Apple Deepens Austin Ties, Expands Operations East and West

Apple will build a $1 billion campus in Austin, Texas, break ground on smaller locations in Seattle, San Diego and Culver City, California, and over the next three years expand in Pittsburgh, New York and Colorado.

The tech giant said Thursday that the new campus in Austin, less than a mile from existing Apple facilities, will open with 5,000 positions in engineering, research and development, operations, finance, sales and customer support. The site, according to Apple, will have the capacity to eventually accommodate 15,000 employees.

The three other new locations will have more than 1,000 employees each.

Early this year, Apple said that it would make more than $30 billion in capital expenditures in the U.S. over the next five years. That, the company said in January, would create more than 20,000 new jobs at existing and new campuses that Apple planned to build.

Where U.S. companies open new facilities or plants has always had the potential for public and political backlash.

That potential has intensified under the Trump administration, which has pushed companies to keep more of their operations inside the country’s borders.

While CEO Tim Cook has steered mostly clear President Donald Trump’s ire, Apple did receive some push back three months ago from the White House.

Apple sent a letter to the U.S. trade representative warning that the burgeoning trade war with China and rising tariffs could force higher prices for U.S. consumers.

Trump in a tweet told Apple to start making its products in the U.S., and not China.

Apple uses a lot of facilities overseas to produce components and its products, including China.

Top tech executives from Google, Microsoft, IBM, Oracle and Qualcomm gathered at the White House earlier this month to discuss strained ties between the administration and the industry, and trade tensions with China. Cook was not among them, nor was Amazon’s Jeff Bezos.

There are already 6,000 Apple employees in Austin, its largest operation outside of company headquarters in Cupertino, California, where 37,000 people are employed.

“Apple has been a vital part of the Austin community for a quarter century, and we are thrilled that they are deepening their investment in our people and the city we love,” said Austin Mayor Steve Adler in a prepared statement Thursday.

Apple said nearly a year ago that it would begin canvassing the U.S. for another campus.

Cities offered incentives to lure the company, but Cook avoided a high-profile competition that pitted them against one another as Amazon did over the last year and a half.

Amazon, too, expands

Amazon announced in November after a 14-month search it had selected Long Island City, Queens, and Arlington, Virginia, as the joint winners. Each site will employ around 25,000 people.

Cities are eager to bring in more tech employers because companies like Apple and Amazon ladle out six-figure salaries to engineers and other skilled workers.

The infusion of thousands of new and highly paid residents can ripple through an economy, with those employees filling restaurants, theaters, buying property and paying taxes.

Annual pay will vary at the new locations, but Apple workers in Cupertino have an average annual salary of about $125,000, according to a report the company submitted to the city.

Virgin Galactic’s New Flight Test to Soar Closer to Edge of Space

Virgin Galactic is preparing for a new flight test Thursday that aims to fly higher and faster than before toward the edge of space.

The U.S. company run by British tycoon Richard Branson is aiming to be the first to take tourists on brief trips into microgravity.

Virgin Galactic’s fourth flight test on the VSS Unity is scheduled for Thursday, weather permitting.

The flight will take off from a spaceport in Mojave, California.

The vessel does not launch from Earth but is carried to a higher altitude — about nine miles (15 kilometers) high — attached to an airplane.

Then, two pilots on the VSS Unity fire the engines toward the frontier of space, typically defined as an altitude of 62 miles (100 kilometers).

In July, after burning the rocket motor for 42 seconds, the VSS Unity reached a height of 32 miles, a part of the atmosphere called the mesosphere.

Commercial airplanes typically fly at an altitude of about six miles.

The VSS Unity reached a top speed of over 1,530 miles per hour, or beyond Mach 2.

“Overall the goal of this flight is to fly higher and faster than previous flights,” said a statement from Virgin Galactic.

“If all goes to plan our pilots will experience an extended period of microgravity as VSS Unity coasts to apogee, although — being pilots — they will remain securely strapped in throughout.”

Another U.S. rocket company, Blue Origin, founded by Amazon CEO Jeff Bezos, is also racing to be the first to send tourists to space, but using a small rocket to get there.

Virgin’s first flight date has been pushed back multiple times, following a test flight accident that killed a co-pilot in 2014.

Branson told CNN in November he hoped to send people to space “before Christmas.”

More than 600 clients have already paid $250,000 for a ticket.

OMG: California Regulators Consider Charge on Text Messaging

California regulators are considering a plan to charge a fee for text messaging on mobile phones to help support programs that make phone service accessible to the poor.

The Mercury News reports Wednesday that the proposal is scheduled for a vote next month by the state Public Utilities Commission.

The wireless industry and business groups have been working to defeat the plan.

Jim Wunderman of the Bay Area Council, a business-sponsored advocacy group, says it would essentially put a tax on conversations.

The newspaper says it’s unclear how much money individual consumers would be asked to pay their wireless carrier for texting services under the proposal. But it likely would be billed as a flat surcharge — not a fee per text.

Sports, Deaths Among 2018’s Top Google Searches

Sports, disaster and death were among the top searches on Google last year.

Each December, the technology company releases it’s top trending searches of the year. Topics that drew the interest of Americans included the World Cup, Hurricane Florence and three people who died in 2018 — rapper Mac Miller, designer Kate Spade and TV host and author Anthony Bourdain.

Google does not come up with its lists based on the number of total searches. Instead, the company looks at the search terms that enjoyed the highest spike compared to the previous year.

“Black Panther” topped the list of most searched movies, while rising stars in the Democratic party dominated the list of most searched politicians.

