32
The Voice of Technology is a monthly publication of the Northern Virginia Technology Council. www.nvtc.org northern virginia technology council magazine NVTC May/June2004 Wireless Communications the voice of technology

Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Embed Size (px)

Citation preview

Page 1: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

The

Voic

e of

Tec

hnol

ogy

is a

mon

thly

pub

licat

ion

of th

e N

orth

ern

Virg

inia

Tec

hnol

ogy

Cou

ncil.

ww

w.n

vtc.

org

northern virginia technology council magazine

NVTCMay/June2004

WirelessCommunications

the voice of technology

Page 2: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this
Page 3: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 3The Voice of Technology

May/June 2004Vol. 14 No. 4

features

council business

Message from the Board p. 5

Bits-n-Bytes p. 6

NVTC Calendar of Events p. 16

NVTC Hosts Technology Trade Mission to Jordan p. 24Business opportunities bloom for both countries

New Members p. 26

Business Partner Profile: Lee Technologies p. 27

NVTC Foundation News p. 28

NVTC Business Partners

The NVTC IT&T Committee p. 8With or without wires this group is electric!

Wireless Market on the Move p. 10The growth prospects are endless

Telecom Industry Consolidation p. 12At least three factors make this unlikely

Monetizing Wi-Fi Hot Spots p. 14Hotels, McDonalds, now RV parks!

Securing Your Enterprise Wireless LAN p. 20A fundamentally insecure medium poses challenges

Page 4: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this
Page 5: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

wenty years ago I first had the pleasureof being involved with the world ofwireless communications. Theadvancements over this period havebeen remarkable. I recall carryingaround the original cell phones thatweighed 30 lbs., and cost $3,000 and

were packed inside a briefcase! Today they fit comfort-ably in a shirt pocket or purse and provide services thatwere once unimaginable.

During my tenure in wireless, I have seen both theexplosive entrance and drastic demise of titans intelecommunications. Today, I can say that wireless

services are not only here tostay, but will continue to leadthe growth in the telecommu-nications industry. Our ownNorthern Virginia region ishelping orchestrate the pathforward. The region is provid-ing communication tools thatenable consumers, businessesand the public sector to bemore effective in getting thejob done.

The question is …Why will thewireless sector continue to leadthe growth in the telecommu-

nications industry? The answer is quite simple. Thewireless sector was built on and continues to thrive oninnovation.

At Nextel our mantra is – be first, be better and be dif-ferent. This culture has enabled a small Reston,Virginia-based telecommunications company not onlyto survive, but to thrive and grow into a nationwidewireless provider with 17,000 employees. In the firsthalf of 2004 alone, Nextel has produced InternationalDirect Connect (walkie-talkie) service linking theUnited States, Canada, Mexico and others; launched atrial for Nextel Wireless Broadband(TM) service in

Raleigh-Durham, North Carolina (this is expected todeliver untethered Internet access at speeds comparableto DSL for business and residents); expanded pre-paidwireless services (Boost); and commenced the mostprestigious partnership in the sporting world with

NASCAR® .

Competition in the wireless industry has allowed theconsumer to benefit tremendously over the past decade.Examples include the fact that the average wireless billhas decreased 20 percent, while minutes of use contin-ue to rise (up 30 percent just in 2003 versus 2002). Atthe same time, the number of wireless customers hasgrown tenfold since 1993 to 160 million in 2003.

Entrepreneurial spirit is alive and well throughout thewireless world. It is especially evident locally where theNorthern Virginia Technology Council is among thefinest business groups assembled nationwide, consist-ing of top-tier telecommunications and technologyfirms, thinkers, and leaders who collaborate in thename of innovation and advancement.

In closing, the past 20 years have indeed been an amaz-ing ride with highs and lows. However, I am even moreconfident that the best is yet to come. Applicationsfocused on improved wireless productivity tools includ-ing GPS applications, credit card swipe capabilities, andeven the ability to send a walkie-talkie voice message toan email account are currently being deployed. All ofthese remarkable advancements will enable consumers,businesses, and the public sector to reach even greaterheights in the years to come.

Bob JohnsonNVTC Board Member Vice President, National Field Operations, NextelCommunications

May/June 2004 Page 5The Voice of Technology

MESSAGE FROM THE BOARD

T

Page 6: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 6 May/June 2004The Voice of Technology

OFFICERSChairmanSudhakar ShenoyInformation Management [email protected]

Vice ChairmanJohn C. Lee, IV, Lee [email protected]

Vice ChairmanDendy Young, GTSI, [email protected]

PresidentBobbie G. Kilberg, Northern Virginia Technology [email protected]

SecretaryLisa Martin, LeapFrog Solutions [email protected]

TreasurerJonathan Shames, Ernst & [email protected]

General CounselJ. Scott Hommer, III, Venable [email protected]

Public Relations AdvisorDoug Poretz, Qorvis [email protected]

BOARD OF DIRECTORS

Panos Anastassiadis, [email protected]

Greg Baroni, [email protected]

Gabe Battista,Talk [email protected]

Paul Broome, [email protected]

John Burton, Updata [email protected]

Craig Chason, Shaw Pittman [email protected]

Paul Cofoni, CSC, [email protected]

John Engler, [email protected]

Raul Fernandez, [email protected]

C. Michael FerraroTRAINING SOLUTIONS, [email protected]

Dan Gonzalez, Scheer [email protected]

Deepak Hathiramani, Vistronix, [email protected]

Bob Johnson, Nextel [email protected]

L. Kenneth Johnson, [email protected]

Bob KahnCorporation for National ResearchInitiatives, [email protected]

David Karlgaard, PEC [email protected]

Carol Kline, America Online, [email protected]

Bob Korzeniewski, [email protected]

Jim LeBlanc, S&H/LeBlanc International [email protected]

Jim Leto, [email protected]

John Love, AH&T Technology [email protected]

Duffy Mazan, [email protected]

Gary McCollum, Cox [email protected]

TiTi McNeill, [email protected]

John Mendonca, KPMG [email protected]

Caren DeWitt MerrickwebMethods [email protected]

Alan Merten, George Mason [email protected]

Linda Mills, Northrop [email protected]

Donna Morea, [email protected]

Gary Nakamoto, Base [email protected]

Gary Pan, Panacea [email protected]

Alex Pinchev, Red [email protected]

Leslie PlattFoundation for Genetic [email protected]

Todd Rowley, [email protected]

Chris SchroederThe Washington Post [email protected]

Todd Stottlemyer, ITS [email protected]

Lydia Thomas, Mitretek [email protected]

Chairman Emeritus

John Backus, Draper [email protected]

Dan Bannister, [email protected]

Ed H. Bersoff, Greenwich [email protected]

Kathy Clark, [email protected]

Mike A. Daniels, [email protected]

David C. [email protected]

Honorary Members

Peter Jobse, CIT, [email protected]

Senior Advisory

Tom Hicks, Business [email protected]

Stu Johnson, [email protected]

Paul Lombardi, INpower [email protected]

Mario Morino, Morino [email protected]

Len Pomata, [email protected]

Wayne Shelton, [email protected]

Knox Singleton, Inova Health [email protected]

Esther T. SmithQorvis [email protected]

Bob G. TemplinNorthern Virginia Community [email protected]

John Toups, [email protected]

Earle Williams, [email protected]

Bob Wright, Dimensions International [email protected]

BITS + BYTESAdvanced Technology Systems,Inc. (ATS), a developer of informa-tion technology systems and solu-tions, announced that it has beenawarded a five-year, $5.7 millioncontract from the General ServicesAdministration on behalf of the U.S.Law Library of Congress to redesignand host the Global LegalInformation Network (GLIN). GLINwill be an online, multilingual data-base containing laws, judicial deci-sions, legal writings, and legislativerecords originating from countriesin the Americas, Europe, Africa andAsia. ATS partners on the GLIN proj-ect include Verio, BearingPoint,Claraview, DigitalNet, and FastSearch & Transfer (FAST). ATS alsoannounced that it has been award-ed a five-year, $12.25 million con-tract from the Federal DepositInsurance Corporation (FDIC) toprovide software development life-cycle (SDLC) support for FDIC'sDivision of Administration (DOA).www.atsva.com FGM, Inc. hasrelocated its corporate headquar-ters office from Dulles, Virginia, toReston, Virginia. FGM's growth inrecent years necessitated the moveto the 51,800 square foot spaceadjacent to the Dulles Toll Road at12021 Sunset Hills Road, Suite 400,Reston, VA 20190. The move wasalso made in order to be closer to itsgovernment client base, to gainincreased visibility, and to improveaccess to amenities for its approxi-mately 150 employees located inVirginia. www.fgm.com. GlobalInternetworking, Inc. (GII), a facili-ties-neutral telecom carrier,announced that it has created thenew position of Vice President ofGlobal Operations and appointedGary Hale to the new position.Hale is an eleven-year veteran ofthe telecommunications industry.Hale will be responsible for plan-ning the development and opera-tion of all technology within GII andwill be a key participant in settingthe executive direction of the com-pany's technical strategy going for-ward. www.globalinternetwork-ing.com. Virginia is the first statein the nation to adoptStargazerNET ReadyLinks™, aWeb-based solution to help people,families, groups and organizationsbe prepared for any kind of disasteror emergency. These simple-to-usetools are available on the VirginiaDepartment of EmergencyManagement's (VDEM's) Web site atwww.vaemergency.com/prepare/.Virginia residents can set up their

