Los Angeles About to Embark on a Smart City Experiment

As the U.S. Supreme Court considers a case about privacy and technology, Los Angeles, California, is becoming a city that is ever more connected. From cell phones to televisions to refrigerators, more devices are being connected to the Internet. L.A. wants to use the prevalence of these “smart” devices to help the city run more efficiently, turning it into a city of the future. VOA’s Elizabeth Lee has the details of the project and the security and privacy implications of a more connected city.

Tesla Plugs Biggest Battery into Australian Outback

The world’s biggest lithium-ion battery has plugged into an Australian state grid, delivering on a promise by Tesla Inc. chief executive Elon Musk.

Musk said he would build the 100-megawatt battery within 100 days of contracts for the project being signed at the end of September or hand it over to the South Australia state government for free.

South Australia Premier Jay Weatherill said Friday the battery had begun dispatching power to the state grid Thursday, providing 70 megawatts as temperatures rose above 30 degrees Celsius (86 degrees Fahrenheit).

The official launch came a little more than 60 days after the deal was signed. But crucially, it came on the first day of the Australian summer, the season when power usage soars because of the use of air conditioning.

Tesla Turns on World’s Largest Lithium Ion Battery

Tesla has switched on the world’s biggest lithium ion battery in Australia, meeting a promise by founder Elon Musk to build it within 100 days.

 

The billionaire inventor offered earlier this year to ensure the battery, which is connected to a wind farm, is built within 100 days or give it to the South Australia state government for free.

 

“South Australia is now leading the world in dispatchable renewable energy, delivered to homes and businesses 24/7,” South Australia Premier Jay Weatherill said as the battery began dispatching power into the state power grid Friday.

 

Tesla built the system to help ease energy shortages in South Australia and the launch Friday coincided with the beginning of summer in the Southern Hemisphere. The 129-megawatt-hour battery, located in the rural town of Jamestown north of Adelaide, can provide electricity for more than 30,000 homes and can also boost supply during peak demand periods.

The battery stores energy generated by the neighboring Hornsdale Wind Farm, owned by French renewable company Neoen, which partnered with Tesla to build the battery.

 

The battery farm is expected to help tackle power shortages in the summer when Australia experiences its highest energy usage. South Australia has faced a series of blackouts in recent years from extreme hot weather and storms, raising questions about its energy security.

 

Tesla said it was hopeful the project could be a model for future ventures in renewable energy.

 

Australia still relies on coal for nearly two-thirds of its electricity and the debate to expand into renewable energy has become politically charged.

Supporters of the new lithium battery say it will help stabilize the energy grid in South Australia, which uses a high percentage of wind and solar energy, while opponents see it as more of a Hollywood gimmick than a real solution.

 

The cost of the battery has not been made public.

Google’s Phones and Other Gadgets Have Had Bumpy Ride

Google, which prides itself on developing simple, intuitive software that seems to know what you want almost before you do, is finding itself in a very different world when it comes to its own phones and other gadgets.

Its new Pixel 2 phones, released in October, got high marks for their camera and design — at least until some users complained about “burned in” afterimages on their screens, a bluish tint, periodic clicking sounds and occasionally unresponsive touch commands.

Then the company’s new Home Mini smart speaker was caught always listening. Finally, its wireless “Pixel Buds” headset received savage reviews for a cheap look and feel, mediocre sound quality, and being difficult to set up and confusing to use.

In short, Google is re-learning an old adage in the technology business: Hardware is hard.

Growing pains

Google quickly extended the warranty on the Pixel 2 and tweaked software on the devices and its Home Mini in an attempt to fix the troublesome issues. (It hasn’t had much to say about the Pixel Buds.) Still, the problems served as a high-profile reminder of the company’s inexperience in making consumer electronics — a field where Apple has a 40-year head start.

But the company insists that its problems are being blown out of proportion.

“I believe, quite frankly, that Google has a spotlight on it,” Rick Osterloh, the executive in charge of the company’s hardware division, said in an interview with The Associated Press. “Things that would normally be pretty minor issues are a bit amplified in today’s environment.”

