Page 120 - SAMENA Trends - November-December 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

The government has confirmed that the Special means to reduce the tax burden on telecoms companies
Consumption Tax (Impuesto a los Consumos and encourage service expansion, especially in rural
Especiales, ICE) will no longer be applied to fixed areas. Originally intended to promote competition in
voice and mobile phone services with effect from 1 the market, the 15% excise duty was first levied on
Ecuador December, following the entry into force of the new corporate fixed and mobile telephony services (except
Economic Development Law. International trade groups internet/data-only mobile services) on 1 May 2016
such as the GSMA and the Inter-American Association and maintained under a new taxation regime (the Ley
of Telecommunications Companies (Asociacion Organica de Simplificacion y Progresividad Tributaria)
Interamericana de Empresas de Telecomunicaciones effective from 1 January 2020, which introduced a
[ASIET]) had been lobbying the country’s new president monthly levy of 10% on consumer post-paid mobile
Guillermo Lasso, who took office in May this year, to services and 15% on subscription television services.
scrap the monthly levy – previously 10% for individual (December 6, 2021) commsupdate.com
plans and 15% for corporate subscriptions – as a

Ethiopia is suspending the tender process for its Partnership for Ethiopia consortium, which was issued
second telecommunications license and will relaunch it with Ethiopia’s first private telecoms license earlier this
in the “near future”, the government’s communications year, having outbid MTN in the final stage of the lengthy
service said. The country said in September that it had sales process. Ethiopia already has state-owned Ethio
Ethiopia invited proposal requests for the license, which was Telecom in place with a tender currently open for a third
due to be issued in January 2022. The African country player to enter the market. Taye’s comments came
of roughly 110 million people sold only one of two full- days after Safaricom CEO Peter Ndegwa provided an
service licenses on offer in May. The government’s update on the project as part of its financial results
telecoms regulator, the Ethiopian Communication statement. During an investor call, Ndegwa outlined
Authority (ECA), also said it was suspended. It did not the potential problems for its new venture, though
immediately respond to a request for comment. The added: “opportunities outweigh the risks and the
licenses are considered a big prize in the country’s uncertainties. Largely because, the telecoms market
push to liberalize the economy, which had been one liberalization has been unquestionably positive and
of the world’s last major closed telecoms markets. A of value for countries across the world.” He explained
consortium led by Kenya’s top operator Safaricom won risks and uncertainties include the “ongoing political
the first license. Safaricom’s winning bid of US$850- conflict” in the country, tax and regulatory framework
million could serve as a guide for the price of the issues, currency volatility, foreign exchange availability
remaining license. (December 26, 2021) newsghana.com.gh and potential infrastructure rollout problems such
as securing access to buildings and concluding
The Finance Ministry expects the launch of services sharing agreements. Ethiopia is currently in the
from new entrant Safaricom in the first quarter of 2022, midst of an armed conflict between authorities and
a timeline revealed days after the operator cited ongoing anti-government groups in part of the country. “We
unrest in the country among potential risk factors to look forward to launching commercial operations
the venture’s success. At the Africa Tech Festival 2021 as projected while cognizant of the current evolving
online event, Brook Taye, senior advisor at Ethiopia’s situation in Ethiopia as we proceed with our plans
finance ministry, said the country expected Safaricom’s adapting to and assessing the situation as it evolves,”
operation in the country to launch in March 2022. Ndegwa added. Safaricom estimates the venture will
He also confirmed the government is in the process break even by its fourth year of operation with coverage
of finalizing legislative changes to allow its central obligations requiring $1.5 billion to $2 billion of capex
bank to issue the new entrant with a mobile financial to meet over a five-year period.
services license. Safaricom is leading The Global (November 12, 2021) mobileworldlive.com

The Minister of Entrepreneurship and Information as by changes to the Electronic Communications Act. In
Technology, Andres Sutt, is proposing to offer three a statement the minister said: ‘Today’s decision marks
licenses in the country’s much-delayed auction of the end of very long negotiations that held back the
5G-capable 3.5GHz spectrum. The concessions will development of high speed internet and 5G in Estonia.
Estonia each include 130MHz of spectrum between 3410MHz This issue has been discussed for the last 2-3 years,
and 3800MHz, he said. A sale of 3.5GHz licenses is under the leadership of several different IT ministers,
now expected in the first quarter of next year, with the and now we have come to a conclusion.’ Estonia is
process having been held up by disagreements on the home to three mobile network operators (MNOs): Telia,
number of concessions that should be offered, as well Elisa and Tele2. (December 17, 2021) commsupdate.com
120 NOV-DEC 2021