Enterprise

San Miguel Corporation raises white flag, to sell telco assets to Globe and PLDT

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Life moves fast, especially in the Philippine telecommunications industry. Earlier this year, the talk of the town was a potential joint venture between Australia’s Telstra and local conglomerate San Miguel Corporation (SMC), which would have brought an end to the telco duopoly of the Philippine Long Distance Telephone Company (PLDT) and Globe Telecom.

We all know how that turned out — how the ray of hope was shuttered just as quickly as it surfaced. And now, the possibility of SMC, a diversified firm with interests that stretch from food and beverage to oil and infrastructure, providing mobile and internet services is all but kaput.

A report from the Philippine Daily Inquirer today claimed SMC is expected to sell its telecommunications assets to PLDT and Globe in a blockbuster joint deal worth $1 billion. The agreement could be signed off this morning, the paper’s source added. You may recall a similar incident in 2011, when PLDT bought then-rival Sun Cellular from tycoon John Gokongwei.

The highlight of the agreement is the 700MHz spectrum PLDT and Globe stand to acquire, should the deal go through. The wireless spectrum is highly valued for its ability to cover larger areas and provide better cellular coverage inside buildings.

Globe had previously launched a full-on campaign with the promise to “improve internet speed in the country” to get the issue of ownership and distribution of the spectrum in the public discourse, but to no effect. PLDT echoed the same call. Now that they’re getting what they wanted all along, customers should hold them accountable to their words. Because, as anyone in the archipelago knows, delivering quality internet services at reasonable rates should be the top priority of any carrier, with or without the fire of competition.

[irp posts=”7155″ name=”Cyber attacks take down half the Internet”]

Source: Philippine Daily Inquirer
Image credit: Wikimapia

Enterprise

US government will be banned from using Huawei and ZTE tech

Not a total ban, though

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The president of the United States has just imposed a major ban against two Chinese tech giants, Huawei and ZTE, from working with the US government. The ban is a component of the Defense Authorization Act which US President Donald Trump has just signed after months of discussions.

We first heard news about the bill earlier this month followed by reports of Huawei spying on people and ZTE getting banned after getting accused of selling merchandise to US rivals. The fiasco hindered Huawei phones from getting sold through US carriers. ZTE, on the other hand, was saved by Trump as confirmed by his tweet.

In the end, though, both Chinese companies now have the same fate. The US Congress worked on a measure that will essentially ban the US government and soon-to-be allies from using components and availing services from Huawei, ZTE, and a number of other Chinese communications companies.

The ban, which will go into effect over the next two years, doesn’t completely cut the ties of the US with Huawei and ZTE. The Chinese companies are not allowed to be part of any “essential” or “critical” systems of the US government, but they can still work with the US government as long as they will not be used to route or view data.

Huawei is not happy about the ban, of course, and calls it a “random addition” to the defense bill which is “ineffective, misguided, and unconstitutional.” The company also said that the ban will increase cost for consumers and businesses.

Via: The Verge

SEE ALSO: ZTE faces ban from using Qualcomm, Android on their phones

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Samsung falls to less than one percent market share in China

Might pull out of Chinese market by next year

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Recently, Samsung launched the Galaxy Note 9 to worldwide acclaim. Ironically, despite the positive response, the company is still slogging through one of its most dismal years to date. Previously, the Galaxy S9 opened to tepid, abysmal sales.

Now, with the dawn of more capable competitors, Samsung is falling more drastically than ever before. Formerly a stalwart in China, the company has now fallen to less than one percent market share in one of the world’s biggest markets.

Just a few years ago, Samsung’s phones captured a comfortable market share lead at 20 percent. The huge lead accurately represented Samsung’s grip on the market at the time.

However, with the recent developments (or lack thereof), the balance of power is steadily shifting. This year, gigantic (but more affordable) outings from smaller companies — Huawei, OnePlus, OPPO, Xiaomi — have taken the market by storm.

Besides the downpour of competitive rivals, Samsung has cited the decline of the smartphone market at large as a reason. From the lack of revolutionary features, adoption and upgrade rates have declined, causing an overall plateauing of phone sales.

According to Reuters, Samsung is considering drastic measures to alleviate the slump in sales. Most radically, the company might pull out of the Chinese market entirely.

Specifically, the plan affects Samsung’s Tianjin factory in Northern China. On its own, the facility manufactures 36 million phones per year. Additionally, Samsung has other plants nearby in Huizhou and Vietnam.

Currently, Samsung officials have yet to decide on the Chinese market’s ultimate fate. However, the pull-out is still a tempting move to improve efficiency.

Regardless, Samsung will remain as a global powerhouse even if it withdraws from the Chinese market. If anything, the move will dictate the company’s (and its Chinese competitors’) trajectory for the future.

Besides Samsung, Apple has also fared similarly, bowing out to Chinese brands in multiple markets.

SEE ALSO: Samsung Galaxy Note 9: Price and pre-order details in the Philippines

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EU might force Apple to abandon the Lightning cable

Voting yes for a USB-powered iPhone

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Recently, the EU has gone on a mass crusade against the world’s biggest tech firms. To the benefit of the region’s consumers, the European Commission is trying to create a universally competitive industry.

Over the past few months, they have hammered in guilty verdicts against big companies for stifling competition. After fining giants like Google and ASUS, the region has now set its sights on Apple.

In 2009, the EU has urged tech firms to create a more universal standard for smartphone charging. At the time, fourteen companies including Apple and Samsung signed the pledge.

However, as you can probably guess, these efforts fell terribly flat. Companies have still segmented the industry into a plethora of charger options — micro-USB, USB Type-C, and Lightning, for starters.

Irked by the lack of results, EU Commissioner of Competition Margrethe Vestager has taken matters into her own hands. The Commission is researching if additional regulations can rescue the industry.

Currently, the EU is concerned over the rising number of wasted chargers and cables. Because of the different standards, users are forced to shelve their old cables to accommodate phone upgrades.

Among the affected companies, Apple has created the most disparity. Notoriously, the company has stuck with its own exclusive cables. Whereas its competitors have relied on USB standards, Apple has used FireWire, the dock connector, and the Lightning cable.

Apple’s exclusivity creates an advantageous but unfair revenue stream for the company. Users are forced to source their cables from the company directly (or indirectly through licensed products).

As such, any future EU regulations will likely affect Apple the most. From a consumer’s standpoint, Apple switching to USB will please users the most.

Even without the regulation, a USB-powered iPhone is still plausible. Previously, Apple had already considered a break from Lightning before releasing the iPhone X.

SEE ALSO: Battle of the reversibles: USB-C vs Lightning connector

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