Page 70 - SAMENA Trends - January 2021

WHOLESALE UPDATES SAMENA TRENDS

UK Outlines Wholesale Worries of Liberty, Telefonica JV

The UK’s competition authority set out the scope of a probe into the of its detailed investigation into the deal between Liberty Global-
proposed merger of O2 UK with fixed provider Virgin Media, with a owned Virgin Media and Telefonica’s O2 UK announced in May
focus on the impact on MVNOs and provision of fiber backhaul. In 2020. One of the main potential sticking points cited by the CMA
a consultation document released yesterday (21 January), the UK was the position of Virgin Media as the second largest provider
Competition and Markets Authority (CMA) outlined the full extent of fiber backhaul to the country’s mobile operators behind BT’s
Openreach. The regulator said there were concerns the new
business would have the incentive and ability to alter agreements
with other MNOs, including upping prices, changing terms or
reducing service quality. Regarding the MVNO market, it will
investigate similar risks of O2 changing terms or cutting supply of
wholesale mobile services, and how these actions would change
the competitive outlook for virtual operators and consumers. The
CMA does not plan to look into the direct impact on consumers of
O2 and MVNO Virgin Mobile being owned by the same business.
“Evidence we have seen to date suggests that Virgin Mobile has
a low and declining market share at the retail level.” “We have
also seen evidence that suggests that O2 and Virgin Mobile are
not close competitors, in particular Virgin focuses on attracting
mobile customers by cross-selling its mobile offering as an add-
on to its fixed services.”

Italy Inches Closer to National Wholesale Broadband Provider

Italy's competition authority, the Autorità dominated by Telecom Italia. Telecom intends to acquire a stake of 40% to 50%
Garante della Concorrenza e del Mercato Italia currently own FiberCop outright, but in Open Fiber from Enel, the Italian energy
(AGCM), has said that while the proposed the plan is for private equity firm KKR to firm. The Turin-based, state-backed
FiberCop last-mile network grid was a acquire a 37.5% stake, and Fastweb a Italian investment bank Cassa Depositi e
"strategic objective" for Italy, it wants to 4.5% holding. Enter Macquarie To add Prestiti (CDP) owns the rest. Macquarie is
ensure "healthy, dynamic competition." to the protracted wrangling between expected to transfer some of its stake in
Hence it is investigating the agreements so many parties, Australia’s Macquarie Open Fiber to the FiberCop joint venture.
that have been put in place to create the
FiberCop network after long negotiation,
and the supply agreements with Fastweb
and Tiscali. FiberCop is the proposed joint
venture for Telecom Italia’s fixed network
assets as well as those of Flash Fiber
– the joint between Telecom Italia and
Fastweb, which is owned by Swisscom.
Italy’s government has been pushing for
a single national company to provide
wholesale fiber broadband infrastructure
for a considerable time, by pulling all the
retail fiber assets together and combining
them with those of wholesale fibre provider
Open Fiber. Assuming the plan receives all
the necessary approvals, AccessCo will be
formed, but there is determination among
the relevant authorities that it will not be

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