Page 102 - SAMENA Trends - July-August 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

Ergen Considering DISH-EchoStar Merger

US businessman Charlie Ergen is considering merging the two with the matter. As per the article, the companies have engaged ad-
halves of his communications empire, DISH Network and EchoStar visors, but the timeline and structure of the proposed deal remain
Corp, US publication Semafor has reported, citing people familiar unclear. EchoStar Communications, which was founded by Ergen
as a satellite television equipment distributor in 1980, changed its
name to DISH Network in January 2008 and spun off its technol-
ogy arm as a new company, named EchoStar Corp. EchoStar is
financially stronger than DISH, which has weathered heavy sub-
scriber losses in the pay-TV sector in recent years, and is investing
substantially in the deployment of a nationwide 5G network.

ATH Group Completes Leveraged Buyout of ICT Businesses Via Vodafone

Fiji

Fiji-based telecommunications holding company Amalgamated a strong track record of delivering cutting-edge solutions to a
Telecom Holdings (ATH) has purchased the remaining 49% diverse clientele in the Pacific’ and the acquisition would allow it to
stakes it did not already own in Digitec ICT (based in Papua New capitalise on those skills, tap into new market segments and drive
Guinea), ETech ICT in Singapore and ETech ICT in Australia. The revenue growth. ‘This strategic acquisition aligns with ATH Group’s
transaction was carried out through its 51%-owned Vodafone long-term vision of providing end-to-end telecommunications and
Fiji mobile subsidiary in the form of a 100% leveraged buyout, ICT solutions that empower businesses, government agencies,
funded through a structured debt financing arrangement with institutions, individuals, etc. and accelerate economic growth and
Bank of South Pacific, PNG. In a brief announcement on the South social development in the Pacific region,’ ATH stated.
Pacific Stock Exchange (SPX), ATH noted the three ICT firms ‘have

CPC Approves Vivacom’s Acquisition of Seven Operators; NetWorx Seeks

Renegotiation of Deal

Bulgaria’s Commission for the Protection of Competition (CPC) proposed acquisition of Bulsatcom’s infrastructure by Slovenia
has approved Vivacom’s acquisition of seven fixed broadband Broadband, which is 100% owned by United Group. If this proposed
and TV operators. The list of operators includes Ruse-based acquisition is approved, it would lead to a total concentration of
NetWorx Group – comprising Networks-Bulgaria, Online Direct, the whole national market and infrastructure power far exceeding
TVN Distribution Bulgaria and Telko Infrastructures – and Veliko the normal thresholds acknowledged in all other EU markets.’ PPF
Turnovo-based TELNET Group, which comprises TELNET, TELNET Telecom concludes by urging all relevant authorities to review the
Securities and STV. The CPC controversially approved the deals proposed transactions. It also says it intends to raise these matters
despite Vivacom becoming the largest fixed broadband/TV with the EC. Elsewhere, the owner of NеtWоrх, Ѕvіlеn Маkѕіmоv,
provider on a national level and in the Veliko Turnovo, Gabrovo and has disclosed to local news source Ruse News that the binding
Ruse regions. In December 2022 the Supreme Administrative Court terms of the contract with Vivacom have expired, so in order for
(SAC) annulled the antimonopoly regulator’s previous approval of the acquisition to go through, the terms and conditions need to be
Vivacom’s acquisition of NetWorx Bulgaria due to concentration renegotiated. Maksimov said: ‘Тhе dеаl nееdѕ tо bе rеnеgоtіаtеd
concerns, and in February 2023 the Communications Regulation fоr ѕеvеrаl rеаѕоnѕ. Fіrѕt, mоrе than two уеаrѕ hаvе раѕѕеd.
Commission (CRC) launched an in-depth investigation into several Ѕесоnd, іnflаtіоn. Тhіrd, thе іnсrеаѕеd ЕВІТDА оf thе соmраnу.’
deals via which Vivacom secured direct sole control over NetWorx,
TVN Distribution Bulgaria, Telko Infrastructures and indirect
control over Online Direct. A1 and Yettel have voiced their concerns
over the latest decision, with both operators disclosing that the
approval ‘shows blatant disregard for recent European rulings’ and
will lead to ‘a huge concentration of market share and power in
the hands of Vivacom and its owner United Group’. Yettel’s owner
PPF Telecom said in a press release: ‘CPC decision-making has
raised our concerns with regard to its forthcoming review of the
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