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India’s Reliance Jio inks deal with Microsoft to expand Office 365, Azure to more businesses; unveils broadband, blockchain and IoT platforms

Posted by | Apps, artificial intelligence, Asia, blockchain, broadband, Cloud, eCommerce, Enterprise, Entertainment, high speed internet, india, Microsoft, Mobile, Mumbai, Office 365, online stores, reliance, reliance jio, Satya Nadella, Social | No Comments

India’s Reliance Jio, which has disrupted the local telecom and features phone markets in less than three years of existence, is ready to foray into many more businesses.

In a series of announcements Monday, which included a long-term partnership with global giant Microsoft, Reliance Jio said it will commercially roll out its broadband service next month; an IoT platform with ambitions to power more than a billion devices on January 1 next year; and “one of the world’s biggest blockchain networks” in the next 12 months — all while also scaling its retail and commerce businesses.

The broadband service, called Jio Fiber, is aimed at individual customers, small and medium-sized businesses as well as enterprises, Mukesh Ambani, chairman and managing director of Reliance Industries and Asia’s richest man, said at a shareholders’ meeting today.

The service, which is being initially targeted at 20 million homes and 15 million businesses in 1,600 towns, will start rolling out commercially starting September 5. Ambani said more than half a million customers have already been testing the broadband service, which was first unveiled last year.

The broadband service will come bundled with access to hundreds of TV channels and free calls across India and at discounted rates to the U.S. and Canada, Ambani said. The service, the cheapest tier of which will offer internet speeds of 100Mbps, will be priced at Rs 700 (~$10) a month. The company said it will offer various plans to meet a variety of needs, including those of customers who want access to gigabit internet speeds.

Continuing its tradition to woo users with significant “free stuff,” Jio, which is a subsidiary of India’s largest industrial house (Reliance Industries) said customers who opt for the yearly plan of its fiber broadband will be provided with the set-top box and an HD or 4K TV at no extra charge. Specific details weren’t immediately available. A premium tier, which will be available starting next year, will allow customers to watch many movies on the day of their public release.

The broadband service will bundle games from many popular studios, including Microsoft Game Studios, Riot Games, Tencent Games and Gameloft, Jio said.

Partnership with Microsoft

The company also announced a 10-year partnership with Microsoft to launch new cloud data centers in India to ensure “more of Jio’s customers can access the tools and platforms they need to build their own digital capability,” said Microsoft CEO Satya Nadella in a video appearance Monday.

ambani nadella

Microsoft CEO Satya Nadella talks about the company’s partnership with Reliance Jio

“At Microsoft, our mission is to empower every person and every organization on the planet to achieve more. Core to this mission is deep partnerships, like the one we are announcing today with Reliance Jio. Our ambition is to help millions of organizations across India thrive and grow in the era of rapid technological change.”

“Together, we will offer a comprehensive technology solution, from compute to storage, to connectivity and productivity for small and medium-sized businesses everywhere in the country,” he added.

As part of the partnership, Nadella said, Jio and Microsoft will jointly offer Azure, Microsoft 365 and Microsoft AI platforms to more organizations in India, and also bring Azure Cognitive Services to more devices and in 13 Indian languages to businesses in the country. The solutions will be “accessible” to reach as many people and organizations in India as possible, he added. The cloud services will be offered to businesses for as little as Rs 1,500 ($21) per month.

The first two data centers will be set up in Gujarat and Maharashtra by next year. Jio will migrate all of its non-networking apps to the Microsoft Azure platform and promote its adoption among its ecosystem of startups, the two said in a joint statement.

The foray into broadband business and push to court small enterprises come as Reliance Industries, which dominates the telecom and retail spaces in India, attempts to diversify from its marquee oil and gas business. Reliance Jio, the nation’s top telecom operator, has amassed more than 340 million subscribers in less than three years of its commercial operations.

At the meeting, Ambani also unveiled that Saudi Arabia’s state-owned oil producer Aramco was buying a 20% stake in $75 billion worth Reliance Industries’ oil-to-chemicals business.

Like other Silicon Valley companies, Microsoft sees massive potential in India, where tens of millions of users and businesses have come online for the first time in recent years. Cloud services in India are estimated to generate a revenue of $2.4 billion this year, up about 25% from last year, according to research firm Gartner. Microsoft has won several major clients in India in recent years, including insurance giant ICICI Lombard.

Today’s partnership could significantly boost Microsoft’s footprint in India, posing a bigger headache for Amazon and Google.

Ambani also said Reliance Retail, the nation’s largest retailer, is working on a “digital stack” to create a new commerce partnership platform in India to reach tens of millions of merchants, consumers and producers. Ambani said Reliance Industries plans to list both Reliance Retail and Jio publicly in the next years.

“We have received strong interests from strategic and financial investors in our consumer businesses — Jio and Reliance Retail. We will induct leading global partners in these businesses in the next few quarters and move towards listing of both these companies within the next five years,” he said.

The announcement comes weeks after Reliance Industries acquired for $42.3 million a majority stake in Fynd, a Mumbai-based startup that connects brick and mortar retailers with online stores and consumers. Reliance Industries has previously stated plans to launch a new e-commerce firm in the country.

