RUSSIAN GOVERNMENT MAY BAN iPAD IN GOVERNMENT OFFICES

The Russian government is considering disallowing the use of Apple’s iPad tablet within government agencies due to security concerns, Russian-language business news site RBC Daily reports. Instead, it is investigating various alternative tablet options including RIM’s BlackBerry PlayBook, Android-powered tablets or even a new device created by a Russian agency.

Government security experts are reportedly looking for more “cryptographically secure tablet PCs” than Apple’s iPad tablet, and if the U.S. National Institute of Standards and Technology’s recent certification is any indication, the BlackBerry PlayBook could fit the bill. RIM announced last week that its PlayBook tablet received FIPS 140-2 certification, thus allowing it to be used by U.S. government officials. No other tablet has received FIPS certification to date.

GOVERNMENT REPORT FINDS LIGHTSQUARED LTE INTERFERS WITH GPS

Following up on reports and concerns about LightSquared's possible interference, a government study has found that the outfit's proposed broadband network does indeed impede GPS signals. According to the National PNT Engineering Forum, the federal advisory group that conducted the study, LiqhtSquared's network disrupted GPS signals for all of the devices tested in the area. The report lists OnStar, Garmin, John Deere, emergency services, the FAA, and NASA among those affected by interference. Both LightSquared and the GPS industry are scheduled to present their own tests for the FCC's consideration next week. The news isn't exactly shocking, but it certainly doesn't bode well for the ambitious LTE network.

VERIZON ADDING LOCATION TRACKING WARNING STICKERS TO PHONES

In an effort to be “clear and transparent” with its customers and the government, Verizon Wireless has sent a letter to Congress detailing plans on how it will better inform consumers about location data collection on their smartphones. The wireless carrier will soon apply a removable stickers to its devices with the following warning:

“This device is capable of determining its (and your) physical, geographical, location adn can associate location data with other customer information. To limit access to location information by others, refer to the User Guide for Location settings and be cautious when downloading, accessing, or using applications and services.”

Verizon Wireless will also issue alerts more clearly in its V CAST applications, some of which can be used to track family members or friends voluntarily. It confirmed that it does not sell or rent out personal user information, and that user habits are only used for internal marketing purposes. Verizon says it only collects location data for “various service and operational purposes,” and that it uses the data to ensure customers have solid call and data quality.

GOOGLE'S TUSSLE WITH US GOVERNMENT HEATS UP

New details emerged recently in the battle between Microsoft, Google, and the U.S. government’s choice of default software. Here’s the rub: Google filed a lawsuit against the U.S. government in November 2010 alleging that the Department of Interior didn’t give its Google Apps Premier a fair shake before choosing to use Microsoft’s Business Productivity Online Suite-Federal for all of its employees.

That’s the tip of the iceberg, as the story gets a bit more complicated. See, in order for the software to be certified for government use, it needs to get a FISMA stamp from the General Services Administration (GSA). Google Apps Premier was certified in June 2010, but it appears that a subset “Google Apps for Government,” — introduced later — has yet to receive that certification. According to Business Insider, Google assumed that since its Google Apps for Government product was more secure the original FISMA certificate would fit the bill. Technically, it sounds like that alone is reason enough for the government to choose Microsoft’s suite, making Google’s entire lawsuit moot. But we’re sure we’ll hear more from the Google defense.

VERIZON SETTLES FEDERAL LAWSUIT FOR $93.5 MILLION

On Tuesday, Verizon Communications agreed to pay $93.5 million to settle a lawsuit filed by the U.S. Justice Department. Verizon was accused of overcharging the U.S. government for both voice and data services. Reuters reports that the the company’s MCI Communications Services unit “invoiced the General Services Administration for various taxes and surcharges in violation of contracts or regulations.” Back in October of 2010, Verizon was ordered by the Federal Communications Commission (FCC) to repay customers more than $52 million for erroneous data charges.

SPRINT ASKS GOVERNMENT TO OPPOSE AT&T/T-MOBILE MERGER

Sprint CEO Dan Hesse has already expressed his concerns about AT&T’s purchase of T-Mobile from Deutsche Telecom, but today Sprint officially announced its opposition to the deal in a press release. Sprint states that the transaction will create a carrier that’s roughly three times its size — in terms of revenue — and “reverse nearly three decades of actions by the U.S. government.”

Sprint noted that AT&T and Verizon Wireless would dominate the U.S. wireless postpaid market and be firmly in control of the availability and price of key inputs, such as backhaul, should the deal go through. “Sprint urges the United States government to block this anti-competitive acquisition,” writes Sprint’s senior vice president of government affairs, Vonya McCann “This transaction will harm consumers and harm competition at a time when this country can least afford it.”

If it’s any consolation to Sprint, one FCC official believes that the deal won’t be rubber stamped, and could be a “steep climb at least.”

