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BlackBerry May Abandon Physical Handset for Cyber Security

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With losses at £2.7bn, John Chen, interim chief executive must find a new way forward as Bloomberg Businessweek magazine’s cover showed a range of archaeological objects – a flint arrowhead, a skull – and a BlackBerry handset, which labels the company as still in the woods.

Meanwhile, Chen has already outlined a new strategy for the Canadian company in which he acknowledged that making smartphones was a thing of the past. As an alternative, the company will focus on intangible services such as offering cyber-security for businesses and not making physical handsets.

Making smartphones has not been a good business for anyone who isn’t Apple and Samsung recently, as they have squeezed the profits out of the rest of the industry, according to a report by Guardian of UK. BlackBerry, however, last Friday announced a loss of $4.4bn (£2.7bn) on revenues of just $1.2bn; only a tax rebate of $624m saved its net figures from being worse.

Those three months to the end of November marked a turning point: for the first time, BlackBerry now gets more money – 53% of revenues – from selling “services” such as sending data including email and web pages, than it does from selling handsets, which generated 40%. Software made up the other 7%.

But that has come as the company’s revenues have shrunk to levels smaller than at any time since May 2007, and the number of phones shipped, 1.9m, is the smallest since December 2006. BlackBerry, whose founders laughed at the iPhone’s lack of a keyboard, is out of the smartphone race.

In future Foxconn, which makes the iPhone, will co-design and manufacture BlackBerrys too, and hold the stock. BlackBerry will effectively become a reseller of its own phones.

“The smartphone business is brutal,” said Kevin Restivo, global smartphone analyst at the research company IDC. “It’s one where the big players – Samsung, Apple, and a few Chinese companies – are going to have success, and the others are scratching for crumbs.”

Andy Perkins, an analyst at Société Générale, told Bloomberg: “At some point it becomes uneconomic to make handsets in such small quantities.”

Chen is a turnaround artist. He was brought in to the software company Sybase, where he executed a successful reorganisation.

Since taking over barley two months ago, he has overseen a number of departures of existing senior executives, and hired some former colleagues. The obvious conclusion is that he is reshaping BlackBerry as a services and software company.

Unlike other struggling smartphone makers, BlackBerry can fall back on tens of millions of customers in large businesses, who rely on the security of its products. Chan said that 80% of Blackberry users were business customers.

That could be anywhere up to 50 million users worldwide, offering a substantial base for rebuilding any corporation, even the struggling BlackBerry.

But the data also confirmed that BB10, the operating system launched in January by Heins, has been a flop. Since March, BlackBerry’s customers have bought a total of around 17m phones, but only 5.6m have been BB10 devices.

The new products have fared poorly with consumers and the large businesses that rely on BlackBerry. Consumers have been turned off because the BB10 functions differently from the old BB7 model, while businesses have backed away because BB10 devices can’t be hooked up to the older BlackBerry Enterprise Server (BES) systems so many big customers use.

So while consumers have dumped them in favour of other makes, BlackBerry-using businesses have taken one of two paths: either sourcing old BB7 handsets to keep their existing users happy, or abandoning BlackBerry altogether.

Even Goldman Sachs, once a BlackBerry fortress, has begun letting some executives use iPhones for email, a move that would have been unthinkable a few years ago.

Chen has an answer to both. For consumers, BlackBerry will try to somehow make money from the millions of people who have downloaded the BBM messaging software and installed it on to iPhones and Android phones.

“Revenues might come from a per-user per-month model, or rolling out advertising,” he said on Friday. “We’re a long way from knowing how to do it.”

For businesses he will offer “mobile device management” software that will be able to control not just BlackBerrys, but also iPhones and Android phones.

But there are plenty of rivals there, and it’s not a big business – worth only about $560m (£343m) this year globally for all vendors, and growing at 12% annually, according to ABI Research. Even if a reshaped BlackBerry captures more than half of that, it would still look tiny compared to what it was.

That means, said IDC’s Restivo, that, “BlackBerry’s not out of the woods yet.” He explains: “First and foremost, Chen needs to figure out how to make money from products that have a significant customer base and are growing. The handset business isn’t growing. And how they’re going to generate significant revenue from BES and BBM, and create a company driven by those two parallel paths – right now, the path isn’t clear.”


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NASENI Retreat Focuses on Aligning Development Institutes’ Goals

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In order to achieve greater cohesion amongst its Development Institutes and also sustain their proper alignment with the goals and vision of the National Agency for Science and Engineering Infrastructure, NASENI, the Agency is holding a two-day strategic retreat for Overseeing Officers who are managing the institutes.

Participants at the retreat also include Project Managers, Coordinating Directors and some Directors from NASENI headquarters.

The event, held in Abuja, is expected to strengthen leadership skills to achieve strategic alignment of the various Development Institutes’ goals with the overarching vision of NASENI, ensure collaborative synergies with the headquarters to streamline efforts, maximize resource utilization and enhance decision making capabilities.

It will also shift the focus of research and development (R&D) efforts towards solutions that are market-ready, innovative and capable of generating sustainable economic values.

In his welcome address at the opening ceremony, the Executive Vice Chairman/Chief Executive Officer of NASENI, Mr. Khalil Suleiman Halilu, stated that the retreat was not merely about planning, but about creating the blueprint for action, adding that each of the participants hold a unique and pivotal role in translating the vision of NASENI into reality.

“The conversations, strategies, and commitments forged here will determine how effectively we position NASENI to lead Nigeria into a future defined by innovation, self-reliance, and technological advancement, instill a shared commitment to excellence by adopting global best practices in innovation management”, he stressed.

He pointed out that recent assessments have shed light on the need for greater cohesion between the goals of the Development Institutes and NASENI’s renewed vision, highlighting that the retreat was a critical step in the Agency’s transformative journey-a journey anchored in the guiding principles of Creation, Collaboration, and Commercialization (3Cs).

