobile marketplace, and control consumer data,” said Thomas Vinje, Brussels-based counsel to the FairSearch coalition. “We are asking the Commission to move quickly and decisively to protect competition and innovation in this critical market. Failure to act will only embolden Google to repeat its desktop abuses of dominance as consumers increasingly turn to a mobile platform dominated by Google’s Android operating system.”

[....] Google achieved its dominance in the smartphone operating system market by giving Android to device-makers for ‘free.’

• call activity
• phone book directory information
• stored voicemails and text messages
• photos and videos
• apps
• eight different passwords
• 659 geolocation points, including 227 cell towers and 403 WiFi networks with which the cell phone had previously connected.

Before the age of smartphones, it was impossible for police to gather this much private information about a person's communications, historical movements, and private life during an arrest. Our pockets and bags simply aren't big enough to carry paper records revealing that much data. We would have never carried around several years' worth of correspondence, for example—but today, five-year-old emails are just a few clicks away using the smartphone in your pocket. The fact that we now carry this much private, sensitive information around with us means that the government is able to get this information, too.

The type of data stored on a smartphone can paint a near-complete picture of even the most private details of someone's personal life. Call history, voicemails, text messages and photographs can provide a catalogue of how—and with whom—a person spends his or her time, exposing everything from intimate photographs to 2 AM text messages. Web browsing history may include Google searches for Alcoholics Anonymous or local gay bars. Apps can expose what you’re reading and listening to. Location information might uncover a visit to an abortion clinic, a political protest, or a psychiatrist.

Last week, Unwired Planet, a patent licensing company that once upon a time was an Internet services company called Openwave, announced a deal to acquire a portfolio of 2,185 U.S. and international patents and patents pending from Ericsson.

The company said the deal “significantly broaden[s] Unwired Planet’s Mobile Internet-focused portfolio,” including 753 U.S. issued patents related to 2G, 3G and LTE technologies. Ericsson will also contribute 100 additional patent annually to Unwired Planet from 2014 through 2018. Terms call for Unwired Planet to compensate Ericsson with certain ongoing rights in future revenues generated from the enlarged patent portfolio. Unwired Planet will also grant Ericsson a license to the Company’s enlarged patent portfolio.

Unwired Planet CEO Mike Mulica said in a statement that his company looks forward to “leveraging a strong, multi-dimensional patent portfolio and furthering discussions with key industry players who are interested in licensing these inventions to protect and further build their product strategies.”

Speaking to analysts, AT&T's chief strategy officer John Stankey yesterday acknowledged the company is now well-positioned on the spectrum front -- even before the company starts moving on their new plan to use WCS spectrum for LTE deployment.

"Even under ideal circumstances, getting new spectrum on the market in the next five to seven years is aggressive," Stankey said. "But what we do know is that AT&T is well-positioned now...These deals give us confidence that we can meet our LTE objectives for next two years and they will allow us to deliver competitive performance."

The full academic paper "PlaceRaider: Virtual Theft in Physical Spaces with Smartphones" (pdf) makes for fascinating reading, even if it doesn't seem to understand the difference between "theft" and "surveillance". It includes the following rather fanciful description of how this 3D-spying capability might be used. It's rather over the top, but it gives an idea of what's theoretically possible:

Alice does not know that her Android phone is running a service, PlaceRaider, that records photos surreptitiously, along with orientation and acceleration sensor data. After on-board analysis, her phone parses the collected images and extracts those that seem to contain valuable information about her environment. At opportune moments, her phone discretely transmits a package of images to a remote PlaceRaider command and control server.

Upon receiving Alice's images, the PlaceRaider command and control server runs a computer vision algorithm to generate a rich 3D model. This model allows Mallory, the remote attacker, to immerse herself easily in Alice's environment. The fidelity of the model allows Mallory to see Alice's calendar, items on her desk surface and the layout of the room. Knowing that the desktop surface might yield valuable information, Mallory zooms into the images that generated the desktop and quickly finds a check that yields Alice's account and routing numbers along with her identity and home address. This provides immediate value. She also sees the wall calendar, noticing the dates that the family will be out of town, and ponders asking an associate who lives nearby to 'visit' the house while the family is away and 'borrow'; the iMac that Mallory sees in Alice's office.

