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04.24.20 telecommunications

Deficiencies that broke FCC commenting system in net neutrality fight detailed by GAO

Today marks the conclusion of a years-long saga that started when John Oliver did a segment on Net Neutrality that was so popular that it brought the FCC’s comment system to its knees. Two years later it is finally near addressing all the issues brought up in an investigation from the General Accountability Office.

The report covers numerous cybersecurity and IT issues, some of which the FCC addressed quickly, some not so quickly, and some it’s still working on.

“Today’s GAO report makes clear what we knew all along:  the FCC’s system for collecting public input has problems,” Commissioner Jessica Rosenworcel told TechCrunch . “The agency needs to fully fix this mess because this is the way the FCC is supposed to take input from the public. But as this report demonstrates, we have real work to do.”

Here’s the basic timeline of events, which seem so long ago now:

  • May 2017: John Oliver’s segment airs, and the next day the FCC claims it was hit by denial-of-service attacks that took down its comment system, ECFS. (In fact it was merely the sheer volume of people who wanted to share their opinion of the FCC’s plan to kill net neutrality.)
  • July 2017: Despite calls for details, the FCC refuses to release any details on the cyberattack, despite Congressional demands, saying the threat was “ongoing.” (Its investigations had not in fact determined malicious intent and its official account was in doubt internally from the start.)
  • August 2017: Congress calls for an independent investigation of the FCC’s claims and its comment system. (That’s the report released today. Also around this time another improbable “hack” was found to have (not) happened in 2014.)
  • October 2017: FCC’s chief information officer, David Bray, who claimed the attacks took place both in 2017 and 2014, leaves the FCC.
  • December 2017: The FCC votes along party lines to kill net neutrality.
  • June 2018: A watchdog group acquires 1,300 pages of emails, which (though very heavily redacted) show that the DDoS claims were essentially false and known to be so.
  • August 2018: The FCC finally admits that it was never hacked, and the next day its own internal report comes out showing that it really was just overwhelming interest from people wanting to be heard. Members of Congress accuse Chairman Ajit Pai of “dereliction of duty” in perpetuating this dangerously incorrect narrative.

Then it’s pretty quiet basically until today, when the report requested in 2017 was publicly released. A version with sensitive information (like exact software configurations and other technical information) was internally circulated in September, then revised for today’s release.

The final report is not much of a bombshell, since much of it has been telegraphed ahead of time. It’s a collection of criticisms of an outdated system with inadequate security and other failings that might have been directed at practically any federal agency, among which cybersecurity practices are notoriously poor.

Government investigation finds federal agencies failing at cybersecurity basics

The investigation indicates that the FCC, for instance, did not consistently implement security and access controls, encrypt sensitive data, update or correctly configure its servers, detect or log cybersecurity events, and so on. It wasn’t always a disaster (even well-run IT departments don’t always follow best practices), but obviously some of these shortcomings and cut corners led to serious issues like ECFS being overwhelmed.

More importantly, of the 136 recommendations made in the September report, 85 have been fully implemented now, 10 partially, and the rest are on track to be so.

That should not be taken to mean that the FCC has waited this whole time to update its commenting and other systems. In fact it was making improvements almost immediately after the event in May of 2017, but refused to describe them. Here are a few of the improvements listed in the GAO report:

Representative Frank Pallone (D-NJ), who has dogged the FCC on this issue since the beginning, issued the following statement:

I requested this report because it was clear, after the net neutrality repeal comment period debacle, that the FCC’s cybersecurity practices had failed. After more than two years of investigating, GAO agrees and found a disturbing lack of security that places the Commission’s information systems at risk… Until the FCC implements all of the remaining recommendations, its systems will remain vulnerable to failure and misuse.

You can read the final GAO report here.

Commission Impossible: How and why the FCC created net neutrality

Read more: https://techcrunch.com/2020/04/24/deficiencies-that-broke-fcc-commenting-system-in-net-neutrality-fight-detailed-by-gao/

08.12.19 telecommunications

Africas top mobile phone seller Transsion to list in Chinese IPO

Chinese mobile-phone and device maker Transsion will list in an IPO on Shanghai’s STAR Market, Transsion confirmed to TechCrunch.

