China

Sony to pull out of MWC over coronavirus outbreak

Posted by | Amazon, barcelona, China, coronavirus, Ericsson, Europe, gsma, LG, Mobile, mobile world congress, mwc, nvidia, Sony, spain, TC, telecommunications, wireless, world health organization, Xiaomi, zte | No Comments

Japanese electronics firm Sony is the latest phone maker to announce it’s withdrawing from the Mobile World Congress (MWC) tradeshow, citing concerns about the coronavirus outbreak.

“As we place the utmost importance on the safety and wellbeing of our customers, partners, media and employees, we have taken the difficult decision to withdraw from exhibiting and participating at MWC 2020 in Barcelona, Spain,” Sony wrote in a press release.

MWC is due to take place in Barcelona between February 24-27.

Sony said it will now run a press conference planned for the event via its official Xperia YouTube channel at the scheduled time of 8:30 AM (CET) on February 24.

“Sony would like to thank everyone for their understanding and ongoing support during these challenging times,” it added.

In recent days, a number of companies have announced they’re pulling out or scaling back their presence at the conference as a result of concerns about the spread of the virus, including Amazon, Ericsson, LG, NVIDIA and ZTE.

The World Health Organization dubbed the emergence and spread of the novel coronavirus a global emergency late last month.

At the time of writing, the majority of infections and deaths from the virus remain in China, where the virus was first identified in the town of Wuhan in the Hubei province.

Several Chinese tech companies, including ZTE and Xiaomi, have said they will make changes to their participation in MWC related to coronavirus concerns, such as placing limits on staff travelling from China or requiring they self isolate in the period before attending.

Yesterday the organizers of MWC, the GSMA, also announced stringent rules to try to safeguard attendees, including a ban on travellers from Hubei and a requirement that all travellers who have been in China must be able to prove they have been outside the country 14 days prior to the event.

Attendees will also be required to self-certify they have not been in contact with anyone affected, the GSMA said. Temperature screening will also be implemented at the event.

Last year the annual mobile tech conference drew almost 110,000 attendees from 198 countries.

“While further planning is underway, we will continue to monitor the situation and will adapt our plans according to developments and advice we receive. We are contending with a constantly evolving situation, that will require fast adaptability,” the GSMA also said.

Attendance at MWC has regularly broken 100,000 in recent years, but 2020’s conference seems likely to mark a break with business as usual as companies face pressure to rethink their travel priorities.

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US patents hit record 333,530 granted in 2019; IBM, Samsung (not the FAANGs) lead the pack

Posted by | 3 D, Amazon, Amazon Technologies Inc., Android, apple inc, AT&T, biotechnology, car, China, Companies, CRISPR, EMC, Germany, Government, Hewlett-Packard Enterprise, huawei, IBM, industries, Japan, lawsuit, Microsoft, mpeg la, Netflix, oracle, Panasonic, patents, printing, Qualcomm, quantum computing, Samsung, Samsung Electronics, south korea, technology trends, telecommunications, United States | No Comments

We may have moved on from a nearly-daily cycle of news involving tech giants sparring in courts over intellectual property infringement, but patents continue to be a major cornerstone of how companies and people measure their progress and create moats around the work that they have done in hopes of building that into profitable enterprises in the future. IFI Claims, a company that tracks patent activity in the US, released its annual tally of IP work today underscoring that theme: it noted that 2019 saw a new high-watermark of 333,530 patents granted by the US Patent and Trademark Office.

The figures are notable for a few reasons. One is that this is the most patents ever granted in a single year; and the second that this represents a 15% jump on a year before. The high overall number speaks to the enduring interest in safeguarding IP, while the 15% jump has to do with the fact that patent numbers actually dipped last year (down 3.5%) while the number that were filed and still in application form (not granted) was bigger than ever. If we can draw something from that, it might be that filers and the USPTO were both taking a little more time to file and process, not a reduction in the use of patents altogether.

But patents do not tell the whole story in another very important regard.

Namely, the world’s most valuable, and most high profile tech companies are not always the ones that rank the highest in patents filed.

Consider the so-called FAANG group, Facebook, Apple, Amazon, Netflix and Google: Facebook is at number-36 (one of the fastest movers but still not top 10) with 989 patents; Apple is at number-seven with 2,490 patents; Amazon is at number-nine with 2,427 patents; Netflix doesn’t make the top 50 at all; and the Android, search and advertising behemoth Google is merely at slot 15 with 2,102 patents (and no special mention for growth).

Indeed, the fact that one of the oldest tech companies, IBM, is also the biggest patent filer almost seems ironic in that regard.

As with previous years — the last 27, to be exact — IBM has continued to hold on to the top spot for patents granted, with 9,262 in total for the year. Samsung Electronics, at 6,469, is a distant second.

