This is an introduction and background for my new multi-part research series on diagnosing the root causes of the Financial Crisis.

In another example of how many have overstated that the U.S. is falling behind the world in broadband, the OECD ranks the U.S. #1 in broadband Internet access to schools, with 97% of all American primary and secondary schools having broadband Internet access per the latest OECD data.

• A tip of the hat to Rob Atkinson of ITIF for publicly surfacing this interesting  factoid at Randy May's Free State Foundation forum last Friday on "Broadband Nation: Where does the U.S. really rank in the broadband rankings?"

This data suggests that lack of broadband access may not a major reason why American students test lower than students in many OECD countries.

For more data and studies on why the U.S. is not falling behind the world on broadband click here.

A scan of the major comments just delivered to the FCC on the National Broadband Plan (which is due to Congress February 2010), spotlighted the big broadband policy "fork-in-the-road" decision that the FCC now has before it.

Increasingly the "underground currency" of the Internet is private data.

• Private information is valuable to many Internet businesses, because in the absence of a system where consumers can assert ownership of and control over their privacy, privacy can be taken from them for free and profited from with little to no obligation to, or compensation due, to the affected user/consumer.  
• In effect, the increasing practice of commercializing privacy by publicacy businesses increasingly creates new risks for consumers in return for little to no protection or reward.

Why are private data a de facto "underground currency" on the Internet? Well, most consumers are unaware that they are not in control of their private information. For example, a Consumer Reports 9-25-08 consumer survey found:

• "61% are confident that what they do online is private and not shared without their permission;
• 57% incorrectly believe that companies must identify themselves and indicate why they are collecting data and whether they intend to share it with other organizations;
• 48% incorrectly believe their consent is required for companies to use the personal information they collect from online activities..."   

The current technology-driven, "Swiss cheese" privacy framework may be the worst of all possible worlds. 

The President's Cybersecurity announcement 5-29 was a game changer for the Internet. For the first time the U.S. Government officially declared the lack of cybersecurity as the Internet's biggest problem.

• It is interesting to note there was instant disagreement with the President's assessment from some in the Web 2.0 world. Speakers at the Computers, Freedom, and Privacy conference in Washington this week said (per Washington Internet Daily) that:
  • "Cybersecurity threats in general are wildly overstated or portrayed as malevolent acts when some of the best known incidents have come through accidents or simple security holes."
• I have been writing this now twelve-part series: "The open Internet's growing security problem" since the beginning of the year, precisely because many continue to deny the growing mountain of evidence from mainstream sources that the Internet security problem is getting worse not better. 
• Fortunately, President Obama gets it.

Here is the latest mainstream evidence of the open Internet's growing security problem.

"Mysterious virus strikes FBI" ZDNet

I filed comments today on the FCC's Notice of Inquiry on the FCC's National Broadband Plan, which is required to be delivered to Congress by February 2010.

• I made three main points about the National Broadband Plan; it should:
  • Build upon America's strong foundation of success in developing facilities-based broadband competition in the vast majority of the U.S.;
  • Factor in the latest data which indicates the U.S. is not falling behind in broadband or economic competitiveness; and
  • Elevate cybersecurity as a national priority per the President's recent cybersecurity review.

My two-page comments, with links to several of my research pieces, can be found here.

The press release about my comments can be found here.

Kudos to Saul Hansell for his post at the NY Times Bits Blog which ably spotlights the growing clash between those who publicly advocate for more privacy on the web and those who behind-the-scenes are opposed to more privacy on the web. 

• From Hansell's post: "...There is a split, he told the conference, between the typical view of privacy among technology experts and the emerging view of people brought up in the social networking, Web 2.0 world.
• “The Web 2.0 movement is opposed to the privacy movement,” he said. Traditionally, privacy advocates have pushed for a policy of “data minimization,” he argued. ....
• The new ideology revolves around what Mr. Swire called “data empowerment.”

This privacy-publicacy tension that I have been writing about for months -- is obviously very real indeed. 

I coined the term "publicacy" a year ago because the english language did not have an antonym to the word "privacy," and it was clear to me that one would be needed because there was a growing movement that did not believe in online privacy -- even though the vast majority of Internet users expect online privacy -- per Consumer Report's Survey.  

This growing privacy-publicacy tension is very relevant to Hill efforts to pass privacy legislation.

President Obama's new approach to cybersecurity likely is more of an Internet game-changer than many appreciate. Initial reporting and commentary has been superficial and has not connected dots or analyzed the broader logical implications of this new policy emphasis and trajectory.   

Why is it a game-changer for the Internet?

• First, it formalizes a new leading priority for the Internet.
• Second, it formalizes the lack of cybersecurity as the Internet's leading problem.
• Third, it practically redefines what "open Internet" means.
• Fourth, it practically takes any extreme form of net neutrality off the table. 

Moreover, the new cybersecurity focus will likely have a practical effect on the trajectory of Internet 3.0, which embodies:

• Cloud computing (where security has not been a primary priority by many);
• The Mobile web (where security has always been a very high priority); and
• The Internet of Things (where security will be imperative to prevent theft, intrusion, and sabotage).

I.   Cybersecurity -- New #1 Internet Priority

In a significant blow to U.S. advocates of Government-mandated open access networks -- over facilities-based broadband network competition -- the European Commission (EC) just declared "no need for State intervention" in geographic zones where there are at least two facilities-based broadband network competitors, because that means "there is no market failure."

Google's public policy blog said a new Wired article by Steven Levy is "a must-read for policymakers who want to understand online advertising." 

First, I agree; there is a lot to learn from the article.