Page 7: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

own secure, personalized place on the Web where they can findinformation and communicate with others in the event of an emer-gency and can create their own personal communications plans.www.stargazerNET.net. Vistronix Inc., an information manage-ment and technology services company, announced that it has beenselected to implement its Web-based Accountability Solution for theDistrict of Columbia Public Schools (DCPS). This solution will be inte-grated with DCPS’ existing system and will include a VocationalEducation Student Information System (SIS) used to capture andmaintain vocational education student level information. Due to thecomprehensive nature of the information data capture, reporting,and analysis mandates of Perkins III, the Vistronix AccountabilitySolution is built on a flexible integration framework using a standardrelational database backend that allows simple and secure access foroutside systems.The Accountability Solution integrated for the DCPSbuilds on accountability solutions already deployed by Vistronix in anumber of states including the Maryland State Department ofEducation (MSDE) and the Arkansas Department of WorkforceEducation (ADWE). www.vistronix.com. Women in Technology, anot for profit organization serving the Washington, D.C., metropoli-tan region with a networking and professional growth environmenthas announced the finalists for the 5th Annual WIT LeadershipAwards which recognize women for their outstanding accomplish-ments. Several finalists in various categories are from NVTC membercompanies, including: Corporate: Catherine Szpindor, VicePresident, Information Technology, Nextel Communications; CeciliaSchallenberger, Project Manager, Six Sigma, Northrop Grumman;and Linda Keene Solomon, Partner, Deloitte Consulting LLP.Entrepreneur: Fran Craig, President & CEO, Unanet; Cynthia H. deLorenzi, Chief Executive Officer, Patriot ComputerGroup/PatriotNet; and Jill Stelfox, President & CEO, Defywire andas WIT Champion: Ellen Quinn, Quality Assurance Manager,Northrop Grumman Information Technology. Winners will beannounced at the event on May 13, 2004, at the Sheraton PremiereTysons Corner.

Bobbie Greene KilbergPresident, NVTC

[email protected]

Susan BakerVice President for Workforce

[email protected]

Christine KallivokasVice President of Operations

[email protected]

Pamela C. DudleyPresident, NVTC Foundation

[email protected]

Josh LeviVice President for Policy

[email protected]

Nancy RollmanVice President of Communications

[email protected]

Randy CislerController

[email protected]

Kristin SeitzExecutive CoordinatorSpecial Assistant to the

[email protected]

Lori Ann Cook SuazoDirector of

Programs and [email protected]

Tia GibbsDirector of Production

and [email protected]

Windy HoneycuttDirector of Committee

and Corporate [email protected]

Jennifer WilliamsDirector of Membership

and [email protected]

Christina AraujoRegistrationCoordinator

[email protected]

David BakerFoundation Assistant

[email protected]

Mike BlackMembership Assistant

[email protected]

Mildred Cooper ElderMarketing and

CommunicationsConsultant

[email protected]

Tarin HeilmanEvents [email protected]

Sandra HendersonWeb Communicationsand Technical [email protected]

Margy HolderGraphic Design

[email protected]

Barbara JohnsonReceptionist /

Administrative [email protected]

Nancy JohnstonEducation-Workforce

[email protected]

Cameron KilbergProject [email protected]

Michele MasonMember Services

[email protected]

Michelle SenglaubTechtopia Marketing &Project Management

[email protected]

Zuzana K. SteenHead of International

Relations Assistant Director of

Workforce [email protected]

Nicole StoneMembership Manager

[email protected]

Linda WilleverAccounting Assistant

[email protected]

The Northern Virginia Technology Council2214 Rock Hill Road, Suite 300, Herndon, VA 20170

(703) 904-7878 / fax: (703) 904-8008www.nvtc.org • hosted by PatriotNet

MissionThe Northern Virginia Technology Council is the membership association for thetechnology community in Northern Virginia. NVTC has more than 1300 membercompanies representing over 170,000 employees. Our membership includes compa-nies from all sectors of the technology industry including information technology,software, Internet, ISPs, telecommunications, biotechnology, bioinformatics, aero-space and nanotechnology, as well as the service providers that support these com-panies. NVTC provides its members with: (1) over 110 networking and educationalevents per year; (2) comprehensive member benefit services; (3) promotion ofNorthern Virginia as a global technology center; (4) public policy advocacy on abroad range of technology issues at the state and regional levels, with involvementin federal issues as they relate to workforce and education concerns; and (5) commu-nity service opportunities through active involvement in community projects andphilanthropy through the NVTC Foundation.

The Voice of Technology is published ten times per year by the Northern VirginiaTechnology Council. It is the official magazine of NVTC. ©Copyright 2003 by NVTC. Allrights reserved. No part of this publication may be reproduced in part or whole with-out the express written consent of NVTC. For reprint information, contact The Voice ofTechnology, 2214 Rock Hill Road, Suite 300, Herndon, VA 20170 fax: (703) 904-8008.With the help of the Columbia Lighthouse for the Blind, the Voice of Technology isnow available in Braille.The Voice of Technology publishes articles authored by indus-try professionals.The opinions and/or positions expressed in these articles are notnecessarily those of NVTC. NVTC encourages its members to submit story ideas andcomments to: [email protected].

Our Professionals BITS + BYTES

May/June 2004 Page 7The Voice of Technology

Page 8: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

by Tom Finkenbinder, New Edge CapitalManagement, NVTC IT&T CommitteeChair

Last month I bought a new QUALCOMM3g CDMA phone for my wife. It hadnothing to do with QUALCOMM CEO

Dr. Irwin Jacobs' remarks at NVTC's Titan's ofTechnology breakfast here in March. It has allthe hot new features: clamshell case, neonkeypad, digital camera, thumbnail video dis-play, all the hands-free attachments, and aninch-thick user manual that I'm sure we willnever read.

Of course the camera images are nowherenear the quality you see in the ads even whentaking still shots. My kids chase the cataround the house with it looking for photoopps to email their grandmother – they thinkit's hilarious – the cat thinks it's a new formof torture (I agree with the cat). Outdoorshots without a flash are okay, but this isprobably not the next killer app.

Our theme for the May 2004 issue of TheNVTC Voice of Technology is "WirelessCommunications," and the articles providedby the contributing authors examine currentissues and trends in this corner of theTelecommunications Industry. I think it's afabulous effort to paint a picture of arguablythe most resurgent sector in a business stillrecovering from the missteps in capitaliza-tion, business management and corporateethics that we witnessed in the late 1990s –ongoing, unfortunately.

Scientific achievement in radio telephonynow includes voice applications (cellular tele-phone, paging, push-to-talk), portable hand-held devices (Blackberries), wireless data net-works (Wi-Fi), mobile digital markers andsignatures (RFID), among other uses. Digitalsignal transmission has evolved to the point

of allowing reliable access and coding meth-ods. Wireless features have almost overnightbecome integrated with common Internetapplications, email and file transfer, even a lit-tle Web surfing.

Here in Washington, D.C., with our proximityto the seat of federal government, our atten-tion is drawn to industry regulation andhomeland security initiatives, further defin-ing the landscape for responsible use of wire-less technologies. The future of the industrywill be affected by national efforts to createsecure infrastructure in the interest of pro-tecting our country, its citizens and strategicassets.

Many believe we will fight a war on terrorismfor the foreseeable future. So like it or not,'security' becomes an issue with respect tothe uses, integration, regulation, growth anddevelopment of enabling technologies, likewireless communications.

NVTC members are encouraged to join theNVTC IT&T Committee and participate atupcoming meetings and events. We havetremendous opportunities ahead of us – andwe look forward to new ideas and contribu-tions from our diverse membership!

See us on the Web at www.nvtc.org/commit-tees/itt.htm, or email NVTC's Director ofCommittee and Corporate Activities, WindyHoneycutt, at [email protected] for moreinformation.

Tom Finkenbinder is chairman of NVTC's IT &Telecommunications Committee and president of

New Edge Capital Management, an investmentadvisory firm. www.newedgecapital.com

NVTC’s InformationTechnology andTelecommunications(IT&T) Committee

Page 8 May/June 2004The Voice of Technology

Page 9: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 9The Voice of Technology

NVTC IT&T Committee Leadership

Committee ChairmanTom Finkenbinder

(703) 819-2500

Committee Vice ChairmanMunira Jaffar (703) 433-8877

[email protected]

Committee Events CoordinatorsDaniel Hassett

(703) 905-2809 or [email protected] Mudge

(202) 220-4214 or [email protected]

Committee Networking/Social CoordinatorBill Erbe

(703) 288-9209 or [email protected]

Media/Web/PRSusan Fitzgerald

(703) 251-1989 or [email protected] Leahy

(703) 620-6300 ext. 224 or [email protected]

Page 10: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 10 May/June 2004The Voice of Technology

by Matthew Flanigan,Telecommunications Industry Association

In recent years, the U.S. telecom industryhas faced intense economic challengesresulting in spending freezes, R&D cut-

backs, job losses and company closings.Those who survived now face a new environ-ment. New technologies and trends such asWi-Fi and one-rate pricing plans are impact-ing the market, and an overall recovery isunder way. The mobile and wireless commu-nications sector, on both the national andinternational levels, is one of the highestgrowth areas in the overall telecom industryaccording to the TelecommunicationsIndustry Association’s (TIA) 2004Telecommunications Market Review andForecast.

