Biometric adoption needs to speed up to exploit the digital bonanza

The idea of biometric identification is not new, though to realise the full benefits of the digital economy, adoption needs to increase and move away from hardware.

Speaking at AfricaCom, Barbara Iyayi, Chief Growth Officer for Element, didn’t so much attempt to justify biometric identification and authentication, but pushed for wider and more rapid adoption. As a disclaimer, it should be worth noting that Iyayi is pitching the case for her business to make more money, but there were a few useful points to be taken away from the presentation.

First of all, let’s set the scene. The world is becoming increasingly digital and companies are spending less time in front of their customers. This of course has its benefits, but at the same time a connection is lost with the customer. This connection not only depersonalises the situation, but also makes it difficult to track customers. As Iyayi pointed out, if you don’t know who your customer is, you’re in a pretty weak position.

This is not a new point, but occasionally it is worth restating the obvious. There are of course various means to identify and authenticate customers, however, there isn’t a perfect scenario right now. Some of the ways in which customers are being identified and authenticated is through the SIM or social media accounts. And here is the issue, neither of these routes are immune from abuse. If your SIM has been used to authenticate, losing your phone could mean losing your digital life, while social media accounts are all too easy to fake; we’ve all watched an episode or two of Catfish.

This is where biometrics are increasingly playing a role. Every new phone can now be unlocked by facial recognition or the users finger print, which is specific to that individual, but this is local to the device. The identifiers are locked into the hardware and not transportable to other areas of the digital economy. Iyayi’s pitch for her business is on the software side of things, removing the authentication from devices and creating interoperability throughout the entire digital economy. Again, it is worth noting this was essentially a sales pitch at the conference, though that shouldn’t take away from a very valid point.

Digital profiles are already being created dependent on the services you use online, your financial and employment histories and also your interests. However, without linking these profiles back to an individual, the system is open to abuse, and the accelerated value of the digital economy cannot be realised. This is where biometrics, in a software world, can play a role.

It is a simple idea, though adoption might not be as high as some would hope. The other issue which needs to be addressed is user acceptance of biometric identification and authentication. While Iyaya played down any resistance to the technology, we’re not as convinced. Digital natives might well be open to biometrics, which is of course promising for the future, but what about the generations who existed before the always-connected era. Perhaps anyone from the age of 40 upwards would be sceptical about such a scheme. It is more invasive that identifiers of previous generations, and there will of course be Big Brother conspiracy theorists out there…

Stories from some of the more freedom-adverse countries such as China will not help. Here, the government has been collecting identification data on individuals for what most would only assume are monitoring ambitions, though India has also been attempting to build its own database for less nefarious reasons. Some generations might be sceptical, though the same could have been said about texting taking over as the defacto means of communicating. As the younger generations get older, such ideas are adopted as the norm.

This will probably be the case for biometric identification and authentication. Soon enough, biometrics will penetrate such areas as payments, though for this to happen there needs to be more openness. Iyayi is right, biometrics are crucially important for the digital economy to reach the promised peaks.

MTN unveils its first OTT service and roadmap for digital fortunes

MTN has announced the acquisition of music streaming platform Simfy at AfricaCom and outlined the future of the telco, which doesn’t look very much like a telco anymore.

This is of course a slightly unfair statement, as the mission of connecting the unconnected millions across Africa will continue to be a top priority for the business, though CEO Rob Shuter highlighted the team have much bigger ambitions when it comes to maintaining relevance in the digital economy. The Simfy acquisition is just one step in the quest to morph MTN into a digital services business.

Speaking during the keynote sessions at AfricaCom, Shuter highlighted there are still major challenges when it comes to connectivity in Africa, though telcos need to look deeper into how these challenges can be solved. The most simple roadblock is a lack of connectivity across the continent, but when networks are being deployed, telcos need to understand how consumers are engaging with the connected world. A good place to look first and foremost is China.

“Our mission is not just about connecting people, but understanding what the users want to use the internet for, so we can build networks properly,” said Shuter. “When we look at China today, that will be Africa in the next two to three years.”

Looking at how consumers use connectivity in China starts to paint a picture. Media takes up 17% of time of devices, while communications and social media takes up 33%. Shopping and payments account for 16%, and gaming takes up 11%. For MTN to be relevant in the future, Shuter has ambitions to create a presence in each of these segments.

