Springfield, Mich., puts in its first antennas for a city-wide network: The network is being built with a $750,000 grant from a state development corporation to extend access and improve the business climate. Access will cost $10 per month for residents after an initial free period while the service powers up.

This is a critical distinction. Telecoms are covered under the Telecom Act of 1996 that requires non-discriminatory access to utility poles to avoid incumbent local exchange carriers (ILECs) and utilities from being gatekeepers that prevent competitive service from emerging. There are a series of tests in the law and local qualifications, too, that allow a firm to be a registered telecom. An FCC decision last year ruled that companies that mix telecom and unregulated information services on the same wires aren't disqualified from getting the Telecom Act deal, however.

But E-Path seems to meet none of the criteria except their desire to pay $10 instead of $50 per year per pole. Utility poles have held up many other municipal networks. We're not hearing more about them these days because such networks are now being built on a smaller scale for different purposes, where the number of nodes and their placement is rather different than networks built with the intent of providing indoor coverage.

Cablevision, by the way, qualifies as a telecom, this article states, which helps them in placing nodes for their planned $300m network across their coverage territory. They can also mount nodes in-line with their cable lines, using power from their cable plant on the lines already.

E-Path appears to have a variety of communication problems as well. The article notes, "Tortoretti said his Washington, D.C., attorneys disagree with LIPA's interpretation. But the attorney Tortoretti said represents E-Path, Charles Rohe, said he couldn't speak about the company or the dispute."

Later, E-Path's "chief executive said he hopes the county will help with his LIPA dispute." But an aide to the Suffolk County executive said, "That's not really our issue. That's out of our control."

Correspondent Craig Plunkett, quoted near the end, points out that if the counties were to change their minds and want to buy services on the network, the proposal would have to be rebid (appears as the sound-alike "rebuild" by accident in the online article at this moment).

Weldon, who is currently being investigated by the FBI over alleged corruption during his time in office, visited Libya in March to discuss a possible military deal, according to a letter describing the trip from Weldon to Defense Solutions CEO Timothy Ringgold. In May, Weldon, together with Ringgold and another company representative, traveled to Moscow to discuss working with Russia's weapons-export agency on arms sales to the Middle East.

Both trips were part of the company's effort to tap into the growing -- and often legally murky -- market for selling weapons from former Eastern Bloc countries to the Middle East and Afghanistan.

Ex-Rep. Curt Weldon, R-Penn., is helping broker deals between Russian weapons suppliers and the Iraqi and Libyan governments through his company, Defense Solutions.
Photo: H. Rumph Jr/AP

The Russians want to sell weapons to Iraq directly, but "must go slow on Iraq because of political reasons" and want to work with an "intermediary" like Defense Solutions, CEO Ringgold subsequently wrote to colleagues. "They have not spoken with any American company that can offer the quid pro quo that we can or that has the connections in Russia that we have," he boasted.

A few years ago, an American company proposing to sell weapons to Libya might have triggered a congressional hearing. So, too, would have a proposal to conduct arms deals with Russia, which the United States has accused of selling high-tech weapons to Syria and Iran.

However, U.S. government efforts to rapidly equip countries like Afghanistan and Iraq -- which have largely Soviet-origin weapons -- have created legal ambiguities and loopholes in export controls that didn't exist in years past and given rise to a new class of arms trade middlemen. So, even though both Libya and the Russian arms export agency are on official U.S. blacklists, government officials and analysts involved in weapons sales say the rules have become unclear as the push to equip allies in the global war on terror has blazed new but uncertain legal ground.

Eagerly stepping into that virgin territory is Defense Solutions, a Pennsylvania-based company that is carving out a small but lucrative niche in a new international arms bazaar. The firm boasts as its advisors a number of influential Washington insiders, such as retired General Barry McCaffrey, the former White House drug czar.

Helping the firm make key connections is Curt Weldon, a former Republican congressman from Pennsylvania at the center of an FBI investigation into alleged conflicts of interest during his time in office. Weldon, now a key executive at Defense Solutions, is working with the company to set up these weapons deals.

Defense Solutions has also proposed refurbishing Libya's BTR-60 armored personnel carriers, according to a sales proposal seen by Wired.com. Defense Solutions denies drafting a sales proposal to Libya.

