Sky TV is celebrating a court win against My Box, the streaming service that advertises its ability to play Sky’s content for free.

The Auckland High Court ruled that My Box cannot describe its service as legal. It confirms that using its hardware and software to show Sky-owned material is a breach of copyright.

The court will hold a hearing to decide costs early next year.

Sophie Moloney, Sky’s general counsel says: “This decision, along with the recent ruling against Fibre TV boxes in Christchurch, sends a very clear message to New Zealanders that these services are not all they are cracked up to be.”

Sky’s roundabout victory

What’s curious about this case is that Sky didn’t manage to win a straight legal victory over video piracy. It took action against My Box and the company owner Krish Reddy under the Fair Trading Act.

In effect, Sky’s successful legal argument was that My Box was making claims about its service that were misleading.

This echoes the way US authorities finally managed to nail gangster Al Capone because of his tax evasion, not his more serious crimes.

My Box pirate

What’s pleasing about this case is that Reddy is an out-and-out pirate. This isn’t like a bunch of kids being busted for watching a naughty episode of a show that isn’t even available through legitimate entertainment channels. It’s not like someone bittorrenting a missing episode or using a VPN to watch BBC coverage.

Sky has a far better moral argument here.

Reddy may not be a gangster, but his My Box business is copyright piracy on an industrial scale. He claims to have sold 17,000 boxes.

While you can’t argue that every one of those 17,000 customers would have otherwise subscribed to Sky, it’s clear that Reddy sucked a lot of money earmarked for video entertainment out of an industry that struggles to pay its way.

Last year I received one of the My Box spam emails. Heaven knows how the company got hold of my details. It did come via a long defunct but still forwarded email address.

Wake up call

The fact that it was spam is a wake up call in itself. But the email wasted no time telling me that I could get content for free without paying a Sky subscription. It looked crooked.

Piracy is in decline. There’s less need to steal content when it isn’t expensive to buy from the likes of Netflix or Lightbox.

Even sport, which comes with more of a premium price tag, is affordable for most New Zealanders. At least in relative terms. A year-long subscription to Bein Sport NZ or Sky Fanpass is roughly a couple of days pay for someone on a minimum wage.

Sky is My Box’s most obvious victim. In a way so are the people who paid the company money and believed they were getting legitimate access to streaming video services.

In theory, any customer would have a good case to demand their money back. I suspect they, like Sky, will find there are few if any assets left in the business.

Communications Minister Kris Faafoi says New Zealand could ban Huawei from building 5G mobile networks. In New Zealand could bar Huawei Newsroom reports:

Faafoi said that companies had approached him saying they would like to use Huawei’s technology, but he said New Zealand could ultimately follow Australia in barring the company from contracts relating to crucial infrastructure.

“We’re obviously cognisant of the concerns the Australian authorities have had. It’s a pretty crucial piece of infrastructure for the future of the mobile network,” Faafoi said.

Australia and the US already ban Huawei from building communications networks.

Huawei is best known in New Zealand for its mobile phones. The new Huawei Mate 20 Pro is arguably the best Android phone on the market today.

Network hardware

The company’s main business is making the behind-the-scenes hardware that runs telecommunications networks.

A little Huawei equipment is in the UFB broadband network. But that’s small compared to Huawei’s role providing hardware for the 2degrees and Spark 4G mobile networks.

Huawei is a private company. It is Chinese. Some critics say it has links with the Chinese military. Huawei denies those links are active.

What it can’t deny is that it operates from a base in a totalitarian country where pressure can be applied to even the largest independent business.

That said, by law large US companies like Amazon and Microsoft must hand information stored on cloud servers over to US government agencies on demand.

GridAKL Huawei
Huawei’s GridAKL shows the company is keen to be a good corporate citizen

Spooks

Our partners in the Five Eyes intelligence alliance are uneasy about Huawei playing an important role in New Zealand’s key communications infrastructure.

There’s no evidence that Huawei uses its telecommunications equipment to spy on voice or data traffic. There is evidence of Chinese state-sponsored online intelligence gathering elsewhere.

China’s government doesn’t need to use Huawei to snoop, it has other options as Juha Saarinen points out in his NZ Herald story.

If anything, China’s government is likely to want to protect Huawei’s brand. After all, Huawei is a potent demonstration of China’s technical and economic prowess. It is a global giant with the potential to be as influential in technology as Apple, Google, Microsoft or, in its day, IBM.