To capitalise on payments and shopping, the mobile money offering will be revamped and launched in South Africa during Q1 2019. Nigeria has also just changed its regulatory regime when it comes to mobile money, and Shuter said the team would be applying for a payments service license over the next month, with plans to launch a mobile money offering in Q2 2019. This is a big moment for MTN, as while the mobile money offering has been present for some time, this is the first venture into its two largest markets.

For Shuter, creating a digital services company has two components. Using connectivity as a platform, a comprehensive partnerships programme has been launched in four main verticals (communications, rich media services, mobile financial services and eCommerce) with the team working with various established players in the ecosystem, but MTN also have to push itself further up the value chain and offer its own competitive products. This is where Simfy fits in.

As a music subscription product, customers will be able to merge both connectivity and music payments onto the same bill, but Simfy will not be incorporated into the greater MTN business from an operational perspective. Simfy will continue to operate a separate entity, allowing it to maintain the OTT environment. Shuter highlighted he would not want the corporate and operational structure of a telco, completely unsuited to the OTT landscape, to impact Simfy’s operations.

On the financial services side, the team will make use of MTN’s scale to establish a more prominent footprint. With a user base of 24 million already, this number seems to be doubling every 18 months. The significantly larger mobile subscription base can be used to springboard the mobile money business north, as Shuter highlighted the distribution network is key. When customers come to top-up their airtime or data allowance, they can also deposit cash into digital wallets. It is convergence at its finest, though leaning on Orange’s ambitions to diversify out of the traditional telco playground.

There are still huge challenges from a connectivity perspective across the African continent, but MTN seems to recognise there is more to be excited about than simply collecting subscriptions. If the Simfy acquisition is to be taken as evidence of MTN’s future roadmap, this looks like it could be a case of convergence done right, not allowing the cumbersome, archaic telco machine to muddy the OTT waters.

Telco competitors aren’t other telcos anymore

It might seem like an unusual statement to make, but if the fortunes of the fourth industrial revolution are going to be realised, telcos need to stop bickering between themselves.

The new competitive landscape seems like a very counter-intuitive one. The status quo for years has been to capture as many subscriptions as possible, building profits on top of connectivity, though the digital economy is so much more. This might seem like a very obvious statement to make, though the dangers are seemingly more apparent on the African continent, with the OTTs and cloud players a larger threat to a telco than other telcos.

This was a fear which emerged during the opening panel sessions at the AfricaCom 2018 show in Cape Town. Connectivity is not enough, especially on a continent where ARPU can be as low as $4 a month. There is of course demand for more data connectivity, but where is the value when you actually deploy data networks? According to Hind Elbashir, Group Chief Strategy Officer at Sudetal, not in the connectivity business.

“The OTTs have spread their wings, while we are continuing to compete in a very small place,” said Elbashir.

While the telcos are laying the foundations for the digital economy in Africa, they are continuing to focus efforts on traditional business models focused around connectivity and subscriptions. This is a limited section of the value chain, becoming increasingly crowded, and built on the race to the bottom. Value will become increasingly difficult to find and profitability will erode as the telcos fight for customers on pricing. However, the fourth industrial revolution is creating value elsewhere in the ecosystem.

Nic Rudnick, CEO of Liquid Telecom, echoed Elbashir’s point. While the African telcos are building the networks and spending all their time on securing more subscriptions, foreign players in Silicon Valley or China are swooping in to collect the more lucrative rewards at the top of the digital value chain. The OTTs are capitalising on the vast expenditures outlaid by the telcos and stealing the new value which is being created through enhanced connectivity.

But why is this more of a risk in Africa than anywhere else? That is a very simple question to answer; Africa does not have anywhere near the same scale or penetration of connectivity infrastructure as in the developed markets, while ARPUs are significantly lower, adding more pressure to the bottom line. With African telcos having to spend more CAPEX to deploy infrastructure to realise the digital economy than European or North American counterparts, while simultaneously collecting smaller tariffs off customers, it cannot afford to lose the added value created in other areas of the ecosystem.

This is a change in the industry’s landscape which has been coming for years, but the telcos seem to be struggling to capitalise on. The rules are shifting with the cloud and OTT players securing the lion’s share of newly created revenues without assuming the risk and vast expenditure of network deployment. Not only will the telcos have to transform culture and operations to reverse this trend, but also create new relationships with competitors.

