Page 140 - SAMENA Trends - May-June 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

The Indian government will convert debt owed by participation in the auction setting out the finalized
Vodafone Idea (Vi) into equity in the troubled telco conditions for the sale and whilst the updated rules for
before the commencement of the country’s multi-band the tender have improved conditions for the interested
5G spectrum, which is scheduled to start on 26 July. bidders (the removal of Spectrum Usage Charges [SUC]
India According to the Financial Express, the timing of the and easier long-term payment options, for example),
several concerns raised by operators following the
move is designed to pave the way for the operator to
fully participate in the frequency sale. The conversion publication of the initial draft plans have not been
of debt into equity will be done under Section 62 (4) addressed. Of particular concern to operators was the
of the Companies Act. Vi will issue shares to the suggestion that spectrum could allocated directly (i.e.
government on a preferential basis, and they will be without auction) to businesses for private networks.
held by the Department of Investment and Public Regarding the matter, the Economic Times writes that
Asset Management (DIPAM). After the INR161.3 industry group the Cellular Operators Association of
billion (USD2.09 billion) debt is converted into equity India (COAI) last week warned the telecom minister that
the government will hold a 32% stake in Vi, while the ‘any move to directly allocate spectrum to non-telco
stake of the company’s promoters, which includes UK’s enterprises would degrade the 5G services business
Vodafone Group and India’s Aditya Birla Group, will be case for telcos and make CAPEX-intensive 5G network
diluted from the existing 75% to 50%. The government rollouts meaningless for them’. Despite such protests
has informed the telco that the stake will be treated the DoT maintained its position and the NIA sets out
as ‘public shareholding’ and it will neither participate several options for Captive Non-Public Networks
in the management of the company, nor seek board (CNPNs), including the direct allocation of spectrum to
representation. (June 21, 2022) commsupdate.com enterprises, though details for such direct assignment
will be determined at a future date. Meanwhile,
The Indian government has approved plans for the operators had also requested further reductions in base
upcoming multi-band 5G spectrum auction, now set prices for 5G spectrum to encourage bidding and free
to take place in late July this year, comprising more up funds for investment in infrastructure. The prices
than 72GHz of spectrum across the 600MHz, 700MHz, recommended by the Telecom Regulatory Authority
800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, of India (TRAI) and subsequently accepted by the DoT
3300MHz and 26GHz bands. The new licenses will be represent a decrease of more than 30% – and around
valid for 20 years, and interested parties have until 8 July 40% for the coveted 700MHz range – compared to the
to submit applications with the auction due to begin on last auction but telcos had requested that the reserve
26 July. The Department of Telecommunications (DoT) prices be lowered further still.
has published a Notice Inviting Applications (NIA) for (June 15, 2022) commsupdate.com

New spectrum licensees in the 700MHz and 3.6GHz Telecom, Sure and BlueWave all bid successfully for
bands are set to be awarded by the Isle of Man’s a 1×100MHz block of 3.6GHz spectrum, with the last
Communications and Utilities Regulatory Authority named paying marginally less for its new frequencies,
(CURA), it has announced. With the regulator having GBP641,519, versus the GBP651,519 that Manx
Isle of Man previously published a final memorandum on its Telecom and Sure will each pay for their respective
plans for the sale of spectrum in these bands back in allocations. With the CURA confirming that all of the
December 2021, it has now confirmed the conclusion of licensees issued are technology neutral, it also revealed
the sale process, with three companies – Manx Telecom, that payment for the concessions will be made over
Sure (Isle of Man) and BlueWave Communications – their 17-year duration. Of note, lower percentage fees
bagging frequencies. Both Manx Telecom and Sure will apply in the earlier years of the license period – 3%
successfully bid for 700MHz spectrum, with the former of the total fee is payable in each of the first three years,
securing both a 2×15MHz paired block in the band compared to 5% in years four to eight and 8% in the
(703MHz-718MHz/758MHz-773MHz) and a 10MHz last four years of the license. According to CURA, this
block of supplementary downlink spectrum (748MHz- distribution of license fee payments has been designed
758MHz), at a total cost of GBP499,884 (USD631,059). to ‘incentivize the investment in new services during the
Sure, meanwhile, has agreed to pay GBP299,930 for earlier parts of the license duration’.
a 2×15MHz block in the 700MHz band (718MHz- (May 30, 2022) commsupdate.com
733MHz/773MHz-788MHz). Meanwhile, Manx

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