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After merger, T-Mobile lays off hundreds of Sprint employees

In a conference call on Monday lasting under six minutes, T-Mobile vice president James Kirby told hundreds of Sprint employees that their services were no longer needed. He declined to answer his employees’ questions, citing the “personal” nature of employee feedback, and ended the call.

TechCrunch obtained leaked audio of that call, which was said to be one of several calls held by T-Mobile leadership throughout the day to lay off staff across the organization. The layoffs come just two months after its contested $26 billion Sprint merger was finally completed.

On the call, Kirby said T-Mobile was eliminating Sprint’s inside sales unit (BISO), a sales division that focuses on small businesses across the United States. The executive didn’t say exactly how many staff were laid off. Almost 400 people were in the phone meeting, a person on the call told TechCrunch.

Kirby is heard saying that the division’s layoffs would make way for 200 new positions, and encouraged employees to apply for one of the new positions using T-Mobile’s external careers page, spelling out the web address on the call twice. Some impacted employees may be able to shift to new roles, though the carriers don’t appear to have done much to facilitate the moves beyond encouraging staff to apply.

The employees who were laid off Monday will keep their jobs for another two months until August 13, said Kirby. A person on the call told TechCrunch that the severance packages amount to two weeks pay for every year on the job, but some employees may get more.

Employers are required to give two months notice in advance of mass layoffs under the WARN Act.

T-Mobile leadership held several conference calls with employees to announce layoffs across various Sprint divisions on Monday on both the business and consumer sides, according to the person on the call. The person said that they were unaware of any T-Mobile employees affected by the layoffs.

“They cut people from every division, but BISO seems to have been hit the hardest,” the person said.

One employee described their frustration. “I just feel the company needs to acknowledge the pain they are putting people through during a pandemic — severance package or not.”

When reached, a T-Mobile spokesperson did not comment by our deadline.

T-Mobile closed the Sprint merger on April 1. The deal found the nation’s third- and fourth-largest carriers merged in a manner they insisted would keep them more competitive with the No. 1 and No. 2 services — AT&T and Verizon (TechCrunch’s parent company) — which have long dominated the category.

The merger was, understandably, subject to intense regulatory scrutiny in the months leading up to its final approval, as it would effectively reduce the country’s key carriers to three down from four. Among T-Mobile’s chief selling points were the claim that — in addition to increased competition — a merger would create more jobs.

“In total, New T-Mobile will have more than 11,000 additional employees on our payroll by 2024 compared to what the combined standalone companies would have,” then-chief executive John Legere claimed in an open letter last April.

The exact effect the merger has had on employee headcount isn’t entirely clear, but last month The Communications Workers of America estimated that it would impact some 30,000 jobs due to the consolidation of retail stores and corporate roles.

“T-Mobile has made no written, verifiable commitments to the FCC to protect jobs,” the union wrote. “While T-Mobile has tried to muddy the waters with vague loophole-ridden pledges to maintain jobs for current T-Mobile and Sprint employees, three-quarters of current employees selling the companies’ services work for authorized dealers and are not covered by the jobs pledge — 88,000 workers in total.”

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SoftBank’s Q1 2020 earnings presentation mixes comedy and drama

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today we’re digging into SoftBank’s latest earnings slides. Not only do they contain a wealth of updates and other useful information, but some of them are gosh-darn-freaking hilarious. We all deserve a bit of levity after the last few months.

The visual elements we quote below come from SoftBank’s reporting of its own results from its fiscal year ending March 31, 2020. Much of the deck is made up of financial reporting tables and other bits of stuff you don’t want to read. We’ve cut all that out and left the fun parts.

Before we dive in, please note that we are largely giggling at some slide design choices and only somewhat at the results themselves. We are certainly not making fun of people who’ve been impacted by layoffs and other such things that these slides’ results encompass.

But we are going to have some fun with how SoftBank describes how it views the world, because how can we not? Let’s begin.

Data, slides

TechCrunch has a number of folks parsing SoftBank’s deck this morning, looking to do serious work. That’s not our goal. Sure, this post will tell you things like the fact that there are 88 companies in the Vision Fund portfolio, and that when it comes to unrealized gains and losses, the portfolio has seen $13.4 billion in gains and $14.2 billion in losses. $4.9 billion of gains have been realized, mind you, while just $200 million of losses have had the same honor.