Here are the Top 10:

  1. World Cup

  2. Hurricane Florence

  3. Mac Miller

  4. Kate Spade

  5. Anthony Bourdain

  6. Black Panther

  7. Mega Millions Results

  8. Stan Lee

  9. Demi Lovato

  10. Election Results

Other categories include:

News

  1. World Cup

  2. Hurricane Florence

  3. Mega Millions

  4. Election Results

  5. Hurricane Michael

People

  1. Demi Lovato

  2. Meghan Markle

  3. Brett Kavanaugh

  4. Logan Paul

  5. Khloe Kardashian

Politicians

  1. Stacey Abrams

  2. Beto O’Rourke

  3. Ted Cruz

  4. Andrew Gillum

  5. Alexandria Ocasio-Cortez

Movies

  1. Black Panther

  2. Incredibles 2

  3. Deadpool 2

  4. Avengers: Infinity War

  5. A Quiet Place

All of the 2018 Google top trending search lists can be found here.

Twitter CEO Acknowledges Suffering of Myanmar’s Rohingya Muslims

Twitter chief executive officer Jack Dorsey is under fire for failing to address the humanitarian crisis involving the Rohingya Muslims during his recent meditation retreat in Myanmar.

Dorsey published a thread on his Twitter page Sunday praising Myanmar’s people as “full of joy,” and heaping equal praise on the nation’s cuisine.

Critics angrily accused Dorsey of ignoring the plight of more than 700,000 Rohingyas who fled from northern Rakhine state into neighboring Bangladesh to avoid a scorched earth campaign launched by the military in response to a series of attacks by Rohingya militants on security outposts.

A special United Nations fact-finding mission said the military acted “with genocidal intent” against the Rohingyas, based on interviews with hundreds of Rohingyas, who revealed numerous atrocities, including gang rapes, the torching of entire villages and extrajudicial killings.

Dorsey responded Wednesday that he was “aware of the human rights atrocities and suffering in Myanmar,” and that he did not “intend to diminish them by not raising the issue.” But he conceded that he “could have acknowledged that I don’t know enough and need to learn more.”

Critics have also pointed the finger at Twitter for allowing virulent anti-Rohingya hate speech onto the site during the height of the crackdown. Dorsey said people can use Twitter “to share news and information about events in Myanmar, as well as to bear witness to the plight of the Rohingya and other peoples and communities.”

This is not the first time the Twitter boss has gotten into hot water during his overseas travels. Dorsey caused a stir in India last month when a photograph emerged of him holding a poster that read “Smash Brahminical patriarchy,” a reference to India’s highest Hindu caste.

 

US Intelligence Official: China’s Hacking Against US on the Rise

A senior U.S. intelligence official said on Tuesday that Chinese cyber activity in the United States had risen in recent months, targeting critical infrastructure in what may be attempts to lay the groundwork for future disruptive attacks.

“You worry they are prepositioning against critical infrastructure and trying to be able to do the types of disruptive operations that would be the most concern,” National Security Agency official Rob Joyce said at a Wall Street Journal cybersecurity conference.

Joyce, a former White House cyber adviser for President Donald Trump, did not elaborate. A spokeswoman for the NSA said Joyce was referring to digital attacks against the U.S. energy, financial, transportation and healthcare sectors.

The comments are notable because U.S. complaints about Chinese hacking have to date focused on espionage and intellectual property theft, not efforts to disrupt critical infrastructure.

China has repeatedly denied U.S. allegations it conducts cyber attacks.

Joyce’s remarks coincide with U.S. prosecutors preparing to unveil as early as this week a new round of criminal hacking charges against Chinese nationals. They are expected to charge that Chinese hackers were involved in a cyber espionage operation known as “Cloudhopper” targeting technology service providers and their customers, according to people familiar with the matter.

The U.S. Congress is looking into the allegations of increased Chinese hacking activity.

Senior officials from the Department of Homeland Security and Justice Department are scheduled to testify Wednesday morning at a Senate Judiciary Committee hearing on “China’s Non-Traditional Espionage Against the United States: The Threat and Potential Policy Responses.”

Protesters Disrupt US Fossil Fuel Event at Climate Talks

Protesters disturbed a U.S.-sponsored event promoting fossil fuels on the sidelines of U.N. climate change talks on Monday.

The event called “U.S. innovative technologies spur economic dynamism,” touting the benefits of burning fossil fuels more efficiently, infuriated campaigners and many government delegations who want the talks to focus on moving away from coal, oil and gas.

Some 100 protestors in the audience at the event seized a microphone and interrupted opening remarks by Wells Griffith, the man President Donald Trump appointed as senior director for energy at the National Security Council.

They waved banners and chanted: “keep it in the ground.”

“I’m 19 years old and I’m pissed,” shouted Vic Barrett, a plaintiff in the “Juliana vs U.S.” lawsuit filed in 2015 by 21 young people against the government for allowing activities that harm the climate.

“I am currently suing my government for perpetuating the global climate change crisis… Young people are at the forefront of leading solutions to address the climate crises and we won’t back down.”

Before the interruption, Griffiths said it was important to be pragmatic in dealing with climate change in a world still heavily reliant on fossil fuels.

“Alarmism should not silence realism… This administration does not see the benefit of being part of an agreement which impedes U.S. economic growth and jobs,” he said.

The conference, in Katowice, Poland, aims to work out the rules for implementing the Paris Agreement, the global pact on combating climate change.

The United States, the world’s top oil and gas producer, is the only country to have announced its withdrawal from the accord.

