New Delhi, Apr 22 () Facebook's move to pick up about 10 per cent stake in Jio Platforms will accelerate Jio's digital monetisation drive and put Reliance Industries (RIL) on course to turn net debt-free by March 2021, analysts said on Wednesday.<p> "RIL had restructured its digital business into one consolidated wholly-owned subsidiary - Jio Platforms - which would host all the digital initiatives of the firm, including Jio digital services (mobile, broadband), apps, tech capabilities (AI, Big Data, IoT) and investments (like Den, Hathway)," Credit Suisse said in a note.</p><p> It said that Facebook's investment into this entity will further Reliance Industries' digital initiatives and will help in deleveraging.</p><p> "...The deal will aid in achieving net debt-free (target) by March 2021. As of December 31, 2019, net debt for the group stands at Rs 1,531 billion (Rs 1.53 lakh crore) and with Facebook's investment, this should put RIL on course to be net debt free by Mar-2021," it said.</p><p> The announcement includes commencement of a partnership among JioMart (platform of RIL's new commerce initiative), Reliance Retail and WhatsApp, it noted. </p><p> "Currently, new commerce is under purview of Reliance Retail and outside of Jio Platforms. The partnership will entail leveraging the messenger platform to facilitate new commerce transactions between a consumer and a kirana store," Credit Suisse said.</p><p> In similar vein, Bernstein said the partnership is strategic for both companies.</p><p> "The investment in Jio is one of the biggest investments Facebook can make. The transaction fits with their recent push to build themselves and experiment more and provides a closed network of 388 million users to test on, proof point around the already announced partnership to build and test a WeChat like app," it said.</p><p> "Facebook has already launched WhatsApp as customer service/social commerce tool in India allowing brands and retails to talk directly to customers/prospects, this can strengthen that offering both for 60 million small merchants on JioMart but also for Reliance Jio itself," Bernstein added. </p><p> Facebook on Wednesday announced an investment of USD 5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in the firm that houses billionaire Mukesh Ambani's telecom arm Jio as the social media giant looks to expand presence in its largest market in terms of subscriber base.</p><p> "Today we are announcing a USD 5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Ltd, part of Reliance Industries Ltd, making Facebook its largest minority shareholder," the company said in a statement.</p><p> Reliance in a separate statement said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value (USD 65.95 billion, assuming a conversion rate of Rs 70 to a US dollar).</p><p> "Facebook's investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis," it said.</p><p> Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), houses digital services of the group. Reliance Jio Infocomm Ltd, with 388 million subscribers, is a wholly-owned subsidiary of Jio Platforms.</p> The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet.  MBI  ANSANS

Facebook investment to accelerate Jio's digital monetisation drive: Analysts

<ul><li>Airtel and Amazon Web Services (AWS) has signed a multi-year strategic collaboration agreement to offer cloud solutions to Airtel’s clients. <br /></li><li>The new Airtel-AWS deal will face off against the existing Jio-Microsoft partnership in the Indian market. <br /></li><li>While Airtel and Jio battle for telecom supremacy, AWS and Microsoft are looking for ways to keep on top of the cloud market with data storage demands set to surge once 5G comes into play.<br /></li></ul>Airtel is teaming up with Amazon Web Services (AWS) in a strategic collaboration agreement to bring in more cloud services for the enterprise side of its solutions in India. The tie-up will also take on the existing Jio-Microsoft partnership which has the Microsoft Azure cloud platform at the centre of it. <br /><br />With Vodafone tracking third, Airtel and Reliance Jio caught in a battle for telecom supremacy. Subscribers and the average return per user (ARPU) gauge the wide availability of a network, enterprise businesses are where the margins are better. And, the cloud market is expected to be worth nearly $8 billion in another three years, according to <a href="https://www.consultancy.in/news/2695/indias-public-cloud-market-could-reach-8-billion-by-2023">Gartner</a>. <br /><br />The surge could happen even sooner with the demand for cloud seeing acceleration amid the coronavirus pandemic as more businesses look for a way to help their employees work from home. It’s not just the telecom companies who are caught in a face-off but also the cloud providers. AWS, Microsoft and Google are the top three cloud providers in India, with AWS leading the pack. <br /><br />Where Airtel is using AWS to have public, private and hybrid cloud options — AWS benefits as Airtel ensures that it doesn’t fall behind in a market where Microsoft has a partnership with the telecom that has the most subscribers and is expected to grow even further. <br /><br />Airtel already has its own Airtel Cloud platform but it will now be integrating AWS to develop new products within its portfolio. It already has around 2,500 large enterprises and more than a million small and medium enterprises (SMEs) clients in its kitty. <br /><br /><strong>Setting the stage for 5G<br /></strong>Cloud