Page 148 - SAMENA Trends - September-October 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

Canada Readies Rogers, Shaw Mediation

Canada’s Competition Tribunal set a timeline of late October for
the start of mediation between authorities and the parties involved
in a proposed buyout of Shaw Communications by rival Rogers
Communications. The controversial takeover would combine
the companies. It has been continually opposed by the country’s
Commissioner of Competition Matthew Boswell, despite attempts
to appease concerns with a deal to sell Shaw Communications’
Freedom Mobile should their deal go through. In a notification, the
tribunal noted the mediation was a confidential process which
“assists the litigating parties to attempt to negotiate a consensual
resolution to their dispute”. If it fails, the case will likely have to
be decided by the tribunal. The proposed deal is already behind
schedule. When announced in March 2021, it was expected to close
in the first half of 2022, though the operators announced in May benefits of investment in digital infrastructure and job creation.
the process was on hold while they tried to negotiate a settlement The competition authority’s concerns are based around a cut in
to get it through the authority. In numerous statements Rogers consumer choice and potential higher prices, which the operators
Communications and Shaw Communications have asserted the argue would be allayed by the divestment of Freedom Mobile.
takeover is in the best interests of consumers, citing perceived

Anatel Orders Vivo to Extend 4G Coverage Instead of Paying a Fine

Brazil’s National Telecommunications Agency (Agencia Nacional with the matter cannot result from RAN sharing, network rental
de Telecomunicacoes, Anatel) has offered Telefonica Brasil (Vivo) agreements or industrial exploitation contracts. Further, the sum
the opportunity to extend its 4G network rather than pay a fine of of the costs related to the installation/maintenance of the must
BRL45.2 million (USD8.5 million). The watchdog explains: ‘The be greater than, or equal to, the amount of the fine. The precise
obligation-to-do sanction was evaluated by the Agency as the indiscretion that prompted Vivo to be penalized has not been
most appropriate measure for the specific case, in a discretionary disclosed. It is unclear if Anatel’s action is related to a recent
judgement considering the factual and socioeconomic context decision by the Federal Court of Goias to fine Vivo for poor quality
and the relevance to the public interest.’ As per the statement, of service (QoS) in that state between 2015 and 2019. (Note: as
Anatel wants 70% of the 4G expansion work to take place in the Goias is located in the Center-West Region this may not be the
underserved North-east region of the country. Vivo’s compliance case.)

Malaysia Secures Backing for National 5G Network

Malaysian authorities made progress in divvying up ownership
of a controversial national 5G wholesale network as four major
operators agreed to acquire a combined 65 per cent stake. Celcom
Axiata, Telekom Malaysia and YTL Communications will each
take a 17.5 per cent stake in Digital Nasional Berhad (DNB). Digi
Malaysia signed up for 12.5 per cent, with the Ministry of Finance
retaining 35 per cent. Digi’s holding will increase to 17.5 per cent
if a proposed merger with Celcom doesn’t close by mid-2023, with
the Ministry’s stake dropping to 30 per cent. The operator agreed
to pay MYR178.5 million ($38.4 million) for its stake. Digi stated
all stakeholders made significant progress in discussions related
to the access agreements and regulatory framework. Maxis and
U-Mobile previously declined to take stakes in DNB, forcing it
to renegotiate shareholding arrangements with the remaining
operators.

148 SEPTEMBER-OCTOBER 2022