Google CEO to Tell Lawmakers Tech Giant Operates ‘Without Political Bias’

Google CEO Sundar Pichai is expected to tell members of the House Judiciary Committee Tuesday he runs the U.S. technology giant without political preference.

“I lead this company without political bias and work to ensure that our products continue to operate that way. To do otherwise would go against our core principles and our business interests,” according to remarks prepared for the hearing.

Republican committee members are expected to question Pichai about allegations Google is biased against conservative voices.

President Donald Trump is among those who have accused the company of censoring conservative content, tweeting in August Google is “RIGGED” and that “Republican/Conservative & Fair Media is shut out.”

Pichai’s testimony comes after he angered committee members in September by declining an invitation to testify about manipulation of online services by foreign governments to influence U.S. elections.

The CEO may also be questioned about the company’s planned “Dragonfly” project, a censored search engine for China.

An international group of 60 human rights and media groups submitted a letter Tuesday to Pichai, calling on him to abandon the project, warning that personal data would not be safe from Chinese authorities.

Reporters Without Borders, a signatory to the letter, said China ranked 176 out of 180 countries in its Freedom of the Press Index.

Google shut down its search engine in China in 2010 after China insisted on censoring search results.

Click to read Pichai’s remarks in their entirety.

Chinese Court Bans iPhone Models in Patent Dispute

A Chinese court has ordered a ban in the country on most iPhone sales  because of a patent dispute between iPhone maker Apple and U.S. chipmaker Qualcomm.

The Fuzhou Intermediate People’s Court granted Qualcomm’s request for preliminary injunctions against four subsidiaries of Apple, ordering them to immediately stop selling the iPhone 6S through the iPhone X that use older versions of Apple’s iOS operating system, according to a statement from Qualcomm Monday.

Apple said in a statement Monday its iPhones using newer operating systems remain on sale in China.

The Chinese court found Apple violated two of Qualcomm’s software patents involving resizing photographs and managing applications on a touch screen.

Apple shares fell Monday on the news.

“Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple said in its statement.

Qualcomm’s general counsel, Don Rosenberg, said in a statement Monday “Apple continues to benefit from our intellectual property while refusing to compensate us. These court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.”

China’s court decision is the latest legal action in a long-running dispute between the California tech giants.

Qualcomm has also asked regulators in the United States to ban several iPhone models over patent disputes, however U.S. officials have so far declined to do so.

Musk Suggests Tesla’s New Chairwoman Won’t Rein Him In

Tesla CEO Elon Musk dismissed the idea that the company’s new chairwoman can exert control over his behavior.

Robyn Denholm, an Australian telecommunications executive, was appointed chairwoman of Tesla’s board last month, replacing Musk as part of a securities fraud settlement with U.S. government regulators.

But Musk said “it’s not realistic” to expect Denholm to watch over his actions because he remains the electric car company’s largest shareholder.

“It’s not realistic in the sense that I am the largest shareholder in the company,” Musk said in an interview with CBS’ “60 Minutes,” broadcast Sunday evening, adding that a large percentage of shareholders support him and all he needs is about one-third of them.

“I can just call for a shareholder vote and get anything done that I want,” he said.

Musk, who owns about 20 percent of Tesla, gave up the chairman role under a settlement with the Securities Exchange Commission, which had charged the CEO with misleading investors in August with a tweet that said he had “funding secured” for taking the company private.

 The SEC settlement also required the company to vet Musk’s tweets and other comments about the company before they are released to the public. Musk also shrugged off that provision, saying none of his tweets have been censored so far and the company does not review his posts to determine beforehand whether they could potentially affect the company’s stock price.

“I guess we might make some mistakes. Who knows?” Musk said.

Musk said he does not respect the SEC, but when asked if he would obey the settlement, he said: “Because I respect the justice system.”

After the interview was aired, Tesla said in a statement that the company is complying with the SEC settlement. The part that requires pre-approval of communications that could affect the stock price technically must be in place by December 28, the company said.

Denholm’s appointment in November drew a mixed response from corporate governance experts, who praised her financial expertise but questioned her ability to carve out an independent path for a board that has been dominated by Musk.

Denholm has been on Tesla’s board for five years. She is the chief financial officer and strategy head at Telstra Corp. Ltd., Australia’s largest telecommunications company, but will step down from that company after a six-month notice period and work at Tesla full-time.

Musk told “60 Minutes” interviewer Lesley Stahl that he had hand-picked Denholm.

The SEC settlement would allow Musk to return as chairman after three years, subject to shareholder approval. Musk said he would not be interested.

“I actually prefer to have no titles at all,” Musk said.

Amid its CEO’s erratic behavior, Tesla delivered on promises to accelerate production of its pivotal Model 3 sedan, progress seen as essential to the company’s ability to repay $1.3 billion in debt due within the next six months.

The company also fulfilled a pledge to make money during the third quarter, and Musk has said he expects the company to remain profitable. He said Tesla would consider buying any plant that rival GM closes as part of a restructuring plan that could cost up to 14,000 jobs.

ITU: More Than Half World’s Population Using Internet

The International Telecommunication Union reports that for the first time in history, half of the global population is using the internet. A new report finds by the end of the year, 3.9 billion people worldwide will be online.

The report finds access to and use of information and communication technologies around the world is trending upwards. It notes most internet users are in developed countries, with more than 80 percent of their populations online. But it says internet use is steadily growing in developing countries, increasing from 7.7 percent in 2005 to 45.3 percent this year.

