Page 96 - SAMENA Trends - Oct-Nov 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

ITU ranks NTRA within ‘G5 Benchmark’ advanced performance level

Egypt’s National Telecom Regulatory technologies and integrated digital services. market, involving all segments of society
Authority (NTRA) has achieved the The ITU’s classification of the NTRA in the digital transformation process, and
“Advanced” level in the G5 Benchmark reinforces Egypt’s leading role regionally ensuring accessible telecommunications
for regulatory performance in the and globally in the telecommunications and internet services for elderly users and
telecommunications sector, as recognized regulatory field. This recognition opens people with disabilities. Furthermore, the
by the International Telecommunication up further investment opportunities in NTRA’s interactive application, MyNTRA,
Union (ITU). This level represents the Egyptian telecommunications market was recognized as one of the top five global
the highest global ranking and and supports the development of an projects in digital government at the World
highlights the collaborative efforts attractive investment and competitive Summit on the Information Society (WSIS)
in regulatory development within the environment. It also contributes to the forum in May 2022. Egypt also hosted the
telecommunications industry. The ITU progress of the digital transformation Global Symposium for Regulators (GSR23),
has classified the NTRA and the Egyptian process. The NTRA has actively promoted which brought together over 700 specialists
regulatory experience at this level due collaborative regulation by engaging with from telecommunications regulators
to their effective use of collaborative regulatory entities from different sectors and policymakers from more than 100
regulation to foster an integrated digital to support the digital transformation countries. In addition, the Egyptian African
economy and create a conducive regulatory process. This includes agreements with Telecommunication Training Center (EG-
environment for efficient and effective the Central Bank of Egypt to support digital ATRC), affiliated with the NTRA, has been
digital services. Collaborative regulation payments and enhance financial inclusion. accredited by the ITU as an international
is considered essential for the digital Additionally, the NTRA collaborates with training center at the ITU Academy. This
transformation process and the delivery various government entities to ensure accreditation was achieved by meeting the
of integrated digital services in various the protection of telecommunications criteria for selecting partners for the ITU
sectors. It requires coordination and infrastructure within the national Training Academy from a pool of over 60
collaboration between telecommunications cybersecurity strategy. The recent progress participating centers worldwide. Moreover,
regulatory bodies and counterparts in of the NTRA builds upon a series of Egypt chaired three study committees
other sectors. This collaborative approach local and international achievements in in the radio, standardization, and
aims to establish an effective regulatory telecommunications regulation. These development sectors at the International
framework for service governance and achievements include launching initiatives Telecommunication Union.
address the challenges posed by emerging to promote digital services in the Egyptian

XL Axiata-Smartfren Merger Reportedly Entering Final Stages

The proposed merger between Indonesian It is claimed that the parties involved price of IDR53. Whilst Smartfren President
telcos XL Axiata and Smart Telecom agreed to a stock valuation for the target Director Merza Fachys is cited by D-Insights
(Smartfren) is entering its final stages, company of IDR50 (USD0.00318) per share as stating that he has not yet received
according to a report from Bloomberg. – a discount on Smartfren’s current market information on the price or agreement
from the telco’s parent, Sinar Mas Group,
he nonetheless ‘hope[s] for a better
solution through the merger’. The Ministry
of Communication and Informatics (MCI,
known locally as KemKominfo) confirmed
back in September that XL Axiata and
Smartfren had entered into discussions
about a possible merger. Based on research
from BRI Danareksa Sekuritas, as reported
by D-Insights, the enterprise values for XL
Axiata and Smartfren are currently IDR73.6
trillion and IDR43.1 trillion, respectively,
while their market capitalizations are
IDR31.1 trillion and IDR18.9 trillion, which
means a merger could create an enlarged
entity valued at IDR116.7 trillion – likely
with XL Axiata as the senior partner.

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