Page 89 - SAMENA Trends - January 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

the OECD statistics do not paint the term investment. Securing additional because it was able to acquire several
prettiest of connectivity pictures in the UK, funds from third-parties is becoming a distressed fiber players and merge them
momentum has been shifting in the right critical component of the mix, especially into a single business. Some ambitious
direction. From a political perspective, the with more alt-nets appearing. In the short- and cash-rich parties might look at the
idea of gigabit speed broadband has taken term, the emergence of ‘alt-nets’ should potentially fragmented market in the UK
hold. It might turn out to be nothing more only be viewed as a good thing. More as another opportunity to consolidate and
than empty campaign promises, but it has providers will create more value for the create another scaled player at some point
raised the issue of fiber connectivity and the consumer through increased competition in the future. Although this move should
digital divide to the national conversation. and providing the telcos incentive to invest not be considered the silver bullet from
Looking at the consumer, there is certainly in fiber. However, you have to wonder Ofcom, it is certainly very encouraging.
more appetite. This will be partly down whether the number of alt-nets in the UK The UK telecoms industry has been calling
to the consumer being more educated on is sustainable in the long-run. The more for regulatory reform for some time in
the different connectivity options, Ofcom providers there are, the more fragmented pursuit of greater levels of certainty as well
rules killing off dubious and misleading a market becomes. Fragmentation is as a more favorable investment climate in
fiber claims from ISPs and the price of the enemy of scale, making it more the UK. What we have here is an excellent
fiber connectivity dropping in recent years. difficult to aggressively pursue expensive example of collaboration. For the digital
And thanks to increased demand from investments. There is of course a risk society of tomorrow to be more than a
the consumer, the UK fiber landscape is of over-build in certain markets, though pipe dream, industry will have to come
looking like a more attractive investment. the presence of these alt-nets creates an together with the investment community
Goldman Sachs purchasing CityFibre is interesting M&A future for the UK. CityFibre and Government, presenting a united front.
evidence of this, but other financial players is a primary example of what happens This proposal is perhaps evidence the
are becoming increasing interested in when a market becomes too fragmented. rhetoric is perhaps evolving into reality.
communications infrastructure as a long- This is a company which only exists

Malaysia Details 5G Spectrum Assignment Plan

expected to begin by the third quarter of 2020. Following a
public inquiry and release of a final report in September last year,
the Malaysian Communications and Multimedia Commission
(MCMC) identified the 700MHz, 3.5GHz, 26GHz and 28GHz
bands as spectrum frequencies for the rollout of 5G. Taking a
new approach, MCMC is considering allocating the 700MHz and
3.5GHz bands to a single entity comprising a consortium formed
by multiple licensees, instead of individual licensees, in an effort
to lower capex by minimizing costs and preventing the duplication
of infrastructure. It will hold a tender. Initially it will assign only
2x30MHz in the 700MHz band and 100MHz in the 3.5GHz band.
Frequencies in the 26GHz and 28GHz bands will be considered for
assignment at a later date. MCMC said the existing allocation of
4G spectrum will be maintained, which includes the assignment
Malaysia’s telecoms regulator confirmed plans to allocate 5G of the 2.3GHz and 2.6GHz bands until December 2021, with a
spectrum across four bands, with commercial deployments review of these bands planned in 2021.

Chad Exempts Internet Services from Cellco Tax

The Chadian government has exempted 2020 – revised Article 28 of the document that sites in areas targeted by the universal
fixed communications and internet to exclude fixed communications and service fund (USF) are no longer subject
services from a levy on monthly turnover internet services from an 18% tax on to fees, which range up to XAF2.5 million
as part of its 2020 budget, approved by the monthly revenue reported by mobile (USD4,240) per year, depending on the
parliament in late December 2019. The operators. Separately, the bill adjusted the location.
new budget – officially the Finance Act tax structure for towers (Article 826) so

89 JANUARY 2020