Page 113 - SAMENA Trends - March-April 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

India Regulator Calls For 5G Spectrum Price Cuts

India’s telecoms regulator heeded calls from operators and access enterprises are given for private 5G networks. The coveted
recommended the government reduce reserve prices for spectrum 700MHz band was not sold during an auction in March 2021 due
in the key 700MHz and 3500MHz bands for an upcoming auction. its high reserve price.
In a statement, the Telecom Regulatory Authority of India
(TRAI) confirmed the sale will include more than 100,000MHz
of spectrum across ten bands, which carry 20-year licenses. It
recommended the Department of Telecommunications (DoT) cut
the per-MHz price of 700MHz spectrum by 40 per cent to INR39.3
billion ($516.4 million) and 3500MHz by 36 per cent to INR3.2
billion. TRAI also wants new reserve prices set for 5G spectrum
in the 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz and
2500MHz bands. The government still has to finalize the amount
of spectrum to assign in the 600MHz, 3500MHz and mmWave
bands. With the three major operators in the country all conducting
limited 5G trials, most have called for the government to release
the necessary spectrum and cut prices. They have reportedly also
threatened limited participation in the auction depending on the

Minister Briefs President on Plans to ‘De-Monopolize’ Kazakhtelecom Group

Kazakhstan’s Minister of Digital Development Bagdat Musin previously reported by CommsUpdate, the MDAI has scheduled
has given a briefing to the country’s President Kassym-Zhomart a 5G 3500MHz spectrum license auction for the end of May.
Tokayev on developments in the telecoms, IT and digitalization The Minister also presented a plan for further development of
sectors, including progress in the national strategy to ‘eliminate the telecommunications market, in particular highlighting that
digital inequality and strengthen control over the provision of ‘work is underway to de-monopolize the group of companies of
the internet and its quality.’ As reported on the websites of the Kazakhtelecom’, adding that ‘a number of legislative initiatives
Ministry of Digital Development, Innovation & Aerospace Industry will be adopted to improve the competitive environment.’ In
(MDAI) and the President (Akorda.kz), in full-year 2021 internet addition to dominating Kazakhstan’s fixed broadband and fixed
quality was ‘improved in 628 settlements, and this year similar voice markets, state-controlled Kazakhtelecom owns two mobile
work will be carried out in 140 more villages.’ The President was network operators – Kcell and Mobile Telecom Service (Tele2/
also informed about the successful testing of 5G technology by Altel) – which collectively hold a near-60% share of national
mobile operators in Nur-Sultan, Almaty and Shymkent, in advance cellular subscriptions, competing with VEON-backed KaR-Tel
of planned commercial 5G launches this year in major cities. As (Beeline).

Telkom and ICASA End Battle Over South African Spectrum Auctions

It looks like one of the potential hurdles to the planned licensing of take its case to court; in particular it gives so-called challenger
high-demand spectrum in South Africa may have been overcome operators like Telkom further opportunity to acquire sub-1 GHz
after the country’s number three operator Telkom ended its legal spectrum. ICASA said in a separate statement it will commence
battle with regulator the Independent Communications Authority with the licensing of the unsold 800MHz spectrum band that
of South Africa (ICASA). Telkom reportedly reached an out-of- was not sold in last month's auction and any other spectrum
court settlement with ICASA late last week. Among its complaints that is presently available for licensing. Reuters points out that
had been that the spectrum auction process favored big mobile in the licensing process of the spectrum, ICASA will consider the
operators and was anti-competitive. The auction had already imbalances in this band and the impact of the outcome of the
gone ahead – on 17 March – so there was potential for disruption auction on competition in the mobile market. It will also carry out
had Telkom’s complaint been upheld. It would certainly have been an inquiry into the existence of a secondary market for spectrum
a major blow for a process that was much more successful than and whether regulatory intervention is required. Is the long wait
had been expected, raising nearly a billion dollars from the six – over 17 years so far – for new spectrum to expand 4G capacity
bidders taking part. Now however, Telkom seems to be happy that and roll out 5G finally over? It may be, though the licensing of the
the settlement addresses the main complaints that led Telkom to remaining spectrum will not be over until March 2023.

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