partnership will also have a bigger role to play once the 5G network is announced in India. Connecting the Internet of Things (IoT) devices, milliseconds making a difference in productivity and the sheer amount of data will need a reliable and customisable space in the cloud. <br /><br />Jio has already said that it is 5G ready even as we await an announcement on 5G auction from the government. Airtel has made no such statement yet but it did showcase its 5G solutions at the India Mobile Congress (IMC) earlier this year, an indicator that the company has plans to make its own bid for 5G airwaves. <br /><br />Last month, Bharti Airtel also picked up a $235 million investment from the US-based Carlyle Group in its data centre business, Nxtra, for a 25% stake. Nxtra has 10 large data centres across the country and 120 edge data centres. <br /><br /><strong>SEE ALSO:<br /><a href="https://www.businessinsider.in/business/telecom/news/airtel-logs-2-billion-loss-as-it-sets-aside-money-for-regulatory-dues/articleshow/77253294.cms">Airtel logs $2 billion loss as it sets aside money for regulatory dues</a><br /><br /></strong><a href="https://www.businessinsider.in/business/news/airtel-vil-lose-subscribers-jio-adds-1-57-mn-customers-in-april/articleshow/77156106.cms"><strong>Airtel, VIL lose subscribers; Jio adds 1.57 mn customers in April</strong></a><br /><br />

Airtel-Amazon team up to take on Jio-Microsoft in the battle for India’s cloud market

New Delhi, Nov 29 () The Supreme Court ruling on adjusted gross revenue will not just lead to the collapse of the telecom sector but will also have a cascading effect on several other sectors including power, steel and railways, according to industry chamber FICCI. 
<p>The Federation of Indian Chambers of Commerce and Industry (FICCI) in a letter to Finance Minister Nirmala Sitharaman seeking her urgent intervention to resolve woes in the telecom sector said the debt-ridden industry has no appetite left to invest in networks and future technologies while businesses across the world are exploring new opportunities around emerging technologies like 5G, artificial intelligence and internet of things. 
</p><p>"Given the multiplier impact the (telecom) sector has on the economy and various intermediary industries, it is of critical importance that the sector remains healthy, dynamic and vibrant," FICCI said.
</p><p>The Supreme Court On October 24, 2019 upheld the government's way of calculating telecom revenue, on which licence fee and spectrum usage charges are computed.
</p><p>As per the initial calculations, access players like Airtel, Vodafone Idea and other operational telecom operators may have to pay the government a whopping Rs 1.33 lakh crore within three months.
</p><p>Telecom Minister Ravi Shankar Prasad in Parliament last week said that there is no proposal before the government at present on waiver of penalties and interest on outstanding licence fee payments based on adjusted gross revenue (AGR), or on extending the timelines for telcos to pay up their statutory dues.
</p><p>"This ruling will have a cascading effect and will severely impact many other companies in multiple sectors such as internet service providers, satellite communications providers, cable operators and even companies in power, steel and railways sector," FICCI said. 
</p><p>According to internal estimate of the Department of Telecom, telecom companies which are operational at present will have to cough up around Rs 1.33 lakh crore by January 2020 as per the apex court order.
</p><p>This is beyond the total debt on the telecom sector estimated to be around Rs 7.87 lakh crore as on August 2017.
</p><p>"...As you are aware, currently the sector is saddled with a massive debt and has almost no appetite to invest in networks and future technologies. Adding further woes to the sector, the recent ruling on the AGR, dues of the telecom service providers will lead to an unfortunate and disastrous collapse of the already battered sector," the letter said.
</p><p>Both Bharti Airtel and Vodafone Idea have expressed uncertainty on continuing their operations following the apex court judgement and in the absence of relief from the government. 
</p><p>Vodafone Idea posted an unprecedented loss of 50,922 crore-- highest ever by any corporate in Indian Inc and Bharti Airtel posted it highest loss of Rs 23,045 crore in the second quarter of current fiscal. 
</p><p>Reliance Communications posted Indian Inc second biggest loss of Rs 30,142 crore following the apex court judgement. 
</p><p>"At a time when the world is witnessing the advent of new possibilities and business opportunities from emerging technologies such as 5G, AI, IoT, etc which will redefine the way businesses and economies will work in the coming decades, it is important that India retains its leadership position in the telecom space," the letter said. 
</p><p>The industry body called for change in policy saying that timely intervention and support will not only save the sector from the brink of collapse but ensure a healthy growth adding to the economic momentum of the country.  
</p><p> The government recently doled out a Rs 42,000 crore relief to debt-laden telecom companies after it agreed not to take any payments for spectrum they use for the next two years.
</p><p>The Union Cabinet approved giving Bharti Airtel, Vodafone Idea Ltd and Reliance Jio an option to avail of a two-year moratorium on payments they were supposed to make in yearly installments for the spectrum bought in auctions.
