Verizon

Verizon lays off more Yahoo/AOL employees after another drop in revenue

A Verizon logo displayed along with stock prices at the New York Stock Exchange.

Enlarge / A monitor seen on the floor of the New York Stock Exchange on Tuesday, Sept. 4, 2018.

Verizon this week is laying off another 150 staffers from the Verizon Media division that includes the Yahoo and AOL subsidiaries, according to a CNN report.

“Verizon Media employs around 10,500 people, so these cuts will amount to 1.4 percent of its work force. It’s unclear which brands will be affected,” CNN wrote.

A Verizon spokesperson confirmed the layoffs, according to the CNN article. We contacted Verizon today and will update this article if we get any more information.

The latest layoffs are less extensive than a major round of job cuts in January 2019. Verizon at that time laid off about 800 people, or about seven percent of the 11,385 workers then employed by Verizon Media.

Verizon purchased Yahoo for $4.48 billion in June 2017 and AOL for $4.4 billion in June 2015. But Verizon’s strategy of acquiring declining online media brands hasn’t been successful in challenging Google and Facebook in the advertising market.

In December 2018, Verizon said in a Securities and Exchange Commission filing that it had “experienced increased competitive and market pressures throughout 2018 that have resulted in lower-than-expected revenues and earnings,” and that “[t]hese pressures are expected to continue.” Verizon at the time recorded a non-cash goodwill impairment charge of about $4.6 billion, wiping out nearly all of the Yahoo/AOL division’s goodwill value.

In Q3 2019, the most recent quarter, Verizon reported media-division revenue of $1.8 billion, down two percent year over year. The two-percent decline represented an “improvement in revenue trends,” Verizon said. “Gains in native and mobile advertising continue to be offset by declines in desktop advertising, though the business is building momentum in key areas.”

“We are migrating customers to our recently integrated native and demand-side advertising platforms with double-digit growth year over year,” Verizon CFO Matt Ellis said in an earnings call on October 25. “For the first time, we are seeing mobile traffic increases outpace desktop traffic declines in our core owned and operated products, including sports, finance, news, entertainment, home and mail.”

Verizon Media CEO Guru Gowrappan said last month that the company is focused on growing the division’s advertising, subscriptions, and e-commerce businesses, according to the CNN report.

“Today we are investing in premium content, connections, and commerce experiences that connect people to their passions and continue to align our resources to opportunities where we feel we can differentiate ourselves and scale faster,” Verizon said in a statement about this week’s layoffs.

Verizon reportedly blocks archivists from Yahoo Groups days before deletion

Screenshot of the Yahoo Groups home page, showing a collection of people jumping in the air and a message that says,

Enlarge / The Yahoo Groups home page (for now).

An ad-hoc group scrambling to archive as much content as possible from Yahoo Groups ahead of the site’s final demise next week is running into trouble as more than a hundred volunteer archivists say Yahoo’s parent company, Verizon, has banned their accounts.

Yahoo Groups has been on the wane for years, but Verizon announced its official date of death two months ago. Users were blocked from uploading or posting new content to the site as of October 28, and all content currently on the site is slated to be deleted on December 14—less than one week from now.

Members of the Archive Team have been working rapidly to preserve content from as many groups as possible in that six-week time frame. The volunteers have been using “semi-automated” scripts to join groups rapidly and are using a third-party tool known as PGOffline to access messages, photos, and files not captured by Verizon/Yahoo’s data download or export tool. They estimate that as a result of this weekend’s blocks, they have now lost access to 80 percent of the material they were attempting to preserve.

One volunteer working on the effort shared a response she received from Verizon in a blog post yesterday. The Verizon representative said the 128 volunteers from Archiveteam.org, who joined groups with the intent of archiving them, were banned for violating the Verizon Media terms of service and would not be able to have their accounts reinstated.

“I understand your usage of groups is different from the majority of our users, and we understand your frustration,” the Verizon employee added. “However, the resources needed to maintain historical content from Yahoo Groups pages is cost-prohibitive, as they’re largely unused.”