The company — which has a robust Africa sales network — could raise up to 3 billion yuan (or $426 million).

“The company’s listing-related work is running smoothly. The registration application and issuance process is still underway, with the specific timetable yet to be confirmed by the CSRC and Shanghai Stock Exchange,” a spokesperson for Transsion’s Office of the Secretary to the Chairman told TechCrunch via email.

Transsion’s IPO prospectus is downloadable (in Chinese) and its STAR Market listing application available on the Shanghai Stock Exchange’s website.

STAR is the Shanghai Stock Exchange’s new Nasdaq-style board for tech stocks that also went live in July with some 25 companies going public. 

Headquartered in Shenzhen — where African e-commerce unicorn Jumia also has a logistics supply-chain facility — Transsion is a top-seller of smartphones in Africa under its Tecno brand.

The company has a manufacturing facility in Ethiopia and recently expanded its presence in India.

Transsion plans to spend the bulk of its STAR Market raise (1.6 billion yuan or $227 million) on building more phone assembly hubs and around 430 million yuan ($62 million) on research and development, including a mobile phone R&D center in Shanghai, a company spokesperson said. 

Transsion recently announced a larger commitment to capturing market share in India, including building an industrial park in the country for manufacture of phones to Africa.

The IPO comes after Transsion announced its intent to go public and filed its first docs with the Shanghai Stock Exchange in April. 

Listing on the STAR Market will put Transsion on the freshly minted exchange seen as an extension of Beijing’s ambition to become a hub for high-potential tech startups to raise public capital. Chinese regulators lowered profitability requirements for the exchange, which means pre-profit ventures can list.

Transsion’s IPO process comes when the company is actually in the black. The firm generated 22.6 billion yuan ($3.29 billion) in revenue in 2018, up from 20 billion yuan a year earlier. Net profit for the year slid to 654 million yuan, down from 677 million yuan in 2017, according to the firm’s prospectus.

Transsion sold 124 million phones globally in 2018, per company data. In Africa, Transsion holds 54% of the feature phone market — through its brands Tecno, Infinix and Itel — and in smartphone sales is second to Samsung and before Huawei, according to International Data Corporation stats.

Transsion has R&D centers in Nigeria and Kenya and its sales network in Africa includes retail shops in Nigeria, Kenya, Tanzania, Ethiopia and Egypt. The company also attracted attention for being one of the first known device makers to optimize its camera phones for African complexions.

On a recent research trip to Addis Ababa, TechCrunch learned the top entry-level Tecno smartphone was the W3, which lists for 3,600 Ethiopian Birr, or roughly $125.

In Africa, Transsion’s ability to build market share and find a sweet spot with consumers on price and features gives it prominence in the continent’s booming tech scene.

Diving deep into Africa’s blossoming tech scene

Africa already has strong mobile-phone penetration, but continues to undergo a conversion from basic USSD phones, to feature phones, to smartphones.

Smartphone adoption on the continent is low, at 34%, but expected to grow to 67% by 2025, according to GSMA.

This, added to an improving internet profile, is key to Africa’s tech scene. In top markets for VC and startup origination — such as Nigeria, Kenya, and South Africa — thousands of ventures are building business models around mobile-based products and digital applications.

If Transsion’s IPO enables higher smartphone conversion on the continent, that could enable more startups and startup opportunities — from fintech to VOD apps.

Another interesting facet to Transsion’s IPO is its potential to create greater influence from China in African tech, in particular if the Shenzhen company moves strongly toward venture investing.

China’s engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities — further boosted in recent years as Beijing pushes its Belt and Road plan.

Transsion’s IPO move is the second recent event — after Chinese owned Opera’s big venture spending in Nigeria — to reflect greater Chinese influence and investment in the continent’s digital scene.

So in coming years, China could be less known for building roads and bridges in Africa and more for selling smartphones and providing VC for African startups.

Opera founded startup OPay raises $50M for mobile finance in Nigeria

Read more: https://techcrunch.com/2019/08/07/africas-top-mobile-phone-seller-transsion-to-list-in-chinese-ipo/

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