EU fines Meta €1.2bn over transfer of data to US

News

The European Union (EU) said the company’s data transfers to the US violated General Data Protection Regulation (GDPR) and jeopardised the “fundamental rights and freedoms” of EU citizens

This week, the EU has issued its largest regulatory fine to date, ordering US tech giant Meta to pay €1.2 billion as a result of breaches to GDPR.

The decision was made by Ireland’s Data Protection Commission (DPC), which said that Meta’s transferring of personal data from EU citizens to the US since 2013 had exposed that data to privacy violations by US security services.

The DPC said that Meta’s existing policies towards transferring sensitive EU data to the US “did not address the risks to the fundamental rights and freedoms” of EU citizens.

Meta is heavily reliant on delivering EU data to the US in order to facilitate advertising.

In the past, Meta has said transferring this data to the US for advertising purposes was paramount to its continued operations in the EU, even threatening to shut down Facebook and Instagram services in Europe if forced to cease these data transfers.

The EU responded saying it would not be threatened or blackmailed, saying the company’s withdrawal “would be their loss”.

Now, the EU says that Meta has five months to suspend any future transfer of personal data to the US, and six months to stop “the unlawful processing, including storage, in the US” of EU data.

These orders only apply to Meta’s Facebook service and not to its other offerings, such as Instagram and WhatsApp.

Meta, naturally, says it appeal the DPC’s decision, which it called “unfair” and “unjustified”.

“We are appealing these decisions and will immediately seek a stay with the courts who can pause the implementation deadlines, given the harm that these orders would cause, including to the millions of people who use Facebook every day,” wrote Meta’s president for global affairs, Nick Clegg, and the company’s chief legal officer, Jennifer Newstead in a blog post.

The decision should come as little surprise. The EU has been clamping down on major US tech companies in recent years, with numerous fines being passed down to likes of Google, Amazon, and Meta for breaching GDPR.

In fact, in 2020, the European Court of Justice found the existing legislative framework between the EU and the US – known as the Privacy Shield – to be inadequate for protecting EU data from being accessed by US surveillance services. Since then, the EU and the US government have been working on a replacement data transfer pact, which could come into effect as early as this October.

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Italy prepares €1.5bn telecoms relief measures

News

A proposed decree would see Italian telcos receive a tax break until 2025

According to a report seen by Reuters, Italy’s Ministry of Enterprise and Made in Italy (Mimit) is reportedly drafting a new piece of legislation that incorporates measures worth almost €1.5 billion in support for the nation’s telecoms sector.

The decree would see an existing energy-related tax break extended to the telco sector, as well as the introduction of further tax reductions on energy bills for companies deemed to be of national strategic importance, such as network operators.

Combined, these tax relief mechanisms could result in savings of up to €1.2 billion for telcos until 2025.

In addition to these tax breaks, additional measures being considered include €200 million in funding to support operators in transitioning their existing copper networks to full fibre and €145 million to fund early retirement schemes and hire younger replacements.

The relief package is reportedly not yet finalised and would still require approval by the cabinet before being enacted. Some measures could also require the approval of the European Commission.

The Italian telecoms sector has been struggling to perform under the weight of intense competition for many years now, most notably since the introduction of mobile newcomer Iliad Italia in 2018. Offering mobile services at a greatly reduced rate, Iliad’s launch marked the beginning of an aggressive price war in the company’s mobile market that still continues to this day, leaving the telco sector struggling for growth.

Indeed, these slim profit margins have already forced some major changes in the industry in recent years, most notably for the nation’s largest telco Telecom Italia (TIM), which is undergoing a significant strategic shift under new CEO Pietro Labriola. This transformation involes spinning off the company’s infrastructure and service arms into separate business units to encourage external investment.

Investment firm KKR and state-owned lender Cassa Depositi e Prestiti (CDP) are currently embroiled in a bidding war to take control of TIM’s would-be-spun-off infrastruture unit, for now still dubbed NetCo.

Vodafone Italia too continues to struggle, with their most recent Group results earlier this year showing a lacklustre performance in Italy.

Both TIM and Vodafone announced major staff reduction plans in Italy last year as part of wider cost-saving measures.

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Tusass: Connecting Greenland’s remote communities
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Tusass: connecting Greenland’s remote communities

Interview

Headquartered in Nuuk, Greenland, Tusass is one of the country’s leading telecom service providers. Head of Tusass’ subsea business unit, Steen Hansen, caught up with Total Telecom about the company’s plans for improving Greenland’s international connectivity and explains the importance of keeping the region’s most remote areas connected.

Can you tell us more about the Tusass network and your current subsea cable investments?

Tusass is supplying the same type of telecom services that telecom operators/service providers in Europe are supplying to their customers.

The services are supplied through an access network based on 4G, 5G, fibre and copper to business and residential users. Tusass has decided that 4G and 5G should be the primary access technology for customers in settlements, towns and most cities, while fibre will primarily be used for business access and larger residential areas in the biggest cities.

