Page 114 - SAMENA Trends - May-June 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

The Ministry of Industry and Information Technology up of the VAT industry in China. The Circular further
of China ("MIIT") issued the "Circular on Pilot Programs eases foreign investment shareholding restrictions in 6
for Expanding the Opening-up of Value-added Telecom VAT sectors initially across 4 pilot areas, namely Beijing,
Business to Foreign Investment". This marks China’s Shanghai, Hainan Free Trade Port, and Shenzhen, laying
China renewed effort to enhance foreign investment access the groundwork for broader opening-up in the future as
and bolster infrastructure development to meet the
well. (May 9, 2024) www.herbertsmithfreehills.com
growing demand for telecoms services. In the past,
China has regulated foreign investment in the telecoms China's telecommunications industry registered steady
sector, with the extent of restrictions depending on the expansion in the first quarter of 2024, official data
relevant telecoms service in question. In particular, showed. The combined business revenue of firms in this
China has imposed limits on foreign investment in sector totaled 443.7 billion yuan (about $62.44 billion)
value-added telecommunications ("VAT") services in the period, rising 4.5 percent year-on-year, according
companies that provide internet information services, to the Ministry of Industry and Information Technology.
which are generally subject to a 50% cap, with a few Combined revenue of emerging businesses, such as
exceptions. Historically these foreign ownership big data, cloud computing, and the Internet of Things,
restrictions have led to the widespread adoption of the logged double-digit growth. China's three telecom giants
Variable Interest Entities (VIE) structure in the relevant -- China Telecom, China Mobile and China Unicom --
industries, as well as foreign investors adopting joint saw their revenue from emerging businesses increase
ventures with local partners to conduct business in by 12.2 percent year-on-year, driving up the telecoms
China. However, through the recently issued Circular, sector's total revenue by 3 percentage points.
the MIIT has announced plans to expand the opening- (May 5, 2024) www.chinadailyhk.com

Mobile internet adoption in the Democratic Republic reason was not provided by ARPTC for the three-year
of the Congo surged 40% to 28.9 million subscribers, growth. But the data point aligned with mobile phone
according to the country’s telecoms regulator. Ecofin users, this figure grew from 39.9 million to 56.1 million
Agency reported, the Regulatory Authority for Post and in the same period. Data traffic surged from 43.3 billion
Congo Telecommunications of Congo (ARPTC) detailed the megabytes in the third quarter of 2020 to 182.2 billion
growth in Q3 2023, was compared to Q3 2020 when
megabytes by the third quarter of 2023. Average monthly
the DRC recorded 20.7 million mobile internet users. data usage grew from 751.95 megabytes to 2,028.97
The DRC has a population of 75.6 million people and megabytes. The ITU announced the DRC has a low
is regarded as a greenfield for operators due to its size. mobile penetration rate at 20.4% when compared to the
In 2013, the country only had 1.4 million subscribers. A African average of 40%. (June 21, 2024) www.developingtelecoms.com

The average monthly data usage per mobile data SIM radio broadcasting spectrum (DAB), and the first subsidy
card reached 9.8 GB – up from 7 GB in the previous call for boosting the signal on trains. The DAB spectrum
year says the CTU. The total volume of mobile data auction, which ended in February 2024 with the grant of
transferred reached nearly 1.35 thousand PB, showing block allocations to eight successful bidders, aims to
Czech an estimated year-on-year growth of around 43 percent. promote rapid development of broadcasting networks
to cover the population, territories and motorways.
Among its other areas of focus in 2023, the regulator
Republic said, were anti-spoofing measures, auctioning digital (June 6, 2024) www.5gobservatory.eu

The Dominican Republic, 250 MHz of spectrum is being The auction was originally scheduled for March 2024
offered in the 700 MHz, 2.3 GHz and 3.5 GHz bands. The but was postponed to May 2024.
spectrum must be used for the development of high- (May 24, 2024) www.cullen-international.com
speed 5G networks and to support universal service.
Dominican
Republic

114 MAY-JUNE 2024