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 

Huawei, barred in US, offers app inducements in Europe

LISBON, Portugal — Blacklisted in the United States, Chinese telecoms group Huawei is on a charm offensive at Europe's biggest tech gathering, wooing app developers to embrace its own operating ecosystem.

Having this week announced plans to spend $40 billion on European supplies, after being shut out of buying US-made chips and technology, the company has been a prominent player at the Web Summit in Portugal.

Never mind US allegations that its products -- especially in 5G networking -- offer back-door access for Chinese spies: Huawei's stand has pride of place at the pavilion entrance and its current chairman, Guo Ping, gave the keynote address during Monday's opening night.

Huawei executives held an afternoon-long briefing for about 300 developers for smartphone apps, followed by a dinner for those who had the stamina to hear more.

The message: Huawei can offer in-house expertise and price reductions to developers who have to pay a hefty chunk of their revenues in order to sell games and apps on Google's Android and Apple's iOS systems.

"We want to make sure that no developer feels left out or feels that the hurdle to enter our developer program is too high," said Jervis Su, vice president of mobile services at Huawei.

It is part of a strategy to lessen Huawei's reliance on US supplies and technology, following the offensive launched on the company by President Donald Trump's administration amidst a Sino-US trade war.

Huawei hotly denies it is in cahoots with Chinese intelligence, and has been building up a robust share of the next-generation 5G market in Europe and Asia.

Nevertheless, Huawei has for now lost access to Google services on its phones because of the US sanctions, and is working on an alternative operating system for a broad range of interconnected devices, called HarmonyOS.

 Huawei, Guo noted, is investing $1.5 billion over five years on training programs in universities and startups around the world and another $1 billion to encourage innovation among developers -- all with a view to extending its market penetration away from Washington's reach.

"5G upgrades our communication infrastructure and AI (artificial intelligence) provides us with the most powerful computing engines," he told the Lisbon conference.

"However, the applications and software are what generate true value."

ESCAPING THE US VICE

On its smartphones, the Chinese group has its own App Gallery, which was launched in Europe last year and currently counts about 50,000 applications.

Adnan Selimovic, senior software architect at Austrian company TeleTrader, said Huawei had actively solicited his firm's entry into the App Gallery.

"Then they asked us to collaborate further by integrating more functionalities like push notifications" and interactive widgets for mobile trading, he said.

TeleTrader already has separate development teams for its Android and iOS apps. The support of Huawei's own developers meant it did not have to hire a costly third team.

To try to entice more games apps, Huawei has cut the commission it takes from developers for in-app purchases to 15 percent, half that charged by Google and Apple.

"Huawei is striving to escape the (American) vice they're in," commented Francois Candelon, a telecoms expert at Boston Consulting Group.

"In order to succeed in Europe, they are going to try to attract the maximum number of developers because they don't have another choice," he said.

Indeed, Washington's offensive is deepening as regulators prepare to vote on November 19 on rules that would block US telecom carriers from buying supplies from Huawei and another Chinese tech firm, ZTE, and to remove any of their equipment already in place.

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Samsung heir's corruption retrial hangs over phonemaker

SEOUL — The heir to the Samsung empire returns to court this week for a retrial over a sprawling corruption scandal that could see him return to prison and deprive the world's largest smartphone and chip manufacturer of its top decision-maker.

Lee Jae-yong is vice chairman of Samsung Electronics -- where profits have been falling for months -- and was jailed for 5 years in 2017 for bribery, embezzlement and other offences in connection with the scandal that brought down South Korean president Park Geun-hye.

The 51-year-old was freed a year later after an appeals court dismissed most of his bribery convictions, but that decision was set aside by the Supreme Court in August, which ordered a retrial.

The new proceedings begin Friday and are likely to last for months.

At the same time, Samsung Electronics is battling challenges from the US-China trade war and tough export restrictions imposed by Tokyo on key supplies amid a dispute with Seoul over wartime history.

