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    5G unmade: The UK’s Huawei reversal splits the global telecom supply chain

    The decision the United Kingdom’s government made last February has now been unmade: In a stunning U-turn last July 14, admittedly prompted by United States policy, the UK’s Department for Digital, Culture, Media & Sport declared that technology made by Huawei will be expunged from the country’s telecommunications networks, including 5G Wireless and earlier generations, by the end of 2027.
    “The government agrees with the National Cyber Security Centre’s advice,” stated the Department’s secretary, Oliver Dowden, in a speech delivered on the floor of the House of Commons.  “The best way to secure our networks is for operators to stop using new affected Huawei equipment to build the UK’s future 5G networks. So to be clear, from the end of this year, telecoms operators must not buy any 5G equipment from Huawei. And once the Telecoms Security Bill is passed, it will be illegal for them to do so.”
    Last February’s initial decision by the same regulatory body, merely to limit Huawei’s participation in UK 5G but not permit it into the core of the network, was described by me in these pages as “a pinnacle event with potentially world-changing repercussions.” The next move, I argued, lay with the United States. Britain’s mid-July reversal suggests the US’ move was decisive.
    China’s response, as signaled by an article in Wednesday’s China Daily, is to assert that Huawei owns most of the intellectual property, in the form of patents, related to 5G — an assertion that is widely disputed outside China. Nevertheless, whether it’s as big as China thinks it is, it’s the next weapon in this new cold war:

    Currently, despite being the owner of the intellectual property, Huawei does not receive financial benefit from it, preferring a cross licensing system, exchanging access to its systems with rival companies.
    But it is within the company’s rights to end that approach in markets from which it has been excluded, meaning systems wanting to benefit from Huawei-owned designs and plans could have to pay for them. As other tech companies have already found out, this can be a lucrative and powerful position.

    Pinching yourself

    In March 2019 — back before mask wearing became the polarized political issue of our times — a report from UK-based Enders Analysis projected the possibility, if not the likelihood, of a permanently crippled telecom supply chain. That report cited the considerable consolidation in the global telecom market since 2004, during which time the world’s eight leading suppliers besides Huawei were condensed to just two — Nokia and Ericsson.

    As with most any other industry, telecommunications providers (“telcos” in the States, “telecoms” in Europe and the UK) don’t like to be locked down to any single supplier for a market. They would prefer, at the very least, to dual-source their suppliers instead. Eliminating Huawei from the market effectively makes their dual-source choice for them, potentially eliminating any price advantages that could be gained through negotiation.  “This would be a massive backwards step in supply chain terms,” the Enders team wrote, “with UK operators having to take whatever products have been developed for other markets, as opposed to being able to take a development lead.”
    Then last July, while ministers were pondering the repercussions of reversing their earlier decision, Enders projected the cost to the British economy of ripping and replacing Huawei equipment from its wireless networks. With Huawei equipment playing some role in the delivery of as much as 40 percent of Britain’s broadband connections, and with BT’s fiber infrastructure provider Openreach delivering connections to some 2.6 million premises nationwide, the cumulative cost for the nation, the Enders team estimated, would be between £1.5 billion and £2.0 billion over a period of as long as seven years.
    Those reports’ principal author is Enders Analysis head of technology, James Barford.
    “I think ideally, you would want three global suppliers,” Barford told ZDNet.  “It would be good if there was a way we could work globally to aid their survival. But it is a global question; it’s very hard for an individual country to solve that problem, because you need global scale.”

    “The P.R. problem isn’t that Huawei is the only place that makes 5G. The P.R. problem is, Huawei is a tool of the Chinese government, and if you buy from them, you’re giving up your privacy.”
    — Dr. James A. Lewis, Senior Vice President, Center for Strategic and International Studies
    The UK would prefer to be in a position where it could take what steps are necessary to rectify a supply or innovation problem, in an industry upon which so much of its national interests, and even its self-image, depends. Today, Nokia finds itself underwater on account of costly design mistakes (since last year) and shareholder abandonment. As Barford asserted, in a market where the number of available suppliers is artificially pinched to one or two, and one of those suppliers is being widely talked about as a rescue-mission takeover target by the other, it’s unlikely, if not impossible, for any single country — not the UK, and not the US (despite the wishes of Attorney-General Barr) — to step in and play rescuer. Sidestepping protocols to grant Nokia special contracts would be illegal or, in the absence of regulatory enforcement, at least unethical.
    Meanwhile, insofar as the China market is concerned, stated Barford, “the volume in China is such that, if you’re not doing well in China, it’s very difficult to be doing well globally. The problem is, the more Huawei gets attacked in the US and Europe, the better it seems to do in China. Huawei grew its revenue in the first half of the year!”
    Indeed, Huawei’s growth figure is 13.1 percent year-over-year, in H1 2020. Losses in global markets on account of growing skepticism about the company’s intentions, as well as growing contempt for China over the coronavirus, were more than offset by surging sales at home. The post-pandemic boom there is being credited for surging consumer demand. Huawei’s domestic smartphone sales surged by such a level that it overtook Samsung as the world’s leading smartphone producer.
    Clean hands