Current Wireless Market

Spending in the U.S. wireless market in 2003totaled $134.5 billion, up 7.9 percent from2002, according to TIA's report. The reportdefines the U.S. wireless market as transportservices, handsets, infrastructure, includingWi-Fi equipment, and professional services insupport of the wireless infrastructure.Continued double-digit growth in transportservices and an increase in handset and sup-port services spending offset an 8.4 percentdecrease in wireless equipment. Spending onwireless services passed long-distance (toll)

revenues in 2003 for the first time and is pro-jected to pass local revenues in 2007. The2003 performance represents the first single-digit gain in the wireless market followingyears of double-digit growth, indicating themarket is approaching maturity.

Wireless Subscribers

The U.S. wireless subscriber base (wirelesstelephony and paging) will continue toexpand, but at single-digit rather than dou-ble-digit rates. By 2007, there will be an esti-mated 195.5 million wireless communica-tions subscribers, up from a predicted 168.3

million in 2004. The mobile wireless sub-scriber base is still expanding, but growthwill drop to single-digit levels because amajority of the population already sub-scribes. The paging market, on the otherhand, is declining. One-rate wireless pricingeroded the price advantage of paging, andwireless text messaging cut into an appealingfeature of pagers.

We expect spending on wireless services toincrease at a 10.7 compound annual growthrate (CAGR) to $134 billion in 2007.

Wi-Fi Technologies and Introduction of New Applications to Drive

WIRELESS MARKET ON

Page 11: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

New Applications Driving Growth

With the introduction of new applicationssuch as Wi-Fi technologies and more sophis-ticated communications products, we'll see anincrease in carrier revenues. The initial roll-out of 2.5G technologies enabled carriers tooffer enhanced wireless data services. We arenow seeing the start of nationwide deploy-ment of 3G services with claims of averageuser speeds of 300-500 kbps.

One-rate pricing plans that include free roam-ing and large buckets of minutes continue toattract subscribers. Applications such as textmessaging, multimedia messaging, wirelessgames and customizable ring tones are alsostimulating the market. Prices associated withthese new applications and service plans withmore minutes will boost spending on wirelesscommunications services. We project averagerevenue per subscriber to increase to $59.50per month by 2007, growing at a 4.7 percentCAGR. That increase represents a notablereversal from the 1990s, when average month-ly spending declined steadily. It also repre-sents a larger annual increase over the 2000-2004 period. In addition, carriers are intro-ducing prepaid plans with automatic renewalfeatures. Prepaid plans will help expand thewireless subscriber base, but growth willbegin to slow in 2004.

Wireless Capital Expenditures andWi-Fi Equipment

Capital expenditures by wireless carriers oninfrastructure, research and development,and licenses fell in 2003, and further declinesare expected through 2005 before spendingrebounds in 2006 – fueled by the need tomaintain and upgrade aging infrastructureand by payments for 3G licenses.Wireless car-riers spent $13.5 billion on services in sup-port of wireless networks and public wirelesslocal area networks in 2003, a 4.7 percentincrease. Spending will reach an estimated$17.3 billion in 2007, expanding at a 6.4 per-

cent CAGR. The Wi-Fi market is expandingrapidly and will continue to grow as we seehot spots emerging across the globe.

Wireless Handsets

As subscriber growth slows, new users willprovide less of a boost to the handset marketthan in the past. Subscriber growth and theintroduction of smaller and sleeker phoneswith new features and capabilities have beenthe principal drivers of the handset market.Spending on handsets by carriers and endusers totaled $9.6 billion in 2003, up 1.7 per-cent, as healthy growth in wireless handsetsoffsets declines in pagers and personal digitalassistants. Introduction of new featuresincluding camera phones, wireless games,text messaging and Wi-Fi capability will gen-erate demand for new handsets.

Looking Ahead

The wireless market is undoubtedly highlycompetitive. At the end of 2003, 95 percent ofthe population lived in areas served by threeor more wireless carriers, and 71 percent ofthe population had six or more wireless

options. Virtually all major providers offer"big bucket" pricing plans that allow cus-tomers to call nationwide without incurringroaming or long-distance charges. We expectto see an increase in the rollout of new servic-es and applications on both the national andinternational front – text messaging, instantmessaging, wireless gaming, multi-mediamessaging service (which allows subscribersto send photos on their wireless phones), Wi-Fi and one-rate pricing. With these new offer-ings, the wireless sector will remain one of theprincipal drivers in the global telecomm mar-ket.

Matthew Flanigan is president of TIA(Telecommunications Industry Association) a U.S.

trade association serving the communicationsand information technology industry.

http://www.tiaonline.org.

By special arrangement, NVTC members areeligible to receive a $200 discount on TIA's 2004

Telecommunications Market Review and Forecast.Visit http://www.tiaonline.org/media/mrf.cfm to

learn more about the publication. When ordering,please reference priority code "associate" to

receive your discount.

May/June 2004 Page 11The Voice of Technology

Growth of Wireless Communications Services Market

N THE MOVE

Page 12: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 12 May/June 2004The Voice of Technology

by Andrew Goldsmith, Global Internetworking, Inc.

Last October, I attended a telecom conference in Washington,D.C. It was an excellent show in many respects, but I particular-ly enjoyed was one of the plenary sessions. In it, a panel of Wall

Street analysts speculated on the future of the industry – which firmswould be winners, which were headed for bankruptcy, which tech-nologies were ascendant, etc. And while there was considerable dis-agreement among the panel on those topics, there was surprisingagreement about one prediction: telecom industry consolidation isinevitable and desirable.

It was the same story at a workshop I attended last month on telecomcontract negotiation: telecom firms are going to start buying andmerging with each other. And in fact, ever since the telecom melt-down started three years ago, there has been a drumbeat of similarpredictions. Their economic logic is impeccable: as industry growthslows and pricing pressure increases due to excess capacity, industryleaders will acquire industry "laggards" in order to create economiesof scale and maintain profitability, so that in telecom, as in other"mature" industries, only three to five competitors in any given mar-ket will remain. And in fact, there have been a number of recentacquisitions in the telecom industry: Broadwing's purchase of FocalCommunications, Cingular's purchase of AT&T Wireless, Savvis'acquisition of Cable & Wireless' U.S. assets, XO's acquisition ofAllegiance, etc.

With all this doomsaying, is the entrepreneur's window of opportuni-ty for innovation, new company start-ups, and investment opportuni-ties in the telecom industry in Northern Virginia and the rest of thecountry coming to an end?

Don't bet on it. Consider, for example, the number of new CLECs(competitive local exchange carriers) filing to do business in Virginia.As the table (left) indicates, although the number has tapered off rel-ative to the boom years of 1998-2000, over 100 firms entered the mar-ket in the last three years, during the worst downturn in the industry.

Another piece of evidence: total industry growth outpaced overalleconomic growth in 2003, 7 percent versus 4.1 percent. Why is thatimportant? Because higher than average growth attracts entrepre-neurs and investors and creates a positive sales environment for newfirms.

But the most encouraging evidence that telecom will remain an areaof innovation are the macro trends behind these numbers. Talking tovendors, customers and industry analysts reveals at least three factorsthat make massive industry consolidation unlikely.

The first is the emergence of hybrid service providers – equipmentvendors that are facilitating the convergence of wireline, satellite, ISP,cable, and wireless networks. These companies operate in the spacebetween these different networks and essentially make it possible forthem to convert data and voice to whatever standard makes sense forthe end user, over whatever medium (wireline, wireless, satellite) the

V irginia CLEC Filings 1 9 9 5 -2 0 0 3

0

20

40

60

80

100

120

140

1995-97 1998-00 2001-03

Source: State of V irginia

# F

ilin

gs

Telecom Industry Consolidation? Don't Hold Your Breath

2 0 0 3 Grow th Ra te s

0% 2% 4% 6% 8%

US GDP Grow th

US TelecomIndustry Grow th

Source: U .S. D ept of C om m erce; Telecom m unications Industry A ssociation

Source: Commonwealth of Virginia

US TelecomIndustry Growth

US GDP Growth

Page 13: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 13The Voice of Technology

end user prefers. Some of the better-known firms are PointOne,Flarion, Virtella, IBasis, and Wayport – but there are scores of othersas well.

The second factor is the glut – of talent, of bandwidth, of softwareand hardware – that has made it relatively easy for companies to enter(and re-enter) the telecom space. Think about it: unlike other facili-ties-intensive businesses (autos, airlines, hotels) where new compa-nies need to make big upfront investments to enter, in telecom thereis a gigantic wholesale sector that allows entrepreneurs to begin oper-ations on a variable cost basis.

The final factor is the complexity of the various kinds of telecommu-nications services out there. Consider the range of different servicesavailable to customers: DSL,ATM, Ethernet, IP transit, IP-VPN,Wi-Fi,Cable Telephone, Frame Relay, Private Lines, PRIs, LD, ISDN, W-LAN,GIG-E, Dark Fiber, etc., etc. Now consider the technical expertise, theprocess knowledge, the understanding of business applications need-ed to provide each of these services effectively. This stuff is complex,and there will always be a place for specialist firms that choose tomaster one or two of these services, rather than try to sell them all.

The bottom line: There will continue to be high profile mergers andacquisitions. But if you look at the industry as a whole, there is a lotof evidence that a whole new breed of telecom service provider isemerging and that far from becoming more consolidated, competi-tion and fragmentation is going to rule the day.

Andrew Goldsmith is Vice President of Marketing and Strategic Planningfor Global Internetworking, Inc., a facilities-neutral provider of high-

capacity data transport solutions.www.globalinternetworking.com

NVTC TECHxchangeBusiness Card Directory

Join NVTC TECHxchange and exchange YOUR business cardwith 11,000 readers of The Voice of Technology.