While the firm's daily business is managed by a board of directors, a leadership vacuum would greatly hamper its ability to make major decisions, KB Securities said in a report.

The retrial added to uncertainty for the company, said a source with direct knowledge, adding: "There are things that only Lee Jae-yong can do."

Samsung Electronics is the flagship subsidiary of the Samsung group, by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 11th-largest economy. 

Its overall turnover is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health.

"It's a huge burden for Samsung Electronics and will have negative ripple effects on the Korean economy," said Kim Dae-jong, a business professor at Sejong University.

The phone maker has flagged a profit drop of more than 50 percent in the third quarter -- its fourth consecutive earnings fall -- faced with a long-running slump in the global chip market.

It has also had to contend with glitches with its top smartphones, delaying the release of the Galaxy Fold and warning users of other devices about a fingerprint identification vulnerability.

MOON MEETINGS 

The trials of Lee and Park highlighted shady links between big business and politics in South Korea, with the ousted president and her close friend, Choi Soon-sil, accused of taking bribes from corporate bigwigs in exchange for preferential treatment.

Lee's case centered on millions of dollars his group paid Choi, allegedly for government favors such as ensuring a smooth transition for him to succeed his ailing father.

He has effectively been at the helm of the sprawling Samsung group since his father and group chairman Lee Kun-hee was left bedridden by a heart attack in 2014.

In July he flew to Japan in a high-profile trip to secure chip materials following Tokyo's restrictions, and this month he announced a plan to invest more than 13 trillion won ($11 billion) in developing next-generation displays.

South Korean President Moon Jae-in stood next to Lee as he made the announcement at a Samsung plant in Asan, south of Seoul -- their ninth official meeting since the Samsung heir was freed.

Moon -- who took office after a sweeping election victory with promises of weeding out deep-rooted, corrupt ties between chaebols and regulators -- has increasingly been warming to the country's largest conglomerates.

"I thank Samsung for... leading the South Korean economy," Moon said. "I thank Vice Chairman Lee Jae-yong for delivering such good news to the people."

South Korea is seeing growth at around 2 percent and, like his predecessors, Moon was looking to Samsung to prop up the economy through his recurring meetings, said Professor Kim.

Noh Dong-ill, a law professor at Korea University, said the judiciary tended to have a "fixed-rate system" for verdicts against chaebol leaders, giving them lighter punishments citing their "contribution to national economy".

Both Lee's father and grandfather -- Samsung founder Lee Byung-chull -- had brushes with the law themselves, but never served time behind bars.

"The judges could reach a similar ruling this time," Noh said.

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Facebook might start hiding 'Like' counts for posts

SAN FRANCISCO - Facebook on Tuesday confirmed it was dabbling with no longer making a public display of how many "likes" were racked up by posts.

Such a change could ease pressure to win approval with images, videos or comments and, instead, get people to simply focus on what is in posts.

Facebook-owned Instagram earlier this year announced it was testing hiding like counts and video view tallies in more than a half-dozen countries, with account holders still able to see the numbers but masking amounts from others.

"We are considering hiding like counts from Facebook," a spokesman for the leading social network told AFP on Tuesday.

Twitter has also experimented with hiding numbers of times tweets were "liked" or "retweeted," according to product lead Kayvon Beykpour.

Twitter found that people engaged less with tweets when they couldn't see the counts.

"When you remove engagement indicators, people engage less," Beykpour said while briefing journalists at Twitter headquarters in San Francisco last month.

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S. Korea Supreme Court orders retrial for Samsung heir

SEOUL - South Korea's top court on Thursday ordered a new trial for Samsung heir Lee Jae-yong, who was convicted of offenses including bribery and embezzlement in connection with the scandal that brought down former president Park Geun-hye.

The de facto head of the world's biggest smartphone and memory chip maker, Lee was jailed for 5 years in 2017 but freed a year later after an appeals court dismissed most of his bribery convictions and gave him a suspended sentence. 

The Supreme Court set aside that decision Thursday and sent his case back for new proceedings.

