Intelecon Regulatory News
 

March 4, 2010

Brazil: Government to Study Joint Ventures for Broadband Program Roll-out

According to a report from Business News Americas, the government of Brazil may study the use of joint ventures with telecommunications operators to implement the national broadband program. The program is part of the government's plan to have 90 million broadband connections by 2014.

Communications minister Hélio Costa said that the program will be assessed next week by government officials. Costa says the government will play an active role in extending telecommunications infrastructure to unserved areas, while the operators could be responsible for selling services to end-users.

The government is also considering a different approach, led by the planning ministry's logistics and IT secretary Rogério Santanna, which would see the government competing with telecommunications operators.

March 1, 2010

Zimbabwe: Regulator Commits USD 3.0 Million from USF

The Sunday Mail reports that the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has committed USD 3.0 million from the Universal Services Fund (USF) to implement eight projects.

The USF is financed through a 2.0% levy on the gross earnings of all licensed telecommunications operators. The funds are to be used for expanding services in remote and under-serviced areas. Potraz consults with operators and seeks their agreement on projects to be implemented.

Potraz director-general Charles Sibanda said, “eight projects were identified in each province. It is now left to the operators to implement them”.

Sibanda said that the Ministry of Information Communication Technology had already approved the projects.

“The first phase of the projects entails expanding the networks to areas which were previously unserviced. If the areas are now reachable, then we can move on to sponsor individual projects such as internet cafes,” Sibanda added.

The hyperinflationary environment experienced by Zimbabwe in recent years played a role in preventing the USF, which has existed for over five years, from funding large projects. However, mobile operators, such as Econet and Telecel, have already extended their networks significantly. Econet aims to increase its subscriber base to over five million by mid-year, and expects to add up to 200 base stations to its network.

February 19, 2010

Uganda: MTN and UCC Have 30 Days to Resolve Dispute

According to a report from The Monitor, Uganda's High Court gave MTN Uganda and the Uganda Communication Commission (UCC) 30 days to resolve a dispute over interconnection rates.

MTN filed suit against the UCC, challenging the implementation of uniform interconnection tariffs for all operators. In late 2009, a court injunction barred the UCC from setting uniform interconnection rates at USD 0.065 for mobile, USD 0.062 for fixed phones and USD 0.007 for SMS. Currently, telecommunication companies charge each other between USD 0.05 and USD 0.089 for interconnection. In the existing system, rates are negotiated between each operator and are not imposed by the UCC.

MTN claims that the UCC can only set rates if there has been a dispute between operators, which it says has not happened. The UCC says that, “there was evidence of difficulties” in interconnection negotiations. The regulator claimed that the objective of establishing uniform rates is to ensure fairness. The UCC also stated that MTN, using its own cost model, says that the true cost of interconnection ranges from USD 0.067 and USD 0.068, but MTN still charges as much as USD 0.089.

February 15, 2010

Egypt: BNP Paribas hopes to secure mobile banking license by mid-March

Reuters reports that BNP Paribas expects to be awarded a mobile banking license in Egypt by mid-March.

"We are expecting by the end of the month or the middle of March at a maximum, to have an authorisation to deal and to set up a system of mobile banking," the head of BNP Paribas' Egyptian operation Philippe Joannier said.

The bank applied for the mobile banking license in partnership with Mobinil , which has the largest mobile market share. Joannier said the product, M-Wallet, would extend the reach of banks to rural areas by offering the ability to transfer money and pay bills via mobile phone. M-Wallet accounts will not be fully integrated into the bank's system. Orascom Telecom, a shareholder in Mobinil, launched a similar service in Pakistan in 2009.

"It (the central bank) has put the responsibility clearly with the bank to control the system," Joannier said.

Egypt has a population of around 78 million people, over 55 million mobile subscribers and an estimated 10% of people have a bank account.

February 12, 2010

Malawi: Government Launches Tender for Fourth Mobile Operator

According to Reuters, the government of Malawi has launched a tender for a fourth mobile operator.

Malawi Communications Regulatory Authority (MACRA) representative Zamuziko Makambo said the government hopes a fourth operator would increase competition and improve services.

