USITO Weekly 10/16/2009: Discussion on Trusted Computing Issue

Report on TCG-USITO Exchange Meeting on Trusted Computing Issue

On October 14 Wednesday, USITO hosted a roundtable discussion meeting with the Trusted Computing Group (TCG). The half-day meeting was comprised of two sessions: the first session between TCG executives and USITO member company representatives, the second half between TCG and the international communications including the U.S. Embassy, EU Chamber of Commerce, and the Japan Electronics and Information Technology Industries Association. Both sessions were well attended by a total of 30 plus participants, and the discussions were heated and quite fruitful.

TCG is the ad hoc group that focuses on trusted computing technology, which is aimed to make computers safer, less prone to viruses and malware, and thus more reliable from an end-user perspective. The technology will also allow computers and servers to offer improved computer security over that which is currently available. During both sessions, TCG executives firstly updated the participants the latest technology development and policy environment. According to TCG, the Trusted Platform Module (TPM), a computer chip promoted by TCG, has been adopted by more countries and companies with the market keeping expanding. TPM is able to securely store artifacts used to authenticate the desktop PCs or laptops; it can also be used in computing devices other than PCs, such as printers, mobile phones or network equipment.

So far, world leading chip manufacturers Intel and AMD, hardware manufacturers such as Dell, and operating system providers such as Microsoft are all including (or plan to include) Trusted Computing into the existing and coming generations of products. TCG as a consortium of these companies now boasts approximately 140 companies engaged in creating specifications that define PC TPMs, trusted modules for other devices, trusted infrastructure requirements, APIs and protocols necessary to operate a trusted environment. TPM has become the world mainstream trusted computing technology - to date over 200 million branded PCs and laptops with TPMs were sold. Server produces are beginning to ship, and a variety of applications based on TPM, such as secure email or file encryption, have been implemented using TCG specifications. Trusted Network Connect (TNC) products that use TCG principles to enhance the security of communications are shipping, too.

TCG has so far successfully aligned with quite a few Chinese stakeholders to jointly develop the TPM technology, including Lenovo, Huawei, Tsinghua University, to name a few. TCG also acknowledged the hardships to promoting the technology on the ground. The meeting participants worked out several issues to be followed concertedly, and agreed to make exchange of such kind a regular one.

USITO Notes: USITO continues to encourage open and market-oriented standard setting approaches, which would help address the increasingly complicated interoperability issue between the computing devices. Any closed or non-transparent standard setting effort will likely lead to serious security problems and hinder the industry's development. TPM adopts standard security procedures and shared specifications, which thus enable components of the trusted environment to interoperate. So USITO would like to recommend the TCG initiatives in the trusted computing field to our Chinese industry counterparts, and help promote the wider use of this world prevailing trusted computing methodology.

During the two sessions with TCG, the participants also discussed the challenging ICT policy environment on the ground. The Chinese state encryption authorities have been recently reinforcing implementation of the 1999 China commercial encryption rules, which required any imported IT products that contain encryptions must obtain relevant licenses from the Chinese government. Though the policy once faded away thanks to global industry outcry, it again reared its head in recent months: a few overseas companies reported their chips held up in the customs; the encryption authorities glorified the 1999 rules by hosting a large-scale expo in August to commemorate the rules' 10th anniversary. Facts of this kind shall be incorporated in marketing strategies for TPM's introduction into the Chinese market.

USITO Solicits Member Comments on China's Telecom Law Draft 2009

China began drafting the Telecommunications Law as early as 1980. After nearly three decades, the government has yet to officially promulgate the Law, though several draft versions have been available to the public.

To study the probably most controversial law in China, it is essential to understanding the complicated and multifaceted internal mechanisms of Chinese telecom business scenario, such as the former public monopoly has given way to state-controlled competition: three telecom carriers now operate with full telecom licenses; state-run cable carriers and broadband carriers are expanding their networks; private telecom businesses are blossoming, and so forth. It makes authorities increasingly difficult to justify telecom services and creates fair play problems like turf battles, interconnection, and higher barriers for overseas players.

China entered the World Trade Organization (WTO) in late 2001, which demanded the country to accord to world practices in the telecom sector. Though the government promulgated the People's Republic of China (PRC)'s Telecommunications Regulations in 2000 and the Regulations on Foreign Investment in Telecom Enterprises in 2001, those temporary and transitional policies were almost impossible to address the ever-growing complicated issues.

Now we have got the latest 2009 version of China's Telecom Law draft (members please login here to download the Chinese version, the English Translation). Under the guidance of one of our parent associations the U.S. Telecommunications Industry Association (TIA), USITO plans to submit a joint comment paper with TIA to relevant Chinese authorities on the industry's concerns about the draft Law. For instance, the first glance over the draft gives the industry an impression that the Law appears somewhat biased since it always attempts to protect the current regulators and dominant state-owned companies' interests. As we need our first draft comments done early next week, you are welcome to provide us (wenjie@usito.org) your initial points before Monday October 19 close of business.

Time Warner Eyes Bigger Market Share in China

Time Warner, the world's leading media and entertainment conglomerate, is eyeing China's faster market expansion after the government issued a new plan to encourage private and foreign investment in the cultural sector. The company is "particularly interested" in the plan to lower the market access threshold for the entry of private and foreign capital to the cultural fields, and "excited" to learn that multimedia broadcasting, Internet and mobile TV would be promoted actively, according to sources from the company in the World Media Summit held in Beijing early this month. Detail

Member in the News: Dell Acquires Bearingpoint China

A subsidiary of Dell Inc said that it will acquire BearingPoint China Consulting as the world's No. 2 personal computer maker seeks to penetrate the domestic information technology service sector.

Perot Systems Corp, which was acquired by Dell for USD 3.9 billion last month, said it will acquire BearingPoint China, which provides IT, applications and consulting services in the energy, automotive, insurance and finance industries. The parties didn't reveal the financial terms of the deal yesterday. The transaction is subject to regulatory approval from the United States and the Chinese governments. Detail