Comcast CEO Brian Roberts shed more light this morning on why Comcast invested $1.5 billion in the new Sprint-Clearwire WiMax venture, saying that he was dazzled by a 50-Mph trial run of Clearwire's WiMax service that he and fellow investors took before they plunked their money down. Speaking at a Sanford Bernstein conference (webcast) Roberts said "we went on some test drives that were very exciting and three-way video conference calls were happening and it was astonishing...we were able to watch live video at 50 miles per hour."
The new venture, which will be called Clearwire, "is an unprecedented opportunity," Roberts said, adding that "a lot of smart people are convinced that this will work."
Not only is the technology impressive, but the structure of the deal is also very appealing to Comcast. Comcast gets a "founder's deal" that gives the operator a wholesale relationship with Clearwire. Comcast will not be actively involved in running the show, deferring, instead, to Clearwire's management team. "One thing I will say is that we are experts at joint ventures," Roberts said. "We can safely say that what works best is not have management by committee."
The fact that Comcast and the other cable partners (Time Warner and Brighthouse Networks) will have a roaming deal with Sprint for telephony combined with the participation of Google sealed the deal. "Having Google there and the innovation capabilities of Google...and a roaming deal out of the box, there was no other opportunity that was quite as elegant."
Posted by Cynthia Brumfield at 12:39 PM | Print | Comments (0)Update: Wired reports an interview with the hackers that brought down Comcast. If the two teens who claim responsibility for the attack are legit, the motivation behind the Comcast hack was just, well, hatred for Comcast in general and not a statement about the company's P2P policies.
I came across two seemingly unrelated items this morning about nasty hacker attacks. The first is this post at TorrentFreak discussing a malicious hack of Comcast's home page. For a period of time, the hackers appear to have changed the Comcast DNS/WHOIS records to point at a non-Comcast page, resulting in customer misdirection to a non-sensical page and sparking fears that customers' user names and passwords were being filched.
The second item is this excellent explanation by Revision3's Jim Louderback about his company's Memorial Day weekend outage. Revision3 was brought down by a denial-of-service attack by digital media entertainment company ArtistDirect, which runs an anti-P2P technology subsidiary called MediaDefender.
As it turns out, these two attacks possibly share a common root cause: the BitTorrent P2P protocol (not BitTorrent the company). And they should both serve as object lessons about the risks that companies face when they try to mess with P2P content distribution.
Regarding the Comcast outage, TorrentFreak speculates that Comcast got hacked because the top cable operator has throttled and continues to throttle BitTorrent and other P2P protocols as part of its network management procedures. (Comcast has vowed to switch to a protocol-agnostic management system by the end of this year.)
There's no denying, however, that Revision3's DOS attack was directly related to the BitTorrent protocol. The company traced the attack to MediaDefender's servers. Not only did MediaDefender's interim CEO Dimitri Villard and VP of Operations Ben Grodsky admit that their company was responsible for the attack, but MediaDefender had also copped to injecting a broad array of tracking torrents into Revision3's servers for months.
Why would MediaDefender do this and for whom? Well, Revision3 uses the BitTorrent protocol for legitimately sharing large files, including its own music and HD-quality video. MediaDefender gets paid to disrupt P2P networks, counting Sony, Universal Music, the RIAA and the MPAA among its clients.
Louderback doesn't know who was paying MediaDefender to track his company's P2P network or whether the attack was intentional. MediaDefender says that the DOS attack was a mistake, a result of a vulnerability created when Revision3 rejiggered its server.
He does know that the authorities will get to the bottom of this. "Was it malicious? Intentional? Negligent? Spoofed? I can’t say. But what I do know is that the FBI is looking into the matter," Louderback wrote.
Here's what I conclude from both seemingly unrelated attacks: any big company or industry group, whether it's Comcast or Sony or the MPAA, that tries to block or mess with P2P protocols could find themselves in a vicious cycle of payback. Comcast has already learned this lesson the hard way, through the public condemnation of its network management practices and now through a possible revenge-motivated hacker attack. And you can be certain that neither ArtistDirect nor its presumably entertainment industry clients are going to welcome the FBI's investigation.
Posted by Cynthia Brumfield at 11:41 AM | Print | Comments (1)
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