Not long after the Google announcement, we reported that property search engine Nestoria was jumping ship to OpenStreetMap. Then, in March, news began to spread that Apple was making a strong push to move away from Google Maps data on the iOS platform. FourSquare also abruptly switched. Now the exodus is continuing, with Wikipedia announcing that the latest versions of its mobile apps for iOS and Android have also ditched Google Maps for OpenStreetMap:

Previous versions of our application used Google Maps for the nearby view. This has now been replaced with OpenStreetMap - an open and free source of Map Data that has been referred to as ‘Wikipedia for Maps.’ This closely aligns with our goal of making knowledge available in a free and open manner to everyone. This also means we no longer have to use proprietary Google APIs in our code, which helps it run on the millions of cheap Android handsets that are purely open source and do not have the proprietary Google applications.

One wonders how Google didn't see this coming—or if they did, what exactly their strategy is here. OpenStreetMap is gaining a lot of momentum, and in some areas even features much better data. The real lesson here is that there's never an incumbent that isn't at risk of being unseated, no matter how widespread the adoption of their product or service—especially if they make an anti-customer decision like Google when it put a price tag on Maps. The situation also points to the long-term strength of open solutions: while a crowdsourced system like OpenStreetMap never could have put together a global mapping product as quickly as Google did, over time it has become a serious competitor in terms of both quality and convenience. Indeed, none of the companies that have switched pointed to the price as their number one reason—potentially superior quality, and the desire to support open data, are generally listed as significant factors. Location-based tools are a rapidly growing field, and by failing to stay ahead of their more open competitors (while becoming less open themselves), Google may have sacrificed their role as a crucial engine driving such services.

Eckhart followed up by posting part two of his research, demonstrating some of his findings on video. Considerable discussion of that demonstration ensued, for example here and here and here. Some critics of Eckhart's research have opined that it's overblown or not rigorous enough. But further analysis and commentary suggests that the problem could well be worse than we currently know. Stephen Wicker of Cornell University has explored some of the implications, and his comments seem especially apropos given that Carrier IQ has publicly admitted holding a treasure trove of data. Dan Rosenberg has done further in-depth research on the detailed workings of Carrier IQ, leading to rather a lot of discussion about Carrier IQ's capabilities -- there's some disagreement among researchers over what Carrier IQ is doing versus what it could be doing, e.g.: Is Carrier IQ's Data-Logging Phone Software Helpful or a Hacker's Goldmine?

Meanwhile, the scandal grew, questions were raised about whether it violated federal wiretap laws, a least one US Senator noticed, and Carrier IQ issued an inept press release. Phone vendors and carriers have been begun backing away from Carrier IQ as quickly as possible; there were denials from Verizon and Apple . T-Mobile has posted internal and external quick guides about Carrier IQ. Some of the denials were more credible than others. There has been some skepticism about Carrier IQ's statements, given their own marketing claims and the non-answers to some questions. There's also been discussion about the claims made in Carrier IQ's patent.

Then the lawsuits started, see Hagens Berman and Sianna & Straite and 8 companies hit with lawsuit for some details on three of them.

Attempts to figure out which phones are infected with Carrier IQ are ongoing. For example, the Google Nexus Android phones and original Xoom tablet seem to not be infected, nor do phones used on UK-based mobile networks, but traces of are present in some versions of iOS, although their function isn't entirely clear. A preliminary/beta application that tries to detect it is now available. Methods for removing it have been discussed.

Meanhile, A Freedom of Information Act request's response has indicated (per the FBI) that Carrier IQ files have been used for "law enforcement purposes", but Carrier IQ has denied this. And there seems to be a growing realization that all of this has somehow become standard practice; as Dennis Fisher astutely observes, With Mobile Devices, Users Are the Product, Not the Buyer.

Those are the details; now what about the implications?

Debate continues about whether Carrier's IQ is a rootkit and/or spyware. Some have observed that if it's a rootkit, it's a rather poorly-concealed one. But it's been made unkillable, and it harvests keystrokes -- two properties most often associated with malicious software. And there's no question that Carrier IQ really did attempt to suppress Eckhart's publication of his findings.

