Study: Africa Set to Top 1 Billion Mobile Internet Connections in 5 Years

Africa’s mobile internet connections are set to double in the next five years, a study showed on Monday, thanks to affordable smartphones and the roll-out of high-speed networks.

A report by research and consulting firm Ovum in London estimates that mobile broadband connections will rise from 419 million at the end of this year to 1.07 billion by the end of 2022.

“Data connectivity is growing strongly in Africa, and there are also good prospects on the continent in areas such as digital media, mobile financial services, and the Internet of Things,” said Matthew Reed, Practice Leader Middle East and Africa at Ovum.

“But as Africa’s TMT market becomes more convergent and complex, service providers are under increasing pressure to make the transition from being providers of communications services, and to become providers of digital services.”

Mobile phone operators such as MTN Group, Orange and Bharti Airtel are investing heavily in high-speed networks to meet demand from users who are increasingly using phones for everything from paying their bills to streaming videos and surfing the internet.

Broadcom Offers $103 Billion for Qualcomm, Sets Up Takeover Battle

Chipmaker Broadcom made an unsolicited $103 billion bid for Qualcomm on Monday, setting the stage for a major takeover battle as it looks to dominate the fast-growing market for semiconductors used in mobile phones.

Qualcomm said it would review the proposal. The San Diego-based company is inclined to reject the bid as too low and fraught with risk that regulators may reject it or take too long to approve it, people familiar with the matter told Reuters.

A Broadcom-Qualcomm deal would create a dominant company in the market for supplying chips used in the 1.5 billion or so smartphones expected to be sold around the world this year. It would raise the stakes for Intel Corp, which has been diversifying from its stronghold in computers into smartphone technology by supplying modem chips to Apple.

Qualcomm shareholders would get $60 in cash and $10 per share in Broadcom shares in a deal, according to Broadcom’s proposal. Including debt, the transaction is worth $130 billion.

GBH Insight analyst Daniel Ives said bullish investors were hoping for $75 to $80 per share.

“Now it’s a game of high-stakes poker for both sides,” he said.

Shares of Qualcomm, whose chips allow phones to connect to wireless data networks, traded above $70 as recently as December 2016 and topped $80 in 2014.

Qualcomm’s shares were up 2 percent at $63.09 at mid-afternoon, suggesting investors were skeptical a deal would happen.

Broadcom shares fell 0.3 after hitting a record high of $281.80.

Regulatory scrutiny

Qualcomm’s largest market is the so-called modem chips that allow phones to use mobile data plans, but it also sells connectivity chips for automobiles that handle “infotainment” systems and wireless electric vehicle charging. Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

Any deal struck between the two companies would face intense regulatory scrutiny. A big hurdle would be getting regulatory approval in China, on which both Qualcomm and Broadcom rely on to make money.

China is set to look at any deal closely after U.S. regulators blocked a flurry of chip deals by Chinese firms due to security concerns, thwarting the Asian country’s attempt to become self-reliant in chip manufacturing.

Broadcom could spin out Qualcomm’s licensing arm, QTL, to get regulatory approval and funding for the deal, raising as much at $25 billion from a sale, Nomura Instinet analyst Romit Shah suggested.

Broadcom had $5.25 billion in cash and cash equivalent as of July 30. Qualcomm had $35.03 billion as of Sept. 24.

Broadcom said BofA Merrill Lynch, Citi, Deutsche Bank, JP Morgan and Morgan Stanley have advised it they are highly confident that they will be able to arrange the necessary debt financing for the proposed transaction.

The company has also got a commitment letter for $5 billion in financing from private equity Silver Lake Partners, an existing Broadcom investor.

Vulnerable Qualcomm

Broadcom approached Qualcomm last year to discuss a potential combination, but did not contact Qualcomm prior to unveiling its $70 per share offer Monday, according to sources.

Qualcomm is more vulnerable to a takeover now because its shares have been held down by a patent dispute with key customer Apple, as well as concerns that it may have to raise a $38 billion bid for NXP Semiconductors NV that it made last year.

Broadcom, Qualcomm and NXP together would have control over modems, Wi-Fi, GPS and near-field communications chips, a strong position that could concern customers such as Apple and Samsung Electronics because of the bargaining power such a combined company could have to raise prices. However, a combined company would also likely have a lower cost base and the flexibility to cut prices.

Broadcom said its proposal stands irrespective of whether Qualcomm’s acquisition of NXP goes through or not.