This is not the first time Verizon and the Archive Team have butted heads. Almost exactly a year ago, members of the Archive Team working to preserve Tumblr content had their accounts banned. In that case, however, volunteers found their way around Verizon’s block and continued their work within a day.

The Organization for Transformative Works—the nonprofit best known for running the decade-old, Hugo-winning fanfiction site Archive of Our Own—has joined the chorus calling on Verizon to postpone the deletion date by six months, until May 14, 2020, in order to allow volunteers to archive more material.

Ars has asked Verizon for comment and will update this story if we hear back.

FCC tries to bury finding that Verizon and T-Mobile exaggerated 4G coverage

A photo of Ajit Pai.

Enlarge / Ajit Pai, chairman of the Federal Communications Commission, during an interview in New York, on Tuesday, Nov. 5, 2019. (credit: Getty Images | Bloomberg)

Verizon, T-Mobile, and US Cellular exaggerated their 4G coverage in official filings to the Federal Communications Commission, an FCC investigation found. But FCC officials confirmed that Chairman Ajit Pai does not plan to punish the three carriers in any way. Instead, the FCC intends to issue an enforcement advisory to the broader industry, reminding carriers “of the penalties associated with filings that violate federal law.”

“Overstating mobile broadband coverage misleads the public and can misallocate our limited universal service funds, and thus it must be met with meaningful consequences,” FCC staff said in an investigative report released today.

But there won’t be any meaningful consequences for Verizon, T-Mobile, and US Cellular. “Based upon the totality of the circumstances, the investigation did not find a sufficiently clear violation of the MF-II [Mobility Fund Phase II] data collection requirements that warranted enforcement action,” an FCC spokesperson told Ars via email.

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5G won’t change everything, or at least probably not your things

Artist's impression of millimeter-wave 5G speeds.

Enlarge / Artist’s impression of millimeter-wave 5G speeds.
Aurich Lawson / Getty

The long-touted fifth generation of wireless communications is not magic. We’re sorry if unending hype over the world-changing possibilities of 5G has led you to expect otherwise. But the next generation in mobile broadband will still have to obey the current generation of the laws of physics that govern how far a signal can travel when sent in particular wavelengths of the radio spectrum and how much data it can carry.

For some of us, the results will yield the billions of bits per second in throughput that figure in many 5G sales pitches, going back to early specifications for this standard. For everybody else, 5G will more likely deliver a pleasant and appreciated upgrade rather than a bandwidth renaissance.

That doesn’t mean 5G won’t open up interesting possibilities in areas like home broadband and machine-to-machine connectivity. But in the form of wireless mobile device connectivity we know best, 5G marketing has been writing checks that actual 5G technology will have a lot of trouble cashing.

A feuding family of frequencies

The first thing to know about 5G is that it’s a family affair—and a sometimes-dysfunctional one.

Wireless carriers can deploy 5G over any of three different ranges of wireless frequencies, and one of them doesn’t work anything like today’s 4G frequencies. That’s also the one behind the most wild-eyed 5G forecasts.

Millimeter-wave 5G occupies bands much higher than any used for 4G LTE today—24 gigahertz and up, far above the 2.5 GHz frequency of Sprint, hitherto the highest-frequency band in use by the major US carriers.

At those frequencies, 5G can send data with fiber optic speeds and latency—1.2 Gbps of bandwidth and latency from 9 to 12 milliseconds, to cite figures from an early test by AT&T. But it can’t send them very far. That same 2018 demonstration involved a direct line of sight and only 900 feet of distance from the transmitter to the test site.

Those distance and line-of-sight hangups still persist, although the US carriers that have pioneered millimeter-wave 5G say they’re making progress in pushing them outward.

“Once you get enough density of cell sites, this is a very strong value proposition,” said Ashish Sharma, executive vice president for IoT and mobile solutions at the wireless-infrastructure firm Inseego. He pointed in particular to recent advances in solving longstanding issues with multipath reception, when signals bounce off buildings.

