Page 118 - SAMENA Trends - Oct-Nov 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

millimeter wave (mmWave) frequencies as well as the from non-telecom sources. The decision included
3.7GHz-4.2GHz band, the L-band (1427MHz-1518MHz) a demand for licensees to pay a decade’s worth of
and the 470MHz-582MHz band. India’s multi-band 5G backdated dues plus penalties and interest (including
spectrum auction of summer 2022 concluded with interest on the penalties) within three months but,
Reliance Jio Infocomm (Jio), Bharti Airtel, Vodafone crucially, did not specify the exact amounts owed.
Idea (Vi) and Adani Data Networks spending a total of Exacerbating the issue, the Supreme Court refused to
INR1.5 trillion on frequencies in the 700MHz, 800MHz, provide clarification on its instructions, treating any such
1800MHz, 2100MHz, 3.5GHz and 26GHz bands. The requests as attempts to circumvent its order. As such,
next auction is scheduled near to the expiration dates the DoT hastily scrambled to calculate the dues owed
of certain Airtel and Vi licenses in circles such as West by each operator, and the amounts it originally asked
Bengal, Assam, Bihar and Odisha. for were substantially higher than the self-assessments
(October 17, 2023) , The Economic Times carried out by the telcos. According to the providers,
the DoT had made arithmetical errors in determining
The Supreme Court has agreed to hear petitions filed the amount owed which were then made worse by the
by mobile providers Bharti Airtel and Vodafone Idea (Vi) application of interest and additional fees. Airtel, for
regarding the alleged miscalculation of their Adjusted example, estimated that it owed around INR130 billion
Gross Revenue (AGR) dues. The dispute dates back to (USD1.56 billion) but the DoT sought INR440 billion
the apex court’s October 2019 decision to uphold the from the operator. Requests filed by the operators to
Department of Telecommunications’ (DoT’s) definition correct these mistakes were rejected by the Supreme
of AGR – the figure upon which various license and Court in mid-2021. (October 10, 2023) The Financial Express
spectrum fees are based – which included revenues

Indonesian mobile network operators (MNOs), working freeing up 90MHz of ‘digital dividend’ spectrum in the
in tandem with the Ministry of Communication and 700MHz band that was previously used for analogue
Informatics (MCI), have established a task force broadcasting. Meanwhile, the 26GHz frequency band is
charged with coming up with new ideas and incentives currently still ‘idle’, so theoretically it could be used for
Indonesia to accelerate the implementation of 5G technology mobile broadband. (November 17, 2023) www.commsupdate.com
in Indonesia. IndoTelko writes that the task force is
particularly interested in seeking a new formula ‘to The Ministry of Communication and Informatics (MCI)
balance technical, technological and financial issues’. plans to auction 5G-suitable mobile spectrum in the
Specifically, the financial red tape concerns the Non-Tax 700MHz and 26GHz bands in the near future in a bid to
State Revenue (PNBP) derived from the 5G frequencies make the nation’s 5G internet speed ‘closer to developed
that will be allocated to MNOs. Under the current countries. Having carried out a public consultation
framework, telecoms operators include frequency- ‘Draft Regulation of the Minister of Communication
related PNBP payments as ‘regulatory charges’ which and Information on the Use of the Radio Frequency
are currently equivalent to 11%-12% of annual revenue (or Spectrum in the 700MHz Radio Frequency Band and
14%-15% if there are additional managed frequencies). the 26GHz Radio Frequency Band’, the ministry aims to
However, the MNOs argue that in order to retain their auction off bands in the 703MHz-748MHz (FDD) range
profitability levels that figure needs to be capped at <10% paired with 758MHz-803MHz, alongside 26GHz (TDD)
and, as such, are requesting this incentive as part of the spectrum in the 24.25GHz-25.85GHz band ‘for the
MCI’s ‘Draft Ministerial Regulation (RPM) concerning purposes of providing cellular mobile networks.
the Use of Radio Spectrum in the 700MHz and 26GHz (October 9, 2023) www.commsupdate.com
Frequency Bands’. It is understood that the ministry is

The Italian government has rejected an alternative initiative is not part of the government’s intentions.’
proposal from a group of minority shareholders of TIM had earlier confirmed that it had received a rival
Telecom Italia (TIM) regarding the downsizing of its proposal from Merlyn Advisors and RN Capital Partners,
operations. Rome has reaffirmed its commitment to which represent less than 3% of TIM’s share ownership.
Italy the previously agreed plan under which it will partner Reuters says the alternative plan would see TIM
US investment company Kohlberg Kravis Roberts & Co retaining its domestic networks business and instead
(KKR) to acquire TIM’s networks business NetCo. Media selling its Italian retail operations, as well as its Brazilian
quotes a government source as saying: ‘Any other subsidiary TIM Brasil. TIM’s largest shareholder, Vivendi

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