The International Telecommunication Union says Africa is the region with the strongest growth, where the percentage of people using the internet has increased from just over two percent in 2005 to nearly 25 percent in 2018.

The lowest growth rates, it says, are in Europe and the Americas, with the lowest usage found in the Asia-Pacific region.

In addition to data on internet usage, newly released statistics show mobile access to basic telecommunication services is becoming more predominant. ITU Senior Statistician, Esperanza Magpantay says access to higher speed mobile and fixed broadband also is growing.

“So, there is almost 96 percent of the population who are now covered by mobile population signal of which 90 percent are covered by 3G access. So, this is a high figure, and this helps explain why we have this 51 percent of the population now using the internet,” she said.

With the growth in mobile broadband, Magpantay says there has been an upsurge in the number of people using the internet through their mobile devices.

The ITU says countries that are hooked into the digital economy do better in their overall economic well-being and competitiveness. Unfortunately, it says the cost of accessing telecommunication networks remains too high and unaffordable for many.

It says prices must be brought down to make the digital economy a reality for the half the world’s people who do not, as yet, use the internet.

 

 

 

More Than Half the World’s Population is Using the Internet

The International Telecommunication Union reports that for the first time in history, half of the global population is using the internet. A new report finds by the end of the year, 3.9 billion people worldwide will be online.

The report finds access to and use of information and communication technologies around the world is trending upwards. It notes most internet users are in developed countries, with more than 80 percent of their populations online. But it says internet use is steadily growing in developing countries, increasing from 7.7 percent in 2005 to 45.3 percent this year.

The International Telecommunication Union says Africa is the region with the strongest growth, where the percentage of people using the internet has increased from just over two percent in 2005 to nearly 25 percent in 2018.

The lowest growth rates, it says, are in Europe and the Americas, with the lowest usage found in the Asia-Pacific region.

In addition to data on internet usage, newly released statistics show mobile access to basic telecommunication services is becoming more predominant. ITU Senior Statistician, Esperanza Magpantay says access to higher speed mobile and fixed broadband also is growing.

“So, there is almost 96 percent of the population who are now covered by mobile population signal of which 90 percent are covered by 3G access. So, this is a high figure, and this helps explain why we have this 51 percent of the population now using the internet,” she said.

With the growth in mobile broadband, Magpantay says there has been an upsurge in the number of people using the internet through their mobile devices.

The ITU says countries that are hooked into the digital economy do better in their overall economic well-being and competitiveness. Unfortunately, it says the cost of accessing telecommunication networks remains too high and unaffordable for many.

It says prices must be brought down to make the digital economy a reality for the half the world’s people who do not, as yet, use the internet.

 

 

 

Australia Passes World’s First Encryption-Busting Law

Security agencies will gain greater access to encrypted messages under new laws in Australia. The legislation will force technology companies such as Apple, Facebook and Google to disable encryption protections to allow investigators to track the communications of terrorists and other criminals. It is, however, a controversial measure.

Australian law enforcement officials say the growth of end-to-end encryption in applications such as Signal, Facebook’s WhatsApp and Apple’s iMessage hamper their efforts to track the activities of criminals and extremists.

End-to-end encryption is a code that allows a message to stay secret between the person who wrote it and the recipient. 

PM: Law urgently needed

But a new law passed Thursday in Australia compels technology companies, device manufacturers and service providers to build in features needed for police to crack those hitherto secret codes. However, businesses will not have to introduce these features if they are considered “systemic weaknesses,” which means they are likely to result in compromised security for other users.

The Australian legislation is the first of its kind anywhere.

Prime Minister Scott Morrison said the new law was urgently needed because encoded messaging apps allowed “terrorists and organized criminals and … pedophile rings to do their evil work.”

Critics: Law goes too far

However, critics, including technology companies, human rights groups, and lawyers, believe the measure goes too far and gives investigators “unprecedented powers to access encrypted communications.”

Francis Galbally, the chairman of the encryption provider Senetas, says the law will send Australia’s tech sector into reverse.

“We will lose some of the greatest mathematicians and scientists this country has produced, and I can tell you because I employ a lot of them, they are fabulous, they are well regarded, but the world will now regard them if they stay in this country as subject to the government making changes to what they are doing in order to spy on everybody,” he said.

Galbally also claims that his company could lose clients to competitors overseas because it cannot guarantee its products have not been compromised by Australian authorities.

Tech giant Apple said in October that “it would be wrong to weaken security for millions of law-abiding customers in order to investigate the very few who pose a threat.”

The new law includes penalties for noncompliance.

Top Democrat: Moscow Has Closed Cyber Gap With US

The top Democrat on the Senate Intelligence Committee warns the United States is being outgunned in cyberspace, already having lost its competitive advantage to Russia while China is rapidly closing in.

“When it comes to cyber, misinformation and disinformation, Russia is already our peer and in the areas of misinformation or disinformation, I believe is ahead of us,” Senator Mark Warner told an audience Friday in Washington.

“This is an effective methodology for Russia and it’s also remarkably cheap,” he added, calling for a realignment of U.S. defense spending.

Warner, calling Russia’s election meddling both an intelligence failure and a “failure of imagination,” strongly criticized the White House, key departments and fellow lawmakers for being too complacent in their responses.

As for China, Warner called Beijing’s cyber and censorship infrastructure “the envy of authoritarian regimes around the world” and warned when it comes to artificial intelligence, quantum computing and 5G mobile phone networks, China is “starting to outpace us on these investments by orders of magnitude.”