And this post will tell you that the “net blended [internal rate of return] for SoftBank Vision Fund investors is -1%.”

Hell, you probably also want to know that Uber was detailed as Vision Fund’s worst-performing public company, generating a $1.46 billion loss for the group. In contrast, Guardant Health is good for a $1.67 billion gain, while 2019 IPO Slack has been good for $605 million in profits. Those were the two best companies in the Vision Fund’s public portfolio.

But what you really want is the good stuff. So, shared by slide number, here you go:

Slide 11:

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China’s smartphone shipments are reportedly up for April, following COVID-19-fueled decline

Smartphone shipments are reportedly beginning to see signs of life in China, after a sizable dip from the COVID-19 pandemic. New numbers from China Academy of Information and Communications Technology (a government-connected agency) point to a 17% rise in shipments for April, pointing to some recovery for the market.

The figure, from the China state-supported group, is virtually a mirror reflection of the 18% dip Canalys reported for Q1. COVID-19 was the primary culprit for those figures, through a combination of decreased spending among China’s phone-buying public and sizable supply chain constraints, as many Asian nations were on lockdown to slow the spread.

Both Huawei and Apple benefited from the rebound, though Reuters notes that the firm opted not to include an OS breakdown for the first time in a while, making it more difficult to parse market share.

Smartphone shipments have suffered across the board, along with countless other industries. A rebound for China’s market could be a bellwether for positive numbers for the industry moving forward — especially given the country’s close ties to the global supply chain. In spite of being the first country hit, China’s official figures for COVID-19 deaths have remained low, compared to countries in Europe and North America.

That’s likely due in part to some draconian measures used to stop the spread. Other countries (the U.S. in particular) may not be so likely to rebound from the pandemic, leading to a more protracted impact on the global market. 

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Google’s Duo video chat app gets a family mode with doodles and masks

Google today launched an update to its Duo video chat app (which you definitely shouldn’t confuse with Hangouts or Google Meet, Google’s other video, audio and text chat apps).

There are plenty of jokes to be made about Google’s plethora of chat options, but Duo is trying to be a bit different from Hangouts and Meet in that it’s mobile-first and putting the emphasis on personal conversations. In its early days, it was very much only about one-on-one conversations (hence its name), but that has obviously changed (hence why Google will surely change its name sooner or later). This update shows this emphasis with the addition of what the company calls a “family mode.”

Once you activate this mode, you can start doodling on the screen, activate a number of new effects and virtually dress up with new masks. These effects and masks are now also available for one-on-one calls.

For Mother’s Day, Google is rolling out a special new effect that is sufficiently disturbing to make sure your mother will never want to use Duo again and immediately make her want to switch to Google Meet instead.

Only last month, Duo increased the maximum number of chat participants to 12 on Android and iOS. In the next few weeks, it’s also bringing this feature to the browser, where it will work for anyone with a Google account.

Google also launched a new ad for Duo. It’s what happens when marketers work from home.

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Nvidia acquires Cumulus Networks

Nvidia today announced its plans to acquire Cumulus Networks, an open-source-centric company that specializes in helping enterprises optimize their data center networking stack. Cumulus offers both its own Linux distribution for network switches, as well as tools for managing network operations. With Cumulus Express, the company also offers a hardware solution in the form of its own data center switch.

The two companies did not announce the price of the acquisition, but chances are we are talking about a considerable amount, given that Cumulus had raised $134 million since it was founded in 2010.

Mountain View-based Cumulus already had a previous partnership with Mellanox, which Nvidia acquired for $6.9 billion. That acquisition closed only a few days ago. As Mellanox’s Amit Katz notes in today’s announcement, the two companies first met in 2013, and they formed a first official partnership in 2016. Cumulus, it’s worth noting, was also an early player in the OpenStack ecosystem.

Having both Cumulus and Mellanox in its stable will give Nvidia virtually all the tools it needs to help enterprises and cloud providers build out their high-performance computing and AI workloads in their data centers. While you may mostly think about Nvidia because of its graphics cards, the company has a sizable data center group, which delivered close to $1 billion in revenue in the last quarter, up 43% from a year ago. In comparison, Nvidia’s revenue from gaming was just under $1.5 billion.

“With Cumulus, NVIDIA can innovate and optimize across the entire networking stack from chips and systems to software including analytics like Cumulus NetQ, delivering great performance and value to customers,” writes Katz. “This open networking platform is extensible and allows enterprise and cloud-scale data centers full control over their operations.”

