Економіка

Europe’s existing telecom networks aren’t up to the job of handling surging amounts of internet data traffic, a top European Union official said Monday, as he defended a consultation on whether Big Tech companies should help pay for upgrades.

The telecom industry needs to reconsider its business models as it undergoes a “radical shift” fueled by a new wave of innovation such as immersive, data-hungry technologies like the metaverse, Thierry Breton, the European Commission’s official in charge of digital policy, said at a major industry expo in Barcelona called MWC, or Mobile World Congress.

Breton’s remarks came days after he announced a consultation on whether digital giants should help contribute to the billions needed to build the 27-nation bloc’s future communications infrastructure, including next-generation 5G wireless and fiber-optic cable connections, to keep up with surging demand for digital data.

“Yes, of course, we will need to find a financing model for the huge investments needed,” Breton said in a copy of a keynote speech at the MWC conference.

Telecommunications companies complain they have had to foot the substantial costs of building and operating network infrastructure only for big digital streaming platforms like Netflix and Facebook to benefit from the surging consumer demand for online services.

“The consultation has been described by many as the battle over fair share between Big Telco and Big Tech,” Breton said. “A binary choice between those who provide networks today and those who feed them with the traffic. That is not how I see things.”

Big tech companies say consumers could suffer because they’d end up paying twice, with extra fees for their online subscriptions.

Breton denied that the consultation was an attack on Big Tech or that he was siding with telecom companies.

“I’m proposing a new approach,” he later told reporters. Topics up for discussion include how much investment is needed and whether regulations need to be changed, he said.

“We will have zero taboo,” Breton said, referring to the conference’s approach that no topic is off limits. “Do we need to adapt it? Do we need to discuss who should pay for what? This is exactly what is the consultation today.”
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A top U.S. cybersecurity official launched a warning shot at major technology companies, accusing them of “normalizing” the release of flawed and unsafe products while allowing the blame for safety issues, security breaches and cyberattacks to fall on their customers.

Cybersecurity and Infrastructure Security Agency (CISA) Director Jen Easterly called Monday for new rules and legislation to hold technology and software companies accountable for selling products that she says are released despite known vulnerabilities.

While massive hacking campaigns by China and other adversaries, including Russia, Iran and North Korea, are a major problem, “cyber intrusions are a symptom rather than a cause,” Easterly told an audience at Carnegie Mellon University in Pittsburgh.

“The cause, simply put, is unsafe technology products,” she said. “The risk introduced to all of us by unsafe technology is frankly much more dangerous and pervasive than the [Chinese] spy balloon, but somehow we’ve allowed ourselves to accept it.”

The push for regulation and legislation is not entirely new. Both Easterly and former National Cyber Director Chris Inglis, who stepped down earlier this month, warned during their confirmation hearings more than a year and a half ago that government action could be required if private companies refused to do more.

“Enlightened self-interest, that’s apparently not working. … Market forces, that’s apparently not working,” Inglis said at the time. 

Now, with China running a “massive and sophisticated” hacking program, and threats from other countries and from cyber criminals constantly growing, “we have to make a fundamental shift,” Easterly said.

CISA is in the process of laying out a set of core principles, Easterly said. Some of the most critical are to make sure that the burden for safety is never left solely to tech and software customers, that manufacturers be transparent about problems and how to fix them, and that products be “secure by design and secure by default.”

“Technology must be purposefully designed and developed and built and tested to significantly reduce the number of exploitable flaws before they’re introduced into the market for broad use,” Easterly said. 

“Ultimately such a transition to secure-by-design and secure-by-default products will help organizations and technology providers, because it’ll mean less time fixing problems, more time focusing on innovation and growth, and importantly it’ll make life much harder for our adversaries.”

Easterly said the U.S. government is already using its purchasing power to help make the change, requiring companies that want government contracts to meet higher security requirements.

She also praised a handful of companies, including Apple, Google, Mozilla and Amazon Web Services for moving to a more secure model but called efforts by others, including Twitter and Microsoft when it comes to the use of multifactor authentication, “disappointing.” 

VOA contacted Microsoft and Twitter for their reaction to Easterly’s specific criticism. Neither had provided a response as of the time of publication.