</p>While the move will give Rs 42,000 crore relief to Bharti Airtel, Vodafone Idea and Reliance Jio, the government is unlikely to intervene in the Supreme Court-mandated statutory payments, top sources said.  PRS  MKJ

Supreme Court's AGR ruling will lead to telecom sector's collapse: FICCI to FM

<img class="gwt-Image" src="/photo/55542954.cms" />Futurists predict that we will soon live in a world where things will never get lost. Thanks to real-time information relying on GPS, Bluetooth, RFID, and the internet, it is becoming easier to keep track of things – or find them if they ever get lost – and this increased visibility has been a boon for organizations.<br />
<br /> In our day-to-day life, we are already reaping the fruits of such real-time visibility. Take <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> for example: A pioneer that popularized the idea that a sharing economy is extremely efficient in producing and analyzing real-time traffic data, and based on which, is able to quickly adjust to booking demands by placing more or fewer cars in an area. Similarly, the Google-owned navigation service Waze relies heavily on real-time, user-generated traffic data, such as accidents or traffic jams on the road, so they can give users the fastest possible route to their destinations.<br />
<br />
The concept of real-time processing is relatively new in the computer world; its predecessor was batch processing, by which businesses needed to wait until the end of each month to collect and count their receipts. Real-time processing has dramatically changed the way enterprises operate and significantly reduced the time it takes for decision-makers to get access to operational data, analyze them, and make more astute decisions in real-time. In other words, the processing and analysis can happen simultaneously, turning organizations into methodical machines that are agile to respond swiftly to market and operational needs. The real-time visibility allows enterprises to know where their inventory, people and equipment are at any time, allowing them to deliver faster to customers and ensure that the right amount of inventory is maintained where it is needed most.<br />
<br />
<strong>Drivers for businesses to adopt real-time data collection</strong><br /> Just a few years ago, Big Data didn’t even exist. Most data generated in the past had been, by current standards, smattering. Today, data is measured in terabytes (trillions) and petabytes (quadrillions); several years down the road, even those numbers would seem small especially as more organizations look to adopt the <keyword id="970768" type="UNKNOWN" weightage="20" keywordseo="internet-of-things">Internet of Things</keyword> (IoT). For example, in Zebra’s recently released <a href="http://online.zebra.com/future-warehouses-research-papers/?tactic_type=PRP&amp;tactic_detail=None_AV_APAC_None_Warehouse2020">Warehouse 2020 Vision Study</a>, 72% of respondents polled said they plan to adopt IoT technologies by 2020 and 60% also said they will be investing more in analytics.<br />
The staggering amount of data available will provide visibility to organizations, which can bring about more accurate analysis and predictions that were once impossible.<br />
<br /> With this growth, it is fitting that a new industry category has emerged known as Enterprise Asset Intelligence. It harnesses the three megatrends that are currently driving the enterprise IT space: the Internet of Things (IoT), enterprise mobility, and <keyword id="6373689" type="ORGANIZATION" weightage="20" keywordseo="Cloud-computing">cloud computing</keyword>. Using a combination of connected mobile devices, scanners, sensors, and wireless connectivity, organizations are able to embrace real-time data in their operations.<br />
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<strong>The trends propelling Enterprise Asset Intelligence</strong><br />
Tags – barcodes or RFID – can be affixed to anything, from wine bottles to NFL players’ shoulder pads to the pockets of villains – as seen in the latest installment of the Jason Bourne movie. These tags give a digital voice to objects that are otherwise unable to connect in real time to the network.<br />
<br />
Mobile devices, including smartphones and handheld computers used in an enterprise environment, can read information encoded on these tags, and send them wirelessly to a database or electronic management system over the network. This wireless web of devices is essentially IoT in one of its most basic forms.<br />
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The use of mobile scanners and devices reduces the reliance on the traditional pen-and-paper process which is prone to errors due to poor handwriting or inaccurate data entry. The data is also available instantaneously and can be analyzed in real time, increasing productivity and agility to respond to any operational changes quickly.<br />
<br /> Cloud computing is another indispensable component for yielding massive amount of information and increasing operational visibility. It is not only about building data centers and computing resources on demand, but also about aggregating data captured by the sensors, managing real-time analytics, and converting them into immediately actionable <keyword id="6355515" type="ORGANIZATION" weightage="20" keywordseo="Business">business</keyword> insights. At the same time, enterprises do not need to deploy costly and complicated servers and wireless controllers at all its locations, but can instead connect multiple remote locations to a single corporate network by connecting each location over a wireless cloud controller.<br />