There are a lot of "5G" stock images available. Some of them are more optimistic than others. This is one of the more optimistic ones.

Enlarge / There are a lot of “5G” stock images available. Some of them are more optimistic than others. This is one of the more optimistic ones.
Photographer is my life / Getty

Reception inside those buildings, however, remains problematic. So does intervening foliage. That’s why fixed-wireless Internet providers using millimeter-wave technology like Starry have opted for externally placed antennas at customer sites. Verizon is also selling home broadband via 5G in a handful of cities.

Below millimeter-wave, wireless carriers can also serve up 5G on mid- and low-band frequencies that aren’t as fast or responsive but reach much farther. So far, 5G deployments outside the US have largely stuck to those slower, lower-frequency bands, although the industry expects millimeter-wave adoption overseas to accelerate in the next few years.

“5G is a little more spectrally efficient than 4G, but not dramatically so,” mailed Phil Kendall, director of the service provider group at Strategy Analytics. He added that these limits will be most profound on existing LTE spectrum turned over to 5G use: “You are not going to be able to suddenly give everyone 100Mbps by re-farming that spectrum to 5G.”

And even the American carriers preaching millimeter-wave 5G today also say they’ll rely on these lower bands to cover much of the States.

For example, T-Mobile and Verizon stated early this year that millimeter-wave won’t work outside of dense urban areas. And AT&T waited until it could launch low-band 5G in late November to start selling service to consumers at all; the low-resolution maps it posted then show that connectivity reaching into suburbs.

Sprint, meanwhile, elected to launch its 5G service on the same 2.5GHz frequencies as its LTE, with coverage that is far less diffuse than millimeter-wave 5G. Kendall suggested that this mid-band spectrum will offer a better compromise between speed and coverage: “Not the 1Gbps millimeter-wave experience but certainly something sustainable well in excess of 100Mbps.”

The Federal Communications Commission is working to make more mid-band spectrum available, but that won’t be lighting up any US smartphones for some time.

(Disclosure: I’ve done a lot of writing for Yahoo Finance, a news site Verizon owns.) 

Mobile industry has stifled eSIM—and the DOJ is demanding change

Illustration of a smartphone with the word

The US Department of Justice has given its tentative approval to a wireless-industry plan to revise eSIM standards, saying that new safeguards should prevent carriers from colluding against competitors in the standards-setting process. But the DOJ warned the industry that it must eliminate anti-competitive provisions from the current eSIM standard or face possible antitrust enforcement.

The DOJ last year began investigating AT&T, Verizon, and the GSMA, a trade group that represents mobile carriers worldwide. The antitrust enforcer found that incumbent carriers stacked the deck against competitors while developing an industry standard for eSIM, the embedded SIM technology that is used instead of removable SIM cards in new smartphones and other devices.

In theory, eSIM technology should make it easier to switch carriers or use multiple carriers because the technology doesn’t require swapping between physical SIM cards. But how it works in practice depends heavily on whether big carriers dominate the standard-setting process.

The DOJ investigation found that “the GSMA and its mobile network operator members used an unbalanced standard-setting process, with procedures that stacked the deck in their favor, to enact an RSP (Remote SIM Provisioning) Specification that included provisions designed to limit competition among networks,” the agency said last week.

That flawed process resulted in RSPv2, which makes it easy for a carrier to lock eSIM-equipped smartphones to its network, the DOJ said. The standard has so-called “profile policy rules” that require smartphones to “contain the capability for operator-controlled locking in order to be considered compliant with the RSP Specification,” the DOJ said. These provisions “may restrict the pro-competitive potential of eSIMs without being necessary to achieve remote provisioning or to solve an interoperability problem,” the DOJ said.

The current standard also has provisions that make it harder for phones to automatically switch between networks when the phone “detects stronger network coverage or a lower-cost network,” the DOJ said. The standard also “prevents an eSIM from actively using profiles from multiple carriers simultaneously.”

