Page 126 - SAMENA Trends - November-December 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

The process to sell Brazilian regional telecoms – voted to privatize Sercomtel after an 18-1 ballot
operator Sercomtel will commence in February 2020. in favor of the proposal. Regional power company
An auction for the company’s shares will commence Companhia Paranaense de Energia (Copel) holds a
on 5 February, with the reserve price for the telco set at 45.00% stake in the operator, with the remaining 4.12%
Brazil BRL130 million (USD32 million). The tender paperwork distributed between minority shareholders. In July
notes that there is a need to ‘restructure the company 2019 minority shareholders Marcelo Kneese and Heber
to provide increased investments, operational Wedemann, who run Dez de Dezembro Investimentos
management improvements, expansion of customer e Participacoes, withdrew a BRL120 million takeover
service infrastructure, an increase in the quality of the offer, blaming unresolved issues concerning the telco’s
services provided and, above all, improved economic- complicated corporate structure.
financial performance’. In May 2019 the City Council (December 19, 2109) BNAmericas
of Londrina – which holds a 50.88% stake in the telco

A regulatory proposal to reduce frequency fees could frequencies but also have enough funds left to invest
see Bulgaria’s government begin issuing 5G-ready in the necessary infrastructure for 5G.” Bulgaria’s three
spectrum in the second quarter of 2020. Ivan Dimitrov, operators - A1, Telenor and Vivacom – have stated
the head of Bulgaria’s Communication Regulation that they will likely cooperate in order to split the hefty
Bulgaria Commission (CRC), confirmed that frequencies in the investment costs for 5G, which could total as much as
700MHz and 3600MHz bands would be made available. BGN800 million (USD453 million) across the next three
The regulator – with the backing of the transport ministry to four years. Vivacom CEO Atanas Dobrev noted that
- has proposed cutting fees by 30%-50% to expedite 5G equipment at present costs around four times as
5G deployment. The Council of Ministers will vote on much as 4G and 3G network kit. All of the operators
the proposal, with pricing to be decided depending on have begun 5G trials in the country.
whether it is adopted. Dimitrov commented: “The idea (November 24, 2019) developingtelecoms.com
is to find the proper balance – to pay enough for the

Cambodian mobile operator Smart Axiata has said it is Axiata conducted a live 5G trial in the capital Phnom
ready to roll out 5G services but is waiting for permission Penh using a mobile device from Chinese equipment
from the Ministry of Posts and Telecommunications vendor Huawei. The firm said that when commercial
Cambodia (MPTC) before it can do so. The operator’s rollout begins in the next few years, 5G coverage will
Cambodia CEO Thomas Hundt told that talks are underway with initially be centered on ‘hotspots’ in major cities.
the Ministry with a view to securing the necessary (November 14, 2019) The Khmer Times
approvals for 5G-suitable spectrum. In July Smart

The Competition Bureau has published a submission to like Freedom and Videotron are increasingly disrupting
the Canadian Radio-television and Telecommunications the market – with prices up to 35%-40% lower in areas
Commission (CRTC’s) mobile market review, in which with a ‘disruptor’ presence. The Bureau recommended
it says consumers could save substantially on their that the CRTC pursue a roaming/MVNO policy including
Canada wireless bills if major national cellcos Bell, Rogers and mandating Bell, Rogers and Telus to sell temporary

Telus were faced with more competition from regional access to their wireless networks to regional carriers
carriers like Freedom Mobile and Videotron, as well as who intend to invest and further expand their own
MVNOs. The Bureau found that Bell, Rogers and Telus networks, to spur additional price competition in the
are able to charge higher prices in most of Canada short term while avoiding the risk of declining network
where they possess market power but regional players quality in the long term. (November 26, 2019) telegeography.com

Chile’s Antitrust Tribunal (Tribunal de Defensa de la Libre Under the new rules, limits are set by macro-band and
Competencia, TDLC) has reached a decision regarding are imposed on each territorial zone. The five defined
new spectrum holding limits, largely supporting macro bands are: ‘Low’ – less than 1GHz; ‘Middle Low’
the most recent proposals of sector watchdog the – 1GHz to 3GHz; ‘Middle’ 3GHz and 6GHz; ‘Middle High’
Chile Department of Telecommunications (Subsecretaria – 6GHz to 24GHz; and ‘High’ – more than 24GHz. For
the Low and Middle Low bands, the TDLC established
de Telecomunicaciones, Subtel), for flexible limits.
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