Without revealing specific details, Ambani also said that Jio is building an IoT platform to control at least one billion of the two billion IoT devices in India by next year. He said he sees IoT as a $2.8 billion revenue opportunity for Jio. Similarly, the company also plans to expand its blockchain network across India, he said.

“Using blockchain, we can deliver unprecedented security, trust, automation and efficiency to almost any type of transaction. And using blockchain, we also have an opportunity to invent a brand-new model for data privacy where Indian data, especially customer data is owned and controlled through technology by the Indian people an d not by corporate, especially global corporations,” he added.

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UK to toughen telecoms security controls to shrink 5G risks

Posted by | 5g, broadband, Ciaran Martin, computer security, Conservative Party, Cyberwarfare, Europe, huawei, Internet of Things, jeremy wright, Mobile, mobile device, National Cyber Security Centre, national security council, ofcom, Security, supply chain, TC, telecommunications, telecoms infrastructure, UK government, United Kingdom, United States, us government, vodafone | No Comments

Amid ongoing concerns about security risks posed by the involvement of Chinese tech giant Huawei in 5G supply, the U.K. government has published a review of the telecoms supply chain, which concludes that policy and regulation in enforcing network security needs to be significantly strengthened to address concerns.

However, it continues to hold off on setting an official position on whether to allow or ban Huawei from supplying the country’s next-gen networks — as the U.S. has been pressurizing its allies to do.

Giving a statement in parliament this afternoon, the U.K.’s digital minister, Jeremy Wright, said the government is releasing the conclusions of the report ahead of a decision on Huawei so that domestic carriers can prepare for the tougher standards it plans to bring in to apply to all their vendors.

“The Review has concluded that the current level of protections put in place by industry are unlikely to be adequate to address the identified security risks and deliver the desired security outcomes,” he said. “So, to improve cyber security risk management, policy and enforcement, the Review recommends the establishment of a new security framework for the UK telecoms sector. This will be a much stronger, security based regime than at present.

“The foundation for the framework will be a new set of Telecoms Security Requirements for telecoms operators, overseen by Ofcom and government. These new requirements will be underpinned by a robust legislative framework.”

Wright said the government plans to legislate “at the earliest opportunity” — to provide the regulator with stronger powers to to enforcement the incoming Telecoms Security Requirements, and to establish “stronger national security backstop powers for government.”

The review suggests the government is considering introducing GDPR-level penalties for carriers that fail to meet the strict security standards it will also be bringing in.

First policy response will be ‘soft’, common cybersecurity standards. Then regulations, with strict standards and #GDPR like fines. New powers allowing to compel telecoms to do something. And work to increase diversity. pic.twitter.com/nBLWneFUDK

— Lukasz Olejnik (@lukOlejnik) July 22, 2019

“Until the new legislation is put in place, government and Ofcom will work with all telecoms operators to secure adherence to the new requirements on a voluntary basis,” Wright told parliament today. “Operators will be required to subject vendors to rigorous oversight through procurement and contract management. This will involve operators requiring all their vendors to adhere to the new Telecoms Security Requirements.

“They will also be required to work closely with vendors, supported by government, to ensure effective assurance testing for equipment, systems and software, and to support ongoing verification arrangements.”

The review also calls for competition and diversity within the supply chain — which Wright said will be needed “if we are to drive innovation and reduce the risk of dependency on individual suppliers.”

The government will therefore pursue “a targeted diversification strategy, supporting the growth of new players in the parts of the network that pose security and resilience risks,” he added.

“We will promote policies that support new entrants and the growth of smaller firms,” he also said, sounding a call for security startups to turn their attention to 5G.

Government would “seek to attract trusted and established firms to the UK market,” he added — dubbing a “vibrant and diverse telecoms market” as both good for consumers and for national security.

“The Review I commissioned was not designed to deal only with one specific company and its conclusions have much wider application. And the need for them is urgent. The first 5G consumer services are launching this year,” he said. “The equally vital diversification of the supply chain will take time. We should get on with it.”

Last week two U.K. parliamentary committees espoused a view that there’s no technical reason to ban Huawei from all 5G supply — while recognizing there may be other considerations, such as geopolitics and human rights, which impact the decision.

The Intelligence and Security Committee also warned that what it dubbed the “unnecessarily protracted” delay in the government taking a decision about 5G suppliers is damaging U.K. relations abroad.

Despite being urged to get a move on the specific issue of Huawei, it’s notable that the government continues to hold off. Albeit, a new prime minister will be appointed later this week, after votes of Conservative Party members are counted — which may be contributing to ongoing delay.

“Since the US government’s announcement [on May 16, adding Huawei and 68 affiliates to its Entity List on national security grounds] we have sought clarity on the extent and implications but the position is not yet entirely clear. Until it is, we have concluded it would be wrong to make specific decisions in relation to Huawei,” Wright said, adding: “We will do so as soon as possible.”

In a press release accompanying the telecoms supply chain review the government said decisions would be taken about high risk vendors “in due course.”

Earlier this year a leak from a meeting of the U.K.’s National Security Council suggested the government was preparing to give an amber light to Huawei to continue supplying 5G — though limiting its participation to non-core portions of networks.