Elbashir pointed to joint investments in infrastructure to reduce financial exposure and allow telcos to spread CAPEX further. Multiple joint ventures would allow for quicker expansion of network infrastructure, increasing the connectivity footprint of the telcos, but also allow talent to focus on creating strategies and products to capitalise on the created value in the digital ecosystem.

Collaboration is a key word, though we all know how difficult it can be to create. However, telcos should recognise the greatest threat is not from other telcos who are fighting for subscriptions, but the OTTs and cloud players who so easily secure revenues in segments of the ecosystem the telcos are struggling to exploit. The threat from the OTTs is a simple one, but if it is not addressed, growth is going to be impossible.

This is a new market dynamic, and while the OTTs might be a threat to all telcos around the world, it seems to be more pronounced in Africa.

Privacy International lines up US firms for GDPR breaches

UK data protection and privacy advocacy group Privacy International has submitted complaints to European watchdogs suggesting GDPR violations at several US firms including Oracle, Equifax and Experian.

The complaints have been submitted to regulators in the UK, Ireland and France, bringing the data broker activities of Oracle and Acxiom into question, as well as ad-tech companies Criteo, Quantcast and Tapad, and credit referencing agencies Equifax and Experian. The complaints are specifically focused on the depth of personal data processing, which Privacy International believes violates Articles five and six of the General Data Protection Regulation (GDPR).

“It’s been more than five months since the EU’s General Data Protection Regulation (GDPR) came into effect,” a Privacy International statement read. “Fundamentally, the GDPR strengthens rights of individuals with regard to the protection of their data, imposes more stringent obligations on those processing personal data, and provides for stronger regulatory enforcement powers – in theory. In practice, the real test for GDPR will be in its enforcement.

“Nowhere is this more evident than for data broker and ad-tech industries that are premised on exploiting people’s data. Despite exploiting the data of millions of people, are on the whole non-consumer facing and therefore rarely have their practices challenged.”

The GDPR Articles in question relate to the collection and processing of information. Article Five dictates a company has to be completely transparent in how it collects and processes information, but also the reasons for doing so. Reasonable steps must be taken to ensure data is erased once the purpose has been fulfilled, this is known as data minimisation. Article Six states a company must seek consent from the individual to collect and process information for an explicit purpose; broad brush collection, storage and continued exploitation of data is being tackled here.

In both articles, the objective is to ensure companies are being specific in their collection of personal information, and that it is utilised in a timely manner before being deleted once it has served its purpose. These are two of the articles which will hit the data-sharing economy the hardest, and it will be interesting to see how stringently GDPR will be enforced if there is any evidence of wrong-doing.

This is where Privacy International is finding issue with the firms. The advocacy group is challenging the business practises on the principles of transparency, fairness, lawfulness, purpose limitation,

data minimisation, accuracy and integrity and confidentiality. It is also requesting further investigations into Articles 13 and 14 (the right to information), Article 15 (the right of access), Article 22 (automated decision making and profiling), Article 25 (data protection and by design and default) and Article 35 (data protection impact assessments).

While GDPR sounds very scary, the reality is no-one has been punished to the full extent of the regulation yet. This might be because every company has taken the guidance on effectively and is operating entirely within the legal parameters, though we doubt this is the case. It is probably a case of no-one being caught yet.

The threat of a €20 million fine, or one which is up to 3% of a business’ total revenues, is nothing more than a piece of paper at the moment. If there is no evidence or fear authorities will punish to the full extent of the law, GDPR doesn’t act as much of a protection mechanism or a deterrent. When a genuine violation of GDPR is uncovered, Europe needs to bear its teeth and demonstrate there will be no breathing room.

This has been the problem for years in the technology industry; fines have been dished out, though there has been no material impact on the business. The staggering growth of revenues in the industry has far exceeded the ability of regulators to act as judge and executioner. Take the recent fines for Apple and Samsung over planned obsolescence in Italy. The $10 million and $5 million fines for Apple and Samsung would have taken 20 and 16 minutes respectively to pay off. This is not good enough.

Regulators now have the authority to hold the suspect characters in the industry accountable for nefarious actions concerning data protection and privacy, but it has to prove itself capable of wielding the axe. Until Europe shows it has a menacing side, nothing will change for the better.

