Page 103 - SAMENA Trends - June-August 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

CRTC Orders 3 Big Wireless Providers to Boost Competition to Lower Bills

Canada’s telecommunications regulator access to so-called Mobile Virtual Network with outdated information and insist their
ordered the dominant operators to take Operators (MVNOs), smaller outfits such prices are competitive. But in a concession
steps to increase competition in a market as Videotron in Quebec that can then to the majors, the CRTC said only MVNOs
that has some of the world’s highest billing resell the capacity at reduced retail prices with infrastructure or spectrum of their own
rates, although the measure fell short and pass on the savings to consumers. would be eligible, meaning that interested
of what some analysts had expected. The CRTC also said it expects Canada’s companies would have to be serious about
The move comes more than a year after three main wireless providers – Rogers making investments in physical or network
Prime Minister Justin Trudeau’s Liberal Communications Inc, BCE Inc , and Telus infrastructure. The access agreements will
government asked the telecoms companies Corp, as well as SaskTel in Saskatchewan, expire after seven years. Michael Geist, a
to cut bills by 25% or face consequences to offer $35 plans with set minimum law professor at the University of Ottawa
after high mobile bills became a hot button conditions, including unlimited cross- with expertise in Canadian telecoms,
issue in the 2019 elections. The Canadian Canada talk and text and 3GB of data. said the CRTC missed “the opportunity to
Radio-television and Telecommunications The three largest companies have 89.2% maximize new competitors.”
Commission (CRTC) said the telecoms of telecoms subscribers and 90.7% of the
firms should offer wholesale wireless revenue. They argue Ottawa is working

RCOM RP Warns that Failure to Renew Licenses Will End Resolution Process

The resolution professional (RP) managing later this month, the Economic Times of RCOM’s request to renew its licenses,
the bankruptcy proceedings for telco reports. According to the RP, Deloitte, the with the ministry instructing the provider
Reliance Communications (RCOM) has expiry of the concessions would leave to first clear its Adjusted Gross Revenue
warned that the insolvency resolution RCOM with nothing to sell and as a result, (AGR)-related dues, totaling some INR260
process will collapse if the Department of its 53 lenders would not be able to recover billion (USD3.5 billion).
Telecommunications (DoT) does not renew any of their funds. The development
the provider’s licenses when they expire follows on the heels of the DoT’s rejection

Verizon Sells Yahoo Japan License for $1.6 Billion

Verizon Media agreed a sale of its Yahoo Japan license to Z fee to use the brand. Purchasing the moniker outright will provide
Holdings, a unit of Japanese conglomerate SoftBank Group, the Japanese company with greater flexibility around its operation
a move expected to net the US company around $1.6 billion as of the subsidiary, the companies stated. Verizon will gain roughly
it cashes in media assets to fund its core business. Z Holdings $1.6 billion, apparently in addition to the $5 billion it is set to
owns Yahoo Japan and currently pays Verizon Media a licensing get from the sale of Verizon Media to affiliates of Apollo Global
Management. The transaction is set to close later this year. Z
Holdings and Verizon explained their respective units will maintain
a “cooperative business and technology relationship”, which will
include “ongoing technical support during a post-transaction
services period”. SoftBank bought a controlling interest in Yahoo
Japan in 2018, two years after Verizon agreed to buy the search
engine and web portal. Verizon subsequently combined Yahoo
with AOL to form a media unit called Oath. Now the entire media
business is known as Verizon Media. For SoftBank, the move to
take full control of Yahoo! follows a string of asset sales. Like
Verizon, SoftBank has been working to reduce its debt, but recently
indicated a readiness to invest in new ventures including plans to
launch a satellite-connectivity service with partners OneWeb and
Skylo Technologies.

103 JUN-AUG 2021