    As US and UK policy now both perceive it, Huawei is China. China’s hands, at least in the metaphorical sense, are being portrayed as dirty from human rights abuses, dirty from reneging on trade deals, and dirty from its initial international, denial-laden response to the novel coronavirus.
    Washing one’s hands has become both popular and necessary these days. In May, the US State Dept. cleverly leveraged the mental image of hand washing to its advantage, releasing a recommendations list it calls Criteria for Security and Trust in Telecommunications Networks and Services. Produced by the Washington, DC-based Center for Strategic and International Studies, the document steps away from the argument that China could force Huawei to use 5G systems for its own espionage. In its place are 31 recommendations, none of which mention any country in particular, but which directly bind the intent of any 5G equipment supplier to the policies of the country in which it’s headquartered. Preferably there should be an independent judiciary, the document suggests, under a legal system that respects “the presumption of innocence and the right to a public hearing.”
    There’s also this:

    Suppliers are less trustworthy if they exhibit a pattern of behavior and practices outside widely accepted international commercial norms that indicate interdependence between a company and a host government. The criteria for assessing this include, for example, legal or formal requirements that government or political party representatives be part of a supplier’s administration or management, have arbitrary access to company data and operations or can compel cooperation or impose obligations for intelligence purposes on the company without it having the right to appeal to an independent judiciary.

    In its adoption of the CSIS document as the official policy of the US Government, the State Dept. launched its international campaign to promote a kind of post-Huawei, post-COVID technological hygiene. It dubbed this campaign “Clean Networks.”
    “The tide is turning against Huawei as citizens around the world are waking up to the danger of the Chinese Communist Party’s surveillance state,” read a statement issued in late June by Secretary of State Mike Pompeo. In that statement, Pompeo cites and effectively certifies France’s Orange, India’s Jio, Australia’s Telstra, South Korea’s SK Telecom, Japan’s NTT, and the UK’s O2 as having made commitments to become “Clean Telcos.” And he quotes Telefónica CEO José María Álvarez-Pallete López as having already achieved this goal, declaring Telefónica a “5G Clean Path company,” and his company’s network for Spain as a “fully clean network.”
    The principal author of the Criteria for Security and Trust document is CSIS Senior Vice President for Tech Policy, Dr. James A. Lewis.
    “If Huawei went away tomorrow — if there was a loud popping noise, and there was only a big grease stain [left] — it wouldn’t slow down 5G at all,” Dr. Lewis told ZDNet.
    “It would be a godsend to Nokia and Ericsson, but it’s not going to happen,” he continued.  “Yes, they’re an important company. Yes, they play a big role. But the idea that they dominate or lead is just complete fiction. . . Huawei has a tremendous public relations firm — they pump out all this nonsense, ‘Huawei is the only company that can make 5G.’ Oh, horses**t. Horse manure, if you prefer. It’s like the rest of the Chinese state. They have a Leninist propaganda machine, and they crank out this stuff.  ‘China did not do a bad job in handling COVID.’ Oh, right! You get this overwhelming flow, and Huawei is part of the Chinese propaganda machine.”
    Should the equipment providers for “clean networks” simply resume their march towards a sustainable business model, undaunted by Huawei’s absence — or the billions that countries may absorb in erasing any trace of its presence?
    “Huawei’s finally caught by its own track record,” responded Lewis, “which is, it’s probably one of the least trustworthy companies in the world.” He cited a Canadian government official who recently told him that no one, from his perspective, trusts Huawei in Canada.  “Some countries don’t care,” he added, “so Huawei’s going to be dominant in Africa. It’ll do well in Southeast Asia [and] the Middle East. But Huawei needs to do more on P.R., and the P.R. problem isn’t that Huawei is the only place that makes 5G. The P.R. problem is, Huawei is a tool of the Chinese government, and if you buy from them, you’re giving up your privacy.”
    “I don’t think Huawei is run by the Chinese state,” remarked Enders’ James Barford.
    “I think China is a lot more complicated,” he continued.  “It’s not like North Korea or Venezuela in terms of the power of the state. It’s very authoritarian in some ways, but you also get really quite entrepreneurial companies popping up within it. It’s kind of more complicated than to say, here’s this authoritarian state, and that means every company within that country is suspect, and is somehow controlled by that state. I don’t think it quite works that way.”

