AT&T goes to war with the US over Time Warner (The 3:59, Ep. 320)
AT&T goes to war with the US over Time Warner (The 3:59, Ep. 320)
2017-11-21
and good morning on Thursday November
21st it's episode 320 of the 359 podcast
I'm BVG and your host today are alfred
and roger cheng good morning guys
hey yo what up morning that's Tuesday is
it yeah it could be I mean for me it's
the last day of the week so that's
awesome
ouch what screw you sorry anyways what
are we talking about today every time
we're gonna be talking about 18t going
to war with the US over in the US
Justice Department over its ability to
by Time Warner we're gonna talk about
the HBO hacker the alleged hacker who
had stolen and released a bunch of
scripts for Game of Thrones as well as
episodes of ballers and Curb Your
Enthusiasm and Alfred wrote a nice
little tip sheet on advice you want to
give your parents over Thanksgiving
about security we just want to reference
it we don't a story out yet but it's
breaking news the FCC has circulated the
order to essentially just mantle the
existing net neutrality rules you know
we'll kind of forget it on the podcast
we don't the story on it yet but
obviously happy news oh it's coming
right but obviously we're will hat we're
happy to take questions on that as well
although a lot of these sort of early a
lot of hearsay well I hear say so as
always if you have any questions leave
them in the comment section right we'll
pick up the best we will try to answer
them in 3 minutes and 59 seconds and
here we go for the recording we back see
in the chat in 3 2 welcome to the 359
I'm Roger Tsien I'm Alfred Eng 18 DS bid
to become a major Hollywood player just
hit a big snag the Justice Department
sued 18t to block its 85 billion dollar
acquisition of Time Warner citing
antitrust concerns the telecom giant has
vowed to battle the u.s. in court which
should make for an interesting showdown
come 2018 yeah I mean it's it's
incredibly interesting that you know
AT&T and Time Warner's now I guess like
the the crossroad of
we're fighting for freedom of speech
even though this is also like a major
merger that would kind of like go
against that as well yeah it's it's a
weird situation
you know the
the argument that the Justice Department
has made is that you know this this
would create a company that most both
owns the content and distributes it and
that's way too powerful but there's been
a lot of chatter that this is really
about President Trump and his hatred for
CNN fake news CNN and and so a lot of
people are finding themselves in that
awkward position where they're like
we're really against you know these big
mergers we're also not so happy with
Trump meddling yeah they're they're
stuck in between a rock and a hard place
here but I mean I would kind of have to
agree with it where they're getting like
way too much content for I mean even
even if you take CNN out of the fact
that when they're saying you should
divest you know just just Turner
Broadcasting I mean how much does that
leave AT&T in the merger if you know
they were even to agree to that I mean
so far they've said that any kind of
divestiture to that extent is a
non-starter even CNN alone is something
they would not agree to and you know I
was on the conference call with the CEO
he sounded pissed he was angry yesterday
and he was shocked and so it's covered
it's a weird situation for everyone
yeah I'm looking forward to saying this
fight though yeah it's gonna be a
glorious battle come 2018 all right next
up hacker the alleged hacker who went
broke into HBO's servers and leaked
scripts for Game of Thrones and
unreleased episodes of Curb Your
Enthusiasm and ballers was indicted by
the Justice Department which is having a
really busy week apparently Alfred you
wrote about this what's the latest
essentially they charge an Iranian
citizen who had worked for the Iranian
military in the past you know he had
hacked on behalf of the military
attacking other armies he attended
nuclear software systems and Israeli
infrastructure he was also a part of a
infamous hacking group that basically
defaced US websites saying you've been
hacked by this law carrier Iranian
hacking group and then he turned his
focus to HBO where he basically I mean
as you know the story goes he leaked
Game of Thrones episodes leaked Curb
Your Enthusiasm then demanded six
million dollars in ransomware from HBO
not in not in ransom or just in Bitcoin
right and just
just to clarify like if he's you know if
he's hacking other intelligence agencies
I assume
hacking HBO's like nothing yeah this
attack actually wasn't that complicated
according to the indictment at least he
had basically targeted HBO employees who
had access to HBO's like computer
servers yeah so he never like broke
through HBO's firewalls or anything like
that he basically targeted the weakest
links and found that they had access to
to all these files and then he went
after them
so speaking of hacking Alford you put
together this nice little tip sheet for
folks going back home to their parents
what are some of the what is some of the
top tips that you would suggest talking
about with your parents when it comes to
cyber secure keep it simple
phishing is as you know is basically
basically responsible for like 90% of
the reason why people got hacked and
that usually happens over emails it's
when there's a suspicious link in an
account and usually you know they're
pretending to be something that you do
use like right you know here's the
tracking for your for your package
that's been delivered but it's actually
not from Amazon it's from a hacker who
wants your account information you click
on and it goes to a page that looks like
it's Amazon so the tip that I have for
that is essentially don't click on the
link in the email and if you get