Of course, Google has actively courted this spotlight. In 2016, Osterloh took the stage at a product event to tout the Pixel phone as “the best of hardware and software, designed and built by Google.” The company is also currently running a major ad campaign to draw attention to its gizmos for the holiday shopping season.

“Being a software company is an entirely different animal from being a hardware company,” said technology analyst Jan Dawson of Jackdaw Research. “The cultures are very different and there are more moving parts in hardware, so you have to learn along the way.”

Google has to realize a “fail fast” philosophy that worked well for free software products doesn’t work as well for smartphones that cost hundreds of dollars, said analyst Ross Rubin of Reticle Research.

Software “can be more forgiving of that development philosophy,” he said. “You can’t do that with atoms. You risk some backlash.”

Hardware full of Google

Google’s push into devices, which includes its own Wi-Fi routers and an older line of web-based notebook computers, has become a key strategy for the internet giant. It sees these gadgets as a way to ensure services such as search, maps, Gmail, and its voice-activated assistant remain prominent as personal computing expands on mobile devices and new smart gizmos in homes.

All those Google services are baked into Android, which powers more than 2 billion devices worldwide — but device makers such as Samsung that use the free software also can make adjustments to highlight their own products instead. And Apple only uses Google’s search engine as a built-in service on iPhones, and that’s only because Google pays billions of dollars annually for the access.

The Pixel phones and Home speakers also serve as a showcase and data-collection tool for the Google Assistant, its voice-activated digital concierge. The virtual assistant is key to Google’s artificial-intelligence efforts, aimed at making computers that constantly learn new things and eventually seem more human than machine.

Slow start

The Pixels, however, got off to a slow start. Google sold only 2.8 million of the first-generation model, accounting for about 0.1 percent of the market, according to the research firm International Data Corp.

Such a low sales volume makes it more difficult to acquire the highest-quality components for hardware, particularly when suppliers make it a priority to meet the demands of market leaders Apple and Samsung.

Apple is expected to sell between 230 million and 250 million iPhones during the fiscal year ending in September.

Like the Pixel 2s, the new iPhone X features an OLED screen to display more vibrant colors. And like the Pixel 2 XL, the iPhone X’s screen may also display a bluish tint and suffer “image retention” that makes it look like something has burned into the screen, by Apple’s own admission.

As part of its effort to catch up to Apple and Samsung, Google recently acquired more expertise in a $1.1 billion deal with device maker HTC that included the brought in 2,000 more smartphone engineers and certain hardware technologies.

But Edison Investment Research analyst Richard Windsor believes many consumers will balk at paying a premium price for the Pixel 2 (prices start at $650), given its troubles. “It appears that the best way to get the most value from Google services is still to use them on another device,” Windsor said.

Facebook Suspends Ability to Target Ads by Excluding Racial Groups

Facebook Inc. said on Wednesday it was temporarily disabling the ability of advertisers on its social network to exclude racial groups from the intended audience of ads while it studies how the feature could be used to discriminate.

Facebook’s chief operating officer, Sheryl Sandberg, told African-American U.S. lawmakers in a letter that the company was determined to do better after a news report said Facebook had failed to block discriminatory ads.

The U.S.-based news organization ProPublica reported last week that, as part of an investigation, it had purchased discriminatory housing ads on Facebook and slipped them past the company’s review process, despite claims by Facebook months earlier that it was able to detect and block such ads.

“Until we can better ensure that our tools will not be used inappropriately, we are disabling the option that permits advertisers to exclude multicultural affinity segments from the audience for their ads,” Sandberg wrote in the letter to the Congressional Black Caucus, according to a copy posted online by ProPublica.

It is unlawful under U.S. law to publish certain types of ads if they indicate a preference based on race, religion, sex or certain classifications.

Facebook, the world’s largest social network with 2.1 billion users and $36 billion in annual revenue, has been on the defensive for its advertising practices.

In September, it disclosed the existence of Russia-linked ads that ran during the 2016 U.S. election campaign. The same month it turned off a tool, also reported by ProPublica, that had inadvertently let advertisers target based on people’s self-reported jobs, even if the job was “Jew hater.”

Sandberg said in the letter that advertisers who use Facebook’s targeting options to include certain races for ads about housing, employment or credit will have to certify to Facebook that they are complying with Facebook’s anti-discrimination policy and with applicable law.