    “What we don’t want is a situation where Huawei and ZTE work in China, Ericsson and Nokia work in the rest of the world, Samsung does a bit here and there. . . and at the basic standards level, suppliers aren’t working together.”
    — James Barford, Head of Technology, Enders Analysis
    With respect to technological security, Barford pointed out that a more effective method for disrupting a 5G network may involve, rather than a cryptographic back door that leads to a “kill switch,” a baseball bat. Any actual or would-be authoritarian state with interest in disrupting a system upon which another state’s citizens are dependent, could easily float some tinfoil-hat conspiracy theory on Twitter or Facebook. Probable case in point: the notion that 5G generates coronavirus, which not only led to acts of vandalism against cellular towers throughout the UK, but the publication (and subsequent withdrawal) of at least one purportedly serious medical study.
    “There’s a reasonably big base station near where I live,” noted Barford, “and the power supply is at the ground level. You just have to rip out the cords; it’s not that hard. There’s a fence, yeah, but it’s not a high fence. You need a latter and a pair of very insulated wire cutters, and you can stop it working.”
    Barford suggested that the type of conspiracy theory which would lead one to suspect Huawei is a propaganda tool of the Chinese state, isn’t really clever enough for a 21st century scenario, where the more clever approach is typically lower-tech — apart from a few behavior-tracking algorithms.
    “I think you should be looking for a kill switch in everybody’s equipment,” he told ZDNet.  “Because you don’t know which factory it’s been through. You don’t know who’s been bribed by whom. Is it only Chinese nationals who can do things on behalf of the Chinese state? I don’t think so; they’ve got money.”
    Three ways to doomsday

    Back in July 2019, ZDNet cited former FCC CTO Dr. Henning Schulzrinne as having asserted that the prevailing anti-China theory at the time — that Huawei could leave open a technological back door for its master country — would be both technologically impossible for 5G, as well as unacceptable in a market-driven economy. Since that time, this theory has been abandoned.
    “Huawei doesn’t need a back door. They have a front door,” remarked CSIS’ Dr. Lewis.  “They own the updater, they get status reports from the equipment sent back to Shenzhen, they do in some cases operate the networks.”
    In his testimony before the Senate Commerce Committee last March 4, Lewis explicitly asserted that Nokia and Ericsson would both produce better 5G technology than Huawei, which a European Union-commissioned study found to be producing equipment that was vulnerable to exploitation. As he told Congress:

    US companies are strong in the markets that 5G will enable. We face tough competitors, but chief risk to US strength in 5G innovation is badly designed privacy rules. The doomsday argument is that, because of slowness in 5G deployment and the allocation of the wrong spectrum frequencies, American entrepreneurs will not be able to take advantage of 5G. But the US is not slow in 5G deployment, and spectrum allocation is not an obstacle.

    There are two other doomsday arguments, the first of which will be familiar to ZDNet readers. It’s that a disconnected global supply chain will lead regional markets to spin out unto themselves. In the absence of a clear American leader, and because the reach of those markets would all be limited and competition reduced, the cost of equipment would be higher, the speed of innovation would be slower, and the likelihood of global investment activity would be much lower, if not in certain cases, zero.

    “For the Europeans, I get that they want technological sovereignty. We have to accept that. We have to support it.”
    — Dr. James A. Lewis, Senior Vice President, Center for Strategic and International Studies
    It would be the quintessential catalyst for market fragmentation.  This was the argument being made by every telco, every equipment producer, and every telecom analyst with whom we spoke two years ago, without exception, back when the world seemed more cooperative, and globalization was a good thing. 
    “What we don’t want,” explained Enders’ James Barford, “is a situation where Huawei and ZTE work in China, Ericsson and Nokia work in the rest of the world, Samsung does a bit here and there. Ultimately, telecoms companies everywhere have reduced choice, and at the basic standards level, suppliers aren’t working together. The best ideas aren’t winning through. At the moment, if one of Ericsson, Huawei, and Nokia have a good idea, the others have to follow. . . to keep up. But we don’t want to be in a situation where one of them has an innovation, and the rest of the world just kind of carries on. If Huawei has an innovation that makes China better, the rest of the world just misses out.”

    Dr. Lewis chuckled a bit at this scenario. His assertion is that technology standards at all levels, but especially technology, become global by nature. Yes, countries may seek to assert some type of sovereign control over Internet traffic — besides China, Germany and Russia have also staked claims to digital sovereignty, and observers do perceive this as a global trend. But the technology that enables this sovereignty can, and probably will, depend on globally interdependent standards that are being designed and decided upon at a different level of the conversation, believes Lewis.  “We’ve only started thinking through these technologies that will allow governments to exert greater control,” he told us.  “I think that’s inevitable.”
    Just as a plethora of digital communications protocols eventually gave way to TCP/IP, argued Lewis, wireless telecommunications is following the same trend. The drive toward interoperability will force the technologies at the core of the network to become lower-margin, less consequential businesses — less so than the applications built atop the single stack. This trend, he believes, is orthogonal to the evolution of the telecom supply chain.  “When you move to this IP-based, white-box telecom world, some of these issues are just going to go away.”
    But what if these applications from which 5G would bear fruit, don’t take root on a broad enough geographical scale to be profitable investments? That’s the other doomsday argument, as articulated by Barford: Telecommunications and information technologies have essentially merged into one industry, he stated, essentially agreeing with one of Lewis’ premises. But if the supply chains for both technologies not only separate from one another again, but subdivide amongst themselves on sovereignty lines, then investment in the businesses that constitute these chains — especially the startups seeking to produce new applications — will become withdrawn. Funding for new ventures will dry up, and so much for autonomous vehicles.
    “You don’t want to reverse it, so that telecoms equipment once more is the slightly doddering uncle of the rest of the IT industry,” Barford said.
    “Some politicians like the idea of their national champions,” he continued, citing some MPs’ continued despair about ARM Holdings, the former jewel in the British crown, selling itself to Japan’s SoftBank in 2016.  “This is madness. The American tech sector isn’t strong because it’s got Cisco, Facebook, or Google. It’s strong because it’s got a thousand small startups developing the next thing, and Cisco’s hoovering up a lot of them. A lot of the technology is developed by startups — small, specialized companies that do one thing, and do it very, very well. . . Most of the employment will always be in companies that will be eventually acquired. And you’re shooting yourself in the foot by saying you can’t be acquired. Who’s going to invest in that? Who’s going to want to be a founder of that, if you don’t have your upside? You’ll stick with working for the American giants; you won’t form your own startup.”

