Huawei, controversial in the West, is going strong in the Gulf

DUBAI - Chinese telecoms giant Huawei is enjoying an extended honeymoon with oil-rich Gulf nations, despite being criticized in the United States and Europe as a potential security threat. 

Arab Gulf countries -- strategic partners of Washington that are seeking to diversify their economies -- are investing heavily in the sector as their appetite for technology grows.

Huawei has struggled in recent years in the face of US sanctions, as Washington claims it has close ties to China's military and that Beijing could use its equipment for espionage -- accusations the company denies.

Britain and Sweden have banned the use of Huawei equipment in their 5G networks, while France has also imposed restrictions. 

Yet Gulf countries including Saudi Arabia and the United Arab Emirates have not only chosen Huawei for their 5G rollouts, but have also partnered with the company to develop "smart cities."

These feature enhanced digital services and security surveillance -- a Huawei speciality Gulf states value highly for monitoring their populations.

Gulf countries' "use of technologies for population surveillance is closer to the practices of China than those of Western countries," said Camille Lons, of the International Institute for Strategic Studies.

Concerns about Huawei voiced in the US and Europe "weren't convincing" in the region, she told AFP.

Mitigating 'political pressures' 

While the telecoms giant has had a strong presence in the Gulf since the 1990s, its deals and big announcements there have multiplied in recent years.

In January, Saudi Arabia announced it would open the largest Huawei store outside China in Riyadh, a few months after a deal with the company on developing artificial intelligence to support public and private sector growth.

Last summer, Saudi investment firm Batic cemented a deal with Huawei to work on "smart city" projects in the kingdom, where it is already a main partner in the Yanbu Smart Industrial City project on the Red Sea.

Huawei has also developed apps and digital infrastructure to support Muslim pilgrims visiting Mecca and Medina, Islam's two holiest sites.

"By gaining the trust of our partners in the Middle East, we have been able to mitigate external political pressures like those pursued by the US," Charles Yang, Huawei's Middle East chief, told AFP from the company's headquarters in Dubai.

In the high-tech emirate, one of 7 that make up the UAE, Huawei has launched projects ranging from data storage to online payment services for public transport networks. 

Dubai-based Emirates, the Middle East's largest airline, last year chose Huawei to build a center to boost the company's surveillance and security capabilities.

An Emirates spokesperson declined to elaborate on the precise nature of the technology, but said "such solutions are utilized... around the world primarily for public safety and security reasons."

'Risk' for the US

China remains one of the Gulf's leading trade partners.

UN figures show its 2019 trade with Saudi Arabia -- the world's largest exporter of crude oil -- reached about $36.4 billion, while with the UAE it exceeded $50 billion.

"Digital infrastructure has become a key pillar of (Gulf states') national transformation strategies," Yang said.

Huawei said this month it hoped for a reset with Washington, after former US president Donald Trump targeted the firm as part of an intensifying China-US trade and technology standoff.

But Lons from the International Institute for Strategic Studies warned the apparent Huawei-Gulf honeymoon could cause security worries for the US.

She noted the presence of American military bases in the region, and that Gulf countries are "major buyers of US military equipment."

There could be concerns about the "risk that sensitive US military information or technology is being spied on and transferred to China," she said.

Agence France-Presse

Verizon bids big to win US bandwidth for 5G network

SAN FRANCISCO - Verizon will spend $1.9 billion to speed up its deployment of superfast 5G telecom service as a top bidder for US bandwidth that balances range and data speed.

The Federal Communications Commission on Wednesday released results of bidding for leases to use portions off the 3550-3650 MHz bandwidth.

Dish Network -- bidding as Wetterhorn Wireless -- was in second place with a winning offer of $913 million, according to the FCC.

The remainder of the top five bids were cable companies Comcast, Spectrum and Cox, the agency said.

