Key Internet developments

Scientists make progress in bridging quantum computers with optical networks

Researchers at Caltech have developed a groundbreaking silicon device that could help quantum computers communicate over long distances.

The innovation, created by a team led by Professor Mohammad Mirhosseini, successfully converts microwave photons into optical photons, overcoming a major challenge in quantum networking. Their findings were recently published in Nature Nanotechnology.

Quantum computers rely on microwave photons to store and process information, but these particles require near-zero temperatures and lose data when travelling through standard internet cables.

Optical photons, however, can move efficiently over long distances at room temperature. The new device acts as a bridge between the two, using a vibrating silicon beam to convert microwave signals into optical ones with remarkable efficiency.

Built from silicon to minimise noise, the transducer outperforms older systems by 100 times while maintaining the same level of signal clarity.

The breakthrough brings the concept of a quantum internet closer to reality, offering a scalable way to link quantum computers across vast networks in the future.

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Ofcom backs broadband competition to expand full-fibre coverage

Britain should maintain competition in the broadband market to boost full-fibre coverage to 96% of premises by 2027 while capping prices on slower-speed services, UK telecoms regulator Ofcom announced on Thursday.

The cap would limit what BT’s Openreach can charge for connections up to 80Mbit/s, an increase from the current 40Mbit/s limit.

Ofcom’s previous measures, including encouraging new providers to use Openreach’s infrastructure, have helped increase full-fibre coverage from under 25% to nearly 70% of homes.

It now proposes keeping high-speed broadband prices free from regulation until 2031 while ensuring affordability for those relying on older copper-fibre connections.

In rural areas where commercial networks are less viable, Ofcom plans to support Openreach in expanding full-fibre access. The regulator’s consultation on these proposals will run until June 12, with final decisions expected in March 2026. BT shares rose 0.5% following the announcement.

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OpenAI launches responses API for AI agent development

OpenAI has unveiled new tools to help developers and businesses build AI agents, which are automated systems that can independently perform tasks. These tools are part of OpenAI’s new Responses API, allowing enterprises to create custom AI agents that can search the web, navigate websites, and scan company files, similar to OpenAI’s existing Operator product. The company plans to phase out its older Assistants API by 2026, replacing it with the new capabilities.

The Responses API provides developers with access to powerful AI models, such as GPT-4o search and GPT-4o mini search, which are designed for high factual accuracy. OpenAI claims these models can offer more reliable answers than previous versions, with GPT-4o search achieving a 90% accuracy rate. Additionally, the platform includes a file search feature to help companies quickly retrieve information from their databases. The CUA model, which automates tasks like data entry, is also available, allowing developers to automate workflows with more precision.

Despite its promise, OpenAI acknowledges that there are still challenges to address, such as AI hallucinations and occasional errors in task automation. However, the company continues to improve its models, and the introduction of the Agents SDK gives developers the tools they need to build, debug, and optimise AI agents. OpenAI’s goal is to move beyond demos and create impactful tools that will shape the future of AI in enterprise applications.

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Reliance Jio and SpaceX partner for Starlink in India

Mukesh Ambani’s Reliance Jio has struck a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to India, marking a surprising turn after months of rivalry over spectrum allocation.

Under the agreement, Jio will stock Starlink equipment in its retail stores, giving the US company direct access to thousands of outlets across the country.

Move like this one comes after New Delhi sided with Musk’s preferred method of spectrum allocation, despite Ambani’s earlier concerns that Starlink could dominate India’s telecom sector.

The deal follows a similar partnership between Starlink and Bharti Airtel, India’s second-largest telecom provider, both of which depend on government approval for operations to begin. While Airtel’s shares dipped slightly after the Jio announcement, Reliance Industries saw a marginal rise in trading.

Starlink, which has been awaiting licenses since 2022 due to national security concerns, is using the agreement as a low-cost entry into India’s fast-growing satellite internet market, expected to reach $1.9 billion by 2030.

