Page 99 - SAMENA Trends - May 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

World Bank Supports Gambian Telecoms Reform Plans

According to reports in the West African sustainability measures, broadening the operators in terms of size. It was decided
regional press, the World Bank has tax base and improving tax efficiency, early in 2019 that the two firms should be
allocated $30 million to Gambia for use as well as implementing public finance restructured and that shares in Gamcel
in telecommunications and energy. The management reforms. It is partly in this be divested, though this process does not
funding, in the form of grants aimed at context that the Gambian government appear to have been completed yet. In May
improving financial sustainability and committed last year to reforming state- last year Gamcel was reported to be calling
the delivery of services, will support backed fixed line operator Gamtel and its for a government financial bailout to avoid
the implementation of reforms in the mobile subsidiary Gamcel, which trails well the risk of its operations closing down
telecommunications and energy sectors, behind the country’s private sector mobile altogether.
say press agencies. New procurement
procedures will also be adopted to
minimize what is called ‘over-the-counter
procurement’. Initiatives financed by the
new funds will aim to ensure that public
investments in projects fall within the
framework of priorities defined by the
country’s National Development Plan –
including economic stabilization, growth
stimulation and structural transformation.
Under the plan, the country’s government
says it intends to undertake major reforms
in a bid to enhance macroeconomic
management for sustainable and inclusive
economic growth and poverty reduction.
This, the plan states, will be achieved
through prudent fiscal management, debt

NCC Reviews Spectrum Trading Guidelines

The Nigerian Communications newspaper The Nation cites a statement The move is aimed at ensuring that
Commission (NCC) has revealed it is from NCC Public Affairs Director Henry unutilized spectrum can be fairly traded
reviewing its ‘Spectrum Trading Guidelines, Nkamadu as saying that the regulator’s between operators to facilitate the rollout
2018’, in line with recommendations made board has decided to suspend the current of broadband infrastructure across the
in the new National Broadband Plan 2020- guidelines until they can be updated to country by industry players.
2025, which was published in March. Local provide for the optimal use of spectrum.

Telecoms Tax Troubles in Indonesia and Syria

Two news stories related to the ever- July 2020. This, according to a report in take “all legal measures” to collect back
topical subject of taxation of service Reuters, will apply to digital products sold taxes it claims the operator owes. The
providers have recently emerged: in by non-domiciled internet companies company has already missed a deadline for
Indonesia a new tax is about to be “with a significant presence in the arranging a mechanism for the payment,
imposed, while in Syria an unpaid tax is Indonesian market, including streaming and, along with rival provider MTN Syria
being pursued. The Indonesian finance services, applications and digital games”. is said to owe a total of $1.09 billion in
ministry has been reported as instituting a How Spotify and Netflix, said to be among back taxes related to license fees. MTN,
new regulation taxing over-the-top (OTT) the companies targeted, will respond however, is in the process of negotiating
services. More precisely, the government remains to be seen. By contrast, SyriaTel a mechanism for the payment of the owed
of Indonesia seems to be ready to charge should perhaps not be surprised at the amount; SyriaTel has yet to do so.
a 10 percent value-added tax on the sale Syria Telecommunications Regulatory
of digital products and services from 1 Authority’s (SyTRA) warning that it will

99 MAY 2020