Page 86 - SAMENA Trends - November 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

In a press release, the Czech Telecommunication Office 3600MHz band, blocks of 20MHz ‘connected with the
(CTU) said it has successfully completed the auction commitment to lease frequencies to support Industry
phase of bidding on particular auction blocks offered 4.0’ were won by O2 and CentroNet. Other successful
in the frequency bands for future 5G networks, with applicants in this band were T-Mobile, Vodafone and
Czech five groups winning spectrum allocations. However, Nordic Telecom 5G, with the CTU noting that upon
the government’s long-held desire to see a major
completion ‘all the offered blocks were successfully
Republic new fourth mobile network operator (MNO) enter the allocated in the auction’. Two other groups – PODA
market appears to have been dashed, with the bulk and Sev.en Innovations – participated in bidding but
of frequencies on offer going to the incumbents – O2 were not successful. With the government keen to see
Czech Republic, T-Mobile and Vodafone. The telecoms new competition to drive down mobile prices that are
regulator confirmed that in total, the five firms agreed to among the highest in Europe, Nordic Telecom has said
pay a total of CZK5.596 billion (USD250.7 million), with it will look to offer mobile services to customers around
the existing MNOs each securing blocks in the 700MHz the country. Commenting on the auction results, the
band suitable for building out national networks. In country’s industry minister Karel Havlicek said on
the 700MHz band, O2 gained the 2×10MHz block Twitter that ‘new players would increase competitive
connected with the commitment to provide national pressure on existing operators and industry would
roaming and PPDR services for public emergency and have better access to 5G after the auction’.
security bodies. Other blocks in the 700MHz band were (November 16, 2020) commsupdate.com
acquired by T-Mobile and Vodafone. In the 3400MHz-

Ethiopia began a long-anticipated tender process issuance of two new service provider concessions, and
for two new mobile licenses in the country, inviting the sale of a 40% stake in incumbent Ethio Telecom.
international operator groups to submit their final According to local news source The Reporter, the
pitches by a 5 March 2021 deadline. In a statement, direction was made at a meeting held last week (26
Ethiopia the Ethiopian Communications Authority said the October), at which reports were presented by the
nationwide licenses would be awarded through Ethiopian Telecommunications Authority (ECA), the
a competitive bidding process, with terms and Ministry of Finance (MoF) and Ethio Telecom. Of
conditions provided to companies on request until 10 particular note, the ECA was said to have detailed
December. The authority hopes to tempt “world class in its presentation the plans for what spectrum is to
telecommunications operators” to enter the market to be allocated to new licensees, with it confirming its
compete with incumbent, and currently sole provider, intention to assign frequencies across five bands to
Ethio Telecom. During the first application phase, a both new players. It is understood that the two new
total of 12 players submitted expressions of interest players will each be awarded 10MHz blocks in the
including Orange; MTN Group; STC; Etisalat; and Global 800MHz and 900MHz bands, as well as 20MHz in the
Partnership for Ethiopia, a consortium comprised of 1800MHz band. By comparison, Ethio Telecom will
Vodafone Group, Vodacom and Safaricom. Privatization reportedly hold a 10MHz block in the 800MHz band,
of the sector has been in the works since 2018, when while the incumbent will retain 15MHz and 35MHz
authorities raised the prospect of welcoming overseas in the 900MHz and 1800MHz bands, respectively.
investment into Ethio Telecom, a process which is Meanwhile, all three operators – Ethio Telecom and the
running concurrently to the allocation of new licenses. two new licensees – will reportedly be allocated 20MHz
Full terms for new entrants were not disclosed by apiece in the 2100MHz band and further 20MHz block
the authority, but various media reports over the in the 2600MHz band. Meanwhile, information was
last two years have speculated these could include also forthcoming regarding coverage requirements,
commitments related to using domestic companies with it reported that the two new operators will be
for specific infrastructure, and restrictions or bans on tasked with reaching 25% population coverage within a
launch of mobile money services. year of entering the country’s telecoms sector. Looking
(November 27, 2020) mobileworldlive.com further ahead, the duo will be expected to cover 40%
of Ethiopians within two years, 55% in three years, 70%
The Prime Minister Abiy Ahmed has directed his in four years and 80% in five years, with an ultimate
macroeconomic reform team and members of the coverage target of 97% set for 15 years after their
Privatization Advisory Council to press ahead with respective launches.
both the liberalization of the telecoms market via the (November 4, 2020) commsupdate.com

86 NOVEMBER 2020