A problem with the software in Ericsson equipment is causing outages across the world, including O2 users in Great Britain and SoftBank users in Japan, according to a report in the Financial Times earlier today.

Ericsson took blame for the outage in a press release. It apparently involves faulty software on certain Ericsson equipment used on the affected company’s mobile networks. While Ericsson indicated it involved multiple countries, it appeared to try to minimize the impact by stating it involved “network disturbances for a limited number of customers.” The FT report indicated that it was actually affecting millions of mobile customers worldwide.

Regardless, the company said that an initial analysis attributed the problem to an expired software certificate on the affected equipment. Börje Ekholm, Ericsson president and CEO, said they were working to restore the service as soon as possible, which probably isn’t soon enough for people who don’t have a working cell phone at the moment.

“The faulty software that has caused these issues is being decommissioned and we apologize not only to our customers but also to their customers. We work hard to ensure that our customers can limit the impact and restore their services as soon as possible,” Ekholm said in a statement.

While the press release went on to say they are working to restore the service throughout the day, as of publishing this article, the O2 outage maps still showed problems in the London area and throughout Great Britain.

The AT&T and Verizon outage pages are also currently showing outages in the U.S, but Ericsson reports that these are unrelated to today’s issues with their equipment, which are only affecting customers outside of the US.

(Note that Verizon owns this publication.)

Source: Tech Crunch

Contentful, a Berlin- and San Francisco-based startup that provides content management infrastructure for companies like Spotify, Nike, Lyft and others, today announced that it has raised a $33.5 million Series D funding round led by Sapphire Ventures, with participation from OMERS Ventures and Salesforce Ventures, as well as existing investors General Catalyst, Benchmark, Balderton Capital and Hercules. In total, the company has now raised $78.3 million.

It’s been less than a year since the company raised its Series C round and, as Contentful co-founder and CEO Sascha Konietzke told me, the company didn’t really need to raise right now. “We had just raised our last round about a year ago. We still had plenty of cash in our bank account and we didn’t need to raise as of now,” said Konietzke. “But we saw a lot of economic uncertainty, so we thought it might be a good moment in time to recharge. And at the same time, we already had some interesting conversations ongoing with Sapphire [formerly SAP Ventures] and Salesforce. So we saw the opportunity to add more funding and also start getting into a tight relationship with both of these players.”

The original plan for Contentful was to focus almost explicitly on mobile. As it turns out, though, the company’s customers also wanted to use the service to handle its web-based applications and these days, Contentful happily supports both. “What we’re seeing is that everything is becoming an application,” he told me. “We started with native mobile application, but even the websites nowadays are often an application.”

In its early days, Contentful focused only on developers. Now, however, that’s changing, and having these connections to large enterprise players like SAP and Salesforce surely isn’t going to hurt the company as it looks to bring on larger enterprise accounts.

Currently, the company’s focus is very much on Europe and North America, which account for about 80 percent of its customers. For now, Contentful plans to continue to focus on these regions, though it obviously supports customers anywhere in the world.

Contentful only exists as a hosted platform. As of now, the company doesn’t have any plans for offering a self-hosted version, though Konietzke noted that he does occasionally get requests for this.

What the company is planning to do in the near future, though, is to enable more integrations with existing enterprise tools. “Customers are asking for deeper integrations into their enterprise stack,” Konietzke said. “And that’s what we’re beginning to focus on and where we’re building a lot of capabilities around that.” In addition, support for GraphQL and an expanded rich text editing experience is coming up. The company also recently launched a new editing experience.

Source: Tech Crunch

Want to run your own home shopping network? Facebook is now testing a Live video feature for merchants that lets them demo and describe their items for viewers. Customers can screenshot something they want to buy and use Messenger to send it to the seller, who can then request payment right through the chat app.

Facebook confirms the new shopping feature is currently in testing with a limited set of Pages in Thailand, which has been a testbed for shopping features. The option was first spotted by social media and reputation manager Jeff Higgins, and re-shared by Matt Navarra and Social Media Today. But now Facebook is confirming the test’s existence and providing additional details.

The company tells me it had heard feedback from the community in Thailand that Live video helped sellers demonstrate how items could be used or worn, and provided richer understanding than just using photos. Users also told Facebook that Live’s interactivity let customers instantly ask questions and get answers about product specifications and details. Facebook has looked to Thailand to test new commerce experiences like home rentals in Marketplace, as the country’s citizens were quick to prove how Facebook Groups could be used for peer-to-peer shopping. “Thailand is one of our most active Marketplace communities” says Mayank Yadav, Facebook product manager for Marketplace.

