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May 3, 2006 10:53 AM PDT

FCC approves Net-wiretapping taxes

Last modified: May 3, 2006 1:11 PM PDT

WASHINGTON--Broadband providers and Internet phone companies will have to pick up the tab for the cost of building in mandatory wiretap access for police surveillance, federal regulators ruled Wednesday.

The Federal Communications Commission voted unanimously to levy what likely will amount to wiretapping taxes on companies, municipalities and universities, saying it would create an incentive for them to keep costs down and that it was necessary to fight the war on terror. Universities have estimated their cost to be about $7 billion.

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"The first obligation is...the safety of the people," said FCC Commissioner Michael Copps, a Democrat. "This commission supports efforts to protect the public safety and homeland security of the United States and its people."

Federal police agencies have spent years lobbying for mandatory backdoors for easy surveillance, saying "criminals, terrorists and spies" could cloak their Internet communications with impunity unless centralized wiretapping hubs become mandatory. Last year, the FCC set a deadline of May 14, 2007, for compliance. But universities, libraries and some technology companies have filed suit against the agency, and arguments before a federal court are scheduled for Friday.

"We're going to have a lot of fights over cost reimbursement," Al Gidari, a partner at the law firm of Perkins Coie, who is co-counsel in the lawsuit, said in an interview after the vote. "It continues the lunacy of their prior order and confirms they've learned nothing from what's been filed" in the lawsuit, he said.

The original 1994 law, called the Communications Assistance for Law Enforcement Act, or CALEA, authorized $500 million to pay telecommunications carriers for the cost of upgrading their networks to facilitate wiretapping. Some broadband and voice over Internet Protocol (VoIP) providers had hoped that they'd be reimbursed as well.

Jonathan Askin, general counsel of Pulver.com, likened Wednesday's vote to earlier FCC rules extending 911 regulations to VoIP. "It essentially imposed a mandate on the industry without giving the industry the necessary support to abide by the rules--and the same thing seems to be happening here," Askin said.

Even without the CALEA regulations, police have the legal authority to conduct Internet wiretaps--that's precisely what the FBI's Carnivore system was designed to do. Still, the FBI has argued, the need for "standardized broadband intercept capabilities is especially urgent in light of today's heightened threats to homeland security and the ongoing tendency of criminals to use the most clandestine modes of communication."

The American Council on Education, which represents 1,800 colleges and universities, estimates that the costs of CALEA compliance could total roughly $7 billion for the entire higher-education community, or a tuition hike of $450 for every student in the nation. Documents filed in the lawsuit challenging the FCC's rules put the cost at hundreds of dollars per student.

But during Wednesday's vote, commissioners dismissed those concerns as unfounded. "I am not persuaded merely by largely speculative allegations that the financial burden on the higher-education community could total billions of dollars," said FCC Commissioner Deborah Taylor Tate, a Republican.

The FCC's initial ruling last fall had left open the question of whether broadband and VoIP providers would be reimbursed for rewiring their networks and upgrading equipment to comply with CALEA.

See more CNET content tagged:
CALEA, FCC Commissioner, university, vote, broadband

Add a Comment (Log in or register) 48 comments (Showing first 20 comments)
wait...
by Amazingant May 3, 2006 11:34 AM PDT
So, the ISPs are going to give the government money so they can start watching what I?m doing? Am I missing something here or are they trying to mess with the privacy of US citizens and make the big companies pay for it?
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What a good idea...
by umbrae May 3, 2006 11:37 AM PDT
Lets open HUGE privacy holes in broadband access, so idiot FBI agents can wiretap on us without issue. Who cares that everyday hackers will take advantage of this more than the government.

And, of course, end users are fee to pick up the tab as well.
Reply to this comment View all 2 replies
Remember J. Edgar
by Pete Bardo May 3, 2006 12:03 PM PDT
Our government is doing everything they can to make sure our rights as citizens do not extend to the internet. They take one right, one freedom at a time, little by little, until it's all gone.

Welcome to the new world.
Reply to this comment
So much for the Internet Privacy Act.
by mstrhypno May 3, 2006 12:21 PM PDT
It will take the hacker community about twenty minutes to figure
out how to use this gaping hole in internet security.