The decision is a blow to the company, which is by far the biggest of the family-controlled conglomerates that dominate business in the world's 11th-largest economy, and crucial to the country's financial health.

It already faces a weak global chip market and fresh challenges from export restrictions imposed by Tokyo over key chipmaking chemicals amid a long-running dispute between the neighbors over wartime history.

Japan's move threatens to disrupt memory chip production and Lee has called it a "crisis", visiting Tokyo to seek to secure materials.

His court case centered on millions of dollars his firm paid to Park's secret confidante Choi Soon-sil, allegedly for government favors such as ensuring a smooth succession for Lee to take over the leadership of the sprawling conglomerate from his ailing father.

Chief Justice Kim Myeong-su said Thursday that Lee's case would be sent back for new proceedings to readdress multiple allegations, including bribery convictions that had been overturned by the appeals court.

That decision "misunderstood the law on bribery... which is at fault for influencing the ruling", Kim said.

In a key section of the ruling, the court said three horses worth 3.4 billion won (US$2.8 million) that Samsung Group donated for the equestrian training of Choi's daughter did amount to bribes.

Samsung Electronics, where Lee is vice-chairman, said in a statement that it "deeply regrets" causing concern.

"We will renew our commitment to carrying out the role of a responsible corporate citizen and will avoid a recurrence of past mistakes," it said, without directly addressing the verdict or its possible consequences.

Samsung Electronics reported a 53 percent drop in profits in the second quarter citing a weakening chip market and the intensifying trade row between Seoul and Tokyo.

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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.

source: news.abs-cbn.com

Britain waits for US before Huawei 5G decision

LONDON - Britain said Monday it was "not yet in a position" to decide what involvement China's Huawei should have in the UK's 5G next-generation telecoms network.

Digital Secretary Jeremy Wright told parliament that London was still seeking clarity on the implications of US action against the Chinese telecoms giant, adding it would be "wrong to make specific decisions" beforehand.

"The government is not yet in a position to decide what involvement Huawei should have in the provision of the UK's 5G network," he said.

The sensitive decision, which the US authorities are monitoring closely, will therefore not be taken by the outgoing administration of Prime Minister Theresa May, who leaves office on Wednesday.

The decision will fall to her successor, either former London mayor Boris Johnson or Foreign Secretary Jeremy Hunt.

The new premier will have to decide whether to ban, partially admit or allow Huawei's complete involvement in the new 5G telecoms network.

Huawei faces pushback in some Western markets over fears that Beijing could spy on communications and gain access to critical infrastructure if the company is allowed to develop foreign 5G networks.

The company has repeatedly denied such allegations.

In May, Huawei was hit by an executive order from US President Donald Trump which effectively banned it from trading with any US companies, although a temporary licence was issued shortly after.

"Since the US government's announcement, we have sought clarity on its extent and implications but the position is not yet entirely clear," Wright said.

"Until it is, we have concluded it would be wrong to make specific decisions in relation to Huawei but we will do so as soon as possible."

Vodafone launched its 5G service in Britain this month, but without smartphones from Huawei.

By sidelining Huawei phones, Vodafone has mirrored action by EE, the first UK provider to roll out the technology that offers almost instantaneous data transfer which launched at the end of May.

pn/rjm/bmm

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Germany raises 6.5 billion euros from sale of 5G frequencies

BERLIN -- Germany has raised some 6.5 billion euros ($7.3 billion) from the sale of 5G frequencies to telecoms firms, the Federal Network Agency, said Wednesday, announcing the result of a 3-month auction.

The sale far exceeded expectations of between three billion and five billion euros, and the windfall will go towards closing the digital gap in a country whose wireless networks rank only 46th in the world for download speeds.

Germany's 3 main mobile network providers -- Deutsche Telekom, Vodafone and Telefonica Germany (O2) -- and 1&1/Drillisch, which specializes in internet services, bought the 41 frequency blocks on offer, with Deutsche Telekom taking the lion's share, the network agency said in a statement.