Now it’s running the Live shopping test, which allows Pages to notify fans that they’re broadcasting to “showcase products and connect with your customers.” Merchants can take reservations and request payments through Messenger. Facebook tells me it doesn’t currently have plans to add new partners or expand the feature. But some sellers without access are being invited to join a waitlist for the feature. It also says it’s working closely with its test partners to gather feedback and iterate on the live video shopping experience, which would seem to indicate it’s interested in opening the feature more widely if it performs well.

Facebook doesn’t take a cut of payments through Messenger, but the feature could still help earn the company money at a time when it’s seeking revenue streams beyond News Feed ads as it runs out of space there, Stories take over as the top media form and user growth plateaus. Hooking people on video viewing helps Facebook show lucrative video ads. The more that Facebook can train users to buy and sell things on its app, the better the conversion rates will be for businesses, and the more they’ll be willing to spend on ads. Facebook could also convince sellers who broadcast Live to buy its new Marketplace ad units to promote their wares. And Facebook is happy to snatch any use case from the rest of the internet, whether it’s long-form video viewing or job applications or shopping to boost time on site and subsequent ad views.

Increasingly, Facebook is setting its sights on Craigslist, Etsy and eBay. Those commerce platforms have failed to keep up with new technologies like video and lack the trust generated by Facebook’s real-name policy and social graph. A few years ago, selling something online meant typing up a generic description and maybe uploading a photo. Soon it could mean starring in your own infomercial.

[PostScript: And a Facebook home shopping network could work perfectly on its new countertop smart display Portal.]

Source: Tech Crunch

The latest Falcon 9 mission launched successfully, but its reusable booster just missed sticking the landing thanks to a stalled hydraulic pump on the grid fin, according to a tweet by Elon Musk.

Footage captured by the Twitch streamer DazValdez, who was on the ground for the launch, managed to record the whole missed landing. And, as the footage shows, the Falcon 9’s first stage booster just missed the landing zone at Cape Canaveral.

The Tuesday flight from Cape Canaveral Air Force Station in Florida is delivering 5,600 pounds of equipment and supplies to the International Space Station that are supporting roughly 250 science experiments expected to occur on the station. And the flight marks the 16th supply run SpaceX has made out to the Space Station.

The Dragon craft separated from Falcon 9’s second stage as planned — at about roughly ten minutes after liftoff. It’s now headed to the space station where it will attach on Saturday, December 8, according to a statement from the company. It’s the second flight out to the ISS for this particular Dragon spacecraft, which made its first run out in February 2017.

The next critical step for the latest SpaceX mission will be attaching the Dragon spacecraft to the station. To do that, ISS crew members will use the station’s 57.7 foot robotic arm to catch the capsule and attach it to the station’s orbiting laboratory.

The Dragon is scheduled to return to Earth in early January with about 4,000 pounds of cargo where it will splash down in the Pacific Ocean just off the coast of Baja, Calif.

SpaceX has had a busy week already. Yesterday the company launched a commercial flight with a payload of 64 small satellites commissioned by the private space scheduling and freight hauling company Spaceflight Industries.

It was the first commissioned flight from Spaceflight, which has raised over $200 million in venture capital financing to build a private spaceflight scheduling and rideshare service.

The first dedicated mission from Spaceflight to low Earth orbit proved successful as it launched the largest single rideshare mission from a U.S.-based launch vehicle to-date.

Included in that mission were 15 microsats and 49 cubesats from commercial and government entities including universities, startup companies, and even a middle school, according to a statement from SpaceX .

17 countries, including the U.S., Australia, Italy, Netherlands, Finland, South Korea, Spain, Switzerland, U.K., Germany, Jordan, Kazakhstan, Thailand, Poland, Canada, Brazil, and India were represented in the launch.

Source: Tech Crunch

With the release of iOS 12, Apple hid the button that lets you jump from front camera to rear camera (or vice versa) during a FaceTime call. Previously a one-click thing, it was suddenly shoved away into a menu as if it wasn’t something you might use a half dozen times per call.

Don’t like the change? Good news! Apple is undoing it.

As of iOS 12.1.1, released today, the camera swap button is returning to the main call screen. Basically every FaceTime call I’ve had since this change was made has started with someone asking “Wait, how do I flip the screen. What the hell, where’d that button go?” so changing this back is the only right call.

