Page 92 - SAMENA Trends - November 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

The State Commission for Radio Frequencies (SCRF) operator FreshTel in April 2015. Rostelecom aimed
has no intention of approving 5G frequency licenses to convert this spectrum to technology-neutral/5G
in the 3.4GHz-3.6GHz band for WiMAX fixed-wireless mobile usage, whilst MegaFon acquired 3500MHz
broadband operators FreshTel and Neosprint – licenses in Moscow/St Petersburg in 2018/2019 via
subsidiaries of Rostelecom and MegaFon, respectively its Neosprint takeover, but permission was not given to
– despite their ownership of spectrum suitable for convert frequencies from fixed-wireless to commercial
conversion to 5G, Vedomosti reported. The current 5G. The telecoms ministry has proposed that existing
WiMAX spectrum licenses expire in March 2021, the 3.5GHz fixed-wireless licenses will be returned ahead
report added. The Rostelecom/MegaFon 5G shared of refarming for initial 5G licenses, potentially in 2021
infrastructure joint venture New Digital Solutions, in a limited range before the eventual freeing up of
established in January 2019, was aimed at utilizing the the wider 3.4GHz-3.8GHz band involving the defence
two groups’ WiMAX spectrum for 5G. TeleGeography’s ministry and security forces at an as-yet unknown
GlobalComms Database notes that frequencies in date. The bulk of the 3.4GHz-3.8GHz range is occupied
the 3500MHz band in 75 regions were acquired by by satellite communications for government agencies.
Rostelecom via its takeover of struggling WIMAX (November 18, 2020) commsupdate.com

Slovakia has completed its auction of 5G-capable range. Slovak Telekom spent EUR32.66 million for a
700MHz spectrum as well as spare frequencies in 2×10MHz license in the 700MHz band and 2×3MHz of
the 900MHz and 1800MHz bands. The sale raised frequencies at 1800MHz. 4ka (SWAN Mobile) did not
a total of EUR100.23 million (USD119 million), with participate in the bidding for 700MHz spectrum, saying
Slovakia each of the three available 700MHz licenses selling it was too expensive for a smaller operator, and instead
for EUR32 million or above. Orange paid EUR33.63
paid EUR550,000 for 2×3MHz in the 1800MHz range.
million for 2×10MHz in the 700MHz range, while O2 bid 700MHz concessions are valid until the end of 2040,
a total of EUR33.39 million for 2×10MHz at 700MHz, while the lower band spectrum can be used until end-
2×4.2MHz at 900MHz and 2×3MHz in the 1800MHz 2025. (November 24, 2020) commsupdate.com

The three mobile network operators (MNOs) – SK based on a combination of actual and estimated sales
Telecom, KT Corp and LG Uplus – have asked the for allocated frequencies. South Korea’s cellcos have
government to disclose information related to the insisted that the charges for the spectrum reallocation
pricing of forthcoming frequency reallocations. The should be made in accordance with the legally-defined
South Korea development comes as the MNOs and the government calculation method, and on this basis they have
presented a joint proposal suggesting that reasonable
have seemingly reached an impasse over the matter
of the costs for reallocating spectrum currently used fees for the spectrum reallocation would be around
for 3G and 4G services which is scheduled to expire KRW1.6 trillion (USD1.44 billion) over five years. Earlier
in June 2021. In a joint press release issued, the this month, local press reports suggested that the
trio asked the Ministry of Science and ICT (MSIT) to government could seek as much as KRW5.5 trillion
disclose the methodology it used to calculate the for the frequencies, prompting the MNOs to suggest
frequency allocation price over the past ten years. that an auction be held to redistribute the frequencies
The operators have reportedly asked that the MSIT – arguing that the government’s price offer did not
clearly explain the reason why its calculation method accurately reflect the spectrum’s current economic
for the frequency reallocation price is different from value. ‘An auction is the most definite way to accurately
the principle stipulated under the Radio Waves Act and determine the market value of the spectrum,’ they were
the standards it previously used. Under the current cited as saying in a joint statement.
enforcement ordinance of the Radio Waves Act, the (November 13, 2020) The Korea Bizwire
cost of frequency reallocation should be calculated

Sweden’s Post and Telecom Agency (Post & to ban its equipment from Swedish 5G networks,
Telestyrelsen, PTS) says it plans to go ahead with but the regulator says the appeal is a matter for the
its 5G spectrum auction as planned despite a last- Administrative Court and will not derail its sale of
minute appeal from Huawei Technologies Sweden. The 2.3GHz and 2.5GHz frequencies, which is due to begin
Sweden Chinese vendor is unhappy with a government decision 10 November. (November 9, 2020) commsupdate.com

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