5G is the latest high-speed generation of cellular mobile communications.

It promises radically quicker transfers of data, making possible widespread use of artificial intelligence and other high-tech advancements such as self-driving cars and "telemedicine".

Berlin will require the winning bidders to offer the service to at least 98 percent of German households and along motorways and rail lines.

The United States has urged Berlin to bar operators from building networks on hardware from Chinese tech firm Huawei, arguing that the equipment could help Beijing spy on Western companies and governments.

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China grants 5G licences for commercial use

SHANGHAI - China on Thursday granted 5G commercial licences to four domestic companies, taking a big step in its bid to be a global leader in next generation wireless networks amid fierce rivalry from the United States.

5G is the next-generation cellular network that offers faster data transfer speed and could enhance technologies such as autonomous driving, remote medical diagnosis and mobile payments.

The Industry and Information Technology Ministry said state-owned telecom providers China Telecom, China Mobile, China Unicom and China Broadcasting Network Corporation received business licences to operate fifth generation digital cellular mobile communication services.

"After the issuance of 5G licences, we will continue to welcome foreign companies to actively participate in China's 5G market, seek common development of China's 5G, and share the achievements of China's 5G development," said Miao Wei, the minister of industry and information technology, according to the ministry's Twitter-like Weibo account.

Chinese telecom giant Huawei is a global leader in 5G development but its ambitions have faced challenges from the United States, which has urged other countries to shun the company over concerns that its equipment could be used by Beijing's intelligence services.

Commenting on the ministry's announcement, Huawei said it will "fully support" the Chinese operators to build 5G. 

"(We) believe that in the near future, China's 5G will lead the world," Huawei said on Weibo.

Another Chinese cellphone maker, Vivo, stated their 5G mobile phones are ready for network testing and will be on sale once trials are complete.

The administration of President Donald Trump banned US companies in May from selling high-tech components to Huawei on national security grounds, though a 90-day reprieve was issued.

China has since announced it will create its own blacklist of "unreliable" foreign companies.

Several firms have already distanced themselves from Huawei, including Google, whose Android system equips the vast majority of smartphones in the world.

Huawei signed a deal with Russian telecoms company MTS on Wednesday to develop a 5G network in the country over the next year, on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow.

Huawei has signed a draft agreement with the African Union that includes cooperation in 5G communications.

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Apple, Samsung fined millions for slowing phones in Italy

ROME - Italy's competition authority on Wednesday said it was fining Apple and Samsung 10 and five million euros ($11.5 and $5.7 million) respectively for the "planned obsolescence" of their smartphones.

The ruling is believed to be the first against the manufacturers following accusations worldwide that they encourage operating system updates for older phones which slow them down, thereby encouraging the purchase of new phones.

An investigation by the anti-trust authority revealed that "Apple and Samsung implemented dishonest commercial practices", a statement said.

Operating system updates "caused serious malfunctions and significantly reduced performance, thus accelerating phones' substitution."

Samsung told owners of its Note 4 phone to install a new version of Google's Android operating system intended for the more recent Note 7 but which rendered the old model sluggish.

Likewise, Apple told iPhone 6 owners to install an operating system designed for the iPhone 7, leading to problems for owners of the older model.

Apple was also found to have failed to tell customers about "essential" characteristics of its phones' lithium batteries, including their average life and how to prolong that life, resulting in a bigger fine than for Samsung.

The Italian anti-trust authority opened its investigation in January following customer complaints around the same time as a similar probe in France.

The US company was forced to admit last year that it intentionally slowed down older models of its iPhones over time, sparking concerns it was unfairly nudging consumers to upgrade.

At the time, Apple denied it intentionally shortened the life on any of its products. It said it slowed models to extend the performance of the phone, which uses less power when running at slower speeds, and prevent unexpected shutdowns.

The California-based group also faces a class-action suit in the United States.