Facebook referred to EU over suspect tracking methods

The UK’s Information Commissioners Office has referred an investigation into Facebook to the EU’s lead data protection watchdog over concerns about how the internet giant is tracking users.

The investigation, which was initially launched in May 2017, is primarily focused on the Cambridge Analytica scandal, though this might only be the tip of the iceberg for Facebook. Aside from fining the social media giant, the ICO has referred the case to the Irish Data Protection Commission, as the lead supervisory authority for Facebook under the General Data Protection Regulation (GDPR). As you can see below, Cambridge Analytica might only be the beginning of Facebook’s headache.

“Since we began, the scope of our investigation has extended to 30 organisations, we have formally interviewed 33 individuals and are working through forensic analysis of 700 terabytes of data,” said Information Commissioner Elizabeth Denham. “In layman’s terms, that’s the equivalent of 52 billion pages.

“Now I have published a report to Parliament that brings the various strands of our investigation up to date. It sets out what we have found and what we now know. But it is not the end. Some of the issues uncovered in our investigation are still ongoing or will require further investigation or action.”

Those who practise the dark arts of hyper-targeted advertising rarely give explanations as to how what information is being specifically held and how much of a detailed picture is being built up through primary sourced data and third-party sources. Few have a genuine understanding of the complexities of these advertising machines, though this is the foundation of various investigations. Transparency is the key word here, with many wanting the curtain to be pulled aside and the mechanics explained.

The fine is clear evidence the ICO is not happy with the state of affairs, though continuation of the investigation and referral to the EU overlords suggests there are more skeletons to be uncovered in-between Zuckerberg’s V-neck jumpers and starch ironed chinos.

“We have referred our ongoing concerns about Facebook’s targeting functions and techniques that are used to monitor individuals’ browsing habits, interactions and behaviour across the internet and different devices to the to the IDPC,” said Denham.

The initial focus of the investigation might have been political influence, though the more details which emerge, the less comfortable pro-privacy bureaucrats in Brussels are likely to feel. Regulating the slippery Silicon Valley natives has always been a tricky job, but with the Facebook advertising machine becoming increasingly exposed, the rulebook governing the data sharing economy might well be in need of a refresh.

Apple shares fall 5% on weak forecast

With Apple pointing the finger at fluctuating currency, poor performance in emerging markets and supply issues, its busiest quarter might not be as busy as investors had hoped.

While CEO Tim Cook has defended the soundness of the supply chain, worries over whether the business can keep up with demand over the final quarter leading into Christmas seem to have spooked investors. Combined with warnings over performance in emerging markets as well as volatile currencies around the world, the team has stated it might miss guidance over the next three months, sending share price down 5% in afterhours trading.

“The emerging markets that we’re seeing pressure in are markets like Turkey, India, Brazil, Russia,” said Cook. “These are markets where currencies have weakened over the recent period. In some cases, that resulted in us raising prices and those markets are not growing the way we would like to see.”

India should be seen as quite a worry for the iChief’s as while the country has been undergoing its own digital revolution over the last 18 months, Apple seem to be missing out on the biggest rewards. With India now being the second-largest smartphone market in the world, but with half the penetration of China, the opportunities are clear. Despite attention from Apple, it’s opening new production facilities and shops across the country, according to data from Canalys it is yet to break into the top-five smartphone brands.

Shipments in India across the most recent quarter dropped by 1%, though Xiaomi grew 31.5% year-on-year to claim the number on spot, at the expense of Samsung, where shipments dropped 1.6%. Vivo, Oppo and Micromax complete the top five, while the ‘others’ saw shipments decrease 34%. The Chinese brands seem to have found the right recipe to appeal to the Indian user, while Apple is still searching for the sweet spot.

“To give you a perspective in of some detail, our business in India in Q4 was flat,” said Cook. “Obviously, we would like to see that be a huge growth. Brazil was down somewhat compared to the previous year. And so I think, or at least the way that I see these, is each one of the emerging markets has a bit of a different story, and I don’t see it as some sort of issue that is common between those for the most part.”

One market where this isn’t the case is China, with the business growing 16% year-on-year. On the money side of things, it certainly is a different story. Total revenues across the business grew to $62 billion, an increase of 20% over the same period in 2017, though guidance is not as positive. Cook expects Apple to pocket between $89 billion and $93 billion over the next three months, though Wall Street has generally been hoping $93 billion would be the bottom end of the guidance.