These numbers, again, don’t tell the whole story: IFI Claims notes that Samsung ranks number-one when you consider all active patent “families”, which might get filed across a number of divisions (for example a Samsung Electronics subsidiary filing separately) and count the overall number of patents to date (versus those filed this year). In this regard, Samsung stands at 76,638, with IBM the distant number-two at 37,304 patent families.

Part of this can be explained when you consider their businesses: Samsung makes a huge range of consumer and enterprise products. IBM, on the other hand, essentially moved out of the consumer electronics market years ago and these days mostly focuses on enterprise and B2B and far less hardware. That means a much smaller priority placed on that kind of R&D, and subsequent range of families.

Two other areas that are worth tracking are biggest movers and technology trends.

In the first of these, it’s very interesting to see a car company rising to the top. Kia jumped 58 places and is now at number-41 (921 patents) — notable when you think about how cars are the next “hardware” and that we are entering a pretty exciting phase of connected vehicles, self-driving and alternative energy to propel them.

Others rounding out fastest-growing were Hewlett Packard Enterprise, up 28 places to number-48 (794 patents); Facebook, up 22 places to number-36 (989 patents); Micron Technology, up nine places to number-25 (1,268), Huawei, up six places to number-10 (2,418), BOE Technology, up four places to number-13 (2,177), and Microsoft, up three places to number-4 (3,081 patents).

In terms of technology trends, IFI looks over a period of five years, where there is now a strong current of medical and biotechnology innovation running through the list right now, with hybrid plant creation topping the list of trending technology, followed by CRISPR gene-editing technology, and then medicinal preparations (led by cancer therapies). “Tech” in the computer processor sense only starts at number-four with dashboards and other car-related tech; with quantum computing, 3-D printing and flying vehicle tech all also featuring.

Indeed, if you have wondered if we are in a fallow period of innovation in mobile, internet and straight computer technology… look no further than this list to prove out that thought.

Unsurprisingly, US companies account for 49% of U.S. patents granted in 2019 up from 46 percent a year before. Japan accounts for 16% to be the second-largest, with South Korea at 7% (Samsung carrying a big part of that, I’m guessing), and China passing Germany to be at number-four with 5%.

  1. International Business Machines Corp 9262
  2. Samsung Electronics Co Ltd 6469
  3. Canon Inc 3548
  4. Microsoft Technology Licensing LLC 3081
  5. Intel Corp 3020
  6. LG Electronics Inc 2805
  7. Apple Inc 2490
  8. Ford Global Technologies LLC 2468
  9. Amazon Technologies Inc 2427
  10. Huawei Technologies Co Ltd 2418
  11. Qualcomm Inc 2348
  12. Taiwan Semiconductor Manufacturing Co TSMC Ltd 2331
  13. BOE Technology Group Co Ltd 2177
  14. Sony Corp 2142
  15. Google LLC 2102
  16. Toyota Motor Corp 2034
  17. Samsung Display Co Ltd 1946
  18. General Electric Co 1818
  19. Telefonaktiebolaget LM Ericsson AB 1607
  20. Hyundai Motor Co 1504
  21. Panasonic Intellectual Property Management Co Ltd 1387
  22. Boeing Co 1383
  23. Seiko Epson Corp 1345
  24. GM Global Technology Operations LLC 1285
  25. Micron Technology Inc 1268
  26. United Technologies Corp 1252
  27. Mitsubishi Electric Corp 1244
  28. Toshiba Corp 1170
  29. AT&T Intellectual Property I LP 1158
  30. Robert Bosch GmbH 1107
  31. Honda Motor Co Ltd 1080
  32. Denso Corp 1052
  33. Cisco Technology Inc 1050
  34. Halliburton Energy Services Inc 1020
  35. Fujitsu Ltd 1008
  36. Facebook Inc 989
  37. Ricoh Co Ltd 980
  38. Koninklijke Philips NV 973
  39. EMC IP Holding Co LLC 926
  40. NEC Corp 923
  41. Kia Motors Corp 921
  42. Texas Instruments Inc 894
  43. LG Display Co Ltd 865
  44. Oracle International Corp 847
  45. Murata Manufacturing Co Ltd 842
  46. Sharp Corp 819
  47. SK Hynix Inc 798
  48. Hewlett Packard Enterprise Development LP 794
  49. Fujifilm Corp 791
  50. LG Chem Ltd 791

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Huawei reportedly got by with a lot of help from the Chinese government

Posted by | China, hardware, huawei, Mobile | No Comments

For those following Huawei’s substantial rise over the past several years, it’ll come as no surprise that the Chinese government played an important role in fostering the hardware maker. Even so, the actual numbers behind the ascent are still a bit jaw-dropping. Huawei reportedly had “access to as much as $75 billion in state support,” according to a piece published by The Wall Street Journal on Christmas Day.

That massive figure is culled from poring over various forms, including grants and tax breaks. Huawei, for its part, isn’t denying any government support, but said in response that what it received was “small and non-material,” in line with the usual variety of grants awarded to tech startups and companies.