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Verizon is buying B2B videoconferencing firm BlueJeans

US carrier Verizon* has splashed out to buy veteran B2B videoconferencing platform, BlueJeans Network — shelling out less than $500 million on the acquisition, according to the Wall Street Journal which first reported the news.

A Verizon spokeswoman confirmed to TechCrunch that the price-tag is sub-$500M but did not provide a more exact figure. Videoconferencing platform Blue Jeans has raised ~$175M since being founded around a decade ago, per Crunchbase, with US investor NEA leading a Series E round back in 2015.

In a press release announcing the deal, Verizon said it has entered into a definitive agreement to acquire the enterprise-grade videoconferencing and event platform in order to expand its “immersive unified communications portfolio”.

“Customers will benefit from a BlueJeans enterprise-grade video experience on Verizon’s high-performance global networks. In addition, the platform will be deeply integrated into Verizon’s 5G product roadmap, providing secure and real-time engagement solutions for high growth areas such as telemedicine, distance learning and field service work,” it wrote.

“As the way we work continues to change, it is absolutely critical for businesses and public sector customers to have access to a comprehensive suite of offerings that are enterprise ready, secure, frictionless and that integrate with existing tools,” added Tami Erwin, CEO of Verizon Business, in a supporting statement. “Collaboration and communications have become top of the agenda for businesses of all sizes and in all sectors in recent months. We are excited to combine the power of BlueJeans’ video platform with Verizon Business’ connectivity networks, platforms and solutions to meet our customers’ needs.”

The acquisition comes at a time when videoconferencing is seeing a massive uptick in usage as white collar workers around the world log on to meetings from home during the coronavirus pandemic.

Although it’s BlueJeans’ rival, Zoom, that’s been the most high profile name linked to the viral videoconferencing boom in recent weeks. The latter recently revealed that daily meeting participants on its platform jumped from a modest 10M in December to 200M in March.

However such booming growth and consumer usage has brought increased scrutiny for Zoom — leading to a spate of warnings (and even some bans), related to security and privacy concerns. And earlier this month the company said it would freeze product dev to focus on the laundry list of issues that have surfaced as users have piled in and kicked its tires, taking a little of the shine off of surging growth. 

On the sheer usage front BlueJeans is certainly small fish in comparison to Zoom — having remained b2b focused. A BlueJeans spokeswoman told us it has more than $100M ARR and over 15,000 customers at this point. (Some notable users include Facebook and Disney.)

But it’s paying users that are likely of most interest to Verizon, hence talk of telemedicine, distance learning and field service work — areas ripe for coronavirus-accelerated digitization. Carriers generally, meanwhile, haven’t been able to translate increased usage during the pandemic into a revenue growth story — as a result of a combination of fixed costs, debt and market disruption that’s been hitting their shares during the coronavirus crisis, per Reuters. Bolting on more b2b tools looks to be one way of growing network revenues.

“The combination of BlueJeans’ world class enterprise video collaboration platform and trusted brand with Verizon Business’ next generation edge computing innovation will deliver highly differentiated and compelling solutions to our joint customers,” said Quentin Gallivan, BlueJeans CEO, in a statement. “We are very excited about joining the Verizon team and we truly believe the future of business communications starts today!”

Verizon said today that said BlueJeans founders and “key management” will join the company as part of the acquisition, with BlueJeans employees set to become Verizon employees immediately following the close of the deal — which is expected in the second quarter, pending customary closing conditions.

BlueJeans co-founder Krish Ramakrishnan has a history of exits, selling a couple of his previous startups to networking giant Cisco — where he has also worked, in between spinning out his own companies.

*Disclosure: Verizon is also TechCrunch’s parent company

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Players Ntwrk launches celebrity gaming channel backed by WME, Daylight and Stratton Sclavos

Emerging from the smoldering wreckage of Echo Fox and Vision Venture Partners, the investor Stratton Sclavos is rising again to launch a new esports-related venture — a gaming-focused digital network also backed by the WME talent agency and Daylight Holdings.

Tapping Daylight and WME’s roster of talent, Sclavos has created Players Ntwrk, a new gaming-focused production company that will look to compete with other upstarts angling to tap into esports and competitive gaming’s newly dominant place in the entertainment firmament.