DOJ will watch and wait

Despite that, the DOJ said it won’t file an antitrust lawsuit. That’s because the GSMA agreed to a new standard-setting process that addressed DOJ concerns and will use that process to develop a new standard that will replace RSPv2. The DOJ said it is satisfied by the GSMA’s process changes but that it will monitor the implementation of the new standard and may take action if the GSMA doesn’t remove anti-competitive provisions in the next version of RSP.

The GSMA described its new process—called AA.35—in a letter to the DOJ in July, and DOJ antitrust chief Makan Delrahim provided an update on the agency’s “present enforcement intentions regarding GSMA’s proposal” in a letter to the GSMA last week. The DOJ said it “presently has no intention to challenge AA.35, if it goes into effect,” because the new process “includes sufficient protections to minimize the chances of anticompetitive self-dealing inside the GSMA if it is applied as contemplated.”

However, the DOJ said it “will closely observe how AA.35 is applied and whether it succeeds in promoting interoperability.” The DOJ also warned the GSMA that if carriers form separate agreements to limit competition, “such agreements are always subject to independent antitrust scrutiny.”

What the industry agreed to

Originally, the GSMA let non-carriers such as smartphone manufacturers participate in the standard-development process but made sure that all final decisions were controlled by mobile carriers. The DOJ said it was “concerned that the GSMA’s operator-dominated process was used with the purpose and effect of altering what would otherwise have been competitive negotiations between the operators and smartphone manufacturers (‘OEMs’) over the design and implementation of eSIMs.”

But after the DOJ began investigating, the GSMA came up with the alternative AA.35 process. As the DOJ noted, “AA.35 creates a two-stage process, with an Industry Specification Issuing Group (‘ISIG’) that creates the standards and an Industry Specification Approving Group (‘ISAG’) that approves the standards.”

ISIG membership is open “to all members, ensuring that there will not be operator-exclusive committees driving the process,” the DOJ continued. Non-carriers can become members of the ISAG, which “eliminates the complete control that operators previously had and instead gives all parts of the industry an opportunity to be represented,” the DOJ said.

Another safeguard prevents standards from being approved without the consent of smartphone makers. “At the ISAG level, [AA.35] requires approval of standards by separate majorities of the ISAG operator- and non-operator members,” the DOJ said. “Both bodies require an explanation of negative votes, another improvement that increases transparency and indicates meaningful attempts to reach consensus.”

Another new provision allows for appeals to be heard by an independent panel. Finally, operators can’t bypass or change this process “without the support of non-operator members” because the dual-majority voting structure requires consent of both groups, the DOJ said.

Getting rid of anti-competitive provisions

The current version of the eSIM standard, which was passed under the old, flawed process, has “several key features that have restricted the disruptive potential of eSIMs to date,” the DOJ said. That’s a reference to the phone-locking provision described earlier in this article and “provisions that restrict the number of active profiles on an eSIM or impede the user’s ability to consent to dynamic profile switching,” the DOJ said.

For example, RSPv2 requires consumers to give their approval each time an eSIM “toggles between profiles or networks,” preventing the scenario where a phone automatically switches between networks “if it detects stronger network coverage or a lower-cost network,” the DOJ said.

A RSPv2 prohibition on using profiles from multiple carriers simultaneously could prevent scenarios where users have their phone divided into work-related and personal profiles or multiple “profiles optimized for different coverage areas or for international travel,” the DOJ said. Incumbent carriers apparently wanted that restriction to undercut “a potential competitive threat [that] would allow a user to divide usage across operators,” the DOJ said.

When the GSMA uses its new AA.35 process to create a new standard, the DOJ said it expects the group to reconsider those anti-competitive rules.

“The Department will take a special interest in whether RSPv3 includes provisions that are motivated only by the incumbent operators’ interest in gaining a competitive advantage or stifling new sources of competition,” Delrahim warned the GSMA. The DOJ “reserves the right to bring an enforcement action in the future” if the GSMA’s implementation of AA.35 “proves to be anticompetitive in purpose or effect,” he wrote.

Sale of 4 Million Stolen Cards Tied to Breaches at 4 Restaurant Chains

Security Design

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