Qualcomm’s entire 10-member board is up for re-election this spring, and Broadcom could seize on the Dec. 7 nomination deadline to put forward its own slate.

Broadcom Chief Executive Hock Tan, who turned a small, scrappy chipmaker into a $100-billion company based in Singapore and the United States, told Reuters he would not rule out a proxy fight.

“We are well advised and know what our options are, and we have not eliminated any of those options,” said Tan, who has pulled off a string of deals over the past decade. “We have a very strong desire to work with Qualcomm to reach a mutually beneficial deal.”

Tan added that if Broadcom acquires Qualcomm which in turn has acquired NXP, the combined company’s net debt could be in the range of $90 billion.

Two Qualcomm directors, Anthony Vinciquerra and Mark McLaughlin, have been aligned with activist hedge fund Jana Partners LLC, which pushed for a shakeup of the company two years ago. Jeffrey Henderson, another Qualcomm board director, was added last year as a compromise candidate.

Apple, as a key customer, could pose a risk to the deal, said Karl Ackerman, an analyst at Cowen.

Tan told Reuters that Broadcom taking over Qualcomm would improve relations with Apple: “We believe we can be very constructive in resolving these issues and resetting relationships.”

Broadcom plans to move its headquarters solely to the United States, which would allow it to avoid review by the Committee on Foreign Investment in the United States, which reviews foreign ownership of U.S. assets.

Broadcom’s offer represents a premium of 27.6 percent to Qualcomm’s closing price of $54.84 on Thursday, a day before media reports of a potential deal pushed up the company’s shares.

Deterring Sheep Rustlers with High Tech

Rustlers, the villains in countless Wild West movies, are a very real threat to ranchers and farmers today. In Britain, sheep farmers are resorting to technology to protect their flocks. Faiza Elmasry reports on some high tech ways farmers are tracing their animals. Faith Lapidus narrates.

Afghanistan Blocks Social Media Services

Authorities in Afghanistan are temporarily blocking WhatsApp and Telegram social media services in the country, citing security concerns, officials confirmed Friday.

An official at the Afghan Telecommunications Regulatory Authority, ATRA, told VOA the social media tools will be suspended for 20 days. The decision follows a request from state security institutions.

The official, who spoke on condition of anonymity, said a formal announcement is expected Saturday.

ATRA has ordered telecom companies to shut down the services November 1, according to a copy of official instructions appearing in Afghan media.

Social media users have complained of technical problems while using the two services in recent days.

The controversial move has sparked criticism of the Afghan government, and it is being slammed as an illegal act and an attack on freedom of expression.

The outage prompted the telecom regulator to issue a statement Friday, saying the ban is meant to test “a new kind of technology” in the wake of users’ complaints.

It went on to defend the restriction, saying WhatsApp and Telegram are merely voice and messaging services and their temporary suspension does not violate the civil rights of Afghans. The government is committed to freedom of expression, the ministry added.

Afghan journalists and activists on Twitter dismissed the statement.

“This seems to be the beginning of government censorship. If it’s not resisted soon the gov’t will block FB & twitter,” wrote Habib Khan Totakhil on Twitter.

“Gov’t fails to deliver security, now it seeks to hide its incompetence by imposing ban on messaging platforms. Totalitarianism?,” said the Afghan journalist.

“#Censorship is against what freedom we stood for in #Afghanistan post 2001. Gains shouldn’t go to waste,” tweeted activist Nasrat Khalid.

An estimated 6 million people in war-torn Afghanistan can access internet-based services. The growth of media and social media activism have been among the few success stories Afghanistan has seen in the post-Taliban era.

Classifying numbers

The restrictions on social media come as the Taliban intensifies attacks on Afghan security forces, inflicting heavy casualties.

The insurgent group also relies heavily on WhatsApp, Telegram, Twitter and Facebook to publicize its battlefield gains.

The Afghan government has lately barred the United States military from releasing casualty numbers, force strength, operation readiness, attrition figures and performance assessments of the Afghan National Defense and Security Forces.

The U.S. Special Inspector General for Afghanistan Reconstruction, John Sopko, while briefing members of Congress on Wednesday, severely criticized the classification move. He maintained American taxpayers have a right to know how their money is being spent.

“The Taliban know this [Afghan casualties], they know who was killed. They know all about that. The Afghans know about it, the U.S. military knows about it. The only people who wouldn’t know are the [American] people who are paying for it,” Sopko noted.