“We’ve normalized the fact that technology products are released to market with dozens, hundreds or thousands of defects when such poor construction would be unacceptable in any other critical field,” Easterly said, adding other industries have found ways to change.

“For the first half of the 20th century, conventional wisdom held that car accidents were solely the fault of bad drivers,” she said. “Cars today are designed to be as safe as possible. … Nobody would think of purchasing a car today that didn’t have seatbelts or airbags included as standard features, and no one would accept paying extra to have these basic security features installed.” 
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The big beasts of the telecom industry kicked off their most important annual get-together in Barcelona on Monday, promising to lead a “tsunami of innovation”, as they try to shrug off a major slump across the technology sector.

Some 80,000 delegates are expected at the four-day Mobile World Congress (MWC), which is back to near full strength following years of pandemic-related disruption.

Industrial titans like Huawei, Nokia and Samsung are set to showcase their latest innovations, flanked by smartphone makers like Oppo and Xiaomi and network operators like Orange, Verizon and China Mobile.

“We are at the doors of a new change of era driven by the intersection of Telco, Computing, Artificial Intelligence and Web3,” said Jose Maria Alvarez-Pallete, boss of Spanish operator Telefonica and current chairman of industry body GSMA, which organizes the Barcelona event.

He promised the telecoms industry would be at the forefront of the “tsunami of innovation”, adding: “Without telcos there is no digital future.”

But many of the firms are more concerned with finding a path back to profit as the global economy stutters and the wider tech sector slashes thousands of jobs.

In the first clear sign that the ills of the wider tech sector are reaching telecoms, equipment maker Ericsson announced 8,500 layoffs last week.

Overall sales of smartphones last year slumped by 11.3 percent compared with 2021, according to the IDC consultancy.

Research firm Gartner reckons sales of smartphones, tablets and computers will fall again by four percent this year.

And network operators are still struggling to make 5G pay, years after they spent billions in government auctions for the right to use the bandwidth.

‘Unsustainable situation’ 

A hugely popular idea for many at the show is to get the owners of bandwidth-hungry platforms like YouTube, Netflix and Facebook to pay network operators a “fair share”.

Christel Heydemann, boss of French operator Orange, said the five largest users — which she did not name — account for 55% of daily traffic on European networks, costing telecoms firms 15 billion euros ($16 billion) a year.

She said it was an “unsustainable situation” and welcomed a public consultation launched by EU commissioner Thierry Breton last week.

But Breton told the MWC on Monday that it was not a “binary choice” or a battle between telecoms and big tech.

He said the idea was for everyone to make sure Europe had the best possible network by 2030 and warned that telecoms firms “will have to adapt to survive”.

Critics of the “fair share” narrative point out that customers already pay the operators for use of their networks.

Netflix boss Greg Peters, who is unlikely to be enthusiastic about the fair share proposal, is expected at the MWC on Tuesday.

Huawei center stage 

The organizers are trumpeting the return of Chinese delegates as a vital boon to the event.

Chinese firms heavily sponsor the MWC and Huawei is once again getting pride of place, this time hosting the biggest dedicated pavilion in the event’s decades-long history.

The Chinese tech giant was the second biggest smartphone maker in the world in 2020 but retreated after US regulators accused it of being controlled by Beijing.

The firm is now under pressure in Europe, where Breton and other commissioners are pushing for its equipment to be removed from 5G network infrastructure.

Huawei boss Eric Xu said before the event he would use the MWC to display products that would “help carriers meet evolving demand and unleash more opportunities for new growth”.

In total, GSMA said the four-day show would host almost 750 operators and manufacturers and 2,000 exhibitors.
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NASA and SpaceX postponed a planned Monday launch of a four-member crew to the International Space Station due to a ground systems issue. 

The decision came less than three minutes before the spacecraft was due to lift off from NASA’s Kennedy Space Center in Cape Canaveral, Florida. 

A backup launch date had already been set for early Tuesday. 

The four-person crew includes two Americans, one Russian and one astronaut from the United Arab Emirates. 

NASA said their planned six-month mission includes a range of scientific experiments including studying how materials burn in microgravity, collecting microbial samples from outside the space station and “tissue chip research on heart, brain, and cartilage functions.” 
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Twitter Inc has laid off at least 200 employees, or about 10% of its workforce, the New York Times reported late on Sunday, in its latest round of job cuts since Elon Musk took over the micro-blogging site last October. 

