Page 105 - SAMENA Trends - May-June 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

FCC Urged to Probe Impact of Broadband Data Caps

Federal Communications Commission (FCC) chair Jessica portal to gather information on the impact of data caps on their
Rosenworcel sought backing for a formal notice of inquiry into internet usage.
whether data caps imposed by broadband providers hamper
consumers’ access to services or otherwise harm competition.
In a statement, the FCC explained Rosenworcel is asking other
commissioners to back an inquiry into whether regulatory action
is required to ensure access to fixed and mobile broadband
services, and whether the agency has the authority to take action
over data caps. The FCC is also concerned with why caps still
exist given many providers have the capacity to offer unlimited
services. Rosenworcel is a long-term advocate of broad availability
of internet access and closing the digital divide in the US. She
stated it is “time the FCC take a fresh look” at the impact of data
caps, noting internet access is not a “nice-to-have” anymore,
rather a “need-to-have for everyone”. The FCC noted many ISPs
dropped data caps during the Covid-19 (coronavirus) pandemic,
as broadband access became increasingly important during the
health crisis, in particular for home working and schooling. In
addition to pressing for an inquiry, the FCC launched a consumer

Vodafone UK, Three UK Merger Plans Formally Announced

Following recent “reports that a deal was imminent” merger- instead contributing differential debt amounts upon its completion;
announcement-expected-imminently-report-claims/, the proposed approximately GBP4.3 billion (USD5.4 billion) in debt will come
merger of British mobile network operators (MNOs) Vodafone UK from Vodafone UK, with around GBP1.7 billion coming from Three
and Three UK has now been formally confirmed. As per the terms UK. Meanwhile, it has been claimed that the transaction will result
of the deal, the former’s parent company Vodafone Group will in ‘substantial’ efficiencies, which are expected to amount to more
take a 51% stake in the enlarged business, with Hong Kong’s CK than GBP700 million of annual cost and CAPEX synergies by the
Hutchison Group Telecom Holdings (CKHGT) taking the other 49%. fifth full year post-completion. Furthermore, one notable element of
In terms of the financial elements of the deal, it has been revealed the proposed deal is that three years after its completion Vodafone
that there is no cash consideration to be paid, with the MNOs Group will have a call option for CKHGT’s 49% stake in the enlarged
British company. In announcing the merger deal the parties also
outlined plans for the combined business to invest GBP11 billion
in the UK over ten years with a view to creating ‘one of Europe’s
most advanced 5G Standalone [SA] networks, in full support of
UK Government targets. Specific coverage targets were detailed,
with it said that the merged entity will seek to extend 5G coverage
to more than 99% of the population by 2034, while it expects to
achieve greater than 95% 4G geographic coverage by 2027. In
addition, the combined business aims to offer 5G fixed wireless
access (FWA) to 82% of British households by 2030. Claiming that
this proposed transaction will be ‘great for competition’, the official
announcement of the deal suggested it will create ‘a third operator
with scale, levelling the competitive playing field, increasing
competition to the UK’s two leading converged operators and will
also provide more choice in wholesale partners for the UK’s already
competitive MVNOs’. With the deal now subject to regulatory and
shareholder approvals, it is reportedly expected to close ‘before
the end of 2024’.

105 MAY-JUNE 2023