<br />
Here are some simple real-life examples how such immense visibility can be achieved by adopting Enterprise Asset Intelligence.<br />
<br />
In a warehouse, staff use RFID and barcode tags to track a product’s exact location. Imagine a mammoth warehouse which thousands of products call home, knowing where exactly something is located becomes the very foundation of an efficient warehouse.<br />
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In the retail industry, more than 70% of shoppers are known to use their smartphones to do research inside a brick-and-mortar retail store before making a purchase. However, research also shows that at least 66% of them report not finding the information they need. This could directly impact sales in a negative way. Today, with in-store networks and data analytic systems, retailers are able to tap into a smartphone’s Wi-Fi or Bluetooth technology, and engage in highly customized and personalized interactions with their customers, improving their shopping experience and forging loyal customers.<br />
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Enterprise Asset Intelligence is making transformations in the healthcare sector. With barcoded wristbands embedding patient and drug information, caregivers are enabled to identify the patients accurately and administer the drugs safely. In addition, locationing technology is able to inform medical teams immediately when a patient slips, falls or needs urgent care, find a clinician in the moment of need, and shorten the time needed to search for an essential piece of medical equipment.<br />
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Having optimal visibility into an organization’s operations is what business leaders have been yearning to have for years. With the increasing amount of data generated and collected, enterprises are now able to gain greater visibility that was unheard of before. By utilizing technologies that enable real-time data analytics and insights, organizations are able to achieve tangible increments in productivity and efficiency, subsequently making a real difference in their day-to-day operations and their bottom lines.<br />
<br />
To find out more about how Enterprise Asset Intelligence can offer visibility that’s visionary, visit Zebra’s <a href="https://www.zebra.com/ap/en.html?tactic_type=PRB&amp;tactic_detail=None_AV_APAC_None_VtV_bylinehttps://www.zebra.com/ap/en.html">website</a>.<br />
<br />
(The article is authored by Ryan Goh, Vice President and General Manager, Asia Pacific, Zebra Technologies)

Real-time data tracking gains currency in transforming
business operations

<img class="gwt-Image" src="/photo/59901736.cms" /><br />
<br /> <keyword id="1494390" type="COMPANY" weightage="20" keywordseo="VoLTE">VoLTE</keyword> or Voice over LTE services have been launched by 100 operators all over the world, in India Reliance <keyword id="2003276" type="UNKNOWN" weightage="20" keywordseo="Jio">Jio</keyword> is the first and only telecom operator to launch VoLTE services. Other telecom operators like <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>, Vodafone too are at various stages of launching their VoLTE services. Simply put, VoLTE means your voice call too is treated like data and a VoLTE enabled phone can handle calling and other data-based activities simultaneously. VoLTE is seen as a promising technology as it helps in optimal use of data along with HD call quality. Ericsson estimates the VoLTE subscriber base in India will reach 370 Million by 2022. Even though the VoLTE device ecosystem has grown rapidly in the last 2-3years, there is still a dearth in availability of entry level VoLTE phones in India. Newest telecom operator in the country, Reliance Jio has also launched its own VoLTE enabled <a href="http://www.businessinsider.in/Jio-phone-to-be-a-single-sim-feature-phone-and-existing-customers-can-shift-to-it/articleshow/59776367.cms">Jio phone</a> priced under an “effectively free” scheme targeting the ‘2G’ or feature phone market of India. It means the technology will now be experienced by not just high end or mid range smartphone users but entry level mobile phone customers too will be using the technology. So I sat down with Rahul Karnik, Engagement Director, Global Performance Partnerships at Ericsson to get a complete lowdown on VoLTE technology around the world and started by asking how mature is the VoLTE technology for deployment in India?<br />
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The overall ecosystem for VoLTE has matured over the past five years. This includes the handsets, radio networks, packet core and IMS networks used by operators. Most VoLTE deployments involve equipment components from multiple vendors. Standardization of interfaces, between these components used for VoLTE, has helped in reducing deployment times as well as increasing the reliability of these networks. Learnings from early deployments are allowing vendors to help operators with their VoLTE deployments. In general, VoLTE continues to mature and this can be seen from the improvement in the key performance indicators that are tracked by operators.<br />
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Also Read: <a href="http://www.businessinsider.in/TRAI-sources-Free-Basics-was-a-problem-Zero-Rating-was-a-problem-Jio-Phone-is-not-a-problem/articleshow/59847112.cms">Is Jio phone flouting the principles of Net Neutrality?</a><br />
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What are the benefits of VoLTE to customers?<br />