Sandberg defended race- and culture-based marketing in general, saying it was a common and legitimate practice in the ad industry to try to reach specific communities.

U.S. Representative Robin Kelly of Illinois, a member of the Congressional Black Caucus, said Facebook’s action was appropriate.

“When I first raised this issue with Facebook, I was disappointed,” Kelly, a Democrat, said in a statement. “When it became necessary to raise the issue again, I was irritated. Thankfully, we’ve been able to establish a constructive pipeline of communication that’s resulted in a positive step forward.”

Cloud Clothing Packs Computing Power Under Your Shirt

For individuals, storing information in the cloud means it can be available to them anywhere they have a connection to the internet. It can be cheap, and it can be useful, but because all that data is going back and forth, it’s not quite as secure as storing everything on your phone or home computer. But what if you could wear your information? That’s the idea behind some National Science Foundation-supported research into cloud clothing. VOA’s Kevin Enochs reports.

Snapchat Seeks to Attract More Users by Redesigning App

Snapchat is separating what friends share and what media organizations publish in an attempt to appeal to a broader range of users.

The photo messaging app has not been gaining enough users, especially beyond its core of younger people. Parent company Snap Inc.’s stock is down sharply since its initial public offering earlier this year.

Users will now see two separate feeds — one from friends and one from publishers and non-friend accounts they follow. Before, Snapchat was mixing those posts, much the way Twitter, Facebook and other rivals continue to do. Snap hinted at changes three weeks ago, but didn’t provide details then.

CEO Evan Spiegel took a jab at rivals, writing that social media “fueled ‘fake news’” because of this content mixing.

 

US Supreme Court Considers Limits on Government in Key Privacy Case

The U.S. Supreme Court signaled Wednesday it may be open to new limits on the government’s ability to track someone’s movements by accessing data on that person’s cellphone.

A case before the high court could result in a landmark decision in the ongoing debate over civil liberties protections in an era of rapid technological change.

At issue is whether law enforcement will be able to access cellphone data that can reveal a person’s whereabouts without having to first obtain a court-issued search warrant.

The case stems from the conviction of Timothy Carpenter for a series of robberies back in 2010 and 2011. Prosecutors were able to obtain cellphone records that indicated his location over a period of months, information that proved crucial to his conviction.

Get a warrant

On Wednesday, lawyers for the American Civil Liberties Union argued that law enforcement should be required to obtain a court-ordered search warrant before obtaining such information.

They also argued that allowing law enforcement to access the cellphone data without a warrant would violate the prohibition on unreasonable search and seizures contained in the Fourth Amendment to the U.S. Constitution.

“It is impossible to go about our daily lives without leaving a trail of digital breadcrumbs that reveal where we have been over time, what we have done, who we spent time with,” said ACLU attorney Nathan Freed Wessler, who spoke to reporters outside the Supreme Court following oral arguments. “It is time for the court, we think, to update Fourth Amendment doctrine to provide reasonable protections today.”

Some of the justices also raised concerns about privacy in the digital age.

“Most Americans, I think, still want to avoid Big Brother,” Justice Sonia Sotomayor, who often sides with the liberal wing of the court, said.

Chief Justice John Roberts, who often sides with conservatives on the court, said the central question was whether the cellphone information should be accessible to the government “without a warrant.”

Privacy versus security

Justice Department lawyers defended the process of obtaining the data without a court warrant, arguing that even though the technology has changed, the need to rapidly obtain such information for law enforcement has not. The government also argued that privacy rights are not at issue because law enforcement agencies can obtain information from telecommunications companies that record transactions with their customers.

Justices Samuel Alito and Anthony Kennedy indicated they were open to the government’s position in the case.

Legal experts say whichever way the court eventually rules could have an enormous impact on privacy rights in the digital age.

“I don’t think that this is a world that anybody anticipated a couple of decades ago,” Stanford University law professor David Alan Sklansky said via Skype. “These new data capabilities are rapidly increasing the things that government can do for good and for evil. And figuring out how we allow the government to make full use of these new capabilities, without endangering political liberties and endangering the privacy that is necessary for us to have the kind of flourishing democratic social life we want, is a huge ongoing challenge.”

