Page 109 - SAMENA Trends - October-December 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

VEON and Engro Corp Announce Strategic Partnership for Telecommuni-

cations Infrastructure

VEON Ltd a global digital operator, announces that it is entering
into a strategic partnership with Engro Corporation Limited with
respect to the pooling and management of its infrastructure
assets, starting in Pakistan. In the first phase of the partnership,
VEON’s infrastructure assets housed under Deodar (Private)
Limited (“Deodar”), a VEON Group company wholly owned by
VEON through its subsidiary PMCL, will vest into Engro Corp’s
subsidiary, Engro Connect, via a scheme of arrangement. VEON’s
digital operator Jazz will continue to lease Deodar’s extensive
infrastructure for the provision of nationwide mobile voice and
data services under a long-term partnership agreement. The
partnership marks a significant milestone in VEON's asset-
light strategy, aimed at increasing the Company’s focus on
the development of services-focused businesses in line with
VEON’s digital operator model. The arrangement is subject to the
customary legal and regulatory approvals in Pakistan. As part of
the arrangement, Engro will pay Jazz an amount of approximately
USD 188 million and will guarantee the repayment of Deodar’s
intercompany debt in the amount of USD 375 million. “This
strategic partnership is a pivotal move in advancing VEON's asset-
light strategy. The traditional vertically integrated telco model
is no longer viable for operators, neither is it conducive to the
sustainable growth of developing economies. Our collaboration
with Engro Corp, starting in Pakistan, our largest market, will
empower Jazz to focus on innovative digital services and cutting- shareholder value creation and new business models across our
edge technologies that serve Pakistan’s digital ambition. It will markets,” said Kaan Terzioglu, VEON Group CEO and Chairman of
also help VEON showcase the wide range of opportunities for Jazz Board.

African Ministers Urge Private Sector Collaboration Amid Regulatory
Criticisms

African ministers highlighted the the 2Africa subsea cable system, which businesses to operate. “Our responsibility
importance of collaboration with the spans 45,000km, linking Africa to Europe, is to facilitate the private sector as key
private sector to drive the technology Asia, and the Middle East. Reflecting on players in advancing technology. The
sector and strengthen economies across this, Tambeayuk said, “If I think about the government only intervenes in areas
the continent, despite criticism from journey we’ve been on over the past four where the private sector has not yet
global companies such as Meta regarding years with the 2Africa cable, there’s been shown interest. In these cases, we take the
over-regulation and taxation by African significant interest and support from initiative to highlight the area, understand
governments. Speaking on a panel at Africa governments, but we’ve also encountered the ecosystem, and remove barriers,” said
Tech Festival, Meta’s Director of Public numerous challenges that create Masanza. Kenya’s Cabinet Secretary for the
Policy, Fargani Tambeayuk, cautioned roadblocks and hinder our investments.” Ministry of Information, Communication
African regulators about policies that In a separate panel today (13 November), and the Digital Economy, Dr. Margaret
could stifle emerging technologies like Uganda’s Minister for Science, Technology Nyambura Ndung’u (pictured, last), added
AI. He cited Cameroon as an example, and Innovation, Monica Musenero that the Kenyan government works closely
where subsea cable providers must go Masanza (pictured, second), defended with the private sector, as both sides need
through mobile network operators to land regulators, asserting that the public and each other to broaden connectivity. She
their cables, creating what he described private sectors share a “joint interest in highlighted Kenya’s Universal Service Fund,
as a “monopoly” and a “roadblock” to making ecosystems favorable for users, which collaborates with the private sector
expanding connectivity. Meta is among developers, and businesses,” adding that to direct investment. The government is
several global companies that invested in governments create the foundation for also undertaking a nearly 50-50 project to

109 OCT-DEC 2024