The United States has spent nearly $120 billion on reconstruction programs in Afghanistan since 2002. More than 60 percent of the money has been used to build Afghan security forces.

Twitter Employee, on Last Day, Deactivates Trump Account

U.S. President Donald Trump’s @realdonaldtrump Twitter account was deactivated by a Twitter Inc employee whose last day at the company was Thursday, and the account was down for 11 minutes before it was restored, the social media company said.

“We have learned that this was done by a Twitter customer-support employee who did this on the employee’s last day. We are conducting a full internal review,” Twitter said in a tweet.

“We are continuing to investigate and are taking steps to prevent this from happening again,” the company said in an earlier tweet.

A Twitter representative declined to comment further.

The White House did not respond immediately to a request for comment.

Trump has made extensive use of messages on Twitter to attack his opponents and promote his policies both during the 2016 presidential campaign and since taking office in January.

He has 41.7 million followers on Twitter.

His first tweet after Thursday’s outage:

In a similar incident last November, Twitter Chief Executive Officer Jack Dorsey’s account was briefly suspended as a result of what he said was an internal mistake.

Mexico City Updates 911 App to Push Quake Alerts to Phones

Mexico City has updated its 911 emergency app to send earthquake alerts to residents’ smartphones following last month’s magnitude 7.1 temblor that killed 369 people, including 228 in the capital, authorities announced Thursday.

Mayor Miguel Angel Mancera said users of the free 911 CDMX app can get sound and vibration alerts for any quake strong enough to threaten damage in the city.

It was developed by the governmental center known as C5, for Command, Control Computing, Communications and Contact, and is available for both iOS and Android.

With nerves still raw from the Sept. 19 earthquake that collapsed 38 buildings in Mexico City, Mancera said there would be no demonstration of the system to avoid causing unnecessary alarm.

“We are not interested in having anyone hear it who does not know the context in which it is being presented,” the mayor said at a news conference.

More than 20 million people live in the capital and surrounding suburbs, much of which is built on a former lakebed. Its soil can amplify the effects of earthquakes that strike far away and whose shockwaves arrive in the sprawling metropolis some time later.

An even stronger earthquake Sept. 7, whose magnitude was recently adjusted upward from 8.1 to 8.2 by the U.S. Geological Survey, was centered hundreds of miles away, off the country’s southern coast, but was still felt strongly by many in Mexico City.

The capital already has a system of loudspeakers that blare alarms when a significant temblor is detected.

C5 general coordinator Idris Rodriguez Zapata urged residents to download the app. He also said they should heed quake protocols “without hesitation at the moment [the alarm] is heard through the system of speakers or on cellphones.”

Last month, Mancera said there had been reports of people setting their cellphone ringtones to the sound of the seismic alarm and urged them to remove it so as not to provoke panic.

Other 911 app functions let users view tweets about seismic activity, contact a 911 operator, or register their blood type and medical history.

Facebook Pressured to Notify People Who Saw Russian Posts

Facebook received several tongue-lashings during U.S. congressional hearings this week, but the world’s largest social network also got an assignment: Figure out how to notify tens of millions of Americans who might have been fed Russian propaganda.

U.S. lawmakers and some tech analysts are pressing the company to identify users who were served about 80,000 posts on Facebook, 120,000 on its Instagram picture-sharing app, and 3,000 ads that the company has traced to alleged Russian operatives, and to inform them.

The posts from Russia were designed to divide Americans, particularly around the 2016 U.S. elections, according to Facebook, U.S. intelligence agencies and lawmakers. The Russian government has denied it tried to meddle in the elections.

“When you discover a deceptive foreign government presentation on your platform, my presumption, from what you’ve said today — you’ll stop it and take it down,” Democratic Senator Jack Reed told Facebook General Counsel Colin Stretch in the Senate Intelligence Committee hearing on Wednesday.

“Do you feel an obligation, in turn, to notify those people who have accessed that? And can you do that? And shouldn’t you do that?” Reed asked.

Stretch responded that he was not sure Facebook could identify the people because its estimates have relied on modeling, rather than actual counts, but he did not rule it out.

“The technical challenges associated with that undertaking are substantial,” Stretch said.

Critics of Facebook on social media and in media interviews have expressed skepticism, noting that the company closely tracks user activity such as likes and clicks for advertising purposes.