Contact Mildred Cooper for details at [email protected]

Page 14: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 14 May/June 2004The Voice of Technology

For users of portable computersequipped for wireless, a hot spot is acompany providing Internet connec-

tion from a given location. For example, abusiness traveler with a laptop equipped forWi-Fi can look up a local hot spot (accesspoint), contact it, and get connected throughits network to reach the Internet. Hot spotsare commonly found in airports, hotels andcoffee shops. They are also found in otherlocations such as RV parks and campus set-tings.

Customer demand for Wi-Fi, and theirpropensity to pay for it, is in direct correla-tion to available alternatives. For instance, ina city setting a Wi-Fi subscriber may havealternatives available at home or the office. Inthis case, access to Wi-Fi, say in a coffee shopor on a city street is a convenience, but it isunlikely the service can command a veryhigh fee given the proximity of availablealternatives. Indeed, the financial success ofnotable urban hot spot providers such asStarbucks ($9.99/day) or McDonald's($2.99/day) likely has not been as great asanticipated. Likewise, projects to light up adowntown core area have typically been posi-tioned as a free service.

Showing greater promise are airports (BWI -$7.95/day). In this location, travelers have

Monetizing Wi-Fi Hot Spotsby John Leahy, LinkSpot

Page 15: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 15The Voice of Technology

more restricted options. The familiar high-speed surroundings of home or office usuallyare not available. Given the paucity of choices,the traveler is more likely to pay for the serv-ice. As an added benefit to the provider, thetraveler may be less cost conscience than thetypical consumer, since someone else, i.e. theemployer, ultimately is responsible for the fee.

Hotels have surpassed coffee shops as themost ubiquitous suppliers of Wi-Fi.(Hampton Inns – complimentary). Manyhoteliers give the service away for free. Thisrepresents a subtle, but important shift inthinking. The revenue that can be realized inselling Wi-Fi to the consumer pales in com-parison to the revenue of an additional roomsale. Additionally, this added amenity couldjustify a rate increase for the property. Eventhough the guest is away from home, he or shestill has broadband alternatives, in this case,choices among hotels.

RV Parks represent a unique opportunity forthe commercialization of Wi-Fi, especially forentrepreneurial companies. Unlike restau-rants or hotels, RV parks are primarily momand pop affairs. The absence of any dominantplayer makes the need for an outside Wi-Fiexpert a requirement. The generally rurallocation of the parks reduces the competitionfrom other vendors. Likewise, guests in RV

parks have fewer alternatives, if any, for high-speed Internet access. This makes the pay-for-service model more viable.

Some park owners, like many of the hotels,bundle Wi-Fi as an amenity with their premi-um sites. Guests get Wi-Fi access as part oftheir package. This increases site nights at thepark – particular valuable during the shoul-der season when weather is likely to be moreinclement. Like the hotels, the value of a sitenight far outweighs any return the park canget on a Wi-Fi sale to the guest.

With the costs of Wi-Fi equipment steadilydropping the trend in the future will be tobundle Wi-Fi with other services, be it roomsor campsites. Verizon has experimented withbundling Wi-Fi with its DSL service.

However, the financial commitment to lightup a hot spot is not limited to the initial capi-tal expenditure and the ongoing line charge.Most of the cost will ultimately be in control-ling access, network monitoring and mainte-nance, and customer service. Even if Wi-Fi isgiven away the property owner will still wantto limit access to facilitate the management ofbandwidth requirements. Access typically isgranted via a user ID and/or passwordarrangement. Monitoring functions for a hotspot include performance, availability and

security issues. Ongoing maintenance is asso-ciated not only with necessary repairs, butmore often with upgrading equipment oradding access points to accommodategrowth. Because of the huge variety of com-puters, operating systems and wirelessadapters, not to mention the somewhat tran-sient nature of a wireless signal, customerservice will always be a necessity.

As entrepreneurs migrate to this back officemodel, the property owner, rather than theend user becomes the source of revenue. Notonly is this a more secure revenue stream, butalso it permits certain economies of scalesince standardization of processes can bemore readily implemented.

John Leahy is Vice President of Sales andMarketing at LinkSpot, a provider of high-speed

Internet access to guests of RV parks.www.linkspot.com.

Page 16: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 16 May/June 2004The Voice of Technology

NVTC CALENDAR OF EVENTSNorthern Virginia’s Premier Events for the Technology Community

MAY

Venture Capital Exits and GrowthCapital

7:30 am Registration; 8:00 - 9:30 am ProgramThe Ritz-Carlton, 1700 Tysons Blvd. McLean, VA$35 Members / $70 Non-MembersPlatinum Sponsors: BB&T Capital Markets; Claris Capital LLC; Fish& Richardson; Womble Carlyle Sandridge & Rice PLLC.Presented by NVTC's Venture Capital Committee.

Meet the Capital Players

7:30 am Registration; 8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room, 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Comerica Bank, Technology & Life SciencesDivision; Ernst & Young; Piper Rudnick LLP; Wilson SonsiniGoodrich & Rosati.Presented by NVTC's Capital Formation Committee.

Executive Forum

7:00 am Registration; 7:45 - 9:30 am ProgramThe Tower Club, 8000 Towers Crescent Dr., Ste 1700, Vienna, VA$35 Members / $70 Non-MembersExecutive Forum Platinum Sponsor: McGuireWoods LLP. ExecutiveForum Gold Sponsors: PricewaterhouseCoopers LLP; SalesTraction,Inc. Executive Forum Silver Sponsors: Hampton Roads EconomicDevelopment Alliance; Howrey Simon Arnold & White, LLP; Kenyon& Kenyon; LeapFrog Solutions, Inc.; Pillsbury Winthrop LLP.International Committee Platinum Sponsors: Morrison & FoersterLLP; Welsh Development Agency. International Committee GoldSponsors: Baker & McKenzie; The British Midlands; Global ReliefTechnologies; Howrey Simon Arnold & White, LLP.Presented by NVTC's Executive Forum and International committees.

Nanotechnology

7:30 am Registration; 8:00 - 9:30 am ProgramSAIC Conference Center1710 SAIC Drive, McLean, VA$35 Members / $70 Non-MembersSilver Sponsors: Lockheed Martin Corporation; Squire, Sanders &Dempsey L.L.P. Location Sponsor: SAICPresented by NVTC's Nanotechnology Committee.

Business Development,Marketing & Sales Forum

7:45 am Registration; 8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room; 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Gibbs College; Qorvis Communications, LLCGold Sponsors: Carter Cosgrove + Company; Joan Carol Design &Exhibit Group Location Sponsor: Pillsbury Winthrop LLP.Presented by NVTC's Business Development, Marketing & SalesCommittee.

Emerging Business Network

7:30 am Registration; 8:00 - 9:30 am ProgramGrant Thornton, Conference Center Lower Level; 2070 Chain Bridge Rd.,Vienna, VANo Charge for Members / $35 Non-MembersGold Sponsors: The British Midlands; KPMG LLP Location Sponsor: Grant Thornton.Presented by NVTC's Emerging Business Network Committee.

CFO Series

7:30 am Registration; 8:00 - 9:30 am ProgramThe Ritz-Carlton, 1700 Tysons Blvd. McLean, VA$35 Members / $70 Non-MembersPlatinum Sponsors: Ernst & Young; ShawPittman LLP GoldSponsors: Comerica Bank, Technology and Life Sciences Division;Marsh, Inc. Silver Sponsors: Equis Corporation; Spaulding & SlyeColliers. In-kind Sponsor: Bowne of DC Financial Printing.Presented by NVTC's CFO Series Committee.

NVTC's Spring Golf Tournament

This event is sold out. Player spots are available for sponsors.10:00 am Registration; 11:00 am Shotgun Start; 5:00 pm DinnerRiver Creek Club; 43730 Olympic Blvd Leesburg, VATournament Sponsor: New Technology Management, Inc. ClubSponsor: AH&T Technology Brokers. Beverage Sponsors: Joan CarolDesign & Exhibit Group; Northwestern Mutual Financial. Hole-in-One Sponsor: Pillsbury Winthrop LLP. Closest to the Pin Sponsor:Dan Bannister. Longest Drive Sponsor: RCM&D, Inc. Hole Sponsors:George Mason School of IT & Engineering; Hale and Dorr LLP;Micromuse Inc.; PricewaterhouseCoopers LLP; Robbins-Gioia;ShawPittman LLP.Presented by the NVTC Foundation.

May 5

May 6

May 7

May 11

May 14

May 18

May 20

May 24

Page 17: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 17The Voice of Technology

NVTC CALENDAR OF EVENTSNorthern Virginia’s Premier Events for the Technology Community

International Committee Forum:Hong Kong: The Place To Be ForAsian Business

Speakers: The Hon. George Newstrom, Secretary of Technology forthe Commonwealth of Virginia; H.E. Jacqueline A. Willis, Hong KongCommissioner, USA7:30 am Registration; 8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room; 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Morrison & Foerster LLP; Welsh DevelopmentAgency. Gold Sponsors: Baker & McKenzie; The British Midlands;Global Relief Technologies; Howrey Simon Arnold & White, LLP.Presented by NVTC's International Committee.

eBusiness Technical Forum

6:00 - 6:30 pm Registration; 6:30 - 8:30 pm Presentation and DiscussionLocation: TBDPresented by NVTC’s eBusiness Committee.