Huawei New Zealand

Huawei has a close relationship with both Spark and 2degrees. Earlier this year, Huawei and Spark held an impressive demonstration of next generation 5G mobile network technology in Wellington.

Spark expects to build a new 5G network in time for the America’s Cup. It is negotiating with potential hardware partners. Huawei will be on the short list.

There is also trade protectionism behind the pressure for a ban. It suits US economic interests to spread doubt about Chinese equipment makers.

Nokia is not an US company, but somewhere in the conglomerate is the remains of Lucent, which was Bell Labs. At one time that was another American prestige brand. There are US jobs at stake.

Huawei ban problems

Banning Huawei is harder than it seems. The company dominates communications network hardware. Its products and services are often cheaper and better than those from its rivals.

Huawei has been so successful and risen so fast that today its only serious competitor for network hardware is Nokia. That company was Finnish and still has headquarters there. Nowadays Nokia is a multinational. It is made up of businesses that struggled to compete with Huawei on their own.

There’s also Sweden’s Ericsson, but that had faded from the scene before the Huawei spying fuss blew up. It has revived a little since with carriers unable to buy from Huawei looking afresh at its wares.

Meanwhile, Samsung has entered the network equipment market, in part to capitalise on the anti-Huawei sentiment.

Push up prices

Huawei is competitive on price. Ban Huawei and there’s less pressure for Nokia to sharpen its pencil.

A ban will increase the price of building next generation networks. It gives carriers fewer options and less opportunity to differentiate their networks from rivals.

Over the next decade or so New Zealand’s three main carriers will spend the thick end of a billion dollars upgrading phone networks. Equipment makers like Huawei only get a small slice of the pie. Even so we are talking in tens of millions. Keeping Huawei out of the picture will add millions to the cost.

Technology

You can also argue that Huawei has a technical edge over its rivals. Without Huawei we won’t be getting the best possible networks. Our carriers certainly won’t have as much choice when it comes to planning network infrastructure.

There is another practical argument against Huawei, although it is not a justification for banning the company. An unshackled Huawei is so strong that it could soon become a dominant near monopoly in network hardware in much the same way that IBM once dominated computer hardware. That’s not desirable.

Spyware?

Despite all this, the big question remains: Is Huawei spying?

We don’t know.

We do know the Chinese spy on communications networks. So do other powerful governments. Hell, our intelligence service does it too.

Whether a private company is helping the spooks is almost neither here nor there.

Even if it is not spying today, Huawei could be pressured by a future Chinese regime to hand over its keys to spooks. As mentioned earlier, US law requires the likes of Amazon, Microsoft and IBM to let American security agencies look at data stored in the cloud.

Huawei not alone

That said, there are no guarantees the other hardware companies are not also spying. We know Facebook, Google, Amazon and others collect vast amounts of information on us without much fuss. Perhaps this is how the world operates in 2018, that all information is, in effect, considered fair game.

There is one way we can guard against this and that would be to use strong encryption.

Weirdly under the circumstances, Western governments are moving to ban us from encrypting our data. They want to be able to spy on us. At the same time they warn us that other nations are spying.

If Huawei and China are such a threat isn’t that an argument for upping our encryption game?

Huawei phones

What message does a ban, even a potential ban, of Huawei network equipment send us about Huawei mobile phones?

Part of the deal with any Android handset is that you have to give over a lot of information to get the benefits of an operating system that knows your preferences.

Could some of that data passing through a Huawei handset end up with Chinese state security organisations? If anything, this could be a bigger worry.

Huawei is the third largest phone brand in New Zealand. It struggles to sell phones in countries where there is a network hardware ban. A government imposed ban will have a knock-on effect there too.

Many recent phone launch presentations have been all about the camera. Most of the rest spend more time talking about their phone cameras than anything else. I can’t think of a single phone presentation I’ve seen in the last three years where the camera was relegated to a footnote.

Apple, Samsung and Huawei all want you to know their phone cameras are better than before. It is always true.

They’d also like you to think their cameras are better than their rivals. That’s a losing game. They are all excellent. But each excels in different ways.

You wouldn’t be disappointed with the camera in any premium phone. You might find one phone misses a camera feature you’d like, or is a touch weaker in some department. You might find one suits your style, works the same way you do or has a user interface that’s easier to understand. Either way, they are all good.

Apple iPhone XS camera

Phone cameras good, getting better

Indeed, phone cameras are now exceptionally good. So good that the stand alone camera market looks doomed for everyone except professionals and serious amateurs willing to part with lots of money.

