The news hitting the wire yesterday seemed benign enough. Narus Inc. secured $30 million in new funding with the purpose of further development and sales.
Anyone unfamiliar with Narus or anyone not taking the time to read this more carefully may not realize what implications this can have. Narus is a technology firm. It makes networks that can monitor phone and Internet traffic. Sounds harmless? Well, Narus' technology can help sift through information to find specific data on Web surfers, anything from emails to habits and calls made over the Internet.
The purposes of such monitoring can be vast. One purpose is similar to wiretapping. In fact, according to news sources, President Bush's administration used Narus in the controversial monitoring of Americans without warrants.
Another purpose is, instead of monitoring calls made over the Internet, blocking such calls from being made. The Chinese phone company, state controlled, and a few other countries with state-owned or controlled phone companies have also contracted Narus to help block VoIP usage.
For eBay, Inc. (NASDAQ:EBAY), this spells trouble. Skype is especially popular in China and if eBay were to make it in the Chinese market, Skype would be a big part of its strategy there. Of course, we still have to wait and see how this plays out, but it is definitely something to watch out for.











Reader Comments (Page 1 of 2)
10-31-2006 @ 11:09AM
realsigh said...
Good post Melly...will add to my monitor list. Good thing I purchased Skype for free when Ebay was below 30. Any contribution from skype will be gravy :)
10-31-2006 @ 11:10AM
Helen said...
Quite funny considering a lot of Chinese sellers are also NARUs - being eBays designation for 'No Longer A Registered User' when someone gets terminated for scamming.
10-31-2006 @ 11:32AM
crystal ball said...
On the Ebay.com site, a search for "dell" returned 60,000-62,000 listings 8 days ago. So far today, that same search has been oscilating between 47,700 and 48,100 listings.
10-31-2006 @ 11:57AM
Melly said...
Sigh, thank you.
Helen, that's absolutely hilarious!
10-31-2006 @ 12:33PM
Gary E. Sattler said...
I honestly think this should have greater negative implications than what were already seeing in regard to eBay. Of course it does take a while for these things to "pan out". This type of technology is very valuable when one considers the effects it will have in exposing search engine manipulation, illegal pornography sourcing and internet communications of the dangerous sort.
Internet communications are considered non-private for purposes of the Fourth Amendment. That's similar to the treatment of cell phone usage in that regard. We should all be aware that everything we launch into the internet is considered "public information" excluding of course those communications which carry their own protections.
Perhaps I could garner some interest in contracting Narus to monitor ingoing eBay traffic for a while. I'm sure it'd only cost a couple hundred thousand dollars. I'm sure that the resulting figures would pay great dividends... but not to eBay shareholders.
Yes, I'll look into that, being that I'm a searcher of the truth. Might my former eBay powerseller friends care to invest in positioning? I think they might like that. Especially when that position would be eBay's former stronghold.
Just a side note here... in the interest of having some fun.
Maybe the folks I keep annoying would care to do something constructive to shut me up rather than just flapping their bleeding gums. I'm real easy to find.
Just follow your yellow brick road.
SEE YA...
..
U
10-31-2006 @ 12:42PM
realsigh said...
Run Gary Run...If Gary can't do it Nobody Can
http://www.youtube.com/watch?v=h-LEswjC0Vo
10-31-2006 @ 12:49PM
VC said...
Melly,
The implications of this technology (when reading why exactly it was developed), has the potential to harm Skype internationally, not just China (if widely adopted).
One of the original reasons for the developing of this technology is to enable internet providers to create a tiered billing system, whereby those that only email are charged one price for their internet connection, while those that watch streaming video's can be charged at a premium rate.
If widely adopted by ISP's, services like skype can be unattractive to consumers. Whatever savings are achieved by phoning over the internet, potentially can be lost to pay-per-usage ISP charges (which can be charged on top of the normal monthly internet cost).