JUNE

TECHCONNECT:Clarendon Connections

Join us for this High-Tech Mixer6:00 - 8:00 pmClarendon Ballroom, 3185 Wilson Boulevard, Arlington, VA $40 Chamber/NVTC members / $50 Non-membersPresented by NVTC and the Arlington Chamber of Commerce.

Meet the Capital Players

7:30 am Registration8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room, 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Comerica Bank, Technology & Life SciencesDivision; Ernst & Young; Piper Rudnick LLP; Wilson SonsiniGoodrich & Rosati.Presented by NVTC's Capital Formation Committee.

JUNE

eBusiness Morning Forum

7:30 am Registration8:00 - 9:30 am ProgramSAIC Conference Center, 1710 SAIC Dr. McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: SAIC. Gold Sponsor: Radware, Inc.Presented by NVTC's eBusiness Committee.

8th Annual Greater WashingtonTechnology CFO Awards

6:00 pm Registration & Networking Reception7:00 pm - 9:00 pm Dinner & Awards ProgramHilton McLean, 7920 Jones Branch Dr., McLean, VA$175 per Individual Ticket / $1750 Per Table of TenPlatinum Sponsor: Ernst & Young. Gold Sponsors: Deloitte; DeltekSystems; ePlus, Inc.; KPMG LLP; M&T Bank; Marsh Inc.;PricewaterhouseCoopers LLP; ShawPittman LLP. Banquet ReceptionSponsors: Hale and Dorr LLP; Spherion. Kickoff Reception Sponsors:Cassidy & Pinkard; Comerica Bank, Technology and Life SciencesDivision. Nominee Reception Sponsors: Silicon Valley Bank;Willamette Management Associates. Silver Sponsors: AH&TTechnology Brokers; Beers & Cutler; Bowne of DC FinancialPrinting; Cardinal Bank, N.A.; Friedman, Billings, Ramsey;Houlihan Lokey Howard & Zukin; Piper Rudnick LLP; QorvisCommunications LLC; Resources Connection; Russell ReynoldsAssociates; Scheer Partners, Inc.; Spaulding & Slye Colliers; The St.Paul Companies; UK Trade & Investment, British Embassy; UpdataCapital, Inc.Presented by the Northern Virginia Technology Council & the Tech Councilof Maryland; with participation by the DC Tech Council.

Business Development,Marketing & Sales Forum

7:45 am Registration8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room, 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Gibbs College; Qorvis Communications, LLC.Gold Sponsors: Carter Cosgrove + Company; Joan Carol Design &Exhibit Group. Location Sponsor: Pillsbury Winthrop LLP.Presented by NVTC's Business Development, Marketing & SalesCommittee.

May 26

June 2

June 3

June 8

June 10

June 11

Continued on page 18.

May 26

REGISTER AT:

Page 18: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 18 May/June 2004The Voice of Technology

JUNE, continued.

Emerging Business Network

7:30 am Registration8:00 - 9:30 am ProgramGrant Thornton Conference Center Lower Level, 2070 Chain Bridge Rd.,Vienna, VANo Charge for Members / $35 Non-MembersGold Sponsors: The British Midlands; KPMG LLP. Location Sponsor:Grant Thornton. Breakfast Sponsor: Hale and Dorr LLPPresented by NVTC's Emerging Business Network Committee.

Business to Government

7:30 am Registration8:00 - 9:30 am ProgramThe Ritz-Carlton, 1700 Tysons Boulevard, McLean, VA$35 Members / $70 Non-MembersPlatinum Sponsors: Dickstein Shapiro Morin & Oshinsky LLP;INPUT; ObjectVideo. Gold Sponsors: GTSI; Morrison & FoersterLLP; Trammell Crow Company. Silver Sponsors: OperationalResearch Consultants, Inc.; Panacea Consulting, Inc.; Venable LLP;Vistronix.Presented by NVTC's B2G Committee.

IT & Telecommunications Series

7:30 am Registration8:00 - 9:30 am ProgramThe Ritz-Carlton, 1700 Tysons Boulevard, McLean, VA$35 Members / $70 Non-MembersPlatinum Sponsors: Gardner Carton & Douglas LLP; Kenyon &Kenyon. Gold Sponsor: Morrison & Foerster LLP. Silver Sponsors:Alston & Bird LLP; Cox Communications; Gray CaryTechnology’s Leading Edge; PricewaterhouseCoopers LLP; WileyRein & Fielding LLP Bronze Sponsor: Siemens Information andCommunication Networks, Inc.Presented by NVTC's IT & Telecommunications Committee.

International Committee Forum

7:30 am Registration8:00 - 9:30 am ProgramPillsbury Winthrop Conference Room, 1600 Tysons Blvd., McLean, VANo Charge for Members / $35 Non-MembersPlatinum Sponsors: Morrison & Foerster LLP; Welsh DevelopmentAgency. Gold Sponsors: Baker & McKenzie; The British Midlands;Global Relief Technologies; Howrey Simon Arnold & White, LLP.Presented by NVTC's International Committee.

TechDonuts

7:30 am Registration8:00 am - 9:30 am ProgramVirginia’s Center for Innovative Technology, 2214 Rock Hill Road,Herndon, VANo ChargePlatinum Sponsors: Fish & Richardson; Scheer Partners. SilverSponsors: e-cerv; FedLeads.Presented by NVTC's Entrepreneur Committee.

NVTC Annual Meeting

All Members are Encouraged to Attend!8:00 am Registration8:30 - 9:30 ProgramThe Tower Club, 8000 Towers Crescent Dr. Ste 1700, Vienna, VANo ChargePresented by NVTC.

June 16

June 18

June 22

June 24

June 25

NVTC CALENDAR OF EVENTSNorthern Virginia’s Premier Events for the Technology Community

REGISTER AT:

June 15

Page 19: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 19The Voice of Technology

Page 20: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Wireless LANs - A Fast GrowingOnramp to Broadband Services

The growth of Wi-Fi wireless LAN tech-nology in the enterprise and, morerecently, in the home has been nothing

short of phenomenal over the last five years.The rapid absorption of the technology intothe market has been facilitated by a commonset of standards (802.11a, 802.11b, and802.11g) developed by the Institute ofElectrical and Electronic Engineers (IEEE)802.11 standards group, coupled with thegrowing demand for always-on broadbandInternet service anywhere, not just at the cor-porate or home desktop computer. The vast,global market potential of this technologyhas in turn stimulated healthy competitionamong suppliers which has driven downprices as the technology has matured.

Businesses and home users alike areimpressed by the ease with which this tech-nology can be deployed. Specific aspects ofthe 802.11 standards along with computeroperating system software from Microsoft,Apple, and others makes the installationprocess extremely fast and easy for mostusers. Once familiarized with the operation ofa wireless LAN, its use becomes secondnature for the typical user.

Unfortunately the ease of use characteristicsof this technology do not also assure that theimplementation of a wireless LAN is secure.Most 802.11 wireless networks deployedtoday do not have adequate security safe-guards in place. This is so, in part, becauseimplementing such safeguards requires extraeffort that is often beyond the capabilities ofall but the most technically sophisticated

users, and because the original security stan-dards that were defined by the IEEE 802.11standards group were themselves seriouslyflawed.

Security Services and SupportingStandards

The security of any communications systemand the protocols which implement that sys-tem can be analyzed in terms of the capabili-ty of the system to deliver one or more of thefollowing security related services.

Message Privacy Message IntegrityMessage Non-repudiationSender and Recipient AuthenticityService Availability

The principal underlying industry securitystandards which may be utilized to supportWireless LANS include:

Secure Sockets LayerWired Equivalent PrivacyWi-Fi Protected AccessTM

Port Based Network Access ControlDraft Supplement to Standard forTelecommunications andInformation Exchange BetweenSystemsThe Directory: Public-key andattribute certificate frameworksExtensible Authentication ProtocolTransport Layer SecurityEAP - Transport Layer SecurityProtected EAP MS ChallengeHandshake Protocol V2Remote Authentication Dial-In UserService

Securing yourEnterprise WirelessLAN with Wireless Protected AccessTM

by John Holmblad, Televerage International

Page 20 May/June 2004The Voice of Technology

Page 21: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 21The Voice of Technology

While this is not an exhaustive list it repre-sents the major components that are utilizedas the key ingredients for any secure WirelessLAN and which are intended to provide oneor more of the aforementioned security relat-ed services over the communications medi-um.

The Security Challenges ofWireless Networks

A century after Guglielmo Marconi, a self-taught 21-year-old from Bologna, Italy, suc-cessfully propagated electromagnetic energyfor the purpose of communications, the ubiq-uitous application of wireless communica-tions has transformed civilization and per-vaded almost every aspect of our lives. Sincethat first transmission in 1895, however, theworld has had to contend with the securityconsequences of what, after all, is a funda-mentally insecure medium.

Attacks on Wireless Networks

In chapters 3 and 4 of their text, "Real 802.11Security,Wi-Fi Protected Access and 802.11i,"authors Jon Edney and William A. Arbaughprovide a concise yet thorough review of thetypes of attackers and the types of attack thatcan be mounted against networks in general,and specifically against wireless LANs. Theeconomic risk to the victim is greatest from"profit or revenge" attackers because suchattackers generally understand where theeconomically valuable information is locatedwithin the victim organization and, havingobtained access to it, use it for their own ben-efit. Of course, any given attack, even onewhich "accidentally" compromises and/ordestroys valuable information, can be devas-tating to the victim’s firm.