The layoffs on Saturday night impacted product managers, data scientists and engineers who worked on machine learning and site reliability, which helps keep Twitter’s various features online, the NYT report said, citing people familiar with the matter. 

Twitter did not immediately respond to a Reuters request for comment. 

The company has a headcount of about 2,300 active employees, according to Musk last month. 

The latest job cuts follow a mass layoff in early November, when Twitter laid off about 3,700 employees in a cost-cutting measure by Musk, who had acquired the company for $44 billion. 

Musk said in November that the service was experiencing a “massive drop in revenue” as advertisers pulled spending amid concerns about content moderation. 

Twitter recently started sharing revenue from advertisements with some of its content creators. 

Earlier in the day, The Information reported that the social media platform laid off dozens of employees on Saturday, aiming to offset a plunge in revenue. 
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Mexico is undergoing a fevered competition among states to win a potential Tesla facility in jostling reminiscent of what happens among U.S. cities and states vying to win investments from tech companies.

Mexican governors have gone to extremes, like putting up billboards, creating special car lanes or creating mock-ups of Tesla ads for their states.

And there’s no guarantee Tesla will build a full-fledged factory. Nothing is announced, and the frenzy is based mainly on Mexican officials saying Tesla boss Elon Musk will have a phone call with Mexican President Andrés Manuel López Obrador.

The northern industrial state of Nuevo Leon seemed to have an early edge in the race.

It painted the Tesla logo on a lane at the Laredo-Colombia border crossing into Texas last summer and is erecting billboards in December in the state capital, Monterrey, that read “Welcome Tesla.”

The state governor’s influencer wife, Mariana Rodriguez, was even shown in leaked photos at a get-together with Musk.

However, López Obrador appeared to exclude the semi-desert state from consideration Monday, arguing he wouldn’t allow the typically high water use of factories to risk prompting shortages there.

That set off a competitive scramble among other Mexican states. The governors’ offers ranged from crafty proposals to near-comic ones.

“Veracruz is the only state with an excess of gas,” quipped Gov. Cuitláhuac García of the Gulf Coast state, before quickly adding “gas … for industrial use, for industrial use!”

A latecomer to the race, García had to try harder: He noted Veracruz was home to Mexico’s only nuclear power plant. And he claimed Veracruz had 30% of Mexico’s water, though the National Water Commission puts the state’s share at around 11%.

The governor of the western state of Michoacan wasn’t going to be left out. Gov. Alfredo Ramírez Bedolla quickly posted a mocked-up ad for a Tesla car standing next to a huge, car-sized avocado — Michoacan’s most recognizable product — with the slogan “Michoacan — The Best Choice for Tesla.”

“We have enough water,” Ramírez Bedolla said in a television interview he did between a round of meetings with auto industry figures and international business representatives.

Michoacan also has an intractable problem of drug cartel violence. But similar violence in neighboring Guanajuato state hasn’t stopped seven major international automakers from setting up plants there.

Nuevo Leon Gov. Samuel García had to think fast to avoid being shut out entirely.

García reached out to the western state of Jalisco, whose governor, Enrique Alfaro, belongs to the same small Citizen’s Movement party. Together, the two came up with an alliance Thursday that would allow trucks from Jalisco preferential use of Nuevo Leon’s border crossing, the same one where a “Tesla” lane appeared last year.

Jalisco has a healthy foreign tech sector, but most importantly, it has more water than Nuevo Leon.

López Obrador’s focus on water might be more about politics than about droughts, said Gabriela Siller, chief economist at Nuevo Leon-based Banco Base. She said the president appeared to be trying to steer Tesla investment to a state governed by his own Morena party, like Michoacan or Veracruz.

That could be a dangerous game, Siller said.

“Tesla could say it’s not somebody’s toy to be moved around anywhere, and it could decide not to come to Mexico,” she said.

There are doubts that whatever Musk eventually does announce will be an auto assembly plant. Foreign Relations Secretary Marcelo Ebrard said his understanding is that it won’t be a plant, but rather an ecosystem of suppliers.

Musk at times has floated the idea of building a $25,000 electric vehicle that would cost about $20,000 less than the current Model 3, now Tesla’s least-expensive car. Many automakers build lower-cost models in Mexico to save on labor costs and protect profit margins.

