Financial Times

The development of a third ultrafast broadband network for the UK, to compete with Openreach and Virgin Media, is “highly unlikely”, according to a report commissioned by BT and submitted to the regulator Ofcom.

Ofcom is trying to improve competition with the opening up of BT’s network of underground ducts and telegraph poles for other companies to use to run their own fibre cables to homes and businesses. “A good long-term outcome would be to achieve fully competition between three or more networks for around 40 percent of premises, with competition from two providers in many areas beyond that,” the regulator said. But BT’s report, from telecoms consultancy Analysys Mason, said it would only be financially viable for a new entrant to deploy to 2 million homes, or 7 percent of the country, if it was achieving a market share of 25 percent. If a “more realistic” outcome of a 20 percent market share was achieved by the new operator, coverage would fall to a mere 4 percent, using ducts and poles.

Forty seven years after the first message was sent over the forerunner to today’s pervasive global network, the US has given up its remaining control over the internet. The formal handover, which took effect on Oct 1, followed a last-ditch attempt by a group of Republicans to block the move. They had argued that the US concession would open the door for authoritarian governments to get control of the network of networks, leading to greater censorship. However, supporters of the handover plan maintained that it was the only way to prevent a greater threat to the internet, since foreign governments who resented the US control would end up walling off their own national networks, eventually Balkanising the global system.

On Sept 30, a judge in Texas refused to grant an injunction requested by four Republican state attorneys-general to bar the move. That followed the end of an attempted Congressional rebellion, led by Sen Ted Cruz (R-TX). The last vestige of US control lay in its power over the internet’s naming and addressing system. Though largely technical in nature, this theoretically gave Washington the power to make entire countries “go dark” on the internet by removing them from the central naming system — though such a drastic action was considered self-defeating since it would have led to the immediate fragmentation of the internet. The US concession has officially launched an experiment in global governance designed to handle borderless digital communications. Control over addressing and naming on Oct 1 passed to Icann, an international body that had already been handling the system under a contract from Washington, but now operates independently.

European Union citizens will be able to use their phones abroad for as long as they like without incurring roaming fees, after all. Brussels executed a public U-turn in a desperate attempt to rescue a policy that was once held up as a tangible example of the EU’s benefit to ordinary citizens only to become a source of consumer ire. The cause of anger was a European Commission proposal from September that would have limited to 90 days a year the period for which mobile phone users would be spared roaming charges in Europe. Amid outrage from MEPs and consumer groups, the commission on Wednesday introduced a new proposal that scrapped the unpopular 90-day limit. It also includes measures to root out potential abuse of the ban on roaming charges in an effort to placate telecoms companies, which have complained bitterly about the loss of roaming fees.

Ask someone if they want broadband 35 times faster than the average and they will answer in the affirmative — probably with the addition of a few choice words regarding the service they receive at present. Like disgruntled football fans, British broadband users are not short of opinions about their internet speeds.

The industry has been embroiled in a very public fight about the state of broadband and what needs to be done. BT, and its engineering arm Openreach, say Britain has some of the best internet speeds in Europe. Its detractors, including Vodafone, TalkTalk and Sky, who compete with BT but rely on access to Openreach’s network, argue the country risks falling behind in the race to build networks that offer the speeds needed to support autonomous vehicles and artificial intelligence. With the EU looking to set the bar for minimum broadband speeds much higher than being contemplated in Britain, fears have started to build after the Brexit vote that Britain is trailing the pack and may never catch up. The argument about the state of the market has become concentrated on the length of copper wire that runs from the point that fibre optic cables stop to the customer’s door — roughly 7 per cent of the entire length of a broadband connection. BT’s critics want old copper lines to be abandoned and fibre optic cables run straight to the home — something BT is unwilling to pay for.

European news publishers will be given the right to levy fees on internet platforms such as Google if search engines show snippets of their stories, under radical copyright reforms being finalised by the European Commission.

The proposals, to be published in September, are aimed at diluting the power of big online operators, whose market share in areas such as search leads to unbalanced commercial negotiations between the search engine and content creators, according to officials. At the heart of the draft copyright plan, news publishers would receive “exclusive rights” to make their content available online to the public in a move that would force services such as Google News to agree terms with news organisations for showing extracts of articles. Citing dwindling revenues at news organisations, the commission warns that failure to push on with such a policy would be “prejudicial for . . . media pluralism.”