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The main benefits of VoLTE to customers are: High-definition voice, Faster call setup times, Improved battery consumption compared to OTT voice, Interoperability with voice over Wi-Fi, and the potential to add video as well as messaging, location sharing, whiteboarding, etc. VoLTE calls are more efficient than regular voice over IP calls and help customers by consuming lesser data for voice calls. Finally, VoLTE offers the same “green button” promise that customers have relied upon for a long time. VoLTE is a telecom grade service and provides higher Accessibility, Retainability, and Integrity as compared to over the top voice services.<br />
<br />
At the global level, wherever VoLTE has been launched, how has been the uptake?<br />
<br />
Overall, the VoLTE uptake has been strong, Network measurements show uneven uptake across regions. In the US, Japan, South Korea and Canada, VoLTE uptake was very strong in 2016, with most networks having more than 60 percent of voice calls on LTE smartphones provisioned using VoLTE. In some networks this figure was close to 80 percent. In Europe, the service is used by relatively fewer people, as many launched networks still require subscribers to configure VoLTE themselves in the device settings, or to buy a special VoLTE subscription. Past launches of the service demonstrate that for VoLTE usage to take off, automatic operator provisioning is necessary. In these circumstances, the VoLTE penetration then quickly rises to the percentage of LTE smartphones that are VoLTE-enabled.<br />
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How are operators in other markets charging for VoLTE calls ?<br />
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Pricing for telecom services is regulated by the appropriate regulatory bodies for each country. Initial deployments for VoLTE were not allowed to charge separately for VoLTE calls as they were considered to be part of the all-inclusive data plans offered by operators. Since then things have changed and most operators who have launched VoLTE either provide it under “unlimited talk” plan or continue to use a “minutes” based tariff for subscribers who are not part of the plan.<br />
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What are the capabilities of a VoLTE call ?<br />
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As part of the GSMA IR.92 document, a list of supplementary services which are expected to be supported by VoLTE calls have been defined. These include Ad-Hoc Multi Party Conference, Communication Forwarding (Unconditional, Busy, Not Reachable, Etc.), Barring, Etc.<br />
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What are the pre -requisites/factors to be considered ahead of launching VoLTE?<br />
<br />
If operators have already launched LTE, the primary factors to be considered are Deployment of the IP Multimedia Subsystem (IMS), Integration of IMS with the other network components, Enabling VoLTE related features in the Radio Access Network (RAN) and other network domains, Implementing Quality of Service (QoS), and performing Device and Application verification. After the network components have been deployed and integrated, operators need to tune and optimize the VoLTE service to ensure a high-quality experience to their customers.<br />
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What kind of investment would be needed?<br />
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In addition to the Network Readiness activities listed in the previous questions, operators who desire to launch VoLTE services need to consider Operational Readiness and Organizational Readiness. Operational Readiness (People/processes/tools/data to support all operational aspects of VoLTE are in place e.g. Ordering, Fulfilment/Provisioning, Billing, Support, Cancellations, Etc.), and Organizational Readiness (Goes beyond the Network and IT organizations and must identify impact on Marketing/Sales/Customer, Legal, Vendor Partnerships, Etc.) are other considerations that would need investments from the operator.<br />
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What is the significance of VoLTE from a 5G perspective? Is it critical for 5G deployment?<br />
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Operators have a large amount of spectrum currently allocated for 2G and 3G technologies. As operators move towards 5G and IoT deployments, they will need more spectrum which can be achieved by freeing up what they already have or acquiring more spectrum. One of the reasons that operators still have the 2G/3G networks is that voice is primarily carried over those technologies. VoLTE, due to its spectral efficiency, can help operators in freeing up spectrum currently being used for 2G/3G voice calls. Going to VoLTE can speed up the process of switching off the older technologies, which also helps from an opex/capex perspective.<br />
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As far as the spectrum is concerned what will be the requirements VoLTE has? Will VoLTE need more spectrum?<br />
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VoLTE has a better spectral efficiency than its predecessors for audio calls. VoLTE can carry, for the same spectrum, between 3 to 6 time more audio calls as compared to 3G or 2G technologies. This is one of the benefits that VoLTE offers to operators. Operators can leverage VoLTE to efficiently use their available spectrum. Over time, we will see the 2G/3G spectrum being re-farmed to LTE.<br />
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What is the roadmap beyond VoLTE ?<br />
