Page 107 - SAMENA Trends - June-August 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

NKOM Advises ESA of Proposed Changes to Price Regulation of Telenor’s

Fiber-Based Services

Norway’s National Communications and gross margin tests of Telenor’s fiber- introduce a new requirement for the carrier
Authority (NKOM) has sent a draft decision based products in the retail market twice to document passed margin squeeze
on updated price regulation of access to a year, with a view to ensuring companies tests and gross margin tests before the
Telenor Norge’s fiber network to the EFTA buying wholesale access to the telco’s company can implement price changes
Surveillance Authority (ESA). Announcing fiber network do not suffer a margin or launch new fiber-based products in the
the development in a press release, the squeeze. As per the proposed changes retail market. According to the regulator,
regulator noted that with Telenor subject to put forward, the first will see the market this new requirement will prevent access
a requirement not to put buyers of access share that is assumed for an ‘efficient buyers from experiencing margin squeeze
in margin squeeze, it now intends to provider’ in the test reduced from 20% to in the period until NKOM carries out its next
revise the current regulation. Specifically, 15%, while the second will see a stricter margin squeeze test. With the ESA having
it has said it is proposing changes to requirement introduced for the gross one month to comment on the NKOM’s
the principles of margin squeeze testing margin for individual fiber products offered proposals, the Norwegian regulator has
for the telco’s Virtual Unbundled Local by Telenor to companies, so that the gross said that, once it receives any feedback, it
Access (VULA) fiber service. Currently, margin for these products shall be at will take this into account and then look to
the Nkom conducts margin squeeze tests least 40%. Meanwhile, the NKOM plans to issue a final decision.

US, UK Agree Tech Tie-Up Targeting 6G

The UK and US governments agreed to and use of technology globally”. They development collaboration. The majority
deepen ties in various areas of technology plan to concentrate on areas including the of industry players have indicated a
including collaborating on future resilience and security of critical supply commercial launch in 2030. In addition, the
development of 6G, as part of ambitions chains, battery technologies and AI, as well UK and US said they would work together
to lead the world in R&D, create jobs and as working to improve accessibility and to “realize the full potential of quantum
ensure security of citizens. Also included flow of data to support economic growth, technologies” in a bid to improve the
in the agreement is collaboration in safety and scientific and technological functionality and performance of devices.
scientific fields, while R&D goals will focus progress. A headline-grabbing section of UK Digital Secretary Oliver Dowden said the
on creating wealth, tackling inequality, their commitment included ambitions to agreement marks a new era of cooperation
and ensuring democratic values and open “develop proposals” on future technology with “our closest ally, in which we commit
societies. The deal was announced as such as 6G, and strengthen collaboration to using technology to create prosperity
US President Joe Biden visits the UK for on digital technical standards. Industry and guarantee the safety and security of
the annual G7 summit. Both nations aim murmurings around 6G continues to grow, our citizens for years to come”.
to ensure their values and open market with mobile technology organizations in
principles are embedded “in the design Japan and Finland the latest to agree a

Saudi Arabia Grants Digital Banking License to Two Firms

Saudi Arabia has granted digital banking Saudi Digital Bank. Saudi Telecom said
license to two firms as the use of finance it will inject additional 802 million riyals
technology spreads in the Middle East. (RM890.96mil) to retain its 85% in STC
STC Pay, launched by the kingdom’s Pay and Western Union will invest 750
biggest mobile operator Saudi Telecom million riyals (RM833.19mil) to own 15%
in 2018, will be converted into a digital of the firm. Western Union acquired the
bank with a capital of 2.5 billion riyals stake in STC Pay last year for US$200mil
(US$667mil or RM2.78bil), according to (RM833.3mil). The central bank also said
a central bank statement. It will be called licensed 16 Saudi fintech companies in the
STC Bank. A second firm, led by Abdul recent past will provide payment services,
Rahman Saad Al-Rashed & Sons Co, will consumer micro-finance and digital
form a digital bank with a capital of 1.5 insurance brokerage.
billion riyals (RM1.67bil). It will be called
107 JUN-AUG 2021