Per WSJ’s accounting of public records, Huawei got around $46 billion in loans and other support, coupled with $25 billion in tax cuts used to accelerate tech advances. There’s also a billion or two here and there for things like land discounts and grants. At the very least, it seems China had a vested interest in the rise of a hardware company that could go head to head with the likes of Apple and Samsung. Certainly it’s not unheard of that a government would foster some growth in the form of grants, but there’s a clear question of how much. 

The phone maker’s alleged close ties to its government have been a major sticking point in its swift international expansion. Such notions have raised flags in the United States, where the company has been barred from providing mobile hardware for government bodies. Many leaders have also raised concerns over use of Huawei telecom equipment, as the company looks to be a linchpin in a global 5G rollout.

Due to such perception and central role in U.S./China trade tensions, it’s no surprise the company was quick to deny any such ties. Huawei has, of course, been hampered by a U.S. trade ban that has barred the use of U.S.-originated hardware and software. A domestic push and patriotic ad campaign, however, have helped its sales figures in China, even as it has struggled to expand in other parts of the world.

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DJI patents an off-road rover with a stabilized camera on top

Posted by | China, dji, Gadgets, hardware | No Comments

DJI is easily the leading brand when it comes to camera drones, but few companies have even attempted a ground-based mobile camera platform. The company may be moving in that direction, though, if this patent for a small off-road vehicle with a stabilized camera is any indication.

The Chinese patent, first noted by DroneDJ, shows a rather serious-looking vehicle platform with chunky tires and a stabilized camera gimbal. As you can see in the image above, the camera mount is protected against shock by springs and pneumatics, which would no doubt react actively to sudden movements.

The image is no simple sketch like those you sometimes see of notional products and “just in case” patents — this looks like a fleshed-out mechanical drawing of a real device. Of course, that doesn’t mean it’s coming to market at all, let alone any time soon. But it does suggest that DJI’s engineers have dedicated real time and effort to making this thing a reality.

Why have a “drone” on the ground when there are perfectly good ones for the air? Battery life, for one. Drones can only be airborne for a short time, even less when they’re carrying decent cameras and lenses. A ground-based drone could operate for far longer — though naturally from a rather lower vantage.

Perhaps more importantly, however, a wheeled drone makes sense in places where an aerial one doesn’t. Do you really want to fly a drone through narrow hallways in security sweeps, or in your own home? And what about areas where you might encounter people? It would be better not to have to land and take off constantly for safety’s sake.

It’s likely that DJI has done its homework and knows that there are plenty of niches to which they could extend if they diversified their offerings a bit. And like so many situations where drones have become commonplace, we’ll all think of these robot-powered industries as obvious in retrospect. For instance, the winner of our Startup Battlefield at Disrupt Berlin, Scaled Robotics, which does painstaking automated inspections of construction sites.

In fact DJI already makes a ground-based robotic platform, the RoboMaster S1. This is more of an educational toy, but may have served as a test bed for technologies the company hopes to apply elsewhere.

Whether this little vehicle ever sees the light of day or not, it does make one think seriously about the possibility of a wheeled camera platform doing serious work around the home or office.

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Kid-focused STEM device startup Kano sees layoffs as it puts Disney e-device on ice

Posted by | Amazon, Barclays, China, Collaborative Fund, computing, Disney, Education, Europe, Gadgets, Google, hardware, harry potter, Intel, Kano, London, Marc Benioff, Microsoft, microsoft windows, TC, United States | No Comments

London-based STEM device maker Kano has confirmed it’s cutting a number of jobs which it claims is part of a restructuring effort to shift focus to “educational computing”.

The job cuts — from 65 to 50 staff — were reported earlier by The Telegraph. Kano founder Alex Stein confirmed in a call with TechCrunch that Kano will have 50 staff going into next year. Although he said the kid-focused learn to code device business is also adding jobs in engineering and design, as well as eliminating other roles as it shifts focus.

He also suggested some of the cuts are seasonal and cyclical — related to getting through the holiday season.

Per Stein, jobs are being taking out as the company moves from building atop the Raspberry Pi platform — where it started, back in 2013, with its crowdfunded DIY computer — to a Windows-based learning platform.

Other factors he pointed to in relation to the layoffs include a new manufacturing setup in China, with a “simpler, larger contract manufacturer”; fewer physical retail outlets to support, with Kano leaning more on Amazon (which he said is “cheaper to support”); fewer dependencies on large partners and agencies, with Stein claiming 18% of US parents with kids aged 6-12 are now familiar with the brand, reducing its marketing overhead; and a desire to shrink the number of corporate managers vs makers on its books as “we’ve seen a stronger response to our first-party Kano products — Computer Kit, Pixel Kit, Motion Sensor Kit — than expected this year”.

“We have brought on some roles that are more focused on this new platform [Kano PC], and some roles that were focused on the Raspberry Pi are no longer with us,” he also told TechCrunch.

