Page 142 - SAMENA Trends - June-August 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

at 2:00 pm, the deadline for receiving proposals. in turn holds 100% of InfraCo. According to the FNE’s
Further information on the contest can be downloaded report, InfraCo will build, operate and sell infrastructure
from the SUBTEL website. It’s worth pointing out, as and provide wholesale services. The regulator found
TeleGeography's CommsUpdate does, that the Fibra that the sale would not lead to a concentration of market
Optica Tarapaca (FOT) network is not to be confused power as KKR does not have an existing presence in
with Chile’s nationwide Fibra Optica Nacional (FON) any of the affected markets. Further, the FNE noted
project and the Fibra Optica Austral (FOA) southern that without the transaction Movistar would continue
fiber plan. There’s also the fiber optic in border to hold exclusive control over the network, whilst the
complexes (FOCF) project, which is expected to take sale would promote the use of the infrastructure by
fiber connection to 12 border posts by March 2024. other players, expanding the capabilities of existing
(July 24, 2021) developingtelecoms.com providers and facilitating the entry of new providers
into the broadband market. The regulator went on:
Chilean antitrust watchdog the National Economic ‘In this way, the [transaction] would contribute to the
Prosecutor’s Office (Fiscalia Nacional Economica, FNE) opening of certain geographical areas in favor of other
has greenlit the acquisition of a 60% stake in Movistar actors present in Chile, thus enhancing the conditions
Chile’s fiber-optic infrastructure subsidiary InfraCo of competition in different local markets.’ Finally, the
by KKR Alameda Aggregator – part of international regulator noted that none of the industry stakeholders
investment firm KKR, Diario Financiero reports. Under consulted on the matter raised any potential concerns.
the planned deal, KKR Alameda would will acquire a 60% (June 21, 2021) commsupdate.com
stake in a holding company – InfraCo Holdco – which

The Colombian government is optimistic of staging its The National Spectrum Agency (Agencia Nacional del
auction of 5G-suitable 3.5GHz spectrum by December Espectro, ANE) has fined Avantel for using frequencies
2021, officials have indicated. Terms and conditions assigned to its sister company, Telecom Partners
remain under review, although it is anticipated that the Colombia (WOM), without prior permission. The offence
Colombia government will apply rural coverage obligations on occurred in August 2020, and involved spectrum in the
the eventual license winners, as it did after the 700MHz 723MHz-733MHz/778MHz-788MHz band, as acquired
spectrum sale in December 2019. ICT minister Karen by WOM in December 2019’s multi-band spectrum
Abudinen told Portafolio: ‘We are reviewing the terms auction. According to the regulator’s press release, the
of reference for the 5G auction. We are still seeing what matter was brought to ANE’s attention by Comunicacion
those conditions may be, that operators who want to Celular Comcel (Claro) and Colombia Movil (Tigo), and
participate will have to meet, but our idea is that we duly investigated by the Technical Spectrum Control
can connect more homes, and more antennas will Group. Avantel has been fined COP10.6 billion (USD2.9
be installed.’ TeleGeography notes that the Ministry million) for the infraction. According to TeleGeography’s
of Information Technologies and Communications GlobalComms Database, in May 2021 WOM announced
(Ministerio de Tecnologias de la Informacion y las plans to stage a ‘merger by absorption’ of Avantel,
Comunicaciones, MinTIC) awarded the country’s major which had been acquired by Novator in July 2020.
players with temporary 3.5GHz licenses in early 2020, As the ‘largest and most financially sound company’,
and Claro, Tigo, Movistar and ETB all went on to stage WOM will assume all responsibilities to Avantel’s
successful 5G mobile trials in the ensuing twelve creditors and prioritize the payment of its legacy debts.
months. The regulator’s 2019 5G consultation also The merger process is expected to conclude within four
featured the 600MHz band and various millimeter wave months of being announced (i.e., by September 2021).
(mmWave) bands, starting with 24.25GHz-27.5GHz. (June 8, 2021) commsupdate.com
(June 25, 2021) commsupdate.com

Liberty Latin America (LLA) has announced that it has any anti-competitive effects. Movistar will be sold to
received authorization from Costa Rican President, LLA’s 80%-owned Cabletica ISP unit. Going forward,
Carlos Alvarado Quesada, for its all-cash USD500 the takeover is expected to close by mid-August, with
million acquisitions of Telefonica Costa Rica (Movistar). the two parties stating: ‘Telefonica and Liberty Latin
Costa Rica Previously, in June this year, the Superintendency America are excited to complete the transaction and
of Telecommunications (Superintendencia de to combine Cabletica and Movistar in Costa Rica. The
Telecomunicaciones, SUTEL) approved the deal, after companies intend to close the transaction shortly.’
determining no evidence the transaction would produce (August 3, 2021) commsupdate.com

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