It's an unusual, if not an entirely unexpected chapter for Weldon, whose time in office included frequent trips to Russia. As an influential member of the House Armed Services Committee, Weldon pushed for multibillion-dollar defense programs, like ballistic missile defense, and earned a reputation as a foreign policy gadfly, boasting of his contacts with officials in nations labeled by the administration as "rogue states" such as Libya and North Korea. Weldon's wild claims about a 9/11 cover-up and his sensationalist book warning of an Iranian terror plot, sometimes earned him official scorn and public ridicule, but it was accusations that he steered contracts to Eastern European businesses linked to his daughter's lobbying firm that drew the government's attention.

Weldon was voted out of office in 2006 just weeks after the FBI raided his daughter's home, and that of one of her associates.

Weldon did not respond to e-mails and phone requests to be interviewed or comment for this article. But in a 2006 interview, before the FBI probe was public, Weldon spoke enthusiastically about setting up a "front company" to work with the Russian arms agency, Rosoboronexport. Weldon hoped this company could sell weapons to the Middle East, and other regions, particularly to countries where the U.S. has strained relations. He claimed the director of Rosoboronexport approached him to work with "an American company that would act as a front for weapons these nations want to buy."

Weldon called the proposal an "unbelievable offer."

The administration, he acknowledged at the time, did not welcome the idea of an American company selling Russian weapons to potentially unfriendly countries. But two years later, Weldon, now a private citizen and chief strategic officer for Defense Solutions, appears to be working on precisely that sort of deal. And whether illegal or not, Defense Solutions' business represents a new phenomenon in the international arms trade business.

In years past arms brokers -- firms or individuals who serve as middlemen to facilitate weapons sales between countries -- were largely the stuff of spy thrillers. Unlike traditional American defense companies, like Lockheed Martin or Boeing, which typically sell weapons directly to NATO countries or other governments regarded as friendly to the United States, brokers are often small outfits run by people with sometimes questionable experience and reputations they will sell to anyone. One of the most infamous arms brokers, a Russian named Viktor Bout, is charged by the United States, United Nations, Interpol and others of funneling arms to terrorists and rebels around the world. He was recently arrested in Thailand. The United States is requesting his extradition on charges of supplying arms to a terrorist organization.

Two Marines lower the trim vane on the front of an Iraqi BMP-1 mechanized infantry combat vehicle that was captured during Operation Desert Storm. The American defense consulting firm Defense Solutions has proposed refurbishing Libya's aging fleet of BMP-1s. Defense Solutions denies drafting a sales proposal to Libya.

But ironically, Iraq has fueled a new market for these professional middlemen; the United States is funneling billions of dollars into modernizing Iraq's army so that the country's government can fend for itself after coalition troops withdraw. And Iraq's largely Soviet-equipped military is a natural market for Eastern European countries brimming with old or out-of-date equipment they would like to unload. The middlemen, in these cases, serve a key role by allowing the U.S. government to do business with an American company, which in turn buys equipment from Eastern Bloc countries in deals worth hundreds of millions of dollars, much of it financed with U.S. taxpayer dollars.

One of Defense Solutions' sales -- a deal to sell Hungarian-owed T-72 tanks to Iraq in 2005 -- was typical of these new foreign military sales. But on the more questionable side is the company's plans to work with Rosoboronexport, which is barred from doing business with the U.S. government, and Libya, which is still on the State Department's arms embargo list.

The Eastern European-Middle East arms-brokering business, while in some cases sanctioned by the U.S. government, has run into problems, including outright corruption and quality. Defense contractor Dale Stoffel, the president of Wye Oak Technology, and another American were gunned down in Iraq in December 2004 after Stoffel alleged that the Iraqi Ministry of Defense was involved in a kickback scheme. Like Defense Solutions, the company Stoffel worked for was refurbishing the Iraq's army Eastern Bloc equipment.

Another problem is quality. Weapons from the former Soviet Bloc, which the U.S. military euphemistically calls "nonstandard equipment," have been flagged as substandard, acknowledges Brigadier General Charles Luckey, who is in charge of security assistance at Multi-National Security Transition Command-Iraq. In an interview from Iraq, Brigadier General Luckey said: "One of the frustrating things about buying nonstandard [weapons], is that I'm the guy who has to deal with the fact that some broker I've never heard of allowed weapons to get to Iraq before they were inspected."

