http://www.osopinion.com/perl/story/16316.html

Comcast Admits To Spying on Customers

By Tim McDonald
www.NewsFactor.com,
Part of the NewsFactor Network
February 13, 2002

Stored data can be subpoenaed by law enforcement officials or by lawyers in
civil cases - and it can be stolen.

Cable Internet giant Comcast (Nasdaq: CMCSK) reportedly has begun tracking
the Web browsing habits of its customers, keeping records of every Web page
they visit. The company has roughly 1 million high-speed Internet customers.

The third largest cable TV company behind AT&T Cable and AOL Time Warner
(NYSE: AOL), Comcast admitted that it stores the Internet Protocol (IP)
addresses -- unique numeric Internet addresses assigned to subscribers --
along with the Internet address of every Web page subscribers visit.

Jeffrey Chester of the Washington, D.C.-based Center for Digital Democracy,
a nonprofit watchdog group, called the tracking "incredibly aggressive."

"It's not a surprise they are tracking what people are doing, it's just the
tip of the iceberg," Chester told NewsFactor. "The next generation of
broadband services provided by Comcast and others allows for this kind of
tracking. The whole business model moving forward for cable and the
television industry generally is one which emulates the deeply personalized
e-commerce strategies."

Sensitive Information

Comcast also said it stores sensitive information, such as credit card
numbers and passwords, in a database managed by network infrastructure
specialist Inktomi (Nasdaq: INKT).

Stored data can be subpoenaed by law enforcement officials or lawyers in
civil cases -- and, as has been proven several times, it can be stolen.

For example, last week, a database with thousands of records involving
potential Comcast Business Communication Internet customers was found
exposed on the Web.

Comcast said the snooping was part of a technological overhaul launched to
save money, according to wire service reports. However, Inktomi, which sold
the technology to Comcast, asserted that Comcast was collecting more
information than was absolutely necessary for technological enhancements.

Leading Role

Comcast claimed the tracking is permitted in its service agreement with
subscribers and said it does not intend to infringe on the privacy of its
customers. The company would not say how long the information it collected
was stored.

A company spokesperson said that customers' Web browsing is being recorded
in Detroit, Michigan, and parts of Delaware and Virginia, and that such
tracking will spread across the United States by the end of this week.

"Personalized television is really the cornerstone of the plan Comcast and
others have for the convergence of television with the Internet in the
broadband online medium," Chester said. "So, technologies are being
deployed, strategies are being developed, investments are being made in
hardware and software and applications all across the board -- and Comcast
is playing the leading role in that regard."

Excuse for Privacy Erosion?

Some civil libertarian groups have openly expressed concern about the
erosion of online privacy in the aftermath of the September 11th terrorist
strikes.

The FBI has been particularly aggressive in rooting out online evidence,
serving ISPs with warrants under a 1978 antiterrorism law.

"The privacy debate has been placed on the back burner, conveniently for
companies like Comcast, because of the concern over security since September
11th," Chester said. "As this and other incidents will undoubtedly show, we
need strong consumer safeguards when it comes to cable broadband."

More Cities 'Digitized'

Comcast announced a fourth-quarter net loss of US$321 million, due mainly to
its costly effort to migrate customers from @Home, the broadband Internet
service provider that recently filed for bankruptcy.

The company has said it plans to add more high-speed Internet customers and
is planning to spend $1.3 billion to get more cities "digitized."

Comcast made a winning bid of $72 billion for AT&T Broadband in December. If
the deal is approved by shareholders, the Federal Trade Commission and the
Federal Communications Commission, it will result in the largest cable ISP
in the United States, with 2.2 million high-speed Internet customers.

The combined company would be called AT&T Comcast Corp.



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