Beyond AI hype, notch envy, and news from elsewhere

Good morning, Mobile World Congresspeople!

We’re past the halfway point. There’s no going back now (metaphorically speaking, because many of us will indeed go back home tomorrow).

And blast this Mediterranean weather! Today, the high will be a so-so 7°C (45°F), with almost certain rain.

What to watch for today

A question of intelligence. Today’s lone keynote is about “Creating an Artificially Intelligent Future,” with roboticists and AI execs taking the stage first thing in the morning to separate the hype from the reality. A companion discussion, of sorts, features top execs from Google, IBM, and Salesforce chewing over similar issues. Another noteworthy session is the one about whether zero-rating (offering favored data services for free while charging for others) undermines net neutrality.

Quartzapalooza. Quartz reporters, editors, and executives from your favorite global business news site will fan out across the Fira today. Joon Ian Wong will lead a chat about what blockchain technology means for digital advertising, while Joy Robins is on a panel about the “Power of Personalization.” At the CMO Summit, a day of marketing-focused programming in Hall 8, Zach Seward will be interviewed by Facebook Messenger’s Stefanos Loukakos at 10:20. According to sources close to the situation—okay, us—there will be a surprise announcement from Quartz. Stay tuned.

The beginning of the end. Today is the final day of the startup-focused side event 4YFN, which takes place at the Fira Montjuïc, up the road from the main MWC action. It’s your last chance to get a look at more than 600 startups seeking attention, funding, or—let’s be honest—a takeover bid. If yesterday was anything to go by, determined boozing will break out at the end of the day, the sort that only hard-changing startup founders letting off steam for one more night in Barcelona can manage.

Out and about. Speaking of booze, a few stiff drinks are warranted to steel yourself for this sort of weather, so consider a fiesta called “Swedish Beers,” which is about as straightforward as it sounds, or another involving tapas put on by networking company Quobis. There are also rumblings of a more exclusive event hosted by Twitter… somewhere.

What everyone is talking about

The biggest ~disruption~ of the day came from the weather. One of the most ubiquitous scenes at MWC is a group of people taking photos of phones with their phones, but the rare sight of snow flurries in Barcelona encouraged them to go outside instead. (And, of course, snap some selfies.) The wintry conditions were as popular a topic of conversation as anything to do with 5G, AI, or the width of a device’s bezels.

This was a commentary, perhaps, on the significance of the new products on display across the conference halls this week. Recognizing something truly surprising and delightful, the crowds drifted away from the booths and out into the world. (Granted, those forays took them out into corporate-branded courtyards, but still.)

More highlights from yesterday

5G is coming to the US. Sprint announced that it’s bringing “5G-like capabilities” to six big American cities in early 2019. The official 5G standard hasn’t been agreed upon yet, so the announcement probably doesn’t pack the punch Sprint’s PR department wishes it could. Still, if you live in Atlanta, Chicago, Dallas, Houston, Los Angeles, or Washington, DC, you’re likely going to get much faster (up to 1 gigabit) mobile internet pretty soon.

4G is going to the moon. Nokia announced that it would build “space-grade” 4G networking equipment to be blasted to the moon on a SpaceX rocket sometime next year. In partnership with Vodafone, a 4G base station will be set up to communicate with Audi-built rovers exploring the Apollo 17 landing site, where the last manned lunar mission touched down. A 4G network will be able to transmit more data more efficiently back to the lunar module than radio waves. Now, if only we could get reliable mobile coverage in the Fira…

Crypto crashes the telco party. There’s no hiding from cryptocurrency hype, even at a trade show focused on 5G, AR, and AI. The CEO of Japanese e-commerce giant Rakuten, Hiroshi Mikitani, announced at a keynote that his firm would turn its loyalty-program points into crypto-tokens called Rakuten Coin. It has awarded $9 billion worth of points in the 15 years since the program launched. Rakuten didn’t say when the crypto-fication of the program would start, nor whether the tokens would trade freely on exchanges.

Notch the phones you have been waiting for. Every manufacturer in Shenzhen seems to be cranking out smartphones that mimic the look of the iPhone X. On the outer edges of the conference halls, many smaller companies flogged phones with the iPhone X’s distinctive (and heavily mocked) notch at the top. The most high-profile clone, by Taiwanese electronics company Asus, was unveiled last night: the be-notched ZenFone 5 (not to be confused with last year’s ZenFone V). “You have to follow the trends,” said the company’s marketing chief.

Chart interlude

What were the buzziest buzzwords at MWC this year? Counting mentions in session titles across the week of programming, a clear winner emerges:

Mike likes…

Some startups, like Danish mobile advertising software maker Calldorado, really show their appreciation for the concept of free cash flow.

Seen and heard

“The market is getting a bit bored now of the black rectangles,” the CEO of a major reseller of used handsets told Quartz. “It’s waiting for a game changer.”

“We used it on wild animals,” a KT staffer explained, as she demonstrated a 5G-powered facial-recognition system to keep wild boars away from farmers’ crops.

Ericsson’s massive area at the Fira—“Welcome to the do zone”—is like stepping into a completely different conference, in more ways than one. First, on entry there’s the branded yellow lanyards they urge you to put on instead of the red ones from rival Huawei that come with official badges. Even more notably, once inside the wifi geolocates you to Sweden.

Radical candor award: “It’s difficult for us to convince the market that we are a good investment case,” a senior exec from a European telco told journalists over drinks.

Shadowy forces are trying to tell us… something.

News from around the world

The EU will release a flash estimate on inflation. Investors await the February number after European Central Bank president Mario Draghi warned on Monday that economic slack—bigger than previously thought—could slow the rise of inflation despite the euro zone’s growth.

Jared Kushner lost access to top secret documents. Trump’s son-in-law and senior adviser will no longer receive highly classified briefings until he gets a permanent clearance. Chief of staff John Kelly is restricting interim clearances as he tries to impose discipline in the White House.

A challenger to Nicolas Maduro stepped forward. Henri Falcon, a former governor and retired military officer, will challenge the Venezuelan president in a vote scheduled for April. By registering as a candidate he broke ranks with an opposition coalition refusing to participate in the election unless the government takes steps to ensure it will be fair and transparent.

Matters of debate

Trending content needs to die. Online systems that don’t account for quality are too easy to manipulate (paywall).

China’s Anbang takeover is a “too big to fail” moment. The troubled financial firm would cause chaos (paywall) if it couldn’t repay investors.

Ride-sharing increases congestion. Instead of creating efficiencies, Uber and Lyft are putting more cars on the street.

Surprising discoveries

Quebec doctors are turning down raises. More than 250 physicians have called for the provincial government to increase pay for nurses, orderlies, and other medical staff instead.

An Egyptian pop star was sentenced to jail for insulting the Nile. Sherine Abdel-Wahab made an offhand comment that the river contains parasites and people should “drink Evian” instead.

Bitcoin’s self-styled inventor has been accused of stealing $5 billion. The family of Craig Wright’s deceased business partner says Wright forged contracts to obtain about 300,000 bitcoins.

Our best wishes for an inspiring day at the expo. Please send any news, tips, Scandinavian lagers, and cosmic mobile hotspots to us, Jason, Joon, and Mike. The best way to keep up with news while you’re on the go this week is the Quartz app for iPhone and Android