The US last month announced that 100 megahertz of "contiguous, coast-to-coast mid-band spectrum" long reserved for the military would also be auctioned off to telecommunications firms for use in ultra-speedy 5G networks.

The bandwidth in the range from 3450 and 3550 megahertz was identified for use in 5G networks and can be made available without impairing military or national security capabilities, according to senior administration officials.

The addition will increase to 535 megahertz the amount of mid-band spectrum available for 5G networks in the US, which is behind other countries such as China and South Korea when it comes to deploying the potentially transformative technology.

First generation mobile networks enabled wireless phone calls, and the second generation added texting.

Third-generation mobile networks could handle more data, such as sending pictures and using basic apps, while the current 4G networks can carry bigger loads such as streaming video.

5G networks are touted as promising an exponential leap in the amount and speed of wireless data, enabling advances in self-driving vehicles, virtual reality, connected health and more as sensors and servers communicate instantly. 

Mid-bandwidth made available by the FCC strikes a balance between how far signals reach and how fast data travels, with low-bandwidth sacrificing speed for distance and high-bandwidth quick but short-ranged.

Prior to winning in this auction, Verizon had focused on service at the high-frequency end of the spectrum.

Agence France-Presse

Qualcomm says China virus threatens phone industry disruption

Qualcomm Inc raised concerns around the threat to the mobile phone industry's supply chain from the coronavirus outbreak in China, dragging down shares.

On a conference call with investors, Chief Financial Officer Akash Palkhiwala said Qualcomm expects "significant uncertainty around the impact from the coronavirus on handset demand and supply chain."

Shares fell 3.3 percent in after-hours trade.

The San Diego-based chip supplier forecast second-quarter revenue largely above Wall Street estimates on Wednesday, in the latest sign that a protracted slowdown in the global chip industry is easing.

Qualcomm is the world's biggest supplier of "modem" chips that connect mobile phones and other devices to wireless data networks. 

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Huawei wins contract to develop German 5G network

BERLIN — Chinese telecom giant Huawei on Wednesday won a contract to supply 5G infrastructure in Germany but the politically sensitive deal is subject to government approval following US concerns about snooping.

Telefonica Germany, the second biggest operator after Deutsche Telekom, said it was giving Huawei and Finland's Nokia an equal role in the project, calling the 2 companies "proven strategic partners".

"This cooperation... will be subject to successful security certification of the technology and the companies in accordance with the legal regulations in Germany," Telefonica Germany said in a statement.

The company, a unit of Spanish giant Telefonica, said it was "thus responding to the ongoing political process of defining these security guidelines without delaying the start of the 5G roll-out".

It said it would begin the 5G upgrade next year and was hoping to supply 30 cities by the end of 2022.

The US and other international powers have voiced concerns that Huawei could be used by Beijing for spying -- a claim the company strenuously denies.

Germany has so far defied pressure to exclude Huawei from taking part in the bidding process, insisting that it would set stringent security conditions.

But critics have accused Berlin of trying to appease China, its largest trading partner, and putting economic interests first.

Last month, Economy Minister Peter Altmaier sparked US anger by drawing a parallel between alleged Chinese and US snooping as part of the debate.

Altmaier referred to the allegations that began emerging in 2013 of US spying on German soil.

Even so, he said: "We didn't boycott them".

Altmaier also pointed out that the US required its own telecoms companies to provide information "that is necessary in the fight against terrorism".

US Ambassador Richard Grenell said there was "no moral equivalency between China and the United States".

Agence France-Presse 

Nokia, Japanese firms tie up on industrial-use 5G network services

TOKYO - Nokia Corp. said Wednesday that it has tied up with five Japanese companies in offering next-generation 5G network services to corporate customers.

The Finnish telecommunications giant will build the ultrafast communications networks with Japanese partners, including computer systems company NS Solutions Corp. and telecommunication equipment maker Hitachi Kokusai Electric Inc., mainly for manufacturers.

