Page 85 - SAMENA Trends - December 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

Spain’s Govt Acquiring 10% Shareholding in Telefonica Amid National

Interest Concerns Following stc Stake Purchase

The government of Spain, acting through the sovereign wealth is acquiring up to 10% of telecoms giant Telefonica in response
fund Sociedad Estatal de Participaciones Industriales (SEPI), to Saudi Telecom Company’s (stc’s) acquisition of 9.9% of the
telco’s equity for EUR2.1 billion (USD2.3 billion) back in September.
Madrid’s decision, which was first mooted in late October, is a
statement of intent that it will protect the country’s security and
defence interests – given Telefonica’s strategic involvement in this
area. The Financial Times quotes Spain’s outgoing deputy prime
minister, Nadia Calvino, as saying the move is ‘in line with other
large European countries, such as France and Germany, which
have and are increasing their shareholdings in big and strategic
telecommunications operators’. Whilst no mention was made
of stc, SEPI revealed the acquisition would enable Telefonica to
‘achieve its objectives’ and ‘contribute to safeguarding its strategic
capabilities’.

Ofcom Consults on Channel 4 License Renewal

UK media regulator Ofcom has opened a consultation on adver-
tising-funded public broadcaster Channel 4’s license renewal. The
broadcaster’s current license is set to expire at the end of next year.
Channel 4 has requested changes to certain obligations to support
it becoming a digital-first organization. Ofcom said the proposals
for the new licenses “aim to strike a balance between allowing
[Channel 4] greater flexibility in the future to develop its content
and distribution strategy in support of its digital transformation,
while continuing to safeguard its investment in distinctive UK con-
tent and protect delivery of the core elements of its linear output
on Channel 4.” The consultation comes ahead of the passing of the
new Media Bill, which is expected to grant the broadcaster some of
the flexibility it says it needs, including granting it the ability to pro-
duce its own programming and retain IP, rather than outsource all
production to the independent sector. Among the changes in the
Ofcom consultation are a reduction in the current requirement that
at least 56% of the hours of programmes included in the service in
each calendar year are originally produced or commissioned for an independent production quota of 25% total broadcasting hours,
the service to at least 45% of hours each calendar year. Aspects although this could be raised to 35% under the new rules to safe-
relating to changes brought in by the Media Bill, such as in-house guard the independent sector, in the event that the broadcaster
productions, will be reviewed later. For now Ofcom has retained goes ahead with plans to develop its own production capability.

JCRA Proposes Renewing Home Net’s License

The Jersey Competition and Regulatory Authority (JCRA) has pro- fee, the JCRA has said the proposed new concession will carry
posed renewing HomeNet’s Class II operating license, which is cur- the same terms as the old one, ‘save for necessary updates and
rently set to expire next month, issuing an initial notice regarding corrections. As part of the regulatory process for renewing the
the matter, the regulator noted that HomeNet’s Class II license – concession, however, the JCRA has called for any representations
which applies to operators which do not possess significant mar- regarding the matter; should no responses be received by 25 Janu-
ket power – is set to expire on 26 January 2024. With the operator ary 2024, the regulator has said it will issue the new concession to
having now applied to renew the license and paid the necessary commence on 27 January.

85 DECEMBER 2023