Page 107 - SAMENA Trends - September-October 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

EC Investigates Poland’s 800 MHz License Award to Sferia In 2013

EC competition authorities have opened a retroactive investigation 800MHz allocation prior to the full auction in return for handing
into the Polish government’s award of 800MHz spectrum to fixed- back its existing license in the same band which it had used for
wireless operator Sferia, which formed part of the Cyfrowy Polsat/ CDMA-based fixed-wireless services. The firm had previously
Polkomtel group of companies. An EC statement says the probe taken legal action with the International Arbitration Court but
is to assess whether the allocation of frequencies was in line with agreed to drop the case and accept the new 800MHz concession.
EU state aid rules. The Commission says it received complaints Sferia’s license expired in 2018 when it refused to pay the PLN1.73
from a number of rival telcos, alleging that in 2013 the Polish billion renewal fee and the firm stopped offering retail services at
authorities allocated a 2×5MHz frequency block from the 800MHz the end of that year.
digital dividend band to Sferia without a selection procedure, at no
additional cost and without coverage obligations. Other operators
– including Orange, T-Mobile and Play – had to wait until a 2015
auction to acquire spectrum in the same band to support their 4G
LTE networks. They paid a total of PLN9.23 billion (equivalent to
USD2.5 billion at that time) for 800MHz and 2.6GHz frequencies,
including PLN8.61 billion just for the 800MHz spectrum alone,
with their licenses also subject to minimum coverage targets.
The EU regulatory framework for electronic communications
requires that member states treat all operators equally. The EC
statement reads: ‘At this stage and based on the information
available, the Commission’s preliminary view is that Sferia may
have been awarded by the Polish authorities 800MHz frequencies
on more favorable terms than other operators and that, hence, the
allocation may have amounted to state aid.’ Sferia was granted its

Incumbents All Launch Official Challenges To Czech 5G Auction

Czech mobile network operators (MNOs) claimed it had ‘found out from individual 700MHz and 3400MHz–3600MHz bands,
Vodafone and T-Mobile have reportedly companies’ that the complaints had been and confirmed its intention to boost
filed legal complaints against the regulator, submitted – specifically challenging such competition by licensing a new player in a
the Czech Telecommunications Office things as plans on national roaming and market that has long faced vocal criticism
(CTU’s) planned auction of 5G-suitable the low cap on 3400MHz–3600MHz from politicians and consumers for the
spectrum in the Prague courts, joining rival frequency allocations (which they say high cost of mobile services. Following
O2 Czech Republic which lodged its own will preclude gigabit speeds) – and that its public consultation on its proposals,
complaint with the European Commission the watchdog is aware of the situation. the regulator has highlighted a number of
(EC) over the terms and conditions of As previously reported by CommsUpdate, key aims of the tender. Whilst interested
the process in July. In an article dated on 7 August 2020 the CTU launched the bidders have until 30 September 2020
10 September, CTK News Agency tender to award radio frequencies in the to submit applications to take part in
the auction, the proposals met with
immediate skepticism and criticism from
the incumbents. In a statement issued
after the watchdog’s update, Vodafone
criticized the CTU saying: ‘Given the
mistakes and problems in the conditions, it
can be expected that the auction will result
in clashes at courts and also the European
Commission’. Rival T-Mobile also raised
concerns over the plan, which is seen as
not well prepared, with spokesman Jiri
Janecek saying: ‘We have to study the
conditions and ponder our next steps,
including possible charges’. O2 Czech
Republic, meanwhile, had already filed its
complaint with the EC by that date.

107 SEP-OCT 2020