Page 119 - SAMENA Trends - May 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

and messaging offerings, a move which could violate A Finance Ministry taskforce has recommended
competition law. The complaint, which reportedly rationalizing the prices of the upcoming 5G spectrum
could lead to a wider examination of the claims, stated auction to ensure that next generation services can be
WhatsApp was forcing the payments service on its made affordable to the public, arguing that the current
400 million Indian users. WhatsApp initiated a move to price level is too high. A report from the taskforce
enter the payments market in India in February 2018, acknowledged the level of financial stress in the sector,
but hit problems relating to rules around data storage. noting that some operators were in a ‘precarious
Moneycontrol recently reported the WhatsApp service position’ due to the Supreme Court’s decision on
could launch by the end of this month. The company Adjusted Gross Revenue (AGR) in October last year,
faces stiff competition in the sector from rivals which handed the industry a bill for around INR1.5
including Google, Hike, Amazon and Paytm. WhatsApp trillion (USD19.9 billion), and just three months to find
previously assured the Supreme Court of India it the funds. The finance ministry’s report also pointed
would comply with necessary legislation related to out that ‘demand for spectrum is likely to be subdued
data storage rules prior launching its payment feature, as consolidation has reduced the number of players in
Reuters reported. (May 18, 2020) mobileworldlive.com the sector to effectively only four,’ adding that ‘robust’
participation in the auction from private industry would
The Indian government is to push back its proposed be needed to achieve the government’s communications
5G spectrum auction until at least next year, due to and digital policy goals. The report also touched
the significant disruption caused by the Coronavirus on the substantial financial burden of deploying
pandemic and operator concerns over pricing. A the necessary infrastructure to fully implement 5G
report in The Economic Times of India claims that services and to satisfy growing demand for mobile
the government will go ahead with the auction of services, estimating that an additional one million new
additional 4G spectrum as planned, later this year towers need to be established by 2025, with around
but will defer the 5G spectrum sale until 2021. Bharti three million kilometers of fiber-optic infrastructure
Airtel and Vodafone Idea, who were both hit with multi- by the same date. The setup of each tower requires
billion dollar AGR dues by the country’s Supreme investment of around INR50 million, the report added.
Court last October, have both called for the auction The Department of Telecommunications (DoT) has
to be delayed, as they battle to rein in expenses. defended the pricing on the basis that it has adopted
Sources familiar with the matter told journalists at the figure recommended by the Telecommunications
The Economic Times of India that the country’s Digital Regulatory Authority of India (TRAI), and that the terms
Communications Commission had met on Monday to must be approved by the cabinet. The TRAI published
discuss postponing the 5G auction. “Discussions are its recommendations on the spectrum auction back
on to hold the 5G auctions later as some of the telcos in August 2018, suggesting the sale of frequencies in
need to buy spectrum but 5G may not be the priority the 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz,
now,” a source told the ET. India will proceed with its 2300MHz, 2500MHz and 3300MHz-3600MHz bands.
4G spectrum auction, however, as mobile network For the 700MHz band – which had been auctioned in
operators struggle to meet the gargantuan surge in 2016 but attracted no bidders due to the high price –
demand for bandwidth. Additional 4G spectrum will the TRAI suggested a price tag of INR62.7 billion per
help operators provide higher network availability and MHz of pan-India frequencies.
extend the reach of their networks into underserved (May 4, 2020) The Economic Times
rural areas of the country. (May 13, 2020) commsmea.com

The Italian government has launched a EUR400 million 1Gbps within the next two years. Vouchers worth up
(USD434 million) fund to provide fiber connectivity to to EUR500 will also be made available to qualifying
schools across the country. The Ministry of Economic low-income families to install broadband connections
Development (Ministero dello Sviluppo Economico, and acquire IT equipment for children. The first
Italy MiSE) is looking to equip over 32,000 buildings – or activations on the new school network are expected
from September this year.
more than 81% of schools – with fiber access which
guarantees download speeds of 100Mbps, and up to (May 6, 2020) MondoMobileWeb

119 MAY 2020