Page 117 - SAMENA Trends - June-July 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

EC Probes Consumer IoT Sector EC Probes Consumer IoT Sector

The European Commission (EC) launched an inquiry into the in the coming years and become commonplace in the daily
consumer IoT sector, fearing the nascent market may already lives of European consumers”. The focus will be on products
be subject to competitive distortion. In a statement, the EC said including smart home appliances and wearables. Vestager
the probe was an early-stage move designed to inform its future explained the key to success in the sector appeared to depend
policy. Margrethe Vestager, EC VP and Competition Commissioner on gathering “large amounts of user data”, meaning the EC must
(pictured) explained the sector is “expected to grow significantly ensure “market players are not using their control over such data
to distort competition, or otherwise close-off these markets for
competitors”. Early indications suggested such competitive
distortion is already underway, the EC stated, citing “restrictions
of data access and interoperability, as well as certain forms of
self-prefeencing and practices linked to the use of proprietary
standards”. “IoT ecosystems are often characterized by strong
network effects and economies of scale, which might lead to the
fast emergence of dominant digital ecosystems and gatekeepers,
and might present tipping risks.”nThe EC warned if competition
concerns are identified, it could open investigations to ensure
compliance to EU rules, to prevent abuse of market dominance
and restrictive business practices. It plans to publish final findings
in mid-2022.

Malaysian Communications Minister Issues Unexpected Directive Allocating

700MHz Spectrum

In an unexpected development, it has determination (‘Determination No.1 of determination (‘Determination No.2 of
been revealed Malaysia’s communications 2020’, also dated 15 May 2020) has revoked 2020’, 15 May 2020) has ordered the
minister, Datuk Saifuddin Abdullah, has an earlier piece of related legislation reallocation of a spectrum in the 2600MHz
issued a directive ordering the Malaysian (‘Determination No.2 of 2017’, 8 September band, noting that the new frequency
Communications and Multimedia 2017), which had set a fixed price for assignments are pursuant valid for 15
Commission (MCMC) to assign spectrum spectrum allocations in the 700MHz band. years. Coupled with this, a third direction
in the 5G-suitable 700MHz band to five Previously, in January 2020 the MCMC (‘Direction No.3 of 2020’, 15 May 2020),
companies. The directive – dated 15 May published a final report on the allocation of detailed the frequency allocations in the
2020 – has only just now come to light, spectrum, including frequencies suitable 2600MHz band for eight companies,
after it was discovered on the regulator’s for 5G, in which it said it was considering broken down as follows:
website, with no official announcements plans to allocate both 700MHz and 3.5GHz • Altel (2540MHz-2560MHz/2660MHz-
having been made at the time of the frequencies to a single entity comprising a 2680MHz)
development. According to ‘Direction No.4 consortium formed by multiple licensees. • Celcom (2530MHz-2540MHz/2650MHz
of 2020’, three companies are to be allocated However, given this latest development, -2660MHz)
2×10MHz in the 700MHz band, namely: and the award of 700MHz frequencies • Digi (2560MHz-2570MHz/2680MHz-
Celcom (723MHz-733Mhz/778MHz- to individual companies, the authorities’ 2690MHz)
788MHz); Digi Telecommunications plans for the 3.5GHz band are now unclear. • Maxis (2510MHz-2520MHz/2630MHz-
(703MHz-713MHz/758MHz-768MHz); Indeed, according to local press reports 2640MHz)
and Maxis (733MHz-743MHz/788MHz- requests for further information regarding • Redtone Engineering and Network
798MHz). Meanwhile, the other two the matter have not been responded to by Services (2500MHz-2510MHz/
companies to be allocated spectrum will the MCMC, which has still yet to release 2620MHz-2630MHz)
receive a 2×5MHz block, Telekom Malaysia an official announcement regarding the • U Mobile (2520MHz-2530MHz/
(718MHz-723MHz/773MHz-778MHz) new spectrum allocation. Alongside the 2640MHz-2650MHz)
and Altel Communications (713MHz- developments related to the 700MHz band, • Webe Digital (2575MHz-2595MHz)
718MHz/768MHz-773MHz). No word yet another ministerial direction (‘Direction • YTL Communications (2595MHz-
regarding pricing for these new spectrum No.5 of 2020’, 15 May 2020) has ordered 2615MHz).
allocations has been forthcoming, the MCMC to allocate a 2×5MHx block in
however, while notably a new ministerial the 900MHz band to Altel. Finally, a further

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