Players Ntwrk will feature original programming, unscripted series, celebrity gameplay and live events tapping talent from music, traditional pro-sports and the esports gaming world.

Sclavos and the multifaceted talent manager and president of Daylight Holdings, Ben Curtis, dreamed up Players Ntwrk as a way to tie together disparate groups of athletes and entertainers around their shared love of gaming and entertainment. The network will initially leverage relationships with WME and Klutch Sports Group, the agency founded by LeBron James’ longtime manager, Rich Paul, to find talent for programming.

The network will launch on Tuesday at 5:00 pm Pacific for two hours of gameplay featuring the New Orleans Pelicans Guard/Forward Josh Hart and Sacramento Kings point guard De’Aaron Fox on the Players Ntwrk Twitch channel. Additional live streams will be broadcast Friday and Saturday, the company said.

Over the next 12 weeks the network will add live programming featuring all of its “First Squad” talent and experimenting with different gaming and unscripted formats. Ultimately, the network will produce between 12 and 15 hours of original programming per week by the end of the second quarter and will ramp up to 20 to 24 hours of programming per-week by the end of the year.

Initial programming is going to be devoted to charity fundraising, with proceeds going to designated charities based on direct audience donations, the company said.

Players Ntwrk’s First Squad talent roster includes:

  • Professional athletes: De’Aaron Fox (Sacramento Kings), Josh Hart (New Orleans Pelicans), Jarvis Landry (Cleveland Browns) and Alvin Kamara (New Orleans Saints)
  • Music and Entertainment: PARTYNEXTDOOR, Murda Beatz, producer Boi-1da, actor/former athlete Donovan Carter (Ballers)
  • Creators/Streamers: KatGunn, Sodapoppin, Cash, Jesser, Jericho, Octane, Sigils, Sonii and DenkOps

Players Ntwrk joins companies like Venn, which are angling to gain a slice of the roughly 37.5 million monthly viewers that are expected to watch live streams on Twitch by the end of 2020, according to research done by eMarketer.

“The number of viewers and subscribers consuming gaming entertainment across YouTube and Twitch tops other entertainment services such as Netflix, HBO, Spotify and ESPN combined,” said Sclavos, in a statement. “Entertainment spectacle is trumping hardcore gaming competition. That kind of engagement makes it clear; gaming entertainment is the next pop culture phenomena. PLAYERS NTWRK is the only platform embracing and executing this new reality by creating original content with the most influential people who also happen to be fans themselves.”

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Microsoft launches Edge Zones for Azure

Microsoft today announced the launch of Azure Edge Zones, which will allow Azure users to bring their applications to the company’s edge locations. The focus here is on enabling real-time low-latency 5G applications. The company is also launching a version of Edge Zones with carriers (starting with AT&T) in preview, which connects these zones directly to 5G networks in the carrier’s data center. And to round it all out, Azure is also getting Private Edge Zones for those who are deploying private 5G/LTE networks in combination with Azure Stack Edge.

In addition to partnering with carriers like AT&T, as well as Rogers, SK Telecom, Telstra and Vodafone, Microsoft is also launching new standalone Azure Edge Zones in more than 10 cities over the next year, starting with LA, Miami and New York later this summer.

“For the last few decades, carriers and operators have pioneered how we connect with each other, laying the foundation for telephony and cellular,” the company notes in today’s announcement. “With cloud and 5G, there are new possibilities by combining cloud services, like compute and AI with high bandwidth and ultra-low latency. Microsoft is partnering with them bring 5G to life in immersive applications built by organization and developers.”

This may all sound a bit familiar, and that’s because only a few weeks ago, Google launched Anthos for Telecom and its Global Mobile Edge Cloud, which at first glance offers a similar promise of bringing applications close to that cloud’s edge locations for 5G and telco usage. Microsoft argues that its offering is more comprehensive in terms of its partner ecosystem and geographic availability. But it’s clear that 5G is a trend all of the large cloud providers are trying to tap into. Microsoft’s own acquisition of 5G cloud specialist Affirmed Networks is yet another example of how it is looking to position itself in this market.

As far as the details of the various Edge Zone versions go, the focus of Edge Zones is mostly on IoT and AI workloads, while Microsoft notes that Edge Zones with Carriers is more about low-latency online gaming, remote meetings and events, as well as smart infrastructure. Private Edge Zones, which combine private carrier networks with Azure Stack Edge, is something only a small number of large enterprise companies would likely to look into, given the cost and complexity of rolling out a system like this.