For Musk, the stakes in India go beyond Starlink, as he recently secured a deal to open Tesla’s first showroom in the country.

However, high tariffs on imported electric vehicles remain a challenge. Meanwhile, Jio and SpaceX are also exploring other areas of cooperation, while Jio continues its own satellite broadband plans with Luxembourg-based SES.

Despite past disputes, the partnership signals a shift from competition to collaboration in India’s evolving telecom landscape.

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Italy debates Starlink for secure communications

Italy’s ruling League party is urging the government to choose Elon Musk’s Starlink over French-led Eutelsat for secure satellite communications, arguing that Starlink’s technology is more advanced.

Prime Minister Giorgia Meloni’s government is looking for an encrypted communication system for officials operating in high-risk areas, with both Starlink and Eutelsat in talks for the contract.

League leader Matteo Salvini, a strong supporter of former US President Donald Trump, has emphasised the need to prioritise US technology over a French alternative.

Meanwhile, Eutelsat’s CEO confirmed discussions with Italy as the country seeks an interim solution before the EU’s delayed IRIS² satellite system becomes operational.

Meloni’s office has stated that no formal negotiations have taken place and that any decision will be made transparently.

However, opposition parties have raised concerns over Starlink’s involvement, given recent speculation that Musk could cut off Ukraine from its service, potentially affecting national security interests.

Musk responded positively to the League’s endorsement, calling it ‘much appreciated’ on his social media platform X.

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Eutelsat shares surge on prospects of replacing Starlink

Eutelsat shares surged by over 60% on Tuesday, continuing a remarkable rise that saw them increase by 68% the day before. This spike came after geopolitical tensions raised the possibility of OneWeb satellites, owned by the French satellite operator, replacing Elon Musk’s Starlink service in Ukraine. Since Friday, Eutelsat’s stock has nearly tripled in value following a public dispute between Ukrainian President Volodymyr Zelensky and former US President Donald Trump, which has cast doubt on the future of Starlink in the country.

Analysts suggest that the surge in Eutelsat’s stock is driven by the potential for OneWeb to secure the Ukrainian military’s satellite contract, with OneWeb being seen as a viable alternative to Starlink. The situation gained further momentum after a White House official revealed that Trump would pause military aid to Ukraine, potentially allowing Europe to increase its support. On Tuesday, the European Commission unveiled an ambitious 800 billion euro defense plan, further strengthening Europe’s role in the region.

Eutelsat has recently committed to increasing its satellite capacity for Ukraine, highlighting its growing importance for European defence. The French satellite operator has faced challenges, including concerns over rising debt and strong competition from US companies like SpaceX’s Starlink. Despite these hurdles, recent developments have rekindled investor confidence, with shares rising sharply after hitting all-time lows in February due to ongoing financial difficulties.

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Microsoft retires Skype, focuses on Teams

Skype, the pioneering internet calling service that revolutionised communication in the early 2000s, will make its final call on May 5, as Microsoft retires the platform after two decades.

This move is part of Microsoft’s strategy to concentrate on its Teams service, which has become central to its business communication offerings, particularly since the pandemic.

Despite its early success and a peak of hundreds of millions of users, Skype struggled to compete with newer services like Zoom and Slack.

The platform’s decline was partly due to its inability to adapt to the mobile era, while Microsoft’s Teams has successfully integrated with Office applications, securing its position in the corporate sector.

Microsoft has assured Skype users that they will be able to transition smoothly to Teams, with their contacts and chats migrating automatically. While Skype had once been a major player, its decline mirrors other Microsoft missteps, such as its failed ventures with Internet Explorer and Windows Phone.

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Musk faces growing competition in satellite internet

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper. SpaceSail is expanding rapidly, having entered Brazil in November and begun operations in Kazakhstan by January. Meanwhile, Brazil is also in talks with Project Kuiper and Canada’s Telesat to diversify its options for providing high-speed internet to remote areas.

