Page 24 - ARUBA TODAY

Tuesday 4 april 2017 BUSINESS
A24

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 only broadband provider
AP Technology Writer in those areas in the long
NEW YORK (AP) — Federal term.
regulators are letting Char- Charter bought Time War-
ter out of a requirement ner Cable and Bright House
that would have forced in May 2016 for $67 billion.
it to compete with other The buildout was one of
broadband providers and the conditions Charter ac-
possibly cut prices. cepted in order to win FCC
The decision relaxes one of approval for the deal.
the conditions imposed on Gigi Sohn, who had been
Charter when it absorbed an adviser to the FCC
Time Warner Cable and chairman at the time, Tom
represents another sign Wheeler, blasted the rever-
that the country’s telecom sal and said it would not be
cop is tilting in favor of the effective in getting many
industry it monitors. more people online.
Charter Communications “They can build out their
had agreed to extend its networks but people won’t
network to areas where be able to buy their service.
there is already a broad- You can’t close the digital
band provider. This require- divide without dealing with
ment was enacted be- the price issue,” she said.
cause most U.S. households This photo shows a Charter Communications van in St. Louis. Now cable giant Charter won’t have “This FCC is bound and
don’t have a choice for to compete with other cable companies in new areas. Federal telecom regulators have tweaked determined to make sure
a condition of its deal to buy Time Warner Cable. They had said Charter would have to compete
high-speed home internet. with another fast-internet provider for 1 million customers. Now they can build in areas that don’t incumbents don’t have to
Greater competition could have fast internet. compete.”
lower prices. (AP Photo/Jeff Roberson) Americans without access
But smaller cable compa- The agency’s new chair- ready service. Americans.” to home broadband skew
nies worried about that man, Ajit Pai, says getting The reversal is the latest in The sole remaining Demo- poor and rural, where it’s
competition and asked the more Americans online — a slew of measures at the cratic commissioner at more expensive for internet
Federal Communications what’s called “closing the FCC that benefit the tele- the FCC, Mignon Clyburn, service providers to con-
Commission to revisit the digital divide” — is impor- com industry. agreed with the decision. nect houses.
requirement. tant to him. He wants to cut Pai said in a statement She said that “it has be- Charter said in a statement
Under a new regime, the regulations to encourage Monday that the previous come clear” that Charter that the FCC’s change will
FCC said Monday that broadband companies buildout requirement had will choose to build in mar- let it “more fully devote our
Charter can instead build to expand their networks not been in the public in- kets where it has the weak- resources and attention to
in areas where there isn’t and doesn’t see the point terest and was “against the est competitors. She said building out high-speed
high-speed internet al- of mandating a network goal of promoting great- she worried that Charter broadband to areas with-
ready. buildout where there is al- er Internet access for all would wind up being the 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-
AP Economics Writer declines, the Commerce State and local govern- that trend by boosting in- structure concerns have
WASHINGTON (AP) — U.S. Department said. ments spent 0.9 percent frastructure spending by resurfaced after a large fire
developers ramped up Builders are rapidly putting more on construction, driv- $1 trillion over the next de- last week caused the col-
construction spending up more homes in response en by roads, schools and cade. Yet it’s unclear when lapse of a highway bridge
in February to the larg- to strong demand that has recreational buildings. legislation to bring about outside Atlanta, snarling
est amount in nearly 11 pushed up prices for exist- The federal government, such an increase will be in- rush-hour traffic.
years, led by more building ing homes. meanwhile, cut construc- troduced. The construction of com-
of homes, highways and Yet it hasn’t yet been tion spending for the sec- State and local govern- mercial buildings such as
schools. enough to relieve a short- ond straight month and has ments have also spent less hotels, office towers, and
Construction spending rose age of homes for sale. cut back 9 percent from a on construction in the past hospitals fell 0.3 percent
0.8 percent in February to The accelerated building year ago. year. They are spending in February, the second
the highest level since April could boost the economy President Donald Trump 8 percent less compared straight decline. q