Page 118 - SAMENA Trends - September-October 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

Bank’s telecom International Centre for Settlement of Investment network construction had not been met. Despite legal action
Disputes (ICSID) against Baghdad, on the basis that the Iraqi state from the two partners, full control of Korek was handed to local
breached international trade agreements by refusing Orange and investors in March 2019. As part of the legal proceedings the
its Kuwaiti partner Agility the ability to challenge the ruling of the partners accused Korek’s directors of mismanagement and
sector regulator the Communications and Media Commission misappropriation of millions of dollars of the company’s funds,
(CMC). As noted by TeleGeography’s GlobalComms Database, including using funnelled funds out of Korek to bribe CMC officials.
Orange and Agility acquired a 44% stake in Korek Telecom For example, Iraq Telecom claimed that two properties in London
via joint venture Iraq Telecom in 2011, with a call option that were purchased by an associate of one of the local shareholders
would allow the JV to acquire a 51% stake in July 2014. Shortly and then occupied by senior CMC officials and their families. For
before that date, however, the CMC ordered that the company’s their part, Korek accused Orange and Agility of running a ‘scorched
shareholding structure revert to its pre-2011 form, arguing that earth’ campaign, whilst the CMC has rejected all accusations of
obligations imposed by the regulator related to investment and impropriety. (October 15, 2020) commsupdate.com

Jordan

The Telecommunication Regulatory Commission (TRC) related to the provision of ‘traditional interface (TI) leased lines’.
has published decisions on market reviews of the fixed Similarly, Orange was designated a dominated licensee in several
telecommunications, mobile telecommunications and dedicated more markets – including the wholesale local access, wholesale
capacity markets. Regarding the mobile sector, the TRC splits broadband access, wholesale fixed voice termination and retail
the market into four relevant segments: retail mobile; wholesale fixed segments – and was subject to regulation.
mobile voice call termination, wholesale mobile SMS termination; (October 8, 2020) commsupdate.com
and wholesale market for mobile access and voice call origination
(MACO). Following its review of the market the TRC ruled that The Telecom Regulatory Commission (TRC) has issued a
neither the retail or MACO segments fulfilled the criteria for the statement confirming that it has received a request from an
imposition of ex ante regulation. As each mobile network operator unnamed Jordanian company for permission to obtain the
(MNO) is responsible for terminating calls and SMS on their own necessary licenses to establish and operate a mobile network
networks and hold monopolies on such operations, all three were using 4G technologies. The watchdog notes that the initial
designated as being dominant licensees, as were future MNOs request lacked certain technical details and, as such, the TRC
and MVNOs. As such, all licensees are subject to regulatory has requested that the company submit an integrated technical
obligations including the provision of access upon reasonable study that includes: details of the network to be established and
request, transparency, non-discrimination and accounting operated, any potential contracts with any manufacturers or
separation. The TRC’s review of designated capacity markets operators and the services. This will help the authority determine
found that none of the segments required ex ante regulation. the necessary regulatory requirements in a manner that does not
However, Orange Jordan was designated as a dominant licensee conflict with the maintenance of the competitive process in the
in several segments, and is required to comply with price controls market. (September 21, 2020) commsupdate.com

Lebanon

Lebanon’s National News Agency reports that management has been managed on behalf of the government by Kuwait-
responsibility for state-owned mobile operator Touch Lebanon based Zain (which owns 100% of local management firm Mobile
– currently managed by Zain Group – will be handed over Telecommunications Company Lebanon), while Alfa had been
to the government on 30 October 2020. In early September, managed by Egyptian-owned Orascom Telecom Lebanon (OTL)
Lebanon’s other state-owned cellco, Alfa (registered as Mobile since February 2009. Naguib Sawiris’ Orascom Investment
Interim Company 1 [MIC 1]), became officially managed by the Holding (OIH, formerly Orascom Telecom Media & Technology
government via the Ministry of Telecommunications (MoT) in Holding) is the parent of OTL. A reformed Lebanese government
accordance with a Cabinet resolution in May. The management will aim to launch a new tender for mobile operator management
transfer of Touch (‘MIC 2’) had been expected to follow later contracts, hoping to attract interest from other major international
in September but was delayed by a month. TeleGeography’s mobile companies. Zain and OIH/OTL will potentially bid in the
GlobalComms Database notes that since June 2004 Touch tender, although unconfirmed. The National News Agency writes

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