In contrast, the Democratic senator laid out a more aggressive approach in cyberspace, with the United States leading allies in an effort to establish clear rules and norms for behavior in cyberspace.

He also said it was imperative the U.S. articulate when and where it would respond to cyberattacks.

“Our adversaries continue to believe that there won’t be consequences for their actions,” Warner said. “For Russia and China, it’s pretty much been open season.”

Warner also delivered a stern message to social media companies.

“Major platform companies — like Twitter and Facebook, but also Reddit, YouTube and Tumblr — aren’t doing nearly enough to prevent their platforms from becoming petri dishes for Russian disinformation and propaganda,” he said. “If they don’t work with us, Congress will have to work on its own.”

The Trump administration unveiled a new National Cyber Strategy in September, calling for a more aggressive response to the growing online threat posed by other countries, terrorist groups and criminal organizations.

“We’re not just on defense,” National Security Adviser John Bolton told reporters at the time. “We’re going to do a lot of things offensively, and I think our adversaries need to know that.”

Top U.S. military officials have also said their cyber teams are engaging against other countries, terrorist groups and even criminal organizations on a daily basis.

Warner on Friday praised elements of the new strategy, particularly measures that have allowed the military to respond to attacks more quickly. But, he said, on the whole it is not enough, pointing to Trump’s willingness to “kowtow” to Russian President Vladimir Putin during their Helsinki Summit over Moscow’s election interference efforts.

“No one in the Trump administration in the intel [intelligence] or defense world doesn’t acknowledge what happened in 2016,” he said. “But the fact that the head of our government still [finds] it’s hard to get those words out of his mouth, is a real problem.”

Australia Anti-Encryption Law Rushed to Passage 

A newly enacted law rushed through Australia’s parliament will compel technology companies such as Apple, Facebook and Google to disable encryption protections so police can better pursue terrorists and other criminals.  

  

Cybersecurity experts say the law, the first of its kind globally, will instead be a boon to the criminal underworld by undermining the technical integrity of the internet, hurting digital security and user privacy.  

  

“I think it’s detrimental to Australian and world security,” said Bruce Schneier, a tech security expert affiliated with Harvard University and IBM.  

  

The law is also technically vague and seems contradictory because it doesn’t require systematic weaknesses — so-called “back doors” — to be built in by tech providers. Such back doors are unlikely to remain secret, meaning that hackers and criminals could easily exploit them. 

 

Back doors were central to a 1990s U.S. effort to require manufacturers to install a so-called “Clipper chip” into communications equipment so the government could listen in on voice and data transmissions. U.S. law enforcement officials, including Deputy Attorney General Rod Rosenstein, are again pushing for legislation that would somehow give authorities access to secure communications. 

 

The Australian bill is seen by many as a beachhead for those efforts because the nation belongs to the “Five Eyes” security alliance with the U.S., Britain, Canada and New Zealand.  

  

“There is a lot here that doesn’t make any sense,” Schneier said of the Australian bill. “This is a technological law written by non-technologists and it’s not just bad policy. In many ways, I think it’s unworkable.” 

 

A leading figure in cryptography, Martin Hellman of Stanford University, said it appears the bill would “facilitate crime by weakening the security of the affected devices.” 

Blow against ‘evil work’

 

The law won final legislative approval late Thursday, parliament’s final session of the year. Prime Minister Scott Morrison said it was urgently needed. 

 

“This was very important legislation to give police and security agencies the ability to get into encrypted communications,” he told Nine Network television. “Things like WhatsApp, things like that which are used by terrorists and organized criminals and indeed pedophile rings to do their evil work.” 

 

He noted that the opposition Labor Party “had to be dragged to the table” and backed the legislation as an emergency measure out of concern extremists could target Christmas-New Year crowds. 

 

Labor lawmakers said they want amendments passed when parliament resumes in February. Opposition leader Bill Shorten said he supported the current bill only because he could not “expose Australians to increased [national security] risk.” 

 

Duncan Lewis, director-general of the Australian Security Intelligence Organization, noted during hearings that extremists share encrypted messages that Australia’s main secret service cannot intercept or read. 

 

President Morry Bailles of the Law Council of Australia, a leading lawyers group, criticized the bill’s swift parliamentary journey though lawmakers knew “serious problems exist” with giving law enforcement “unprecedented powers to access encrypted communications.” 

 

Australian law enforcement officials have complained that the growth of end-to-end encryption in applications such as Signal, Facebook’s WhatsApp and Messenger and Apple’s iMessage could be the worst blow to intelligence and law enforcement capability in decades. Federal Police Commissioner Andrew Colvin said it hampers criminal investigations at all levels. 

Apple argument

 

But Apple, in comments filed with parliament in October, argued that “it would be wrong to weaken security for millions of law-abiding customers in order to investigate the very few who pose a threat.” 

 

The company’s iPhones, because of their strong encryption, are bulwarks of national security around the globe and help protect journalists, human rights workers and people living under repressive regimes. 

 

“The iPhone is national security infrastructure right now,” said Schneier. “Every Australian legislator uses the systems and devices that that law will target, and making them insecure seems like a really bad idea.” 

 

Apple also complained in October that the bill was “dangerously ambiguous.” 

 

One apparent contradiction confounds technologists. The legislation says the government “must not require providers to implement or build systemic weaknesses in forms of electronic protection (‘back doors’)” but also says it can “require the selective deployment of a weakness or vulnerability in a particular service, device or item of software on a case-by-case basis.” 

 

Technologists say that the mathematics underlying encryption and the way it’s encoded into software make it impossible to decrypt a single user’s communications without affecting all users. 