something like that and you want to go
check it out just go straight to Amazon
or go straight to Netflix or whatever it
is that's like coming and then log in
through that channel that's an extra
step but it's a lot more secure
definitely a nice bit of practical
advice for more of that story
check us out seen it on Roger Chang I'm
alfred Aang thanks for listening so is
anybody going home for IT season I mean
Christmas season this year visiting for
holiday I'll be I mean I will be yeah we
back in that way might be missed my joke
though how you go home and I'm not going
home to celebrate the holidays with
family I'm going home to provide free IT
service to all of my family oh yes I
mean definitely yeah my parents
computers are beyond salvation if you
look at my my story there's a tweet that
I embedded in there my father of my
dad's laptop he got it in a month he got
it like all that happened in a month I
don't know how he did that yeah it was
almost as if he went on purpose to
install malware on his computer but I
there was nothing there was like nothing
I could do for him the
which is like I gotta get out of here
I'm sorry if you want to send your
laptop to me so I have like more time to
handle this but like I can't do this in
a day dude no it's bonkers to me I I've
I've gone home before and then blamed
for viruses on a computer that I
physically never touched it was in the
email you say yeah must have been right
so anyways go ahead and submit questions
and comments we'd love to hear from you
in the meantime what do you guys think
about this HBO situation
being that I'm not a big Game of Thrones
fan I don't have perspective on this
yeah
is this guy a hero for leaking episodes
or a villain oh okay good I wouldn't
agree either yeah yeah and I noticed
somebody in the comment is mentioning
that this was actually done by four
hackers that were arrested in India that
was actually for an unrelated incident
that was a separate hack of HBO they've
been in multiple this was something that
we've been following since when it
started in July got in yeah yeah like so
long well to be all right if you if you
want to go through like the actual the
real timeline so he started sneaking out
HBO employees in May and then sometime
between May and June he had gone access
and he started like collecting all the
files and then in July he sends the
ransom note where he has like the night
King oh yeah HBO is a fan that's kind of
the perfect image to use we're I guess
we were holding up HBO for ransom
because it's sort of like a what I could
think of a dare you write so what leaked
would change your mind about this
individual would you Herald him as a
hero if he actually leaked something out
that you wanted I don't know there be
anything that would change your
perspective altima the guys doing it for
money yeah it's not like a noble cause
he's just trying to make a buck and it's
true maybe there was some like giant
scandal that they're hiding I'd like to
say yeah there you go
yeah yeah yeah like HBO had conspired I
don't know
put down Danny I have nowhere to go on
that one yeah I mean that's it's
several HBO execs we're basically in an
email chain or basically like we hate
George RR Martin's at interpretation of
the ending we're gonna make it the way
we want to oh yeah that would because
that Larry David shows up yeah we was
intended to make sure that it leaves
things open for the 15 spin-offs for
creating guest guest director Michael
Bay yeah I would I would apply I would
applaud back or if you somehow managed
to uncover the strata conspiracy to
bring Michael Bay onto the Game of
Thrones Oh franchise ouch all right more
explosions so I I don't really have a
question but I'd love to hear more about
this 18t Time Warner merger because this
seems like a really mega gray area
because I don't know how much I love the
idea of this giant conglomerate I mean
this is drifting towards monopoly is
Aman the kind of root for Trump in this
one yeah it's a weird situation for a
lot of people the thing of it is the
Justice Department usually has to they
have to have a pretty good reason to
block when these deals and ATT argues
and they make they have a point here is
that ATT is they're not buying a
competitor right Time Warner and ATT or
two different businesses you know one
makes content one distributes content
those influences can for sure but they
argue that at least when you look at
sort of the letter of the law and how
the Justice Department has to interpret
the law they argue that there's 50 years
of precedent that shows that they should
not block this deal now I mean precedent
could be thrown out the other of the
counter argument is when you own both
the content and the distribution also
you are a huge threat to those
competitors of yours who also want
what's fair doesn't AT&T also own like
DirecTV yeah wasn't that one yeah that's
another pipe though that's not DirecTV
aside from a few exceptions don't make
their own content yeah and I believe
that's one of the but reportedly that's
one of the divestiture is that the
Justice Department yeah I would I would
like make the argument that it is the
same like company because they own
something that like would benefit
greatly off of that no but that's not
the same company they don't compete it
Time Warner does not compete against
direct attack - yeah but I'm saying like
like if they did merge and then out of
nowhere there just comes like you can
only get HBO you know like CNN etc if
you have DIRECTV right and that I mean
that's argument to 18 she was trying to
make that there's no way business sense
that would work right but yeah that's I
think that's it's not necessarily like
they would hold back like content I
think it would be more the fear is that
they would charge for that content