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In order for operators to start offering VoLTE services, they need to deploy IMS (IP Multimedia Subsystem). IMS will then allow for additional services to be offered for both, consumers, and businesses. These services include Video Calling, Voice over Wi-Fi, RCS (Rich Communication Services) which includes Messaging, File/Location Sharing, Presence, Group Conversations, Etc. for consumers. For businesses, the offerings could include Corporate Video Services, Fixed Network Integration, Integrating IP communications within existing business processes, Etc.<br />
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Ten key questions about VoLTE - technology of the future - answered

<p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/51b14b52eab8eadc62000005-2901-1806/ap13031201329.jpg" alt="James Clapper intelligence NSA" data-mce-source="AP"><p class="source"><span>AP</span></p><p class="caption">Director of National Intelligence James Clapper.</p></img></div><p></p></div></div>Director of National Intelligence James Clapper gave a chilling threat assessment today to the Senate Armed Services Committee.&#xa0;<p>Clapper's testimony to the committee reflected the <a href="http://www.dni.gov/files/documents/SASC_Unclassified_2016_ATA_SFR_FINAL.pdf">US Intelligence Community's Worldwide Threat Assessment</a> for the coming year.</p><p>Based on the insights of the various branches of the US Intelligence Community (IC), Clapper provided a rundown of the major global and regional threats.&#xa0;</p><p>Based on his released statements, we have summarized the main global threats facing the world below:&#xa0;</p><h2>Cyber Security</h2><ul><li>The rise of smart devices and the Internet of Things (IoT) will lead to further opportunities for hackers to gain access to personal information. On the flip side, the IC will be able to use the IoT for "identification, surveillance, monitoring, location tracking, and targeting for recruitment."</li><li>An increasing reliance on "Narrow AI" systems, that perform specialized tasks, can both increase efficiency but leave systems open to disruption.&#xa0;Overreliance on these systems, or a lack of securing them properly, could lead to "disruptive or deceptive tactics." As an example, stock market fluctuations have happened due to automated trading systems taking in false data, Clapper notes.</li><li>Hackers and foreign military cyber actors will seek to exploit the integrity of networked and online information. This runs the gamut from modifying and transmitting false data to public utilities and market firms, to implanting false information on online media.&#xa0;</li><li>Foreign nations are increasingly buying and exploiting aggregated online personal data tp "inform a variety of counterintelligence operations."&#xa0;</li><li>There is still little impetus for countries to restrain themselves in cyber operations. "Many actors remain undeterred from conducting reconnaissance, espionage, and even attacks in cyberspace because of the relatively low costs of entry, the perceived payoff, and the lack of significant consequences."&#xa0;</li><li><strong>Principal&#xa0;threats:&#xa0;</strong>Russia, China, Iran, North Korea, and nonstate actors.&#xa0;</li></ul><h2>Terrorism</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/569948e5c08a8037018ba055-2200-1628/rtx22b86.jpg" alt="Jakarta ISIS attack" data-mce-source="REUTERS/Darren Whiteside" data-mce-caption="Police officers react near the site of a blast in Jakarta, Indonesia, January 14, 2016. Several explosions went off and gunfire broke out in the centre of the Indonesian capital on Thursday and police said they suspected a suicide bomber was responsible for at least one the blasts"><p class="source"><span>REUTERS/Darren Whiteside</span></p><p class="caption">Police officers react near the site of a blast in Jakarta, Indonesia, January 14, 2016. Several explosions went off and gunfire broke out in the centre of the Indonesian capital on Thursday and police said they suspected a suicide bomber was responsible for at least one the blasts</p></img></div><p></p></div></div><ul><li>Sunni Muslim extremist groups remain on the upswing from the 1970s. This rise in Sunni Muslim extremism has been met by a rise in Shiite groups back by Iran, leading to a deepening in sectarian tensions.&#xa0;</li><li>ISIS remains the dominant global terrorist threat. The group has shown it is able to conduct operations abroad, hold territory, create affiliates around the world, and lure foreign fighters into either joining their ranks abroad or carrying out homegrown attacks domestically.&#xa0;</li><li>Although ISIS attracts the most attention, al Qaeda is once again a growing threat. The group has proven able to conduct and inspire attacks abroad, while also seizing and holding territory - particularly in Yemen and Syria.&#xa0;</li><li>The main threat to the US will be US-based homegrown violent extremists. These individuals will likely try to plot and carry out attacks like the San Bernardino and Chattanooga shootings in 2015. Such incidents may either be inspired or directed by ISIS or al Qaeda.&#xa0;</li><li>Terrorists and insurgencies around the world have increasingly become intermixed. No single paradigm exists to explain this, but terrorists are taking advantage of civil unrest in some capacity from Mali in West Africa to Afghanistan.&#xa0;</li><li>Social media and online media will continue to aid and abet terrorists with spreading their message and reaching new generations of recruits. ISIS is particularly adept at using social media to influence opinion.