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Huawei tells Australia its tech is 'safe and secure'

SYDNEY -- Chinese telecom firm Huawei Technologies Co Ltd's network equipment is "safe and secure", its Australian chairman said on Wednesday, ramping up the company's public lobbying against concerns that its links to China pose a security risk.

Australia is likely to bar Huawei from participating in a 5G mobile telecommunications roll-out as it fears the company is de facto controlled by Beijing and sensitive infrastructure will be vulnerable to eavesdropping, according to Australian media reports.

"Banning Huawei will not make the Australian telecom ecosystem safer, but will have a huge impact on the industry and the prices and services Australians receive," John Lord, chairman of Huawei's Australian unit, told Australian Associated Press on Wednesday.

"It will be a great policy failure and demonstrate to the world that we are not ready for the new reality of a smart and innovative China," said Lord, adding Huawei's products are "safe and secure".

The spat between Huawei and Australia's security agencies lands amid a low in Sino-Australian relations and intense concern at Chinese influence in Australian politics.

Huawei, whose chairman Lord, was a former Rear Admiral in Australia's Navy, emerged on Tuesday as the top corporate sponsor of international trips by Australian federal politicians.

Australia is preparing to pass laws designed to limit China's influence in domestic affairs following criticism by Australian Prime Minister Malcolm Turnbull that Beijing was interfering.

Turnbull said on Wednesday his government was still mulling Huawei's role in the country's nascent 5G network.

"We'll continue to consider that and get the best advice on that from our national security agencies," he said.

Huawei, the world's largest maker of telecommunications network equipment and the No. 3 smartphone supplier, has already been virtually shut out from the giant US market because of national security concerns.

It was blocked on security grounds from supplying equipment to Australia's new broadband network and Australia this month promised hundreds of millions of dollars to ensure Huawei did not build an internet cable between Australia and the Solomon Islands.

The diplomatic rift between Australia and China has spilled into the trade sphere in recent weeks as Australian wine exporters such as Treasury Wine Estates have faced delays getting some products through Chinese customs.

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ZTE could face fresh $1.3 billion fine, Trump says

WASHINGTON - US President Donald Trump said Tuesday that as a favor to China, his administration was considering a fresh set of penalties on embattled Chinese company ZTE to replace crippling sanctions imposed last month that threatened to put the firm out of business.

ZTE could face a new fine of as much as $1.3 billion as well as a management shakeup and strict new rules, Trump told reporters at the White House, although no deal has been finalized.

"As a favor to the president, I am absolutely taking a look at it," he said, referring to Chinese President Xi Jingping.

Reports of a compromise on ZTE sparked an immediate negative reaction on Capitol Hill, where top Republican and Democrat senators denounced it and one vowed to block it.

ZTE was fined $1.2 billion in March 2017, but last month Washington banned the sale of crucial US components to the company after finding it had lied multiple times and failed to take actions against employees responsible for sanctions violations on Iran and North Korea.

Trump said the harsh sanctions on ZTE hurt US firms that supply components to make cell phones.

"When I looked at it, I said, you know, they can pay a big price without necessarily damaging all of these American companies," he said.

"What I envision is a very large fine of more than $1 billion. It could be $1.3 billion. I envision new management, new board and very, very strict security rules."

The reprieve for ZTE came just after Washington and Beijing on Saturday called a halt to a spiraling trade dispute sparked by US accusations of China's unfair trade practices and the alleged theft of US technology, suspending plans to impose tariffs on as much as $150 billion in Chinese imports.

In a series of tweets, top Republican Senator Marco Rubio of Florida, who chairs a key subcommittee on foreign relations, denounced the move, vowing lawmakers would work on "veto-proof legislation" to stop the deal.

XI 'HAS PLAYED' TRUMP 

The outlines of the deal for ZTE, first reported in The Wall Street Journal, amounted to exactly the same sort of punishment that had proved ineffective last year, Rubio said.

"Now we are offering the same deal of a fine & employee discipline?" Rubio wrote.

