Page 92 - SAMENA Trends - November-December 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

FCC Approves Searchlight’s Takeover of Consolidated

The US Federal Communications of the holding companies involved in the 2020 Searchlight agreed to invest USD425
Commission (FCC) has confirmed that transaction – is based in the Cayman million in Consolidated Communications,
its International Bureau has granted Islands, while other shareholders hold in a move that will ultimately help it to
permission for private equity firm German and Canadian citizenship. The secure a 34.55% voting stake in the telco
Searchlight Capital to acquire a greater watchdog noted: ‘After a review of the (49.21% equity stake). The investment
than 25% interest in Consolidated Petition and record in this proceeding, we has been structured in two stages; at the
Communications. The added scrutiny find that the public interest would not be closing of the first stage (2 October 2020)
appears to be a result of Searchlight’s served by prohibiting the foreign ownership Searchlight invested USD350 million in the
indirect multinational shareholder of Consolidated Communications regional telco.
structure. As per FCC documentation, Holdings’. According to TeleGeography’s
Searchlight Capital Partners III GP – one GlobalComms Database, in September

Singtel Group Loses Landmark Tax Case Related to Optus Acquisition

Singtel Group has estimated that it faces 2017. Meanwhile, it was noted that options and determine next steps. If the
AUD304 million (USD216 million) in tax STAI’s holding company, Singtel Australia above tax exposures are assessed to be
exposure, interest and penalties following Investment Ltd, would be entitled to a probable, provisions shall be made in the
the dismissal of an appeal against an corresponding refund of withholding tax accounts.’
assessment by Australia’s Commissioner estimated at AUD89 million. Consequently,
of Taxation. With the matter related to the net tax exposure and related interest
the acquisition financing of Optus back and penalties amounted to AUD304 million.
in 2001, Singtel’s Australian subsidiary – In a statement regarding the matter,
Singapore Telecom Australia Investments Singtel confirmed it has now received an
(STAI) – was reported to have received ‘unfavorable judgement’ from the Federal
amended assessments from the Australian Court of Australia of its appeal against the
Taxation Office for primary tax of AUD268 assessments. Commenting, the company
million, interest of AUD58 million and said: ‘The Singtel Group will consider the
penalties of AUD67 million in 2016 and details of the judgment, explore available

Estonian, Russian Telecommunications Regulators Discuss Use of Radio

Frequency Bands

The regulatory bodies governing the borders, they must not disrupt the other proposals. Also discussed was the 3.6 GHz
telecommunications systems of the state's telecommunications systems. mobile telecommunications frequency
Republic of Estonia and the Russian Hence, it is international good practice band; however, the two neighboring
Federation held negotiations on the use to coordinate the use of frequency bands states did not arrive at an agreement in
of radio frequency bands. The goal of between states. As a result of the three-day this regard due to their technical plans
the meeting was to coordinate the use of meeting, changes to the agreement on the for using the frequency band differing to
radio frequency bands on the two states' coordination of the 3G, or the 1900/2100 a great degree. Topics discussed at the
border areas by reaching agreements MHz, mobile telecommunications meeting also included future plans for
and entering into coordination contracts frequency band were agreed upon to enable television and a possible transition to the
that ensure better conditions for building to better implement 5G technologies. Other DVB-T2 digital television standard. The
telecommunications networks, said the mobile telecommunications contracts meeting had been planned from 2019 but
Consumer Protection and Technical were likewise discussed at the meeting, it had repeatedly been postponed due to
Regulatory Authority (TTJA) representing including the future 5G frequency bands of coronavirus restrictions. The meeting in
Estonia at the talks. (TTJA) said that 700 MHz and 26 GHz, with regard to which December was held via a video link.
while radio frequency bands exceed state Estonia is expected to make contract

92 NOV-DEC 2021