This build also reintroduces the ability to take Live Photo captures during a one-on-one FaceTime call, if both people in the call have the feature toggled on. Don’t want anyone grabbing Live Photos mid-chat? A switch in FaceTime’s settings lets you disable it.

Beyond those two things, this update mostly polishes up existing features. According to the patch notes: real-time text now works when using Wi-Fi calling, Dual SIM support has been added for additional carriers, you can now hide the sidebar in the News app on the iPad and it has all the usual bug/performance fixes.

Source: Tech Crunch

Apple’s new iPhone XR comes in a half dozen colors, including blue, yellow, red and coral. In fact, the colors are sufficiently fresh that it’d be kind of silly to buy a traditional phone case that would protect it but also hide if from plain view.

It’s for this reason that Apple just began selling a clear case, which, because it is Apple, sounds special despite being a clear plastic case. Think “thin, light, and easy to grip,” and “crafted with a blend of optically clear polycarbonate and flexible TPU materials, so the case fits right over the buttons for easy use.”

Also, a scratch-resistant coating has been applied not only to the exterior, but also to the interior.

Of course, a feature that early customers of the phone will appreciate even more is the ability to wirelessly charge their phones without having to remove the case.

They’ll also like the price, presumably. The new clear case is just $39. Indeed, the company introduced the iPhone XR in mid September as a lower-cost alternative to the iPhone XS Max.

Not that any version is exactly cheap — the IPhone XR is retailing right now for $749; the iPhone XS is $999; the iPhone XS Max, a dual-SIM iPhone that was also introduced in mid-September, starts at $1,099.

Source: Tech Crunch

First some notes on SoftBank’s rumored expansion into China and its weird fund math, then Foxconn and then quick notes on tech depression, Huawei and more.

TechCrunch is experimenting with new content forms. This is a rough draft of something new — provide your feedback directly to the author (Danny at danny@techcrunch.com) if you like or hate something here.

SoftBank has fund visions (and a Vision Fund) for China? That, and more money

Kane Wu at Reuters reported overnight that SoftBank is looking to open an office and hire an investment team in China, which Wu says will be based in Shanghai. That’s following the fund’s recent global expansion with new targeted offices in Saudi Arabia and India.

When I saw this, I sort of did a double-take: SoftBank doesn’t have a presence in China? The fund has reportedly been seeking investments in some of China’s leading unicorn stars, including controversial face recognition startup SenseTime, and leading edtech startup Zuoyebang (作业帮, which literally translates as “school assignment help”). (Hat-tips to Selina Wang at Bloomberg, who seems to just be sitting in Vision Fund partner meetings). And of course, it dumped a pretty penny into WeWork China, where it was part of a $500 million syndicate, and is a huge investor in Didi.

It’s sort of obvious that SoftBank would expand to China. What will be interesting though is to see how the fund structures itself long-term. As far as I know, the Vision Fund is a singular “fund” that invests worldwide (send me an email if I am wrong on this count). China has a thicket of regulations on funds and companies, which is one of several reasons we see specifically China-focused vehicles (such as Lightspeed and Lightspeed China or Sequoia and Sequoia China). If the Vision Fund continues to be a unified fund, that would be a notable strategy shift that might be cloned by other trans-Pacific funds.

Aside: SoftBank Vision Fund math is complicated

When it first closed the Vision Fund, SoftBank explained they had raised just over $93 billion in committed capital or, more precisely, around $93.15-$93.2 billion, according to the initial investor presentations and its annual Form D filings. In those docs, SoftBank said that the fund was financed with $28 billion from SoftBank and $65 billion from third-party investors.

On top of the $93 billion raised for the Vision Fund, SoftBank detailed that it had committed $4.5 billion of its own capital to a separate “Delta Fund,” which was used to alleviate conflicts around SoftBank’s Didi investment. Thus, SoftBank’s total VC funding aggregates to around $97.7 billion.

To add a complication, SoftBank later shifted $1.6 billion of the Vision Fund’s previously disclosed $65 billion in third-party capital over to the Delta Fund. In current disclosures, SoftBank shows $91.7 billion of committed capital for the Vision Fund ($28.1 billion from SoftBank and $63.6 billion from third-party investors). For the Delta Fund, SoftBank shows $6 billion in committed capital ($4.5 billion SoftBank contribution and $1.6 billion from third-party investors).