Facebook declined to comment on Thursday.

As many as 126 million people could have been served the posts on Facebook and 20 million on Instagram, according to company estimates.

Social media critics

Many of them will not believe they were manipulated unless Facebook tells them, said Tristan Harris of Time Well Spent, an organization critical of advertising-based social media.

“Facebook is a living, breathing crime scene, and they’re the only ones with access to what happened,” Harris, an ex-Google employee, said in an interview Thursday.

The 2.1 billion people with active Facebook accounts often get notifications from the service, on everything from birthdays and upcoming events to friend requests and natural disasters.

Shortly before 6 p.m. EDT on Thursday, more than 83,000 people had signed a Change.org online petition asking Facebook to tell users about the Russian posts.

Lawyers for Twitter and Alphabet’s Google also said their companies would consider notifying customers.

The intelligence committee’s vice chairman, Senator Mark Warner, drew an analogy to another industry.

“If you were in a medical facility, and you got exposed to a disease, the medical facility would have to tell the folks who were exposed,” Warner said.

IN PHOTOS: A Look at Russian Social Media Election ‘Meddling’

‘Duty to warn’

U.S. law includes a concept known as “post-sale duty to warn,” which may require notifying previous buyers if a manufacturer discovers a problem with a product.

That legal duty likely does not apply to Facebook, said Christopher Robinette, a law professor at Widener University in Pennsylvania. He said courts would likely rule that social media posts are not a product but a service, which is exempt from the duty. Courts also do not want to interfere in free speech, he said.

Robinette added, though, that he thought notifications to users would be a good idea. “This strikes me as a fairly significant problem,” he said.

Pressure Mounts on Apple to Live Up to Hype for iPhone X

The iPhone X’s lush screen, facial-recognition skills and $1,000 price tag are breaking new ground in Apple’s marquee product line.

 

Now, the much-anticipated device is testing the patience of consumers and investors as demand outstrips suppliers’ capacity.

 

Apple said Thursday that iPhone sales rose 3 percent in the July-September quarter, a period that saw the iPhone 8 and 8 Plus come out in the final weeks. Sales could have been higher if many customers hadn’t been waiting for the iPhone X, which comes out Friday.

Apple shipped 46.7 million iPhones during the period, according to its fiscal fourth-quarter report released Thursday. That’s up from 45.5 million at the same time last year after the iPhone 7 came out, but represents a step back from the same time in 2015, when Apple shipped 48 million iPhones during the quarter.

 

As with recent quarters, one of the main sources of Apple’s growth is coming from its services, which are anchored by an app store that feeds the iPhone and other devices.

 

Revenue in that division surged 34 percent to $8.5 billion during the July-September period. All told, Apple earned $10.7 billion on revenue of $52.6 billion, compared with a $9 billion profit on revenue of $46.9 billion a year earlier.

 

Apple shares are up 3 percent in after-hours trading.

 

Nonetheless, the just-ended quarter largely became an afterthought once Apple decided to release the iPhone X six weeks after the iPhone 8.

“The Super Bowl for Apple is the iPhone X,” GBH analyst Daniel Ives said. “That is the potential game changer.”

 

But it also brings a potential stumbling block. While conspiracy theorists might suspect that Apple is artificially reducing supply to generate buzz, analysts say the real reason is that Apple’s suppliers so far haven’t been to manufacture the iPhone X quickly enough.

Making the iPhone X is proving to be a challenge because it boasts a color-popping OLED screen, which isn’t as readily available as standard LCD displays in other iPhone models. The new iPhone also requires more sophisticated components to power the facial-recognition technology for unlocking the device.

 

Even with the iPhone X’s delayed release, Apple is still struggling to catch up. Apple is now giving delivery times of five to six weeks for those ordering in advance online (limited supplies will be available in Apple stores for the formal release Friday). Most analysts are predicting Apple won’t be able to catch up with demand until early next year.

 

On Thursday, Apple predicted revenue for this quarter from $84 billion to $87 billion. Analysts, who have already factored in the supply challenges, expected $85.2 billion, according to FactSet.

 

Analysts are expecting Apple to ship 80 million iPhones during the current quarter, which includes the crucial holiday shopping season, according to FactSet. That would be slightly better than the same time last year.

 

Apple is counting on the iPhone X to drive even higher-than-usual sales during the first nine months of next year — a scenario that might not play out if production problems persist and impatient consumers turn instead to phones from Google or Samsung.

