EU okays IBM's $34 bn buyout of Red Hat

France24 –AFP, 27 June 2019

IBM's tie-up with Red Hat will be one of the biggest tech mergers ever
GETTY IMAGES NORTH AMERICA/AFP

Brussels (AFP) - The EU's powerful anti-trust authority on Thursday cleared the buyout by IBM of open source software company Red Hat, one of the biggest tech mergers in history which the computing giant said would enhance its cloud offerings.

"The European Commission has approved unconditionally ... the proposed acquisition of Red Hat by IBM, both information technology companies based in the US," a statement from the EU executive said.

"The Commission concluded that the transaction would raise no competition concerns," it added.

The commission, the guardian of competition in the EU, took very little time to authorise the operation and has not demanded any concessions from the companies.

If approved by authorities worldwide, the tie-up will be the third biggest tech merger in history, according to CNBC. Red Hat said it was the biggest involving a software company.

Cloud computing refers to the delivery of computing services over the internet, including storage and software, and is considered fundamental to a highly connected world.

The EU's anti-trust teams have taken close looks at tech mergers, including Facebook's buyout of WhatsApp, in which the social network was fined in 2017 for failing to provide correct information.

Brussels' bans on mergers are extremely rare: since the arrival of European Competition Commissioner Margrethe Vestager at the end of 2014, there have only been six.

Once known primarily for its computer hardware, IBM has made cloud computing a priority in its growth strategy, like Amazon and Microsoft.

Red Hat will continue to operate as a separate unit led by its current management team.

Founded in 1993, Red Hat launched its famous version of Linux OS a year later, becoming a pioneering proponent of the open source movement that arose to counter giants like Microsoft whose models were based on keeping their source code secret.

The Raleigh, North Carolina based company is today present in 35 countries and employs some 12,000 people, and is one of the best-known open-source players whose customers pay for tailor-made solutions.

Major disruption hits KPN phone services, emergency service number fails

DutchNews, June 24, 2019

Photo: KPN

Major problems hit KPN telephone services on Tuesday afternoon, putting the emergency 112 number out of action and disrupting the company’s fixed link and mobile networks.

Police are calling on people who need emergency help to dial 088-6628240 instead, or to report to a police station. Extra police patrols have also been drafted in to increase the number of points of contact between the emergency services and the public. 

People experiencing problems in using their mobile phones should switch off their 4G services to see if this helps, KPN said. 

Phoning via Whatsapp, Facetime and Skype may also be possible as these use internet rather than the 4G network, where the problem appears to have originated. 

KPN says it is working towards a solution for the disruption, which began around 4pm but has not said when the problem may be fixed. 

Dutch railway company NS has also urged people to avoid Utrecht’s central railway station, where services have been disrupted for ‘various reasons’. 

‘We are recommending you avoid Utrecht Centraal for safety reasons,’ NS said in a statement. ‘Communication has been made more difficult by the KPN telephone breakdown.’

Mega verstoring op #UtrechtCS 😔 #geentreinennaarhetzuiden @NS_online Komen er bussen? Met airco graag 😇 pic.twitter.com/8A2BTKZIsc

— Lisette Kaptein (@lieskaptein) 24 juni 2019

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Huawei turns to Africa to offset US blacklist

Yahoo – AFP, Pierre Donadieu and AFP's African bureaus, June 9, 2019

Chinese tech giant Huawei, now in the middle of US-Chinese tensions, has
looked to bolster its ties in Africa (AFP Photo/Pau Barrena)

Paris (AFP) - As the US leads a drive for the West to shun Huawei over security fears, the Chinese tech giant has sought to strengthen its position in Africa, where it is already well-established.

Huawei has taken a leading role in developing next-generation 5G mobile phone networks around the world.

But it has been in turmoil since Washington charged its equipment could serve as a Trojan horse for Chinese intelligence services.

The world's second smartphone marker fiercely denies the allegations, but the US has urged countries to avoid it and several companies have distanced themselves.

They include Google, whose Android operating system runs most smartphones.

And as Washington and Beijing duke it out in an escalating trade war, nations around the world are faced with the dilemma of having to choose a side between the world's two top economies.

Russian President Vladimir Putin weighed in on Friday, slamming Washington's attempt to "unceremoniously push" Huawei out of the global market. Earlier in the week, Russia's MTS telecoms giant signed a deal with Huawei to develop a 5G network in the country.

Chinese President Xi Jinping, a guest of Putin at an economic forum in Saint Petersburg, said China was "ready to share technological inventions with all partners, in particular 5G technology".

But will the escalating fight lead to African nations having to choose between China -- the continent's top trade partner -- and the US?