Here is where it gets even more complicated. In its latest filings, SoftBank also notes that it completed the interim closing of an additional $5 billion for the Vision Fund in mid-October, “intended for the installment of an incentive scheme for operations of SoftBank Vision Fund.” That additional cash would bring Vision Fund’s total committed capital to $96.7 billion, and $102.7 billion together with the Delta Fund.

While it wouldn’t be included in the committed equity capital total, SoftBank is also rumored to be raising a $4 billion credit facility to help finance additional acquisitions.

So, it’s probably best to say that the Vision Fund — as constituted right now — is $97 billion or $96.7 billion with precision, assuming this $5 billion reaches a final close.

SoftBank IPO

We have, of course, covered SoftBank quite obsessively, particularly its debt situation (Part 1, Part 2, Part 3, Part 4 and Part 5). What we haven’t covered more recently are the latest developments in SoftBank’s IPO, which is slated for December 19th and expected to bring in a haul of $21 billion. More to come on that front in the coming days.

Foxconn or Foxgone?

The South China Morning Post reported yesterday that Foxconn is investigating expanding its factories to Vietnam in order to avoid tariffs. Makes sense, and I have some calls this week and next trying to suss out how much hardware supply chains have really changed in response to the trade conflict.

That decision though isn’t just about the trade conflict, but also about the quickly increasing wages of Chinese laborers, as well as political interference from Beijing. The Trump administration’s trade policies are just the excuse Foxconn needs to (at least partially) extricate itself from China, while saving face in the process.

What’s interesting is that Foxconn is also dealing with a massive brush fire in Wisconsin, where it received one of the largest economic development incentives ever offered by an American government, a whopping $3 billion package that was expected to drive manufacturing employment in the state.

Overnight, Republicans in the state legislature passed a bill that would place large restrictions on incoming Democratic governor Tony Evers. Jessie Opoien for the (Madison) Cap Times:

Under the bill, legislators would have increased influence over the Wisconsin Economic Development Corporation, and the WEDC board, not the governor, would appoint the job creation agency’s CEO. However, the governor’s power to appoint a CEO would be restored in September 2019.

That is the agency that provided the Foxconn funding, which has become a political football in Wisconsin politics. Republicans are trying to protect one of the major economic legacies of outgoing governor Scott Walker, as well as what they believe is the future direction of manufacturing work in the state. Democrats smell a boondoggle in the making.

If that wasn’t all, rumored skimpy sales for iPhones is putting enormous pressure on Foxconn’s bottom line. Debby Wu at Bloomberg reported two weeks ago that:

The contract manufacturer aims to cut 20 billion yuan ($2.9 billion) from expenses in 2019 as it faces “a very difficult and competitive year,” according to an internal document obtained by Bloomberg. The company’s spending in the past 12 months is about NT$206 billion ($6.7 billion).

Foxconn is a very dynamic organization that has weathered repeated crises over the years. It is pretty much unique in what it does today: very few other companies can scale up and down hundreds of thousands of workers to meet iPhone and other device demands with such alacrity.

But, the fundamentals of the mobile device market have apparently changed dramatically this year, and Foxconn is likely to be the company most harmed as the assembler of those devices. That could destroy not just the Chinese dream of leading in manufacturing, but also the Vietnam and Wisconsin dreams as well.

Also: If you haven’t read it, this poetry by a Foxconn worker who committed suicide really resonated with me. Foxconn’s suicide problem is well-documented, but we often don’t hear from the individuals themselves.

Quick bites

Which big tech companies are most depressed?

Blind, the anonymous enterprise chatting app that has taken the tech world by storm, published survey results asking tech employees “I believe I am depressed.” Roughly 40 percent of employees responded yes. Interestingly, there wasn’t too much variation between companies. Amazon had the highest rate at 43 percent and Apple had the lowest rate at 30 percent. It’s an informal survey, probably without high scientific validation, but it is a reminder for all of us in the community that mental health and burnout is very real in the startup and tech ecosystems and we should be vigilant in helping each other when times are rough.

More bad news for Huawei as British Telecom bans its equipment

This is one of those stories that we are just going to keep hearing about. After bans in Australia and New Zealand, British Telecom has announced they will not just ban Huawei’s 5G equipment, but also its 3G and 4G equipment. Britain, like Aus/NZ, Canada and the U.S., is part of the Five Eyes intelligence network, and national security officials have been leading the crusade against Huawei infrastructure. What’s interesting is not just the rapidity of the bans, but also that the bans haven’t (from what I have seen) migrated outside the Five Eyes community yet.