 

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Telco metadata grab is for modelling COVID-19 spread, not tracking citizens, says EC

As part of its response to the public health emergency triggered by the COVID-19 pandemic, the European Commission has been leaning on Europe’s telcos to share aggregate location data on their users.

The Commission kick-started a discussion with mobile phone operators about the provision of aggregated and anonymised mobile phone location data,” it said today.

“The idea is to analyse mobility patterns including the impact of confinement measures on the intensity of contacts, and hence the risks of contamination. This would be an important — and proportionate — input for tools that are modelling the spread of the virus, and would also allow to assess the current measures adopted to contain the pandemic.”

“We want to work with one operator per Member State to have a representative sample,” it added. “Having one operator per Member State also means the aggregated and anonymised data could not be used to track individual citizens, that is also not at all the intention. Simply because not all have the same operator.

“The data will only be kept as long as the crisis is ongoing. We will of course ensure the respect of the ePrivacy Directive and the GDPR.”

Earlier this week Politico reported that commissioner Thierry Breton held a conference with carriers, including Deutsche Telekom and Orange, asking for them to share data to help predict the spread of the novel coronavirus.

Europe has become a secondary hub for the disease, with high rates of infection in countries including Italy and Spain — where there have been thousands of deaths apiece.

The European Union’s executive is understandably keen to bolster national efforts to combat the virus. Although, it’s less clear exactly how aggregated mobile location data can help — especially as more EU citizens are confined to their homes under national quarantine orders. (While police patrols and CCTV offer an existing means of confirming whether or not people are generally moving around.)

Nonetheless, EU telcos have already been sharing aggregate data with national governments.

Orange in France is sharing “aggregated and anonymized” mobile phone geolocation data with Inserm, a local health-focused research institute — to enable them to “better anticipate and better manage the spread of the epidemic,” as a spokeswoman put it.

“The idea is simply to identify where the populations are concentrated and how they move before and after the confinement in order to be able to verify that the emergency services and the health system are as well armed as possible, where necessary,” she added. “For instance, at the time of confinement, more than 1 million people left the Paris region and at the same time the population of Ile de Ré increased by 30%.

“Other uses of this data are possible and we are currently in discussions with the State on all of these points. But, it must be clear, we are extremely vigilant with regards to concerns and respect for privacy. Moreover, we are in contact with the CNIL [France’s data protection watchdog]… to verify that all of these points are addressed.”

Germany’s Deutsche Telekom is also providing to national health authorities what a spokesperson dubbed “anonymized swarm data” to combat the corona virus.

“European mobile operators are also to make such anonymized mass data available to the EU Commission at its request,” the spokesperson told us. “In fact, we will first provide the EU Commission with a description of data we have sent to German health authorities.”

It’s not entirely clear whether the Commission’s intention is to pool data from such existing local efforts — or whether it’s asking EU carriers for a different, universal data-set to be shared with it during the COVID-19 emergency.

When we asked about this it did not provide an answer. Although we understand discussions are ongoing with operators — and that it’s the Commission’s aim to work with one operator per Member State.

The Commission has said the metadata will be used for modelling the spread of the virus and for looking at mobility patterns to analyze and assess the impact of quarantine measures.

A spokesman emphasized that individual-level tracking of EU citizens is not on the cards.

“The Commission is in discussions with mobile operators’ associations about the provision of aggregated and anonymised mobile phone location data,” the spokesman for Breton told us.

“These data permit to analyse mobility patterns including the impact of confinement measures on the intensity of contacts and hence the risks of contamination. They are therefore an important and proportionate tool to feed modelling tools for the spread of the virus and also assess the current measures adopted to contain the Coronavrius pandemic are effective.”

“These data do not enable tracking of individual users,” he added. “The Commission is in close contact with the European Data Protection Supervisor (EDPS) to ensure the respect of the ePrivacy Directive and the GDPR.”

At this point there’s no set date for the system to be up and running — although we understand the aim is to get data flowing asap. The intention is also to use data sets that go back to the start of the epidemic, with data-sharing ongoing until the pandemic is over — at which point we’re told the data will be deleted.

Breton hasn’t had to lean very hard on EU telcos to share data for a crisis cause.