But even if we grant, for the purpose of argument, that it's not a rootkit and not spyware, it still has an impact on the aggregate system security of the phone: it provides a good deal of pre-existing functionality that any attacker can leverage. In other words, intruding malware doesn't need to implement the vast array of functions that Carrier IQ already has; it just has to activate and tap into them.

Which brings me to a set of questions that probably should have been publicly debated and answered before software like this was installed on an estimated 150 million phones. I'm not talking about the questions that involve the details of Carrier IQ -- because I think we'll get answers to those from researchers and from legal proceedings. I'm talking about larger questions that apply to all phones -- indeed, to all mobile devices -- such as:

• What kind of debugging or performance-monitoring software should be included?
• Who should be responsible for that software's installation? Its maintenance?
• Should the source code for that software be published so that we can all see exactly what it does?
• Should device owners be allowed to turn it off/deinstall it -- or, should they be asked for permission to install it/turn it on?
• Will carriers or manufacturers pay the bandwidth charges for users whose devices transmit this data?
• Should carriers or manufacturers pay phone owners for access to the device owners' data?
• Where's the dividing line between performance-measuring data that can be used to assess and improve services, and personal data? Is there such a dividing line?
• Will data transmission be encrypted? How?
• Will data be anonymized or stripped or otherwise made less personally-identifiable? Will this be done before or after transmission or both? Will this process be full-documented and available for public review?
• What data will be sent -- and will device owners be able to exert some fine-grained control over what and when?
• Who is is responsible for the security of the data gathered?
• Who will have access to that data?
• When will that data be destroyed?
• Who will be accountable if/when security on the data repository is breached?
• What are the privacy implications of such a large collection of diverse data?
• Will it be available to law enforcement agencies? (Actually, I think I can answer that one: "yes". I think it's a given that any such collection of data will be targeted for acquisition by every law enforcement agency in every country. Some of them are bound to get it. See "FBI", above, for a case in point.)

Lots of questions, I know. Perhaps I could summarize that list by asking these three instead: (1) Who owns your mobile device? (2) Who owns the software installed on your mobile device? and (3) Who owns your data?

Carrier IQ is used to understand what problems customers are having with our network or devices so we can take action to improve service quality.

It collects enough information to understand the customer experience with devices on our network and how to devise solutions to use and connection problems. We do not and cannot look at the contents of messages, photos, videos, etc., using this tool

For Microsoft to complain is pretty rich, of course. Here it is, using patents to attack companies employing Android in an attempt to slow down the uptake of that rival to its own Windows Phone smartphone system. That's a clear abuse of the patent system to dissuade companies from signing up with a competitor (which, interestingly, it doesn't attack directly), rather than to protect real innovation (an aim that was thrown out of the patent system long ago.)

After all, those deeply innovative ideas that Microsoft is claiming that companies are infringing include “natural ways of interacting with devices by tabbing through various screens to find the information they need, surfing the Web more quickly, and interacting with documents and e-books”. Tabbed screens - yeah, right.

And yet when there is the prospect that Google might be able to threaten in exactly the same way, by pulling existing licences - not, admittedly, a very nice thing to do, but all's fair etc. etc. - Microsoft suddenly wants the government to intervene to protect it from this bullying.

I mean, let's be consistent here: if you want to abuse the patent system, expect to be on the receiving end of similar abuse. On the other hand, rather more laudably, why not stop abusing, in which case you can take the moral high ground when others start abusing the system to attack you?

"Browsing means looking at websites and checking email, but not watching videos, downloading files or playing games. We've got a fair use policy but ours means that you'll always be able to browse the internet, it's only when you go over the fair use amount that you won't be able to download, stream and watch video clips."

Usage-based pricing may be more fair. The top 6 percent of smart phone users are consuming half of all data. The vast majority of customers, 99 percent according to the 60,000 phone bills that Nielsen collects and analyzes every month as part of their Customer Value Metrics product, are better off with a pricing scheme like AT&T's new data pricing model than under flat-rate pricing where they are paying for much more than they ever use.

While many people are applauding AT&T's new data pricing plans as money savers for light users today -- they're not looking at tomorrow's big picture. One, Nielsen ignores the fact that carriers are now making data plans mandatory for smartphone users who previously only used Wi-Fi. That's not "more fair," nor does it save money. Nielsen takes the stance that light users somehow need to be "educated" into consuming more data -- yet many of those users simply prefer to use their device's Wi-Fi functionality alone. That's no longer possible.

