Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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How data centres affect electricity, prices, water consumption and jobs

Data centres have become critical infrastructure for modern economies, supporting services ranging from digital communications and online commerce to emergency response systems and financial transactions.

As AI expands, demand for cloud computing continues to accelerate, increasing the need for additional data centre capacity worldwide.

Concerns about environmental impact often focus on electricity and water use, yet recent data indicate that data centres are not primary drivers of higher power prices and consume far less water than many traditional industries.

Studies show that rising electricity costs are largely linked to grid upgrades, climate-related damage and fuel prices instead of large-scale computing facilities, while water use by data centres remains a small fraction of overall consumption.

Technological improvements have further reduced resource intensity. Operators have significantly improved water efficiency per unit of computing power, adopting closed-loop liquid cooling and advanced energy management systems.

In many regions, water is required only intermittently, with consumption levels lower than those in sectors such as clothing manufacturing, agriculture and automotive services.

Beyond digital services, data centres deliver tangible economic benefits to local communities. Large-scale investments generate construction activity, long-term technical employment and stable tax revenues, while infrastructure upgrades and skills programmes support regional development.

As cloud computing and AI continue to shape everyday life, data centres are increasingly positioned as both economic and technological anchors.

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EU moves to tax low-value e-commerce parcels

The European Commission welcomed the decision by EU Member States to introduce a €3 customs duty on low-value e-commerce parcels arriving from third countries.

A measure, which enters into force in July 2026, that applies to items valued below €150 and aims to restore fair competition instead of allowing online imports to benefit from longstanding exemptions.

The move responds to the rapid growth of cross-border e-commerce shipments and will operate as a temporary solution until the EU Customs Data Hub becomes fully operational in 2028.

Until then, the Council and the Commission will coordinate legal changes and IT systems to ensure smooth implementation and effective customs supervision across the Union.

Once the Customs Data Hub is in place, a permanent customs duty regime will replace the temporary measure, offering authorities a comprehensive view of goods entering and leaving the EU.

The €3 duty applies only to parcels sent directly to consumers and remains separate from ongoing negotiations on a handling fee intended to offset the rising operational costs faced by customs authorities.

The reform builds on earlier Commission proposals to remove duty exemptions for low-value parcels and forms part of the most extensive overhaul of EU customs rules in decades.

European institutions argue that modernised customs controls are essential instead of relying on outdated frameworks, particularly as global e-commerce volumes continue to expand.

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AI reshapes cybercrime investigations in India

Maharashtra police are expanding the use of an AI-powered investigation platform developed with Microsoft to tackle the rapid growth of cybercrime.

MahaCrimeOS AI, already in use across Nagpur district, will now be deployed to more than 1,100 police stations statewide, significantly accelerating case handling and investigation workflows.

The system acts as an investigation copilot, automating complaint intake, evidence extraction and legal documentation across multiple languages.

Officers can analyse transaction trails, request data from banks and telecom providers and follow standardised investigation pathways, instead of relying on slow manual processes.

Built using Microsoft Foundry and Azure OpenAI Service, MahaCrimeOS AI integrates policing protocols, criminal law references and open-source intelligence.

Investigators report major efficiency gains, handling several cases monthly where only one was previously possible, while maintaining procedural accuracy and accountability.

The initiative highlights how responsible AI deployment can strengthen public institutions.

By reducing administrative burden and improving investigative capacity, the platform allows officers to focus on victim support and crime resolution, marking a broader shift toward AI-assisted governance in India.

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New law requires AI disclosure in advertising in the US

A new law in New York, US, will require advertisers to disclose when AI-generated people appear in commercial content. Governor Kathy Hochul said the measure brings transparency and protects consumers as synthetic avatars become more widespread.

A second law now requires consent from heirs or executors when using a deceased person’s likeness for commercial purposes. The rule updates the state’s publicity rights, which previously lacked clarity in the context of the generative AI era.

Industry groups welcomed the move, saying it addresses the risks posed by unregulated AI usage, particularly for actors in the film and television industries. The disclosure must be conspicuous when an avatar does not correspond to a real human.

Specific expressive works such as films, games and shows are exempt when the avatar matches its use in the work. The laws arrive as national debate intensifies and President-elect Donald Trump signals potential attempts to limit state-level AI regulation.

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AI-powered grid pilot aims to cut energy costs in Ottawa

Canada has announced new federal funding to pilot AI tools on the electricity grid, backing a project designed to improve reliability, affordability and efficiency as energy demand grows.

The government of Canada will provide $6 million to Hydro Ottawa under the Ottawa Distributed Energy Resource Accelerator programme. The initiative will utilise AI-enhanced predictive analytics to forecast peak demand and help balance electricity supply and demand in near real-time.