Earlier this week Mats Granryd, director general of operator association the GSMA, tweeted that its members are “committed to working with the European Commission, national authorities and international groups to use data in the fight against COVID-19 crisis.”

Although, he added an important qualifier: “while complying with European privacy standards.”

The @GSMA and our members are committed to working with the @EU_Commission, national authorities and international groups to use data in the fight against COVID-19 crisis, while complying with European privacy standards. https://t.co/f1hBYT5Lqx

— Mats Granryd (@MatsGranryd) March 24, 2020

Europe’s data protection framework means there are limits on how people’s personal data can be used — even during a public health emergency. And while the legal frameworks do quite rightly bake in flexibility for a pressing public purpose, like the COVID-19 pandemic, it does not mean individuals’ privacy rights automatically go out the window.

Individual tracking of mobile users for contact tracing — such as Israel’s government is doing — is unimaginable at the pan-EU level. Certainly unless the regional situation deteriorates drastically.

One privacy lawyer we spoke to last week suggested such a level of tracking and monitoring across Europe would be akin to a “last resort.” Though individual EU countries are choosing to respond differently to the crisis — such as, for example, Poland giving quarantined people a choice between regular police check ups or uploading geotagged selfies to prove they’re not breaking lockdown.

While former EU Member the U.K. has reportedly chosen to invite in the controversial U.S. surveillance-as-a-service tech firm Palantir to carry out resource tracking for its National Health Service during the coronavirus crisis.

Under pan-EU law (which the U.K. remains subject to, until the end of the Brexit transition period), the rule of thumb is that extraordinary data-sharing — such as the Commission asking telcos to share user location data during a pandemic — must be “temporary, necessary and proportionate,” as digital rights group Privacy International recently noted.

This explains why Breton’s request is for “anonymous and aggregated” location data. And why, in background comments to reporters, the claim is that any shared data sets will be deleted at the end of the pandemic.

Not every EU lawmaker appears entirely aware of all the legal limits, however.

Today the bloc’s lead privacy regulator, data protection supervisor (EDPS) Wojciech Wiewiórowski, could be seen tweeting cautionary advice at one former commissioner, Andrus Ansip (now an MEP) — after the latter publicly eyed up a Bluetooth-powered contacts tracing app deployed in Singapore.

“Please be cautious comparing Singapore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder,” wrote Wiewiórowski.

So it remains to be seen whether pressure will mount for more privacy-intrusive surveillance of EU citizens if regional rates of infection continue to grow.

Dear Mr. Commissioner, please be cautious comparing Singapoore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder.

— Wojtek Wiewiorowski (@W_Wiewiorowski) March 27, 2020

As we reported earlier this week, governments or EU institutions seeking to make use of mobile phone data to help with the response to the coronavirus must comply with the EU’s ePrivacy Directive — which covers the processing of mobile location data.

The ePrivacy Directive allows for Member States to restrict the scope of the rights and obligations related to location metadata privacy, and retain such data for a limited time — when such restriction constitutes “a necessary, appropriate and proportionate measure within a democratic society to safeguard national security (i.e. State security), defence, public security, and the prevention, investigation, detection and prosecution of criminal offences or of unauthorised use of the electronic communication system” — and a pandemic seems a clear example of a public security issue.

Thing is, the ePrivacy Directive is an old framework. The previous college of commissioners had intended to replace it alongside an update to the EU’s broader personal data protection framework — the General Data Protection Regulation (GDPR) — but failed to reach agreement.

This means there’s some potential mismatch. For example the ePrivacy Directive does not include the same level of transparency requirements as the GDPR.

Perhaps understandably, then, since news of the Commission’s call for carrier metadata emerged concerns have been raised about the scope and limits of the data sharing. Earlier this week, for example, MEP Sophie in’t Veld wrote to Breton asking for more information on the data grab — including querying exactly how the data will be anonymized.

Fighting the #coronavirus with technology: sure! But always with protection of our privacy. Read my letter to @ThierryBreton 👇 about @EU_Commission’s plans to call on telecoms to hand over data from people’s mobile phones in order to track&trace how the virus is spreading. pic.twitter.com/55kZo9bMhN

— Sophie in ‘t Veld (@SophieintVeld) March 25, 2020

The EDPS confirmed to us that the Commission consulted it on the proposed use of telco metadata.