Flaws in the Original 802.11Security Protocols

The original standard contains a set of securi-ty related services known as WiredEquivalent Privacy, or WEP, and it has beenamply documented that each of these servic-es can be compromised at an almost trivialeconomic cost.

WEP Vulnerabilities, AttackMethods, and Consequences

The implementation of the Client to AccessPoint authentication is so seriously flawed inthe original 802.11 standard that some imple-menters of 802.11 products don't even sup-port the feature. Where it is supported itshould be turned off to avoid exposing theWEP key to disclosure.

These vulnerabilities in the cryptographicaspects of WEP give rise to the potential forall manner of easily mounted and successfulattacks on a network which utilizes the 802.11protocol including Message Interception,Rogue Access Points masquerading as a legit-imate Access Point and Message Forgery.

There should be no doubt in the reader'smind that the aforementioned weaknesses inthe 802.11 security protocols can be exploitedin the real world. At the recently completedWi-Fi Planet Conference in December 2003,TechWorld reporter Peter Judge reported thatAir Defense monitored Wi-Fi traffic at thetrade event and observed 21 attempted man-in-the-middle (MITM) attacks of which 16were successful (a success rate of 76 percent.)This represents a substantial increase in thepercentage of successful attacks of this typefrom the similar event just six months earlierin June 1002 where only 3 of 32 (-9%) weresuccessful. Air Defense also recorded 75Denial-of-Service (DOS) attacks and 125MAC spoofing attacks. In addition, at leastone cracker was able to construct a "rogue" adhoc network with an SSID of "wi-fiplanet"which was real enough to trick at least 10 del-egates into associating with that rogue net-work.

Of course, the aforementioned weaknesses inWEP security have not stopped users fromutilizing 802.11 based networks, just as thehigh vulnerability of first generation mobilevoice networks based on the AdvancedMobile Phone System (AMPS) standard toeavesdropping did not stop users from usingthat service starting in the early 1980s. Whatis different today, of course, is that 802.11based networks are being used extensivelyinside of the perimeter defenses of enterpris-es and, in many cases, government agencieswhere the weaknesses in WEP can expose thewhole business or government network to

unauthorized access, theft, and destruction ofinformation.

Short Term and Medium TermReplacements for WEP

Once the security flaws in the original 802.11standard became apparent, a consortium ofsuppliers of 802.11 technologies known as theWI-FI Alliance (www.wi-fi.org) workedaggressively to develop an interim "fix" toWEP security known as Wi-Fi ProtectedAccessTM (WPA). In the meantime, the IEEEitself has been working on a more extensiveand, even more cryptographically robustreplacement for WEP known as 802.11i whichis currently in draft form and is expected tobe ratified sometime in 2004. The securityarchitecture for 802.11i is also referred to asRobust Security Network (RSN) and it utilizesthe IEEE 802.1x standard as the underpin-ning for the access control, authentication,and cryptographic key management func-tions associated with 802.11i.

The Wi-Fi Alliance has been careful to designthe WPA standard to have both downwardcompatibility with many (but not all) previ-ously deployed WEP-based systems as well asupward compatibility with the still-to-befinalized/ratified IEEE 802.11i draft standard(draft 3.0 in fact). The balance betweendownward and upward compatibility in theWPA standard shows itself in the area of thechoice of cryptographic methods for messageprivacy. Although the 802.11 supports twoalternative cryptographic methods, theAdvanced Encryption Standard and theTemporal Key Integrity Protocol (TKIP), theWPA standard only requires the TKIP alter-native (AES support is supplier optional).This is because TKIP can be more easilyimplemented through a software/firmwareretrofitting of the already extant 802.11equipment than can the more cryptographi-cally secure but more computationallyintense AES standard. Furthermore, there isone useful but not as critical feature of802.11i/RSN, authenticated roaming access,which is not yet finalized by the 802.11i stan-dards committee and so that feature was leftout of WPA altogether.

Early in 2004, WPA-compliant products(Access Points and various client radio PC

CONTINUED ON PAGE 23.

Page 22: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this
Page 23: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 23The Voice of Technology

Federal Computer WeekAnnounces 2004 Federal 100Winners

With the key criterion being"impact," 14 NVTC membersmade Federal Computer Weeks’s

“2004 Federal 100” winner list. This year thejudges were especially interested in issuesthat related to the President's ManagementAgenda.

Other 2004 criteria included making anoticeable difference in an agency or in thecommunity at large; making a difference bygoing above and beyond their job descrip-tions to ensure that a project succeeds; mak-ing a mark through innovation (coming upwith new and better ways of tackling perpet-ual problems) and blazing a trail that othersmay follow.

2004 Federal 100 winners include: NVTCBoard Member Greg Baroni, Unisys Corp.,and NVTC B2G Committee Chair DavidNadler, Dickstein Shapiro Morin & OshinskyLLP, and NVTC members Anthony D’Agata,Sprint; Mary Ann Davidson, Oracle Corp.;Kevin Durkin, EDS; Rodney Hunt, RSInformation Systems, Inc.; Joseph “Keith”Kellogg, Oracle Corp.; Karl Kropp, SAIC;Robin Lineberger, BearingPoint Inc.; J.P.“Jack”London, CACI International Inc.; JohnSabo, Computer Associates InternationalInc.; Kent Schneider, Northrop GrummanInformation Technology; Ken Silbert,Accenture; Patricia Snodgrass, LockheedMartin Information Technology; and JeffreyWesterhoff, SRA International, Inc.

Independent Insurance Agentsof Virginia RecognizeArmfield, Harrison & Thomas

The Armfield, Harrison & Thomas(AH&T) agency has been recognizedfor its longstanding excellence in cus-

tomer service by the Independent InsuranceAgents of Virginia (IIAV). "Membership inyour professional and industry organizationis one true measure of an agency's commit-ment to providing quality service," statedRobert N. Bradshaw, Jr., MAM, Executive

Vice President of IIAV. "We recognizeArmfield, Harrison & Thomas for over 51years of membership in their industryorganization and thank them for their dedi-cation and support for this great industry."

AH&T is one of only 41 insurance agenciesrecognized out of over 1,100 agencies in thestate. John Love, CPCU, Principal ofArmfield, Harrison & Thomas, Inc., andDirector of AH&T Technology Brokers,serves on the Board of NVTC.

Shenandoah University HarryF. Byrd Jr. School of BusinessSelects NVTC ChairmanEmeritus Dan Bannister as2004 Entrepreneur of the Year

NVTC Chairman Emeritus DanBannister has received the Harry F.Byrd Jr. School of Business

"Entrepreneur of the Year" Award. Bannister,former president, CEO, and chairman ofDynCorp, received the award April 15th atthe Shenandoah University Campus inWinchester, Virginia, after his lecture enti-tled "Adding Employer Value throughEmployee Ownership: A Success Story."

The award is given to individuals who areoutstanding entrepreneurs and role modelsfor students. Other criteria include exempla-ry ethical conduct and unique experiences inthe creation of new businesses. Last year'saward winner was NVTC ChairmanEmeritus John Backus.

Three NVTC Board MembersReceive 2004 VolunteerFairfax Community ChampionsAward

Volunteer Fairfax has announced the2004 Community Champions Award,and three NVTC Board members

have been recognized for this prestigioushonor. Receiving this year's award are ScottHommer of Venable, LLP; Gary McCollum ofCox Communications; and Todd Rowley ofWachovia. The award is presented annuallyto members of our community who promotevolunteerism and exhibit outstanding com-munity outreach service. Thank you andcongratulations from NVTC!

adapter products) started coming into thecommercial market along with the necessarysoftware and firmware to support the WPAfeature set.

Conclusion

Wireless LANs are here to stay and for goodreason because of the significant productivi-ty benefits that can be achieved by "un-teth-ering" the broadband Internet. The arrival ofWireless Protected Access and, in the nearfuture, the full 802.11i security standard willbring much needed improvements to thesecurity of wireless LANs so that enterpriseand home users can deploy them with theconfidence that their valuable informationassets remain protected over the wirelessmedium.

Televerage International (TLI) is an informationsecurity and technology consulting services firm

serving small and medium business clients,government agencies, and systems integrators.

[email protected]

WIRELESS SECURITY, CONTINUED FROM PAGE 21.

NVTCNewsLINK

Page 24: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 24 May/June 2004The Voice of Technology

At the invitation of His Majesty KingAbdullah II of Jordan, the NorthernVirginia Technology Council hosted a

15-member technology trade mission toAmman, Jordan, April 12 through April 15,2004. The delegation was chaired by MikeDaniels, Sector Vice President of SAIC andformer Chairman of NVTC, and includedNVTC President Bobbie Kilberg, senior areatechnology executives, Virginia CongressmenTom Davis and Jim Moran, and State SenatorJeannemarie Devolites. Karim Kawar,Jordan’s Ambassador to the U.S., and MaherMatalka, the Director of the Economic andCommerce Bureau at the Jordanian Embassy,provided extraordinary support and assis-tance for the trip, and the delegation was priv-ileged to be hosted by int@j (the InformationTechnology Association of Jordan) whichorganized every aspect of our itinerary.

King Abdullah II met with 33 of NVTC's tech-nology company executives in September2003 for a very productive discussion. As a

follow-up to that meeting, this delegationtraveled to Jordan to forge new relationshipsand explore specific business partnerships.The delegation met with executives ofJordanian technology companies, KingAbdullah, Jordan’s government ministers,our American Ambassador Edward Gnehm,and with Admiral Dave Nash, Director of theProgram Management Office for the CoalitionProvisional Authority(CPA) in Iraq. AdmiralNash, who is in charge of all contract procure-ment for the CPA, flew to Amman fromBaghdad with his Military Assistant, ColonelBob Ferrell, to spend two days with our dele-gation.