Thanks, once again, to legislators who are completely clueless
as to how technology functions and wouldn't know the 7-step
model from a 12-step program, our rights as citizens to be
protected from intrusion into our private lives has, once again,
been removed.

Who says reincarnation isn't a fact? Joe McCarthy lives on in the
FCC!

Lee Darrow, C.H.
Chicago, IL
Reply to this comment
Copps out!
by zanzzz May 3, 2006 12:38 PM PDT
"The first obligation is...the safety of the people,". That is the mindset of most politicians post 9/11. The problem is with safety first liberty is last. Democracy is risky business and always will be. The spineless wonders we have elected prove time again their eagerness to trade freedom for the illusion of security. At least these unelected FCC officials are consistent; producing one profoundly misguided ruling after another. Do these bozos really believe wiretapping a voip will catch any terrorists? Clearly most have a higher level of sophistication than openly chatting about operations on a phone or in an unencrypted email. What these government actions amount to in reality is the systematic establishment of a big brother data mining and monitoring apparatus. It seems rather redundant as the NSA has it already in place! I guess those guys don't share with the FBI and police hence the need for a duplicate system.
Reply to this comment
Your Government Your friend
by lazarus_vendetta May 3, 2006 2:01 PM PDT
"If all Americans want is security, they can go to prison, they will have enough to eat, a bed and a roof over thier heads" - Dwight D. Eisenhower 12-8-49. This is so redicoulous. Ever since 9/11 more and more of our freedoms have been taken away. All in the name of "terroism". They can use this excuse to take all our rights, and people will still back them. Its sad really. Maybe we should just call the FBI on three way, it would make it easier for them. "Those who trade their freedoms for security deserve and will reserve niether." Benjamen Franklin.
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Lame
by Timmmay May 3, 2006 2:04 PM PDT
Those who give up essential liberties for temporary safety deserve neither liberty nor safety. - Ben Franklin
Reply to this comment
limiting choose
by p.shearer May 3, 2006 2:39 PM PDT
Argggg! it would appear that my only two political chooses are now between fascists or socialists. One wishes to deprive me of financial freedom; the other my personal freedom.
Reply to this comment
1st obligation is the Constitution
by dboy69 May 3, 2006 2:53 PM PDT
Sure seems like the first obligation should be to the constitution.
Reportedly they already have the ability to enable wiretapping...
If US citizens continue to abrogate their rights, we have no one to blame but ourselves. Write and/or call your representatives and let them know this is unacceptable.
Reply to this comment
Sadly
by heystoopid May 3, 2006 3:04 PM PDT
Sadly, we have totally forgotten the reason for the "Boston Tea Party"!

And now , we have to pay an extra impost to allow big brother to bug us all in daily life, truly amazing!, what's next, burn the constitution?

Oh well, there is always the ballot box?, for even a simple ficus tree can do a far better job, then the current house majority!(it can't fall asleep, and is too wooden, to take bribes or free lunches, from the corporate sector!)

Taxes, arbitrarily imposed without representation, are truly evil!!!!!!
Reply to this comment
Protect me from my government
by jacksons98 May 3, 2006 3:17 PM PDT
"The first obligation is...the safety of the people," said FCC Commissioner Michael Copp. I'm more concerned about our own government than I am about terrorists. Almost daily I read an article like this about how taking our rights away is because they care for our safety. I'll take my chances thank you
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THE FCC Doesn't Have the Authority
by PzkwVIb May 3, 2006 4:11 PM PDT
to do this. They are grossly overstepping their purview. This moronic Agency keeps grabbing for more power and more control. They definitely have no rights to setup backdoors in private data networks.
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I can do that too.
by ajbright May 3, 2006 5:19 PM PDT
Everyone should jump in the air repeatedly, whilst at the same time flapping your arms like a bird at least three times a day.

If you don't the governments ability to fight terrorism will be severely restricted.

It's a well known fact that terrorists are fat (actually one of the terrorists on a cliche'd Chuck Norris movie was fat, and as such provides a clear link between the loss of 50s style exercise programs and 9/11) so if obese America drops a few lbs we will be able to implicate all remaining fat people as terrorists.

Not working for you?

Well then unfortunately, and although we recognise every American's right to religious freedom, this should not be mistaken as an excuse to for everyone to forget to carry a Bible on their persons at all times.

It is a well known fact that if a member of Al Quaeda was to even touch an official US Jesus Manual he would burst into flames.

