Page 140 - SAMENA Trends - November-December 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

are interested in each round and they will be able to threats. The head of state-owned fund PFR said it
switch their bids to other blocks in following rounds. and Exatel alongwith Orange Polska, T-Mobile Polska
UKE plans to introduce a limit of one single block per and Polkomtel- a unit of Cyfrowy Polsat - on Monday
individual user. Minimal income from the auction is signed an agreement to start establishing a company
estimated at PLN 1 billion. (November 11, 2019) telecompaper.com to build 5G infrastructure. Orange Polska is the Polish
arm of France’s Orange and T-Mobile Polska is the
Three of Poland’s biggest private telecom firms have Polish unit of Germany’s Deutsche Telekom. Poland’s
agreed to consider developing 5G networks with two biggest mobile operator Play Communications did
state entities, one of the groups said, signaling the not sign the memorandum of understanding, as the
government may have some control over the future company still needed to get some corporate approvals,
network. Poland and other European countries are Play’s IR head told Reuters. “The aim of the joint project
preparing to launch 5G services offering faster data is to ensure nationwide availability of 5G services in
downloads, but some plans are being complicated by selected bands, technology security and low service
security doubts around Chinese equipment vendor prices thanks to synergies of common infrastructure,”
Huawei. Poland’s state-owned telecom operator PFR CEO Pawel Borys said on Twitter. The 700 MHz
Exatel had earlier advocated forming a consortium band is meant to cover the entire country, unlike other
of private but also state companies to develop 5G bands that will be available regionally. Poland is yet to
network infrastructure for the 700 MHz band to decide on the way it will distribute frequencies.
ensure lower costs and better protection from security (November 4, 2019) reuters.com

The Romanian telecom market regulator (ANCOM) planned levels of payments, which were challenged by
announced that auction for radio spectrum needed operators (currently the value of the spectrum bands to
for the development of 5G services is postponed and be auctioned is estimated by ANCOM atEUR580m), will
will be held in the first half of 2020, not in December be taken directly by the Romanian government.
Romania 2019 as originally planned. The radiofrequency usage (November 16, 2019) verdict.co.uk
rights to be distributed include bands in 700MHz,
800MHz, 1500MHz, 2600MHz and 3400-3800MHz. Romania’s telecom market regulator ANCOM will hold
In Romania, the first 5G services were commercially the auction for allocating the radio frequency bands
launched in November 2019 by Orange on its existing dedicated to applications using 5G technologies in
frequency resources. However, for further development the first part of next year, ANCOM President Sorin
of 5G services, vital spectrum needs to be allocated to Grindeanu announced in a public conference. The half-
telecom operators. This delay could initially cause a year delay means that Romania’s Government can no
relatively slow uptake of 5G services in the short-term. longer expect to pocket the EUR 500 million (0.25% of
Romania’s regulator said the delay for the auction GDP) estimated to be derived to the budget from the
is due to the following three main reasons: lack of a 5G license auctions this year. This means stronger
set of instruments regarding the network security budget revenues next year, but an extra 0.25% of GDP
requirements, need to implement the memorandum on top of this year’s budget deficit, which already
signed in August 2019 between Romania and the reached 2.62% of GDP in the first nine months. ANCOM
US on 5G technology security, need for the newly said that the auction can no longer be organized this
appointed government – which drafts the 2020 budget year because the institution hasn’t yet received the
– to approve the license fees and the calendar for their set of network security measures from the European
payment. Additionally, during a consultation for the Commission and the Government has not implemented
spectrum auction, the telcos suggested changing the the Memorandum signed by the Governments of
amount of the license fees and the calendar for their Romania and the US. Moreover, the new Government
payment, as well as the coverage obligations which should draft the budget for the year 2020 and approve
ANCOM proposed in the Terms of Reference. The the license fees and their payment schedule. Under
comments submitted by telcos during the regulatory these conditions, the ANCOM management considers
consultation that started in July 2019 has led ANCOM that organizing the auction in full transparency and
to propose amended auction documentation for predictability is not possible.
coverage obligations currently under review. Also, (November 2, 2019) romania-insider.com
ANCOM announced that the final decisions on the

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