Page 103 - SAMENA Trends - January 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

and regulatory framework for the telecoms sector, may be postponed or slowed down in some countries.
while provision was made in the following year to set On the consumer side, spending on telecoms services
up a regulatory authority to oversee the telecom sector. and devices is under pressure from the financial
More recently, three types of licenses were mandated effect of large-scale job losses and the consequent
to provide clarity to operators, and to bring the market restriction on disposable incomes. However, the
closer into line with international standards. All crucial nature of telecom services, both for general
operators were given until August 2020 to secure one communication as well as a tool for home-working,
of the three license types. Despite the many inherent will offset such pressures. In many markets the net
difficulties faced in the country, the telecom market effect should be a steady though reduced increased in
has flourished. Tariffs are among the lowest in Africa, subscriber growth. Although it is challenging to predict
and new cable systems coming on stream in the next and interpret the long-term impacts of the crisis as
few years (providing additional connectivity to Asia and it develops, these have been acknowledged in the
Europe) will lead to downward pressure on retail pricing. industry forecasts contained in this report. The report
BuddeComm notes that the outbreak of the pandemic also covers the responses of the telecom operators as
continues to have a significant impact on production well as government agencies and regulators as they
and supply chains globally. During the coming year react to the crisis to ensure that citizens can continue
the telecoms sector to various degrees is likely to to make optimum use of telecom services. This can
experience a downturn in mobile device production, be reflected in subsidy schemes and the promotion of
while it may also be difficult for network operators to tele-health and tele-education, among other solutions.
manage workflows when maintaining and upgrading (January 18, 2022) developingtelecoms.com
existing infrastructure. Overall progress towards 5G

A much-delayed auction of 4G and 5G spectrum play despite the application process proceeding. ICASA
in South Africa attracted broad support, with chair Keabetswe Modimoeng urged operators to allow
communications regulator ICASA revealing it received the latest process to be completed. “Ultimately, public
applications from six operators. ICASA stated the local interest should prevail, as this process will yield positive
South units of MTN and Vodacom were among the bidders, spinoffs for the industry and society at large.” Telkom
along with Cell C, Telkom South Africa, Rain Network
South Africa appears to have dropped plans for a court
Africa and Liquid Telecom. The regulator will announce challenge to the auction process, but is said to remain
which have qualified to participate on 21 February keen on a legal review of its arguments, proposing this
2022. Spectrum in the 700MHz, 800MHz, 2.6GHz happen early in March. Last month the operator’s group
and 3.5GHz frequencies are up for grabs to boost 4G executive for regulatory and government relations
and 5G deployments in the nation. The auction was Siyabonga Mahlangu stated Telkom was “pleased with
originally scheduled for March 2021 but was put on ice the cooperation it has received from the parties”.
following legal challenges which appear to still be in (January 31, 2022) mobileworldlive.com

The Science and ICT Minister Lim Hye-sook has said that LG Uplus is at a relative advantage as the spectrum
she will meet with the nation’s three mobile network block to be sold is adjacent to frequencies already held
operators (MNOs) – SK Telecom (SKT), KT Corp and LG by the smaller player – meaning it will cost LG Uplus
Uplus – to discuss plans for the sale of additional 5G less to utilize it. As a result, earlier this week SKT
spectrum, Yonhap News Agency reports. Last month filed a request to the MSIT for an additional 40MHz of
South Korea the Ministry of Science and ICT (MSIT) announced it spectrum to be made available, citing the need for fair

would open bidding for a 20MHz block of spectrum competition among the three cellcos. Commenting on
in the 3.5GHz band (3.40GHz-3.42GHz), following a the matter, Lin was cited as saying: ‘It remains unclear
request by LG Uplus, before subsequently confirming whether the auction will open next month … I will meet
the new frequencies would be priced at KRW135.5 the CEOs of the three telecom operators next month to
billion (USD114 million). However, both SKT and KT request their cooperation, as well as to convince them
have complained about the ministry’s decision, arguing and listen to their opinions.’ (January 27, 2022) commsupdate.com

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