Pendo commits to hometown of Raleigh

Pendo is a digital product management platform that has had quite a bit of success with customers and has raised more than $100 million in VC funding, most recently a Series D from Sapphire. The company announced that they have received a grant from home state North Carolina’s economic development department to grow in the Raleigh region. Pendo is committing $34.5 million to its headquarters (with the potential of creating 590 jobs), while the state will offer around $8.8 million in potential reimbursements over the next 12 years.

Given what I wrote yesterday about Wes McKinney leaving NYC and heading to Nashville and the work Chattanooga is doing to aid startups, it’s great to see other hotspots like Raleigh, NC invest to build out their ecosystems in a compelling way.

Todd Olson, CEO of Pendo, explained to me by email that, “Office rents in our downtown are a fraction of the cost of operating in other cities, and the cost of living is appealing to our employees. They can afford to buy a house here. In some markets around the country, that is becoming more difficult. It’s also just a nice place to live and work.”

Creative work is increasingly going to have to find a lower-cost home.

What’s next

I am still obsessing about next-gen semiconductors. If you have thoughts there, give me a ring: danny@techcrunch.com.

Thoughts on articles

The LP Anti-Portfolio – Great short read. Lindel Eakman, former managing director at UTIMCO, the University of Texas/Texas A&M endowment, gives a list of funds that he passed on that he now regrets. Unfortunately, this is pretty rare coming from an LP, albeit a former one. It would be great to get more public discussion on which funds were missed and why by LP investors.

Hopefully more reading time tomorrow.

Reading docket

What I’m reading (or at least, trying to read)

• Huge long list of articles on next-gen semiconductors. More to come shortly.

Source: Tech Crunch

Hulu will top 23 million subscribers by year-end, according to comments made by Hulu CEO Randy Freer speaking at Business Insider’s Ignition conference this morning. While Freer didn’t state the number outright, he said that the business will have added more subscribers in the second half of 2018 than it did in the first. Based on the numbers we already know, that would put Hulu somewhere in the 23+ to 24 million range by the start of 2019.

Hulu announced at CES in January 2018 its subscriber count had reached 17 million. It then updated that number at this year’s NewFronts presentation to 20 million. If Hulu is on track to add more subscribers in the second half of the year, then it will at least top 23 million.

“I think our numbers will be really impressive,” Freer said. “But, we need to get 30, 40, 50 million homes in a way that we can scale,” he added.

The exec also spoke of the potential for Hulu’s live TV business, offering another hint of how quickly that product was growing by way of a comparison with a competitor – AT&T’s DirecTV Now.

“We think the live TV market is robust,” Freer said. “DirecTV Now announced their number in the third quarter and we grew 10x of where DirecTV Now was. We were growing in October and November. We had our best third quarter, our best October, our best November,” he added.

DirecTV Now had added 49,000 customers in the third quarter. That means Hulu’s Live TV product alone had grown by nearly 500,000 subscribers in the quarter, which would account for a big chunk of Hulu’s overall subscriber growth of 3 million-plus.

The CEO didn’t talk about what’s in store for Hulu with the change in ownership, where Disney is becoming the majority shareholder by way of the 21st Century Fox acquisition. It will take a 60% share, leaving Comcast as a 30% owner and AT&T’s WarnerMedia with 10%. (But the latter is considering selling its stake, AT&T just told investors.)

However, he did offer some hints of what’s on Hulu’s roadmap, including an international expansion.

“We’re exploring all opportunities to expand the geography…we have support from ownership to drive that drive that opportunity,” Freer said.

Freer also noted that Hulu’s ad revenue, thanks its combination of live TV and on-demand, has grown by north of 50 percent over the last year, and is continuing to grow.

“The ads business is really starting to come into its own, and our ability to generate ARPU around ad subs has been terrific,” he said.

He also painted a picture of the flexibility a digital TV service like Hulu offers, suggesting that consumers may one day be able to pay for individual shows on ad-free basis, instead of having to subscribe to an ad-free tier. Or they could toggle on live TV to watch their favorite sports games, then turn it off when they ended – effectively describing a pay-per-view sports product.

“We know sports has a tendency to drive subscriptions…so we will certainly be evaluating sports as an opportunity,” Freer noted.

This ability to personalize your TV is one of the reasons Hulu believes the cable TV era is over, the CEO added.

“The aggregated linear cable network as a business…it had a great 20 year run. I think the next decade – it’s not going to be about aggregated linear TV networks or scheduled networks,” Freer said.

Source: Tech Crunch