Tag Archives: request

Feds Drop Second Big iPhone Encryption Case Against Apple

For the second time in recent weeks, the Department of Justice has dropped a legal bid to force Apple ( AAPL ) to unlock an iPhone in a criminal investigation. The DOJ said late Friday that it no longer needs Apple’s assistance to unlock an iPhone used by a New York drug dealer, because the phone’s owner provided the passcode. Just last week, Apple asked a U.S. district court judge to dismiss the case, saying the government had failed to demonstrate that it had exhausted all other options before demanding the company’s help, the Wall Street Journal reported . On March 28, the DOJ withdrew its demand that Apple help it hack an iPhone belonging to one of the shooters in the San Bernardino, Calif., massacre. The FBI reportedly paid an unidentified third party more than $1 million to unlock the iPhone. Apple has fought government attempts to get it to weaken its smartphone security, saying that would create vulnerabilities that could be exploited by criminals and hackers. The company says it is increasing security on its devices to protect users’ personal data, including financial and health information. The FBI and law enforcement officials are worried that criminals will use the built-in security on smartphones like the iPhone and software apps to “go dark.” They have found sympathetic members of Congress, including Sens. Richard Burr, R-N.C., and Dianne Feinstein, D-Calif. Burr and Feinstein have proposed legislation called the “Compliance With Court Orders Act of 2016.” As drafted, the legislation would require any individual or company to comply with any U.S. court order and hand over data to authorities, including data that is encrypted. The bill has been roundly criticized by civil liberties and digital privacy groups.

Dish, Verizon Spectrum Talks Might Heat Up By Q4, Says Citi

Negotiations between Dish Network ( DISH ) and Verizon Communications ( VZ ) over a radio spectrum sale might heat up after an ongoing government auction of airwaves is over, said Citigroup, which on Monday added the satellite TV broadcaster to its “focus list” of stocks. The Federal Communications Commission in late March began its Broadcast Incentive Auction of airwaves owned by local TV stations. The complex auction is expected to drag on until Q4, says Citigroup. Dish Network, meanwhile, has amassed some 77 MHz of radio spectrum, spending some $15 billion in the process, according to Citi’s estimate. Dish, however, lacks a wireless partner to deliver mobile video services. Citigroup maintains a price target of 94 on Dish stock. Shares in Dish have dropped over 30% since June, to near 50. Dish stock was up 1% in morning trading in the stock market today . Citigroup expects results of the current auction to reinforce the valuation of Dish’s airwaves. “Our target price values (Dish’s) spectrum at $36 billion, or roughly $1.78 per MHz-pop, less than the $2.09 per MHz-pop we believe Verizon would be willing to pay,” said the Citigroup report. “MHz per pop” refers to the spectrum available in a specific market. Citigroup analyst Jason Bazinet says Dish is more likely to sell, rather than “operationalize,” its spectrum by building out a wireless network. Wireless competition has intensified among AT&T ( T ), Verizon, T-Mobile US ( TMUS ) and Sprint ( S ). “Carriers that have filed to participate in the TV auction — like Dish and Verizon — cannot pursue M&A while the auction is underway,” wrote Bazinet. “But, they can enter M&A discussions after the auction ends. Since we expect the auction to end in Q4 2016, we expect the Street to ascribe some sort of M&A likelihood into their valuation calculus for Dish.”

Akamai Q1: Media Revenue Seen Down But Security Services Up

Akamai Technologies ‘ ( AKAM ) revenue from media and entertainment customers such as Apple ( AAPL ) and Facebook ( FB ) is expected to fall in Q1, but analysts expect a boost from the Internet infrastructure company’s move into security services. Cambridge, Mass.-based Akamai, the biggest provider of content delivery network services, is set to report Q1 earnings after the close Tuesday. Akamai’s global CDN helps Apple, Facebook and other speed up video streaming, e-commerce transactions and business software downloads over the Internet. Apple, though, is among the big tech companies that has been developing its own CDN, while also using other CDN providers. Mark Mahaney, analyst at RBC Capital , is modelling a 3.5% year-over-year decline in sales for Akamai’s media and entertainment business but a 15% rise in cloud-security revenue. “We are looking for $207 million, or a 3.5%  (media segment) decline, as two of the company’s largest media customers (likely Apple, Facebook) transition off the Akamai platform. The concern over whether additional top media customers will migrate off Akamai remains the most material overhang on the stock,” Mahaney said in a research report. “Security is becoming an increasingly meaningful part of the financial story, accounting for 12% of revenue in 2015. We are modeling 45% year-over-year growth to $79.8 million.” Akamai competes with  Level 3 Communications ( LVLT ), and Limelight Networks ( LLNW ) as well as startups Fastly and CloudFlare. Verizon Communications ( VZ ) ( IBD ), Amazon.com ‘s ( AMZN ) Amazon Web Services,   IBM ( IBM ) and Comcast ( CMCSA ) also are emerging as new rivals in some parts of the CDN market. Analysts polled by Thomson Reuters estimate Q1 EPS of $564 million, up 7% from the year-earlier period. Analysts estimate earnings per share minus items of 63 cents, up 3%. Akamai stock is about even in 2016 but down 32% over the past 12 months. Akamai has a low IBD Composite Rating of 50 out of a possible 99. Akamai stock was down a fraction, near 51, in early trading in the stock market today .