In another tweet, Rubio said the Trump administration had "surrendered" to China.

"Making changes to their board & a fine won't stop them from spying & stealing from us."

Senate Minority Leader Chuck Schumer, Democrat of New York, said the proposed arrangement would "do nothing to protect American national or economic security and are simply a diversion from the fact that we have lost."

Schumer said in a statement the White House and Treasury Secretary Steven Mnuchin had been duped by China.

"President Xi has played President Trump and Secretary Mnuchin."

Trump also faced accusations of quid-pro-quo after pledging to soften sanctions on ZTE just days after AFP reported a Chinese state firm would pour cash into a Trump-tied real estate venture in Indonesia.

Lawmakers were incensed by Trump's offer last week to rescue the company and Chinese jobs, which came via Twitter in the midst of the trade talks with Beijing. The president angrily denied back-pedaling.

"This affair is a screaming violation of the US Constitution's emoluments clause, which flatly prohibits the acceptance of gifts and benefits from governments in the absence of congressional consent," Robert Weissman, president of Public Citizen, a consumer advocacy organization frequently skeptical of free trade agreements.

"In this case, there's nothing hypothetical about how the emolument -- the loan -- might affect the president's actions. It's almost inconceivable that it didn't," Weissman said in a statement. 

In testimony before the Senate on Tuesday, Treasury Secretary Steven Mnuchin said the administration's primary goal was safeguarding US interests and denied any quid pro quo.

"The objective was not to put ZTE out of business. The objective was to make sure they abide by our sanctions programs," said Mnuchin said.

"I can assure you anything that they consider will take into account the very important national security issues and those will be addressed."

Mnuchin defended the Trump's trade policy, saying he has been "more aggressive than any previous president ever," and is not looking for "short-term gains" but to "create a level playing field and make sure US technology is protected."

source: news.abs-cbn.com

China's ZTE teeters as US ban hits operations

SHANGHAI - Chinese telecom giant ZTE faces a grim future after ceasing major operations due to a US ban on American sales of critical technology to the company, raising the stakes in a trade spat between the world's two largest economies.

The firm's fate has added a new source of tension to trade talks between the two countries after Chinese officials raised objections to the US ban during negotiations with their American counterparts in Beijing last week.

ZTE's fiber-optic networks depend on US components and its cheap smartphones sold en masse abroad are powered by US chips and the Android operating system.

Without access to such technology, the company has been forced to partially shut down. "Major operating activities of the company have ceased," ZTE said in a filing Wednesday.

Its dimming prospects could further sour discussions just as China's top economic official, Vice Premier Liu He, heads to Washington for another round of negotiations next week.

"The Trump administration has sent a clear signal to China through its attack on ZTE: compromise, make compromises" on trade, said Cheng Xiaohe, an international relations professor at Renmin University.

"Otherwise, we will kill you."

He added that the US is also investigating another Chinese tech giant, Huawei.

A telecom components buyer specializing in ZTE products said he had seen the effects of the production halt ripple into the market, with prices for available ZTE goods jumping 50 percent or more.

"They've stopped production of all products that have chips in them," said Zhao, the buyer, who declined to give his full name, adding that if production completely stopped for a year, "all ZTE's gear will become scrap."

MAJOR ALARMS

Beijing has closely followed the developments around ZTE, a company with 80,000 employees headquartered in southern China.

The ban on US sales to the firm arose from its skirting of US export controls by selling to banned countries like North Korea and Iran with employees documenting how to evade American oversight.

Those actions led to a $1.2 billion fine last year, with the current export ban imposed in April after ZTE allegedly failed to live up to its agreement, lying about the punishment of employees involved in the sanctions skirting. 

In Beijing, officials see the ban as part and parcel of the Trump administration's hardline trade demands.

"This is ringing major alarms for China," Cheng said.

"If the trade problems aren't resolved, and a full-scale trade war erupts, these high-tech companies will bear the brunt of it."