Forget whinging about a NZ$2800 phone, the starting price for a full frame mirrorless camera from Sony, Nikon or Canon is about twice that. And then you buy extra lenses.

The low-end camera market is already dead. The mid-range is struggling. There is almost no casual stand-alone camera market these days.

It’s still worth buying a standalone camera if you want consistent great pictures

There are good reasons to buy a high-quality standalone camera if you want to take great pictures.

The physics of camera optics means that, in general, you get better images with a bigger and better lens along with a big sensor array. You also need some distance between the lens and the focal plane where light hits photosensors.

None of this is possible in a phone which is often less than 10mm thick. Phone cameras have small lenses. There is almost no distance between the lens and the sensor array. Sensor arrays are also small, usually smaller than a fingernail while a more traditional digital camera might have an array the size of a matchbox.

Phones have plastic lenses, which, on the whole, are not as good as the glass lenses in cameras. Plastic can distort images. Phone makers spend millions developing better materials and techniques to reduce this, but glass still beats plastic.

Phone cameras get around physical shortcoming with heavy duty computer processing. Upmarket phones have two or even three lenses. They combine their images to create better pictures. Most of the time this gets around the distortion.

Software does the heavy lifting

They do a hell of a lot of this in software. Which brings up an interesting philosophical point: Are they capturing reality or are they making it up?

You may wonder why phone makers keep putting faster and faster processors in their phones. After all, none of the last three or four generations of flagship phones have been slouches when it comes to handling most computing tasks.

The main reason for the extra grunt is to handle image processing. It’s a data-intensive task and phones have to do it in microseconds.

Phone makers love to tell you their models use artificial intelligence. Most of the time phones use the results of earlier AI work to inform their brute-force image processing. They don’t do on-the-fly artificial intelligence to process your pictures.

The results are impressive. When Apple gave me a demonstration of the iPhone XS Max, I was struck by how much like a digital SLR the results can be, in the right hands.

As much as I try, my iPhone or Huawei shots are never as good. I still get far better results from my ageing but trusty digital SLR. The pictures are often good enough to use in print.

Mirrorless

If I was to buy a new camera, I’d go for a modern mirrorless design. Until recently this would have meant a Sony Alpha, but Nikon and Canon now have tempting alternatives. I can’t put my finger on it, but to my eyes Canon images look better, so the Canon EOS R would be my probable choice.

Mirrorless means the camera doesn’t have a traditional optical viewfinder like an SLR or digital SLR. Instead you see the same image that the sensors see. This makes the cameras simpler, smaller and lighter.

For consumers stand alone cameras are on a path to becoming a retro-tech thing like vinyl records or analogue music synthesisers. Professionals will go on using standalone cameras. But the market is slowing.

I still take a camera along when I travel overseas or cover a conference as a journalist. The more traditional controls easier to use, even if I spend most of the time on automatic setttings. When I need to fiddle, it’s easy to tweak dials and press buttons than hunt for controls on a phone screen.

Having said that, often I find myself on a reporting job where the only camera to hand is my phone. If I take a little time, I can get good pictures with that too. I’ve already noticed I’m less likely to pack the standalone camera when heading out to cover a story. I no longer keep it handy, charged and ready to go. That’s not the case with my phone.

Neilsen says New Zealanders buy almost five million hard copy books a year. Meanwhile the Book Depository says out of the 160 countries it sell to, New Zealand is second only to Australia. We are ahead of the UK and the US.

These numbers come from a media release put out by the Book Depository. This may not seem remarkable, but the Book Depository is owned by Amazon.

The shopping giant may have started out as an online bookshop, but it has poured millions into developing the e-book market. Amazon still sells its own Kindle brand of ebook reader; the most popular standalone reader.

books
Book shelves still growing

In other words, the world’s largest retailer of ebooks is happy to let everyone know that hard copy is still more popular with readers.

Scratch the surface and it seems the e-book market topped out about a decade ago. It hasn’t grown significantly since then. Meanwhile hard copy book sales continue to climb.

As far as it can go

I wouldn’t say this means Amazon has thrown in the towel on e-books, but it seems the market has gone as far as it is going to for now and hard copy sales are rising. Hard copy books have some practical advantages over e-books.

Neilsen’s New Zealand specific market research found 80 percent of people in this country only read hard copy books. A mere five percent only read digital books. The rest read a mix of the two.

Books are still popular online. Almost 600,000 New Zealanders bought a book from a website in the last year.

