Privatisation tsar embarks on quest to revive economy

Chairman of Pakistan's Privatisation Commission Mohammad Zubair speaks during an interview with Reuters at his office in Islamabad January 29, 2014. PHOTO: REUTERS

ISLAMABAD: Mohammad Zubair was on a cruise dinner with Prime Minister Nawaz Sharif in Thailand when he was offered the hardest job of his life: privatising a huge chunk of the economy while fighting resistance from the opposition and trade unions.

When the prime minister left the table, a colleague of former IBM executive Zubair rushed to his side.

“Are you mad? Three privatisation ministers have gone to jail and most have corruption cases hanging over their heads,” he said. “Don’t take this job.”

But the country’s new privatisation tsar is determined to find buyers for 68 public companies, most of them loss-making, including two gas companies, an oil company, about 10 banks, the national airline and power distribution companies – all within the next two years.

The government sees the sell-offs as a life saver for the $225 billion economy crippled by power shortages, corruption and militant violence. Successful privatisation is Nawaz’s top political and economic goal.

“We lose 500 billion rupees annually because of failing enterprises,” Zubair told Reuters. “Every day a file lands on a bureaucrat’s desk and he has to take a decision he isn’t qualified to. This can’t go on, no matter what.”

Pakistan can raise up to $5 billion in privatisation revenue in the next two years to ease pressure on strained public finance, Zubair said.

Last September, the International Monetary Fund saved the country from a possible default by agreeing to lend it $6.7 billion over three years. In return, Pakistan must make good on a longstanding promise to privatise loss-making state companies.

Privatisation officials, requesting anonymity, said several foreign investors, including the World Bank’s private-sector arm, the International Finance Corporation, and the US mutual fund Fidelity Investments have shown interest in the companies.

But for Zubair, a former IBM chief financial officer for the Middle East and Africa, the real challenge is overcoming resistance from thousands of workers who will have to be laid off and opposition parties who are against the plan.

Once a source of pride, Pakistan International Airlines is struggling to stay aloft, having accumulated losses of more than 250 billion rupees. A quarter of its 40 aircraft are grounded. Flights are regularly cancelled and engineers say they have to cannibalise some planes to keep others flying.

Unions strongly oppose the privatisation. The IMF wants the airline partially privatised by December.

Another asset is Pakistan Steel Mills, which has accumulated losses of more than Rs100 billion. Overstaffed by at least three times, employees haven’t been paid since October.

An attempt to privatise the mill in 2006 was blocked by the then chief justice. Foreign investment dwindled as deals got caught up in court. Now, under a new Supreme Court chief, officials say the prospects of reform have improved.

‘No magic wand’

Under IMF conditions, financial advisers must be hired to evaluate the assets and examine accounts by June.

Zubair’s daily work includes visits to opposition lawmakers, parliamentary committees and unions to convince them of his plan. But he has few takers.

“The answer to our current economic malaise lies not in hawking of state-owned institutions but in restructuring these industries,” Bilawal Bhutto, patron-in-chief of Pakistan People’s Party, wrote in a commentary.

Pakistan Tehreek-e-Insaf MNA and former chief executive of one of Pakistan’s largest conglomerates Asad Umar said privatisation was being pursued on an unrealistic time frame and the criteria for identifying entities was inconsistent.

For Umar, it makes no sense that on the list with a bleeding airline are Oil and Gas Development Co Ltd and Pakistan Petroleum Ltd, which made profits of 91 billion and 42 billion rupees respectively in 2013, and have zero debt.

Not all sell-offs are expected to go smoothly.

A nine-year dispute between the government and Etisalat, the United Arab Emirates’ largest telecoms firm, over payments from the privatisation of Pakistan Telecommunication Company Ltd, is seen as a discouragement for investors.

But Zubair says no plan is without risk.

“There is no magic wand to ensure that all these ventures will be successful,” he said. “But the bottom line is that I’m not going to hold off privatisation for anyone.”

Apple said to build its own content delivery network

The tech giant currently relies on Akamai and Level 3 to deliver its apps, iTunes content, and software updates to users, but that may change, according to an analyst

Apple's new iTunes Radio feature.