Defense Solutions is carving a new niche in the arms trade, selling Soviet-made weapons to Middle Eastern countries like Afghanistan and Iraq. Defense Solutions sold Hungarian-owed T-72 tanks to Iraq in 2005.

In one high-profile case, Iraqi officials alleged that a corrupt firm sold them $400 million in shoddy helicopters from Poland. More recently, a company led by a 21-year-old and a former masseur was offered a U.S. government contract worth nearly $300 million to sell ammunition to Afghanistan. The ammunition turned out to be outdated and of dubious origin and several people connected with the company have been indicted. A congressional investigation concluded that the company, which was on a State Department watch list, was able to take advantage of regulatory loopholes by using middlemen.

For those concerned about illicit arms trade, this new wave of weapons deals is rife with the potential for corruption and abuse, but for companies eager to pursue markets once regarded as dubious, it represents a lucrative business opportunity. The problem in these cases, according to those familiar with arms sales, is that it's no longer clear what's legal and what's not.

Rachel Stohl, an expert on international arms trade and a senior analyst at Center for Defense Information, says that in many ways, the rush to equip Iraq has led the United States to throw caution to the wind. She points to a report by the Government Accountability Office last year that found that some 190,000 weapons sold to Iraq have gone missing. "I think the reality is we won't know, until way after the fact, about all of these irregularities with the Iraq weapons provision program," she said. "We were providing them all these assault rifles that have gone missing. Why? They were not following the standard procedures that were in place."

But Iraq and Afghanistan aren't the only markets available to arms brokers like Defense Solutions. The gradual normalization of relations with Libya opens another door into a quasi-legal area of sales.

Like Iraq, Libya has a substantial arsenal of Soviet-origin military weapons, offering a potential market for brokers working with Russia and other former Soviet states. But even when there's not an outright ban, sales to the Middle East are often fraught with controversy, particularly to countries like Libya, which was under international sanction for more than a decade. Even as sanctions against it have been lifted, European companies proposing to sell arms to Libya have faced steep criticism, particularly since the country is still ruled by dictator Muammar Gaddafi, who took power in a military coup in 1969.

While the United States lifted Libya's "state sponsor of terrorism" designation in 2006, other restrictions, such as on the sale of arms, remain in place. A State Department spokesperson confirmed that exports of "lethal munitions" to Libya, such as tanks or related equipment, are still banned, although sales of nonlethal equipment are now allowed on a case-by-case basis.

In late March, Weldon traveled to Libya for a weeklong trip at the invitation of the Gaddafi Foundation, a group run by the son of Libya's leader, and the chairman of Libya's foreign affairs committee, according to the report he sent to Defense Solutions (.pdf), a copy of which was obtained by Wired.com. The trip reports states: "Agreement reached for Weldon to quickly return to Libya for meetings with son [of Libyan leader Gaddafi] Morti regarding defense and security cooperation."

A document dated April 16, just two weeks after Weldon's trip, outlines Defense Solutions' proposal to Libya to refurbish the country's fleet of armored vehicles, including its T-72 tanks, BMP-1 infantry fighting vehicles, and BTR-60 armored personnel carriers. A copy of the sales proposal, also provided to Wired.com, is on Defense Solutions' letterhead, appears to bear the signature of company CEO Timothy Ringgold, and is addressed to Libya's defense procurement council. "Defense Solutions is committed to delivering a full end-to-end solution to its clients," the proposal states. "Besides refurbishing these vehicles, we are capable of providing a full logistics support package, including a two year supply of spare parts, maintenance and repair services, and operator, maintenance, and repair training."

In an interview with Wired.com, Ringgold admitted that he's interested in doing business in Libya and confirms receiving Weldon's trip report from Libya, but denies drafting or signing an arms-sale proposal. "I've never made such a document to Libya," Ringgold insisted, after being read the proposal, and told that his signature is on it.

In addition to the Libyan arms-deal document, Wired.com has also reviewed copies of e-mails from Ringgold discussing the Libyan deal.