 

Eric Wenger, director of cybersecurity and privacy policy for the U.S. technology giant Cisco Systems, warned during debate on the bill that Australia could be at a competitive disadvantage if its data were not regarded as secure. 

 

Australia was a major driver of a statement agreed to at the Group of 20 leaders’ summit in Germany last year that called on the technology industry to provide “lawful and non-arbitrary access to available information” needed to protect against terrorist threats. 

Virginia Tech Students Unveil the House of the Future

Joseph Wheeler and his team of students and faculty from Virginia Tech University are convinced they are building the house of the future.

Judges at the recent Solar Decathlon Middle East agreed, awarding their future house first place in the December competition held in Dubai.

“We set it up in two days,” Wheeler told VOA. “All the other teams took the full two weeks of construction. Ours was set up in two days, generating power on the third day by the sun.”

The quick assembly time is just one thing that makes this home special. All of, literally all of it, comes in modules that are put together on-site into a fully functioning plug-and-play house.

Quick to assemble

“Our typical cartridge is 3-feet wide and about 12-feet long and no higher than 10-feet tall,” Wheeler said. “That cartridge contains the structure of the house. It’s got the structural walls, the insulation in it. But it’s got all the plumbing and the electrical system pre-installed — even the cabinetry, even the finishes. It is an incredibly high-tech home. In this case, well over a $1 million home but highly sophisticated.”

The home is fully wired, a test bed for everything digital. The home is also energy positive, which means — thanks to solar cells — it produces more energy than it consumes. This while being fully functional in the Dubai desert.

“You had to maintain a certain temperature range in the home. You had to keep all your appliances working and run them nonstop for an entire two weeks,” Wheeler said. “You had to charge an electric car from the excess power you generated in the house. You had to do laundry. You had to do dishes. I mean, you had to do all these things.”

They did it, and won.

​What’s next?

Far from being a one-of-a-kind home, Wheeler and his team say they fully expect this kind of home construction to quickly become the way homes are built in the future.

“We already have our phones, our cars, all of these pieces of technology that we bring with us that come with the expectation that they are smart,” Bobby Vance, a professor of architecture on the Virginia Tech team, told VOA. “But we go home and we kind of shut that all away.”

The team says this home is proof that [shutting it away] doesn’t need to be the case anymore.

“We envision one day in the very near future, you’re going to be able to go onto Amazon, and you’re going to be able to pick out your features — your appliances, the finishes you want in your kitchen and in your bathroom and in your bedroom, and you’ll place those in your shopping cart,” Wheeler said.

Wheeler and Vance said they are in talks with a number of homebuilding companies and are about to begin building a home that will be for sale sometime in the spring. They are also hoping to ramp up their production on a much larger scale to make their dream home a reality in the near future.

US and China Fight for Supremacy in 5G Technology

Many experts predict that the emerging 5G wireless technology will revolutionize the world’s economy. They say it holds the key to a smarter, more efficient, more connected and much wealthier world. But a recent congressional report outlines how China plans to use the transition to 5G and its access to billions of networked electronic devices for intelligence-gathering, sabotage and business deals. As VOA’s Jela de Franceschi reports, China’s aim is to put an end to US high-tech pre-eminence.

EU Steps Up Fight Against ‘Fake News’ Ahead of Elections

European Union authorities want internet companies including Google, Facebook and Twitter to file monthly reports on their progress eradicating “fake news” campaigns from their platforms ahead of elections next year.

Officials from the EU’s executive Commission unveiled the measures Wednesday as part of an action plan to counter disinformation in the lead up to the continent-wide vote in the spring.

The internet companies will have to submit their reports from January until May, when hundreds of millions of people in 27 EU member countries are scheduled to vote for 705 lawmakers in the bloc’s parliament.

The Commission singled out Russia.

“There is strong evidence pointing to Russia as a primary source of disinformation in Europe,” said Commission Vice President Andrus Ansip.

Many EU member countries have taken action to combat disinformation, but now “we need to work together and coordinate our efforts,” he said.

Russian authorities have repeatedly rejected Western accusations of sponsoring disinformation campaigns and described them as part of Western efforts to smear the country.

Other measures include a new “rapid alert system,” beefing up budgets, and adding expert staff and data analysis tools.

Google, Facebook, Twitter and browser maker Mozilla are the companies that so far have signed up to a voluntary EU code of conduct on fighting disinformation.

They’ll be expected to report on how they’re carrying out commitments they made under the code, including their work on making political advertising more transparent and how many fake and bot accounts they have identified and shut down. They’ll also provide updates on their cooperation with fact-checkers and academic researchers to uncover disinformation campaigns.

Google, which declined to comment, has tightened up requirements for political ads in the EU, including requiring information on who paid for them and for buyers to verify their identities. Facebook, which did not respond to a request for comment, did the same for political ads in Britain.

U.S. technology giants have committed millions of dollars, tens of thousands of employees and what they say are their best technical efforts into fighting fake news, propaganda and hate that has proliferated on their digital platforms.

“We need to see the internet platforms step up and make some real progress on their commitments,” said Julian King, the EU security commissioner. If there’s not enough headway, the Commission would consider other options including regulation, he said.

UK Releases Facebook Emails About Data Privacy

The British Parliament has released some 250 pages worth of documents that show Facebook considered charging developers for data access.

Parliament’s media committee seized confidential Facebook documents from the developer of a now-defunct bikini photo searching app as part of its investigation into fake news. The documents show internal discussions about linking data to revenue.

