THE WILD AND WOOLLY WORLD OF CABLE, SATELLITE AND BROADBAND MARKETING

Increasing competition among cable, satellite, and broadband suppliers, combined with slower growth in consumer uptake because the industries have reached maturity, is leading to aggressive marketing efforts to wrestle market share from other companies.

If the leading companies followed classic marketing strategies, they would be offering consumers better arrays of networks and services, better customer service, and/or better prices in efforts to attract more customers.

Instead, many of the largest competitors have been engaging in acts that harm customers and consumers by using illegal and deceptive marketing practices and strategies designed to unwittingly wring greater revenue from their customers. Although the companies apparently think there are benefits in behaving badly, their marketing practices are increasingly getting them into trouble.

Aggressive telemarketing—which has always offended consumers—has landed a number of leading firms in hot water. Comcast and Direct TV have just admitted charges and are paying fines to the Federal Trade Commission for violating telemarketing rules by ignoring the federal do-not-call list. The FTC has also filed a suit against Dish Networks for similar violations.

Companies tend to advertise heavily when competition is high and ads for cable, satellite, and broadband services have helped the revenues of thousands of television stations, newspapers, and magazines across the U.S. Unfortunately, the veracity of advertising claims in cable, satellite, and broadband services has been widely questioned by consumer groups, governments, and other competitors. In recent months Bright House Networks filed a complaint with the Federal Communications Commission about the practices of AT&T, the National Advertising Division of the Council of Better Business Bureau chastised Cablevision for advertising claims after complaints from Verizon, and Verizon itself has been sued for misleading claims by NJ Division of Consumer Affairs.

The industry also sought to market different levels of broadband Internet services to customers and planned to charge different rates for users—a strategy that would allow them to advertise a low price even when many customers would have to pay a higher price based on usage. Plans by Time Warner, Comcast, Frontier Communications and other firms to offer tiered service plans have now been dropped after complaints by customers and legislators.

Cable and satellite firms have traditionally been mavericks and rogues in the media industries and many Internet service firms followed their example. Even though the industries have matured and the number of players has been significantly reduced through mergers and acquisitions, the wild and woolly world they created is still evident in their marketing practices.

We can only hope they will learn to become good corporate citizens—or at least firms concerned about their own reputations.

How to Stay Ahead of Hackers and Cybercriminals

My conversation with Jonathan Nguyen-Duy, Director of Product Management for Verizon, ended up being very thought-provoking. We were supposed to talk about a new security offering, a backbone-based solution aimed at stopping Internet-based attacks even before they hit a company's network. (I'd spoken previously to Nguyen-Duy about Verizon's risk-correlation service.)

Nguyen-Duy is a fount of knowledge about the changing landscape of international cybercriminals. Verizon is expanding its denial-of-service (DOS) detection and mitigation capabilities into eight network management centers serving 24 countries with new levels of scalability -- in part because of an increase in international cybercrime, according to Nguyen-Duy.

"Our customers are telling us that the frequency and complexity of DOS attacks has grown. We're now seeing cyberattacks based on social and political activism. We're also seeing less sophisticated hackers getting access to attack methodologies."

A case in point: consider the following related events.

Item: The Bureau of Alcohol, Tobacco, and Firearms, he says, recently arrested "the eBay of cybercrime" in Phoenix, Arizona which was selling automated attack programs, called botnets.

Item: A CIA official said at a conference that the recent power outages in South Florida were results of an unauthorized probe of the utility network originating from China.

Item: Crime syndicates are more frequently attacking financial services firms, online retailers, and government agencies for extortion purposes, in countries where there may be no laws or no enforcement of the laws.

"If you're a global enterprise or agency with deep pockets and a brand to protect, the challenge is real," Nguyen-Duy says.

"This gives rise to a clear problem: If you have a DOS attack that floods a device with five times the normal amount of traffic, do you have the capacity on site to parse through it and separate the legitimate traffic, and can you do it in real time so you don’t have degradation in service?" Remember that typical consumers won't sit through a transaction if they experience latency of more than 10 seconds.

Protection: Around the Clock, Around the Globe
No, we're not trying to write the script for Die Hard V here. However, because globalization is increasingly driven by the ability to share information anywhere, companies that take advantage of it are also making themselves more vulnerable.

Unless you want to deploy high-priced security experts everywhere you do business, it would be prudent to consider how expanded managed security services can protect your multinational communications network. And, thereby prevent the unthinkable from becoming a reality.

Managed Security with a Strategic Twist

Managed services provider Verizon Business has added an interesting twist to its security toolbox. Traditionally, managed security services are tactical: they monitor a network for potential attacks, using virus signatures and other definitions.

Earlier this month, Verizon upgraded its customers' security capabilities with what it calls its "Risk-Correlation Service," designed to add strategic insight to security.

The RCS works with vulnerability scans -- either those it does for customers or those from vendors such as McAfee, Qualys, and others -- to determine where potential vulnerabilities exist. The service also documents your system to create a map of devices and the business processes that run on them. "It marries threat information with vulnerability information," says Jonathan Nguyen-Duy, Director of Product Management for Verizon.

Calculating Risks
The result is a Web-based scorecard that shows Verizon customers not only where potential problems exist, but rank the level of relative importance of those devices. "We can tell you the likelihood of an event on a particular device, but also the business process associated with that device," says Nguyen-Duy. "Using the information from the vulnerability scan, we can tell you about the impact on availability. Is the device running real-time transactions, or is it a database server that might have less sensitive information?"

Strategically, companies can use the information presented in the online scorecard to get a sense of where to improve their online protection. Not all information is created equal, and not every database server requires the same level of protection.

The scorecard is designed to help companies prioritize their security budgets and their business continuity programs. "With limited resources, it's important to understand the relative risk of each vulnerability," he says.

Protection from Attacks
The online scorecard also works when attacks are underway. In those instances, it helps customers work with Verizon to identify where remediation is most important. "Sometimes you have to work in real-time to figure out where attacks are happening," Nguyen-Duy says. "Your ability to respond is improved when you have better information on the threat and what business process might be affected."

Being proactive about security is like flossing your teeth; you know you should do it more often, but it doesn't always happen. Applying a methodology that combines both strategic and tactical security needs is very wise. Clearly, when it comes to security, it's easier to be reactive when you've already been proactive.

Besides, the complexity of providing comprehensive network security protection, and keeping it fully up to date, is something best left to the experts. That's why managed security is one of the most utilized managed service offerings.