The access network is supported by a backbone network based on satellite, microwave, and subsea cable. The satellite network is mostly covering the eastern and most northern part of Greenland supplying services to approximately 4,000 inhabitants. The microwave radio relay and the subsea cable is serving the west coast of Greenland from Narsaq Kujalleq in the south to Kullorsuaq in the north supplying services to approximately 52,000 inhabitants.

Along the Greenlandic west coast from PCS in the south to Upernavik in the north, there is a trunk microwave radio relay system of approximately 2,400 km with more than 50 unmanned repeater hill-sites and several connections to cities, towns, and settlements. The overall capacity varies between 1 Gbps and 10 Gbps depending on the area. The unmanned hill sites are powered using solar, wind turbine and standard generators. The settlements are connected to the trunk through a combined microwave radio relay of 1,800 km.

The subsea cable is 5,400km in length and is divided into two systems:

Greenland Connect; with 4,700 km interconnecting Qaqortoq and Nuuk with Iceland and Newfoundland, providing international gateways as well as a domestic connection between Qaqortoq and Nuuk.
Greenland Connect North; a domestic non-repeatered system of approx. 700km interconnecting Nuuk, Maniitsoq, Sisimiut and Aasiaat. The longest fibre path (non-repeatered) in this system is 495km.

Greenland Connect was established in 2007 – 2008 with RFS in Q1 2009. The overall investment was 140 million euros. Greenland Connect North was RFS in December 2017. The overall investment was 35 million euros.

There is a lot of activity and growth in the EMEA subsea cable market, but which regions need more investment? Why is international connectivity so important for these remote locations?

You are right, there is a lot of activity and growth in the EMEA subsea cable market. As I read the market, its seems as the biggest growth (and demand) is from the hyperscalers as well as data centre providers, while the demand from telecom operators either is the same or decreasing. Furthermore the demand is between countries with high populations, significant development, large business sectors as well as those where the major financial markets and assets are located. In these regions, it seems as though funding for subsea and terrestrial digital infrastructure is limitless as these markets have the customers, population, and growth to support the investments to fulfil the ever-growing demand.

However, remote regions are more or less forgotten as they do not hold an equivalent customer base or a commercially viable demand to attract similar investments in digital infrastructure.

The societies, inhabitants, residents and businesses in these remote regions require the same level of digitalisation as the rest of world, and especially as Europe. You could even argue that these remote regions require a higher degree of digitalisation to ensure the social interconnection between the population and government, between people and their families. This is due to a small population being scattered over a large geographical area, where transportation between settlements, towns and cities can be a huge challenge.

There is no doubt that a digital network with high-capacity services will support healthcare, education, business, and development. This is why these remote regions require domestic digital infrastructure. But without the international digital connections, the society will not be able to support the international co-operation, development and business with the rest of the world. Most of these remote areas don’t have the same resources within education, health, etc. as many countries in Europe, therefore these regions depend on co-operation with institutions and resources in Europe.

Damage to subsea cables can have a significant impact on remote communities, how is Tusass looking to mitigate this risk and protect its subsea infrastructure?

Greenland and Tusass have experienced a situation where the society was disconnected from the international world. Fortunately, the disconnection was for less than an hour, but it showed how dependent our society has become on both the domestic and international digital connection.

Tusass is monitoring our submarine cables corridors using AIS and this system is used to monitor the movements of vessels in order to contact them in case it seems that they are preparing to anchor or start fishing.

To mitigate other known risks in the Arctic areas (namely ice and icebergs), the cable corridors have been placed where icebergs aren’t stranding. Drifting ice, drifting sea ice and solid sea ice are not a danger to submarine cables. In the crossing from the sea to land we protect the cable landings by use of HDD (horizontal direct drilling) if there is even the slightest risk from sea ice.

In 2020, Tusass drafted a vision to mitigate the risk of losing domestic and international connectivity. This vision is the Tusass Connect Vision, enhancing the domestic resilience in our network as well as the resilience of our international connections by establishing additional submarine cable systems over time. As part of this vision we have looked into other regions, countries, and remote areas that, like Greenland and Tusass, might require additional international connection to enhance the resilience in their digital networks. It is our hope that we during 2023 can conclude on this interest.

What do the next 18 months look like for Tusass?

Whilst considering the digital submarine network, we are planning to carry out a marine route survey from Qaqortoq in the south to (at least) Ilulissat in mid-Greenland (Disco Bay) over the next 5 to 6 months. After this survey we expect to plan and design the terrestrial infrastructure for Tusass Connect between Qaqortoq and Disco Bay, with the objective of improving resilience in this area by 2026.

In parallel, we will continue to investigate the possibility of co-operation in the EMEA region to realise the vision set out in Tusass Connect Vision, in conjunction with or as a combined system.

We consider the Tusass Connect Vision as critical infrastructure for our society, which in itself isn’t a commercially viable system, but with a co-operation could combine both critical and commercial objectives for the greater good of the society and businesses.

What are you looking forward to about attending Submarine Networks EMEA 2023?

I am looking forward to meeting people and organisations with other submarine cable initiatives in the region and I am looking forward to learning about the developments taking place in this market.