The result is that Beijing has been galvanized to push harder to develop the technology the US is now denying to ZTE.

"China must rely on itself for core technologies," President Xi Jinping told scientists as he visited an IT firm last month, while officials confirmed they were raising a huge new fund to invest in computer chips.

ZTE said in the filing it is still "actively communicating" with the US side "to facilitate the modification or reversal" of the ban, and hopes to "forge a positive outcome".

On Sunday, the firm submitted a request to the US commerce department for a stay of the export ban, along with supplemental information.

In Wednesday's statement the firm said it still "maintains sufficient cash" and would continue to pay its debts. Trading of its Hong Kong and Shenzhen-listed shares has been halted since the US decision.

In a ZTE research and development center in Beijing, employees remained at work, with a warning posted on the wall of their office.

"Abide by the law, and strictly observe civic values," the employee regulation said.

source: news.abs-cbn.com

Nokia's birthplace is home to world's most smartphone-obsessed

HELSINKI - On the crowded morning metro in Helsinki, silence prevails. Everyone is hunched over their smartphone screens, reading the news, checking emails or watching videos.

A loud "yeah!" breaks the quiet, along with delighted screech from a toddler whose mother has just handed him her smartphone to calm him down with a video.

Finland, once a world leader in mobile telephony with Nokia, is in a class of its own when it comes to internet usage on smartphones and tablets, thanks to cheap subscription plans.

In the first half of 2016, Finns used nearly twice as much mobile data on portable devices as South Koreans, who came second in a recent comparison of 32 European and Asian countries by Swedish telecommunication specialist Tefficient.

Finns spend so much time on their phones that authorities are concerned: the city of Helsinki's department of health and social services recently launched a campaign telling parents to get their priorities straight.

In a controversial video that angered many parents, a black raven swoops down and carries away a little girl on a beach while her mother focuses on her smartphone, followed by the message: "Negligence is modern day violence."

Offended Helsinkians flooded the city with negative feedback, accusing it of criticising all phone usage, and especially women by depicting only the child's mother in the video.

But the city said it was intended to highlight the fact that some mothers spend too much time on their smartphones instead of playing with their children, and that some fathers are largely absent from their children's lives.

PARENTS COPYING TEENS

Anna Andersson, a 33-year-old mother on her way home from a pilates class with her six-month-old baby, says she wasn't offended by the campaign.

"People got quite provoked by it but in my opinion there was a point," she tells AFP.

She says she uses internet more on her phone than on her laptop but less so now that she has a child.

"The baby has efficiently reduced the time I spend online."

The country's largest operator Elisa says Finnish parents are following in the footsteps of their teenage children, who have led the way in recent years in consuming more and more internet content on the go.

"Fastest growth in usage comes from watching live images, or videos," Elisa's head of broadband subscriptions, Matias Castren, tells AFP.

He says mobile data consumption peaks especially in the evenings, when many Finns -- from teenagers to pensioners -- are glued to their phones and tablets to watch films, shows, video clips or just browse around social media, instead of watching television like they used to.

CONNECTING PEOPLE

Several factors may explain the love of smartphones.

Since the golden days of Nokia, Finland's former business crown jewel and once the world's top handset maker, Finns have been keen to adopt new technology.

Harsh cold winters require good infrastructure, and Finland early on built nationwide mobile networks offering good coverage.

And Finns are often considered taciturn with an introverted nature, and some admit preferring to keep in touch with friends and family over the Internet instead of a phone call.

For a nation of 5.5 million, there are 10.9 million mobile connection plans in Finland -- nearly two per inhabitant.

Hannele Houston, 34, is a perfect example. She owns a smartphone and a tablet, both with internet connections.

"On my phone I read news and use maps and journey planners for finding optimal routes. On my tablet I listen to music, pay my invoices and look for recipes," she explains.

A key factor that allows Finns to devour data on the go is that fast connections are affordable.

Tefficient's comparison found that in the Netherlands, where operators charged the most for a gigabyte of mobile data, it cost 14 times more than in Finland, where it was the cheapest of all 32 countries compared.

