Page 143 - SAMENA Trends - February-March 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

stakeholders’ workshop on MVNO for the purpose of feasibility, market demand and appropriate model for
collectively examining the potential benefits, technical MVNO adoption in Nigeria. (February 7, 2021) tribuneonlineng.com

The National Communications Authority (NKOM) in the 2.6GHz band, with a NOK50 million minimum
has confirmed plans for an auction of 5G-suitable to be set for the 1×50MHz TDD block in that same
spectrum this September, and is now consulting on the band. Meanwhile, the NKOM has proposed a minimum
proposed rules for the sale process. In a press release, charge of NOK25 million for each 1×10MHz block in the
Norway the NKOM confirmed its intention to offer a total of 3.6GHz spectrum, with each 1×40MHz block to carry
590MHz across the 2.6GHz and 3.6GHz bands. In the
a reserve price of NOK100 million. Frequency caps
former band, the NKOM intends to offer 2×70MHz of have also been suggested, with the NKOM indicating
FDD spectrum, divided into 14 2×5MHz lots, alongside it will cap 2.6GHz allocations at 80MHz to ensure there
a 1×50MHz TDD block. Meanwhile, in the 3.6GHz are at least three winners of frequencies in that band,
band (3400MHz-3800MHz) a total of 400MHz will while 3.6GHz allocations will be capped at 120MHz,
be allocated, divided into four 40MHz blocks and 24 to ensure four winning bidders. A deadline of 9 April
10MHz blocks. In terms of proposed pricing, the NKOM 2021 has been set for interested parties to submit their
has put forward plans for a minimum charge of NOK25 feedback on the plans to the NKOM.
million (USD3 million) for each 2×5MHz FDD block (February 8, 2021) commsupdate.com

The Ministry of Transport and Communications (MTC) the alteration of the license to end the contract and
has initiated a resolution procedure to determine a finally a termination of the contract without altering
course of action regarding the concession to manage the the license. With the two parties seemingly unable to
National Fiber Optic Backbone (Red Dorsal Nacional de find an acceptable solution, the MTC has launched a
Peru Fibra Optica or RDNFO) project. In a statement, the MTC unilateral resolution process, via public consultation.
noted that it had been involved in detailed negotiations
A public hearing is set to take place in May this year,
with the current license holder, Azteca Comunicaciones, with the MTC to reach a decision on the matter in July.
since 2018 over potential ways to reform the project In a related development, meanwhile, the ministry also
to better capitalize on the infrastructure. As noted by announced that it had won an arbitration case against
TeleGeography’s GlobalComms Database, Azteca Azteca regarding elements of the RDNFO project. The
was awarded the contract to install and operate the arbitrating tribunal accepted the MTC’s position that
13,500km fiber backbone network in 2014 but shortly Azteca is contractually obliged to acquire the land on
after its completion in mid-2016 it became apparent which the nodes of the RDNFO are built. Azteca was
that the network was severely underutilized. According also required to cover 100% of the arbitration expenses.
to the MTC’s most recent statement only 3.2% of the (March 18, 2021) commsupdate.com
installed capacity on the network was being used, and
generated income to cover just 7.7% of its costs. The The Ministry of Transport and Communications
ministry went on to note that the government had spent (Ministerio de Transportes y Comunicaciones, MTC)
USD265 million on the project in initial investment has authorized full-service providers Claro and Entel –
and maintenance and operating fees, equivalent to including its Americatel division – to use their 3.5GHz
roughly USD166 million more than had initially been spectrum holdings for fixed-wireless internet services
estimated during the planning phase of the project. using 5G New Radio (NR) technology. The ministry also
The problem was blamed on pricing issues, with rates noted that it has completed the planning stage for a
charged for bandwidth being maintained at historic new competition for spectrum in the 3.5GHz and 26GHz
rates rather than adapting to reflect market changes. bands, and revealed that it will publish the mechanism
Due to the structure of the management license and for the tender and a timeline for the auction later this
its related legislation, however, an amendment to the month. Commenting on the development, Telecom
law was required (and eventually passed in January Minister Eduardo Gonzalez was quoted as saying: ‘It
2020) to enable the management company to charge is important to promote the initial deployment of 5G
more flexible rates. Rather than continue under the technology, even more so as in the last year internet
amended structure though, Azteca instead requested data traffic grew more than 60% on the fixed network.
that it be released from the contract, which is currently Users demand more speed at lower prices, and the way
set to expire in 2034. The MTC claims that, over the to achieve this will be with 5G. This first stage will allow
course of two years of negotiations with the company, us to test the technology.’ The official went on to add
discussions shifted from a potential amendment of that the accelerated introduction of 5G technology is
the contract to optimize utilization of the network, to considered essential to the nation’s economic recovery.

143 FEB-MAR 2021