Book Depository says orders to NZ have climbed 45 percent in the past three years. Although this might be because buyers are switching from other sources both online and offline. Still 45 percent represents significant growth, remember e-book sales are static.

A third of the books sold here by the Book Depository are for children. So the next generation is already invested in print rather than digital.

Part of this could be parents wanting to prise kids away from digital devices for a few moments, but there’s also more pleasure in reading a hard copy book together than sharing a screen.

Books expensive in New Zealand

I suspect one reason New Zealanders are enthusiastic online book buyers is because prices are far higher than elsewhere in the world.

This is particularly true for popular fiction books which are often discounted in large stores overseas. In some cases we pay more than twice the price paid by UK or US readers.

There are a few crumbs of comfort in this for local bookstores. While huge sales are going to offline online booksellers, the fact that readers continue to buy hard copy books in such large numbers means there is still a worthwhile market here. It’s doubtful that books will die in out lifetimes. Whether they can compete on price is another matter.

Everyone knows fibre is the best way to get broadband. It’s reliable and can deliver gigabit speeds. Soon it will be able to go even faster.

After 100 years on top, copper is on the way out for most people. But not for everyone. At least not yet.

There is still life in copper broadband. Scientists and engineers have squeezed every last electron of performance from wire-based data transfer to the point where, with the right conditions, copper can deliver fibre-like speeds.

For the most part, the right conditions means living no more than about 1.5 kilometres from a roadside cabinet or exchange.

VDSL interim until fibre arrives

This is good news because the second phase of New Zealand’s government supported UltraFast Broadband roll-out will not be complete until 2022.

People in areas at the back of the queue will have to make do with copper broadband for now. Fixed wireless broadband is also an option.

Those people in areas not yet scheduled for fibre will wait still longer. Eventually fibre will reach beyond 87 percent of the population, but not soon enough to keep everyone happy.

Chorus, Nokia crank up VDSL speeds

Relief is on the way. Chorus and Nokia are working on the latest version of VDSL2 vectoring which could see copper broadband users get speeds as high as 130 Mbps.

Vectoring uses noise-cancelling technology to remove the crosstalk interference found when many signals share the same copper connection. If that sounds too technical a description, focus on this: Vectoring means higher speed.

You’ll need to be close to a cabinet to get maximum speed. The further you are from the cabinet the slower it gets.

Existing VDSL2 users living next to a cabinet should see speeds of around 80 mbps. One kilometre away from the cabinet the speed drops to around 25 to 30 mbps. By the time you are two kilometres away, the speed is down to around 20 mbps, maybe a fraction lower.

The ratios are likely to be similar when vectoring is applied. So expect around 130 mbps near the cabinet and roughly 30 mbps two kilometres away.

Fibre-like speeds

This isn’t bad. When fibre first went on sale in New Zealand customers were offered 30 mbps plans.

To put the speed in context, Netflix recommends 5 mbps for HD television streaming and 25 mbps for ultra high-definition.

In other words, get ready to enjoy Spark’s streaming coverage of next year’s Rugby World Cup or Premier League football. If that’s not your thing, there are plenty of other streaming TV options.

VDSL fine in practice

Until recently I was getting around 50 to 60 mbps on a non-upgraded VDSL2 copper connection. I live around 700 metres from the nearest cabinet. This gives you some idea of the potential.

Chorus head of Network Technology Martin Sharrock says getting the fastest possible broadband experience to customers is a priority.

He says: “Vectoring has improved average VDSL downstream speeds by over 40 percent and upstream speeds by over 30 percent. This is especially important for rural New Zealand where fibre to the home has not yet been planned.”

Federico Guillén, president of Nokia Fixed Networks, said: “Nokia’s copper solution with vectoring technology compliments Chorus’ fibre roll-out and provides another way to deliver significantly higher speeds that enhance the way customers experience digital content.”

And then there is wireless

As mentioned earlier, fixed wireless broadband is an option for people in areas not served by fibre. Some wireless towers are full, they’re not open to accept more customers. This is the case in my Auckland suburb where fibre is an option.

While fixed wireless broadband can, in theory, deliver speeds faster than VDSL with vectoring to people further away from a cabinet, the speed tends to vary depending on how many others are using the same bandwidth at the same time. It will probably slow down at peak TV viewing times.

If you’re not on fibre, it’s worth investigating both technologies. You can find out if a copper VDSL2 connection is available at your address from the Chorus broadband checker. To get a bigger picture of all your broadband options use InternetNZ’s excellent National Broadband Map.