Page 111 - SAMENA Trends - Jan-Mar 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

European Commission Approves Orange–MásMóvil Merger

After an in-depth investigation was opened
into the potential transaction in April
last year, the European Commission has
approved the creation of a 50:50 joint
venture (JV) between France’s Orange and
Spain’s MásMóvil. The JV’s approval was
conditional on Romania’s Digi (the largest
MVNO in Spain) acquiring spectrum from
MásMóvil in order to become a new fourth
mobile operator. The initial investigation
was concerned that the transaction would
restrict market competition by creating
the largest operator in Spain in terms of
customers and reducing the number of
players in the market from four to three.
To combat these concerns, Digi, which
also has operations in Portugal, Italy, and
Belgium, finalized a spectrum transfer
agreement with the two Spanish firms in
December last year, worth €120 million. The
spectrum acquired is set to be 2x10MHz
in the 1,800MHz band, 2x10MHz in the parties will enable Digi, the largest and Consumer and Connectivity at CCS Insight,
2.1GHz band, and 20MHz in the 3.5GHz fastest-growing mobile virtual network warned that the deal’s approval will mean
band. As a result of this, Digi can take operator in Spain, to replicate the strong the spotlight is turned towards Vodafone
the place of a fourth MNO in the Spanish competitive pressure exerted by MásMóvil,” and Three in the UK. “Both parties will hope
market, providing a solution to the market’s EU antitrust chief Margrethe Vestager that the news represents a shift in position
competition problem. Orange CEO Christel said in the announcement’s press release. from the region’s regulators as they seek
Heydemann has emphasized that the deal “They will ensure that consumers in Spain approval to combine,” he said in a LinkedIn
will allow increased scale, innovation, continue to benefit from a competitive post, but warned that the UK Competition
and investment in Spain as a result of the telecom market, in terms of prices, quality and Markets Authority will not be won over
“stronger and more sustainable” unified and 5G connectivity,” she continued. easily.
player. “The commitments offered by the However, Kester Mann, Director of

Ofcom Probes Virgin Media Over Landline Migration

Across the UK – and, indeed, across many to review their processes. Ofcom has gone smoothly and are following best practices.
parts of the world – steps are being taken one step further, launching an investigation “Last December we signed a Government-
to migrate customers away from traditional into Virgin Media to examine whether they led charter and have paused all landline
analogue landlines to IP-based digital have been treating vulnerable customers migrations, carried out an end-to-end
landline services. While for the vast majority appropriately. “This investigation relates to review and will make further improvements
of customers this process will cause little concerns about Virgin Media’s compliance to the measures we already have in place
disruption, for a number of vulnerable with two areas,” explained the regulator before switchovers restart,” said the
customers who rely more heavily on the in a statement. “First, our rules require company in a statement. “While telecoms
older system, the switch could be more that Virgin Media must take all necessary companies like us have a crucial role to play
problematic. Perhaps the largest issue is measures to ensure uninterrupted access in this switchover activity, it’s essential that
related to IP-based services reliance on a to emergency organizations. Second, telecare companies and local authorities
consistent power supply; if power supply our rules also require that Virgin Media also step up and meet their responsibilities
is disrupted, such as during a storm, this establish and comply with effective policies to ensure everyone receives the support
can leave customers unable to contact and procedures for the fair and appropriate they need. We’re cooperating fully with the
emergency services. Concerns related to treatment of vulnerable consumers.” Virgin regulator’s investigation and will continue
these issues saw Ofcom call on operators to Media defended itself, saying it has been to work closely with the rest of the industry
pause their landline migration process back working with Ofcom and the government and other parties.”
in December last year, asking the operators to ensure the switch-over takes place

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