Page 157 - SAMENA Trends - June-August 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

Spain’s long-awaited auction of 5G-suitable 700MHz accepted the takeover proposal in March this year.
licenses is now underway, with Telefonica Espana (July 7, 2021) commsupdate.com
(Movistar), Orange Espana and Vodafone Spain going
head-to-head for the concessions. Grupo MASMOVIL The competition authority approved a proposed €2
has opted to sit out the process, mirroring its approach billion acquisition of regional fixed player and MVNO
Spain in 2018, when the government auctioned 5G licenses in Euskaltel by Masmovil without conditions after
the 3.6GHz-3.8GHz band. A total of seven concessions concluding it would not pose significant problems.
are being tendered, broken down as two 2×10MHz CNMC noted although Euskaltel had a significant
blocks, two 2×5MHz blocks and three 1×5MHz blocks presence in the Asturias, Galicia and the Basque
(downlink only). All licenses will be valid for a period of Country regions, its national presence was limited,
20 years, but extendable for a further 20-year period. meaning combining with the MNO would not have
The base price will generate bids of EUR995.5 million a significant impact on competition. It added in the
(USD1.174 billion). (July 20, 2021) commsupdate.com areas where Euskaltel had a strong market share, it
had a different strategy to Masmovil, other “significant
The Board of the Spanish National Securities Market operators” present and able to continue to exert
Commission (Comision Nacional del Mercado de pressure. The regulator also noted third parties it
Valores, CNMV) has authorized the takeover bid for quizzed did not raise significant issues and broadly
the shares of Euskaltel submitted by Kaixo Telecom, viewed sector consolidation as a positive. As a result,
which owns Grupo MASMOVIL. Kaixo is co-owned it cleared the deal without conditions. Masmovil
by international private equity firms Cinven, KKR and announced its bid for the company in March, with the
Providence, and the CNMV’s approval comes after offer subject to approval by Euskaltel shareholders and
the government authorized the foreign investment. the final nod from stock market authorities in Spain. It
The 100% takeover of Euskaltel involves the buyout is making the move through subsidiary Kaixo Telecom.
of 178.645 million shares, which are priced at EUR11 In its statement announcing the proposed acquisition,
(USD13) per share, for a total takeover fee of EUR1.965 Masmovil said the deal would consolidate its position
billion. Euskaltel’s three largest shareholders, Zegona nationally, noting the larger business would be in a
Communications, Kutxabank and Alba Europe – who better position to accelerate investment in 5G and fiber.
collectively hold 52.32% of the company’s shares – (June 17, 2021) mobileworldlive.com

The Post and Telecom Agency (Post & Telestyrelsen, associations, covering 1,817 separate projects. Bjorn
PTS) says the application period for broadband Blondell, division manager at PTS, commented: ‘It is
subsidies has ended, with almost SEK7.5 billion very positive that the interest has been so great and
(USD860 million) having been requested by network that applications have been received with so many
Sweden operators. The regulator has SEK1.6 billion of funding projects. PTS’s broadband support is an important tool
to allocate for the rollout of broadband infrastructure for achieving the Government’s broadband strategy …
in three regions, Norrland, Svealand and Gotaland. Not all projects will be eligible for funding this time, but
A total of 129 applications for broadband support PTS’s broadband support will continue in the coming
were received from companies, municipalities and years.’ (August 11, 2021) commsupdate.com

The World Bank has approved the Digital Tanzania critical government institutions; and digital platforms
Project (DTP) with a financing of USD150 million from and services – building the technical capacity,
the International Development Association (IDA). skills, institutions, and local digital infrastructure for
The project aims to increase access to high quality the government to deliver services to citizens and
Tanzania broadband internet services for the government, conduct its own business digitally. By the end of the
businesses and citizens, and improve the government’s DTP’s implementation, more than 75% of Tanzania’s
capacity to deliver digital public services. This will population will be covered by a mobile broadband
be achieved through the following components: the network signal (3G or higher); some 425 government
digital ecosystem – strengthening the laws, policies, ministries, departments and agencies will benefit
regulations, institutional capacity, and human capacity from broadband internet service; and a minimum of
needed to promote ICT infrastructure investment, 40% of citizens (aged 15 and above) will be able to
market competitiveness, digital engagement, job use the internet. The number of monthly transactions
creation, and innovation; digital connectivity – accessing a public service via the internet or a mobile
ensuring access to affordable, high quality internet phone will increase from 200,000 to at least 500,000.
services for all citizens, including in rural areas, and for (June 1, 2021) commsupdate.com

157 JUN-AUG 2021