Looking at the explanation, CFO Luca Maestri has pointed to four areas. Firstly, the team have launched products in reverse order compared to last year. Secondly, with many international currencies depreciating against the US dollar, Maestri anticipates a $2 billion headwind as a result. Thirdly, due to the number of products Apple has pumped into the market, the team is nervous about supply/demand. And finally, at the macroeconomic level in some emerging markets consumer confidence is not as high as it was 12 months ago.

Heading back to the positives, Apple is making more money now than it was a year ago. Despite there being no shipment growth in any of the major product lines (iPhone was flat year-on-year, iPad was down 6% and Mac was down 2%), Apple is still a money making machine. iPhone revenue increased 29% thanks to ridiculously high unit costs, while the services business was up 17%. This is an area which will be of significant interest to investors, as there is only so much Cook and co. can increase the price of iPhones to compensate for flat growth.

As part of the services division, the App Store has been trundling along positively, though with companies like Netflix and Fortnite stating they would be circumnavigating both the App Store and Google Play, all involved will hope this does not encourage others to do the same. Cook pointed out that the largest developer only account for 0.3% of revenues at the App Store, losing one or two won’t matter, but if the trend spreads too far the product might find troubling times ahead.

Overall, Apple is still in an incredibly dominant position, though the inability to capitalise on opportunities in the developing markets should be a slight worry.

Apple Financials

Apple Products

Share price drops for both Amazon and Google after quarterlies

Despite reporting quarterly numbers most companies would kill for Amazon and Alphabet share prices dropped by 8.6% and 5% respectively due to investor disappointment.

More than anything else it shows the high demands of investors but also the confidence which is being placed in the internet giants. With Amazon reporting a revenue increase of 29% to $56.6 billion for the quarter, while Google parent company Alphabet reported $33.7 billion, up 21%, the expectations are certainly high.

Starting with Amazon, the revenue increase of 29% paled in comparison to the more than 10X lift in net income to $2.9 billion. While this would be a regular cash bonanza for most companies around the world, sales guidance between $66.5 billion and $72.5 billion for final quarter were lower than what the market wanted to hear. The more coy guidance for Amazon’s busiest quarter resulted in the 8.6% drop, after confidence during the day sent stock up 7%.

In Google’s HQ the story was slightly different. Revenues of $33.7 billion, up 21%, and net income of $9.1 billion, compared to $6.7 billion in 2017. Shares were down 5%, following a 4.4% rise across the day, after sales figures did not hit the expected heights. The last three months have been a tough period for investors to swallow with various scandals dropping share price by 8.8% over the last three months.

Of course, it wasn’t all bad news. The cloud unit for both businesses is continuing to rack up revenues with AWS up 45% to $6.7 billion across the quarter and Google’s other revenues segment, which features cloud up 29% to $4.6 billion. Encouragingly for both, Gartner estimates the worldwide public cloud services market is projected to grow 17% percent in 2019 to total $206.2 billion, up from $175.8 billion in 2018. IaaS is set to get the largest boost, forecast to grow 27.6% in 2019 to reach $39.5 billion. With so many businesses around the world citing a cloud-first approach, it’s amazing to think only 10% of workloads have been moved into the cloud.

The relatively new venture into the world of smart speakers and virtual assistants is proving to be a continued success story as well. For Amazon, the number of Alexa-compatible smart home devices has quintupled to more than 20,000 devices from 3,500, while the team have also started to launch new products such as a smart home security solution (Alexa Guard), and Alexa is expanding what it can give updates on as well, such sports with predictions, live streams, cooking instructions and maths homework. For Google. the Assistant has expanded to 20 languages and 76 countries, while the devices with screens will help YouTube business, which is attempting to blend in more direct response adverts as well as branding to its proposition.

There will of course be short-term wins for the pair in this space, but this is a long-term bet. Once the idea has been adopted by the mass market, the opportunities to make money through third-party relationships will be quite remarkable. Search revenues can be moved into the voice domain (effectively anywhere) and look how profitable search has been for Google. This is only one way to make money, but both Amazon and Google are putting themselves in a remarkably strong position for the future.