The project will turn customer-owned technologies such as smart thermostats, electric vehicle chargers and home batteries into responsive grid resources. By aggregating them, Hydro Ottawa aims to manage local constraints and reduce costly network upgrades, starting in areas like Kanata North that are experiencing rapid growth.

Officials say the programme will give households more control over energy use while strengthening grid resilience. The pilot is also intended to serve as a model that could be scaled across other neighbourhoods and electricity systems.

The funding comes through the Energy Innovation Program, which supports innovative grid demonstrations and AI-driven energy projects. Ottawa says such initiatives are key to modernising Canada’s electricity system and supporting the transition to a low-carbon economy.

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OpenAI outlines safeguards as AI cyber capabilities advance

Cyber capabilities in advanced AI models are improving rapidly, delivering clear benefits for cyberdefence while introducing new dual-use risks that require careful management, according to OpenAI’s latest assessment.

The company points to sharp gains in capture-the-flag performance, with success rates rising from 27 percent in August to 76 percent by November 2025. OpenAI says future models could reach high cyber capability, including assistance with sophisticated intrusion techniques.

To address this, OpenAI says it is prioritising defensive use cases, investing in tools that help security teams audit code, patch vulnerabilities, and respond more effectively to threats. The goal is to give defenders an advantage in an often under-resourced environment.

OpenAI argues that cybersecurity cannot be governed through a single safeguard, as defensive and offensive techniques overlap. Instead, it applies a defence-in-depth approach that combines access controls, monitoring, detection systems, and extensive red teaming to limit misuse.

Alongside these measures, the company plans new initiatives, including trusted access programmes for defenders, agent-based security tools in private testing, and the creation of a Frontier Risk Council. OpenAI says these efforts reflect a long-term commitment to cyber resilience.

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Disney backs OpenAI with $1bn investment and licensing pact

The Walt Disney Company has struck a landmark agreement with OpenAI, becoming the first major content licensing partner on Sora, the AI company’s short-form generative video platform.

Under the three-year deal, Sora will generate short videos using more than 200 animated and creature characters from Disney, Pixar, Marvel, and Star Wars. The licence also covers ChatGPT Images, excluding talent likenesses and voices.

Beyond licensing, Disney will become a major OpenAI customer, using its APIs to develop new products and experiences, including for Disney+, while deploying ChatGPT internally across its workforce. Disney will also make a $1 billion equity investment in OpenAI and receive warrants for additional shares.

Both companies frame the partnership as a test case for responsible AI in creative industries. Executives say the agreement is designed to expand storytelling possibilities while protecting creators’ rights, user safety, and intellectual property across platforms.

Subject to final approvals, Sora-generated Disney content is expected to begin rolling out in early 2026. Curated selections may appear on Disney+, marking a new phase in how established entertainment brands engage with generative AI tools.

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Tiiny AI unveils the Pocket Lab supercomputer

Tiiny AI has revealed the Pocket Lab, a palm-sized device recognised as the world’s smallest personal AI supercomputer. Guinness World Records confirmed the title, noting its ability to run models with up to 120 billion parameters.

The Pocket Lab uses an ARM v9.2 CPU, a discrete NPU delivering 190 TOPS and 80GB of LPDDR5X memory. Popular open-source models such as GPT-OSS, Llama, Qwen, Mistral, DeepSeek and Phi are supported. Tiiny AI says its hardware makes large-scale reasoning possible in a handheld format.

Two in-house technologies enhance efficiency by distributing workloads and reducing unnecessary activations. TurboSparse manages sparse neuron activity to preserve capability while improving speed, and PowerInfer splits computation across the CPU and NPU.

Tiiny AI plans a full showcase at CES 2026, with pricing and release information still pending. Analysts want to see how the device performs in real-world tasks compared with much larger systems. The company believes the Pocket Lab will shift expectations for personal AI hardware.

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Mercedes-Benz proposes new supervisory board members

Mercedes-Benz will propose Katharina Beumelburg and Rashmi Misra for election to its supervisory board at the annual general meeting on 16 April 2026. The appointments aim to strengthen the board’s focus on sustainability and AI, areas deemed vital for the company’s future.

Beumelburg serves as Chief Sustainability and New Technologies Officer at Heidelberg Materials, overseeing global decarbonisation initiatives. She has over 20 years’ experience in sustainability and industrial transformation, previously holding senior roles at SLB, Siemens, and Siemens Energy.

Misra brings extensive expertise in AI and data platforms. She was Chief AI Officer at Analog Devices, leading the global AI strategy and developing AI-powered sensing technologies, and previously spent more than six years at Microsoft as Vice President of AI, Data and Emerging Technologies.

Dame Polly Courtice and Prof Dr Helene Svahn will step down at the close of the AGM. Chairman Martin Brudermüller said the two new nominees are internationally recognised leaders whose expertise will support Mercedes-Benz’s strategic focus on key future technologies.

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