Page 133 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

The government of Hong Kong has awarded 5G welcomes the government’s decision to set modest
spectrum licenses in the 3.5GHz band to the territory’s reserve and round prices for the auction to facilitate
four incumbent cellcos. The auction for 200MHz of the development of 5G in Hong Kong. We are pleased
frequencies raised a total of HKD1.006 billion (USD128 that, as a result of rational biddings, HKT is able to
million) in spectrum utilization fees (SUFs). China obtain 50MHz of contiguous spectrum at a price that
Mobile Hong Kong (CMHK) paid HKD300 million for is beneficial to the industry as well as the mobile
60MHz of spectrum, while HKT and SmarTone offered users. This reasonable SUF level represents additional
HKD252 million each for 50MHz, and Hutchison 3 incentives for the industry to invest in 5G development
won 40MHz with a bid of HKD202 million. Spectrum and promote the adoption of 5G by the public.’
will be handed over on 1 April 2020 and licenses are (October 15, 2019) telegeography.com
valid for 15 years. In a press release HKT stated: ‘HKT

Following a ruling by India’s supreme court which upheld India’s Cabinet has approved a revival package for
a demand by the Department of Telecommunications the country’s two ailing state-owned telcos – Bharat
(DoT), the nation’s mobile network operators (MNOs) Sanchar Nigam Limited (BSNL) and Mahanagar
will be required to pay a total of INR920 billion Telephone Nigam Limited (MTNL) – which includes an
India (USD12.9 billion) in overdue levies and interest. With INR150 million (USD2.1 billion) infusion via sovereign
MNOs in India required to pay the regulator between
bonds, as well as a voluntary retirement scheme (VRS),
3% and 5% of their adjusted gross revenue in usage the allocation of 4G spectrum and a merger of the
charges for frequencies, plus 8% of AGR (Adjusted two operators. The government has also agreed to
Gross Revenue) as license fees, the DoT and cellcos an INR380 billion asset monetization scheme over a
have been at odds over the definition of AGR. While period of four years, while it was noted that LTE-suitable
operators are said to have argued that AGR comprise frequencies will be allocated administratively at 2016
just revenue accrued from core services, the DoT for prices. India’s telecom minister Ravi Shankar Prasad
its part has claimed it should include all revenue. In was cited as saying of the matter: ‘Neither BSNL and
the wake of the court decision, India’s third largest MTNL are being closed, nor being disinvested nor hived
cellco by subscribers, Bharti Airtel, put out a statement off by the third party, but the government wants to
noting: ‘This decision has come at a time when the make them professional.’ It is understood that MTNL,
[telecoms] sector is facing severe financial stress which operates in Delhi and Mumbai, will initially
and may further weaken the viability of the sector as become a subsidiary of BSNL until such time as both
a whole.’ Meanwhile, the Reuters report also cites of the companies are fully merged, with the minister
mobile market leader Vodafone Idea as arguing that specifically confirming: ‘MTNL will act as a subsidiary
the court’s determination was damaging for India’s of BSNL.’
telecom industry, with it saying: ‘Today’s order has (October 24, 2019) The Economic Times
huge impact on two private operators while most of
the other impacted operators have exited the sector.’
(October 25, 2019) reuters.com

Government adviser Pierre Goerens has revealed in an Goerens confirmed an auction now looks the most likely
interview with Luxemburger Wort that the country’s method for awarding spectrum in 2020, especially as
5G spectrum allocation will not be completed by the a ‘beauty contest’ process resulted in a legal dispute
end of this year as originally planned, following higher- when previously used to award 3G spectrum in 2006.
Luxembourg than-expected demand from potential candidates for (October 22, 2019) telegeography.com
frequencies in the 700MHz and 3.6GHz bands. Mr.

The National Regulatory Agency for Electronic provider of mobile services in the breakaway region
Communications and Information Technology of Transnistria (also known as Trans-Dniester. In a
(Agentia Nationala pentru Reglementare in White Paper criticizing the plans, Orange Moldova and
Comunicatii Electronice si Tehnologia Informatiei, Moldcell revealed that an amendment to the Electronic
Moldova ANRCETI) is planning to issue an operating license to Communications Act had been drafted to empower
Sheriff Corporation’s InterDnestrCom (IDC), the sole ANRCETI to reduce the area of coverage for the 15-year

133 OCTOBER 2019