A German computer engineer this week announced that he's deciphered and published the 21-year old 64-bit encryption algorithm that protects the GSM standard, and all 3.5 billion of the wireless phone connections that utilize it. According to the New York Times, the encryption expert "aimed to question the effectiveness of the 21-year-old G.S.M. algorithm" and its use to protect 80% of the world's voice communications. "We are trying to push operators to adopt better security measures for mobile phone calls," says the researcher. Having the code itself isn't enough to easedrop, but it certainly helps people along the path. The GSM Association responded by calling the publication "theoretically possible but practically unlikely."

While the prepaid offerings of carriers like Cricket or MetroPCS spent a good portion of 2009 shaking up voice pricing in the wireless industry, 2009 didn't see a lot of disruption the pricing status quo for wireless broadband service. While we saw prepaid companies like Millenicom offer unlimited 3G services without a contract, the pricing was still standard (as in expensive) for the industry: 5GB of usage for $60/month, unlimited for $70/month.

We've already highlighted Time Warner Cable's latest PR stunt, designed to urge customers to protest higher retransmission fees from broadcasters. The attempt to use customers as a rate negotiation weapon isn't working very well, according to the New York Times.

Much of the early blog hype surrounding the new Google phone (aka the "Nexus One") focused on how Google was going to sell the phone at an unsubsidized price point, allowing users to buy the phone first -- then choose the carrier of their choice. That entire concept was quickly deflated when leaked specs indicated that the device would only be designed to work on T-Mobile's 3G network.

New Tee Vee offers their first impressions of Comcast's entry into the cable industry's "TV Everywhere" Internet video service. Recently branded as "Xfinity," the service is aimed at preventing users from "cutting the cord," by offering them free Internet video programming if they subscribe to Comcast TV service.

• AT&T to FCC: Let My Landlines Go! [gigaom.com]
• Broadband tax 'must not be scrapped' [cable.co.uk]
• AT&T: The most hated company in iPhone land [cnnmoney.com]
• A happy new year for VoIP expected in 2010 [broadbandgenie.co.uk]
• DataJack to Launch Unlimited Prepaid Mobile Broadband for $39 [chipchick.com]
• MS dismisses IIS zero-day bug reports [theregister.co.uk]
• Verizon to Soon Receive Palm Pixi Shipments [softpedia.com]
• Packaging Slip-Up Hints At New 8GB iPhone 3GS [wired.com]

• O2 Joins AT&T in Blaming iPhone for Network Issues [pcworld.com]
• Court Provides Ground Rules For BitTorrent Argument [multichannel.com]
• Is 3G Wireless Doomed in Cities? [seekingalpha.com]
• Nokia Files Complaint: iPod, iPhone and Macs All Infringe Our Patents [mashable.com]
• Fox-TWC Fight Could Weaken Broadcasters’ Hold on Spectrum [gigaom.com]
• Should Users Worry About New Cellular Hack? [pcworld.com]
• Comcast’s Xfinity: TV Everywhere That’s Not All It’s Cracked Up to Be [newteevee.com]
• Adobe predicted as top 2010 hacker target [theregister.co.uk]

Charter, Cox, Time Warner Cable, Cablevision, Comcast and Bright House Networks have collaboratively been working on an advertising system dubbed "canoe" since 2008. The project was initially aimed at delivering different ads to different households depending on demographic data -- a data collection effort that even involved Comcast building a 500 terabyte data warehouse designed to store data on your viewing habits.

The leaked specs for the upcoming Google phone (aka the "Nexus One") already indicated that the device was designed specifically for T-Mobile, though neither Google or T-Mobile confirmed it -- until now. Through information posted on internal T-Mobile systems, the carrier has confirmed that they'll be handling "billing, coverage, features and rate plans" for the new phone, which will go on sale (but only through Google) starting January 5. Google is meanwhile sending out press invites for a January 5 press event. While a lot has been made about how Google hopes to shake up the U.S. wireless industry by selling unsubsidized phones and then letting consumers shop for a carrier, the excitement level drops substantially when the phone involved only really works on one carrier (unless you really enjoy AT&T EDGE connectivity).

Joystiq directs our attention to a video of a presentation recently made by OnLive founder and CEO Steve Perlman at Columbia University. The presentation does a nice job talking in more detail about some of the networking, compression and software obstacles OnLive is tackling in order to make the system work.

Rumors and leaks (and hell, even Twitter comments from Verizon) have made it clear that the Palm Pre is coming to Verizon eventually -- the question has always been when. With a new Wi-Fi Interoperability certificate popping up for the Pre, Engadget connects the dots and makes the assumption that Verzion could announce the phone at CES in a week. The question really is: does anybody care at this point? The Pre has essentially been upstaged by the Droid, and even the Droid looks like it may soon be upstaged by the and the looming Google phone. Still, a broader audience may be just what the Pre needs...