He added that the principles encapsulate the essence of what NASENI stands for: creating cutting-edge solutions that are commercially viable and impacting directly on the lives of Nigerians who sit at the core of the renewed hope agenda of the President.

“Today, we gather not just to deliberate but to lay the groundwork for a stronger, more unified NASENI-one that is poised to drive Nigeria’s technological aspirations to unprecedented heights.

“As an institution saddled with the responsibility of indigenous technology advancement, NASENI has always been a beacon of innovation, a catalyst for progress, and a key driver of sector-specific solutions.

“Across our specialized Development Institutes, I see clearly that remarkable work has been done to push the frontiers of research, foster innovation, and develop solutions that address national and industrial challenges.

“Yet, we recognize that to stay true to our mission in this rapidly evolving world, we must continuously adapt, align, and refocus our efforts”, he affirmed.

The EVC/CEO, therefore urged the top management staff to engage fully, think boldly, and collaborate purposefully. “This is our moment to redefine our collective impact and to reaffirm our dedication to a vision that transcends individual institutes to unite us under the banner of progress for our nation.

“Together, we can and will achieve extraordinary outcomes. Let us move forward with clarity, resolve, and to demonstrate an unyielding commitment to excellence that defines NASENI,” he concluded.


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IHS Nigeria Partners with the NCMM to Digitize Nigeria’s Cultural Heritage

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IHS Nigeria, part of the IHS Holding Limited (“IHS Towers”) group, one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count has announced a strategic partnership with the National Commission for Museums and Monuments (NCMM) and the Federal Ministry of Art, Culture, and the Creative Economy (FMACCE) to support the digitization of Nigeria’s cultural heritage.

This collaboration aims to make Nigeria’s historical artifacts, artworks, and cultural monuments more accessible to the public through a digital museum.

The partnership between IHS Nigeria, NCMM, and FMACCE will leverage technologies to digitalize and display artifacts online, helping to preserve and showcase Nigeria’s cultural heritage. It marks a significant step towards modernizing the preservation and dissemination of Nigeria’s cultural assets, making them more accessible to a broader audience.

The digital museum is the first significant project under the Honorable Minister’s Digital Culture Initiative and is designed to provide a platform for the exploration and appreciation of Nigeria’s diverse cultural heritage. This partnership underscores IHS Nigeria’s commitment to sustainability and its role in helping foster cultural preservation and digital education.

Mohamad Darwish, CEO, IHS Nigeria, commented, “We are excited to partner with the National Council for Museums and Monuments and the Federal Ministry of Art, Culture and the Creative Economy on this groundbreaking initiative. As a company deeply rooted in Nigeria, we recognize the importance of preserving, protecting, and promoting our cultural heritage.

“This partnership also aligns with our commitment to sustainability, education, economic growth, and community development. We look forward to contributing to the preservation of Nigeria’s cultural legacy”.

Hannatu Musawa, Nigeria’s Minister of Art, Culture and the Creative Economy, commented, “We are delighted to partner with IHS Nigeria on this initiative which aligns with His Excellency President Bola Ahmed Tinubu’s Renewed Hope Agenda, and our Ministry’s 8-point plan on fostering strategic partnerships.

“I am particularly pleased that this initiative, which is the first significant project under our Digital Culture Initiative, embodies our commitment to innovation, global partnerships, and the sustainable growth of our creative industries, positioning Nigeria as a leader on the global stage.”

Olugbile Holloway, Director General, National Commission for Museums and Monuments, commented, “We are grateful to IHS Nigeria for their support in this remarkable initiative.

“We believe that to keep ahead of current trends and appeal to a younger demographic, it is imperative that a digital experience of our rich cultural heritage is created and made available to the public.

“The digital museum will serve as an invaluable resource for researchers, students, and the general public, both in Nigeria and around the world, and will play a crucial role in the preservation of our national heritage.”

 


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Google Faces Major Antitrust Action: DOJ Demands Chrome Sale

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In a significant escalation of its antitrust battle against Google, the US Department of Justice (DOJ) on Wednesday, November 20, urged a federal judge to break up the tech giant by ordering the sale of its widely used Chrome browser.

The DOJ also called for an end to Google’s agreements to be the default search engine on smartphones and proposed measures to prevent it from leveraging its Android operating system to dominate the market.

The DOJ suggested that if these remedies fail, Google should be compelled to divest Android entirely. The proposals mark one of the most aggressive antitrust moves against a major tech company in decades, with regulators seeking to curtail Google’s alleged abuse of its market power.

Google’s president of global affairs, Kent Walker, criticized the filing, accusing the DOJ of pursuing a “radical interventionist agenda.” Walker warned that the proposed breakup would disrupt Google’s product ecosystem, harm innovation in artificial intelligence, and threaten America’s global technological leadership.

This case represents a historic shift in the US government’s approach to regulating tech companies, following decades of relative inaction since the failed attempt to break up Microsoft in the early 2000s.

Google is set to respond in a filing next month, with a hearing scheduled for April before Judge Amit Mehta. The judge’s August ruling declared Google a monopoly, setting the stage for this next phase of the legal battle. Any decision is likely to be appealed, potentially taking years to resolve and possibly reaching the US Supreme Court.

The case’s future could also hinge on political changes, as President-elect Donald Trump’s incoming administration may take a different approach to antitrust enforcement. Trump has previously criticized Google for alleged bias against conservatives but has also expressed skepticism about breaking up major tech companies.

The DOJ’s proposals come amid broader efforts to address the dominance of big tech, with five antitrust cases currently pending against Amazon, Meta, Apple, and Google. These cases, brought under the Biden administration, are expected to shape the regulatory landscape for years to come.


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