Page 157 - SAMENA Trends - September-October 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

Lebanon

The CEO of Lebanese cellco Alfa, Jad Nassif, has outlined a the first quarter of 2023’. Mr. Nassif also claimed that Alfa has full
‘network availability action plan’ to be implemented in coordination ‘technical readiness’ and ‘preparedness’ to launch 5G, disclosing
with the Ministry of Telecommunications (MoT), stating that that the operator has conducted 5G tests on eleven ‘live’ 5G sites in
currently ‘60% of Alfa sites enjoy a high service availability that Greater Beirut with 1.8Gbps data speeds. On another issue, Nassif
ranges between 90%-96% in regions such as Jbeil, Keserwan and commented on customer behavior following Lebanon’s recent
West Bekaa’, dropping to ‘less than 80% in other areas such as state-ordered telecoms service price increases. From 1 July Alfa
Beirut and Mrajeyoun’ giving an average network availability of and Touch effectively raised rates fivefold in local currency, despite
around 87%. The CEO said that the issue would be tackled on a locally-denominated wages having lost most of their value during
region-by-region basis to achieve a target network availability the country’s economic crisis, in a move which the operators
figure of ‘95% on average across Lebanon’. To assist this plan, he and the MoT deemed vital to return the sector to profitability and
added that ‘237 sites have been equipped so far with solar energy prevent networks from shutting down. Nassif stated that Alfa
and work is underway to equip 50 additional sites.’ The MoT is ‘witnessed a drop in data and voice services consumption in the
working with both Alfa and its fellow state-owned mobile operator first two months after the new tariffs came into effect … within our
Touch on network improvement plans, with the cellcos currently expectations’ but added: ‘Today, this consumption is stabilizing,
citing electricity outages and site thefts – including backhaul especially in terms of data, which indicates that the Lebanese are
cable theft – as the two largest factors negatively affecting their adapting to the adjustments in the sector which were inevitable to
services. Furthermore, the Alfa CEO claimed that his company will ensure continuity.’
launch VoLTE services ‘to 350,000 eligible [smartphone owners] in (September 27, 2022) www.commsupdate.com

Nepal

The Nepal Telecommunications Authority has prepared a draft capacity of firms to install updated technology, promote service
regulation that allows telecommunications service providers expansion and lessen overheads besides providing other benefits.
to merge. “Both voice telephone operators and internet service It will also boost the confidence of customers." Khanal added that
operators can go for merger once the proposed regulation comes they had recommended to the government to facilitate merger
into force,” said Purushottam Khanal, chairman of the country's of telecommunications operators. "We hope the government
telecom regulator. The authority has proposed to facilitate mergers provides incentives to merge like waiving capital gains tax. This
to streamline the telecommunications service industry. Currently, will encourage service providers to go for merger." According to
there is no guideline governing the merger of telecommunications the authority, there are 204 telecommunications service providers
operators. The authority has sent the draft regulation to the Ministry operating in the country. There are three voice telephone service
of Communication and Information Technology for its review. The providers—Nepal Telecom, Ncell and Smart Telecom—with 41.93
ministry will forward it to the cabinet for final approval. Sebantak million voice telephone subscribers as of mid-July, according to
Pokharel, spokesperson for the Ministry of Communication and the management information report of the authority. Among them,
Information Technology, said they received the draft two weeks Nepal Telecom accounts for 22.51 million subscribers, Ncell 17
ago. “We will hold discussions on the draft with the concerned million and Smart Telecom 2.37 million. Internet subscribers
stakeholders and reveal the terms in it after it is finalized,” he in the country number 38.42 million, of which 20.69 million are
said. “The ministry will send the draft to the cabinet once it is mobile broadband users of Nepal Telecom, 9.18 million Ncell
decided.” Khanal said a merger decision could be made by the internet subscribers, 146,382 Smart Telecom internet subscribers
annual general meeting of the telecommunications companies. and 8.39 million subscribers of other internet service providers.
He said the draft also contained a provision on forceful merger. “If "Huge amounts are spent on technology and equipment in the
the regulator orders problematic service providers to merge, they telecom sector, but many of the firms collapse, resulting in
have to proceed accordingly. Two or more telecommunications wastage of money and loss of jobs," Khanal said. "If such telecom
operators can merge. The regulation will benefit small companies service providers are sustained through merger and brought into
in rural areas too,” he said. "Consolidation will strengthen a competitive environment, it will benefit the company and the
telecommunications service providers in terms of investment, and customer too," he said. "There are 138 internet service providers
customers will be spared the hassle of changing service providers in Nepal resulting in a crowded playing field and making life hard
if their company closes down," Khanal said. "This will increase the for small-scale service providers." According to the management

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