Page 126 - SAMENA Trends - June-July 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

Safaricom Confirms Bid for Ethiopian telecommunications License

Kenya-based Safaricom has lodged an other partners, has expressed interest and confirmed plans to award two nationwide
expression of interest (EoI) for one of the we will give an update at some point on licenses via a competitive bidding process
of the two telecommunications licenses the progress.’ As previously reported by – in accordance with the Communications
that are being made available in Ethiopia. CommsUpdate, last month a request for Service Proclamation No. 1148/2019.
According to The Standard, Safaricom’s EoI for two new licenses was launched by Interested parties have been given until 22
CEO Peter Ndegwa was cited as saying the local telecoms regulator, the Ethiopian June 2020 to submit an EoI.
of the matter: ‘Safaricom, together with Communications Authority (ECA), which

EC Moves on Apple with Competition Probes

European officials added to growing of developers to let iPhone and iPad users app developers.” Apple released figures
scrutiny of Apple’s business practices, know of “alternative cheaper purchasing highlighting the economic contribution
opening probes exploring whether its possibilities outside of apps”. Concerns of the App Store, as it reportedly draws
App Store and Apple Pay services breach raised by a preliminary investigation increased scrutiny from US authorities.
competition rules. In statements, the lie behind the Apple Pay move, and will Citing fresh research by Analysis Group,
European Commission explained it was explore allegations Apple refused access Apple stated the ecosystem generated
exploring whether Apple effectively shut to the service and limited access to NFC on $519 billion in “billings and sales” globally
out competitors by mandating the use of its iPhones. Competition Commissioner and in 2019, $413 billion of which covered
own in-app purchasing set-up in the App EC VP Margrethe Vestager said Apple had physical products and services; $61
Store, while also investigating the terms apparently established a “gatekeeper role billion from digital; and $45 billion from
and conditions imposed on integrating when it comes to the distribution of apps in-app advertising sales. Apple noted it
Apple Pay. The App Store probe is a follow and content to users of Apple’s popular only received commission from digital
up to “separate complaints” by Spotify, and devices”. “We need to ensure that Apple’s goods and services, meaning more than
a distributor of e- and audio-books: it will rules do not distort competition in markets 85 per cent of the total went to third-party
explore whether Apple restricted the ability where Apple is competing with other developers and businesses.

Mexican Senator Proposes Integrating Telecoms, Energy, Antitrust Regulators

Ricardo Monreal, the Mexican Senate (Comision Reguladora de Energia, would be a constitutionally autonomous
Majority leader, has proposed a new bill that CRE) and the Federal Commission entity that would focus on investigating
seeks to integrate the country’s telecoms, of Competition (Comision Federal de markets, guaranteeing competition, and
energy and antitrust regulatory agencies Competencia Economica, COFECE) would combating monopolies. Monreal claims
via the creation of an enlarged regulatory be merged into the National Institute that the integration would help to save
entity. With the approval of this bill, the of Markets and Competition for Well- MXN500 million (USD22.3 million) a year
Federal Telecommunications Institute being (Instituto Nacional de Mercados y by creating synergies that would help
(Instituto Federal de Telecomunicaciones, Competencia para el Bienestar, INMECOB). streamline highly bureaucratic processes.
IFT), the Energy Regulatory Commission As per the senator’s plans, INMECOB

Korean Operators Hit with Record Fine for 5G Subsidies

South Korea levied a record KRW51.2 KRW13.5 billion, the news agency stated. handset subsidy cap. Last month the
billion ($42.8 million) fine on operators for It reportedly took action following an Ministry of Science ICT and Future
continued subsidy regulation breaches, investigation on handset subsidies offered Planning began assessing the quality of
this time relating to building their 5G user to 5G subscribers between April 2019 and 5G services available following complaints
base, Yonhap News Agency reported. The August 2019. In early 2018, the operators and contract cancellations. The operators
Korea Communications Commission (KCC) were fined a combined KRW50.6 billion launched non-standalone 5G service in
imposed the largest penalty of KRW22.3 for illegal handset subsidies. They were early April 2019 and had a combined 5.89
billion on market leader SK Telecom, with also penalized multiple times between million subscribers by end-March.
KT fined KRW15.4 billion and LG Uplus 2014 and 2016 for ignoring a KRW330,000
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