The proliferation of on-demand workers is creating difficult questions for policymakers about how to respond to the changing nature of labour and the safety and welfare issues that it raises.

Most “gig economy” workers, are classified as independent contractors rather than employees, according to rules introduced before the second world war. The rules, however, look increasingly outdated. According to company estimates, some 1m Americans work in the gig economy — also known as the on-demand or sharing economy — among them footloose millennials, professionals who lost their jobs mid-career and cash-strapped baby boomers forced to postpone retirement. A growing number want to see an overhaul of existing regulatory structures, which often prevent them from receiving two sought-after forms of support: safety net benefits, such as pensions, and training.

[Commentary] Donald Trump has created fissures through the once solid US conservative media in the same way that he has shaken the foundations of the Republican party, and torn up the rule book for a presidential candidate.

It is a measure of how extraordinary the 2016 White House race has been that Fox News and the Wall Street Journal, traditional bastions for US Republicans, have clashed with the party’s nominee. Publications such as the National Review have long been part of the establishment GOP while drawing on outsider status as the Democrats held control of the White House. But with the arrival of Trump, “establishment conservative media all of a sudden wakes up and says: what have we created here?” said Gabriel Kahn, a professor at the University of Southern California and former Wall Street Journal reporter. In a digital age the media industry has fragmented, with the internet opening up a new echo chamber for sites such as Breitbart to cater to more granular audiences. “Only in today’s media landscape can a candidate like Trump thrive,” said Mr Kahn. “20 years ago it was mainstream media and not much else.”

Netflix? Hulu? ESPN? HBO? YouTube? Entertainment companies are waging a brutal war for consumer eyeballs and dollars. The companies that operate the pipes, meanwhile, can sit back. Whatever content is most popular, they will get paid to deliver it.

A market once obsessed with the threat of cord-cutting by pay-TV subscribers now looks at the likes of Charter Communications and Comcast and sees big gains in high-speed internet users. This year those two and a smaller provider, Cable One, have seen their shares jump. Now, private equity gave its mark of approval. TPG Capital acquired two small, regional cable and broadband providers RCN Telecom and Grande Communications for $2.25 billion, collectively. The regional monopolies that rule US TV and internet delivery are not quite as dominant as they seem. RCN and Grande are “overbuilders” that put service over wires that incumbents have already built. Customers can pick a fringe provider if they do not want 500 channels, preferring fast internet and streaming video from Netflix and its growing list of rivals.

Gavin Patterson, chief executive of BT, has written to his counterparts at rival broadband providers Sky, Vodafone and TalkTalk to complain that their ‘Fix Britain’s Internet’ campaign is misleading consumers and “talking down” Britain. Patterson’s personal intervention comes amid a fractious debate about the state of Britain’s broadband that has seen BT’s rivals and MPs call for the break-up of BT and its Openreach division.

Patterson has written to Baroness Harding, chief executive of TalkTalk; Jeremy Darroch, chief executive of Sky; and Vittorio Colao, chief executive of Vodafone Group to express his alarm at the tone of the debate. The letter argues that the Fix Britain’s Internet campaign “paints an unfairly diminished view of connectivity across the UK and makes a number of misleading statements”.

Vodafone and Liberty Global have secured approval from Brussels for their plan to combine their Dutch businesses, clearing the way for the companies to create the Netherlands’ second-largest mobile and cable operator.

British telecoms group Vodafone agreed to sell its Dutch consumer fixed line business in exchange for being allowed to go ahead with the joint venture, in a sign of the tough line Brussels has adopted on tie-ups that it fears could harm competition in the telecoms market. The deal marks the first time Vodafone and Liberty will have united a part of their mobile and fixed-line telecoms empires, after on-off discussions over the past two years failed to result in a wider agreement to merge their operations. Margrethe Vestager, the EU’s competition chief, said that “the commitments offered by Vodafone [would] ensure that Dutch consumers will continue to enjoy competitive prices and good choice.”