A more disconcerting possibility is how the technology affects internet neutrality.
"On the Internet, consumers are in ultimate control — deciding between content, applications and services available anywhere, no matter who owns the network. There's no middleman. But without Net Neutrality, the Internet will look more like cable TV. Network owners will decide which channels, content and applications are available; consumers will have to choose from their menu."
This is from http://www.savetheinternet.com/=faq
Incidently, eBay and Skype are in support of internet neutrality.
10-31-2006 @ 1:26PM
realsigh said...
to further VC point....it can hurt not only skype but also cable providers and Vonage who are providing VOIP services over the Internet Highway.
Some Democratic governments will face a huge outcry by consumers and cable companies competing against the big telcos. In fact some governments have supported the cable companies in opening up the telco market to more competitors. I believe in Canada, (melly?)Cable companies have been given soem form of protection to develop the VOIP market until they let the Telcos compete head on?
11-02-2006 @ 9:10AM
realsigh said...
Gary gets back at Ebay...
http://www.kron.com/Global/story.asp?S=5616940
Truly sad...
11-02-2006 @ 10:56AM
Alex said...
...Or maybe someone has had some problems digesting some spaghetti sauce.
Run Sigh Run! Run for Joseph Goebbels impersonator of the year!
11-02-2006 @ 11:04AM
VC said...
Ah, you can't be too sad, sigh.. you got a full day off from work ;)
Not a single post from you or ann yesterday, out of eBay HQ.
11-02-2006 @ 11:08AM
VC said...
I must admit, I was a little worried too. These blogs just wouldn't be as colourful without all the spaggetti
11-02-2006 @ 11:09AM
realsigh said...
Alex long time no see!!!! Still waiting for your retort to this...remember factual and logical counters please.
Let's clarify some myths/misconceptions regarding Visa/MasterCard covering fraudulent transactions for online merchants and not PayPal. Looks like fraud is a big issue for everyone not just PayPal.
"While Visa and Mastercard will likely cover the cost of a fraudulent transaction at a traditional bricks-and-mortar retailer, online sellers typically have to eat the cost of that stolen merchandise, says Mike Orlando, CyberSource's director of strategic markets."
http://www.forbes.com/2006/10/30/visa-firstdata-ebay-ent-sales-cx_mf_1030fraud.html
11-02-2006 @ 11:11AM
realsigh said...
VC et el I know you miss me :) !
11-02-2006 @ 1:13PM
Michele said...
"Gary gets back at Ebay...
http://www.kron.com/Global/story.asp?S=5616940
Truly sad..."
I have been ignoring your posts, sigh... But I must comment on this:
How dare you even make a reference that anyone on these blogs would do such a thing??
You are a sick individual and I feel you should not be allowed to post here, just for that comment alone...
You really crossed the line with suggesting Gary, or anyone, would do such an atrocious thing...
Many of us have issues with Paypal, and rightly so, but to suggest one of us would bomb their headquarters is outright slanderous and if I knew your real name, I would suggest Gary sue you for public harrassment and defamation of character...
For your information, Gary actaully alerted bloggingstocks to the awful bombing yesterday through a message I sent him, which I heard about on a UK board...
You make me sick...
11-02-2006 @ 1:28PM
RealSigh said...
Michele what happen to the ignore promise? You decided for some more luvin? :) I know you can't resist me.
11-02-2006 @ 1:29PM
Alex said...
#11 Interesting observation VC! You've been rumbled Sigh + Ann!
Now where were we before that dreadful affliction of 'having a life' dragged me away from this interesting debate?
Ah yes, on the 'HP accepts Paypal' article. I posted this:
"I don't think you quite realise the significance of customers' concerns about internet safety.
The most predominant story via the mainstream media with regards to ebay are how an increasing number of people are being scammed online.