While Ringgold denies proposing an arms sale to Libya, he is open about speaking with Rosoboronexport, which has been on a U.S. government sanctions list since 2006, after the Russian state agency allegedly violated the Iran and Syria Nonproliferation Act. An April e-mail provided to Wired.com describes Ringgold, Weldon and Stephan Minikes, a senior advisor to Defense Solutions and a former ambassador, meeting with Rosoboronexport. The conversations included a number of potential deals, including supplying Mi-17 helicopters to Afghanistan and spare parts for Iraq's infantry fighting vehicles. Ringgold wrote to colleagues following the visit, describing the meetings as a "spectacular success," saying the Russian agency "has the ability to undercut all cost proposals from brokers."

Ringgold confirmed those discussions and said that his company has sought to do business with Rosoboronexport. Asked whether Ringgold considers his dealings with Russia to be legal, he argued that U.S. companies could work with Rosoboronexport on a "case-by-case" basis. "The particular purpose of the meeting we had -- and I want to be crystal clear -- was in response to a U.S. government requirement," he said.

A number of officials at the State Department and in the Pentagon, when contacted for this article, could not say whether working with Rosoboronexport is legal or not. A Pentagon spokeswoman said she was familiar with the issue, but deferred the question to the State Department. When asked about Rosoboronexport's status on the blacklist, John Herzberg, a State Department spokesman replied: "What's on there is on there."

Asked whether, given the ban, there was any way a company could legally work with Rosoboronexport, as Ringgold suggested, Herzberg provided an equivocal answer. "At the stage of the process we're at, I'm unable to give you an answer," he said. "You can try elsewhere in government, and maybe they'll be braver than me."

In an interview from Iraq, General Luckey conceded it was a murky area, but said, "My understanding is they are currently on our no-go list."

The confusion over debarred parties has even led the U.S. government into its own legal tangles, according to Jim McAleese, a Washington attorney who specializes in government contracting and foreign military sales. Because the Russian government violated U.S. nonproliferation laws, even NASA had to go to Congress to ensure it could work with Russia on Soyuz flights to the international space station. "What I'm warning you about is, don't be surprised by the confusion," McAleese said. "There are a whole bunch of different statutes that were adopted piecemeal and were never intended to be reconciled."

But it's the very ambiguity of the law that troubles those who monitor export control. "It's highly unusual to do anything with the Russians, particularly Rosoboronexport," said Scott Jones, director of Export Control Programs at the Center for International Trade and Security at the University of Georgia.

Legal or not, reputable American companies simply don't want to work with banned entities, Jones said, for fear of risking their reputations and business. "Even if it's not an outright prohibition, most companies don't want to put themselves in a liability situation that has really bad PR … and they stay away from it," Jones said. "But if that's your business, pimping out arms from the U.S. or Russia, that's the way it works, and you push as much as possible."

Finding any U.S. defense company working with the Russian government at this point would be "remarkable," Jones added.

In the meantime, the future for Weldon is unclear. The FBI investigation continues and Weldon's former chief of staff recently pleaded guilty to a conspiracy charge and is cooperating with the government, notes Melanie Sloan, the executive director of Citizens for Responsibility and Ethics in Washington, which filed a complaint against Weldon in 2004. Sloan speculated that Weldon may be charged with "honest service fraud" for misusing his office for personal gain. "It's an easier standard than bribery," she said. "I wouldn't be surprised [if he's charged] with bribery, but I think it will be honest services fraud."

Ringgold insists that he and Weldon are on the right side of the law. "Everything we do is in strict compliance with international and U.S. law and we operate only in the best interests of the U.S. government," he said. "I didn't serve 30 years in the United States Army to throw that away on a whim."

Asked if Weldon is still working for the company, Ringgold replied: "Absolutely, proudly so."

One of the projects leaders uses terms that should warm every New Yorker's heart, if he or she knew what they meant. IT head Paul Cosgrave says the system will overcome silos, an often disparaging term for the separation of resources across groups that can only expensively be overcome. It's the government and business equivalent of the academic problem of a lack of cross-discipline focus.

One of the first applications allows sanitation workforce managers a frighteningly precise amount of knowledge about routes, activities, and behavior of trucks in their territory. Let's hope that's not misused! Efficiency is one thing; micro-management is another.

Another project is testing wireless water-meter reading. The city hopes to spend $90 per meter for the upgrade and shed part of a $12.2m contract with Con Edison that covers 850,000 units. What should be useful about this is that problems can be detected by monitoring waterflow patterns, which in turn allows the often huge problems that take months to notice (occurring underground or in basements where rivers formerly flowed) to be stopped before they turn into multi-million-dollar problems for property owners or the city. Anytime anything happens in Manhattan, it's a multi-million dollar problem.

