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UK shrinks timetable for telcos to stop installing 5G kit from Huawei

The U.K. government has squeezed the timetable for domestic telcos to stop installing 5G kit from Chinese suppliers, per the BBC, which reports that the deadline for installation of kit from so-called “high risk” vendors is now September.

It had already announced a ban on telcos buying kit from Huawei et al by the end of this year — acting on national security concerns attached to companies that fall under the jurisdiction of Chinese state surveillance laws. But, according to the BBC, ministers are concerned carriers could stockpile kit for near-term installation to create an optional buffer for themselves since it has allowed until 2027 for them to remove such kit from existing 5G networks. Maintaining already installed equipment will also still be allowed up til then.

A Telecommunications Security Bill which will allow the government to identify kit as a national security risk and ban its use in domestic networks is slated to be introduced to parliament tomorrow.

Digital secretary Oliver Dowden told the BBC he’s pushing for the “complete removal of high-risk vendors”.

In July the government said changes to the U.S. sanctioned regime meant it could no longer manage the security risk attached to Chinese kit makers.

The move represented a major U-turn from the policy position announced in January — when the U.K. said it would allowed Chinese vendors to play a limited role in supplying domestic networks. However, the plan faced vocal opposition from the government’s own back benches, as well as high-profile pressure from the U.S. — which has pushed allies to expel Huawei entirely.

Alongside policies to restrict the use of high risk 5G vendors the U.K. has said it will take steps to encourage newcomers to enter the market to tackle concerns that the resulting lack of suppliers introduces another security risk.

Publishing a supply chain diversification strategy for 5G today, Dowden warns that barring “high risk” vendors leaves the country “overly reliant on too few suppliers”.

“This 5G Diversification Strategy is a clear and ambitious plan to grow our telecoms supply chain while ensuring it is resilient to future trends and threats,” he writes. “It has three core strands: supporting incumbent suppliers; attracting new suppliers into the UK market; and accelerating the development and deployment of open-interface solutions.”

The government is putting an initial £250 million behind the 5G diversification plan to try to build momentum for increasing competition and interoperability.

“Achieving this long term vision depends on removing the barriers that prevent new market entrants from joining the supply chain, investing in R&D to support the accelerated development and deployment of interoperable deployment models, and international collaboration and policy coordination between national governments and industry,” it writes.

In the short to medium term the government says it will prioritize support for existing suppliers — so the likely near-term beneficiary of the strategy is Finland’s Nokia.

Though the government also says it will “seek to attract new suppliers to the U.K. market in order to start the process of diversification as soon as possible”.

“As part of our approach we will prioritise opportunities to build UK capability in key areas of the supply chain,” it writes, adding: “As we progress this activity we look forward to working with network operators in the UK, telecoms suppliers and international governments to achieve our shared goals of a more competitive and vibrant telecoms supply market.”

We’ve reached out to Huawei for comment on the new deadline for U.K. carriers to stop installing its 5G kit.

The company has continued to reject security concerns attached to its business.

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How UK VCs are managing the risk of a ‘no deal’ Brexit

Grab your economic zombie mask: A Halloween “no deal” Brexit is careening into view. New prime minister Boris Johnson has pledged that the country will leave the European Union on October 31 with or without a deal — “do or die” as he put it. A year earlier as the foreign secretary, he used an even more colorful phrase to skewer diplomatic concern about the impact of a hard Brexit on business — reportedly condensing his position to a pithy expletive: “Fuck business.”

It was only a few years ago during the summer of 2016, following the shock result of the UK’s in/out EU referendum, the government’s aspiration was to leave in a “smooth and orderly” manner as the prelude to a “close and special” future trading partnership, as then PM Theresa May put it. A withdrawal deal was negotiated but repeatedly rejected by parliament. The PM herself was next to be despatched.

Now, here we are. The U.K. has arrived at a political impasse in which the nation is coasting toward a Brexit cliff edge. We’re at the brink here, with domestic politics turned upside down, because “no deal” is the only leverage left for “do or die” brexiteers that parliament can’t easily block.

Ironic because there’s no majority in parliament for “no deal.” But the end of the Article 50 extension period represents a legal default — a hard deadline that means the U.K. will soon fall out of the EU unless additional action is taken. Of course time itself can’t be made to grind to a halt. So “no deal” is the easy option for a government that’s made doing anything else to sort Brexit really really hard.

After three full years of Brexit uncertainty, the upshot for U.K. business is there’s no end in sight to even the known unknowns. And now a clutch of unknown unknowns seems set to pounce come Halloween when the country steps into the chaos of leaving with nada, as the current government says it must.

So how is the U.K. tech industry managing the risk of a chaotic exit from the European Union? The prevailing view among investors about founders is that Brexit means uncertain business as usual. “Resilience is the mother of entrepreneurship!” was the almost glib response of one VC asked how founders are coping.

“This is no worse than the existential dread that most founders feel every day about something or other,” said another, dubbing Brexit “just an enormous distraction.” And while he said the vast majority of founders in the firm’s portfolio would rather the whole thing was cancelled — “most realize it’s not going to be so they just want to get on.”

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TikTok is being investigated in the UK for how it handles children’s data and safety

TikTok is being investigated in the U.K. for how it handles the safety and personal data of underage users. According to The Guardian, information commissioner Elizabeth Denham told a parliamentary committee that the probe started in February after the U.S. Federal Trade Commission levied a $5.7 million fine against TikTok for breaking children’s privacy law.

Denham told The Guardian that the commission is examining how TikTok collects private data and has concerns about the open messaging system, which may allow adult users to contact children. “We are looking at the transparency tools for children. We’re looking at the messaging system, which is completely open, we’re looking at the kind of videos that are collected and shared by children online. We do have an active investigation into TikTok right now, so watch this space,” she said.

The investigation will also examine if the popular app, owned by ByteDance, violates the General Data Protection Regulation (GDPR), which requires companies to put special protections in place for underage users and provide them with different services than adults.

The FTC’s investigation, which began when TikTok was still known as Musical.ly, ruled that the app broke the Children’s Online Privacy Protection Act by failing to seek parental consent before collecting names, email addresses and other personal information from users under 13. The ruling resulted in an age gate being added to an app that prevents users under 13 from filming and posting videos on it.

ByteDance, the Chinese media startup now valued at $75 billion, told The Guardian in a statement that “We cooperate with organizations such as the ICO to provide relevant information about our product to support their work. Ensuring data protection principles are upheld is a top priority for TikTok.”

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iOS and Samsung market share now tied in the US

 iOS and Samsung’s U.S. market share is now tied, following growth for Apple’s smartphone OS over the three months ending in August, based on new data from Kantar Wordpanel, which tracks smartphone market share by way of sales data. According to its analysis, iOS is up 3.7 percentage points year-over-year, to achieve 35 percent market share, while Samsung only grew 0.8 points,… Read More

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Apple Pay Has Officially Launched In The U.K.

15023058127_b21f702640_k The Eagle has landed. An accidental tweet told us that the U.K. wouldn’t have to wait for Apple Pay much longer, and that tweet was right. Apple Pay has officially launched in the U.K. Finally! It has been available to customers here in the US since last October, so your time has finally come, U.K. Hopefully your bank is one of the launch participants: American Express, First Direct,… Read More

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