Correct me if i'm wrong, but won't this mean that a significant amount of potential customers will be more reluctant to part with their credit card & Bank account numbers in an on-line environment? Especially if they're not given some sort of protection.
http://news.bbc.co.uk/1/hi/technology/5414696.stm
imho, online fraud and the immpression of the lack of protection is a big problem which puts off shed-loads of potential on-line buyers. Unless it's tackled properly by the companies themselves (especially ebay + paypal), we'll probably see some sort of government intervention. (remember poker 'venue' sites?).
Ebay have tried to lift their profile in China and have only managed to attract scammers. Now it would seem that Ebay are going down the same road in Thailand.
Now what's Thailand infamous for? (Rip offs, knock-offs, as well as knocking shops)."
To which you replied:
"You ever hear of the "natural law of equilibrium?" There are checks and balances in ecoystem, society or business to bring back anything that swings too far from the state of equilibrium.
So if Ebay/PayPal is SERIOUSLY experiencing alot of fraud, WHICH by the way is NOT the only e-retailer or offline retailer facing this issue, it will eventually get resolved.
What you failed to indicate, like your other space cadets, is the % fraud or departed sellers out of total ebay revenue. If it's 5% I can live with it.
So keep on posting anecodotal junk...we all know a certain percentage of theft/leakage/fraud is will always be part of being a large retail organization."
You seem to have avoided the issue of the BAD PUBLICITY that constantly hounds Ebay and Paypal.
http://www.youtube.com/watch?v=0DlLK7aS8PE
Now, how much of Ebay's advertising revenue does a news report like this (and more) negate as Ebay attempt to attract new customers?
And check this out:
http://www.fraudwatchinternational.com/phishing/index.php (rather a high proportion of ebay/paypal phishing alerts eh?). Have a look under the 'auction' section.
"Reduce the risk of Online Auctions by using credit cards for payment. This way the sellers get their money immediately, and buyers can dispute the charges if the merchandise was misrepresented or not delivered."
11-02-2006 @ 1:52PM
RealSigh said...
LOL Alex, is that your retort? Jesus you had to regurgitate all that to answer one simple point that you inferred that Credit Cards are safer than Paypal for web purchases and I responded with the point below which contradicts your point.
"While Visa and Mastercard will likely cover the cost of a fraudulent transaction at a traditional bricks-and-mortar retailer, online sellers typically have to eat the cost of that stolen merchandise, says Mike Orlando, CyberSource's director of strategic markets."
As for negative publicity on PayPal and Ebay...it's all part of being a large company getting bashed....so what's your point? Whoopee doo? Gap, Nike, McDonalds, Microsoft all have hate sites.
Are investors suppose to say GEE WHIZ I better not invest in EBAY..me so scared? LOL
In case you didn't know, apparently over $5 billion of sales transaction are going through in 2006 for Ebay. That's a shit load of transactions.
Your towering intellect and debate is truly amazing! LOL
11-02-2006 @ 1:55PM
Michele said...
As if... You do not play fair, nor get across your point eloquently... You stooped to a new level with your post about Gary, and I feel you should not be allowed to post on BS anymore for that...
It's one thing to call those that disagree with you "space cadets", it's a whole other thing to outright public defame them and accuse them of placing a bomb outside the PP HQs... I don't care if you were joking or not; it's harmful and unprofessional and I hope other bloggers, including the writers, see this...
Again, you've completely crossed the line with your off-handed comment, and I believe you know this, and no amount of pretending myself or anyone else for that matter, would have even the slightest interest in "lovin" from you will change that...
If Ann Lambert is not in fact you, I would take this advice: Seperate yourself from sigh/realsigh/RealSigh, as people who throw around slanderous accusations such as the above completely discredit their advice and opinions...
You're back on ignore, sigh, I no longer think you are just a troll; I think you discredit investors everywhere and again, you make me sick.
11-02-2006 @ 2:05PM
RealSigh said...
Michele??? long time no see :) I'm beginning to think you are luvin me so much...I may need to put a restraining order on ya.