AMAZON ENDS AFFILIATE PROGRAM IN ILLINOIS

On Thursday, Illinois Governor Pat Quinn signed into law the Mainstreet Fairness Bill which would require any online retailer with affiliates in the state to collect state sales tax on purchases from Illinois residents. As a result of the bill being signed into law, Amazon notified affiliates in the state that it would end its affiliate program on April 15th. Overstock.com has also threatened to take a similar move and end its affiliates program in Illinois as well.

The state is taking advantage of a 1992 Supreme Court decision which said that retailers don’t have to collect state sales tax on out-of-state shipments unless it has offices within the state. Clearly, Illinois believes that an affiliate of a retailer is equivalent to having such an office.

Many states have been frustrated with the loss of sales tax revenue associated with items purchased online since most online retailers don’t collect it. States typically have a section on income tax forms which asks citizens to voluntarily admit to any online purchases in order to pay the associated sales tax, but few people actually report such purchases. The Illinois Department of Revenue estimates the state loses between $153 million and $170 million a year as a result.

Illinois is in the midst of correcting what some say is the state’s worst financial crisis resulting in $6 billion in unpaid bills and $4 billion in payments the state has missed to fund state pensions. In January, the state began addressing the crisis by passing legislation to increase the state income tax by 67%, the largest such increase in the state’s history. In addition to receiving bi-partisan support from both houses of the Illinois General Assembly, the Mainstreet Fairness Bill also received the support of the Illinois Retail Merchants Association whose business members believe it is unfair that out-of-state businesses have an advantage simply because they are not required to collect a sales tax.

Amazon did leave the door open so that should the current law be changed or modified it would consider resuming the program.

Walmart on the other hand has taking advantage of the crisis faced by Amazon and Overstock.com affiliates by inviting affiliates of those companies to join the Walmart affiliate program instead. Since Walmart maintains retail locations within Illinois it already collects sales tax on purchases sold through its website.

HOUSE SUBCOMMITTEE VOTES TO BLOCK NET NEUTRALITY RULES

The House Commerce Subcommittee on Communications and Technology has now passed a new measure that, if it ultimately adopted, would completely overturn the FCC's new rules. The measure now heads to the Energy and Commerce Committee but, as before, it's unlikely that anything will change in the Senate even it ultimately passes in the full House.

HYUNDAI SONATA HYBRID DELAYED INTO 2011 BY VIRTUAL ENGINE SOUND REQUIREMENTS

The Hyundai Sonata Hybrid was ready to roll, in the US, in late 2010. Then the US government enacted a new law requiring all hybrids to have an audible "engine noise" so sight impaired individuals, and distracted folks, will be able to hear the near silent vehicles.

This required Hyundai to redesign the wiring harness, UI software and user manuals to meet the requirments set forth in the new legislation. These tweaks had to be done "amazingly late in the process," according to Hyundai America CEO John Krafcik.

PRESIDENT'S PLAN TO RAISE $28 BILLION AND BRING 4G TO EVERYONE

President Obama announced a plan today to free up 500 MHz worth of spectrum for wireless Internet and mobile network use over the next 10 years. Alleged crowding of the spectrum has been a concern for some time, but Obama hopes to incentivize current users to give up the chunks of spectrum they occupy by giving them a cut of the spectrum's sale at auction, and then using some of that money to reimburse the rollout of wireless and 4G to 98 percent of the country.

By letting the current owners (read: broadcast TV stations) of needed or unused spectrum volunteer their frequencies for auction, Obama hopes to raise funds in the neighborhood of $27.8 billion. He hopes this will offset some of the investments he wants to make in mobile and wireless: $5 billion would go to investment in building out 4G networks into rural areas, $3 billion would go to 4G-related research and development, $10.7 billion would go to building a wireless public safety network, and the balance would go toward paying down the deficit.

Of course, the desired frequencies may not draw that much at auction, and potential buyers like AT&T or Sprint are big enough in size and small enough in number that they could hold out against high prices. Selling frequencies will also be voluntary, at least at first, so it may be tough to get owners to give them up.

The government is doing its part to make sure the program is well on its way: Obama announced that the government will start by freeing up 115 MHz of federal spectrum by using frequencies more efficiently, and it plans to open another 95 MHz the same way.

But space and access to wireless or mobile connections may not be the problem; Free Press research director S. Derek Turner notes that "according to the FCC's own data, 98 percent of households in the United States already have access to wireless broadband service, while less than one-third subscribe to it." Nothing in the plan encourages them to adopt it, Turner said.

US GOVERNMENT HAS QUESTIONS FOR FACEBOOK'S RECENT PRIVACY BREACH

The US governments House Bipartisan Privacy Caucus has sent a letter to Mark Zuckerberg, CEO of Facebook, asking a number of questions about the latest privacy breach.  Zuckerberg has until October 28th to respond to Representatives Joe Barton (R-TX) and Edward Markey (D-MA).  No word on what the questions are, but expect to see Facebook announce some tweaks to its privacy settings really soon. [Gizmodo]

HP TO PAY $55 MILLION TO US GOVERNMENT

HP will pay $55 million to settle claims it defrauded the US government.  The company is accused of offering kickbacks to ensure its products were purchased by the US government agencies. [Gizmodo]