The tie-up, which also involves trading house Marubeni Corp., communications firm Internet Initiative Japan Inc. and data center operator Equinix Inc., comes as the Japanese government will start taking applications from companies for private 5G licenses later this month.

Demand for 5G networks, which can deliver data transmission speeds around 100 times faster than the current 4G networks, is expected to grow as manufacturers aim to connect devices at factories through 5G networks to boost productivity amid a labor shortage.

Nokia said it has already offered private wireless networks to over 120 corporate customers around the world.

"With spectrum availability now opening up in Japan, Nokia is bringing forth a unique combination of technology, services and partnerships," John Harrington, head of Nokia Japan, said in a press release.

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Sweden's Ericsson to pay $1 billion over bribery allegations: US gov't

WASHINGTON - Swedish telecoms firm Ericsson has agreed to pay more than $1 billion to resolve allegations of bribery spanning Asia and the Middle East, the US Justice Department announced Friday.

An Egyptian subsidiary also pleaded guilty in a federal court in New York to a charge of conspiring to violate the 1977 Foreign Corrupt Practices Act.

"Ericsson's corrupt conduct involved high-level executives and spanned 17 years and at least five countries, all in a misguided effort to increase profits," Brian Benczkowski, head of the Justice Department's criminal division, said in a statement.

US law grants jurisdiction over corruption by companies whose shares are sold on American stock markets or if the crime touches the country's territory or its financial system.

Prosecutors say that between 2000 and 2016, the company engaged in a scheme to pay bribes, falsify its books and records and ensure company officials turned a blind eye to the corruption, according to the Justice Department statement.

Alleged corruption occurred in Djibouti, China, Vietnam, Indonesia and Kuwait.

Among other examples, Ericsson admitted that during those years it channeled tens of millions of dollars through consultants and service providers in China, creating a slush fund to lavish gifts, travel and entertainment on foreign officials in order to win business from state-owned telecoms companies.

In a statement on its website, the company said it would not comment on the matter other than to say the figure of $1.2 billion, disclosed in September, "is still its current estimate of the amounts needed to cover the monetary sanctions" and other costs.

The funds are to be split between the Justice Department and the Securities and Exchange Commission, according to the Justice Department.

The two agencies jointly enforce US foreign bribery laws.

The company has also agreed to retain a third-party monitor to oversee its compliance for three years.

A total of 44 countries have enacted laws criminalizing the payment of bribes to foreign officials to win business, but the United States has long been the most active in punishing international corruption.

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T-Mobile launches 5G service across US

WASHINGTON - T-Mobile said Monday it became the first to launch 5G wireless service across the United States, although it will be slower than some expect for the new generation of connectivity.

The number three US carrier said its 5G network covers 200 million people and "goes through walls," outperforming the limited 5G deployment of larger rivals Verizon and AT&T earlier this year.

"Today's launch immediately catapults T-Mobile into the leadership position as the country's biggest 5G network," the company said in a statement.

It added that it will improve and expand its 5G network if it completes a planned merger with rival Sprint, a deal approved by US regulators but facing a court challenge by several US states.

The T-Mobile system operates on a low band that offers speeds faster than current 4G networks but below the maximum promised for 5G but the company called it "real, standards-based 5G."

"We built 5G that works for more people in more places, and this is just the start," said Neville Ray, the company's president of technology. 

"With the New T-Mobile, we'll see 5G speeds follow the same path as LTE, increasing exponentially over time. Plus, real broad and deep 5G will unleash whole new categories of innovation that will touch almost every area of the economy. The 5G future is bright, and it starts today."

T-Mobile will be selling 5G handsets that can operate on the network including the OnePlus 7T Pro 5G McLaren and the Samsung Galaxy Note10+ 5G.

The rollout of 5G is proceeding in several countries with a promise of spurring innovation in a variety of sectors.

The ultrafast connections could help in fields such as telemedicine, self-driving cars, and a variety of industrial applications, for example.