Kano unveiled its first Windows-based PC this fall. The 11.6-inch touch-enabled, Intel Atom-powered computer costs $300 — which puts it in the ballpark price-range of Google’s Chromebook.

The tech giant has maintained a steady focus on the educational computing market — putting a competitive squeeze on smaller players like Kano who are trying to carve out a business selling their own brand of STEM-focused hardware. Against the Google Goliath, Stein touts factors such as relative repairability and attention to computing performance for the Kano PC (which he claims is “on a par with the Surface Go”), in addition to having now thrown its lot in with rival giant, Microsoft.

“The more and more we got into school environments the more and more we were in conversations with major North American distributors to schools, the more we saw that people wanted that ‘DIY’… product design, they wanted the hackability and extensibility of the kit, they wanted the tools to be open source and manipulable but they also wanted to be able to run Photoshop and to run Class Dashboard and to run Microsoft Office. And so that was when we struck the partnership with Microsoft,” said Stein.

“The Windows computing is packed with content and curriculum for teachers and an integration with Microsoft Teams which requires a different sort of development capability,” he added.

“The roles we’re adding are around subscription, they’re around the computer, building new applications and tools for the computer and continuing to enrich the number of projects that are available for our members now — so we’re doing things like allowing people to connect the sensors in their wands to household IoT device. We’re introducing, over the Christmas period, a new collaborative drawing app.”

According to Stein, Kano is “already seeing demand for 60,000 units in this next calendar year” for its Windows-based PC — which he said is “well beyond what we expect… given the price-point.

Although he did not put a figure on exact sales to date of the Kano PC.

He also confirmed Kano will be dialling back the range of products it offers next year.

It recently emerged that an own-brand camera device, which Kano first trailed back in 2016, will not now be shipping. Stein also told us that another co-branded Disney product they’d been planning for 2020 is being “put back” — with no new date for release as yet.

Stein denied sales have been lacklustre — claiming the current Star Wars and Frozen e-products have “done enough for us”. (While a co-branded Harry Potter e-wand is selling faster than expected, per Stein, who said they had expected to have stock until March but are “selling out”.)

“The reorganization we’ve done has nothing to do with growth and users,” he told us. “We are on track to sell through more units as well as products at a higher average selling price this fiscal year. We’re selling out of Wands when we expected to have stock all the way to March. We have more pre-launch demand for the Kano PC than anything we’ve ever done.”

Of the additional co-branded Disney e-product which is being delayed — and may not now launch at all next year, Stein told us: “The fact is we’re in negotiations with Disney around this — and around the timing of it. Given that we’re not certain we’re going to be doing it in 2020 some of the contractor roles in particular that we brought on to do the licensing sign off pieces, to develop some of the content around those brands, some of the apparatus set up to manage those partnerships — we don’t need any more.”

“We introduced three new hardware SKUs this year. I don’t think we’ll do three new hardware SKUs next year,” he added, confirming the intention is to trim the number of device launches in 2020 to focus on the Kano PC.

One source we spoke to suggested Kano is considering sunsetting its partner strategy entirely. However Stein did not go that far in his comments to us.

“We’ve been riding a certain bear for a few years. We’re jumping to a new bear. That’s always going to create a bit of exhilaration. But I think this is a place of real promise,” was how he couched the pivot.

“I think what Kano does better than anyone else in the world is crafting an experience around technology that opens up its attributes to a wider audience,” Stein also said when asked whether hardware or software will be its main focus going forward. “The hardware element is crucial and beautiful and we make some of the world’s most interesting dynamic physical products. It’s an often told story that hardware’s very hard and is brutal — and yeah, because you get it right you change the fabric of society.

“It’s hard for me to draw a line between hardware and software for the business because we’ve always been asked that and seven years into the business we’ve found the greatest things that people do with the products… it’s always when there’s a combination of the two. So we’re proud that we’re good at combining the two and we’re going to continue to do it.”

The STEM device space has been going through bumpy times in recent years as early hype and investment has failed to translate into sustained revenues at every twist and turn.

The category is certainly filled with challenges — from low barrier to entry leading to plentiful (if varied quality) competition, to the demands of building safe, robust and appealing products for (fickle) kids that tightly and reliably integrate hardware and software, to checking all the relevant boxes and processes to win over teachers and support schools’ curriculum requirements that’s essential for selling direct to the education market.

Given so many demands on STEM device makers it’s not surprising this year has seen a number of these startups exiting to other players and/or larger electronics makers — such as Sphero picking up littleBits.

A couple of years ago Sphero went through its own pivot out of selling co-branded Disney ‘learn to code’ gizmos to zoom in on the education space.

While another UK-based STEM device maker — pi-top — has also been through several rounds of layoffs recently, apparently as part of its own pivot to the US edtech market.

More consolidation in the category seems highly likely. And given the new relationship between Kano and Microsoft joining Redmond via acquisition may be the obvious end point for the startup.