 

“There’s a big question on where we get the revenue from,” CEO Mark Zuckerberg said in one email. “Do we make it easy for devs to use our payments/ad network but not require them? Do we require them? Do we just charge a rev share directly and let devs who use them get a credit against what they owe us? It’s not at all clear to me here that we have a model that will actually make us the revenue we want at scale.”

 

The parliament’s Digital, Culture, Media and Sport Committee received the documents from app developer Six4Three, which had acquired the files dating from 2013-2014, as part of a U.S. lawsuit against the social media giant. The app developer is suing Facebook over a change to the social network’s privacy policies in 2015 that led Six4Three to shut down its app, Pikinis, which let users find photos of their friends in bathing suits by searching their friends list.

 

Facebook responded quickly, saying the release was misleading.

 

“The documents Six4Three gathered for their baseless case are only part of the story and are presented in a way that is very misleading without additional context,” the statement said. “We stand by the platform changes we made in 2015 to stop a person from sharing their friends’ data with developers. Like any business, we had many internal conversations about the various ways we could build a sustainable business model for our platform. But the facts are clear: we’ve never sold people’s data.”

 

Where Are Drones? Amazon’s Customers Still Waiting

Jeff Bezos boldly predicted five years ago that drones would be carrying Amazon packages to people’s doorsteps by now.

Amazon customers are still waiting. And it’s unclear when, if ever, this particular order by the company’s founder and CEO will arrive.

Bezos made billions of dollars by transforming the retail sector. But overcoming the regulatory hurdles and safety issues posed by drones appears to be a challenge even for the world’s wealthiest man. The result is a blown deadline on his claim to CBS’ “60 Minutes” in December 2013 that drones would be making deliveries within five years.

The day may not be far off when drones will carry medicine to people in rural or remote areas, but the marketing hype around instant delivery of consumer goods looks more and more like just that — hype. Drones have a short battery life, and privacy concerns can be a hindrance, too.

“I don’t think you will see delivery of burritos or diapers in the suburbs,” says drone analyst Colin Snow.

Drone usage has grown rapidly in some industries, but mostly outside the retail sector and direct interaction with consumers.

The government estimates that about 110,000 commercial drones are operating in U.S. airspace, and the number is expected to soar to about 450,000 in 2022. They are being used in rural areas for mining and agriculture, for inspecting power lines and pipelines, and for surveying.

Amazon says it is still pushing ahead with plans to use drones for quick deliveries, though the company is staying away from fixed timelines.

“We are committed to making our goal of delivering packages by drones in 30 minutes or less a reality,” says Amazon spokeswoman Kristen Kish. The Seattle-based online retail giant says it has drone development centers in the United States, Austria, France, Israel and the United Kingdom.

Delivery companies have been testing the use of drones to deliver emergency supplies and to cover ground quickly in less populated areas. By contrast, package deliveries would be concentrated in office parks and neighborhoods where there are bigger issues around safety and privacy.

In May, the Trump administration approved a three-year program for private companies and local government agencies to test drones for deliveries, inspections and other tasks.

But pilot programs by major delivery companies suggest few Americans will be greeted by package-bearing drones any time soon. United Parcel Service tested launching a drone from a delivery truck that was covering a rural route in Florida. DHL Express, the German delivery company, tested the use of drones to deliver medicine from Tanzania to an island in Lake Victoria.

Frank Appel, the CEO of DHL’s parent company, Deutsche Post AG, said “over the next couple of years” drones will remain a niche vehicle and not widely used. He said a big obstacle is battery life.

“If you have to recharge them every other hour, then you need so many drones and you have to orchestrate that. So good luck with that,” he told The Associated Press.

Appel said human couriers have another big advantage over drones: They know where customers live and which doorbell to ring. “To program that in IT is not that easy and not cheap,” he said.

Analysts say it will take years for the Federal Aviation Administration to write all the rules to allow widespread drone deliveries.

Snow, the CEO of Skylogic Research, says a rule permitting operators to fly drones beyond their line of sight — so critical to deliveries — is at least 10 years away. A method will be needed to let law enforcement identify drones flying over people — federal officials are worried about their use by terrorists.

While the rules are being written, companies will rely on waivers from the FAA to keep experimenting and running small-scale pilot programs.

“People like DHL and the rest of them (will say), ‘Hey, we can deliver via drone this parcel package to this island,’ but that’s not the original vision that Amazon presented,” Snow says.

There is a long list of FAA rules governing drone flights. They generally can’t fly higher than 400 feet, over many federal facilities, or within five miles of an airport. Night flights are forbidden. For the delivery business, the most biggest holdup is that the machines must remain within sight of the operator at all times.

In June, the National Academies of Sciences, Engineering, and Medicine said the FAA’s was being overly conservative in its safety standards for drones. The group said FAA’s risk-averse attitude was holding back beneficial uses, such as drones helping firefighters who are battling a fierce blaze.

Even before the criticism by the scientific panel, the FAA had begun to respond more quickly to operators’ requests for waivers from some rules, says Alan Perlman, founder of the Drone Pilot Ground School in Nashville, Tennessee. He said it is also getting easier and cheaper to buy liability insurance.

Bezos was mindful of the safety issues, telling “60 Minutes” back in 2013, “This thing can’t land on somebody’s head while they’re walking around their neighborhood.”

That didn’t stop him from predicting that drones fed with GPS coordinates would be taking off and making deliveries in “four, five years. I think so. It will work, and it will happen.”

To Perlman, the billionaire’s optimism made perfect sense.