Minneapolis suffers the heartbreak of leafage: Leaves are popping in Minneapolis, and Star-Tribune columnist Steve Alexander writes that residents are seeing some Wi-Fi reception problems on that city's Wi-Fi network. This is the only big-city network that can be currently described "successful," even though its long-term success has to be proven out. The firm responsible, USI Wireless, told Alexander they're working on adjusting about 5 percent of antennas to cope with the pesky greenery.

St. Louis Park sues ARINC over Wi-Fi network: The Minnesota town says the network never worked, and had earlier discussed a lawsuit. The city wants the value of the contract ($1.7m) plus a very modest amount in damages and fees ($50,000). The city plans to start removing gear if ARINC doesn't sometime in June. But they have to deal with 490 poles erected to hold the nodes and solar-charging gear--sunk into concrete. More recent testing showed that the network worked well in some areas, but the majority of the network did not, according to the Star Tribune.

Verizon builds out fiber in AT&T territory: Interesting sign of competition in otherwise monopoly-per-provider-type world. Verizon is using AT&T's hard-won statewide video franchising rules in Texas to build competitive fiber in Dallas suburbs. They're apparently not bringing telecom; they're acting like a cable TV firm with data. Verizon owns chunks of territory all over due to it encompassing GTE in a deal years ago. GTE serves suburbs west of Portland, Ore., and east of Seattle, for instance, while Qwest serves most of the rest of each state.

Foster City Wi-Fi dies on June 20: MetroFi is unlighting its cities, and Foster City opted not to spend the nearly $200,000 asking price MetroFi put on its equipment. MetroFi might still find a buyer, but June 20 is the network's current final day. Naperville, Ill., also expects a June 20 shutdown. They, too, were offered the network hardware for 200 grand.

Chehalis lights up: A small city in southern Washington votes to put in Wi-Fi hotzones. The cost is about $53,000 and annual fees $15,000. Funds will come from existing tax and grant sources. The city chose to install service to make sure they're not missing a checkbox on the amenities list for visitors and businesses rather than for a particular, measurable goal.

Nearby Centralia pulls its Wi-Fi: A pilot project in the larger city of Centralia, Wash., a bit north of Chehalis, is shut down when poles used to mount Wi-Fi radios are removed as electrical wires are buried. (The reporter here confuses broadband over powerlines (BPL) with broadband wireless.) The system might be restarted later.

Craig Settles writes up Pennsylvania's Cambria County wireless success: This is a network built for particular municipal purposes, part of Settles's long-time drumbeat about having applications first and then networks built for those networks second. He notes that Cambria built a 700 sq mi network that sounds nearly cost neutral through efficiency and cost conservation--it's cheaper to get much more service with this network than it was for a smaller array of services with incumbent-provided networks.

Santa Fe residents oppose Wi-Fi in the library on health grounds: You know what I have to say about how provable this has turned out to be in clinical studies. I am, however, as always, concerned about these people's health, even if I don't believe that Wi-Fi (or EMF) causes their problems. The group opposed to library-Fi is citing the ADA in this case, uniquely I believe. Six libraries suggested that EMF triggers seizures in epileptics, something I've never heard cited before; maybe CRTs (flickering), but EMF? Wired is substantially less kind than I am, pointing out that EMF other than Wi-Fi produces vastly higher signal strength. (They're sort of ignoring signal strength at a given point where an individual stands in relation to a transmitter, however.)

This is the first large-scale Wi-Fi network announced that had no public/private component to it. While Verizon once said they'd blanket New York City with payphone-based Wi-Fi nodes, that never materialized, and it was unclear how seamless the coverage would ever be. This is a full-blown metro-scale network that's not beholden to any political interest, and which can likely use mounting rights already available to Cablevision. (In the past, I've said this, and folks have said that franchising agreements would exclude additional mounted equipment of this kind. Years later, I have to say I've never found anything to support that opinion, but welcome more documented information in the comments.)