&#xa0;</li><li><strong>Principal threats</strong>: ISIS and affiliated groups, al Qaeda and affiliated groups, and Shiite groups backed by Iran including Hezbollah.&#xa0;</li></ul><h2>Weapons of Mass Destruction</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/535a600469beddb073505e1e-3500-2333/rtr3mfo0.jpg" alt="north korea" data-mce-source="REUTERS/KCNA" data-mce-caption="North Korean leader Kim Jong Un (C) guides the multiple-rocket launching drill of women's sub-units under KPA Unit 851, in this undated photo released by North Korea's Korean Central News Agency (KCNA) April 24, 2014. "><p class="source"><span>REUTERS/KCNA</span></p><p class="caption">North Korean leader Kim Jong Un (C) guides the multiple-rocket launching drill of women's sub-units under KPA Unit 851, in this undated photo released by North Korea's Korean Central News Agency (KCNA) April 24, 2014. </p></img></div><p></p></div></div>&#xa0;<ul><li>North Korea has continued to advance its nuclear program. It has committed itself to developing long-range missiles capable of carrying nuclear weapons to the US. Pyongyang is also believed to have restarted and expanded its plutonium production reactor.&#xa0;</li><li>Pyongyang has also proven willing to proliferate its nuclear technologies to other rogue regimes, having supplied Iran and Syria with technology and expertise in the past.&#xa0;</li><li>The IC believes that North Korea's drive for nuclear weapons is aimed at deterrence and "coercive diplomacy."&#xa0;</li><li>China has modernized its nuclear forces. It has invested in road-mobile and silo-based systems that are hard to target, as well as nuclear-powered ballistic missile submarines which provide Beijing with its first long-range, sea-based nuclear capability. This provides China with a nuclear deterrent.&#xa0;</li><li>Russia has developed a ground-launched cruise missile. The US believes that this weapon capability violates the Intermediate-Range Nuclear Forces Treaty, a charge that Moscow denies.&#xa0;</li><li>Syria has continued to use chemical weapons against the opposition forces. It was determined that the regime used chlorine against the opposition multiple times in 2014 and 2015. ISIS is also believed to have used chemical weapons in multiple attacks across Iraq and Syria.&#xa0;</li><li>Iran continues to not face any "insurmountable technical barriers to producing a nuclear weapon" despite the Joint Comprehensive Plan of Action. However, the treaty does make significantly slow any potential development of a nuclear weapon as well as making it much more likely that the <keyword id="6356001" type="COMPANY" weightage="60" keywordseo="international">international</keyword> community will detect weapon's development in Iran.</li><li>Due to the increasing speed and ease of genome editing, there is an increased risk of the creation of dangerous biological agents.</li><li><strong>Principal threats:&#xa0;</strong>North Korea and Iran</li></ul><h2>Space and Counterspace</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54e615c4ecad049e6c54bce1-3000-2000/rtr4dlgu.jpg" alt="china missile" data-mce-source="Alex Lee/Reuters" data-mce-caption="Chinese People's Liberation Army Air Force's anti-aircraft and ground-to-air missile systems are seen on display ahead of the 10th China International Aviation and Aerospace Exhibition in Zhuhai, Guangdong province, November 10, 2014. "><p class="source"><span>Alex Lee/Reuters</span></p><p class="caption">Chinese People's Liberation Army Air Force's anti-aircraft and ground-to-air missile systems are seen on display ahead of the 10th China International Aviation and Aerospace Exhibition in Zhuhai, Guangdong province, November 10, 2014. </p></img></div><p></p></div></div><ul><li>Russia and China are beginning to rival the capabilities of military and intelligence satellites.&#xa0;</li><li>Due to the inherent advantages that the US gains from its space satellite systems, Russia and China will likely "progress in developing counterspace weapon systems to deny, degrade, or disrupt US space systems."&#xa0;</li><li>Electronic warfare systems capable of jamming communications and GPS satellite systems will continue to proliferate across the world, eating away at a potential US advantage. Russia has admitted to developing systems that can blind US intelligence and ballistic missile <keyword id="6354810" type="ORGANIZATION" weightage="100" keywordseo="Defense">defense</keyword> satellites. </li><li>Russia and China are continuing research into developing antisatellite missile systems.&#xa0;</li><li><strong>Principal threats:&#xa0;</strong>Russia and China</li></ul><h2>&#xa0;Counterintelligence</h2><ul><li>Foreign intelligence communities will make it a top priority to penetrate the US IC. Additionally, groups will target US companies and research institutions to gain access to critical information related to "defense, energy, dual-use technology, and other sensitive areas."&#xa0;</li><li>Insider leaks remain a significant cause of concern for the IC.&#xa0;</li><li>Nonstate actors, ranging from terrorists to organized crime, will use counterintelligence to try to avoid detection and capture.