    “I think you should be looking for a kill switch in everybody’s equipment… Is it only Chinese nationals who can do things on behalf of the Chinese state? I don’t think so; they’ve got money.”
    — James Barford, Head of Technology, Enders Analysis
    “There’s a lot of maybe’s in that argument,” responded CSIS’ Lewis.  “There’s a series of conditions.”
    Venture capitalists, he argued, think in simpler terms.  “They want to make 10x,” he said, “but they’ll settle for 3x. I think we’re seeing a world that has more money than ideas. That would be a good thing to change.”
    Besides, added Lewis, it may be foolish to assume that the money put to use in chasing good ideas, is entirely global in nature. He cited the Chinese government’s interest in slashing foreign investments. There are plenty of good ideas emerging from unusual product segments — one example Lewis cited was “food tech.” If a food tech idea looks good enough to a VC, simply put, it will invest. But if it looks good enough to China, he said, its response would be different.
    “Are the Chinese going to say, ‘No, we’re always going to buy Chinese food tech?’ The first thing they do is try and copy it. But if that doesn’t work, then they’re going to buy it. I think that’s one of the problems: There’s not going to be a bifurcation in the global market. Americans will still sell some stuff to the Chinese; the Chinese will still sell some stuff to the Americans. Europeans will sell to both. It could happen, but right now the problem is, more money than ideas.”

    In Lewis’ analysis, there are three principal trends underlying the costs of 5G technology:
    The short-term costs of purging Chinese technology, which would cause an uptick;
    Countries protecting their own industries by not buying China-subsidized technology, which would level off that uptick;
    The long-term, inexorable move to white-box telecom equipment at the core, which will restore the downward price trend to the level it was, making this near-term event a blip on the radar.
    “People need to stop pretending that we’re not in a dispute between two very different kinds of systems,” asserted Lewis.  “For the Europeans, I get that they want technological sovereignty. We have to accept that. We have to support it. But they’re much more likely to get a deal that’s consistent with their values, and with the rule of law, working with the US than with China.”
    Learn more — From the CBS Interactive Network
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    HPE CEO Neri seeing steady demand as enterprise customers shift priorities

    Hewlett Packard Enterprise CEO Antonio Neri has intimate knowledge of COVID-19 since he was infected. Now he’s directing HPE’s supply chain, employee base and culture amid a pandemic.
    I caught up with Neri to talk demand, edge computing, the promise of HPE software and the company’s pivot to selling its entire portfolio as a service. Recent events from HPE’s last earnings report:
    Here are a few themes and highlights from our talk with the full conversation in the video.
    Returning to work during the COVID-19 pandemic. Neri had COVID-19 and was able to recover quickly. HPE has been able to recover its supply chain and has been able to work through the backlog from last quarter. Workers have been able to work remote in HPE’s 172 markets and customers are looking to support employees with a “cloud native approach.”
    “We have reopened 93 sites around the globe, but none in the United States it’s zero. And we are what we call in phase one, which is up to 20% of the employees are allowed to come back to the office, but we’re working through that.

    The future of work. Neri said:

    We are not going to be going back to the way we used to where people will have a desk and come and do the job. I think the office will be totally redesigned to provide a more collaborative and innovative experience. Probably up to 50% of the workforce will never return to the office to do their job on a daily basis. Obviously, all of them would come back to the office to do innovation center sessions, collaboration sessions, and then ultimately for social aspect of it. It is an opportunity to change the way we work and to provide a better experience, but also to rationalize our footprint.

    Neri added that every worker has a different family situation and school arrangements are going to be challenging. HPE and other companies will have to support those employees with flexibility while retaining the corporate culture.
    The demand picture for HPE. “Demand has been steady, but what we see is the demand is shifting to new areas or different areas for that matter,” he said.
    Neri said any infrastructure or software that covers IT resiliency is garnering attention. Security is another key area as well as the cloud and virtual desktop infrastructure as well as high-performance computing. “Then you have the campus and then you have the branch. And now you have these micro branches, which is all our offices around the globe, our home offices. And so security is essential,” said Neri.
    These branch offices also serve as edge locations. HPE bought Silver Peak to complement its Aruba portfolio. Neri noted that the edge will provide data for analytics and ultimately new business models.
    HPE as an edge company. Neri said:

    We want to be known as the edge-to-cloud platform as-a-service company. And in that there are three major components. One is, as-a- service because obviously customers want to consume their solutions in a more consumption driven, pay only for what you consume. And that experience, at the core is simplicity and automation for all the apps and data, wherever they live.
    Obviously, the edge is the next frontier. And we said two years ago that the enterprise of the future will be edge-centric, cloud-enabled and data-driven. Well, guess what? The future is here now. The edge is where we live and work. And so for us, as customers accelerate the digital transformation the first step in that journey is connectivity. And this is where being an edge platform is essential.