charge a higher rate to save Verizon or
Comcast to carry Game of Thrones ratio
and that's those costs get passed down
to the customer right that's a big fear
80s he says no there's no real there's
no way the market dynamics wouldn't
allow us do it but that's the concern
that feels like walk down playing
themselves on a absolutely we're not
smart enough to figure out a way to get
more money it's less we're not smart
enough and it's more competition
wouldn't allow us to do it at a time
where like other services or other
over-the-top services are coming on and
they're they're cheaper yeah yeah Watson
wants to talk more about HBO he says I
doubt HBO would have actually paid any
ransom they seem like a weird company to
target and even if they did wouldn't
that just mean that more people would
think like maybe I should know target
yes Bo yeah I mean like we don't
negotiate with I've been following this
whole like attack for a really long time
now
well since the summer at least it was a
lot more interesting to me than Game of
Thrones west boy well they they they've
explicitly said you know we're not going
to pay for this we're never going to pay
for this there was one scenario where
the hackers leaked out an email from HBO
to them saying like hey thanks for you
know finding these flaws in our system
here's a 250 thousand dollar bug bounty
bug bounty basically like here you go
like we're not gonna pay six million
dollars but you know here's 250 grand
and then the hackers basically said no
like we want the full six million and
then when I asked HBO about that we'd
email they said that was a diversion we
never we were never gonna give him the
money we just wanted to stall for time
on that so I'm inclined to believe HBO
on this one because yes that that is the
nature of how ransomware and a lot of
these attacks go
no it's not this is just yeah but like
ransomware attacks work in the same way
where it's like if they know that
there's like money fountain here like
they're gonna keep like going after it
yeah like though how easy it was for him
to break in initially I would I would
have to assume that you know like other
people would look at it as like a prime
way to I mean that's make some quick I
don't why I mean I think you mentioned
in your Thanksgiving story like why you
don't yeah essentially encourages more
attack yeah which is counterproductive
at the end of the day
frosty flake has a little commentary on
our story about the eighteen T Time
Warner merger okay sorry the Department
of Justice has the common interest of
the consumer as a primary interest and
the history of cable negotiate
negotiation tactics and are favoring for
Department of Justice on the side of the
consumer I don't know I mean that's 100%
true and how do you feel about this yeah
III feel inclined to agree with that I
feel like if it were a different White
House staff and you know one that didn't
criticize CNN all the time people would
look at this and say you know yeah that
makes sense there you have this merger
would give AT&T way too much power a
great job I mean I think what he's
saying historically though yeah yeah I
also blocked the AT&T t-mobile merger
yes I did but that that was a merger of
direct competitors right like that one
made a lot of sense they did let through
the Comcast NBC Universal deal yeah
right another combination of a
distributor and the content company you
dog you a bigger one right NBC is a big
for national broadcaster with a lot of
local channel yeah so I mean 18 t kind
of points to that and it's funny cuz 18
t I think actually went and I think they
disputed that deal a few years ago so
what that deal was going through at 18 T
objected to it this this time they're
saying well it's a different situation
because Time Warner is not a big
broadcaster and it's you know they're
definitely look there are definitely a
lot of concerns I think people have
about the power of the ATT
at the end of the day do you think that
this deal is going to go through I think
it will be a tough case for the
Department of Justice
to me I think it's gonna be heavily
reconfigured as far as turning
could be but I think it will ultimately
go through it'll take a long time though
linear to eighties I mean they're one of
the most litigious not litigious they're
they have one of the most largest and
robust legal staffs around and so they
already said on the call they're like
we're ready we want to do this now
our lawyers are renting a conference
call with 2,000 lawyers if you have they
said like they want like they they're
hoping the the fastest possible scenario
is within 60 days or like we wanted like
now like right away that's not gonna
happen
yeah there's no way in hell 60 days is
plausible I think now I don't know I
think it's gonna be at least a year no
no not to just to get things started
oh I see that's actually that's actually
like wrap things up like no way they
want to be in court within 60 days so
surprise surprise there's a few people
in the chat who are not huge fans of
spectrum as a company oh yeah I can't
imagine spectrums yeah how is it I'm
like not really home that often using it
to be fair but also you're like the
ideal customer yeah very much you just
pay the money you don't user services I
use it on the weekends and at nights
what yeah I don't know it's been fine I
feel like I paid way too much for it but
I feel I would I feel like I'd feel that
way for anything that I buy ever so
that's true it's fine and I pay way too
much for it is that's my motto for mine
it's just fine I finally so it's I am
NOT a fan of having to pay for the modem
though it's a deposit used to not be
standard and the thing is that I could
buy my own modem and not have to deal
with that but they don't know you need
what modems are compared so don't really