Steen Hansen will be presenting Tusass Connect on 1st June at Submarine Networks EMEA 2023 (held on 31st May and 1st June at the Business Design Centre in London). To join Steen and 800+ attendees from the EMEA subsea cable market, head to the event website and book your ticket to the region’s leading subsea event.

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Building the internet under the sea: Zeus, an Operations VP’s inside story

Contributed Article

By James Ovel, Operations VP at Zayo

For a VP of Operations, commissioning, installing, and deploying a new subsea cable brings excitement and optimism, but equally offers significant challenges.

With a background and passion for project management, my team and I pride ourselves on detailed planning with thoughtful analysis of a broad range of risks. We are the kind of people who rely on good data, facts, and solid analysis to make informed decisions. We avoid making decisions based on assumptions.

Once we commit to getting a project done, it gets done, no matter how hard it gets.

When a programme wraps up, everyone’s celebrating – there’s press and champagne, and it all looks rosy. You don’t see the additional grey hair that got us there! If you want to know what it’s really like, I’ll tell you.

The Exhilarating Adventures of Zeus

Zeus, our subsea cable connecting the UK to Europe, was a major part of my life for several years. From the early initiation days in 2019 through to its final splice and test in mid-2022, I was constantly worried because it was so unpredictable.

For example, consultants advised in planning that we had a five percent chance of finding an unexploded WW2 bomb along the route. We didn’t find just one, we found four! Three bombs were within British waters adding months of delay and substantial additional costs to move them out of the way of the route. The other one in Dutch waters. This was far less problematic as the Dutch navy, for national security purposes, stepped in and took care of it within days – much to my relief.

Seabed X-rays suggested we would need to examine 140 hidden objects.We actually ended up having to examine over 350 objects before we could even start laying the cable.

One thing our great oceans never are is predictable. Throw in rough weather, an international pandemic, changing permitting laws, and you start to understand just how far out of my comfort zone I was!

The Customer Need for a New Subsea Hero

One thing we could predict accurately was the demand for a new subsea cable. This was clear from the market trajectory and customer feedback. Customers wanted a super secure route across the North Sea and they wanted it as quickly as humanly possible.

Our existing North Sea cable, called Circe North, was nearing capacity and is also over 20 years old. It was entering the unknown when it came to stability and future workable life.  Zayo has always invested heavily in quality network infrastructure to be ready for future demand, so Zeus just had to be done.

Subsea Connectivity Built to Last

One thing we knew from maintaining Circe North for over 20 years is that these waters are heavily fished. Circe North had been impacted multiple times, mostly by illegal fishing. Our fiber is affected when fishermen trawl the bottom of the seabed and inadvertently pull up our cable then cut it to free up their nets and escape before the authorities can track their vessel’s movements.

This meant our main objective in planning wasn’t speed, despite the demand – we wanted to do it right. Quality, security, and sustainability were the priorities. This is why we made sure, at a significant cost, to secure an installation vessel capable of three metres burial depth.

By doing this, we uniquely achieved burying Zeus over two metres where sand waves occur and in many areas achieving two and a half to three metres in depth.

This burial depth is vitally important as the sand on the seabed changes in depth typically by up to two metres in constant tides, this is known as sand waves. This means that only a cable buried over two metres remains covered and safe from the dreaded fishing nets.

We know from our experience in maintaining our Circe North route that anything buried at a depth of less than two metres will become exposed at times.

Even at a burial depth of over three metres, we were still thinking about all of the potential threats. For example, what if an anchor landed on Zeus, potentially causing strike damage? This is why we opted for a double-armoured cable with increased crush resiliency, meaning an anchor bounces off Zeus without impact.

Burying over two metres also has a positive environmental impact, allowing the seabed to reform naturally over the top comprehensively.

An Optimal User Experience Begins Below Sea Level

Most people don’t think about the Internet being under the sea – but they’ll certainly notice if their service is down or the user experience is not what it usually is. If a subsea cable is cut, then everything needs re-routing across longer routes, meaning higher latency and a slower, interrupted and sub-optimal user experience.

Zeus is monitored 24/7 from our UK-based NOC, meaning we see issues or degradation immediately. However, we don’t expect this to ever be an issue for this new cable. In addition, technology is advancing so fast and Zeus is currently being considered by several partners for a super cool advancement using vibrations to monitor illegal fishing and people trafficking.

This type of tech is used on other subsea cables to help predict natural disasters like tsunamis, giving response teams more time to act and prevent a catastrophe. It can also be used by marine biologists to listen to whale songs which they use to ascertain their gender and species.

Problem-solving skills are essential to my team and we pride ourselves on getting the job done.

I had a team of 20 people working on Zeus, plus expert industry consultants. Zeus came in significantly over budget and stretched us in many ways, but we’re all thrilled with the achievement. In my opinion, Zeus is the most secure subsea cable in the world.

If you want to learn more about Zayo and chat with the team, you can join them at this year’s Submarine Networks EMEA event taking place at the end of this month! Get your ticket today

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