Remember that while you have the right to religious freedom, this should not excuse your patriotic duty to be a Christian. In our revisionist version of the Constitution, not only does the President have the right to overall all levels of Government, but religious freedom is simply a reference to each American's duty to forsake Godless paganism.
Reply to this comment
Red Alert - communist, bird flu carrying, terrorists will increase taxes
by ajbright May 3, 2006 5:59 PM PDT
The White House has finally admitted that there is something worse to fear than terrorists.

Apparently they have identified a clear link between Bird Flu and Al Quaeda, and are holding meetings at the highest level to decide how to use the invasion of Iraq to explain why tax cuts and placing wire taps on all Americans phone lines will prevent the next pandemic.

Clearly the only way to combat this threat is the unrestricted ability of the NSA to record each and every American's phone sex conversations, not too mention the suspicious increase in the use of the internet to purchase unChristian reading material or worse, booking a vacation in Al Quaeda's closest Ally - France.

The most important thing to remember is that the desire for privacy is clearly a subversive tendancy, and any such people the express such a desire should clearly be watched at all times.

Remember "Nothing to Hide, Nothing to Fear".

Next on the President's agenda, auto-voting. To circumvent immigrant voter fraud, all valid citizens should sign up for auto-votes immediately.

You will be allocated your Republican Voter Registration Identity Number, and your local Republican Senator will cast your vote for you.

This will prevent not only voter error, which nearly proved catestrophic in the 2000 election, and without timely intervention of the Supreme Court could have resulted in a non-Republican party approved president being elected.

Whilst we wouldn't want you to stop being in fear of terrorism, at least we can comfort you with the knowledge that terrorists will not hijack your vote.
Reply to this comment
More people should use encryption
by Mallardd May 3, 2006 6:59 PM PDT
At first it might seem a little paranoid, but
why not just use it? If everyone used it then it
would be commonplace. Perhaps PGP should be
included by default in more software? I know
people who refuse to pay their bills from their
own bank's website out of fear that hackers
might SSL packets. Ironicly those same people
think nothing of handing their credit cards to a
waitress or bartender.

It is not very difficult for even the average
computer user to install and run encryption
software that makes ISP or government snooping
practically impossible. This can easily be done
with email as the technology is very mature, but
unfortunately very few people even bother using
it. Encryption also exists for VOIP and will
probably improve but most likely people will not
use it preferring to complain how "the man" is
able to snoop in on their business.
Reply to this comment View all 2 replies
Constitution worthless says Bush
by FTCnet May 3, 2006 7:05 PM PDT
?Mr. President,? one aide in the meeting said. ?There is a valid case that the provisions in this law undermine the Constitution.?

?Stop throwing the Constitution in my face,? Bush screamed back. ?It?s just a ********* piece of paper!?

?I?ve talked to three people present for the meeting that day and they all confirm that the President of the United States called the Constitution ?a ********* piece of paper.?? Thompson adds. (Doug Thompson - Capitol Hill Blue)
Reply to this comment
Treason...
by Had_to_be_said May 3, 2006 9:18 PM PDT
Only an IDIOT...

...Would accept being able to spy-on, track, and record everything that every single American-citizen does, in the name of "...catching terrorists, and [other] criminals".

...And, only a TRAITOR would seriously propose it.

Once, the U.S. government decided that it no longer had to obey "The U.S. Constitution", the Law, ...or "...the will of the people..." it gave up every right to call itself a legitimate-government.

Let me put this more bluntly...

Those currently in control of the United States are nothing more than heavily-armed CRIMINALS, who have ILLEGALLY seized control of our nation. And, they clearly have no qualms about using ANY force necessary to completely control "...the people", solely for the benefit of a powerful few.

I just hope I can get my children out of the country before the shooting starts.
Reply to this comment
screw the police
by 03296 May 3, 2006 10:11 PM PDT
and screw the federales and screw georgie porgie. we all know
what really needs to happen
Reply to this comment
screw the police
by 03296 May 3, 2006 10:11 PM PDT
and screw the federales and screw georgie porgie. we all know
what really needs to happen
Reply to this comment
screw the police
by 03296 May 3, 2006 10:11 PM PDT
and screw the federales and screw georgie porgie.
Reply to this comment
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