Page 130 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

• Launch of electronic auction: April 2020 Further, newcomer(s) will be allowed to compete for
• Issue of the decision on the allocation of radio another 5MHz, but if none of the new entrants in the
frequencies: July 2020. first auction round show interest in this reserved block,
The schedule is, however, only indicative and therefore it will open it up and offer it to all auction participants.
subject to change. In June this year the CTU published Concurrently, in the 3.5GHz band the CTU says it will
the draft plan of the 5G auction, whose terms and set ‘a new spectral limit for the new operator compared
conditions are based on previously published principles to the existing operators’. Additional Ts&Cs include
which the regulator has documented over the past the rule that any existing operators participating in
year in its efforts to maximize the transparency of the the 700MHz band auction will assume a national
selection process. The regulator notes that, in order roaming commitment (valid for six years), and what the
to fulfil one of the main objectives of the auction – watchdog terms ‘development criteria that ensure that
which is to deepen competition on the electronic frequencies are handled efficiently’.
communications market – it is reserving a 2×10MHz (October 18, 2019) telegeography.com
block of spectrum at 700MHz for a new operator(s).

Ethiopia could have no fewer than three telecoms knowledge of the process. The issuing of licenses will
operators active as early as April 2020, if the current end a state monopoly and open up one of the world’s
plans to liberalize the telecoms sector are realized. last major closed telecoms markets in the country
With a view to preparing for market liberalization, of around 100 million. Prime Minister Abiy Ahmed
Ethiopia the country’s new telecoms regulator, the Ethiopian launched a push to liberalize the country’s economy
Communications Authority (ECA), is reported to have last year. The communications regulator, formed after
launched a public consultation process ahead of parliament passed a law covering the liberalization
issuing any new concessions. It is understood that of the sector, will hold a meeting on Nov. 12 in the
the ECA aims to gather feedback from interested Ethiopian capital to answer questions of interested
parties regarding the proposed legal framework which companies, Balcha said. Vodafone, South African
would pave the way for the entrance of two new operator MTN, France’s Orange and Etisalat of the
telecoms providers, with a deadline for submissions United Arab Emirates are likely to be among the leading
of 22 November having been set. Meanwhile, Reuters contenders vying for entry into the Ethiopian market.
reports that the ECA will hold a meeting in Addis Ababa (October 22, 2019) af.reuters.com
on 12 November to answer questions regarding its
liberalization plans from interested parties. Should the The Ethiopian government could cede majority control
regulator stick to its proposed timetable, it expects to of its telecoms monopoly once it has completed an
issue licenses in March 2020, with ECA director general initial phase of privatization in 2020. In an interview
Balcha Reba cited as saying at a press briefing: ‘We Balcha Reba, Director General at the Ethiopian
expect the country to have three telecom operators Communications Authority, said the government
starting from April.’ Earlier this year, in June 2019 could release additional shares after concluding a
the Ethiopian parliament approved the ‘Proclamation sale of a 49 per cent stake in the operator, which is
for the Regulation of Communications Services’, new expected to happen in 2020. However, Reba added the
legislation which underpins the planned liberalization market would have to become more competitive and
of the country’s telecoms sector – which currently mature before an additional sale could be considered.
remains a monopoly of Ethio Telecom – and also Ethiopia’s telecoms sector is set to undergo a major
allowed for the establishment of the independent shake-up in 2020. On top of the privatization plan,
regulatory body, the ECA, which was subsequently the government will also split the operator into two
created in September 2019. (October 24, 2019) Addis Fortune businesses, separating services and retail from its
mobile and fixed network infrastructure assets. The
Ethiopia plans to award two telecoms licenses to country is also set to break Ethio Telecom’s monopoly
multinational mobile companies by April 2020, the by issuing two mobile operating licenses in March
new communications regulator said on Tuesday, an 2020. In the interview, Reba indicated the market could
apparent delay in the timeline officials had previously be opened up further, with the sale of more licenses in
set. Balcha Reba, director general of the Ethiopian the long-term. This is likely welcome news for Orange,
Communications Authority, gave the date at a press Vodacom and MTN, which have all indicated they would
conference. In June, Reuters reported that Ethiopia be interested in entering Ethiopia, one of the last major
would issue the licenses by the end of the year, quoting markets on the continent that is currently closed off to
Ethiopian officials and telecoms executives with direct international operators. (October 10, 2019) Bloomberg

130 OCTOBER 2019