US authorities have banned the use of equipment from Chinese-based Huawei, the leading infrastructure maker, on concerns that its network could pose national security risks, a charge the company denies.

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US telecom titans and states align to mute 'robocalls'

SAN FRANCISCO -- A dozen telecom firms and state attorneys general from across the US agreed Thursday to a set of principles aimed at curbing illegal "robocalls."

Infuriating and often deceptive "robocalls" by the billions prompted US regulators to recently adopt new rules allowing carriers to implement tools to block calls with suspicious origins.

Principles crafted as voluntarily industry practices included wielding technology to block automated, mass-delivered calls from con artists or dodgy marketers.

"Robocalls are a scourge - at best, annoying, at worst, scamming people out of their hard-earned money," said North Carolina attorney general Josh Stein.

"By signing on to these principles, industry leaders are taking new steps to keep your phone from ringing with an unwanted call."

Telecommunications firms signing on to the eight principles agree to help states track down criminals behind frauds employing robocalls, according to Stein.

Under the principles, telecoms will use technology in their networks to figure out if calls are coming from legitimate sources and will monitor for robocall traffic.

The coalition of companies included AT&T, Comcast, Sprint, T-Mobile and Verizon, according to Stein's office.

"Few things can bring together policy leaders across the political spectrum like the fight against unwanted robocalls," Federal Communications Commission chairman Ajit Pai said in a statement.

"These principles align with the FCC’s own anti-robocalling and spoofing efforts."

Telecom technology has made it easy to create programs to make internet calls automatically to thousands, delivering spam messages and disguising numbers to make it seem as if the calls are from local residences or legitimate businesses.

According to mobile app maker Truecaller, fraud from robocalls cost Americans some $10.5 billion between April 2018 and April 2019.

YouMail, a firm which makes software designed to block unwanted calls, said Americans received a total of 48 billion robocalls in 2018.

The calls can be used to extract fraudulent payments, or obtain personal information for identity theft or other scams.

"Robocalls are so common because they are easy to make, very cheap, and they work," Alex Quilici, chief executive of YouMail, told AFP in a recent interview.

The epidemic of robocalls could have economic impact beyond those of the spam victims, by dissuading people from responding to legitimate or important calls.

The principles announced Thursday offer a comprehensive set of best practices to fight illegal and unwanted robocalls, said Columbia University computer science professor and former FCC chief technology officer Henning Schulzrinne.

"I hope that all parts of the telecommunication industry, both large and small, will commit to rapidly implementing these principles," he added.

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US government contractors get first look at Huawei ban

WASHINGTON - The U.S. agency responsible for government contracts on Wednesday released an interim rule for a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei.

The ban is part of a broad U.S. push against Huawei Technologies Co Ltd, the world’s largest telecommunications network gear maker, which Washington accuses of espionage and stealing intellectual property.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. It has filed a lawsuit against the U.S. government over the restrictions in the defense policy bill.

The ban was included in the National Defense Authorization Act (NDAA) passed last year, and restricted the use of federal money to purchase telecommunications equipment and services and video surveillance equipment from "covered" telecommunications companies, citing national security concerns.

Huawei said in a statement that it "continues to challenge the constitutionality of the ban in federal court."

A spokesman for Hikvision, another of the five banned companies, said it is committed to complying with laws and regulations in countries where it operates. Hikvision "has made efforts to ensure the security of our products adhere to what is mandated by the U.S. government," the spokesman said.

Huawei and two of the other companies - ZTE Corp and Hytera - did not immediately respond to a request for comment on Wednesday. The fifth company, Dahua , could not immediately be reached for comment.

Government contractors have said they were confused about the scope of the ban and what it will mean for their businesses.

The first rule implementing the ban was posted on a website for contractors called Acquisition.gov run by the General Services Administration, the government agency responsible for contracting. The interim rule is slated to take effect on Aug. 13.