Sklansky added that the United States “has historically been a leader in thinking about privacy rights, particularly with regard to privacy from the government.”

And he predicted that other countries will be closely following the high court case as they wrestle with similar conflicts. “This is a global problem. Countries around the world are trying to figure out how to deal with it. I think that people in all democratic countries should care about how the United States winds up resolving this question,” he said.

Past rulings

Twice in recent years the Supreme Court has ruled in major cases related to privacy and technology and both times ruled against law enforcement.

The court ruled in 2012 that a warrant is required to place a GPS tracking device on a vehicle. And in 2014, the high court ruled that a warrant is required to search a cellphone seized during an arrest.

A decision in the current case, known as Carpenter v. U.S., is expected sometime before the end of June.

Things You Might Not Know About Bubbly Bitcoin

Bitcoin blasted past $11,000 to hit a record high for the sixth day in a row on Wednesday after gaining more than $1,000 in just 12 hours, stoking concerns that a rapidly swelling bubble could be set to burst in spectacular

fashion.

Here are some facts that you might not know about the largest and best-known cryptocurrency.

HOW MANY ARE THERE?

Bitcoin’s supply is limited to 21 million — a number that is expected to be reached around the year 2140. So far, around 16.7 million bitcoins have been released into the system, with 12.5 new ones released roughly every 10 minutes via a process called “mining,” in which a global network of computers competes to solve complex algorithms in reward for the new bitcoins.

ENERGY DRAIN

These mining computers require a vast amount of energy to run. A recent estimate by tech news site Motherboard put the energy cost of a single bitcoin transaction at 215 kilowatt-hours, assuming that there are around 300,000 bitcoin transactions per day. That’s almost enough energy as the average American household consumes in a whole week.

BITS OF BITCOIN

Bitcoin’s smallest unit is a Satoshi, named after the elusive creator of the cryptocurrency, Satoshi Nakamoto. One Satoshi is one hundred-millionth of a bitcoin, making it worth around $0.0001 at current exchange rates.

BITCOIN BILLIONAIRES

Bitcoin has performed better than every central-bank-issued currency in every year since 2011 except for 2014, when it performed worse than any traditional currency. So far in 2017, it is up around 1000 percent. If you had bought $1,000 of bitcoin at the start of 2013 and had never sold any of it, you

would now be sitting on $80 million. Many people consider bitcoin to be more of a speculative instrument than a currency, because of its volatility, increasingly high transaction fees, and the fact that relatively few merchants accept it.

EXCHANGE HEISTS

More than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That’s a total of more than $10 billion at current exchange rates. Few have been recovered.

MYSTERY CREATOR

Despite many attempts to find the creator of bitcoin, and a number of claims, we still do not know who Satoshi Nakamoto is, or was. Australian computer scientist and entrepreneur Craig Wright convinced some prominent members of the bitcoin community that he was Nakamoto in May 2016, but he then refused to provide the evidence that most of the community said was necessary. It is not clear whether Satoshi Nakamoto, assumed to be a pseudonym, was a name used by a group of developers or by one individual. Nor is it clear that Nakamoto is still alive — the late computer scientist Hal Finney’s name is sometimes put forward. Developer Nick Szabo has denied claims that he is Nakamoto, as has tech entrepreneur Elon Musk more recently.

INFLATED CHINESE TRADING

Until earlier this year, it was thought that Chinese exchanges accounted for around 90 percent of trading volume. But it has become clear that some exchanges inflated their volumes through so-called wash trades, repeatedly trading nominal amounts of bitcoin back and forth between accounts. Since the Chinese authorities imposed transaction fees, Chinese trading volumes have fallen sharply, and now represent less than 20 percent, according to data from website Bitcoinity.

“MARKET CAP”

The total value of all bitcoins released into the system so far has now reached as high as $190 billion. That makes its total value — sometimes dubbed its “market cap” — greater than that of Disney, and bigger than the market cap of BlackRock and Goldman Sachs combined.

CRYPTO-RIVALS

Bitcoin is far from the only cryptocurrency. There are now well over 1,000 rivals, according to trade website Coinmarketcap. 