The Science & Technology Committee also recommended the government mandate the exclusion of Huawei from the core of 5G networks.

Wright’s statement appears to hint that that position remains the preferred one — barring a radical change of policy under a new PM — with, in addition to talk of encouraging diversity in the supply chain, the minister also flagging the review’s conclusion that there should be “additional controls on the presence in the supply chain of certain types of vendor which pose significantly greater security and resilience risks to UK telecoms.”

“Additional controls” doesn’t sound like a euphemism for an out-and-out ban.

In a statement responding to the review, Huawei expressed confidence that it’s days of supplying U.K. 5G are not drawing to a close — writing:

The UK Government’s Supply Chain Review gives us confidence that we can continue to work with network operators to rollout 5G across the UK. The findings are an important step forward for 5G and full fibre broadband networks in the UK and we welcome the Government’s commitment to “a diverse telecoms supply chain” and “new legislation to enforce stronger security requirements in the telecoms sector”. After 18 years of operating in the UK, we remain committed to supporting BT, EE, Vodafone and other partners build secure, reliable networks.”

The evidence shows excluding Huawei would cost the UK economy £7 billion and result in more expensive 5G networks, raising prices for anyone with a mobile device. On Friday, Parliament’s Intelligence & Security Committee said limiting the market to just two telecoms suppliers would reduce competition, resulting in less resilience and lower security standards. They also confirmed that Huawei’s inclusion in British networks would not affect the channels used for intelligence sharing.

A spokesman for the company told us it already supplies non-core elements of U.K. carriers’ EE and Vodafone’s network, adding that it’s viewing Wright’s statement as an endorsement of that status quo.

While the official position remains to be confirmed, all the signals suggest the U.K.’s 5G security strategy will be tied to tightened regulation and oversight, rather than follow a U.S. path of seeking to shut out Chinese tech giants.

Commenting on the government’s telecoms supply chain review in a statement, Ciaran Martin, CEO of the U.K.’s National Cyber Security Centre, said: “As the UK’s lead technical authority, we have worked closely with DCMS [the Department for Digital, Culture, Media and Sport] on this review, providing comprehensive analysis and cyber security advice. These new measures represent a tougher security regime for our telecoms infrastructure, and will lead to higher standards, much greater resilience and incentives for the sector to take cyber security seriously.

“This is a significant overhaul of how we do telecoms security, helping to keep the UK the safest place to live and work online by ensuring that cyber security is embedded into future networks from inception.”

Although, tougher security standards for telecoms combined with updated regulations that bake in major fines for failure suggest Huawei will have its work cut out not to be excluded by the market, as carriers will be careful about vendors as they work to shrink their risk.

Earlier this year a report by an oversight body that evaluates its approach to security was withering — finding “serious and systematic defects” in its software engineering and cybersecurity competence.

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UK’s first 5G network taster goes live in six cities tomorrow

Posted by | 4G, 5g, 5g network, Bristol, broadband, BT, Edinburgh, EE, Europe, Internet of Things, Liverpool, London, manchester, Mobile, newcastle, United Kingdom | No Comments

The UK’s first 5G consumer mobile network is launching tomorrow in six cities.

Mobile network operator EE will switch on the next-gen cellular connectivity in select locations in London, Cardiff, Edinburgh, Belfast, Birmingham and Manchester — promising “increased speeds, reliability and connectivity”. Though of course consumers will also need to have a 5G handset and 5G price plan, as well as being in the right location, to see any of the touted benefits.

EE says it expects customers to experience an increase in speeds of around 100-150Mbps when using the 5G network — “even in the busiest areas” where network coverage extends.

“Some customers will break the one gigabit-per-second milestone on their 5G smartphones,” it adds.

Ten other UK cities are set to get a taste of EE’s 5G later by the end of this year, also in select, busier parts — namely Glasgow, Newcastle, Liverpool, Leeds, Hull, Sheffield, Nottingham, Leicester, Coventry and Bristol — with more cities planned to come on stream in 2020.

While rival mobile operator Vodafone has said it will began its own rollout of a 5G network in July.

Among the advantages for 5G that EE is pushing on its website to try to persuade users to upgrade are better connections in busy places (such as festivals or stadiums); faster download speeds to support movie downloads and higher quality video streaming; and a gamer-friendly lack of lag — which it bills as “almost instant Internet connection”.

Whether those additions will convince masses of mobile users to shell out for an EE 5G device plan — which start at £53 per month — remains to be seen.

Earlier this month the network operator, which is owned by BT, launched its first 5G Sim-only handset plans, and began ranging 5G handsets — from the likes of Samsung, LG, OnePlus and Oppo.

Though not from Huawei. Last week it told the BBC it would pause on offering any 5G smartphones made by Chinese device maker Huawei — saying it wanted to “make sure we can carry out the right level of testing and quality assurance” for its customers.

Huawei remains subject to a US executive order intended to dissuade US companies from doing business with it on national security grounds. And Google has been reported to have taken a decision to withdrawn some Android-related services from Huawei — raising question-marks about the future quality of its smartphones. (The Chinese company’s involvement in building out core UK 5G networks is also subject to restriction, with the government reportedly intending to impose limits.)