Per the Telegraph’s report, Kano is in the process of looking to raise more funding. However Stein did not comment when asked to confirm the company’s funding situation.

The startup last reported a raise just over two years ago — when it closed a $28M Series B round led by Thames Trust and Breyer Capital. Index Ventures, the Stanford Engineering Venture Fund, LocalGlobe, Marc Benioff, John Makinson, Collaborative Fund, Triple Point Capital, and Barclays also participated.

TechCrunch’s Ingrid Lunden contributed to this report 

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Lessons from M-Pesa for Africa’s new VC-rich fintech startups

Posted by | Airtel, Bob Collymore, China, Chipper Cash, kenya, M-Pesa, Mobile, Opera, paga, payments, Safaricom, South Africa, Tanzania, TC, Venture Capital, visa, vodafone | No Comments

In African fintech, the fourth quarter of 2019 brought big money to new entrants.

Chinese investors put $220 million into OPay and PalmPay — two fledgling startups with plans to scale in Nigeria and the broader continent. Several sources told me the big bucks had created anxiety for more than few payments ventures in Nigeria with similar strategies and smaller coffers. They may not need to fret just yet, however: lessons from Africa’s most successful mobile-money case study, M-Pesa, suggest that VC alone won’t buy scale in digital finance.

Startups and fintech in Africa

Over the last decade, Africa has been in the midst of a startup boom accompanied by big growth in VC and improvements in internet and mobile penetration.

Some definitive country centers for company formation, tech hubs and investment have emerged; Nigeria, South Africa and Kenya lead the continent in numbers for all those categories. Additional strong and emerging points for innovation and startups across Africa’s 54 countries and 1.2 billion people include Ghana, Tanzania, Ethiopia, and Senegal.

The continent surpassed $1 billion in VC to startups in 2018 and per research done by Partech and WeeTracker, fintech is the focus of the bulk of capital and deal-flow.

By several estimates,  Africa is home to the largest share of the world’s unbanked and underbanked population.

This runs parallel to the region’s off-the-grid SME’s and economic activity — on display and in commercial motion through the street traders, roadside kiosks and open-air markets common from Nairobi to Lagos.

IMF estimates have pegged Africa’s informal economy as one of the largest in the world. Thousands of fintech startups have descended onto this large pool of unbanked and underbranked citizens and SMEs looking to grow digital finance products and market share.

In this race, the West African nation of Nigeria — home to Africa’s largest economy and population — is becoming an epicenter for VC. Many fintech-related companies are adopting a strategy of scaling there first before expanding outward.

Enter PalmPay and OPay

That includes new entrants OPay and PalmPay, which raised so much capital in fourth quarter 2019. It’s notable that both were founded in 2019 and largely incubated by Chinese actors.

PalmPay, a consumer-oriented payments product, went live in November with a $40 million seed-round (one of the largest in Africa in 2019) led by Africa’s biggest mobile-phones seller — China’s Transsion. The startup was upfront about its ambitions, stating its goals to become “Africa’s largest financial services platform,” in a company statement.

To that end, PalmPay conveniently entered a strategic partnership with its lead investor. The startup’s payment app will come pre-installed on Transsion’s mobile device brands, such as Tecno, in Africa — for an estimated reach of 20 million phones in 2020.

PalmPay also launched in Ghana in November and its U.K. and Africa-based CEO, Greg Reeve, confirmed plans to expand to additional African countries in 2020.

If PalmPay’s $40 million seed round got founders’ attention, OPay’s $120 million Series B created shock-waves, coming just months after the mobile-based fintech venture raised $50 million — making OPay’s $170 million capital haul equivalent to roughly a fifth of all VC raised in Africa in 2018.

Founded by Chinese owned consumer internet company Opera — and backed by 9 Chinese investors — OPay is the payment utility for a suite of Opera -developed internet based commercial products in Nigeria that include ride-hail apps ORide and OCar and food delivery service OFood.

With its latest Series A, OPay announced it would expand in Kenya, South Africa, and Ghana.

In Nigeria, OPay’s $170 million Series A and B announced in the span of months dwarfs just about anything raised by new and existing fintech players, with the exception of Interswitch.

The homegrown payments processing company — which pioneered much of Nigeria’s digital finance infrastructure — reached unicorn status in November when Visa took a reported $200 million minority stake in the venture.

A sampling of more common funding amounts for payments ventures in Nigeria includes established fintech company Paga’s $10 million Series B. Recent market entrant Chipper Cash’s May 2019 seed-round was $2.4 million.

There is a large disparity between fintech startups in Nigeria with capital raises in ones and tens of millions vs. OPay and PalmPay’s $40 and $120 million rounds. Conventional wisdom could be that the big-capital, big spending firms have an unmistakable advantage in scaling digital payments in Nigeria and other markets.

A look at Kenya’s M-Pesa may prove otherwise.