“SHORTING”

It is already possible to short bitcoin on a number of retail platforms and exchanges, via contracts for difference (CFDs), leveraged-up margin trading or by borrowing bitcoin from exchanges without leverage. But a number of big financial institutions — including CME Group, CBOE and Nasdaq — have

recently announced that they will offer bitcoin futures, which will open up the possibility of shorting the cryptocurrency to the mainstream professional investment universe.

Reporting by Jemima Kelly.

Microsoft Plans to Rebuild its Headquarters

Microsoft says it’s overhauling its longtime headquarters with an 18-building construction project that will make room for another 8,000 workers.

The announcement came ahead of the company’s annual shareholders meeting Wednesday.

Microsoft’s decision to expand on the footprint of its campus in Redmond, Washington, its home since 1986, is in contrast to the highly-publicized office expansion plans of Seattle-based Amazon.

Amazon has been looking at cities across North America for a spot to build a second headquarters that will be as big at its Seattle hub.

Microsoft Corp.’s current Redmond campus employs about 47,000 people in 125 buildings. The company says its project will include renovations and new construction and will take 5 to 7 years.

It’s also promising $150 million in transportation improvements and other public amenities.

India Unveils New Recommendations to Reinforce Strict Net Neutrality

India has strongly backed a free and open Internet, with its telecom regulator recommending stringent regulations on net neutrality – the concept of ensuring equal access to the web — saying it is important the Internet is not “cannibalized.”

 

India’s push for net neutrality comes at a time when the United States has unveiled plans to roll back regulations on it.

 “The core principles of net neutrality, non-discriminatory treatment of all content, we’ve upheld them,” R.S. Sharma, Chairman of the Telecom Regulatory Authority of India, TRAI, told reporters as he unveiled recommendations following a year-long debate.

These proposals seek to prohibit any service provider from blocking or offering preferential data speeds which essentially means that telecom providers cannot create “fast lanes” for higher paying customers or speed up or slow down websites and apps.

Equal access

Advocates of net neutrality, who have led an impassioned battle to ensure equal web access, welcomed the latest recommendations, saying that these would ensure that India is among countries with the strictest net neutrality rules in the world. Last year India put in place rules that prohibited telecoms from differential pricing.

India’s IT industry lobby, NASSCOM, in a statement, said the reaffirmation of net neutrality would be a “shot in the arm” for the country’s digital economy.

Nikhil Pahwa, one of the founders of Internet Freedom Foundation, which has campaigned for strict net neutrality, says open access to the Internet is critical for India.

“This is really, really essential. It is important for India because we are at the cusp of great Internet growth and innovation with lots of start-ups coming up and students and people developing things online,” he said.

India’s stand on net neutrality had last year effectively blocked efforts by Facebook to offer free but limited access to the web in the country’s fast growing Internet market.

The company said it wanted to expand access to the net in poor, rural areas but digital rights activists had slammed the plan as “poor Internet for poor people” and said it would create a “walled garden” in which Facebook would control the content it offered users. A Facebook spokesperson at the time said the company was disappointed by the outcome but would continue its efforts to “eliminate barriers.”

80 million users

Supporters of an open Internet point out that India’s experience demonstrates that net neutrality rules are not hampering access to the Internet in a country where many people are still not connected to the web.

“In the last year alone we have added about 80 million Internet users. There has been a substantial increase in Internet access in the country and it is increasing rapidly despite net neutrality. So this notion that net neutrality is adversarial to growth of Internet access or to sustainability of mobile operators is incorrect,” said Pahwa.

India’s position on ensuring an open Internet is in contrast to the U.S., where last week the U.S. Federal Communications Commission unveiled plans to repeal net neutrality rules, saying they discourage Internet service providers from making investments in their network to provide better and faster online access.

India’s strict net neutrality rules have disappointed private telecom providers, who had hoped for some leeway in the latest recommendations.

In an oblique reference to the U.S. position, a statement from the telecom industry’s main lobby group, the Cellular Operators Association of India, said that at a time when, globally, countries are adopting a more “market oriented, and market driven approach to net neutrality in order to not stifle development, innovation, proliferation and growth of the Internet, we believe TRAI should have adopted a light touch approach to net neutrality.”