EE says the 5G network it’s launching tomorrow is an additional layer on top of its existing 4G network — dubbing it “phase 1”. So this switch on is really a toe in the water. Or, well, a marketing opportunity to claim a 5G first.

It describes it as a “non-standalone” deployment, saying it’s combining 4G and 5G to “give customers the fastest, most reliable mobile broadband experience they’ve ever had” — saying it’s planning to upgrade more than 100 cell sites to 5G per month, as it builds out 5G coverage.

It will also expand its 4G coverage into rural areas and add more capacity to 4G sites — as 4G will remain the fall-back option for years to come (if not indefinitely).

Phase 2 of EE’s 5G rollout, from 2022, will introduce the “full next generation 5G core network, enhanced device chipset capabilities, and increased availability of 5G-ready spectrum”.

“Higher bandwidth and lower latency, coupled with expansive and growing 5G coverage, will enable a more responsive network, enabling truly immersive mobile augmented reality, real-time health monitoring, and mobile cloud gaming,” EE adds.

A third phase of the 5G rollout, from 2023, is slated to bring Ultra-Reliable Low Latency Communications, Network Slicing and multi-gigabit-per-second speeds.

“This phase of 5G will enable critical applications like real-time traffic management of fleets of autonomous vehicles, massive sensor networks with millions of devices measuring air quality across the entire country, and the ‘tactile internet’, where a sense of touch can be added to remote real-time interactions,” EE suggests.

As we’ve said before, there’s little call for consumers to rush to upgrade to a 5G handset, with network coverage the exception not the rule, even as building out the touted benefits of so-called ‘intelligent connectivity’ will be a work of years.

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5G phones are here but there’s no rush to upgrade

Posted by | 5g, Android, Apple, Asia, barcelona, broadband, Caching, China, deutsche telekom, donovan sung, Europe, european commission, european union, huawei, Intel, Internet of Things, iPhone, LG, Mobile, mwc 2019, Qualcomm, Samsung, singtel, smartphone, smartphones, south korea, TC, telecommunications, Xiaomi | No Comments

This year’s Mobile World Congress — the CES for Android device makers — was awash with 5G handsets.

The world’s No.1 smartphone seller by marketshare, Samsung, got out ahead with a standalone launch event in San Francisco, showing off two 5G devices, just before fast-following Android rivals popped out their own 5G phones at launch events across Barcelona this week.

We’ve rounded up all these 5G handset launches here. Prices range from an eye-popping $2,600 for Huawei’s foldable phabet-to-tablet Mate X — and an equally eye-watering $1,980 for Samsung’s Galaxy Fold; another 5G handset that bends — to a rather more reasonable $680 for Xiaomi’s Mi Mix 3 5G, albeit the device is otherwise mid-tier. Other prices for 5G phones announced this week remain tbc.

Android OEMs are clearly hoping the hype around next-gen mobile networks can work a little marketing magic and kick-start stalled smartphone growth. Especially with reports suggesting Apple won’t launch a 5G iPhone until at least next year. So 5G is a space Android OEMs alone get to own for a while.

Chipmaker Qualcomm, which is embroiled in a bitter patent battle with Apple, was also on stage in Barcelona to support Xiaomi’s 5G phone launch — loudly claiming the next-gen tech is coming fast and will enhance “everything”.

“We like to work with companies like Xiaomi to take risks,” lavished Qualcomm’s president Cristiano Amon upon his hosts, using 5G uptake to jibe at Apple by implication. “When we look at the opportunity ahead of us for 5G we see an opportunity to create winners.”

Despite the heavy hype, Xiaomi’s on stage demo — which it claimed was the first live 5G video call outside China — seemed oddly staged and was not exactly lacking in latency.

“Real 5G — not fake 5G!” finished Donovan Sung, the Chinese OEM’s director of product management. As a 5G sales pitch it was all very underwhelming. Much more ‘so what’ than ‘must have’.

Whether 5G marketing hype alone will convince consumers it’s past time to upgrade seems highly unlikely.

Phones sell on features rather than connectivity per se, and — whatever Qualcomm claims — 5G is being soft-launched into the market by cash-constrained carriers whose boom times lie behind them, i.e. before over-the-top players had gobbled their messaging revenues and monopolized consumer eyeballs.

All of which makes 5G an incremental consumer upgrade proposition in the near to medium term.

Use-cases for the next-gen network tech, which is touted as able to support speeds up to 100x faster than LTE and deliver latency of just a few milliseconds (as well as connecting many more devices per cell site), are also still being formulated, let alone apps and services created to leverage 5G.

But selling a network upgrade to consumers by claiming the killer apps are going to be amazing but you just can’t show them any yet is as tough as trying to make theatre out of a marginally less janky video call.

“5G could potentially help [spark smartphone growth] in a couple of years as price points lower, and availability expands, but even that might not see growth rates similar to the transition to 3G and 4G,” suggests Carolina Milanesi, principal analyst at Creative Strategies, writing in a blog post discussing Samsung’s strategy with its latest device launches.