(Credit: CNET)

Apple may soon control even more of the user experience.

The Cupertino, Calif., electronics giant may be building its own content delivery network to deliver apps, software updates, and iTunes content to consumers, according to Dan Rayburn, principal analyst at business consulting firm Frost & Sullivan.

Currently, Akamai Technologies and Level 3 Communications provide that service to Apple, hosting the content for the company. However, Apple may want to take that control under its own roof as it focuses more on its iCloud service. That could result in better service for customers, as well as allow Apple to exert even more control over its products.Details are pretty limited at this point, but Rayburn said Apple is in the process of building its network. It has hired many people experienced in building out large-scale networks, he said. It's unclear what type of content Apple's network will deliver, what areas it will service, and other factors.

"Right now they control the entire customer experience, except for the way content is delivered to their devices," Rayburn said. "Since Apple does not own the last mile they won't be able to have complete control, but having their own CDN would give them more control and security than they have now."

Apple declined to comment.

87% of Pakistani households own cellphones, only 6.8% have internet connection: survey

PHOTO: FILE

The Pakistan Demographic and Health Survey (PDHS) recently published acomprehensive report in which it lists the percentage of households that have specific durable consumer goods.

Mobile phones and televisions rank as two of the most commonly owned consumer electronic items in Pakistan.

The difference in mobile phone ownership between urban and rural areas is not significant (94.7% compared to 83% respectively). However, the difference in percentage of households that have an internet connection is notable, with 17.4% of urban homes having access to internet compared to 1.3% of rural homes.

The second most commonly owned electronic consumer item on the list was the television, found in 60.2% of households nationwide.

Computer, air conditioner, and non-mobile telephone ownership was particularly low at 13.3%, 7.2%, and 9.0% respectively.

Transportation

The section on household possessions also enumerated the various means of transport that households in urban and rural areas own.

The most commonly owned means of transport across the board was the motorcycle/scooter with 34.5% of households owning one, while the second most popular means of transport was the bicycle, owned by 27.8% of households.

9% of all households (both urban and rural) own an animal-drawn cart, but only 6.2% of households own a car, truck or bus.

While conventional demographic information like household income and access to sanitation facilities is a good indication of living conditions and household socioeconomic status, information about ownership of durable consumer goods is also helpful. For example, access to radio or television exposes individuals to news, health information and educational materials.

Methodology

A total of 13,944 households were selected for the survey. Of these, 12,943 households were successfully interviewed. 6,335 of these households were from urban areas and 6,608 were from rural areas.

Why I just can't put down the Google Nexus 5

Many phones come close but it's the Nexus 5 that has won me over.

(Credit: Sarah Tew/CNET)

As a phone reviewer, my life is an endless stream of cutting-edge devices. In fact I'm constantly juggling four or five mobile gadgets at any given time, many being the best mobile handsets money can buy. But even after living with a litany of fancy flagships from Samsung, Motorola, HTC, and Sony, it's the scrappy Nexus 5 upstart that has finally won my heart, at least for now.

Believe me, settling on one device in my line of work is no easy feat. From the fantastically beautiful HTC One, or the compact yet freakishly advanced Motorola Moto X, to the Motorola Droid Maxx with its ridiculously unstoppable battery. I've had many short-term loves. But at the end of the day, I surprised myself by pushing all of them aside in favor of the newest Nexus.

Let me be clear though. Picking a phone is a very personal decision and what makes perfect sense to me or you may not for others. In my mind, though, the new Nexus adds up to a sum that's greater than its parts. Here's how I got there.

HTC's mighty metal machine
I won't deny it. Last year I fell completely head over heels for the HTC One's all-aluminum unibody chassis, solid feel and gleaming, polished edges that flat out scream luxury. I still get a thrill every time I scoop up Its slightly curved back and slide it into my palm. Even so, after a while the One's 5 ounces became a burden and I began yearning for a lighter device.

Other strengths of the One include a powerful set of stereo speakers framing the screen and HTC's unique Sense UI skin it places over Android. Of all the manufacturer tweaks to Google's OS, I like HTC's the best -- or more aptly put, have the most tolerance for it. That's especially true now that recent updates let you turn off the annoying Blinkfeed news aggregator. At launch this feature by default occupied the primary home screen and was impossible to do away with.