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FCC bans spending on Huawei, ZTE and other ‘national security threats’

Posted by | Asia, China, FCC, Government, huawei, Meng Wanzhou, Mobile, zte | No Comments

The FCC has finally put the seal of approval on its plan to cut funding going to equipment from companies it deems a “national security threat,” currently an exclusive club of two: Huawei and ZTE.

No money from the FCC’s $8.5 billion Universal Service Fund, used to subsidize purchases to support the rollout of communications infrastructure, will be spent on equipment from these companies.

“We take these actions based on evidence in the record as well as longstanding concerns from the executive and legislative branches,” said FCC Chairman Ajit Pai in a statement. “Both companies have close ties to China’s Communist government and military apparatus. Both companies are subject to Chinese laws broadly obligating them to cooperate with any request from the country’s intelligence services and to keep those requests secret. Both companies have engaged in conduct like intellectual property theft, bribery, and corruption.”

The Chinese companies have faced federal scrutiny for years, and vague suspicions of selling compromised hardware that the government there could take advantage of, but it was only at the beginning of 2019 that things began to heat up with the controversial arrest of Huawei CFO Meng Wanzhou. The companies, it hardly needs mentioning, have vehemently denied all allegations.

Increasingly complicated relations between China and the U.S. generally compounded the difficulty of ZTE and Huawei operating in the States, as well as selling to or purchasing from American companies.

The FCC’s new rule was actually proposed well before things escalated, a fact that Commissioner Jessica Rosenworcel, though she supported the measure, emphasized.

“This is not hard,” she wrote in a statement accompanying the new rule. “It should not have taken us eighteen months to reach the conclusion that federal funds should not be used to purchase equipment that undermines national security.”

Working out the details may have been difficult, however, given the generally chaotic state of the federal government right now. For instance, one month this summer it was going to be illegal for U.S. firms to sell their products to Huawei — and then it wasn’t. Just yesterday several senators wrote to protest the Department of Commerce issuing licenses to firms doing business with Huawei.

Another proposal discussed today but not yet adopted would require companies that receive USF funds to remove equipment from those companies that they may have already installed.

Admittedly it may be a financial burden for smaller carriers to comply with these rules. There’s a plan for that, though, as Chairman Pai explained: “To mitigate the financial impact of this requirement, particularly on small, rural carriers, we propose to establish a reimbursement program to help offset the cost of transitioning to more trusted vendors.”

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Microsoft’s HoloLens 2 starts shipping

Posted by | augmented reality, Australia, barcelona, Canada, China, Computer Vision, computing, France, Gadgets, Germany, hardware, head-mounted displays, holography, hololens 2, ireland, Japan, machine learning, Microsoft, microsoft hardware, Microsoft HoloLens, Microsoft Ignite 2019, mixed reality, New Zealand, United Kingdom, Windows 10 | No Comments

Earlier this year, at Mobile World Congress in Barcelona, Microsoft announced the second generation of its HoloLens augmented reality visor. Today, the $3,500 HoloLens 2 is going on sale in the United States, Japan, China, Germany, Canada, United Kingdom, Ireland, France, Australia and New Zealand, the same countries where it was previously available for pre-order.

Ahead of the launch, I got to spend some time with the latest model after a brief demo in Barcelona earlier this year. Users will immediately notice the larger field of view, which still doesn’t cover your full field of view, but offers a far better experience compared to the first version (where you often felt like you were looking at the virtual objects through a stamp-sized window).

The team also greatly enhanced the overall feel of wearing the device. It’s not light, at 1.3 pounds, but with the front visor that flips up and the new mounting system it is far more comfortable.

In regular use, existing users will also immediately notice the new gestures for opening the Start menu (this is Windows 10, after all). Instead of a “bloom” gesture, which often resulted in false positives, you now simply tap on the palm of your hand, where a Microsoft logo now appears when you look at it.

Eye tracking, too, has been greatly improved and works well, even over large distances, and the new machine learning model also does a far better job at tracking all of your fingers. All of this is powered by a lot of custom hardware, including Microsoft’s second-generation “holographic processing unit.”

Microsoft has also enhanced some of the cloud tools it built for HoloLens, including Azure Spatial Anchors, which allow for persistent holograms in a given space that anybody else who is using a holographic app can then see in the same spot.

Taken together, all of the changes result in a more comfortable and smarter device, with reduced latency when you look at the various objects around you and interact with them.

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China Roundup: TikTok stumbles in the US and Huawei shipments continue to surge

Posted by | alibaba, Android, Ant Financial, Apple, Asia, Beijing, bytedance, China, China Roundup, daniel zhang, huawei, kunlun, musical.ly, smartphones, TC, Tencent, tiktok, WeChat, WeWork | No Comments

Hello and welcome back to TechCrunch’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world. It’s been a very busy last week of October for China’s tech bosses, but first, let’s take a look at what some of them are doing in the neck of your woods.