“This is not because 5G is not important, but because it is incremental when it comes to phones and it will be other devices that will deliver on experiences, we did not even think were possible. Consumers might end up, therefore, sharing their budget more than they did during the rise of smartphones.”

The ‘problem’ for 5G — if we can call it that — is that 4G/LTE networks are capably delivering all the stuff consumers love right now: Games, apps and video. Which means that for the vast majority of consumers there’s simply no reason to rush to shell out for a ‘5G-ready’ handset. Not if 5G is all the innovation it’s got going for it.

LG V50 ThinQ 5G with a dual screen accessory for gaming

Use cases such as better AR/VR are also a tough sell given how weak consumer demand has generally been on those fronts (with the odd branded exception).

The barebones reality is that commercial 5G networks are as rare as hen’s teeth right now, outside a few limited geographical locations in the U.S. and Asia. And 5G will remain a very patchy patchwork for the foreseeable future.

Indeed, it may take a very long time indeed to achieve nationwide coverage in many countries, if 5G even ends up stretching right to all those edges. (Alternative technologies do also exist which could help fill in gaps where the ROI just isn’t there for 5G.)

So again consumers buying phones with the puffed up idea of being able to tap into 5G right here, right now (Qualcomm claimed 2019 is going to be “the year of 5G!”) will find themselves limited to just a handful of urban locations around the world.

Analysts are clear that 5G rollouts, while coming, are going to be measured and targeted as carriers approach what’s touted as a multi-industry-transforming wireless technology cautiously, with an eye on their capex and while simultaneously trying to figure out how best to restructure their businesses to engage with all the partners they’ll need to forge business relations with, across industries, in order to successfully sell 5G’s transformative potential to all sorts of enterprises — and lock onto “the sweep spot where 5G makes sense”.

Enterprise rollouts therefore look likely to be prioritized over consumer 5G — as was the case for 5G launches in South Korea at the back end of last year.

“4G was a lot more driven by the consumer side and there was an understanding that you were going for national coverage that was never really a question and you were delivering on the data promise that 3G never really delivered… so there was a gap of technology that needed to be filled. With 5G it’s much less clear,” says Gartner’s Sylvain Fabre, discussing the tech’s hype and the reality with TechCrunch ahead of MWC.

“4G’s very good, you have multiple networks that are Gbps or more and that’s continuing to increase on the downlink with multiple carrier aggregation… and other densification schemes. So 5G doesn’t… have as gap as big to fill. It’s great but again it’s applicability of where it’s uniquely positioned is kind of like a very narrow niche at the moment.”

“It’s such a step change that the real power of 5G is actually in creating new business models using network slicing — allocation of particular aspects of the network to a particular use-case,” Forrester analyst Dan Bieler also tells us. “All of this requires some rethinking of what connectivity means for an enterprise customer or for the consumer.

“And telco sales people, the telco go-to-market approach is not based on selling use-cases, mostly — it’s selling technologies. So this is a significant shift for the average telco distribution channel to go through. And I would believe this will hold back a lot of the 5G ambitions for the medium term.”

To be clear, carriers are now actively kicking the tyres of 5G, after years of lead-in hype, and grappling with technical challenges around how best to upgrade their existing networks to add in and build out 5G.

Many are running pilots and testing what works and what doesn’t, such as where to place antennas to get the most reliable signal and so on. And a few have put a toe in the water with commercial launches (globally there are 23 networks with “some form of live 5G in their commercial networks” at this point, according to Fabre.)

But at the same time 5G network standards are yet to be fully finalized so the core technology is not 100% fully baked. And with it being early days “there’s still a long way to go before we have a real significant impact of 5G type of services”, as Bieler puts it. 

There’s also spectrum availability to factor in and the cost of acquiring the necessary spectrum. As well as the time required to clear and prepare it for commercial use. (On spectrum, government policy is critical to making things happen quickly (or not). So that’s yet another factor moderating how quickly 5G networks can be built out.)

And despite some wishful thinking industry noises at MWC this week — calling for governments to ‘support digitization at scale’ by handing out spectrum for free (uhhhh, yeah right) — that’s really just whistling into the wind.

Rolling out 5G networks is undoubtedly going to be very expensive, at a time when carriers’ businesses are already faced with rising costs (from increasing data consumption) and subdued revenue growth forecasts.

“The world now works on data” and telcos are “at core of this change”, as one carrier CEO — Singtel’s Chua Sock Koong — put it in an MWC keynote in which she delved into the opportunities and challenges for operators “as we go from traditional connectivity to a new age of intelligent connectivity”.

Chua argued it will be difficult for carriers to compete “on the basis of connectivity alone” — suggesting operators will have to pivot their businesses to build out standalone business offerings selling all sorts of b2b services to support the digital transformations of other industries as part of the 5G promise — and that’s clearly going to suck up a lot of their time and mind for the foreseeable future.

In Europe alone estimates for the cost of rolling out 5G range between €300BN and €500BN (~$340BN-$570BN), according to Bieler. Figures that underline why 5G is going to grow slowly, and networks be built out thoughtfully; in the b2b space this means essentially on a case-by-case basis.

Simply put carriers must make the economics stack up. Which means no “huge enormous gambles with 5G”. And omnipresent ROI pressure pushing them to try to eke out a premium.

