Page 116 - SAMENA Trends - Jan-Mar 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

Polish Regulator Says Nobody Wants 26GHz

Poland’s regulator the Office of Electronic Communications (UKE) NatCo paid PLN 497m (€112m) for ‘Block D’, offering spectrum
has issued industry communication to explain why the country’s in the 3.7GHz–3.8GHz frequency range. Network-sharing partner
26GHz band – slated for use in 5G networks – has not yet seen Orange Poland paid PLN 487m for Block C in the 3.6GHz–3.7GHz
an auction or distribution, essentially saying there was low market range. Polkomtel’s Plus, won Block A (3.4GHz–3.5GHz) and
interest in this band and 42GHz. UKE first consulted on 26GHz way Iliad-owned P4 (Play) won Block B (3.5GHz–3.6GHz). The 24.25-
back in July 2020 as part of the National Broadband Plan and the 27.5 GHz frequency band was rated as one of the “pioneering
26 GHz band was meant to be distributed by 31 December 2022. frequency bands” for 5G by the EU Commission Implementing
To be fair even that slippage was not the worst given the 3.6GHz Decision No. 2019/784 of 14 May 2019 on the harmonization of
bands were meant to be distributed by 30 July 2020. In response to this band for terrestrial systems. In its 2020 consultation, UKE
the 26GHz consultation most telcos recommended that the band found “significant limitations in the availability of the required
should be allocated no earlier than in 2022-2023. According to systems and equipment for the commercial launch of services,
CMS Law, most recently, in response to a parliamentary question and therefore the impossibility of ensuring the principle of
(4 January 2023), the Secretary of State for Digitalization indicated competitiveness.” Now UKE is once more asking the industry to
that “Regarding this band (26GHz), there is currently no demand suggest a new deadline for commercial services in 26GHz – in the
from entities operating in Poland, and full use of these frequencies light of the current availability of systems and equipment – plus
is envisaged after 2023.” UKE has now confirmed the lack of what services and where do the operators want to deploy. The
demand. No doubt the Poles watched South Korea closely after the regulator also asks whether the entire part of the band available
government cancelled SK Telecom’s 28GHz license, citing a lack to “civilian users”, i.e. the 24.3-27.3GHz range, be allocated at
of investment. The telco had been given the right to use the 28GHz once. UKE has also asked the operators their intentions for 42GHz
band in 2018 and was required to install a total of 15,000 units of currently allocated to fixed service point-to-multipoint (PMP). “he
network equipment by May last year – it managed under 2000 and World Radiocommunication Conference WRC-19 has identified
told the government it had no plans for more. The move followed the 40.5–43.5GHz frequency band on a global scale for IMT family
the government cancelling all local operator 28GHz licenses in systems. In March 2020, CEPT decided to develop a new ECC
January 2023. SKT was given the six-month challenge but didn’t Decision on the harmonization of the 40.5-43.5GHz frequency
make the mid-year deadline. The South Korean government said band for terrestrial systems enabling the provision of wireless
it is currently seeking new operators for the 28 GHz band. Last broadband communications services. The regulator wrapped up
October UKE successfully concluded its auction of 5G-capable the communique be asking the operators whether it needs to start
3.5GHz licenses following an intensive process spanning two work on making other frequency bands available for IMT-2020
days and 16 rounds of competitive bidding. The auction covered purposes, and if so, which ones? Operators have until 16 February
four licenses, each granting access to a 100MHz of spectrum to respond to UKE.
falling within 3.4GHz to 3.8GHz. Deutsche Telekom’s Polish

Xavier Niel’s NJJ to Buy Turkcell’s Ukraine Unit

NJJ Capital, the investment company Iliad, given the large amount of roaming
owned by French billionaire Xavier Niel, traffic between the two countries. For
has agreed to buy Turkcell’s Ukrainian Lifecell in particular, Niel noted that the
operations, including mobile operator sale was relatively cheap, saying “it’s
Lifecell, for at least $500 million. The an asset we’re not paying very much for
agreement was initially signed in December compared to its profits”. The final price
when Turkcell agreed to transfer over all for the acquisition will not be revealed
shares in the businesses to NJJ for an until the deal has closed, but it should be
undisclosed price. At the time, the three at least $500 million, according to an NJJ
business units – mobile operator Lifecell, spokesperson. The deal is still subject to his intention to sell off the unit last summer.
contact center specialist Global Bilgi, and regulatory checks, including the go-ahead The unit has attracted a number of potential
telecoms tower firm Ukrtower – were from the Ukrainian competition authority. buyers, including Saudi-based STC and
valued at UAH 12.7 billion ($335.5 million), Niel appears to have started this year with a others who have asked not to be identified.
UAH 47.2 million ($1.2 million), and UAH renewed appetite for M&A, this month also –Three non-binding offers for the business
1.9 billion ($50 million), respectively. The showing an interest in purchasing Altice are thought to have been received. No
deal “makes sense”, according to Niel, due Portugal. The company is part of the Altice decisions have yet been made of yet and
in part to his existing telecoms operations Group and is owned by another French discussions remain ongoing.
in neighboring Poland through French telco billionaire, Patrick Drahi, who announced

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