Page 69 - SAMENA Trends - January 2021

WHOLESALE UPDATES SAMENA TRENDS

WHOLESALE NEWS

JCRA Consults on Proposed Price Control
for Wholesale Broadband Access Services

Feedback on a draft decision related According to the regulator, the price
to a price review of wholesale control would be set so as promote
broadband access services has more effective competition, while at
been published by the Jersey the same time providing JT with ‘the
Competition Regulatory Authority opportunity to recover its efficiently
(JCRA), with the regulator having incurred costs plus an appropriate
proposed a price control on fixed return on investment’. Meanwhile,
line incumbent JT Jersey, set on the regulator noted that two different
a forward-looking basis. With JT pricing approaches have been
having previously been determined considered, saying that under both
to hold significant market power of these the proposed prices would
(SMP) in the sector in question, the be lower than the current price.
JCRA has claimed that a proposed Submissions to the consultation
price control ‘is consistent with have been requested by a deadline
generally accepted principles and of 24 March 2021.
applied proportionately to Jersey’.

Italy’s CDP Asks for More Time to Study Open Fiber Share Sale

The Italian state-backed investment EUR2.65 billion (USD3.2 billion). CDP has for CDP to take at least part of the Enel
fund Cassa Depositi e Prestiti (CDP) first right of refusal on any share sale and stake, possibly raising its interest to 60%
has requested further time to conduct was given 30 days to make up its mind to give it control of Open Fiber, which is
negotiations regarding the sale of a stake from the date of Enel’s confirmation of its seen as a strategic national asset, leaving
in national wholesale network operator plans to sell, which came on 23 December Macquarie to acquire the remaining 40%.
Open Fiber, in which it holds a 50% 2020. A report from Reuters says that There are also negotiations ongoing which
interest. Its co-shareholder, utility group CDP has requested an extension to 25 would see Open Fiber combined with the
Enel, is looking to sell all or part of its 50% February while it continues to study the broadband networks business of Telecom
stake to Australian infrastructure fund situation. There have been rumors that Italia (TIM), which also counts CDP as a
Macquarie, with the 50% holding valued at some sections of the government are keen shareholder.

MoC Fines HOT Over Failure to Comply with Wholesale Market Provisions

Israel’s Ministry of Communications (MoC) allow for normal wholesale market activity HOT began providing such access only
has fined HOT Telecom ILS6 million (USD1.8 on its network, in a manner that, in effect, during 2018, while the regulator claimed
million) for failing to properly comply with led to the exclusion of competitors from that even after doing so, ‘complications
the provisions of the country’s wholesale its network and to the deterrence of the that did not enable service providers to
market reform. In a press release regarding development of competition’. According provide proper services to consumers,
the matter, the watchdog said that it had to the MoC, while regulated tariffs for were detected’.
found ‘HOT Telecom’s conduct did not wholesale services were set during 2017,

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