“A lot of the network equipment vendors have turned down the hype quite a bit,” Bieler continues. “If you compare this to the hype around 3G many years ago or 4G a couple of years ago 5G definitely comes across as a soft launch. Sort of an evolutionary type of technology. I have not come across a network equipment vendors these days who will say there will be a complete change in everything by 2020.”

On the consumer pricing front, carriers have also only just started to grapple with 5G business models. One early example is TC parent Verizon’s 5G home service — which positions the next-gen wireless tech as an alternative to fixed line broadband with discounts if you opt for a wireless smartphone data plan as well as 5G broadband.

From the consumer point of view, the carrier 5G business model conundrum boils down to: What is my carrier going to charge me for 5G? And early adopters of any technology tend to get stung on that front.

Although, in mobile, price premiums rarely stick around for long as carriers inexorably find they must ditch premiums to unlock scale — via consumer-friendly ‘all you can eat’ price plans.

Still, in the short term, carriers look likely to experiment with 5G pricing and bundles — basically seeing what they can make early adopters pay. But it’s still far from clear that people will pay a premium for better connectivity alone. And that again necessitates caution. 

5G bundled with exclusive content might be one way carriers try to extract a premium from consumers. But without huge and/or compelling branded content inventory that risks being a too niche proposition too. And the more carriers split their 5G offers the more consumers might feel they don’t need to bother, and end up sticking with 4G for longer.

It’ll also clearly take time for a 5G ‘killer app’ to emerge in the consumer space. And such an app would likely need to still be able to fallback on 4G, again to ensure scale. So the 5G experience will really need to be compellingly different in order for the tech to sell itself.

On the handset side, 5G chipset hardware is also still in its first wave. At MWC this week Qualcomm announced a next-gen 5G modem, stepping up from last year’s Snapdragon 855 chipset — which it heavily touted as architected for 5G (though it doesn’t natively support 5G).

If you’re intending to buy and hold on to a 5G handset for a few years there’s thus a risk of early adopter burn at the chipset level — i.e. if you end up with a device with a suckier battery life vs later iterations of 5G hardware where more performance kinks have been ironed out.

Intel has warned its 5G modems won’t be in phones until next year — so, again, that suggests no 5G iPhones before 2020. And Apple is of course a great bellwether for mainstream consumer tech; the company only jumps in when it believes a technology is ready for prime time, rarely sooner. And if Cupertino feels 5G can wait, that’s going to be equally true for most consumers.

Zooming out, the specter of network security (and potential regulation) now looms very large indeed where 5G is concerned, thanks to East-West trade tensions injecting a strange new world of geopolitical uncertainty into an industry that’s never really had to grapple with this kind of business risk before.

Chinese kit maker Huawei’s rotating chairman, Guo Ping, used the opportunity of an MWC keynote to defend the company and its 5G solutions against U.S. claims its network tech could be repurposed by the Chinese state as a high tech conduit to spy on the West — literally telling delegates: “We don’t do bad things” and appealing to them to plainly to: “Please choose Huawei!”

Huawei rotating resident, Guo Ping, defends the security of its network kit on stage at MWC 2019

When established technology vendors are having to use a high profile industry conference to plead for trust it’s strange and uncertain times indeed.

In Europe it’s possible carriers’ 5G network kit choices could soon be regulated as a result of security concerns attached to Chinese suppliers. The European Commission suggested as much this week, saying in another MWC keynote that it’s preparing to step in try to prevent security concerns at the EU Member State level from fragmenting 5G rollouts across the bloc.

In an on stage Q&A Orange’s chairman and CEO, Stéphane Richard, couched the risk of destabilization of the 5G global supply chain as a “big concern”, adding: “It’s the first time we have such an important risk in our industry.”

Geopolitical security is thus another issue carriers are having to factor in as they make decisions about how quickly to make the leap to 5G. And holding off on upgrades, while regulators and other standards bodies try to figure out a trusted way forward, might seem the more sensible thing to do — potentially stalling 5G upgrades in the meanwhile.

Given all the uncertainties there’s certainly no reason for consumers to rush in.

Smartphone upgrade cycles have slowed globally for a reason. Mobile hardware is mature because it’s serving consumers very well. Handsets are both powerful and capable enough to last for years.

And while there’s no doubt 5G will change things radically in future, including for consumers — enabling many more devices to be connected and feeding back data, with the potential to deliver on the (much hyped but also still pretty nascent) ‘smart home’ concept — the early 5G sales pitch for consumers essentially boils down to more of the same.

“Over the next ten years 4G will phase out. The question is how fast that happens in the meantime and again I think that will happen slower than in early times because [with 5G] you don’t come into a vacuum, you don’t fill a big gap,” suggests Gartner’s Fabre. “4G’s great, it’s getting better, wi’fi’s getting better… The story of let’s build a big national network to do 5G at scale [for all] that’s just not happening.”

“I think we’ll start very, very simple,” he adds of the 5G consumer proposition. “Things like caching data or simply doing more broadband faster. So more of the same.