    What about compute and storage? Neri said compute and storage is still the core business for HPE and has become important due to the importance of data and how it is proliferating.
    HPE as software firm. Ezmeral, HPE’s new software brand, is an alternative that can compete with VMware and Red Hat OpenShift. There are other software assets in the portfolio such as GreenLake and HPE InfoSight. I asked Neri about the challenge of seeing HPE as a software firm.
    Neri said:

    Our strategy is to be true open source, autonomous, intelligent, and secure, and be able to connect all their edges and all their clouds in a very automated way. And we have already won quite a significant number of customers because of HPE Ezmeral. There is a large financial institution here in the Bay area that need to run Splunk as a workload on prem because of the amount of data. They don’t want to pay the cost of egress and data back and forth, and they want a true cloud native approach. And by the way, we deploy that because of HPE Ezmeral with our compute and storage solutions, deliver as-a- service to HPE GreenLake. Those are the type of customers we’re going to track going forward.

    It’s about land and expand with new workloads and be able to provide managed services for the entire estate.

    Can everything-as-service drive revenue growth? Neri said:

    It’s a journey. Obviously, there is a component of customer acceptance. But the fact that customers have already embraced the consumption model through shifting some workloads to the cloud that tells you the OPEX model is something that’s being adopted more and more than just a CAPEX model.
    We see the growth, we see the momentum, but obviously when you are (a large) company, to pivot everything in that model will take time.  More

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    This $35 accessory is a must-have for MacBook, iPad Pro, and Windows laptop users

    I test a lot of USB-C accessories to test, but few end up as part of my equipment. But there’s one accessory that I’ve had for over a year now, and I use it pretty much daily on my MacBook, iPad Pro, and any USB-C equipped Windows 10 laptops I happen to be using.
    It’s a hub. A small hub that fits onto a pocket or bag easily. And best of all, it’s only $35.99.
    It’s the Anker 7-in-1 USB-C hub.
    Must read: iPhone iOS 13.6 battery draining fast for no obvious reason? Try this fix

    On the connectivity front, the hub comes with a single 4K 30Hz HDMI, a 100W Power Delivery USB-C port, a USB-C data port, microSD/SD card reader slots, and two USB 3.0 ports.

    It also comes with a 20cm USB-C cable attached. Initially I thought this to be a weak link because if this broke the hub is trash, but after over a year of hard use, it’s still like new.
    Anker quality shines through.
    It also comes with a carry pouch for keeping it scratch-free and any chunks out of the ports.
    The only port that’s missing is an Ethernet port, but to be honest I can’t remember the last time I needed to use one. If you want a very similar portable hub that has an Ethernet port, then Anker make an 8-in-1 hub with that feature for $59.99.

    I’ve literally used this hub on dozens of devices, and taken it with me on long trips, and it has not let me down once.
    All Anker hubs come with an 18-month worry-free warranty in the event of something going wrong.
    I’m curious to know what must-haves you use. Let me know! More

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    Amazon vs Elon Musk's SpaceX: Bezos' internet from space plan moves a step closer

    Amazon has received US approval for its Project Kuiper broadband satellite constellation and says it will invest more than $10bn in the initiative that will bring it into direct competition with SpaceX’s Starlink business. 
    The Federal Communications Commission on Thursday approved Amazon’s plan, revealed in mid-2019, to launch 3,236 satellites into low-Earth orbit and deliver broadband to underserved parts of the world.  

    Networking

    The FCC decision marks the first major development in Amazon’s satellite broadband plans in months. Over the past year, Elon Musk’s SpaceX has launched batches of 60 Starlink broadband satellites on the back of SpaceX rockets at a rate of about one launch per month.
    SpaceX currently has just under 600 Starlink satellites in orbit and is gearing up to launch its private beta with users in North America. 
    In that time, potential satellite broadband rival, OneWeb, filed for chapter 11 bankruptcy in March after failing to secure additional funding and launching just 76 satellites.