Two, the average user already consumes 298MB of data -- while AT&T's base cap is 200 MB. That cap's set just low enough to push today's average user to the higher, $25 a month tier (plus overages, ETFs, an endless assortment of fees). That average is going to quickly skyrocket and the heavy user of today will become the average user of tomorrow -- yet instead of having the option of a simple, unlimited data tier at a fair price -- they'll face heavy and often confusing overages just as smartphones begin seeing interesting video service integration (Netflix, Hulu). That's not about saving money, it's about making money.

Again, incumbent wireless companies are not in the business of making less money, and this new media meme that a shift to low caps and high overages is about saving consumers money, or fairness, or helping minorities -- is simply absurd. If telecom analysts want to analyze -- they should be noting that carriers and investors see the death of SMS and voice minutes heading their direction -- and are changing pricing models to compensate and cash in on an explosion in wireless video (or streaming wireless audio) use. But the suggestion that this shift is driven by altruism is bizarre and disingenuous.

When I was a kid in the 1960s and we came back from a visit to my grandmother's, my mother used to call my grandmother, let the phone ring twice, and then hang up. It was important for my grandmother to know that we'd arrived home safely, but long-distance telephone calls were too expensive to indulge in unnecessarily. When I entered Vanderbilt University in 1971, my parents had to decide whether to pay for a telephone in my dorm room. They decided to do so, but most of the thoroughly upper-middle-class students on my floor did not have phones. Phones cost real money back then. Then came the breakup of the AT&T monopoly in 1984. Phone technology and competitive service provision exploded. In 1982, Motorola produced the first portable mobile phone. It weighed about 2 pounds and cost $3995. Within a very few years they were much smaller, much cheaper, and selling like hotcakes.

Today there are some 4.6 billion mobile phones in the world, and counting, or about 67 per every 100 people in the world. The newer ones allow you to carry in your hand more computing power than the computers that put Apollo 11 on the moon.  You can cruise the internet, find your location with GPS, read books, send texts, pay bills, process credit cards, watch video, record video, stream video to the web, take and send photos -- oh, and make phone calls from just about anywhere. Unimaginable just a few years ago.

And in case you were wondering, my favorite .mobi site, flowers.mobi -- you remember, the one that was purchased for $200,000 in 2006 and was supposed to be developed into a legit site with "relevant content" -- is still just a parked domain with ads. And it's still not compliant with .mobi's rules for its sites. Big surprise there.

1. Very, very, very few apps make very much money. We've been suggesting this for a while, and the numbers seem to support it: there really isn't that much money being made directly on selling apps, even on the iPhone. Sure, lots of apps may be selling in aggregate, but very few individual apps make very much money.
2. Apps are still loss leader/low-margin leaders for hardware makers, and they know it. Sure, Apple wants app developers to be happy, but first and foremost it wants to sell more hardware, which is where it makes its money. And it knows as well as anyone that the more powerful the device is, the more reasons there are to buy the hardware. That means the hardware makers actually have incentive to push the price of apps down (or encourage free apps). This pressure will only get stronger over time.
3. Apps can be copied too. This is the one that seems the most obvious to me, but seems to get very little attention from those who believe totally in the app revolution. Apps are still digital files and they can (and are) copied regularly. Thinking that putting everything into an app is an easy response by itself to unauthorized copying is a bit short-sighted.
4. Future standards will break down some walls. While it won't happen that fast, and probably won't happen in all areas where apps exist, things like HTML 5 will certainly break down the walled gardens found on various app stores. Yes, native apps give a better user experience for now, but web standards will get better and better and allow more to be done via the web, totally bypassing any app gatekeeper (and paywall), just like Google did with Google Voice on the iPhone. We've seen this before. The desktop used to be ruled by client-side apps, and then lots of those apps went (or are in the process of going) web-based.
5. App overload. While there is a group of folks who constantly get new apps, an awful lot of people get a few apps, get themselves comfortable and then never go back to buy another app. There are really only so many apps most people need, and once they have them, there's little reason to keep getting more.