The camera, on the other hand, left me with mixed emotions. The camera app skills are fun and quirky, but I can't abide the low-res 4MP sensor and heavy-handed image processing. And when I considered the lack of uniform KitKat (HTC brought the new OS only to the select versions of the phone) and the aging Snapdragon 600 processor, I had no choice but to end my love affair with the HTC One. It is a sad, sad day.I'm also a fan of the One's stereo speakers and the resolution on its Full HD display (especially crammed into 4.7 inches). The latter is plenty bright, it delivers accurate colors and respectably wide viewing angles, and it packs more viewable real estate than the Moto X (which has the same size screen). And of all the manufacturer tweaks to Google's OS, I like HTC's the best -- or more aptly put, have the most tolerance for it.

Even one year later, the metal HTC One remains one heck of a phone.

(Credit: Sarah Tew/CNET)

The Moto X still has some magic
Lovingly crafted with comfort as a top goal, the Moto X is right up there designwise with the HTC One. The phone also has the distinction of being the current reigning king of Android compactness. The handset features an even more pronounced curve to its back surface than the HTC One. The result is it fits my hand like a glove and squeezes into the tightest of pockets.

Though its 4.7-inch OLED screen feel a little claustrophobic compared with other devices, it is large given the Moto X's small stature. And while resolution isn't sharp as I'd like, colors on the Moto X's OLED panel are vivid, saturated, and painted on a rich canvas of deep blacks.

Yet, the Moto X's real appeal is its efficient software that can also perform a few slick tricks. My two favorite skills in the Moto X's arsenal are Active Display and its Quick Capture camera. The first transforms the entire screen into a huge notification zone while the latter fires up the camera app by simply twisting your wrist.

The Moto X is compact, feature-packed, and feels great in the hand.

(Credit: Sarah Tew/CNET)

Long live the Droid Maxx

Extremely thin and covered in a futuristic and scratch-resistant Kevlar coating, the Droid Maxx is very handsomely appointed as well. And I certainly appreciate how the phone's back surface is soft to the touch but provides a sure grip and repels finger grease handily.

Similar to the Moto X, Motorola chose to install a lower resolution 5-inch display on the Droid Maxx though which is not as crisp as the full HD screen flaunted by its stiff flagship competition. Thanks to OLED technology, however, the Maxx showcases richly saturated colors, high-contrast, plus very wide viewing angles.

But that all pales in light of the Droid Maxx's real selling point, its ludicrously large capacity battery. Indeed, the phone's 3,500mAh powersource propelled the Maxx for a long 15 hours and 50 minutes. That remains the best run time I've seen but right in line with previous Motorola Maxx devices.

You'll find the same nifty hands-free voice command skills flaunted by the Moto X here too, plus Quick Capture and Active Display. And I love that Verizon pushed an Android 4.4 KitKat update to the Droid Maxx early. Still, I have almost identical misgivings about the Maxx as I do for the Moto X. Though its clear Motorola and Google optimized the heck out of the Droid Maxx (and all their 2013 phones) to run smoothly and with pep, there's a certain piece of mind I find from knowing a premium Snapdragon 800 has my back. Sorry, but the X8 doesn't quite do that for me.

You can't top the Droid Maxx's outstanding battery.

(Credit: Sarah Tew/CNET)

To Note or not to Note
On the other side of the size spectrum sits the intimidatingly large Samsung Galaxy Note 3. Despite my trepidations, once I got my mitts on the device it became crystal clear that the Note 3 is a phablet design triumph that eels more like a small paper notebook than a huge smartphone. Samsung successfully whittled its latest stylus-toting device down while simultaneously upping the screen's dimensions slightly (compared to the Note 2).

And, boy, what a screen this machine has! With a Full HD resolution display that serves up a vast diagonal size of 5.7 inches across, the Note 3 is akin to carrying an HDTV in your pocket. It's an excellent mobile TV set too boasting a panel which gets extremely bright, displays colors that sing and detail as crisp as a sweet, ripe apple.