Both businesses might have suffered in the last 24 hours but they are still in incredibly dominant positions. The cloud units still have incredible growth potential, while the smart speaker ecosystem is starting to become a reality. For Google, the is delivering amazing profitability but sales growth does seem to be slowing slightly. Amazon is delivering on the North American market but the business is not as effective on the international scene, posting a loss of $385 million.

There are issues, but these are nothing compared to the billions being raked in and the growth potential in new, lucrative markets.

Facebook bags former UK Deputy PM as lobbyist in chief

Former MP Sir Nick Clegg has joined Facebook to take over as VP of Global Affairs and Communications. In other words, it’s chief lobbyist.

The appointment is certainly an interesting one. Having led the Liberal Democrats (the political form of irrelevance) from 2007 to 2015, and served as Deputy Prime Minister in the coalition government under Prime Minister David Cameron, Clegg was defeated in his constituency of Sheffield Hallam by the Labour representative.

“Having spoken at length to Mark and Sheryl over the last few months, I have been struck by their recognition that the company is on a journey which brings new responsibilities not only to the users of Facebook’s apps but to society at large,” said Clegg in a Facebook post. “I hope I will be able to play a role in helping to navigate that journey.”

Based out of California, the hire could be an clever move for Facebook. Clegg, despite being as inspirational as scrambled eggs, has plenty of experience of the political ping pong, most crucially as a Member of the European Parliament for East Midlands between 1999 and 2004, and a position as a European Commission trade negotiator. Being one of the most stringent regulatory markets on the planet, having Clegg’s European experience is certainly a bonus.

The issue which Facebook might face in hiring Clegg is the weight which he carries. Being leader of the Liberal Democrats and Deputy Prime Minister might look good to US corporates on the CV, but the reality might be a bit different. The Liberal Democrats are a featherweight presence in British politics, and while Clegg did lead the party to the weighty presence of 57 seats in the House of Commons, he also led them off a cliff to eight in the following General Election during 2015. Clegg left politics rather sheepishly and without leaving any real legacy or memory.

Unfortunately for Facebook, the UK is one of the markets where Clegg will be most needed. With CEO Mark Zuckerberg under threat of a summons after repeatedly ignoring calls to appear before a Parliamentary Select Committee, someone needs to calm the UK waters. With the neither the Conservative or the Labour party holding in him in particularly high regard, it might be more of a beg mission than lobbying.

“Our company is on a critical journey,” Facebook COO Sheryl Sandberg wrote in a separate post. “The challenges we face are serious and clear and now more than ever we need new perspectives to help us though this time of change.

“The opportunities are clear too. Every day people use our apps to connect with family and friends and make a difference in their communities. If we can honor the trust they put in us and live up to our responsibilities, we can help more people use technology to do good. That’s what motivates our teams and from all my conversations with Nick, it’s clear that he believes in this as well. His experience and ability to work through complex issues will be invaluable in the years to come.”

Change is certainly on the horizon for Facebook. With numerous scandals plaguing the business, and the threat of a GDPR fine following the most recent data breach, the team will have to carefully manage the Gaggle of Red-tapers in Brussels. Europe already the most stringent data protection and privacy rules worldwide, and it would be no surprise to see those tightened further. Clegg certainly has an interesting couple of months ahead.

Don’t listen to the moaners, phones are great – Three

Three has launched a new marketing campaign designed to counter all the moaning about how bad phones are for you.

In a new campaign, simply named ‘Phones are Good’, the telco imagines how historical moments would have been different if smartphones had been around. From Henry VIII on Tinder, to the Titanic with GPS, it’s a bit of fun which indirectly encourages people to use the internet more, playing directly into Three’s USP.

“At a time when we are being told to get off our phones, Three’s customers are actually using them three and a half times more than other providers,” said Shadi Halliwell, Chief Marketing Officer at Three. “That’s because, unlike others, we understand how real people use their phones.

“And although we shouldn’t be on our phones 24/7, if it weren’t for our mobiles how would you find love lounging on the sofa? Buy new shoes while sitting on the toilet? Or get a chicken cooked, seasoned, garnished and delivered to your door at the drop of a hat? As the Best Network for Data, it is our duty to challenge the cynics, and help everyone see that Phones Are Good.”

As you can see from the video below, it’s a creative way to get Three’s message across, and quite entertaining.