 

“What Apple needs to do is manage consumer expectations so they don’t get frustrated having to wait for so long for a new phone,” Ives said.

 

Analysts believe Apple can pull off the juggling act. They are expecting the company to sell 242 million iPhones in the fiscal year ending in September 2018 — the most in the product’s history. The previous record was set in 2015 when Apple shipped 231 million iPhones, thanks to larger models introduced just before the fiscal year began. By comparison, Apple shipped nearly 217 million iPhones in its just-completed fiscal 2017.

 

If Apple falters, investors are likely to dump its stock after driving the shares up by 45 percent so far this year on the expectation that the iPhone X will be the company’s biggest hit yet.

Facebook Faceplants in Cambodia

A trial change to the Facebook news feed in Cambodia and other small countries is stirring criticism of the U.S. tech giant, which champions interconnectivity and openness, but is famously opaque when it comes to how its own product makes critical decisions about information sharing.

Their rollout of dramatic trial changes to the news feed in Sri Lanka, Bolivia, Serbia, Guatemala and Cambodia in mid October has been handled no differently – with rattled content producers still unaware even of if or when it will end.

The only real source of information is a blog post from the head of their news feed – Adam Mosseri, with the company declining media requests for a two-way dialogue to date.

“We always listen to our community about ways we might improve News Feed,” he said in the post late last month lamenting misconceptions some had about the experiment – which was dropped on users in the six countries without warning.

Why Facebook implemented this trial in the middle of a crackdown on independent media in Cambodia or whether it will continue into the election campaign next year remains a mystery.

“There was no advanced notice, it just suddenly changed, it shocked them and even me. We just understood recently that there is a separation of feeds between Facebook accounts and Facebook pages,” said Nop Vy, media director at the Cambodian Center for Independent Media, which runs the radio news channel Voice of Democracy.

The changes essentially banish content posted by official pages – for instance media outlets, NGO’s and businesses – from users news feeds and sends them into an extremely obscure “explore feed” – unless the page owners pay to have their content put back.

It’s been left to the public to speculate why an experiment with such radical consequences was begun in a country like Cambodia, which is in the midst of a political crackdown in the lead up to an election.

“At this point, I haven’t seen any communication from Facebook that acknowledges the negative impact this experiment has had within the six test markets,” Maya Gilliss-Chapman, a Silicon Valley-based technology analyst and founder of Cambodians in Tech, wrote in an email.

Trying out a new way to pull advertising dollars from a market losing its appetite for buying likes was more important than user experience for Facebook, said Tharum Bun, a tech blogger and founder of KokiTree, a digital marketing agency.

“It’s the first time ever that this issue has happened. Facebook should have done much better than this. But after all, it’s the global tech company that can decide without listening to their users,” he said.

The news feed change also comes as the company is under attack for the rampant spread of disinformation during last year’s U.S. election campaign.

“Cambodia has a lot of love stories with Facebook. But the interesting timing is Facebook, Google, and Twitter, are being grilled for their role in last year’s U.S. election,” Bun said.

All three firms have been questioned by the U.S. Senate’s House Intelligence Committee this week, where regulation of their activities has been raised.

But in the same week, Facebook recorded its highest ever single quarter profits of $4.7 billion and hit a record share price.

With Cambodia’s election looming next year, the government here has shut down more than 10 stations carrying content from critical voices such as Radio Free Asia (RFA), Voice of America (VOA) and Voice of Democracy (VOD) in August.

All three began urgently migrating listeners to Facebook, which is used by almost a third of Cambodians. In fact Facebook/Internet surpassed TV as their most popular source of news last year according to a study by Open Society and The Asia Foundation.

RFA spokesman Rohit Mahajan said the timing of Facebook’s experiment was “less than ideal.”

“I can say that that the organic reach of the Khmer Service’s Facebook page has been affected, with a dramatic drop from the beginning of the month in comparison with the end by 50 percent,” he wrote in an email.

Steven Path, President of the ICT Federation of Cambodia and CEO of IT firm Pathmazing, said the big signal coming out of the trial in Cambodia was that it was a “lose, lose, lose” for all parties – users, brands and sponsors.

“I have followed Facebook quite religiously for the past ten years and definitely Facebook has gotten very, very greedy,” he said, adding they risked upsetting what had been to date an effective balance between the wants of users and marketers.