The government will accept comments on the rule for 60 days before it comes to a final version. It will allow agencies some ability to grant waivers through Aug. 13, 2021, for contractors where security is not at issue.

The broader ban, which will apply to contracts with any company that uses equipment from the companies, will take effect in August 2020.

In June, the White House Office of Management and Budget had asked Congress for two additional years to phase in the ban - a request that was quickly rebuffed by Republican national security hawks.

"The administration has a strong commitment to defending our nation from foreign adversaries, and will fully comply with Congress on the implementation of the prohibition of Chinese telecom and video surveillance equipment, including Huawei equipment," said Jacob Wood, a spokesman for the OMB.

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US approves merger of wireless operators T-Mobile, Sprint

US antitrust authorities on Friday approved the $26 billion merger of T-Mobile and Sprint in a deal that brings together the third- and fourth-largest wireless operators as the industry moves toward deployment of superfast 5G networks.

The deal aims to create a strong number three US operator to compete against sector leaders Verizon and AT&T and speed 5G deployment, but consumer groups have complained the deal would mean more concentration and higher prices.

It calls for Sprint to sell some of its prepaid wireless operations to satellite TV operator Dish Network, which would create its own telecom service.

"With this merger and accompanying divestiture, we are expanding output significantly by ensuring that large amounts of currently unused or underused spectrum are made available to American consumers in the form of high quality 5G networks," said Makan Delrahim, head of the Justice Department's Antitrust Division.

Delrahim added that the agreement "will provide Dish with the assets and transitional services required to become a facilities-based mobile network operator that can provide a full range of mobile wireless services nationwide."

T-Mobile, whose parent is German-based Deutsche Telekom, and Sprint, controlled by Japan's SoftBank, claim the merger will allow them to compete against their larger rivals.

"The T-Mobile and Sprint merger we announced last April will create a bigger and bolder competitor than ever before -- one that will deliver the most transformative 5G network in the country, lower prices, better quality, unmatched value and thousands of jobs," said T-Mobile chief executive John Legere, who will retain the CEO job upon completion of the merger.

"Today's results are a win-win for everyone involved. We cannot wait to get to work bringing this pro-consumer, pro-competition New T-Mobile 5G network to US customers from coast to coast."

Sprint executive chairman Marcelo Claure said the tie-up "will allow the US to fiercely compete for 5G leadership" and that the combined firm would build "one of the world's most advanced 5G networks, which will massively revolutionize the way consumers and businesses use their connected devices to enhance their daily lives."

No timetable for finalizing the merger, which was first announced more than a year ago, was given on Friday.

- Higher prices? -
Consumer groups and others have criticized the deal, arguing that too much concentration would lead to higher prices.

Earlier this year, 14 states sued to block the deal. The Justice Department said five states agreed to the settlement, which still faces approval in court.

Joshua Stager of the New America Foundation's Open Technology Institute said the deal falls short of retaining four "viable competitors" for the sector and said the effort to sell off assets to Dish was "needlessly convoluted."

"DOJ does not need to bend over backwards to fix a bad merger. It can simply block the deal," he said.

Derek Turner of the consumer group Free Press also denounced the deal.

"This arrangement does not offer cellphone users a viable fourth competitor in the wireless market," Turner said.

"This merger is bad for wireless users and can't be fixed."

Avery Gardiner, an antitrust fellow at the Center for Democracy & Technology, said the decision to approve the deal "goes against decades of settled principles" of competition.

"The wireless industry is already highly concentrated, and this deal is likely to result in higher prices, calcified cell service plans, and lower quality all around," she said.

But Jessica Melugin of the Competitive Enterprise Institute said the deal would be positive for consumers by allowing for three strong 5G operators.

"With the government out of the way, consumers will get the wireless innovations they deserve and that the unfettered marketplace can deliver," Melugin said.

Dish Network, which operates satellite and other pay TV systems, said it would deploy a "5G broadband network capable of serving 70 percent of the US population by June 2023."