SpaceSail plans to launch 648 low Earth orbit (LEO) satellites this year, with the ambition of deploying up to 15,000 by 2030. This move aims to compete directly with Starlink, which currently operates around 7,000 satellites but plans to increase its constellation to 42,000 by the end of the decade. China’s push into satellite internet is part of its broader strategy to dominate space and digital technologies, which has raised concerns among Western governments, particularly regarding Beijing’s potential to extend its censorship and surveillance reach globally.

China’s rapid expansion in satellite technology, supported by state funding and military research, has intensified. It has launched 263 LEO satellites in the past year alone, and researchers are focusing on low-latency systems to compete with Starlink’s capabilities. The Chinese government is also exploring ways to track and monitor satellite constellations, potentially targeting Starlink as a strategic competitor.

As competition in the satellite internet sector intensifies, particularly between the US, China, and other players like Brazil, the geopolitical and military implications of these space technologies are becoming clearer. With nations striving to secure positions in space, experts warn of an increasingly complex and competitive environment.

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Taiwan’s satellite captures high-resolution earth images

Japanese startup ArkEdge Space revealed on Friday that it helped build an observation satellite for Taiwan’s space agency that has captured what may be the highest-quality Earth imagery from a spacecraft smaller than a suitcase. The optical satellite, ONGLAISAT, took 2.5-metre resolution images after being launched into orbit around 400 km above Earth in December.

Takayoshi Fukuyo, ArkEdge’s CEO, described the clarity of the images as comparable to aerial photography, despite the satellite’s small size. Black-and-white photos, including those of Seattle suburbs and Argentina’s Patagonia, were released showing impressive detail. The satellite, co-developed with the University of Tokyo, mounts Taiwan’s space agency’s optical equipment onto a compact cubesat.

ONGLAISAT’s mission will conclude in early March, but the optical technology demonstrated during the mission will contribute to future satellite projects. Taiwan, keen to strengthen its space infrastructure amid rising tensions with China, is also progressing with other space ventures, including weather satellites and satellite internet collaborations with Amazon’s Kuiper. Additionally, Taiwan’s space agency has deepened partnerships with Japanese space companies like Space One and ispace.

Alibaba launches AI model to rival DeepSeek

Alibaba launched a new version of its Qwen 2.5 AI model on Wednesday, claiming it outperforms competitors like DeepSeek-V3, GPT-4, and Llama-3.1-405B. The release, timed on the first day of the Lunar New Year when most Chinese workers are on holiday, highlights the growing pressure from DeepSeek’s rapid rise in the AI sector. The Chinese tech giant’s announcement emphasised that Qwen 2.5-Max delivers better performance across various AI benchmarks compared to some of the top models from OpenAI and Meta.

DeepSeek’s recent success, particularly after its January releases of the DeepSeek-V3 and R1 models, has shaken the AI market, including both international competitors and Chinese firms. The company’s low development and usage costs have raised concerns about the sustainability of large AI investments from US tech giants. The competition within China has intensified, with Alibaba’s Qwen 2.5-Max release and ByteDance’s update to its AI model shortly after DeepSeek’s R1 release, signalling a rapid response to the new market dynamics.

DeepSeek’s previous model, V2, had already disrupted the market last year, triggering a price war with Chinese firms slashing prices on AI models. Alibaba and other major tech companies, including Baidu and Tencent, had to follow suit, offering significantly cheaper options. Despite this, DeepSeek’s founder, Liang Wenfeng, has expressed that his company is focused on achieving Artificial General Intelligence (AGI) rather than competing on price, contrasting DeepSeek’s agile, research-driven approach with the more structured and costly operations of larger tech firms.

As the battle for AI supremacy intensifies, the emergence of DeepSeek, with its lean team of researchers, continues to challenge China’s tech giants, who may find themselves under pressure to innovate faster and more efficiently to keep up with the rapidly evolving AI landscape.