"For African countries this trade war may end up a binary choice. It will be very difficult for Africa to just ignore" it, said Aly-Khan Satchu, an independent economic analyst based in Nairobi.

'Very aggressive strategy'

Huawei, now a major factor in US-Chinese tensions, has looked to strengthen its ties in Africa, last week signing an agreement to reinforce its cooperation with the African Union.

"This was a way to show that Huawei is still present in Africa and that they want to remain a major player by positioning themselves in this very important growth sector," said Ruben Nizard, an economist and Sub-Saharan Africa specialist at the French financial services firm Coface.

The deal comes after the French newspaper Le Monde reported in 2018 that China had spied on the AU's headquarters in Ethiopian capital Addis Ababa, citing sources inside the organisation.

The report said the spying began in 2012 after the completion of the AU's new headquarters that was financed by China, and was only noticed when technicians discovered data on the building's servers was being sent to Shanghai.

Both China and the AU reject the allegations.

Huawei has established itself across Africa since launching in Kenya in 1998, and now operates in 40 countries, providing 4G networks to more than half of the continent.

It will also showcase 5G -- the next-generation mobile phone network that will transmit data at far greater speeds -- in Egypt for the Africa Cup of Nations, which will be held from June 21 to July 19.

"Africa is a market Huawei had identified and which they conquered thanks to a very aggressive strategy based on cheap financing and speed of execution," Satchu told AFP.

"The fact that Huawei has equipped the AU says it all," he added.

'Big Brother Beijing'

Huawei's presence in Africa goes far beyond selling smartphones and building mobile networks.

In South Africa, it provides training at the country's top universities, this year launching a specialised course on 5G.

Kenya's government signed a 17.5-billion-shilling ($172 million) deal with Huawei in April to build a data centre and "smart city" services.

The Chinese giant also offers a "safe city" surveillance programme.

This initiative, according to the firm's website, "can prevent crimes targeted towards the normal citizen, tourists, students, elderly persons etc before they occur".

It has been deployed in Kenya's capital Nairobi as well as Mauritius, with 4,000 "smart" surveillance video cameras set up at 2,000 sites across the Indian Ocean island nation.

Some media outlets in Mauritius have condemned the system as "digital dictatorship" from "Big Brother Beijing".

But Ghanaian Security Ministry Albert Kan-Dapaah, for one, says Huawei's video surveillance technology helps catch criminals.

"When a crime has been committed, thanks to the cameras, we work magic," Kan-Dapaah says in a promotional video for the Chinese firm.

Huawei Marine, the company's submarine cable arm, is helping to deploy a key 12,000-kilometre (7,450-mile) cable system connecting Africa to Asia.

With Huawei so deeply embedded in Africa, the continent may find it difficult to avoid becoming a collateral victim of the US-China bust-up.

"Africa is caught in the middle of a trade war that they should not have to take part in, because they have nothing to gain," said Nizard.

China grants 5G commercial licences despite US tech battle

Yahoo – AFP, June 6, 2019

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

China on Thursday granted 5G commercial licences to four domestic companies, as it races to be a global leader in advanced wireless networks amid fierce rivalry from the United States.

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

But Beijing's ambitions have faced a major challenge from Washington, which has blacklisted Chinese tech giant Huawei just as it seeks to provide equipment for 5G networks in several countries.

Since last year, 5G trials have been conducted in Chinese cities ahead of plans to deploy the technology across the country in 2020, and now the government has given the green light.

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

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

wi

China Mobile later said it would offer 5G services in 40 Chinese cities this year.

The United States has urged other countries to shun Huawei over concerns that its equipment could be used by Beijing's intelligence services.

Chinese 5G to 'lead world'

Commenting on the announcement, Huawei -- which produces both network equipment and mobile phones -- said it will "fully support" Chinese operators to build 5G infrastructure.

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

Another Chinese phone maker, Vivo, said its 5G devices are ready for network testing and will be on sale once trials are complete.

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

The move has led to an escalation in the US-China trade war, with Beijing preparing its own blacklist of "unreliable" foreign companies.

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

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

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

Foreign ministry spokesman Geng Shuang said the approval of the licenses was Beijing's way to show the world that "China will continue to expand its openness and sustain the global free trade system that is experiencing volatility due to unilateralism and protectionism".

South Korea launched the world's first nationwide 5G mobile networks in April, while US mobile carrier Verizon began rolling out its 5G services in Chicago and Minneapolis.

A limited rollout is also expected in Japan in 2019 before full services start in time for next year's Tokyo Olympics.

It is the rollout in China, however, that is likely to have a global impact on 5G technology.

"As the world's largest mobile market, almost anything that China does is significant," said Peter Jarich, head of GSMA Intelligence, adding that the country has the "power to drive the market... around the world".