When forced up against the harsh physical reality of snug pants pockets, however, Samsung's laudable efforts to disguise the Note 3's true girth fail. During my time with the device I'd often find myself dropping it in favor of the Moto X's, Nexus 5's, or even Droid Maxx's more manageable size. Another aspect I find irritating about the Note 3 is Samsung's bloated software skin it slathers all over its Android 4.3 Jelly Bean OS (sorry folks, no KitKat yet).

On the other hand, I do love the Galaxy Note 3's powerful Snapdragon 800 processor, the generous memory, and the excellent 13 megapixel camera. There's a reason this is the planet's best phablet. The trouble is, I found it at times was way too much handset for me to handle.

Though it looks and feels great, there's no getting around the Note 3's large size.

(Credit: Sarah Tew/CNET)

A screen that kills the deal
The odd fish in the water in more ways than one, Sony's Xperia Z1S definitely stands out from the herd of look-alike Android slabs. Sure its a dark black rectangle, but that's where its similarities with other handsets end. Like Sony's other Xperia phones, the 1ZS is dust resistant and able to be dunked in water to a depth of 45 feet (for up to 30 minutes). The slick-looking gadget is chiseled from lustrous glass too, just make sure your hands are clean since the Z1S sucks up fingerprints like a sponge.

The most serious of the Xperia Z1S' design flaws, though is its subpar LCD screen. Sure, the large 5-inch display features a Full HD resolution, but the Z1S is more difficult to see off-angle than its competitors. You may not think that's a big deal but trust me when I say it's a real drag. For instance, not being able to read the Z1S even when it's resting on my desk next to my keyboard gets old fast.

The Xperia Z1S runs Android Jelly Bean 4.3 which is a letdown as well and the phone's special Sony UI isn't as cleanly arranged as Google's vanilla flavor of software. Also, while Qualcomm's beefy Snapdragon 800 which deliver plenty of performance pep to the handset, that horsepower doesn't carry over to the Z1S' camera. Image quality is beautiful but, it takes its own sweet time between shots.

That's why Xperia Z1S, unlike the Xperia Z1 Compact which sadly is not sold in the US, leaves me flat.

The Xperia Z1S from Sony is elegant, waterproof, but its screen disappoints.

(Credit: Brian Bennett/CNET)

Doubling down on the Nexus 5
All of that brings me back to my sweet Nexus 5. Admittedly, it took its time to win me over At first glance, I thought the Nexus 5 to be pretty plain. Once I scooped the device up, though I was hit in the face with an aggressively sleek and minimalist presence that rivaling that of a stealth fighter.

Surprisingly the phone's jet-black color scheme (also available in white) which initially struck me as unexciting took on an entirely different dimension in my hands. The Nexus 5's chassis may be plastic yet is satisfyingly dense, and feels just as thoughtfully constructed as its rivals. Additionally the phone's gummy soft-touch surfaces help the gadget stay put properly in my palm.

LG, the actual manufacturer of the phone, equipped the Nexus 5 with a crisp Full HD 5-inch LCD (1,920x1080, IPS) screen. It's not quite as bright as its the HTC One's display and certainly lacks the eye-popping, vivid colors and deep blacks of the Note 3's OLED screen. That said, in daily use I find the Nexus 5's panel quite satisfactory. At its brightest setting the phone's display pumps out plenty of lumens to read comfortably under strong sunlight. Additionally I could place the device on shelves, desktops, or other off-angle viewing stations to enjoy video or read text without trouble.

The Nexus 5 stealthily captured my heart.

(Credit: Josh Miller/CNET)

Software though is the Nexus 5's true siren song. Leaping out of the box fully decked out with the freshest version of Android the world has known plus stout promises by Google to supply timely updates, the Nexus feels extremely responsive and sports a clean, modern interface. I also like how the phone heavily integrates Google Now advanced search and notification features into its UI. And with a Snapdragon 800 chip at its core, the Nexus 5 should have enough computing power to tackle any Android updates that occur for quite a while.

