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          BUSINESSTuesday 4 April 2017

Shares in UK chipmaker dive 60 pct after Apple ends contract 

DANICA KIRKA                    of entire companies that      Imagination says Apple has     Imagination’s intellectual                                           to Imagination’s assertion
Associated Press                work with it.                 for years used the com-        property rights.                                                     that Apple has not provid-
LONDON (AP) — Shares            Imagination, a multimedia,    pany’s technology in the       “Accordingly Imagination                                             ed any evidence to back
in chipmaker Imagination        processor and communi-        graphics processor units       does not accept Apple’s                                              its assertion that it can do
Technologies plunged over       cations technology com-       of its phones, tablets and     assertions,” the company                                             without Imagination’s tech-
60 percent on Monday af-        pany, said Apple Inc. “will   watches but has asserted       said. There are longer-term                                          nology without violating its
ter the British company an-     no longer use the group’s     that it is working on a “sep-  issues than the loss of royal-                                       intellectual property rights,
nounced that Apple plans        intellectual property in its  arate, independent” de-        ties and license fees, which                                         patents and confidential
to stop using its products.     new products” within two      sign to control its products.  amounted to 60.7 million                                             information. To defend its
The development high-           years. That would mean the    Imagination said “it would     pounds last year.                                                    rights, Imagination may ul-
lights how, through its sheer   company wouldn’t be eli-      be extremely challenging”      Nick Kounoupias, a Lon-                                              timately have to sue the
size, Apple’s decisions can     gible for royalty payments    for Apple to design a new      don-based intellectual                                               world’s biggest publicly
make or break the fortune       under existing agreements.    product without infringing     property expert, pointed                                             traded company.q

Charter won’t have to compete with other cable companies now 

TALI ARBEL                      This photo shows a Charter Communications van in St. Louis. Now cable giant Charter won’t have                                    only broadband provider
AP Technology Writer            to compete with other cable companies in new areas. Federal telecom regulators have tweaked                                       in those areas in the long
NEW YORK (AP) — Federal         a condition of its deal to buy Time Warner Cable. They had said Charter would have to compete                                     term.
regulators are letting Char-    with another fast-internet provider for 1 million customers. Now they can build in areas that don’t                               Charter bought Time War-
ter out of a requirement        have fast internet.                                                                                                               ner Cable and Bright House
that would have forced                                                                                                                                            in May 2016 for $67 billion.
it to compete with other                                                                                                                (AP Photo/Jeff Roberson)  The buildout was one of
broadband providers and                                                                                                                                           the conditions Charter ac-
possibly cut prices.            The agency’s new chair- ready service.                       Americans.”                                                          cepted in order to win FCC
The decision relaxes one of                                                                                                                                       approval for the deal.
the conditions imposed on       man, Ajit Pai, says getting The reversal is the latest in The sole remaining Demo-                                                Gigi Sohn, who had been
Charter when it absorbed        more Americans online — a  slew of measures at the cratic commissioner at                                                         an adviser to the FCC
Time Warner Cable and           what’s called “closing the FCC that  benefit the tele- the FCC, Mignon Clyburn,                                                   chairman at the time, Tom
represents another sign                                                                                                                                           Wheeler, blasted the rever-
that the country’s telecom      digital divide” — is impor- com industry.                    agreed with the decision.                                            sal and said it would not be
cop is tilting in favor of the                                                                                                                                    effective in getting many
industry it monitors.           tant to him. He wants to cut Pai said in a statement She said that “it has be-                                                    more people online.
Charter Communications          regulations to encourage Monday that the previous come clear” that Charter                                                        “They can build out their
had agreed to extend its        broadband companies buildout requirement had will choose to build in mar-                                                         networks but people won’t
network to areas where                                                                                                                                            be able to buy their service.
there is already a broad-       to expand their networks not been in the public in- kets where it has the weak-                                                   You can’t close the digital
band provider. This require-                                                                                                                                      divide without dealing with
ment was enacted be-            and doesn’t see the point terest and was “against the est competitors. She said                                                   the price issue,” she said.
cause most U.S. households                                                                                                                                        “This FCC is bound and
don’t have a choice for         of mandating a network goal of promoting great- she worried that Charter                                                          determined to make sure
high-speed home internet.       buildout where there is al- er Internet access for all would wind up being the                                                    incumbents don’t have to
Greater competition could                                                                                                                                         compete.”
lower prices.                                                                                                                                                     Americans without access
But smaller cable compa-                                                                                                                                          to home broadband skew
nies worried about that                                                                                                                                           poor and rural, where it’s
competition and asked the                                                                                                                                         more expensive for internet
Federal Communications                                                                                                                                            service providers to con-
Commission to revisit the                                                                                                                                         nect houses.
requirement.                                                                                                                                                      Charter said in a statement
Under a new regime, the                                                                                                                                           that the FCC’s change will
FCC said Monday that                                                                                                                                              let it “more fully devote our
Charter can instead build                                                                                                                                         resources and attention to
in areas where there isn’t                                                                                                                                        building out high-speed
high-speed internet al-                                                                                                                                           broadband to areas with-
ready.                                                                                                                                                            out it today.”q

US construction spending rose to nearly 11-year high 

CHRIS S. RUGABER                2006, after two months of     this year.                     has pledged to reverse                                               with February 2016. Infra-
                                declines, the Commerce        State and local govern-        that trend by boosting in-                                           structure concerns have
AP Economics Writer             Department said.              ments spent 0.9 percent        frastructure spending by                                             resurfaced after a large fire
                                Builders are rapidly putting  more on construction, driv-    $1 trillion over the next de-                                        last week caused the col-
WASHINGTON (AP) — U.S.          up more homes in response     en by roads, schools and       cade. Yet it’s unclear when                                          lapse of a highway bridge
                                to strong demand that has     recreational buildings.        legislation to bring about                                           outside Atlanta, snarling
developers ramped up            pushed up prices for exist-   The federal government,        such an increase will be in-                                         rush-hour traffic.
                                ing homes.                    meanwhile, cut construc-       troduced.                                                            The construction of com-
construction      spending      Yet it hasn’t yet been        tion spending for the sec-     State and local govern-                                              mercial buildings such as
                                enough to relieve a short-    ond straight month and has     ments have also spent less                                           hotels, office towers, and
in February to the larg-        age of homes for sale.        cut back 9 percent from a      on construction in the past                                          hospitals fell 0.3 percent
                                The accelerated building      year ago.                      year. They are spending                                              in February, the second
est amount in nearly 11         could boost the economy       President Donald Trump         8 percent less compared                                              straight decline. q

years, led by more building

of homes, highways and

schools.

Construction spending rose

0.8 percent in February to

the highest level since April
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