"The Finnish market differs significantly from other countries in the sense that we have lots of unlimited data plans," explains Kalle Muhonen, manager at Finnish operator Sonera.

The Finnish Communications Regulatory Authority's statistics confirm that.

More than half of all phone and tablet connections in Finland come with an unlimited data plan for a fixed monthly price, meaning consumers can browse on their phones as much as they like without having to fear a monster invoice at the end of the month.

One happy customer of an unlimited data plan is 13-year-old Inam Alam, who shows off a new game he has just downloaded on his smartphone.

He sometimes receives hundreds of messages on social media in a single day from his classmates, but he doesn't think that's unusual. He says it's normal.

"Nowadays we use our phones even for our assignments at school, like at language classes when we learn new words and then practice them with online games," he says.

source: news.abs-cbn.com

Yahoo rakes in profits as it prepares for Verizon deal

SAN FRANCISCO - Yahoo's quarterly profits shot up by more than double to $163 million even as it prepares for a takeover by Verizon.

"We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users' lives," the company's chief executive Marissa Mayer said in the earnings release, which beat expectations despite only a slight rise in revenue.

Yahoo skipped its usual quarterly earnings call with analysts due to the pending takeover by the US telecommunication company, for which Mayer said Yahoo is busy preparing despite recent revelations about a major data breach that may affect the deal.

Shares were up 1.3 percent to $42.22 in after-market trades following the earnings report release, reflecting confidence the breach is not prompting a significant number of users to abandon Yahoo.

Revenue for the quarter that ended on Sept. 30 came to $1.3 billion, up from the $1.2 billion in the same period a year earlier.

Mobile revenue during the quarter reached $396 million, up from $271 million the previous year.

"We launched several new products and showed solid financial performance across the board," Mayer said.

The internet pioneer agreed in July to sell its core assets to Verizon for $4.8 billion, ending a 20-year run as an independent company.

The deal would separate the Yahoo internet assets from its more valuable stake in the Chinese online giant Alibaba.

However, Verizon said last week that a recently revealed hack affecting 500 million Yahoo customers worldwide could have a "material" effect on the $4.8 billion deal.

The comments from Verizon general counsel Craig Silliman suggest the telecom company could seek to reduce the purchase price or walk away from the deal.

Although the hack took place in late 2014, Yahoo announced it only last month, dealing the faded internet star a fresh blow.

The attack was probably "state sponsored," the company said, although some analysts have questioned the source.

"We're working hard to retain their trust," Mayer said of Yahoo's users, "and are heartened by their continued loyalty as seen in our user engagement trends."

The beleaguered company has made several attempts to refocus after falling behind Google and Facebook in key segments of online advertising.

source: www.abs-cbnnews.com

Google piecing together a modular phone

SAN FRANCISCO, United States - Google on Friday showed off a modular Android-powered smartphone it said is on track to hit the market next year.

Word that Project Ara was moving ahead, and not shelved as some had speculated during the past year, came on the final day of Google's annual developers conference in the Silicon Valley city of Mountain View.

Developers interested in creating applications for the devices will get access to early versions of Ara, which provides a frame in which modules such as cameras, speakers, and sensors can be re-arranged by users like game pieces so as to customize handsets.

Google said that a consumer version of Ara should be available next year.

When the first Ara prototype was unveiled early last year at World Mobile Congress in Barcelona, Google expressed hope the approach would provide easier access to smartphones for people in developing countries.

The principle is simple: basic structures are designed to hold screen modules, batteries, cameras, sensors, 3G, Wi-fi or other components snapped into place with the help of magnets.

If a mobile phone breaks or an updated model is released, instead of buying a new handset a user could simply swap out components.

Pricing of Ara had yet to be revealed, but Google last year referred to an entry-level model with a production cost of $50. Plans to launch Ara in Puerto Rico last year were scrubbed.

source: www.abs-cbnnews.com