Also, despite the complaints I've heard around the campfire, the Nexus 5's 8-megapixel camera does a satisfying enough job covering basic photo and video duties in a pinch. I know it's not up to par with the cameras on the iPhone 5S, Nokia Lumia 1020, or Galaxy Note 3 but honestly I can live with that given the device's other positives.

That's why for an unlocked life free of carrier and manufacturer bloatware, I'm Nexus 5 all the way. Of course if something more impressive comes along, all bets are off.

Super Bowl may have stunk, but wireless traffic soars

MetLife Stadium ahead of the Super Bowl.

(Credit: Roger Cheng/CNET)

The Denver Broncos' pummeling by the Seattle Seahawks didn't dampen the number of selfies, video uploads, and text messages sent from the Super Bowl, with the wireless carriers reporting a significant spike in traffic.

Verizon Wireless saw an explosion of data usage. At the busiest hour, the carrier saw the number of data connections rise by a mind-boggling 800 percent versus a year ago in New Orleans. Verizon said it shattered its record for data usage in a single hour during the half-time show with Bruno Mars and the Red Hot Chili Peppers.

AT&T, meanwhile, said it saw traffic during its peak hour rise 52 percent over last year's Super Bowl.

That there were few complaints about the service is a testament to the preparation that went into ensuring MetLife Stadium in Rutherford, N.J., could handle the anticipated flood of traffic. While the game turned out to be a snooze, that didn't stop attendees from posting and sharing at a record pace. Getting the service right at a high-profile event is critical because of the sheer amount of influential individuals at the game.

It was particularly important for Verizon, which counts the Northeast as its home territory (its main campus is in New Jersey), and has its logo adorning both the inside and outside of MetLife Stadium. Verizon told CNET that it had boosted capacity by four times at MetLife Stadium, which the company said typically gets more traffic than a normal sports venue.

AT&T provided a few more interesting tidbits from the game. MetLife's in-stadium network carried 119 gigabytes of data between 5 p.m. and 6 p.m. ET, or when AT&T saw its peak usage. As the game went downhill from the surprising safety 12 seconds into the game, it's not surprising there was more activity during the build-up to the big game.

In total, AT&T said total data usage was 624GB -- the highest volume of traffic it has ever carried on an in-stadium network during a one-day sporting event. The total data was up 60 percent from a year ago in New Orleans. AT&T customers also made nearly 55,000 calls through the network.

Verizon didn't have any more specific data to provide.

CNET contacted T-Mobile and Sprint for their Super Bowl-related data, and we'll update the story when the companies respond.

White House to announce its first-ever Maker Faire

The maker movement is coming to Washington. Inspired by a kid and a marshmallow cannon, the White House is fully embracing DIY with the inaugural Maker Faire later this year

Apple co-founder Steve Wozniak playing Segway polo at the first-ever Maker Faire, in 2006.

(Credit: Daniel Terdiman/CNET)

The maker movement is officially coming to 1600 Pennsylvania Avenue.

Today, CNET has learned, the White House plans to announce its first-ever official Maker Faire, bringing a celebration of science, technology, engineering, and math, not to mention the ground zero of the do-it-yourself world, to the home of the leader of the free world.

In 2012, President Obama was inspired by a visit to the White House's East Room by then-16-year-old Joey Hudy, who wowed him by firing off a marshmallow cannon. The kid, known now as Joey "Marshmallow" Hudy, then handed the president a business card that read, "Don't be bored, make something."

Joey Hudy wowed President Obama with his marshmallow cannon during a visit to the White House in 2012.

(Credit: White House)

Those paying attention to last week's State of the Union address may have noticed Hudy sitting in First Lady Michelle Obama's box -- as clear a statement as any that the White House is behind the ideals of the maker movement.

But now, with the announcement of an actual White House Maker Faire, to be held sometime later this year, that message is being sent even more forcefully.

For those unfamiliar with Maker Faires, they are a series of what might be called science fairs on steroids. First held in San Mateo, Calif., in 2006, they are a celebration of all things scientific, creative, magical, crafty, and wonderful. In essence, Maker Faires, which are now held all around the world, are the beating heart of the DIY movement. With the White House now planning on hosting one, it's the clearest sign yet that this is a trend that has advanced beyond the insular world of geeks and tinkerers and made it to the most hallowed halls on the planet.