let you they're like they really yeah I
know offering advice on I keep asking
like okay so what modems can I get and
like well if you go on our website like
can you send me let me if I won't even
light because there's like a proprietary
hookup that's how much a month do you
pay for the modem a few bucks
that's ridiculous as soon they're gonna
start charging like oh these it's a
special ethernet I mean they pay you pay
for the deck you pay for a set-top box
too I mean it
I don't I don't that's why I cut the
cord there's just a lot of extraneous
expenses this is why cable is killing
itself yeah and this obviously goes well
beyond cable because it's your also your
internet provider and so on and so forth
but maybe they do this to themselves
back to ATT that's why they've been
harping on DirecTV now they're over the
top service because even they admit like
it cost - 10 installers to send to buy
set-top boxes to send to people like do
it all online yeah it's just cheaper yep
frosty flake is one up me I said it was
gonna be at least a year or two for the
AT&T deal to go through and say in at
least five years no no no these things
go through a lot faster than that it's
like it's definitely not five years
they're sold this will be like it I'm
guessing a year but okay I don't I don't
think it's gonna be five years hey you
know in five years time that's maybe
when the game of thrones will finally
end all right we only got a few minutes
left but we got a good question from
syringe Oh our new friends turned joy
wasn't there an issue raised by
Bloomberg saying that they were pushed
down in the channel listing by Comcast
below NBC out of alphabetical order I
don't nothing I don't think they do
channel listing by alphabetical order
yeah no I think the chalices are done by
your channel yeah I don't know if I
don't use Comcast I don't know no
details about that is he referring to
Comcast er yes yeah right none of us
live in a Comcast territory so it's kind
of like I I've never had the experience
sorry yeah sorry same here Matt asked
does anyone remember how week 18 T was
before the iPhone then they had that
exclusive deal it's a weaker company and
they won't admit it or they want to
admit another AOL another future failure
for Time Warner oh well AOL I always
just love pulling up the shade out of
the chat I forgot about AOL Time Warner
that's like the worst deal ever and look
how that turned out yeah I mean look
it's time 18 t niceties are right on the
wall they look at the wireless business
t-mobile's kicking their butts even
Sprint's starting to do better there's
not a lot of growth there so they want
to get into the entertainment business
because there's still a lot of value in
creating your own content so it's ATT
trying to do what they're trying to do
to evolve but we'll see if that
you know if regulators will allow him
yeah I don't know I don't know man not a
big fan of Specter myself I'm kind of
hoping maybe some new management will
shape that up I mean it's like I don't
like that in my neighborhood it's the
only thing I can get in my neighborhood
I don't have options where I live I can
get FiOS method I knock she says Garcia
I have art I had RCN in my apartment all
right I had the option not to my
knowledge where I'm in Queens but I
guess I'll have to look again best part
about spectrum is that they're also
under indictment from the Department of
Justice in New York right now for exact
same things that we were talking about
like advertising like really high
download upload rates and then yeah
delivering on it yeah so yeah that that
trial still going on so III pay for this
we all pay for this yay
and they get away with murder they
really really do all the services due to
an extent but some actually deliver
something worthwhile and I wouldn't be
so great be about it if I didn't lose my
internet two to three times a week you
like your recession or whatever just
dropped yeah yeah that's that's look
that's a legit problem yeah I'd be I'd
be annoyed about that that that hasn't
happened to me yet maybe it happens when
I'm not home or something like that but
yeah my only gripe with my internet
currently is that like my new apartments
way larger and it doesn't reach me in
the living room anymore yeah well I
don't think that's their fault I mean
even for a while hey I had my own modem
and after I want to say about six months
of usage on it it just started to fail
and it wasn't a hardware failure because
I checked like the signal is still
passing yeah but they must have somehow
D proprieties it I'm not sure Danny
green brings up in the chat that when he
got spectrum they offered they gave him
a modem that wouldn't do 300 megabits
per second which is what they advertise
and that was in the so even if they were
sending it down the pipe the Box they
provided yeah that was a brick wall that
was that was in the indictment to where
it was basically they were providing
modems that could weren't even
technically capable of providing that
speed Wow
shucks
oh my god it was so it was there was so
much in that indictment times good time
we should revisit that yeah we should we
should bring that up as like an extended
conversation someday when it's a slow
news day but until then we're just wrap
things up all right burgers all right
have you liked anything you saw or heard
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Music joining us everybody not me cuz
I'm off oh yeah oh and just before to
clarify tomorrow will be our last
broadcast before the Thanksgiving
holiday and they'll be back next week so
tomorrow Wednesday and then back by the
sounds of it we'll have to keep you
posted keep an eye on the Twitter
because we have some scheduling stuff
coming up so anyways thanks bye bye all
you
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