A spokesman for the regulator pointed to a letter sent by Wiewiórowski to the Commission, following the latter’s request for guidance on monitoring the “spread” of COVID-19.

In the letter the EDPS impresses on the Commission the importance of “effective” data anonymization — which means it’s in effect saying a technique that does genuinely block re-identification of the data must be used. (There are plenty of examples of “anonymized” data being shown by researchers to be trivially easy to reidentify; while location data typically includes many easily identified individual tells, such as a home address and workplace address.)

“Effective anonymisation requires more than simply removing obvious identifiers such as phone numbers and IMEI numbers,” warns the EDPS, adding too that aggregated data “can provide an additional safeguard.”

We also asked the Commission for more details on how the data will be anonymized and the level of aggregation that would be used — but it told us it could not provide further information at this stage. 

So far we understand that the anonymization and aggregation process will be undertaken before data is transferred by operators to a Commission science and research advisory body, called the Joint Research Centre (JRC) — which will perform the data analytics and modelling.

The results — in the form of predictions of propagation and so on — will then be shared by the Commission with EU Member States authorities. The datasets feeding the models will be stored on secure JRC servers.

The EDPS is equally clear on the Commission’s commitments vis-a-vis securing the data.

“Information security obligations under Commission Decision 2017/464 still apply [to anonymized data], as do confidentiality obligations under the Staff Regulations for any Commission staff processing the information. Should the Commission rely on third parties to process the information, these third parties have to apply equivalent security measures and be bound by strict confidentiality obligations and prohibitions on further use as well,” writes Wiewiórowski.

“I would also like to stress the importance of applying adequate measures to ensure the secure transmission of data from the telecom providers. It would also be preferable to limit access to the data to authorised experts in spatial epidemiology, data protection and data science.”

Data retention — or rather the need for prompt destruction of data sets after the emergency is over — is another key piece of the guidance.

“I also welcome that the data obtained from mobile operators would be deleted as soon as the current emergency comes to an end,” writes Wiewiórowski. “It should be also clear that these special services are deployed because of this specific crisis and are of temporary character. The EDPS often stresses that such developments usually do not contain the possibility to step back when the emergency is gone. I would like to stress that such solution should be still recognised as extraordinary.”

teresting to note the EDPS is very clear on “full transparency” also being a requirement, both of purpose and “procedure.” So we should expect more details to be released about how the data is being effectively rendered unidentifiable.

“Allow me to recall the importance of full transparency to the public on the purpose and procedure of the measures to be enacted,” writes Wiewiórowski. “I would also encourage you to keep your Data Protection Officer involved throughout the entire process to provide assurance that the data processed had indeed been effectively anonymised.”

The EDPS has also requested to see a copy of the data model. At the time of writing the spokesman told us it’s still waiting to receive that.

“The Commission should clearly define the dataset it wants to obtain and ensure transparency towards the public, to avoid any possible misunderstandings,” Wiewiórowski added in the letter.

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Verizon increases network infrastructure investment by $500M

Verizon said Thursday it will boost investment in network infrastructure, increasing its capital guidance by $500 million, to prepare for the rise in telecommuting and online learning amid the coronavirus outbreak.

Verizon has not seen any measurable increases in data usage, even as some business, schools and other organizations are asking its employees to work remotely, Chairman and CEO Hans Vestberg told CNBC in an interview. He added that the company is monitoring it 24/7 because “patterns can change.” (TechCrunch is owned by Verizon.)

Still, the company is increasing its capital guidance from $17 billion-$18 billion to $17.5 billion-$18.5 billion in 2020. Vestberg said the company would continue to add to its network infrastructure. Verizon said in a statement that the effort aims to accelerate the company’s transition to 5G and help support the economy during this period of disruption.

“In these times, it’s important to show the market and the country that there are people investing as well,” he added in the CNBC interview.

Verizon said in a statement that it has been closely monitoring network usage in the most impacted areas and will work with and prioritize network demand to assist needs of U.S. hospitals, first responders and government agencies.

The decision follows an escalating global crisis caused by COVID-19, the coronavirus strain that was declared a pandemic by the World Health Organization earlier this week. COVID-19 has wreaked havoc on the stock market, pushing shares lower in every industry, and caused numerous closures, including professional sports games, the cancellation of the NCAA March Madness basketball tournament and Disneyland. Shares of Verizon closed down 3.65%, at $51.20.

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