Dish will get wireless spectrum to be divested in the deal as well as the prepaid Sprint operations Boost Mobile, Virgin Mobile, and Sprint Prepaid.

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Huawei to build wireless network for Canadian north

OTTAWA - Embattled Chinese telecom giant Huawei unveiled plans Monday to deploy high-speed wireless internet to dozens of underserved communities in Canada's remote northern regions.

The move -- mostly 4G deployments and not the superfast fifth-generation or 5G -- comes with Huawei under sanctions in the United States over national security concerns and amid a diplomatic crisis between Canada and China over the detention of a Huawei executive in Vancouver.

Huawei said it would partner with Ice Wireless and Iristel to help them connect by 2025 rural communities in the Arctic as well as remote areas of northeastern Quebec and Newfoundland & Labrador.

Huawei added that some 25 communities in the largely Inuit areas of the Nunavut territory would also benefit from the deployment.

"We strongly believe that everyone should be connected to 4G LTE, no matter where they live in Canada -- even in areas where high-speed service may not be economically viable," said Eric Li, president of Huawei Canada.

Although most Canadians have access to high-speed internet, connectivity remains unavailable across some sparsely populated areas of the country.

Huawei officials said they will work to deploy wireless internet that will operate in some of the coldest temperatures on earth.

"We need to use highly reliable, world-class equipment to minimize physical intervention and to avoid outages that risk making our communities isolated once again. That's why we partner with Huawei Canada," said Jean-Francois Dumoulin, vice president at Ice Wireless and Iristel.

The move comes with Washington pressuring its allies to avoid using Huawei for deployment of 5G wireless, claiming the Chinese firm's ties to Beijing and its intelligence services could pose security risks.

Meanwhile tensions have been high between Beijing and Ottawa since the arrest in December of Huawei chief financial officer Neng Wanzhou in Canada at the request of Washington.

US authorities want to put her on trial on fraud charges for allegedly violating Iran sanctions and lying about it to US banks -- accusations that Meng's lawyers dispute.

Since then, two Canadians have been arrested in China in what has been viewed as retaliation for Meng's detention.

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Britain 'approves' Huawei role in 5G network

LONDON - British Prime Minister Theresa May has reportedly approved a limited role for China's Huawei to help build a 5G network in the UK, shrugging off security warnings from senior ministers and Washington surrounding the telecoms giant, media said Wednesday.

Britain's National Security Council, which is chaired by May, agreed Tuesday to allow the Chinese technology giant limited access to build "non-core" infrastructure such as antennas, The Daily Telegraph newspaper wrote.

The Financial Times, citing those close to the meeting, added that the Chinese company had been banned from more sensitive "core" parts of the project. 

The Times newspaper meanwhile was more cautious, stating that May was "considering giving limited approval".

Her reported moves come despite concerns raised by Home Secretary Sajid Javid, Foreign Secretary Jeremy Hunt, Defence Secretary Gavin Williamson, International Trade Secretary Liam Fox and International Development Secretary Penny Mordaunt.

May's Downing Street office declined to comment on the story.

However, Digital Minister Margot James dismissed the media speculation.

"In spite of cabinet leaks to the contrary, final decision yet to be made on managing threats to telecoms infrastructure," she tweeted.

She later told Sky News that while a final decision had not been made, James indicated that a security review had concluded.

"The decision has not been finally made yet and the Prime Minister will take advice form all of the relevant agencies and departments," James added.

Huawei itself welcomed the report.

"Huawei welcomes reports that the UK government is moving towards allowing Huawei to help build the UK's 5G network," it said in a brief statement.

"This green light means that UK businesses and consumers will have access to the fastest and most reliable networks thanks to Huawei's cutting edge technology.

"While we await a formal government announcement, we are pleased that the UK is continuing to take an evidence-based approach to its work and we will continue work cooperatively with the government, and the industry," the Chinese company added.