“It’ll be great though. But you’ll still be watching Netflix and maybe there’ll be a couple of apps that come up… Maybe some more interactive collaboration or what have you. But we know these things are being used today by enterprises and consumers and they’ll continue to be used.”

So — in sum — the 5G mantra for the sensible consumer is really ‘wait and see’.

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Europe is prepared to rule over 5G cybersecurity

Posted by | 5g, artificial intelligence, Australia, barcelona, broadband, China, computer security, EC, Emerging-Technologies, Europe, european commission, european union, Germany, huawei, Internet of Things, Mariya Gabriel, Mobile, mwc 2019, network technology, New Zealand, Security, telecommunications, trump, UK government, United Kingdom, United States, zte | No Comments

The European Commission’s digital commissioner has warned the mobile industry to expect it to act over security concerns attached to Chinese network equipment makers.

The Commission is considering a defacto ban on kit made by Chinese companies including Huawei in the face of security and espionage concerns, per Reuters.

Appearing on stage at the Mobile World Congress tradeshow in Barcelona today, Mariya Gabriel, European commissioner for digital economy and society, flagged network “cybersecurity” during her scheduled keynote, warning delegates it’s stating the obvious for her to say that “when 5G services become mission critical 5G networks need to be secure”.

Geopolitical concerns between the West and China are being accelerated and pushed to the fore as the era of 5G network upgrades approach, as well as by ongoing tensions between the U.S. and China over trade.

“I’m well away of the unrest among all of you key actors in the telecoms sectors caused by the ongoing discussions around the cybersecurity of 5G,” Gabriel continued, fleshing out the Commission’s current thinking. “Let me reassure you: The Commission takes your view very seriously. Because you need to run these systems everyday. Nobody is helped by premature decisions based on partial analysis of the facts.

“However it is also clear that Europe has to have a common approach to this challenge. And we need to bring it on the table soon. Otherwise there is a risk that fragmentation rises because of diverging decisions taken by Member States trying to protect themselves.”

“We all know that this fragmentation damages the digital single market. So therefore we are working on this important matter with priority. And to the Commission we will take steps soon,” she added.

The theme of this year’s show is “intelligent connectivity”; the notion that the incoming 5G networks will not only create links between people and (many, many more) things but understand the connections they’re making at a greater depth and resolution than has been possible before, leveraging the big data generated by many more connections to power automated decision-making in near real time, with low latency another touted 5G benefit (as well as many more connections per cell).

Futuristic scenarios being floated include connected cars neatly pulling to the sides of the road ahead of an ambulance rushing a patient to hospital — or indeed medical operations being aided and even directed remotely in real-time via 5G networks supporting high resolution real-time video streaming.

But for every touted benefit there are easy to envisage risks to network technology that’s being designed to connect everything all of the time — thereby creating a new and more powerful layer of critical infrastructure society will be relying upon.

Last fall the Australia government issued new security guidelines for 5G networks that essential block Chinese companies such as Huawei and ZTE from providing equipment to operators — justifying the move by saying that differences in the way 5G operates compared to previous network generations introduces new risks to national security.

New Zealand followed suit shortly after, saying kit from the Chinese companies posed a significant risk to national security.

While in the U.S. President Trump has made 5G network security a national security priority since 2017, and a bill was passed last fall banning Chinese companies from supplying certain components and services to government agencies.

The ban is due to take effect over two years but lawmakers have been pressuring to local carriers to drop 5G collaborations with companies such as Huawei.

In Europe the picture is so far more mixed. A UK government report last summer investigating Huawei’s broadband and mobile infrastructure raised further doubts, and last month Germany was reported to be mulling a 5G ban on the Chinese kit maker.

But more recently the two EU Member States have been reported to no longer be leaning towards a total ban — apparently believing any risk can be managed and mitigated by oversight and/or partial restrictions.

It remains to be seen how the Commission could step in to try to harmonize security actions taken by Member States around nascent 5G networks. But it appears prepared to set rules.

That said, Gabriel gave no hint of its thinking today, beyond repeating the Commission’s preferred position of less fragmentation, more harmonization to avoid collateral damage to its overarching Digital Single Market initiative — i.e. if Member States start fragmenting into a patchwork based on varying security concerns.

We’ve reached out to the Commission for further comment and will update this story with any additional context.

During the keynote she was careful to talk up the transformative potential of 5G connectivity while also saying innovation must work in lock-step with European “values”.

“Europe has to keep pace with other regions and early movers while making sure that its citizens and businesses benefit swiftly from the new infrastructures and the many applications that will be built on top of them,” she said.

“Digital is helping us and we need to reap its opportunities, mitigate its risks and make sure it is respectful of our values as much as driven by innovation. Innovation and values. Two key words. That is the vision we have delivered in terms of the defence for our citizens in Europe. Together we have decided to construct a Digital Single Market that reflects the values and principles upon which the European Union has been built.”

Her speech also focused on AI, with the commissioner highlighting various EC initiatives to invest in and support private sector investment in artificial intelligence — saying it’s targeting €20BN in “AI-directed investment” across the private and public sector by 2020, with the goal for the next decade being “to reach the same amount as an annual average” — and calling on the private sector to “contribute to ensure that Europe reaches the level of investment needed for it to become a world stage leader also in AI”.