&#xa0;</li><li><strong>Principal threats:&#xa0;</strong>Russia and China globally, Iran and Cuba regionally, and various nonstate actors</li></ul><h2>Transnational Organized Crime</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/569945aac08a8037008ba093-4352-3264/rtx21lrm.jpg" alt="El CHapo capture" data-mce-source="REUTERS/Henry Romero" data-mce-caption="Recaptured drug lord Joaquin &amp;quotEl Chapo&quot; Guzman is escorted by soldiers at the hangar belonging to the office of the Attorney General in Mexico City, Mexico January 8, 2016"><p class="source"><span>REUTERS/Henry Romero</span></p><p class="caption">Recaptured drug lord Joaquin "El Chapo" Guzman is escorted by soldiers at the hangar belonging to the office of the Attorney General in Mexico City, Mexico January 8, 2016</p></img></div><p></p></div></div><ul><li>Mexican drug traffickers have increased their operations throughout the US. These various organizations have rapidly increased their production of heroin and methamphetamine to meet growing US demand.&#xa0;</li><li>Andean traffickers have drastically increased their output of cocaine.</li><li>Designer drugs have spiked in use throughout the US. These drugs, often produced in Asia, are psychoactive and are quickly redesigned before they are made illegal.&#xa0;</li><li>Organized crime have used their profits to co-opt local governments. In Africa, transnational groups exploit regional instability to purchase arms, poach endangered animals, and influence political processes.&#xa0;</li><li>Human trafficking continues to occur in every country in the world. Organized crime takes advantage of porous borders to sell individuals, and terrorist groups - including ISIS and Boko Haram - use trafficking to gain recruits and as a source of funding.&#xa0;</li><li><strong>Principal threats:&#xa0;</strong>Nonstate actors</li></ul><h2>Economics and Natural Resources</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559aba8a6bb3f71321804f04-1726-1173/rtrksvz.jpg" alt="putin arctic" data-mce-source="REUTERS/ITAR-TASS" data-mce-caption="Russian President Putin and Defence Minister Ivanov share a joke while visiting military exercises in the Russia's Arctic North on board nuclear missile cruiser Pyotr Veliky. Russian President Vladimir Putin (L) listens to Russia's Navy deputy commander Mikhail Zakharenko while visiting military exercises in the Russia's Arctic North on board nuclear missile cruiser Pyotr Veliky (Peter the Great), August 17, 2005. "><p class="source"><span>REUTERS/ITAR-TASS</span></p><p class="caption">Russian President Putin and Defence Minister Ivanov share a joke while visiting military exercises in the Russia's Arctic North on board nuclear missile cruiser Pyotr Veliky. Russian President Vladimir Putin (L) listens to Russia's Navy deputy commander Mikhail Zakharenko while visiting military exercises in the Russia's Arctic North on board nuclear missile cruiser Pyotr Veliky (Peter the Great), August 17, 2005. </p></img></div><p></p></div></div><ul><li>A continued economic downturn in China has caused decline in world energy and commodity prices. This has helped prompt a global slowdown in trade that impacts the world economy as a whole.&#xa0;</li><li>Falling energy and commodity prices will foster instability across the world. Venezuela is particularly hard hit and will have to struggle to avoid a default. Nigeria and Angola are now also struggling, increasing both countries' instability.&#xa0;</li><li>The Arctic could become a point of competition and potential confrontation between Russia and the West if Russian-Western ties continue to deteriorate. Russia is continuing its process of militarizing its northern Arctic coastline.&#xa0;</li><li><strong>Principal threats:&#xa0;</strong>Weakening economic conditions</li></ul><h2>Human Security</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56b3cca12e526558008b50a2-2000-1500/gettyimages-507327040.jpg" alt="zika" data-mce-source="Getty Images/Mario Tama" data-mce-caption="Health workers fumigate in an attempt to eradicate the mosquito which transmits the Zika virus on January 28, 2016 in Recife, Pernambuco state, Brazil."><p class="source"><span>Getty Images/Mario Tama</span></p><p class="caption">Health workers fumigate in an attempt to eradicate the mosquito which transmits the Zika virus on January 28, 2016 in Recife, Pernambuco state, Brazil.</p></img></div><p></p></div></div><ul><li>Infectious diseases will pose a national security risk to the US. Increasing globalization and land-use changes will increase the chances for new epidemics that the international community "remains ill prepared to collectively coordinate and respond to."</li><li>"Risks of atrocities, large-scale violence, and regime-threatening instability will remain elevated in 2016." Spillover from wars, such as Syria, is likely to increase throughout the year. Seven states as of 2015 were also unable to project authority through more than 50% of their territory.&#xa0;</li><li>An unprecedented number of displaced peoples will strain the international community's ability to respond. This will lead to increased tensions and augment further issues. The UN is also expected to be underfunded for its 2016 global assistance fund.&#xa0;</li><li><strong>Principal threats:&#xa0;</strong>Infectious diseases, government instability, and global displacement</li></ul><h3>Here's the full report:</h3><p><div><iframe class="scribd_iframe_embed" src="https://www.scribd.com/embeds/298716677/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-PFBfFktLYUa3YYaXwDTQ&amp;show_recommendations=false" data-auto-height="false" data-aspect-ratio="0.7729220222793488" scrolling="no" id="doc_86178" width="840" height="1120" frameborder="0"></iframe></div></p><p class="embed-spacer">&#xa0;</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/this-precision-weapon-is-the-navys-last-line-of-defense-2016-1">This precision weapon is the Navy's last line of defense</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

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