Page 107 - SAMENA Trends - February-March 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

Ethiopia Could Shut the Door on International Telecoms Investors if they

Don’t Meet its Minimum Valuations

Ethiopia could reverse its decision to open liberalization of Ethiopia’s telecoms sector owned Ethio Telecom to international
up its telecoms market to international has been a hot topic in the industry, since investors. Now, even those plans look to
investment, if the bids it receives for a 40% the country first expressed an interest be in doubt. With more than 100 million
stake in state owned Ethio Telecom do not in courting foreign investment into its subscribers, Ethiopia represents a huge
meet a minimum threshold. Eyob Tekalign, telecoms sector three years ago. Back in potential market for international telcos.
the Government Minister responsible 2018, the Ethiopian government pledged The Ethiopian Communication Authority
for overseeing the privatization process, to open up its state-run telecoms sector went as far as tendering for prospective
told reporters from Bloomberg that the to international investment and promised licensees and had received Expressions of
government could walk away from the to auction off two telecoms licenses to Interest from some of the world’s biggest
scheme, if minimum valuations were not successful international bidders. The telcos, including Global Partnership
met. “If we get the value, we expect from new telcos would have competed against for Ethiopia (a consortium of telecom
the bidding process, we will go ahead,” he Ethio Telecom, creating a three-operator operators made of Vodafone, Vodacom,
said. “If not, we will have another look.” market in the East African nation. The and Safaricom), Etisalat, Axian, MTN,
This is the first time that the Ethiopian government received interest from a Orange, Saudi Telecom Company, Telkom
government has publicly stated that it swathe of international telcos, desperate SA, Liquid Telecom, Snail Mobile, and two
could be prepared to ditch plans to open to secure a foothold in this new market. non-telecom operators, Kandu Global
up its telecoms market to international However, the Ethiopian government has Telecommunications and Electromecha
investors, if it doesn’t get the financial since rowed back on that pledge, preferring International Projects.
package it is looking for. The prospective instead to offer a 40% stake in state-

Mobile Industry Ramps Calls for European Rule Overhaul

European Union (EU) regulators faced Sovereignty, Resilience and Trust, which into account the “changing competitive
growing calls for a regulatory revamp in sets out a series of measures required to landscape”, fair spectrum pricing and
the region, moving to policies which allow help the mobile industry support digital assignment policies, and encouragement
cost-effective deployment of 5G, drive aims and aid Europe’s economic recovery of network sharing deals. The GSMA also
development of the digital economy and in the wake of the Covid-19 (coronavirus) called for an internationally coordinated
cut inequality in access to technology. pandemic. In it, the association noted the approach to encourage an open-RAN
In separate statements, Telefonica and continent needed “a market environment ecosystem and an easing of logistical
industry association the GSMA added that encourages critical infrastructure complications for accessing sites for
to comments last week from ETNO and investment”, highlighting current policies infrastructure. To encourage a shift to
Ericsson Chief Borje Ekholm pointing to which had proven a stumbling block to 5G architecture, the GSMA pushed for
issues hampering Europe’s progress in investment. Among the recommendations measures to aid the creation and use
5G and highlighting risks to the digital were adoption of policies which don’t of interoperable mobile edge cloud
economy from outdated regulations. The undermine infrastructure investment, infrastructure.
GSMA published a document entitled improve merger review processes to take

Nepal Telecom Granted Mobile Money License

Nepali Digital Payment Company, a joint ported. Nepal’s central bank approved the use their mobile balance for digital trans-
venture created by state-owned telecoms license application submitted in January actions such as money transfers and bill
provider Nepal Telecom (NT) and Rastriya 2021 following an assessment of the com- payment. The service, which is expected to
Banijya Bank, has received authorization pany’s systems. Nepali Digital Payment be launched in the coming weeks, will be
from Nepal Rasta Bank to operate a mobile Company will use NT’s mobile number particularly useful for NT’s customers in
money service, Nepalitelecom.com has re- as a digital wallet, enabling customers to remote areas with no internet access.

107 FEB-MAR 2021