    OneWeb was given a controversial $500m lifeline by a consortium including India’s Bharti Global and the UK government in July, which may allow it to reach its target of launching 600 internet-beaming satellites. 
    Amazon CEO Jeff Bezos takes a keen interest in spaceflight, founding aerospace company Blue Origin in 2000. However, it has not yet been confirmed which company will be responsible for launching the Project Kuiper satellites. 
    Amazon’s Kuiper says its broadband service can begin once 578 satellites have been launched. It plans to deploy the system in five phases, with its satellites operating at altitudes of 367 miles, or 590km, 379 miles (610km) and 391 miles (630km), according to the FCC’s approval document.   
    Like SpaceX, Amazon says its service will provide high-speed, low-latency broadband services to places where traditional fiber or wireless network providers haven’t been able to reach. 
    The service will include gateway earth stations, end-user ground terminals, and satellite operations centers.
    It will also provide backhaul solutions for wireless carriers to broaden coverage of LTE and 5G service to new regions. 
    “There are still too many places where broadband access is unreliable or where it doesn’t exist at all. Kuiper will change that. Our $10bn investment will create jobs and infrastructure around the United States that will help us close this gap,” said Dave Limp, senior vice president of Amazon.
    The FCC’s order requires that Amazon launch and operate half of its satellites by July 30, 2026 and then launch the remainder of the constellation by July 30, 2029.
    Amazon CEO Jeff Bezos takes a keen interest in spaceflight, founding aerospace company Blue Origin in 2000. However, it has not yet been confirmed which company will be responsible for launching the Project Kuiper satellites.
    More on SpaceX’s Starlink and internet-beaming satellites More

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    ACCC corrects its video conferencing Critical Services Report

    Image: Getty Images/iStockphoto
    The Australian Competition and Consumer Commission (ACCC) has reissued its Critical Services Report that was released on July 8, following uproar from vendors about the consumer watchdog saying they used foreign servers for Australian customers.
    The ACCC had pointed out that Google Meet, Skype, and Microsoft Teams all had lower latency than Zoom, GoToMeeting, and Webex, which the ACCC had pinned on the latter trio for making use of servers overseas.
    After publication, Zoom and Cisco contested the findings, with both stating they had data centres in Australia.
    “Zoom and Cisco advised us that in addition to hosting video conferences on servers based overseas, they do host some video conferences on servers based in Australia, depending on the amount of traffic at any given time,” the ACCC said in a correction issued on Friday afternoon.
    “It is not known how much traffic is off-loaded onto international servers.”

    The ACCC said its report was based on free accounts with the services.
    “Whether a video conference is hosted from a domestic or international server can depend on such factors as where the account is created, whether it is a basic or premium (paid) account, and the overall demand at the time,” it said.
    The original ACCC report used over 850 samples for Zoom and Webex in its report.
    The last week of July 2020 has not been a banner week for the ACCC.
    On Monday, the watchdog announced it was filing legal action against Google for allegedly misleading Australian consumers when it started combining users’ Google profile data with their activity on websites that used DoubleClick to display ads.
    In doing so, the ACCC used an example that Google corrected.
    “An earlier version of this media release used a hypothetical example that suggested that Google used information about users’ health to personalise or target advertisements,” a notice now reads.
    “Google says that it does not show personalised ads based on health information. This example has been removed.”
    By Thursday, the Federal Court dismissed its appeal against a judgment that found TPG did not make misleading representations about its prepayment protocols.
    Woof: Consumer watchdog coverage More

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    Department says 'vast majority' of FttN lines to get 25Mbps speeds in December

    An NBN FttN node getting a Nokia line card installed
    Image: Corinne Reichert/ZDNet
    With the 18-month period of co-existence — where fibre-to-the-node (FttN) infrastructure also needs to support legacy services over copper, such as ADSL — coming to an end across Australia, the Department of Infrastructure, Transport, Regional Development and Communications has said it expects the “vasty majority” of FttN connections to hit the minimum 25Mbps speed on the National Broadband Network (NBN).
    By comparison, NBN only guaranteed speeds of 12Mbps in co-existence.
    “NBN Co Limited has indicated that, as at 1 July 2020, co-existence has ended on 5,750 nodes out of a total of 27,933 nodes in the fibre to the node footprint,” the Department said in response to questions from the Joint Standing Committee on the National Broadband Network.
    “The vast majority of fibre to the node lines are expected to achieve a peak speed of at least 25 megabits per second by December 2020.”
    The department further said that as of May, almost 140,000 FttN premises were not capable of hitting the 25Mbps mark.