The White House has yet to release specific details for its Maker Faire plans, and it's certain it would host a much smaller version of the event than the ones that attract more than 100,000 people in San Mateo each spring. But according to text of a blog post it will publish later today, the White House said that the event "will be an opportunity to highlight both the remarkable stories of Makers like Joey [Hudy] and commitments by leading organizations to help more students and entrepreneurs get involved in making things."

The White House -- which is planning a series of initiatives that encourage industry, universities, municipalities, and foundations to support the maker movement -- also said that those who are interested in getting involved in the event can send photos, videos, or descriptions of their projects to maker@ostp.gov, or can tweet them using the hashtag "IMadeThis."

The White House will be hosting its first-ever Maker Faire sometime later this year.

(Credit: Daniel Terdiman/CNET)

Dale Dougherty, one of the founders of Maker Faire, told CNET that he and his fellow organizers will be involved in the production of the White House event, but that it's very unclear what form it will take, and what the logistics will be like. "We're going to bring our electronics into the White House?" Dougherty said. "We're going to have to figure that all out....The White House kind of has to define what this is. How much space, and who can come -- whether it's public or private."

Still, for Dougherty, having the White House get on board is a big thing. "It's pretty nice," he admitted. "Cities want to organize Maker Faires. Countries see this tied to innovation, to creativity, and it's really wonderful to see that connection. I think it's a genuine thing. You come to Maker Faire and you see all this stuff happening. We want more of it, to help stimulate all this activity."

A couple of weeks ago, Doughtery added, he was in Norway, helping to launch the first Maker Faire there. He said that in Norway, he announced that this was the "year of the maker." And now? "The White House thing would definitely help us celebrate the year of the maker.

Bayern players get Germany preference - Hummels

The defender says that the Schwarzgelben players joke about transfer rumours in training, while revealing that they are confident of finishing second in the Bundesliga

Bayern Munich players get preferential treatment in Germany's national team, according to Borussia Dortmund centre-back Mats Hummels.

The 25-year-old, who is one of the only BVB regulars in Joachim Low's starting line-up, feels that playing at the Allianz Arena is a massive advantage when it comes to die Mannschaft.

"I believe that, in principle, it is easier to get into the national team if you perform well at Bayern, compared to what the benefits of playing for other clubs are," Hummels told Welt am Sonntag. 

"If someone plays five good games in a row for the Bavarians, there is more talk about them being in the national team than of those who play five good games in a row for Dortmund or Wolfsburg or Bayer Leverkusen."

Hummels' status as an automatic starter for Germany has been rocked in the last 12 months due to mediocre showings on the international stage, but the defender says this has only improved his rapport with head coach Low.

"I have to go say very clearly: in this phase, where I've had a small crisis, my relationship with the national coach has been much better," he added."

"We have since talked very openly. That was very important for me. So I got to know his thoughts and ideas even better. In turn, he has listened to my opinion."


Barcelona-bound? | Hummels laughed off links with Camp Nou
Hummels has been rumoured for a long while to be a Barcelona target, but he laughed off the suggestion of him leaving Signal Iduna Park in the summer and said that the Bundesliga club do well at replacing departed players with quality ones.

"We do have our jokes about [the transfer rumours] and look at them in a much more relaxed way than many might believe," he added.

"Also, this is because we have great confidence in the people in our club's management. I assume that already the new season is being planned and - if we should actually lose players - again good to be fetched. 

"Last summer, we brought on board Sokratis Papastathopoulos, Henrikh Mkhitaryan and Pierre-Emerick Aubameyang."

However, with Bayern 14 points clear of the Schwarzgelben in the Bundesliga with a game in hand, Hummels has accepted that finishing second is the best Jurgen Klopp's men can manage this campaign.

"Second place in the Bundesliga is our goal," the defender continued. "It has to be.

"I've never measured success in terms of trophies. I would never say, 'If I have never won the Champions League, I am not happy in life'.

"I do not necessarily want to play for the best team in the world. I would prefer to win the Champions League with Dortmund than six with another club.