Britain's move would be at odds with the United States, which has banned Huawei's 5G technology from its territory and urged allies in the so-called Five Eyes intelligence sharing collective -- comprising also Australia, Britain, Canada and New Zealand -- to follow suit.

Huawei is the leading manufacturer of equipment for next-generation 5G mobile networks with almost instantaneous data transfer that will become the nervous system of Europe's economy, in strategic sectors like energy, transport, banking and health care.

SPYING FEARS

The technology titan faces pushback in some Western markets over fears Beijing could spy on communications and gain access to critical infrastructure.

Last month, Britain identified "significant technological issues" in Huawei's engineering processes that pose "new risks" for the nation's telecommunications, according to a government report.

"Further significant technical issues have been identified in Huawei's engineering processes, leading to new risks in the UK telecommunications networks," read annual findings from the Huawei Cyber Security Evaluation Centre oversight board.

The board -- which includes officials from Britain's GCHQ cybersecurity agency as well as a senior Huawei executive and representatives from the UK telecommunications sector -- added it could provide only limited assurance that risks posed by the Chinese tech giant to UK national security would be "sufficiently mitigated long-term".

Shrugging off the widespread concerns, Egypt on Sunday said Huawei would roll out a 5G phone network there for the first time during the upcoming Africa Cup of Nations football tournament.

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New tech regulation 'inevitable,' Apple CEO says

WASHINGTON - Apple CEO Tim Cook predicts that new regulations of tech companies and social networks to protect personal data are "inevitable."

In an interview with news website Axios being broadcast broadcast Sunday on HBO television, Cook said he expected the US Congress would take up the matter.

"Generally speaking, I am not a big fan of regulation," Cook said in an excerpt released by Axios. "I'm a big believer in the free market. But we have to admit when the free market is not working. And it hasn't worked here. I think it's inevitable that there will be some level of regulation.

"I think the Congress and the administration at some point will pass something."

Cook has previously been a proponent of self-regulation, especially as concerns user data protection.

But following the scandal that saw data consultancy Cambridge Analytica obtain data from millions of Facebook users, Cook said the industry was now "beyond" the scope of self-regulation.

Facebook has been trying to fend off concerns about how well it protects user data and defends against use of the site to spread misinformation aimed at swaying elections.

Controversies that have battered Facebook since the 2016 presidential election in the United States have raised questions over whether co-founder Mark Zuckerberg should keep his post as chief executive.

Turning to gender inequality in the workplace, Cook said the tech industry has generally been strong in diversity, even though a male-dominated culture prevails.

"I agree 100 percent from a gender point of view that the (Silicon) Valley has missed it, and tech in general has missed it," he said.

However, Cook added, "I’m actually encouraged at this point that there will be a more marked improvement over time."

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Australia telecom giant Telstra flags tough times as profit slides

SYDNEY - Australia's dominant telecommunications company Telstra Thursday warned of "enormous challenges" ahead as it posted an 8.9 percent slump in annual profit.

Its net result in the year to June 30 fell to Aus$3.52 billion (US$2.54 billion), while revenue was flat at Aus$26 billion.

Chief executive Andy Penn said intense competition for mobile customers and increased customer expectations were having an impact on business.

"Companies are defined by how they respond in challenging times and there is no doubt Telstra, and the telecommunications industry globally, is operating in times of enormous challenge and change," he said. 

"On one hand demand for our core products and services continues to grow. Telecommunications networks have become some of the most important pieces of infrastructure in the world today. 

"On the other hand, competition has never been more intense, our market dynamics are shifting rapidly, and customer expectations are changing."

He pointed to the accelerated rollout of a national broadband network, in particular, as weighing on the company.

"This is having an enormous impact on our business -- wholesale prices have risen, meaning we and other industry participants are facing a fixed-line market where reseller margins are rapidly reducing," he said. 

"At the same time, competition in the mobile market is increasing with the expected entrance of a fourth mobile network operator. These factors have influenced our performance this year."