TikTok’s troubles in the U.S.

The challenge facing TikTok, a burgeoning Chinese video-sharing app, continues to deepen in the U.S. Lawmakers have recently called for an investigation into the social network, which is operated by Beijing-based internet upstart ByteDance, over concerns that it could censor politically sensitive content and be compelled to turn American users’ data over to the Chinese government.

TikTok is arguably the first Chinese consumer app to have achieved international scale — more than 1 billion installs by February. It’s done so with a community of creators good at churning out snappy, light-hearted videos, highly localized operations and its acquisition of rival Musical.ly, which took American teens by storm. In contrast, WeChat has struggled to build up a significant overseas presence and Alibaba’s fintech affiliate Ant Financial has mostly ventured abroad through savvy investments.

TikTok denied the American lawmakers’ allegations in a statement last week, claiming that it stores all U.S. user data locally with backup redundancy in Singapore and that none of its data is subject to Chinese law. Shortly after, on November 1, Reuters reported citing sources that the U.S. government has begun to probe into ByteDance’s acquisition of Musical.ly and is in talks with the firm about measures it could take to avoid selling Musical.ly . ByteDance had no further comment to add beyond the issued statement when contacted by TechCrunch.

The new media company must have seen the heat coming as U.S.-China tensions escalate in recent times. In the long term, TikTok might have better luck expanding in developing countries along China’s Belt and Road Initiative, Beijing’s ambitious global infrastructure and investment strategy. The app already has a footprint in some 150 countries with a concentration in Asia. India accounted for 44% of its total installs as of September, followed by the U.S. at 8%, according to data analytics firm Sensor Tower.

lark

ByteDance is also hedging its bets by introducing a Slack-like workplace app and is reportedly marketing it to enterprises in the U.S. and other foreign countries. The question is, will ByteDance continue its heavy ad spending for TikTok in the U.S., which amounted to as much as $3 million a day according to a Wall Street Journal report, or will it throttle back as it’s said to go public anytime soon? Or rather, will it bow to U.S. pressure, much like Chinese internet firm Kunlun selling LGBTQ dating app Grindr (Kunlun confirmed this in a May filing), to offload Musical.ly?

Huawei is still selling a lot of phones

The other Chinese company that’s been taking the heat around the world appears to be faring better. Huawei clung on to the second spot in global smartphone shipments during the third quarter and recorded the highest annual growth out of the top-5 players at 29%, according to market analytics firm Canalys. Samsung, which came in first, rose 11%. Apple, in third place, fell 7%. Despite a U.S. ban on Huawei’s use of Android, the phone maker’s Q3 shipments consisted mostly of models already in development before the restriction was instated, said Canalys. It remains to be seen how distributors around the world will respond to Huawei’s post-ban smartphones.

Another interesting snippet of Huawei handset news is that it’s teamed up with a Beijing-based startup named ACRCloud to add audio recognition capabilities to its native music app. It’s a reminder that the company not only builds devices but has also been beefing up software development. Huawei Music has a content licensing deal with Tencent’s music arm and claims some 150 million monthly active users, both free and paid subscribers.

Co-living IPOs

danke apartment

China’s modern-day nomads want flexible and cost-saving housing as much as their American counterparts do. The demand has given rise to apartment-rental services like Danke, which is sometimes compared to WeLive, a residential offering from the now besieged WeWork that provides fully-furnished, shared apartments on a flexible schedule.

Four-year-old Danke has filed with the U.S. Securities and Exchange Commission and listed its offering size at $100 million, typically a placeholder to calculate registration fees. Backed by Jack Ma-controlled Ant Financial, the loss-making startup is now leasing in 13 Chinese cities, aggressively growing the number of apartments it operated to 406,746 since 2015. Its smaller rival Qingke has also filed to go public in the U.S. this week. Also operating in the red, Qingke has expanded its available rental units to 91,234 since 2012.

Apartment rental is a capital-intensive game. Services like Danke don’t normally own property but instead lease from third-party apartment owners. That means they are tied to paying rents to the landlords irrespective of whether the apartments are ultimately subleased. They also bear large overhead costs from renovation and maintenance. Ultimately, it comes down to which player can arrange the most favorable terms with landlords and retain tenants by offering quality service and competitive rent.

Also worth your attention

  • WeChat has been quite restrained in monetization but seems to be recently lifting its commercial ambitions. The social networking giant, which already sells in-feed ads, is expanding its inventory by showing users geotargeted ads as they scroll through friends’ updates, Tencent announced (in Chinese) in a company post this week.
  • Alibaba reported a 40% revenue jump in its September quarter, beating analysts’ estimates despite a cooling domestic economy. Its ecommerce segment saw strong user growth in less developed areas where it’s fighting a fierce war with rival Pinduoduo to capture the next online opportunity. Users from these regions spent about 2,000 yuan ($284) in their first year on Alibaba platforms, said CEO Daniel Zhang in the earnings call.
  • Walmart’s digital integration is gaining ground in China as it announced (in Chinese) that online-to-offline commerce now contributes 30% sales to its neighboorhood stores. Last November, the American retail behemoth began testing same-day delivery in China through a partnership with WeChat.