While Three is suggesting all these wonderful ideas on how mobile phones could have changed the course of history, there is of course the other side of the coin…

  • If the Mesopotamians had used MyBuilder.com for its reviews of local tradesmen, their grain storage units would have never leaked and beer would not be a thing
  • The Spanish Armada of 1588 could have been successful in its mission to conquer England if Sir Francis Drake was taking numerous selfies for the perfect Instagram post instead of gazing onto the horizon
  • Had a clumsy Chinese chef been following a YouTube recipe he might not have dropped a natural coagulant called nigari into a pot of soybean milk and created Tofu
  • Juliet might never have fallen for Romeo had she done a bit of Facebook stalking beforehand (admittedly this didn’t really happen)
  • If Percy Spencer had been using a calorie counting app, he would have never had that chocolate bar in his pocket and invented the microwave
  • Finally, without the power of Twitter the US might have a logical and caring human being in charge…

Of course, the revolutionary impact of mobile devices, not just the smartphone, is countered with negatives. Instead of talking to that lonely women on the bus, we stare at cats playing the piano and or toddlers biting siblings fingers. But, we more connected to family members on the other side of the planet. There’s always rough with the smooth.

Ultimately Three is attempting to push the advantages of the internet and encourage more people to consume more data. As the telco which sells itself to the more digital-enthusiastic users, using the internet more benefits it. It sells itself on data volume more than anything else.

The idea of the smartphone contradicts all the lessons of politeness and paying attention which we were taught as children. Perhaps the next thing we should be worried about is virtual reality. Parents have been telling children all around the world sitting too close to a TV screen is bad for your eyes, yet VR places a screen inches in front of your face.

US Senators hit out at India’s pro-privacy and localisation laws

Two US Senators have signed a letter addressed to India’s Prime Minister Narendra Modi suggesting new rules to tighten up data practices in the country could lead to a weakened trade relationship with the US.

The US Government has already shown the damage which can be done when it starts throwing around economic sanction and hurdles, almost sending ZTE to join the Dodo on the extinction list, and it appears to be using the same tactics here. However, instead of punishing an organization which broke trade laws, it is attempting to bully a country into its own line of thinking and away from a pro-privacy stance.

“We see this (data localization) as a fundamental issue to the further development of digital trade and one that is crucial to our economic partnership,” the letter signed by Senators John Cornyn and Mark Warner states. The Senators serve as co-chairs of the Senate’s India caucus.

The letter, seen by Reuters, relates to new data protection, privacy and localisation rules which are set to come into play this week (October 15). The rules have been in the making for some time, and while there are some very suspect clauses, this is an attempt to tame the wild-west internet in the country, applying regulations which should be deemed more acceptable for the digital economy.

Back in July, the Indian Government unveiled a report which detailed its new approach to data regulations in the country. Included in the rules are restrictions on how data can be collected and utilised, setting out a similar stance to GDPR in Europe, while also including new approaches such as the right to be forgotten, explicit opt-in consent for certain categories of data (that which is deemed sensitive), and also data localisation. It is a much more stringent approach to the data economy, taking India closer to the European stance on privacy than the US’ views.

Aside from the data protection and privacy benefits of localisation, and not to mention greater influence for the Indian Government, such a strategy also stimulates the economy. Local jobs will have to be created and new data centres will have to be constructed to meet the rising demands of the increasingly digital Indian economy and society. These are clearly benefits for the country, though the threat of an impact on US trade will certainly be a worry for India.

Over the course of 2017, India exported $34.83 billion worth of goods and services to the US. This figure accounted for 16% of the total exports for the country, making the US the largest trading partner. The US Government certainly does have leverage to coerce India into its own way of thinking.

The letter from the Senators also happens to coincide with some pretty heavy lobbying from the likes of Visa, Mastercard and American Express. All would certainly find life simpler if there was no such thing as localisation, though it seems lobbying Senators to fight the cause has been more effective than efforts to persuade Indian officials to head a different direction. The new rules seem to have been influenced by Europe’s GDPR, though the US, both the Government and companies, have a different approach to data than the pro-privacy Europeans.

With India’s economy fast evolving from analogue to digital, there certainly will be profits to be made. Many US companies, most notably those in Silicon Valley, will be looking greedily at the country though such rules would make life more difficult. Not impossible, but not as simple. Perhaps the economic weight of the US Government can bully India into believing the ‘American Dream’.