The NVTC trip was designed for technologyexecutives interested in exploring businessopportunities in Jordan and joint ventureswith Jordanian companies. The emphasis wason U.S.-Jordanian partnerships for doingbusiness in Jordan, the U.S., and other coun-tries in the Middle East, including the utiliza-tion of Jordan as a gateway to Iraq. To foster

prospective partnerships, our individual dele-gation members had over 50 one-on-onemeetings with Jordanian company CEOs andit is expected that a number of business dealswill result from our delegation trip.

At the conclusion of the trip, the delegationmembers announced a $15,000 contributionto Jordan’s Discovery school program that isdesigned to provide technology and e-learn-ing to Jordanian K-12th grade students. Inaddition, NVTC proposed the creation of abusiness internship program for Jordaniancollege students and young business profes-sionals with Northern Virginia technologycompanies.

In addition to Ambassador Kawar andDirector Matalka, NVTC expresses its appre-ciation and thanks to int@j’s MarketingManager Bilal Abuzeid, Chairman MarwanJuma, and President and CEO Ra’ed Bilbessi.

NNVVTTCC TTeecchhnnoollooggyy TTrraaddee MMiissssiioonnttoo JJoorrddaann

NVTC’s Technology Trade Delegation and His Majesty King Abdullah II (center, front)

Page 25: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 25The Voice of Technology

NVTC’s Technology Trade Delegation to Jordan

Michael Daniels, Sector Vice President, Science ApplicationsInternational Corp. (SAIC) and former Chairman of NVTC

U.S. Representative Tom Davis, Member of Congress andChairman, House Government Reform Committee

State Senator Jeannemarie Devolites, Member of VirginiaSenate, Committee on General Laws

Cem Dogrusoz, Business Development Director, Europe andMiddle East, Comsat International

Joe Draham, Vice President of Government Relations andCongressional Affairs, GTSI

Otto Hoernig, President and CEO, SpaceLink International

Les Janka, President, Les Janka International

George Kappaz, President and CEO, Comsat International

Bobbie Kilberg, President, Northern Virginia TechnologyCouncil

Jonathan Kilberg, Director of Technology Investments,Overseas Private Investment Corp. (OPIC)

J. P. (Jack) London, Chairman, President and CEO, CACIInternational Inc.

U.S. Representative Jim Moran, Member of Congress andmember of Defense Subcommittee of House AppropriationsCommittee

Rob Quartel, Chairman & CEO, FreightDesk Technologies

Chris Rogers, Senior Vice President, Strategic Alliances,Nextel Communications

Dendy Young, Chairman & CEO, GTSI and Vice Chairman ofNVTC

Page 26: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 26 May/June 2004The Voice of Technology

TECHNOLOGY COMPANIES

Apollo Telemedicine7700 Leesburg Pike, Suite 209Falls Church, VA 22043(703) 288-1474(703) 288-1479www.apollotelemedicine.com

Application Corporation2230 Gallows Road, Suite 330Dunn Loring, VA 22027(703 )207-1020 (703) 991-1096www.hyperoffice.com

Cognition7011 Darby RoadBethesda, MD 20817(301) 237-0007(301) 365-8418www.cognitionmeanspatents.com

Corporate Technology Partners, Inc.5111-B Travis Edward WayCentreville, VA 20120-3057(877) 287-2874 www.ctpartners.com

Gric Communications47802 Scots Borough SquarePotomac Falls, VA 20165(703) 406-4656(703) 406-4656www.gric.com

GSES, LLC24752 Cutsail DriveDamascus, MD 20872(301) 253-0800(301) 253-0211www.gses.net

ICG Communications, Inc.8000 Towers Crescent Drive, Suite 1350Vienna, VA 22182(703) 286-3002www.icgcomm.com

JNetDirect12801 Worldgate Drive, Suite 500Herndon, VA 20170(571) 203-7275(571) 203-7276www.jnetdirect.com

New World Network4501 Singer Court, Suite 240Chantilly, VA 20152(703) 378-5111(703) 378-5088www.nwncable.com

Potomac Technologies, LLC13600 Dairy Lou CourtHerndon, VA 20170(703) 944-7864www.potomac-tech.com

PrimeSource3604 Van Station RoadOakton, VA 22124(703) 472-8337

Proxima Technology6414 Emerald Green CourtCentreville, VA 20121(703) 631-0299www.proxima-tech.com

Raya USA1660 International DriveMcLean, VA 22102(703) 288-5249(703) 288-5246

SED Technology LLC5410 Colchester Meadow LaneFairfax, VA 22030(703) 278-9322(703) 278-8331

Tiger Integrated Solutions Corporation14335 Sringbrook CourtWoodbridge, VA 22193(703) 475-8028www.tiger-isc.com

V-One Corporation20300 Century Boulevard, Suite 200Germantown, MD 20874(301) 515-5265www.v-one.com

ASSOCIATE COMPANIES

Davidson Capital Group, LLC1750 Tysons Boulevard, Suite 240Mc Lean, VA 22102(703) 556-8887(703) 556-6870www.davidsoncapital.com

First Horizon Bank1650 Tysons Boulevard, Suite 1150McLean, VA 22102(703) 394-2520(703) 734-2287www.firsthorizon.com

Ifour, LLC7600 Leesburg PikeFalls Church, VA 22043(703) 762-1848(703) 852-3903www.ifourllc.com

Ross & Moncure, Inc.726 North Washington StreetAlexandria, VA 22314(703) 549-5276(703) 549-6517www.rossmoncure.com

Technology Law Group, LLC5335 Wisconsin Avenue, NW, Suite 440Washington, DC 20015(202) 895-1707(202) 478-5074

Trinity Consulting Group International, LLC6029 Ridge Ford DriveBurke, VA 22015(703) 912-5618(703) 913-0633www.t3international.com

WilTel Communications - GovernmentSolutions510 Spring StreetHerndon, VA 20170(703) 268-7506www.wiltelgov.com

AFFILIATE COMPANIES

CommerceNet4419 P Street NWWashington, DC 20007(202) 342-7838www.commerce.net

Egypt IT Trade Liaison Office53 Manial Street, 3rd FloorCairo, Egypt +2-02-532-5330+2-02-532-5335

Hungarian Technology Center8300 Boone BoulevardVienna, VA 22182-2633703.748.7156703.847.0816www.htec.hv

New Century Partners, Inc.1323 Merrie Ridge RoadMcLean, VA 22101(703) 276-1715(703) 251-7811

RENEWING MEMBERS

A.G. Edwards & Sons, Inc.Advantage Consulting, Inc.

Analex CorporationAntonelli Terry Stout & Kraus, LLP

Avman Systems, Inc.Bamboo Solutions Corporation

Barbados Investment & Development CorporationBB&T

BTC Management SystemsCarnegie Mellon University - Chief Information

Officer InstituteCavalier Business Communications

CB Richard Ellis, Inc.Claraview, Inc.

Claris Capital, LLCColumbia Lighthouse for the Blind

Comsat InternationalDickstein Shapiro Morin & Oshinsky, LLP

Direct Holdings Americas Inc.Enlista Corporation

Epiance, Inc.

Page 27: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

May/June 2004 Page 27The Voice of Technology

Factiva, Dow Jones CompanyFinancial Computer Associates

FreightDesk TechnologiesGlobalization Partners International

GTSI Corp.Inova Health Systems

InPhonicJustinBradley Inc.KDDI America, Inc.

Ken Garnett Lee & AssociatesMerritt Group, Inc.MKS Software, Inc.

Morrison & FoersterNLX Corporation

Noesis, Inc.Northwest Federal Credit Union

PA Consulting GroupPiper Rudnick LLP

Qwest CommunicationsReed Smith, LLP

Robert H. Smith School Of BusinessSensoft International, Inc.SoltecOne Incorporated

Spectrum Solutions GroupStructured Technology Solutions, Inc.

TalantTransworld Systems, Inc.

Turner Construction CompanyUniversity Of Fairfax

WAM!Net Government ServicesWashington Resource Associates

Washingtonpost.Newsweek InteractiveZipzone Limited

NVTC Business Partner Profile

LEE TECHNOLOGIES

Lee Technologies has been helping companies ensure uninter-rupted operations and business continuity at mission-criticalfacilities since 1983. Our products, services and strategies

maximize uptime for the infrastructure that powers and protectstoday's data and communications centers. Lee combines technologyand expertise to reduce dependence on outside utilities and mini-mize susceptibility to human error, mechanical failure, and naturalor man-made disasters.

Reliability and maintainability are the hallmarks of LeeTechnologies' mission-critical solutions. Our offerings include elec-trical and mechanical products, equipment integration, site commis-sioning, and facility-wide service. In addition, Lee offers 24/7 remoteside monitoring, technical support and call management from ouradvanced National Operations Center.

Our every mission is mission critical, so we leave nothing to chance.From engine generators to uninterruptible power systems, securedata environments to access flooring and computer-grade coolingsystems, Lee Technologies is uniquely qualified to specify, select andsupply the right equipment for your high availability environment.From needs analysis to installation management to remote monitor-ing and beyond, Lee experts ensure that no detail is overlooked in thedevelopment and implementation of your infrastructure solution.