Like AT&T, UK operator O2 signed an exclusive arrangement with Apple to sell the iPhone. Also like AT&T, O2 engineers saw the potentially huge surge in bandwidth demand created by the device, but executives, ever mindful of putting investors ahead of consumers, failed to re-invest enough income back into the network. So (seeing the trend yet?) like AT&T, O2 has spent the last six months suffering from network performance issues and apologizing profusely to their customers. Unlike AT&T, O2 has now lost their exclusive arrangement to offer the iPhone, though that didn't result in lower prices or better network performance. Vodafone, Britain's second biggest carrier, will begin selling the iPhone in January.

The wireless industry's primary trade and lobbying group, the CTIA, this week proposed a way for the FCC to grab some additional spectrum -- for the wireless industry. According to the CTIA, they'd like Uncle Sam to spend between $1.37 billion and $1.83 billion to migrate to a low-power network of multiple transmitters for television service -- freeing up 100MHz-180MHz (about $60 billion in spectrum) for mobile broadband service. Given the proposal was filed during the busy holiday season, there's been no response to the plan yet by the National Association of Broadcasters (NAB) -- though NAB wasn't too thrilled with the CTIA and FCC's recent proposal to take unused spectrum from broadcasters and auction it off to wireless companies.

Being the first to announce (but the second to actually launch) 1080p service, it only makes sense that DirecTV is claiming they'll launch the first 3D channel starting next year. With the successful launch of an additional satellite (DIRECTV-12) last night, DirecTV now says they have enough capacity to offer up to 200 HD channels -- and apparently a little something extra. Deciding to scrap broadband service and reserve all that bandwidth for video apparently has its perks. 3D will be enabled simply through a firmware update for existing DirecTV set top hardware. In other DirecTV news, it looks like they're preparing to raise prices, but drop XM Radio.

• FCC's Clyburn Rips Verizon's ETF Defense [eweek.com]
• AT&T resumes online sales of iPhones in NYC [msnbc.com]
• IPv6: A Lost Decade? [circleid.com]
• rural America severely hurt by lack of broadband service [msnbc.com]
• BT warns of court fight over digital spectrum plans [guardian.co.uk]
• E-EDGE May Generate Billions if Adopted: ABI [tmcnet.com]
• Watchdog Groups Speak Out Against Google/AdMob Deal [multichannel.com]
• Secret code protecting cellphone calls set loose [theregister.co.uk]

Utopia is the nation's largest municipal fiber network, and the Utah operation has had more than their fair share of run ins with local competitors Qwest and Comcast. While Qwest delayed the project at the outset by suing to stop the operation from using utility poles -- Utopia survived and now offers wholesale access and up to symmetrical 100 Mbps service via several local ISPs (including AT&T).

TiVo's future depends, in large part, on cable companies embedding the TV software into their set top devices. So it's interesting to see TiVo file comments with the FCC blasting the cable industry for making life as an independent set top creator annoyingly difficult. According to TiVo, cable operators discriminate against third-party box providers by imposing licenses and conditions that intentionally tie TiVo's hands. TiVo also complains that the tru2way middleware necessary to embed advanced functionality is restricted by "costly and strict license agreements." Of course if you ask the cable industry, they'll say that the CableCARD died because consumers didn't want it -- not because they made life hard for device makers so they couldn't erode lucrative set top rental fees.

Many ISPs fail to expand broadband to all of their potential customers, which is sometimes understandable given the expense. However, we've documented countless times how those same ISPs often then lobby to have laws passed or engage in sleazy activities to prevent those towns and cities -- or anyone else -- from wiring those un-served regions.

The UK's efforts to turn ISPs into piracy police will cost citizens upward of $800 million dollars, according to the Times Online. You could imagine that cost total could be substantially higher if the filters don't work, if ISPs have to eat the additional support costs, and if an entirely new government entity has to be created to track customers as they flee from one ISP to the next. ISPs, who obviously want the content industry to foot the bill for saving their own business models -- tell politicians the plan will cost them an additional $40 per subscription to implement. Politicians expect about 40,000 people (all of which of course are potential customers) will be left without broadband connections, though one tells the Times "the overall benefits to the country far outweigh the costs."

Intentional or not, AT&T has found one solution to recent criticism of congested New York City 3G networks -- stop selling the iPhone in the city to online customers. A Consumerist reader was told by an AT&T support representative that "New York is not ready for the iPhone," but apparently part of New York is -- since AT&T's still selling the device in stores. Another AT&T rep told a different caller that the online sale freeze was due to "increased fraudulent activity in that area when ordering the iPhone." We asked AT&T what was going on, and was given the stock statement they're telling any blogger or news outlet that asks: "We periodically modify our promotions and distribution channels. The iPhone is available in our New York retail stores and those of our partners."

Update: It looks like AT&T has resumed selling iPhones online in NYC, but is offering no additional information on why sales were halted.