Page 85 - SAMENA Trends - December 2023
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REGULATORY & POLICY UPDATES  SAMENA TRENDS

        Spain’s  Govt  Acquiring  10%  Shareholding  in Telefonica Amid National

        Interest Concerns Following stc Stake Purchase


        The  government  of Spain, acting through the  sovereign  wealth   is acquiring up to 10% of telecoms giant Telefonica in response
        fund Sociedad Estatal  de Participaciones  Industriales  (SEPI),   to  Saudi  Telecom  Company’s  (stc’s)  acquisition  of  9.9%  of  the
                                                               telco’s equity for EUR2.1 billion (USD2.3 billion) back in September.
                                                               Madrid’s  decision,  which  was  first  mooted  in  late  October,  is  a
                                                               statement of intent that it will protect the country’s security and
                                                               defence interests – given Telefonica’s strategic involvement in this
                                                               area. The Financial Times quotes Spain’s outgoing deputy prime
                                                               minister, Nadia Calvino, as saying the move is ‘in line with other
                                                               large  European  countries,  such  as  France  and  Germany,  which
                                                               have and are increasing their shareholdings in big and strategic
                                                               telecommunications  operators’.  Whilst  no  mention  was  made
                                                               of stc, SEPI revealed the acquisition would enable Telefonica to
                                                               ‘achieve its objectives’ and ‘contribute to safeguarding its strategic
                                                               capabilities’.



        Ofcom Consults on Channel 4 License Renewal



        UK media regulator Ofcom has opened a consultation on adver-
        tising-funded public broadcaster Channel 4’s license renewal. The
        broadcaster’s current license is set to expire at the end of next year.
        Channel 4 has requested changes to certain obligations to support
        it becoming a digital-first organization. Ofcom said the proposals
        for the  new  licenses  “aim  to strike  a  balance  between  allowing
        [Channel 4] greater flexibility in the future to develop its content
        and distribution strategy in support of its digital transformation,
        while continuing to safeguard its investment in distinctive UK con-
        tent and protect delivery of the core elements of its linear output
        on Channel 4.” The consultation comes ahead of the passing of the
        new Media Bill, which is expected to grant the broadcaster some of
        the flexibility it says it needs, including granting it the ability to pro-
        duce its own programming and retain IP, rather than outsource all
        production to the independent sector. Among the changes in the
        Ofcom consultation are a reduction in the current requirement that
        at least 56% of the hours of programmes included in the service in
        each calendar year are originally produced or commissioned for   an independent production quota of 25% total broadcasting hours,
        the service to at least 45% of hours each calendar year. Aspects   although this could be raised to 35% under the new rules to safe-
        relating to changes brought in by the Media Bill, such as in-house   guard  the  independent  sector, in  the  event  that  the  broadcaster
        productions, will be reviewed later. For now Ofcom has retained   goes ahead with plans to develop its own production capability.



        JCRA Proposes Renewing Home Net’s License



        The Jersey Competition and Regulatory Authority (JCRA) has pro-  fee,  the  JCRA  has  said  the  proposed  new  concession  will  carry
        posed renewing HomeNet’s Class II operating license, which is cur-  the same terms as the old one, ‘save for necessary updates and
        rently set to expire next month, issuing an initial notice regarding   corrections.  As part of the  regulatory process for  renewing  the
        the matter, the regulator noted that HomeNet’s Class II license –   concession, however, the JCRA has called for any representations
        which applies to operators which do not possess significant mar-  regarding the matter; should no responses be received by 25 Janu-
        ket power – is set to expire on 26 January 2024. With the operator   ary 2024, the regulator has said it will issue the new concession to
        having now applied to renew the license and paid the necessary   commence on 27 January.

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