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Germany says it won’t ban Huawei or any 5G supplier up front

Posted by | 5g, 5g security, angela merkel, China, Europe, european union, Germany, huawei, Mobile, mobile technology, Security, telecommunications | No Comments

Germany is resisting US pressure to shut out Chinese tech giant Huawei from its 5G networks — saying it will not ban any supplier for the next-gen mobile networks on an up front basis, per Reuters.

“Essentially our approach is as follows: We are not taking a pre-emptive decision to ban any actor, or any company,” government spokesman, Steffen Seibert, told a news conference in Berlin yesterday.

The country’s Federal Network Agency is slated to be publishing detailed security guidance on the technical and governance criteria for 5G networks in the next few days.

The next-gen mobile technology delivers faster speeds and lower latency than current-gen cellular technologies, as well as supporting many more connections per cell site. So it’s being viewed as the enabling foundation for a raft of futuristic technologies — from connected and autonomous vehicles to real-time telesurgery.

But increased network capabilities that support many more critical functions means rising security risk. The complexity of 5G networks — marketed by operators as “intelligent connectivity” — also increases the surface area for attacks. So future network security is now a major geopolitical concern.

German business newspaper Handelsblatt, which says it has reviewed a draft of the incoming 5G security requirements, reports that chancellor Angela Merkel stepped in to intervene to exclude a clause which would have blocked Huawei’s market access — fearing a rift with China if the tech giant is shut out.

Earlier this year it says the federal government pledged the highest possible security standards for regulating next-gen mobile networks, saying also that systems should only be sourced from “trusted suppliers”. But those commitments have now been watered down by economic considerations at the top of the German government.

The decision not to block Huawei’s access has attracted criticism within Germany, and flies in the face of continued US pressure on allies to ban the Chinese tech giant over security and espionage risks.

The US imposed its own export controls on Huawei in May.

A key concern attached to Huawei is that back in 2017 China’s Communist Party passed a national intelligence law which gives the state swingeing powers to compel assistance from companies and individuals to gather foreign and domestic intelligence.

For network operators outside China the problem is Huawei has the lead as a global 5G supplier — meaning any ban on it as a supplier would translate into delays to network rollouts. Years of delay and billions of dollars of cost to 5G launches, according to warnings by German operators.

Another issue is that Huawei’s 5G technology has also been criticized on security grounds.

A report this spring by a UK oversight body set up to assess the company’s approach to security was damning — finding “serious and systematic defects” in its software engineering and cyber security competence.

Though a leak shortly afterwards from the UK government suggested it would allow Huawei partial access — to supply non-core elements of networks.

An official UK government decision on Huawei has been delayed, causing ongoing uncertainty for local carriers. In the meanwhile a government review of the telecoms supply chain this summer called for tougher security standards and updated regulations — with major fines for failure. So it’s possible that stringent UK regulations might sum to a de facto ban if Huawei’s approach to security isn’t seen to take major steps forward soon.

According to Handelsblatt’s report, Germany’s incoming guidance for 5G network operators will require carriers identify critical areas of network architecture and apply an increased level of security. (Although it’s worth pointing out there’s ongoing debate about how to define critical/core network areas in 5G networks.)

The Federal Office for Information Security (BSI) will be responsible for carrying out security inspections of networks.

Last week a pan-EU security threat assessment of 5G technology highlighted risks from “non-EU state or state-backed actors” — in a coded jab at Huawei.

The report also flagged increased security challenges attached to 5G vs current gen networks on account of the expanded role of software in the networks and apps running on 5G. And warned of too much dependence on individual 5G suppliers, and of operators relying overly on a single supplier.

Shortly afterwards the WSJ obtained a private risk assessment by EU governments — which appears to dial up regional concerns over Huawei, focusing on threats linked to 5G providers in countries with “no democratic and legal restrictions in place”.

Among the discussed risks in this non-public report are the insertion of concealed hardware, software or flaws into 5G networks; and the risk of uncontrolled software updates, backdoors or undocumented testing features left in the production version of networking products.

“These vulnerabilities are not ones which can be remedied by making small technical changes, but are strategic and lasting in nature,” a source familiar with the discussions told the WSJ — which implies that short term economic considerations risk translating into major strategic vulnerabilities down the line.

5G alternatives are in short supply, though.

US Senator Mark Warner recently floated the idea of creating a consortium of ‘Five Eyes’ allies — aka the U.S., Australia, Canada, New Zealand and the UK — to finance and build “a Western open-democracy type equivalent” to Huawei.

But any such move would clearly take time, even as Huawei continues selling services around the world and embedding its 5G kit into next-gen networks.

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