But again she stressed the need for technology developments to be thoughtfully managed so they reflect the underlying society rather than negatively disrupting it. The goal should be what she dubbed “human-centric AI”.

“When we talk about AI and new technologies development for us Europeans it is not only about investing. It is mainly about shaping AI in a way that reflects our European values and principles. An ethical approach to AI is key to enable competitiveness — it will generate user trust and help facilitate its uptake,” she said.

“Trust is the key word. There is no other way. It is only by ensuring trustworthiness that Europe will position itself as a leader in cutting edge, secure and ethical AI. And that European citizens will enjoy AI’s benefits.”

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Schneider’s EVLink car charging stations were easily hackable, thanks to a hardcoded password

Posted by | automotive, broadband, charging stations, electric car, electric vehicles, energy, Gadgets, inductive charging, internet connectivity, New York, Security, transport | No Comments

Schneider has fixed three vulnerabilities in one of its popular electric car charging stations, which security researchers said could have easily allowed an attacker to remotely take over the unit.

At its worst, an attacker can force a plugged-in vehicle to stop charging, rendering it useless in a “denial-of-service state,” an attack favored by some threat actors as it’s an effective way of forcing something to stop working.

The bugs were fixed with a software update that rolled out on September 2, shortly after the bugs were first disclosed, and limited details of the bugs were revealed in a supporting document on December 20. A fuller picture of the vulnerabilities, found by New York-based security firm Positive Technologies, were released today — almost a month later.

Schneider’s EVLink charging stations come in all shapes and sizes — some for the garage wall and some at gas stations. It’s the charging stations at offices, hotels, shopping malls and parking garages that are vulnerable, said Positive.

At the center of Positive’s disclosure is Schneider’s EVLink Parking electric charging stations, one of several charging products that Schneider sells, and primarily marketed to apartment complexes, private parking area, offices and municipalities. These charging stations are, like others, designed for all-electric and plug-in hybrid electric vehicles — including Teslas, which have their own proprietary connector.

Because the EVLink Parking station can be connected to Schneider’s cloud with internet connectivity, either over a cell or a broadband connection, Positive said that the web-based user interface on the charging unit can be remotely accessed by anyone and easily send commands to the charging station — even while it’s in use.

“A hacker can stop the charging process, switch the device to the reservation mode, which would render it inaccessible to any customer until reservation mode is turned off, and even unlock the cable during the charging by manipulating the socket locking hatch, meaning attackers could walk away with the cable,” said Positive.

“For electric car drivers, this means not being able to use their vehicles since they cannot be charged,” it said. The company also said that it’s also possible to charge a car for free by exploiting these vulnerabilities.

Positive didn’t say what the since-removed password was. We asked for it — out of sheer curiosity more than anything — but the company isn’t releasing the password to prevent anyone exploiting the bug in unpatched systems.

The researchers, Vladimir Kononovich and Vyacheslav Moskvin, also found two other bugs that gives an attacker full access over a device — a code injection flaw and a SQL injection vulnerability. Both were fixed in the same software update.

When reached, a Schneider spokesperson did not immediately have comment. If that changes, we’ll update.

Additional reporting: Kirsten Korosec.

Updated at 12:15pm ET: with additional details, including about the unreleased password.

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Verizon’s new opt-in rewards program requires users to share personal data for ad-targeting

Posted by | ad targeting, Advertising Tech, AOL, artificial intelligence, broadband, digital advertising, Mobile, privacy, TC, TechCrunch, Verizon, Verizon Up, Yahoo | No Comments

 U.S. carrier Verizon has launched a new rewards program as it pushes for more lucrative ways to eke money out of a subscriber base that’s not growing as easily as it once was. Read More

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UK broadband giant BT agrees to legal separation from pipes-controller, Openreach

Posted by | broadband, BT, Europe, hardware, infrastructure, Mobile, ofcom, Openreach, TC, United Kingdom | No Comments

 Startups in the U.K. will be hoping for better performance from the local broadband market after telecoms regulator Ofcom agreed to a deal with the country’s largest broadband provider, BT, to legally separate Openreach: aka the division of BT that builds and maintains the broadband infrastructure. Read More

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Verizon buys Skyward, a drone operations company

Posted by | broadband, Gadgets, Internet, Skyward, Verizon, video on demand | No Comments

Treasury Wine Estates' staff operating drones at a vineyard. Forget about Yahoo for a minute. Verizon just announced it has acquired Skyward, a drone operations and management company based out of Portland, Oregon for an undisclosed amount. Verizon says Skyward will help developers and businesses better create and manage drones that also happen to utilize Verizon’s mobile network services and infrastructure.
Skyward had raised $8.15M since its… Read More

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Verizon Accused Of Net Neutrality Foul By Zero-Rating Its Go90 Mobile Video Service

Posted by | AOL, broadband, go90, LTE, Mobile, net neutrality, TC, Verizon, verizon wireless, video hosting, video on demand | No Comments

go90 Verizon, the parent of TechCrunch’s parent AOL, is being accused of violating net neutrality principles by excluding its own mobile video streaming service, go90, from data charges — thereby creating an unequal playing field. Read More

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