Our client list includes AOL, BellSouth, Booz-Allen & Hamilton,Department of Education, Drug Enforcement Agency, E-trade,Earthlink, Home Depot, Human Genome Sciences, Lockheed Martin,RCN, RoadRunner, Switch and Data, U.S. Postal Service, Verizon andmany more.

Our quality and dedication to service has been recognized by Inc.500, Washington Technology Fast 50 and the Washington BuildingCongress, and our CEO, John C. Lee, IV, was awarded Ernst & Young'sGreater Washington E-Services Entrepreneur of the Year for 2000.

www.leetechnologies.com

Page 28: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

Page 28 May/June 2004The Voice of Technology

NVTC awarded Lee Technologies withits 2004 Volunteer Service Award onApril 22 at the annual Volunteer

Fairfax event supported by the NVTCFoundation. Created in 2000, the annualVolunteer Service Awards recognizes compa-nies and individuals making a difference inthe community.

"I am pleased to recognize an NVTC memberthat has been active within our own organiza-tion and that has been dedicated to this com-munity for over 20 years. All of our nomineeshave demonstrated an outstanding commit-ment to community issues and development,"said Dan Bannister, NVTC FoundationChairman.

The NVTC Foundation had three finalists thisyear: PEC Solutions, Cox Communications,and Lee Technologies. More than 700 peopleturned out at the breakfast event at the HiltonMcLean to celebrate volunteerism.

Lee Technologies demonstrated its commit-ment to the community through a series ofunique programs that made financial com-mitments to local charities and non-profitorganizations, and by allowing employees tospend company time volunteering with localcommunity groups and schools. The compa-ny also has a policy of encouraging individualemployees to donate money to charities oftheir choice and offers a matching programfor any donation. Lee Technologies presidentJohn Lee is NVTC’s Vice Chairman of theBoard.

"We know that there are many companies outthere taking an active role in the community,"said NVTC Foundation President PamDudley, “and we look forward to continuing

this program that gives companies with com-munity-based involvement some well-deserved credit. We encourage our membersto submit nominations. It is a great way forcompanies and employees to gain recognitionfor their hard work and service."

Previous winners of the NVTC FoundationVolunteer Service Award include LeapFrogSolutions and Northrop Grumman MissionSystems (2003); Sensei Enterprises (2002);Landmark Systems Corporation (2001); andComputer Sciences Corporation (2000).These companies have all been active anddedicated members of the community, donat-ing money, resources, and employee time, andmaking an impressive commitment to theregion.

To learn how to become involved with theNVTC Foundation or become active in thecommunity, please visit our Web site atwww.nvtcfoundation.org.

To nominate a company for the 2005 NVTCFoundation Volunteer Service Award pleasevisit www.nvtc.org/Foundation/volunteer.

Lee Technologies Wins 2004Volunteer Service Awardsby David Baker, NVTC Foundation Assistant

Brodeur WorldwideCFO Awards

Cisco Systems - DynCorp - Northern Virginia Regional

Partnership - Microsoft

AT&T * Allen Systems Corporation *Adjuvant * Best Buy Foundation *

Terresa Christenson * Cyveillance *Digital Paper * Northwestern MutualLife * Jonathan Shames * TranTech *

Vistronix

Adonix * Tracy Bayard * Burke Consortium* Erika Christ * Greg Cirillo * Completed

Systems * Consumer ElectronicsAssociation * Stewart Curley * Lee Dudley *

Fortivo Corporation * Gardner Carton &Douglas * Genesant Technologies * Global

Network Services * GTSI * HoustonAssociates * INDUS Corporation *Deepak

Hathiramani * Jim LeBlanc * Greg andSusan Lewis * Long & Foster * Warren

Martin * Pat Melton * John Mendonca *Mindbank * Phil Mottola * David Nadler *

NVTC Staff * John Palatiello * PillsburyWinthrop * Alex Pinchev * Dean and

Cynthia Rutley * The Segal Company *Robert J. & Lauren P. Smith * SoftwareArmada * Pamela Sorensen * Staas &Halsey * Summit Services * TRAINING

SOLUTIONS, Inc. * Tony Trujillo * UpdataCapital * The Venable Foundation * Greg &

Louise Wager * WebSurveyor * MattWickham * Wirthlin Worldwide * ThadWolfe * Dendy Young * Frank G. Zarb /

Sarah T. Chassen

John Backus Dan Bannister

Art & Kathy Bushkin Caren Dewitt Merrick / Phil Merrick

Dan Gonzalez Bobbie Kilberg

LeapFrog SolutionsLee Technologies

Mario Morino Kate and Duffy Mazan

Morgan Lewis & Bockius PR Newswire

Spector Knapp Architects United Bank

Thank you to ourNVTC Foundation

Contributors"I am pleased to recognize an NVTC member that has been active

within our own organization and that has been dedicated to this community for over 20 years.”

Dan Bannister, NVTC Foundation Chairman

Page 29: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this
Page 30: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

What is the greater threat, the TCP hole in theInternet, cyberattacks or spyware?!!

Recent reports seem to indicate that a vulnerability inTCP, the transmission control protocol for the Internet,is the greater threat and could encourage widespreaddenial-of-service attacks. As one publication put it, thisdevelopment "could shift the current interest in usinghigh-layer security protocols like secure sockets layer asvirtual private networks" and that "since SSL andSSH1/SSH2 do not prevent a TCP connection re-start" itmay be "better to use Layer 3 cryptographic solutions,such as IPsec, to create secure TCP sessions." Right.Sounds like the precise prescription for taking thatthreat off the table has been written.

What about cyberattacks, Blaster, Slammer and worse?About half of Americans said in a 2003 survey that theyfear cyberterrorism against banking, electrical, trans-portation and water system networks. So it was reas-suring to see that George Newstrom, Virginia'sSecretary of Technology and chairman of the SecurityCommittee of the National Association of State CIOs,was setting the record straight on Capitol Hill.Newstrom told Congressional investigators that com-munications and cyber alerts to states have gottenexponentially better since the U.S. Department ofHomeland Security was established in 2003. But he andothers warned the House Homeland SecuritySubcommittee on Cybersecurity, Science and Researchthat there still was fragmentation in information andwarnings from multiple federal sources. Still, isn't thevery existence of a Cybersecurity, Science and ResearchSubcommittee reassuring?

That leaves us with spyware, which sounds much moreominous, and not just because it has a cool name thatlets everyone conjure up really bad abuses. Reportsabout "spyware," loosely defined as software that trackswhat computer users do online, have exploded. Onerecent survey found close to 30 million spyware pro-grams on more than a million computers in a three-month period – nearly 28 programs for every comput-er! What is an unwitting Internet user to do?!

A start, of course, is to read the survey a little further.The "close to 30 million" includes almost 24 millioncookies, the small data files Web sites place on comput-ers to store information. And, of course, because cook-ies are not programs and cannot control computerfunctions, they are not software. Still, that leaves nearly6 programs for every computer! Alas, the vast majorityof the remaining programs are adware that track con-

sumer preferences, while other programs give parentsblocking controls, allow businesses to use Internet-based security services and provide users of auctionssites alerts about bidding underway.

Real spyware, the deceiving, fraudulent kind, can recordwhat an individual types on a keyboard, thereby cap-turing credit card numbers or passwords, or even turnWebcams off and on remotely. Much spyware is down-loaded along with file-sharing programs. (Read the fineprint before clicking "Agree.") But the Federal TradeCommission has concluded criminals still prefer othermethods of activity that already are against the law andthat spyware doesn't warrant separate regulation.

So why are there new spyware bills in Congress and anew law in Utah, home of the tax Internet sales coali-tion, if spyware is such a limited threat? Advocates sug-gest a new law is needed to make illegal the installationof any software on a computer without a user's consent.In Virginia that already comes under the rubric of com-puter trespass. The problem in the Utah law, for exam-ple, is that the legal definition of spyware is so broad asto interfere with legitimate software tools users want.

Is that a parent or a child using the keyboard who needsto be notified that there are blocking and filtering toolsautomatically being engaged at the instruction of theparent? Can a criminal suspect refuse consent to the useof court-ordered monitoring software after it is man-dated he be warned? Are Internet messaging monitorsand pop-up notices spyware and, thereby, a damaginginvasion of privacy? Can employers continue to monitorInternet use by employees without continuous notice orrely on filtering software that generates a pop-up noti-fication?

The law of unintended consequences overwhelms anygood intention here. And the sad truth all have learnedfrom criminal hackers and spammers is that the realdeceitful, fraudulent spyware providers don't really carewhat the law or regulations are. In old tech parlance, it'swetware that is the threat. Humans always provide thedifference between use and abuse.

Suddenly, It’s Spyware

Page 30 May/June 2004The Voice of Technology

Douglas Koelemay is senior advisor to NVTC andmanaging director at Qorvis Communications, LLC.

Page 31: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this
Page 32: Wireless Communications - · PDF file · 2013-05-17wenty years ago I first had the pleasure of being involved with the world of wireless communications. The advancements over this

TThhee NNoorrtthheerrnn VViirrggiinniiaa TTeecchhnnoollooggyy CCoouunncciill22221144 RRoocckk HHiillll RRooaadd

SSuuiittee 330000HHeerrnnddoonn,, VVAA 2200117700

wwwwww..nnvvttcc..oorrgg((HHoosstteedd bbyy PPaattrriioottNNeett))

PRESORTED STANDARDUS POSTAGE PAID

MERRIFIELD VAPERMIT# 2453

THIS IS YOUR LAST EDITION OF

THE VOICE OF TECHNOLOGY!

RENEW YOUR MEMBERSHIP TODAY!