In a bid to transform the business to deal with the new realities, Telstra, one of Australia's largest employers, has put in place a new strategy to be achieved by 2022.

This includes a plan announced in June to axe 8,000 jobs -- a quarter of its workforce -- in a bid to achieve an extra Aus$1 billion in cost-cutting, on top of Aus$1.5 billion previously announced.

It will also split its mobile and infrastructure divisions into separate businesses.

"We are determined to meet the challenges we face, and to continue to lead in the market, just as we have always done," said Penn.

Telstra said it will pay a six-monthly dividend of 11 cents for a full-year payout of 22 cents.

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T-Mobile, Sprint to merge: CEOs

WASHINGTON - US wireless operators Sprint and T-Mobile will form a new company and push development of a super-fast 5G network, the heads of both firms said Sunday.

The announcement came months after the 2 companies called off merger talks when they failed to clinch mutually agreeable terms.

"I'm excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company -- a larger, stronger competitor that will be a force for positive change for all US consumers and businesses!" T-Mobile CEO John Legere announced as part of a series of tweets about the tie-up.

T-Mobile, a division of Germany's Deutsche Telekom, and Sprint -- a subsidiary of Japan's SoftBank -- are at present the third and fourth largest US wireless operators, respectively.

Together they would have about 131 million subscribers, virtually matching second-ranked AT&T and posing stiff competition to market leader Verizon Communications.

Sprint chief executive Marcelo Claure also used Twitter to announce "some incredibly exciting news - @Sprint and @TMobile are joining forces."

He said they will "combine to create the most disruptive U.S. carrier!"

In a video posted online the long-haired Legere and Claure, wearing a T-shirt, appeared side-by-side.

Legere said "the New @TMobile will be the ONLY company able to bring a broad & deep nationwide 5G network -- something no US wireless company could achieve alone in the critical early years of 5G."

In its first three years, the new firm will be able to invest around $40 billion, "nearly 50 percent more than both of us invested in the last three years," he said.

'20,000 LOST JOBS'

Legere announced that he would lead the new company as CEO, while T-Mobile's chief operating officer Mike Sievert would be president.

T-Mobile is one of the biggest earners for its German parent.

In 2017, it added 5.7 million net new customers compared with 8.2 million the previous year, but the hoped-for merger with Sprint fell through in November.

At that time, the Communication Workers of America union had warned that a merger would result in the loss of at least 20,000 US jobs through store closings and other consolidation, while also harming consumers.

The 2 firms had previously held talks in 2014 on a merger but ended discussions in the face of opposition from US regulators.

5G or fifth-generation wireless communication networks would enable services such as smart cities, remote surgery and driverless cars.

The networks would allow customers to experience video and virtual reality with greater ease.

Claure, who is also a partner in David Beckham's Miami Major League Soccer franchise, said "the difference between 4G and 5G is the difference between black-and-white TV and color TV."

The first commercial 5G roll-outs begin this year and next in the United States, Korea and Japan, but industry players have cautioned development of 5G still has a long way to go.

In February China's Huawei unveiled what it said is the world's first commercial chipset to meet the standards of 5G wireless networks.

An unusual move by US President Donald Trump earlier this year to block a proposed takeover of Qualcomm by a chip rival then based in Singapore highlighted growing concerns about the rise of Chinese competitors.

Trump's order made no mention of China, but a letter from the US Treasury Department warned that the mooted takeover by Broadcom might hurt US leadership in 5G.

5G will account for 14 percent of global wireless connections by 2025, according to GSMA, the global mobile operators association.

Deutsche Telekom CEO Timotheus Hoettges has estimated the cost of providing 5G networks in Europe alone will be €300-500 billion ($363-606 billion).

The telecoms industry will invest $275 billion in the United States to develop 5G networks there, Claure said at the Mobile World Congress in Barcelona in February.

source: news.abs-cbn.com