“When you’re in his world you think more about technology than regulations, and the (drone) technology is there,” Perlman said.

Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft’s big bet on cloud computing is paying off as the company has surpassed Apple as the world’s most valuable publicly traded company. 

 

The software maker’s prospects looked bleak just a few years ago, as licenses for the company’s Windows system fell with a sharp drop in sales of personal computers. 

 

But under CEO Satya Nadella, Microsoft has found stability by focusing on software and services over the internet, or the cloud, with long-term business contracts.  

  

That 1990s personal-computing powerhouse is now having a renaissance moment, as it eclipses Facebook, Google, Amazon and the other tech darlings of the late decade. 

 

Apple had been the world’s most prosperous firm since claiming the top spot from Exxon Mobil earlier this decade. Microsoft surpassed Apple briefly a few times this week, but didn’t close on top until Friday, with a market value of $851 billion to Apple’s $847 billion. Microsoft hadn’t been at the top since the height of the dot-com boom in 2000.  

Apple’s plunge

  

Microsoft became a contender again in large part because Apple’s stock fell nearly 20 percent in November, while Microsoft hasn’t done any worse than the rest of the stock market. But the fact that it hasn’t done poorly reflects its steady focus on business customers in recent years. 

 

Microsoft lost its luster as people were shunning PCs in favor of smartphones. In 2013, PC sales plunged 10 percent to about 315 million, the worst year-to-year drop ever, according to research firms Gartner and IDC. It didn’t help that Microsoft’s effort to make PCs more like phones, Windows 8, was widely panned.  

  

But a turnaround began when the Redmond, Wash., company promoted Nadella as CEO in 2014. He succeeded Microsoft’s longtime CEO, Steve Ballmer, who initially scoffed at the notion that people would be willing to pay $500 or more for Apple’s iPhones.  

That bet paid off. Windows is now a dwindling fraction of Microsoft’s business. While the company still runs consumer-focused businesses such as Bing search and Xbox gaming, it has prioritized business-oriented services such as its Office line of email and other workplace software, as well as newer additions such as LinkedIn and Skype. But its biggest growth has happened in the cloud, particularly the cloud platform it calls Azure. Cloud computing now accounts for more than a quarter of Microsoft’s revenue, and Microsoft rivals Amazon as a leading provider of such services. 

 

Wedbush analyst Dan Ives said Azure is still in its early days, meaning there’s plenty of room for growth, especially considering the company’s large customer base for Office and other products. 

 

“While the tech carnage seen over the last month has been brutal, shares of [Microsoft] continue to hold up like the Rock of Gibraltar,” he said. 

 

Being less reliant on consumer demand helped shield Microsoft from holiday season turbulence and U.S.-China trade war jitters affecting Apple and other tech companies. 

 

President Donald Trump amplified those tariff concerns when he told The Wall Street Journal in a story published late Monday that new tariffs could affect iPhones and laptops imported from China. 

 

The iPhone maker had already seen its stock fall after reporting a mixed bag of quarterly results in early November amid fears about how the technology industry will fare in the face of such threats as rising interest rates, increased government regulation and Trump’s escalating trade war with China. 

Reporting change

 

Apple also spooked investors with an unexpected decision to stop disclosing how many iPhones it sells each quarter. That move has been widely interpreted as a sign that Apple foresees further declines in iPhone sales and is trying to mask that.  

  

While smartphones caused the downturn in personal computers years ago, sales of smartphones themselves have now stalled. That’s partly because with fewer innovations from previous models, more people choose to hold on to the devices for longer periods before upgrading. 

 

Daniel Morgan, senior portfolio manager for Synovus Trust, said Microsoft is outperforming its tech rivals in part because of what it’s not. It doesn’t face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices. Unlike Netflix, it’s not on a hunt for a diminishing number of international subscribers. And while Amazon also has a strong cloud business, it’s still more dependent on online retail.  

Rosenstein Calls for Tech Firms to Work With Law Enforcement

U.S. Deputy Attorney General Rod Rosenstein called on social media companies and technology firms Thursday to work with law enforcement to protect the public from cybercriminals.  

 

Speaking at a symposium on online crime, Rosenstein said that “social media platforms provide unprecedented opportunities for the free exchange of ideas. But many users do not understand that the platforms allow malicious actors, including foreign government agents, to deceive them by launching vast influence operations.” 

 

He said it was up to the companies to “place security on the same footing as novelty and convenience, and design technology accordingly.”  

 

He warned that if the technology sector failed to do so, government would have to step in.  

 

“I think the companies now do understand if they do not take it upon themselves to self-regulate — which is essentially the theme of my talk today — they will face the potential of government regulation,” he said. 

Extortion scheme

 

Rosenstein’s remarks came a day after the Justice Department charged two Iranian hackers in connection with a multimillion-dollar cybercrime and extortion scheme that targeted government agencies, cities and businesses. 

 

Rosenstein said many tech companies are willing to work with law enforcement and to prevent the use of their platforms to spread disinformation. 

 

But he said that “some technology experts castigate colleagues who engage with law enforcement to address encryption and similar challenges. Just because people are quick to criticize you does not mean that you are doing the wrong thing.” 

 

U.S. law enforcement officials have long been pushing tech companies to make it easier for them to access information on private devices such as cellphones and social media accounts. But most firms have resisted, citing privacy of the users.  

 

Rosenstein said data encryption practices were a “significant detriment to public safety.”  

 

“Improvements in the ability to investigate crime and hold perpetrators accountable must match the pace at which technology is making crimes easier to commit and more destructive,” Rosenstein said.