    “This reduction from the figures NBN Co provided in April 2019 mainly reflects the company’s progress on ending co-existence, but also the impact of ongoing network optimisation work,” the department said.
    “Where the network is not capable of providing the minimum wholesale download speeds after co-existence has ended, NBN Co will take action to rectify any issues in its network so that the requirements of the Statement of Expectations are met.”
    In response to another question, the department said NBN was unable to proceed with 120 fixed wireless sites. It added that it also decided to move premises on 26 fixed wireless sites onto its fixed line technologies.
    “The changes mean that around 22,000 premises that were planned to be served by fixed wireless or were served by fixed wireless or satellite will instead be served by fixed line, while around 20,000 premises that were planned to be served by fixed wireless will instead be served by satellite,” it said.
    In June, NBN said it was unable to roll out fixed wireless to 500 premises in rural areas around Adelaide and users were shifted onto satellite instead.
    “Opposition to fixed wireless towers in this part of the Adelaide Hills continues to be an obstacle to securing a lease for a suitable site with a willing landowner,” NBN said at the time.
    It further added 21 premises were moved from FttN technology onto its satellite service after encountering rocky soil.
    “The presence of rock in the soil more than tripled the deployment cost for fixed line making it cost prohibitive,” it said.
    “Fixed wireless was not considered in this case due to the very low premises count meaning that deployment of this technology is also cost prohibitive.”
    The department said it was unaware of any plans to shift customers off satellite services after the initial network build is complete.
    It also detailed the fixed wireless sites that were shifted to satellite.
    Those sites were Beechmont, Beechmont North, Blackheath, Blue Mountain, Bonogin South, Boyland, Brigadoon, Broken Head, Bulahdelah East, Byers, Clagiraba, Clyde North, Cornelia, Crabbes Creek, Daylesford, Dooralong, Dulong, Dural East, Fairney View West, Federal, Ferguson, Fingal, Forrestdale, Gilston, Glenorie, Glenorie West, Grose Vale, Gwinganna South, Hellfire Pass, Humbug Scrub, Humpty Doo South, Kangaloon, Karnup South, Kenthurst West, Keppel Sands, Kilmore East, Kingsholme, Kooralbyn, Kulangoor, Lakesland, Lamington North, Lillian Rock, Maroota, Moolap, Moss Vale, Mount Samson West, Mount Walker, Mulgoa North, Mylor, Neranwood South, Nerong, Nethercote, Onkaparinga Hills, Ourimbah West, Pheasants Nest, Piggabeen, Pomborneit, Reesville, Robertson South, Smithfield South, Smiths Gully East, Springbrook North, Springbrook South, Stoneville, Surveyors Bay, Talbingo, Tamborine South, Theresa Park West, Tomewin, Toolern Vale, Torquay East, Uki North, Upper Brookfield, Verrierdale, Verrierdale East, Wedderburn, Wellard, Wendoree Park, Wisemans Ferry, Witta, Wolvi, Woorabinda and Wooragee.
    At a committee hearing in June, Department of Finance attempted to pour cold water on the idea of writing down the value of NBN, stating that any movements in value are dictated by accounting standards.
    “The value of NBN in government-funded statements is in line with the Australian accounting standards. So there isn’t an ability for the government to unilaterally choose to write down or determine the value of NBN,” Department of Finance first assistant secretary for financial analysis, reporting and management, governance and resource management Tracy Carroll told the committee.
    “For the financial year most recently completed, NBN is valued on the basis of the net assets. There’s a process being undertaken right now, for the financial year that will end on 30 June 2020, to consider what’s the appropriate value for the NBN that would be reflected.”
    Carroll added that there is no expectation of a write-down this year.
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    Multiple Tor security issues disclosed, more to come

    Image: Tor Project

    Over the past week, a security researcher has published technical details about two vulnerabilities impacting the Tor network and the Tor browser.
    In blog posts last week and today, Dr. Neal Krawetz said he was going public with details on two alleged zero-days after the Tor Project has repeatedly failed to address multiple security issues he reported throughout the past years.
    The researcher also promised to reveal at least three more Tor zero-days, including one that can reveal the real-world IP address of Tor servers.
    Approached for comment on Dr. Krawetz’s intentions, the Tor Project did not reply to a request for comment and provide additional details on its stance on the matter.
    The first Tor security issue
    Dr. Krawetz, who operates multiple Tor nodes himself and has a long history of finding and reporting Tor bugs, disclosed the first Tor security issue last week.

    In a blog post dated July 23, the researcher described how companies and internet service providers could block users from connecting to the Tor network by scanning network connections for “a distinct packet signature” that is unique to Tor traffic.
    The packet could be used as a way to block Tor connections from initiating and effectively ban Tor altogether — an issue that oppressive regimes are very likely to abuse.
    The second Tor security issue
    Earlier today, in a blog post shared with ZDNet, Dr. Krawetz disclosed a second issue. This one, like the first, allows network operators to detect Tor traffic.
    However, while the first issue could be used to detect direct connections to the Tor network (to Tor guard nodes), the second one can be used to detect indirect connections.
    These are connections that users make to Tor bridges, a special type of entry points into the Tor network that can be used when companies and ISPs block direct access to the Tor network.
    Tor bridges act as proxy points and relay connections from the user to the Tor network itself. Because they are sensitive Tor servers, the list of Tor bridges is being constantly updated to make it difficult for ISPs to block it.
    But Dr. Krawetz says connections to Tor bridges can be easily detected, as well, using a similar technique of tracking specific TCP packets.
    “Between my previous blog entry and this one, you now have everything you need to enforce the policy [of blocking Tor on a network] with a real-time stateful packet inspection system. You can stop all of your users from connecting to the Tor network, whether they connect directly or use a bridge,” Dr. Krawetz said.
    Both issues are specifically concerning for Tor users residing in countries with oppressive regimes.
    Dissatisfaction towards the Tor Project’s security stance
    The reason why Dr. Krawetz is publishing these issues in Tor is that he believes the Tor Project does not take the security of its networks, tools, and users seriously enough.
    The security researcher cites previous incidents when he tried to report bugs to the Tor Project only to be told that they were aware of the issue, working on a fix, but never actually deploying said fix. This includes:
    A bug that allows websites to detect and fingerprint Tor browser users by the width of their scrollbar, which the Tor Project has known about since at least June 2017.
    A bug that allows network adversaries to detect Tor bridge servers using their OR (Onion routing) port, reported eight years ago.
    A bug that lets attackers identify the SSL library used by Tor servers, reported on December 27, 2017.
    All of these issues are still not fixed, which has led Dr. Krawetz in early June 2020 to abandon his collaboration with the Tor Project and take the current approach of publicly shaming the company into taking action.

