Page 69 - SAMENA Trends - January 2022

WHOLESALE UPDATES SAMENA TRENDS

GCRA Launches Wholesale Leased Line Price Control Consultation

The Guernsey Competition and Regulatory Authority (GCRA) has to reduce the Bailiwick’s ability to compete in this key economic
launched a consultation on price control for wholesale on-island sector with major offshore competitors, such as Jersey and the
leased lines and is seeking comments on the matter by a deadline Isle of Man. Meanwhile, the regulator has also suggested that
of 11 February 2022. In publishing its consultation paper, the excessive wholesale pricing of VHB leased lines also impacts
GCRA said that it was of the opinion that the prices for ‘very-high the provision of cost-effective backhaul solutions for current
bandwidth’ (‘VHB’) retail leased lines – i.e. those offering speeds generation mobile network operators, while arguing it could
of 1Gbps and above – were ‘significantly higher than comparable constrain the future cost-effective rollout of 5G infrastructure.
jurisdictions and are excessive’. Further, the regulator suggested With the non-statutory consultation paper setting out the GCRA’s
that wholesale prices charged by Sure – which it said is dominant preliminary views on an alternative pricing approach for Sure’s
in the wholesale market – exhibited a similar pattern. According on-island wholesale leased lines, it said this would replace the
to the GCRA, with the financial services sector being a significant retail-minus mechanism for VHB products with a benchmarked
user of VHB leased lines, excessive retail prices have the potential price cap that would ‘reduce wholesale prices substantially’.

Virgin Media O2 Stands by Free EU Roaming Policy

UK operator Virgin Media O2 pledged to retain free roaming for its rank and disrupt the market.” “This move could hit 3 UK hardest,”
customers travelling within the European Union (EU), making it the Mann added. “It was the first to begin to phase out roaming in
only one of the country’s major service providers not planning to 2013 and has assertively promoted its Go Roam offer as it looked
reintroduce the charge. In a statement, the company confirmed it to differentiate by overcoming common customer pain points. If
was sticking with its position of providing free roaming in the EU, it goes ahead with plans to bring back roaming in May, it risks
a policy initially adopted by all four of the UK’s operators in the undoing much of this effort.” Prior to the UK’s departure from the
immediate aftermath of Brexit. Vodafone UK, EE and 3 UK have EU its operators were bound by legislation banning surcharges for
since backtracked and plan to impose fees later this year. During roaming within the economic bloc.
2021, as rivals one-by-one revealed intentions to revive the charge,
Virgin Media O2 stayed tight-lipped. It did, however announce a
related fair usage cap. Virgin Media O2 noted its analysis of rates
planed by rivals suggested a family of four could be charged more
than £100 in fees. The operator said the latest pledge was part of its
ambition to be the “biggest telecoms challenger in the market”, an
aim outlined on its formation from a merger of Telefonica’s mobile
operation O2 UK and Liberty Global fixed provider Virgin Mobile.
CCS Insight director Kester Mann commented Virgin Media O2
had “blown the roaming door wide open” and “its decision to hold
firm will raise eyebrows across the sector and is a blow to rivals.
As EE, Vodafone and then 3 each confirmed they would reinstate
the dreaded fees, it left the door ajar for Virgin Media O2 to break

Andean Roaming Agreement Takes Effect

International roaming charges for travelers back on 18 February 2020. Decision 854 from this year. According to TeleSemana,
moving between Bolivia, Colombia, of the Andean Community (Comunidad however, roaming charges have only been
Ecuador and Peru were scrapped on 1 Andina, CAN) saw the member states agree abandoned for users with post-paid mobile
January 2022, as per an agreement signed not to charge additional fees for roaming subscriptions.

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