The idea is for Wi-Fi to act as a mobile broadband component for Cablevision, to dilute the impact of the Sprint/Clearwire deal announced yesterday. While cable companies rarely compete in a given territory, the Sprint/Clearwire joint venture will make it easier for a customer to get home and mobile broadband and voice from one company, and then turn to another firm for video. This buys Cablevision a quadruple play (voice, video, data, mobile broadband) with a future quintuple play by adding (as they say they will) voice over Wi-Fi service.

Sources indicate that BelAir equipment will be used, which makes sense given BelAir's release nearly three years ago of a cable-plant compatible Wi-Fi node designed essentially for precisely this contingency. This is a nice win for BelAir, which will likely be selling somewhere north of 15,000 nodes based on the coverage area and service described. BelAir gear also powers Minneapolis, the only successfully completed big-city Wi-Fi network in North America.

Date Reported:
4/25/08

Organization:
People's Republic of China

Contractor/Consultant/Branch:
The Government of Hong Kong Special Administrative Region of the People's Republic of China
Department of Health
Child Assessment Service (Tuen Mun Centre)

Victims:
Adolescent patients

Number Affected:
700

Types of Data:
"detailed records of interviews with troubled youngsters including assessments and, in some cases, their photos, identity card numbers and addresses"

Breach Description:
"The Department of Health ( DH ) is working closely with the police in the investigation of a suspected theft case involving a removable electronic storage device ( USB flash drive ) containing patients’ information."

Reference URL:
Media Newswire
Monsters & Critics
Health & Community News

Report Credit:
Hong Kong Department of Health

Response:
From the online sources cited above:

Hong Kong - Medical data on almost 700 Hong Kong children and teenagers with social and developmental problems have been lost, the territory's government admitted Friday.
[Evan] This is the first breach that we have reported on The Breach Blog concerning information lost in Hong Kong.  Want to know Hong Kong's laws and practices concerning personal information?  Check out the Office of the Privacy Commissioner web site.  I was impressed with what I saw.

The records were held on a memory card which was stolen from an unlocked room at a Child Assessment Centre in the city's Tuen Mun district
[Evan] I DO know that storing confidential information on a memory card (USB drive, flash drive, etc.) without encryption is a bad. bad idea.

The USB flash drive, which contained medical reports and referral letters of about 700 named patients, was found to be missing at the Child Assessment Centre ( CAC ) in Tuen Mun on April 18. Attempts to locate the device failed and the incident was reported to the Police on April 22.

The lost data included detailed records of interviews with troubled youngsters including assessments and, in some cases, their photos, identity card numbers and addresses.
[Evan] Is a Hong Kong identity card at all comparable to a Social Security card?

Hong Kong's Deputy Director of Health Gloria Tam apologized to the families affected and said they should contact police if anyone suspicious approached them with their personal details.

The Department of Health ( DH ) is working closely with the police in the investigation

The department has sent letters to parents of the involved patients to inform them of the situation and the Privacy Commissioner of Personal Data has also been notified.
[Evan] Here is the Commisioner's office "Response to the loss of medical data by Department of Health".

As the case involved personal privacy, the affected families should remain alert and report to the police if they were approached by suspicious people with their personal data, she said.

'We have reminded our staff about the absolute importance of office security and to strictly adhere to the government's security regulations,' she said in a statement.

With immediate effect, staff have been asked to keep storage of identifiable patient information in removable electronic devices to a minimum essential for the efficient conduct of business. The information should be encrypted.
[Evan] Not "should be encrypted", MUST be encrypted.

These should not be removed from the specific office/clinic unless with prior approval from the respective service heads.

A government hotline has been set up to deal with calls from youngsters and family members concerned over the loss of the data, she added.

There is a Department of Health hotline ( 2125 1133 ) for enquiries.  The hotline will operate until 9pm today, from 9am to 1pm tomorrow and Sunday and from 9am to 5pm during weekdays from next Monday.

Dr Tam said the concerned doctor's case may be dealt with under civil-service regulations after the investigation is completed.
[Evan] I fear what this could mean.

Commentary:
The response from the Privacy Commissioner for Personal Data sums it up pretty well.  Section 4 made good sense:

"The Privacy Commissioner for Personal Data Mr. Roderick B Woo takes the opportunity to remind both the public and private sectors to exercise particular caution when handling personal data.  Stringent handling procedure and sufficient security safeguards should be implemented.  In particular, when sensitive personal data are stored or transmitted by electronic means, the data shall be encrypted."

Past Breaches:
Unknown