Page 140 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

(backed by Alexei Mordashov) holds 22.0% and ABR VTB and Vnesheconombank (current owner of a 3.95%
Investments (part of Rossiya Bank) 5.5%. As previously Rostelecom stake) must retain control of more than
reported, Rostelecom’s Tele2 equity increase will involve 50% of Rostelecom’s ordinary shares. Furthermore, VTB
issuing Rostelecom shares to existing Tele2 owners, will be banned from selling Rostelecom shares for four
although only VTB has been mentioned in this context years, while the government may still veto transactions
so far, with the bank expecting to claim a Rostelecom on such shares after four years. Rostelecom will also
stake of up to 17%. The presidential decree confirms be given pre-emptive rights to repurchase securities.
that VTB will redeem an additional issue of Rostelecom The decree says that Rostelecom’s Tele2 buyout and
ordinary shares, although the total volume of additional the issue of additional Rostelecom shares should be
shares to be issued is not yet specified. The decree completed within six months. (October 8, 2019) TDaily
also ensures that the Russian Federation together with

The telecoms regulator, Infocomm Media Development covered by a standalone network by 2022 to ‘maintain
Authority (IMDA) has revised its plans for the allocation competitiveness in developing technology’. As such,
of 5G-suitable spectrum, saying it now intends all four it now aims to select two network operators to deploy
mobile network operators (MNOs) to roll out fifth- 5G using the 3.5GHz band, while the other two MNOs
Singapore generation networks starting from next year, up from its will be assigned additional bandwidth to upgrade their
existing 4G LTE infrastructure to 5G. The plans suggest
original plan to have just two. In May 2019 IMDA called
on interested telcos to submit detailed proposals on a reserve of SGD55 million (USD40 million) for each
their 5G deployment plans, suggesting that by 2020 at bandwidth allocation (for a standalone network), with
least two networks would be rolled out in the city-state. a view to awarding the spectrum by the middle of 2020.
At the time the regulator said it intended to assign The operators will also be given the millimeter wave
5G-suitable spectrum to ‘two winning submissions’ (mmWave) spectrum in the 26GHz and 28GHz bands
through a Call For Proposal (CFP) regulatory instrument, (free of any license fees), although an annual utilization
rather than conducting an auction of spectrum, with fee of SGD1.232 million will apply for each operator.
telcos’ proposals assessed instead on the quality of Meanwhile, operators of the two smaller 5G networks
their deployment schedules. Its CFP included a number will only be given the mmWave spectrum (but will be
of stipulations, including: 50% 5G network coverage by subject to the same utilization fees). The spectrum
end-2022; wholesale MVNO 5G access; and specific licenses will have a minimum duration of 16 years,
financial capability requirements to support the rollout. according to the regulator’s presentation. Commenting,
IMDA also revealed its plans to allocate spectrum in IMDA communications manager Mr. S Iswaran said the
the 3.5GHz, 26GHz and 28GHz bands for 5G in the decision to opt for all four MNOs having 5G capability
initial tranche of spectrum allocation to telcos, saying is driven by a need to ‘secure Singapore’s competitive
it would be sufficient for at least two nationwide 5G edge’, adding that he believes the pricing strategy is in
networks. However, the regulator now wants all four of the ‘mid-range’ of those in other countries.
its carriers – Singtel, StarHub, M1 and TPG (Singapore) (October 17, 2019) telegeography.com
– to introduce 5G services, with half the city-state

The National Communications Authority (NCA) has as the lack of a formal licensing system has created
launched a consultation process for the country’s first disorder in the telecoms market and hindered further
licensing regime for the ICT and telecoms sector. The investment. Three types of permits exist under the new
draft Unified Licensing Framework (ULF) would allow the ULF, namely Communications Infrastructure Provider
Somalia provision of multiple services through the introduction License (CIP), Application and Services Provider
of service and technology-neutral licenses that would License (ASP), and Communications Infrastructure and
promote innovation and competition. The move is Services Provider License (CISP). Stakeholders have
aimed at bringing an end to uncertainties in one of been given until 5 December to submit comments on
the most developed sectors of the Somalian economy, the ULF. (October 22, 2019) telegeography.com

140 OCTOBER 2019