“And Facebook has to be careful that if they are to maintain incremental increases of their active daily users, this actually, this strategy could take a hit,” he said.

Any backlash though would be limited by the fact that for the foreseeable future there is no social media competitor that could replace Facebook, he added.

“Let’s look at it this way: despite Facebook’s highly publicized, alleged role in allowing Russian-linked ads to spread across their platform during the 2016 U.S. elections, they just reported their best quarter ever,” Gillis-Chapman said.

“What’s done is done, but it would be great to see Facebook at least acknowledge the negative effect this test has had on the people, economy and politics within the test markets.”

Facebook Profit Soars, No Sign of Impact from Russia Issue

Facebook reported better-than-expected quarterly profit and revenue on Wednesday as it pushed further into video advertising, showing no sign of financial damage from the controversy over how Russia used the social network in an attempt to sway voters in the 2016 U.S. election.

The company’s shares, which hit a record earlier in the day, initially rose in after-hours trading, but later fell into negative territory. They have gained almost 60 percent this year.

Chief Executive Mark Zuckerberg condemned Russia’s attempts to influence last year’s election through Facebook posts designed to sow division, and repeated his pledge to ramp up spending significantly to increase the social network’s security, something he said on Wednesday would affect profits.

“What they did is wrong, and we are not going to stand for it,” Zuckerberg said of the Russians, on a conference call with analysts.

Facebook is at the center of a political storm in the United States for the ways it handles paid political ads and allows the spread of false news stories. U.S. lawmakers have threatened tougher regulation and fired questions at Facebook General Counsel Colin Stretch in hearings this week.

Facebook, in a series of disclosures over two months, has said that people in Russia bought at least 3,000 U.S. political ads and published another 80,000 Facebook posts that were seen by as many as 126 million Americans over two years. Russia denies any meddling.

Facebook’s total advertising revenue rose 49 percent in the third quarter to $10.14 billion, about 88 percent of which came from mobile ads.

Analysts on average had expected total ad revenue of $9.71 billion, according to data and analytics firm FactSet.

Facebook in the third quarter gave advertisers for the first time the ability to run ads in standalone videos, outside the Facebook News Feed, and the company is seeing good early results, Chief Operating Officer Sheryl Sandberg told analysts on a conference call.

“Video is exploding, and mobile video advertising is a big opportunity,” Sandberg said.

More than 70 percent of ad breaks up to 15 seconds long were viewed to completion, most with the sound on, she said.

The 49 percent increase in total ad sales in the latest quarter compares with a 47 percent rise in the prior quarter and a 51 percent jump in the first quarter.

Facebook has been warning for more than a year about reaching a limit in “ad load”, or the number of ads the company can feature in users’ pages before crowding their News Feed.

Advertisers seem unfazed, though, spending heavily as the social network continues to attract users.

The nearly 50 percent jump in ad revenue “is phenomenal, especially when for the past few quarters they’ve been trying to bring that expectation way, way down. Yet it keeps going up,” Tigress Financial Partners analyst Ivan Feinseth said.

Of the Russia scandal enveloping Facebook publicly, Feinseth said: “In the bigger picture, I don’t think it’s a really big factor.”

The company’s performance was strong in comparison with smaller social media firms Snap Inc and Twitter, Wedbush analyst Michael Pachter said.

“Facebook grew revenues by $3.3 billion year-over-year for the quarter. This is more than Twitter and Snapchat generate combined for the full year,” he said.

Facebook said about 2.07 billion people were using its service monthly as of Sept. 30, up 16 percent from a year earlier.

Analysts on average had expected 2.06 billion monthly active users, according to FactSet.

Net income rose to $4.71 billion, or $1.59 per share, from $2.63 billion, or 90 cents per share.

Analysts on an average were expecting the company to earn $1.28, according to Thomson Reuters I/B/E/S.

Total revenue increased 47.3 percent to $10.33 billion beating analysts estimate of $9.84 billion, according to Thomson Reuters I/B/E/S.

Various U.S. investigations into how Russia may have tried to sway American voters in the months before and after last year’s elections are hanging over Facebook and its competitors.

There is also proposed U.S. legislation that would extend rules governing political ads on television, radio and satellite to also cover digital advertising.

“We expect more scrutiny about Facebook’s ad system ahead,” analyst Debra Aho Williamson of research firm eMarketer said in a note. “We’re also monitoring for any signs that this investigation will have a material impact on ad revenue.”