    I’m giving up reporting bugs to Tor Project. Tor has serious problems that need to be addressed, they know about many of them and refuse to do anything.I’m holding off dropping Tor 0days until the protests are over. (We need Tor now, even with bugs.) After protests come 0days.
    — Dr. Neal Krawetz (@hackerfactor) June 4, 2020

    Updated at 20:30 ET, July 30:
    The Tor Project has responded to Dr. Krawetz’ two blog posts. It’s a lengthy response detailing each issue, which we are reproducing in full below. In summary, the Tor Project’s reply is that they are aware of the issues the researcher reported, but they differ on the threats they pose to users, claiming they can’t be enforced at scale. The full reply is below:
    “We have been working on the first issue raised in the blog post published 7/23 (scrollbar width) here: https://gitlab.torproject.org/tpo/applications/tor-browser/-/issues/22137. The blog post claims that the scrollbar width of a Tor Browser user can be used todistinguish which operating system they are using. There are other ways a Tor Browser user’s operating system can be discovered. This is known and publicly documented. When Tor Browser does not communicate the operating system of its user, usability decreases. Commonly used websites cease to function (ie, Google Docs). The security downside of operating system detection is mild (you can still blend with everybody else who uses that operating system), while the usability tradeoff is quite extreme. Tor Browser has an end goal of eliminating these privacy leaks without breaking web pages, but it is a slow process (especially in a web browser like Firefox) and leaking the same information in multiple way is not worse than leaking it once. So, while we appreciate (and need) bug reports like this, we are slowly chipping away at the various leaks without further breaking the web, and that takes time.
    “The second claim in the first blog post published 7/23 outlines a way to recognize vanilla Tor traffic based on how it uses TLS with firewall rules. Fingerprinting Tor traffic is a well-known and documented issue. It’s an issue that has been discussed for more than a decade. (Example: https://gitlab.torproject.org/tpo/core/torspec/-/blob/master/proposals/106-less-tls-constraint.txt). Fixing the way Tor traffic can be fingerprinted by its TLS use is very small step in the censorship arms race. We decided that we should not try to imitate normal SSL certs because that’s a fight we can’t win. Our goal is to help people connect to Tor from censored networks. Research has shown that making your traffic look like some other form of traffic usually leads to failure (http://www.cs.utexas.edu/~amir/papers/parrot.pdf). The strategy Tor has decided to take is better and more widely applicable, and that strategy is developing better pluggable transports. Tor has an entire anti-censorship team tackling this problem and has funding earmarked for thisspecific purpose.
    “The blog post published 7/30 is correct in suggesting that a finely-calibrated decision tree can be highly effective in detecting obfs4; this is a weakness of obfs4. However, what works in someone’s living room doesn’t necessarily work at nation-scale: running a decision tree on many TCP flows is expensive (but not impossible) and it takes work to calibrate it. When considering the efficacy of this, one also has to take into account the base rate fallacy: the proportion between circumvention traffic and non-circumvention traffic is not 1:1, meaning that false positives/negative rate of 1% (which seems low!) can still result in false positives significantly outweighing true positives. That said, obfs4 is certainly vulnerable to this class of attack. The post says “However, I know of no public disclosure for detecting and blocking obfs4.” There’s work in the academic literature. See Wang et al.’s CCS’15 paper: https://censorbib.nymity.ch/#Wang2015a. See also Frolov et al.’s NDSS’20 paper: https://censorbib.nymity.ch/#Frolov2020a The blog post cites Dunna’s FOCI’18 paper to support his claim that the GFW can detect obfs4. This must be a misunderstanding. On page 2, the paper says: “We find that the two most popular pluggable transports (Meek [7] and Obfs4 [18]) are still effective in evading GFW’s blocking of Tor (Section 5.1).” The blog post also cites another post to support the same claim: https://medium.com/@phoebecross/using-tor-in-china-1b84349925da. This blog post correctly points out that obfs4 bridges that are distributed over BridgeDB are blocked whereas private obfs4 bridges work. This means that censors are not blocking the obfs4 protocol, but are able to intercept bridge information from our distributors. One has to distinguish the protocol from the way one distributes endpoints.”The findings published today (7/30) are variants of existing attacks (which is great!) but not 0-days. They are worth investigating but are presented with little evidence that they work at scale.”
    The Tor Project also disagreed with Dr. Krawetz’ classification of the issues he detailed on the blog as zero-days. The title has been updated accordingly. More