Page 145 - SAMENA Trends - June-August 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

service.’ It is understood that the International Finance Safaricom Telecommunications Ethiopia.
Corporation, the private sector arm of the World Bank, Ethiopia’s award of a new telecoms license paves the
will serve as transaction adviser in the deal, and the way to open the market to international investors for
Ethiopian government reportedly expects prospective the first time. GPE, a consortium comprising Safaricom,
bidders to include firms which had expressed interest Vodacom, Vodafone, Sumitomo Corporation, and CDC
in the previous attempt to sell the license, but whose Group, has been designated as a provisional licensee
bids were deemed to be insufficient. Brook Taye, a for the nationwide full-service Telecommunications
senior adviser at Ethiopia’s Ministry of Finance, said license last month. The new license is effective from 9
that the state expects ‘strong interest’ in the retendered July 2021 and is valid for a term of fifteen years from
license, while suggesting that the winning bid from the the Effective Date, and renewable for additional terms.
initial tender – which saw a Safaricom-led consortium “Under Articles 40 and 41 of the Tender Regulations,
agree to pay USD850 million for its concession in May the Designated Licensee (Global Partnership for
2021 – could serve as a guide for the price that will Ethiopia) shall incorporate a local company within
be achieved in this second sale process. ‘At least there forty-five 45 calendars,” ECA said. With the license
is a benchmark and to uplift this benchmark we are nod, the Safaricom-led consortium can now provide
working on amending the policy,’ Brook noted, again any telecommunications service including voice, text,
hinting at the expectation that the inclusion of a right data, and video using any technology whether fixed or
to offer mobile financial services will help drive the cost wireless anywhere within Ethiopia. According to local
of the concession higher than in the initial license sale. media reports, the Safaricom-led consortium is set to
(August 3, 2021) commsupdate.com create up to 1.5 million new jobs and bring $8.5 billion
in investment over 10 years. It will provide 4G and 5G
The Ethiopian Communications Authority (ECA) said it internet services, and by 2023 a low-orbit satellite will
has issued a telecoms license to the Global Partnership be put in place to provide nationwide 4G coverage.
for Ethiopia (GPE), which has been incorporated as (July 17, 2021) developingtelecoms.com

The Federal Network Agency (FNA, or the next possible steps. The five scenarios presented
Bundesnetzagentur) has published its ‘Principles and include a spectrum auction, an extension of spectrum
Scenarios for the Provision of 800MHz, 1.8GHz and usage rights, a combination of the two, an ‘operator
2.6GHz Spectrum’. The paper has been drawn up ahead model’ and a tendering process. The paper also
Germany of the expiry of the spectrum usage rights in these considers a ‘negative auction’ as an option, whereby
the successful bidder would be the one needing the
bands at the end of 2025. It follows the publication
of the FNA’s ‘Spectrum Compass’ for market least funding for rolling out mobile coverage to areas
consultation in August last year, which contains initial that are not financially lucrative (this option should
considerations on the future availability of frequencies also be considered in context with other forms of
in the 800MHz, 1800MHz, 2600MHz bands, and funding). The FNA’s objective is to improve broadband
aims to give companies the greatest possible legal coverage, especially for communities in rural areas,
and planning security at an early stage so that they and the regulator will take particular account of this
can continue to invest in their networks. The FNA objective when making the spectrum available again
has evaluated the responses received and is now from 2026. At the same time, the aim will be to promote
consulting on its principles and scenarios with the aim sustainable competition in infrastructure and services.
of evaluating market players’ interests and exploring (June 23, 2021) commsupdate.com

The Greek government has called for binding bids for Governance in 2019 and has attracted interest from
its Ultra-Fast Broadband (UFBB) project, which aims to eight potential rollout partners: OTE, Wind, Vodafone,
offer 100Mbps connectivity to 750,000 premises, with Public Electricity Company, Avax, METKA, Intracom
speeds upgradeable to 1Gbps. A report from Athina984 and TERNA Energy. The project will run alongside other
Greece says the rollout will be one of the largest public-private schemes financed by the EU’s Recovery Fund, which
aim to develop 5G transmission corridors, submarine
partnership (PPP) schemes in Europe, with a budget
of EUR700 million (USD835 million), EUR300 million cables, backbone infrastructure and microsatellites.
of which will come from public funding. The UFBB (June 24, 2021) commsupdate.com
scheme was first unveiled by the Ministry of Digital

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