Page 126 - SAMENA Trends - February 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

Regulator Clarifies Reports on ‘Strained Relations’ with Vodacom

The Lesotho Communications Authority matter is currently pending before the terms of its operating licence. As such, the
(LCA) has released a statement clarifying High Court. In a separate matter, the LCA is watchdog has requested that Vodacom
recent local media reports ‘alluding to also accusing Vodafone of failing to meet provide written reasons within 90 days for
strained relations’ with telecoms operator Universal Service Fund (USF) obligations why its concession should not be revoked.
Vodacom Lesotho. Firstly, in August 2019 to provide a total of 150 schools with Additionally, the LCA accuses Vodacom
the regulator says it issued a penalty of internet access, and of not providing of failing to comply with tariff conditions.
LSL8.2 million (USD547,000) to Vodacom complete and accurate information Finally, the LCA clarifies that it is not aware
after it failed to pay regulatory fees due on regarding this obligation, despite several of, and has not issued any notice relating
or by 1 July 2019. The following November, requests to do so. Thirdly, the LCA says to, the alleged irregular acquisition of a
the LCA published a statement notifying that Vodacom has not appointed an 20% stake in Vodacom by Sekhametsi and
the public of the penalty, although the independent auditor, as required under the ‘distances itself from such allegations’.

Brazilian Telecoms Regulator Discusses 5G Auction Rules

spectrum later this year. The consultation attract opportunities to the Latin market.
will last for 45 days and will set the specific Over the last few months, the telecoms
details of the auction. A draft version of the sector has been considering the possibility
rules had been approved by Anatel’s board of delaying the 5G auction as a result from
earlier this month. In a recent interview pressure from the United States. The US
with Reuters, Nokia’s CTO in Latin America, wants to prevent Chinese businesses
Wilson Cardoso, described the event as such as Huawei from operating in the
“the world’s biggest-ever” auction of 5G 5G markets of its allies, including Brazil.
suitable frequencies. The auction was However, the Brazilian government doesn’t
originally scheduled to be held in March, seem willing to oblige. Last year, Brazil’s
but it was then delayed to at least the end vice-president Hamilton Mourao said the
of the year - it is now likely that will take country would not interfere in Huawei’s
place in November. Such delays could activities. According to Mourao, Brazil
cost Brazil billions in lost tax revenues as wants the Chinese giant to invest in local
Brazilian telecoms regulator Anatel has well as investments: vendors like Ericsson infrastructure, as long it creates local jobs
launched a public consultation to discuss and Nokia have shown interest in the and plays by the government’s rules.
the rules of what could be the world’s largest country’s coveted 5G spectrum and have
single auction for fifth-generation (5G) announced plans to invest heavily and

Attorney General Opens Investigation into Spectrum Auction

The Attorney General’s Office has opened Partners, the Icelandic-owned, London- by TeleGeography’s CommsUpdate,
a disciplinary investigation into a senior based owner of Chilean upstart operator Partners botched its bid for 2500MHz
Ministry of Information Technologies and WOM – complied with conditions for spectrum and mistakenly entered a bid
Communications official regarding the objectivity and transparency. The Attorney of COP1.748 trillion (USD534.2 million)
handling of the recent spectrum auction, General is also looking to clarify the amount for Block 2 in the band, well ahead of its
in particular the ‘alleged inconsistencies that the government would obtain from the bids for Block 5 (COP293.2 billion) and
in the Partners selection process’. As part December 2019 sale. In a statement, the Block 6 (COP173.5 billion). The company
of the process, the office has requested investigator noted that the MinTIC official asked that the erroneous bid be withdrawn
that the ministry temporarily suspend the was accused of allowing capital funds such and although MinTIC stated that it would
granting of spectrum rights until it can as Novator to participate in the auction consider the request it has yet to reach a
determine whether newcomer Partners under more flexible conditions than other decision on the matter.
– the bidding vehicle used by Novator interested parties. As previously reported

126 FEBRUARY 2020