Page 111 - SAMENA Trends - August 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

The lower house has approved plans to include digital such as messaging and calling applications, would be
platforms in tax reforms which, if written into law, would covered by the new taxation. Senior lawmaker Patricio
oblige international over-the-top (OTT) providers to pay Melero explained the need for the reform saying: ‘It is
VAT on services offered in Chile. The 19% levy would not fair that some digital services from abroad such
Chile be applied to ‘digital services provided by persons as Netflix or Spotify do not pay VAT and all those
or entities domiciled or residing abroad, regardless
who serve in Chile do pay it.’ The official went on to
of where the server or technological platform that note that such external entities can generate revenue
supports them [is located], and to the extent that said in Chile and impact the competitive environments of
services are used in Chile by natural persons’. Amongst various sectors but make no tax contribution. Some
the list of services covered by the tax are the provision details of the plan remain to be settled, however: the
of digital content such as movies, videos, music and tax collection agent is still to be determined and there
games, and cloud storage or computing and other is a lack of clarity on areas of potential double-taxation.
forms of software as a service (SaaS). The text also Food delivery services were one area expected to be
looks to close any potential loopholes by noting that affected by the latter, as customers would be charged
the tax would be applied independently of the device VAT on the food, as well as the digital platform used to
used to connect to the internet, the access technology, make the order.
or any intervening application or platform. It was not (August 28, 2019) News Portal Cooperativa
made clear whether digital communications services,

The telecoms watchdog, the Consumer Protection even further.’ Levikom Eesti, a provider of IoT and fixed-
and Technical Regulatory Authority (Tarbijakaitse ja wireless internet services, filed a complaint in March
Tehnilise Jarelevalve Amet, TTJA), has defended its this year saying that auctioning only three licenses
decision to split 5G-capable spectrum in the 3.6GHz in the 3.6GHz band would favor the country’s trio of
Estonia band into three blocks of 130MHz. The decision was incumbent cellcos, while also hampering competition.
made following consultations with operators, it says, The regulator says the legal challenge ‘has created a
and providing three larger blocks of spectrum rather situation where the development of new services is
than a greater number of smaller blocks will have delayed for an indefinite period and their delivery to
benefits for network speed and capacity. In a statement customers is delayed, which is certainly not beneficial
it commented: ‘The TTJA is of the opinion that the for the overall development of the telecommunications
chosen solution is technologically significantly better market or Estonia’.
and more sustainable than splitting the frequency bands (August 1, 2019) telegeography.com

Finland’s DNA has confirmed that, following a deal having gained EC approval last month, DNA now
governmental plenary session, it has been decided notes that the completion of the deal remains subject
that the proposed acquisition of a majority stake in to approval by Finland’s Ministry of Economic Affairs
the telco by Norway’s Telenor Group will not have an and Employment. Nonetheless, it said Telenor Group
Finland effect on the Finnish operator’s licenses. In April 2019 expects to conclude the transaction this month, after
which it will trigger a mandatory public tender offer for
Norway-based telecoms giant Telenor Group entered
into separate agreements with DNA’s two largest the remaining outstanding shares in DNA.
shareholders to acquire 54% of its shares. With the (August 9, 2019) telegeography.com

France’s independent regulator, the National Agency and Altice France (SFR, 25). The ANFR also published
of Frequencies (Agence Nationale des Frequences, in its monthly update on the number of 2G, 3G and 4G
ANFR), has given the green light for 65 trial 5G base LTE BTS in the country that it had authorized a total of
transceivers stations (BTS) in the 3.5GHz band in July, 47,200 sites for LTE use by 1 August 2019, with 42,209
France bringing the total authorized 5G sites in the country to of these BTS currently in service.
273. Orange has been allowed to trial fifth-generation (August 7, 2019) telegeography.com
technology at 191 sites, followed by Bouygues (57)

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