A Tesla investment could be part of “near shoring” by U.S. companies that once manufactured in China but now are leery of logistical and political problems there. That those companies will now turn to Mexico represents the Latin American country’s biggest foreign investment hope.

“The fight among states to attract investments from this nearshoring phenomenon is going to be tough, complicated,” Michoacan’s Ramírez Bedolla said.

As Ramírez Bedolla put it, “wherever Tesla sets up, it is going to be big news in Mexico.”
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The latest folding-screen smartphones, immersive metaverse experiences, AI-powered chatbot avatars and other eye-catching technology are set to wow visitors at the annual MWC wireless trade fair that kicks off Monday.

The four-day show, held in a vast Barcelona conference center, is the world’s biggest and most influential meeting for the mobile tech industry. The range of technology set to go on display illustrates how the show, also known as Mobile World Congress, has evolved from a forum for mobile phone standards into a showcase for new wireless tech.

Organizers are expecting as many as 80,000 visitors from as many as 200 countries and territories as the event resumes at full strength after several years of pandemic disruptions.

Here’s a look at what to expect:

Metaverse

There was a lot of buzz around the metaverse at last year’s MWC and at other recent tech fairs like last month’s CES in Las Vegas. Expect even more at this event.

Several companies are planning to show off their metaverse experiences that will allow users to connect with each other, attend events far away, or enter fantastical new online worlds.

Software company Amdocs will use virtual and augmented reality to give users a “metatour” of Dubai. Other tech and telecom companies promise metaverse demos to help with physical rehab, virtually try on clothes, or learn how to fix aircraft landing gear.

The metaverse’s popularity exploded after Facebook founder Mark Zuckerberg in late 2021 exalted it as the next big thing for the internet and his company. Lately, though, doubts have started to creep in.

“All the business models around the metaverse are a big question mark right now,” said John Strand, a veteran telecom industry consultant.

Artificial intelligence

AI has caught the tech world’s attention thanks to the dramatic advances in new tools like ChatGPT that can hold conversations and generate readable text. Expect artificial intelligence to be deployed as an “overused buzzword” at MWC, said Ben Wood, principal analyst at CCS Insight.

Companies are promising to show how they’re using AI to make home Wi-Fi networks more energy efficient or sniff out fakes.

Microsoft’s press representatives have hinted that they might have a demonstration of ChatGPT but haven’t provided any details. The company added AI chatbot technology to its Bing search engine but scrambled to make fixes after it responded with insults or wrong answers to some users who got early access.

Startups will demo their own AI-powered chat technology: D-ID will show off their eerie “digital human” avatars, while Botslovers says its service promises to “free humans from boring tasks.”

Not just smartphones

MWC hit its stride in the previous decade as the smartphone era boomed, with device makers competing for attention with glitzy product launches. Nowadays, smartphone innovation has hit a plateau and companies are increasingly debuting phones in other ways.

Attention at the show is focusing on potential uses for 5G, the next generation of ultrafast wireless technology that promises to unlock a wave of innovation beyond just smartphones, such as automated factories, driverless cars and smart cities.

“Mobile phones will still be a hot topic at MWC, but they’ve become a mature, iterative and almost boring category,” Wood said. “The only excitement will come from the slew of foldable designs and prototypes, but the real size of the market for these premium products remains unclear.”

Device launches will be dominated by lesser-known Chinese brands such as OnePlus, Xiaomi, ZTE and Honor looking to take market share from the market leaders, Apple and Samsung.

Chinese presence

Chinese technology giant Huawei will have a major presence at MWC, despite being blacklisted by the Western governments as part of a broader geopolitical battle between Washington and Beijing over technology and security.

Organizers say Huawei will have the biggest presence at the show among some 2,000 exhibitors. That’s even after the U.S. pushed allies to get their mobile phone companies to block or restrict Huawei’s networking equipment over concerns Beijing could induce the company to carry out cybersnooping or sabotage critical communications infrastructure.

Huawei, which has repeatedly denied those allegations, also has been squeezed by Western sanctions aimed at starving it of components like microchips.

Analysts say one message that Huawei could be sending with its oversized display is defiance to the West.
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