"Currently we have three operators, namely Zain, TNM and Gmobile, but we want another operator to help reduce the cost of doing business and improve the quality of telecommunication services," Makambo said.

Zain is the market leader in Malawi with over one million subscribers, followed by Telekoms Networks Malawi (TNM). Gmobile is yet to roll out its mobile service after winning a license in 2009.

Last year, MACRA awarded two licenses, one to La Cell and the other to Expresso Telecom. The government subsequently suspended the licenses, saying the tenders had not been conducted properly.

February 9, 2010

Nigeria: Bureau of Public Enterprises to Open Nitel Bids on February 16

According to a report from the Daily Independent, on February 16, Nigeria's Bureau of Public Enterprises (BPE) will open the financial bids of six groups that met the submission deadline for the privatisation of NITEL / M-Tel.

The six short-listed bidders are Brymedia Ltd, AF21/ Spectrum Consortium, MTN Nigeria, Globacom Nigeria, Omen International and New Generation Telecommunications (formerly the Telefonica Consortium). The deadline for the submission of technical and financial proposals was February 5. The fourteen groups that were pre-qualified to bid for Nitel paid a non-refundable fee of USD 25,000 for access to the data room and bidding documents. The advertisement for expressions of interest from prospective investors for the acquisition of at least 75% of NITEL was published in July 2009.

Prospective investors were invited to apply to acquire either at least 75% equity in the entire NITEL conglomerate, or a stake in one or several of its components: SAT-3, the domestic fixed line telephony business, the national fibre-optic backbone, the CDMA network and/or MTel's GSM business. Preference is being given to bidders seeking to acquire NITEL's fixed line, transmission backbone, M-Tel and SAT-3 components together. Groups bidding separately for M-Tel must be prepared to make the investments required to separate M-Tel from the rest of NITEL's networks.

February 5, 2010

South Africa: Mobile Interconnection Rate Cut May Proceed

According to a Business Day report, the proposed 29% reduction in mobile interconnection rates could proceed as planned in March, Vodacom CEO Pieter Uys said. The reduction requires that the Independent Communications Authority of South Africa (Icasa) approves an amended proposal from operators.

Icasa rejected the initial proposal from Vodacom, MTN and Cell C that would have cut peak interconnection rates from USD 0.16 to USD 0.12 per minute starting March 1. Icasa objected to the proposed three-year phased introduction of the rate reduction, which would have forbidden Icasa from reviewing mobile interconnection rates until March 1, 2013.

Uys said that Vodacom would consult with the other operators to develop a new proposal that would not include a phased introduction. The new operator agreement would maintain the commitment to a new USD 0.12 peak rate, effective March 1.

"We have to sign agreements between each of the operators, and once all of those are signed, we will submit the proposal to Icasa. March 1 is not far away, so we have to do it as quickly as possible - I would hope in the next five business days."

Icasa will release draft regulations on interconnection fees next month, with final regulations to come in June. A spokesperson said the new rates would be cost-based. Icasa has estimated that the cost of interconnecting networks at USD 0.05 per minute.

"The best we can hope for is a two-year glide path - for now they will want to keep their options open. An overnight change to a business model is always difficult, but we've already started working on it because we know it will come," Uys said.

MTN's Graham de Vries said that MTN had decided on a voluntary reduction after mounting pressure from various stakeholders.

Icasa representative Jubie Matlou said the regulator might agree to the new proposal. "The only problem we had was with the precondition... that meant we couldn't tamper with the rate for three years."

February 1, 2010

Ghana: Ministry Bans New Masts

According to Ghana Business News, the Ministry of Environment, Science and Technology (MEST) has imposed a ban on building additional telecommunications masts or transmission towers.

According to a January 12 letter to the Environmental Protection Agency (EPA), the ban will remain in place until further notice. The letter also announced the establishment of a committee made up of representatives from the EPA, the National Communications Authority (NCA), the Ghana Atomic Energy Commission (GAEC) and National Security to produce guidelines for the construction of communication towers. According to the EPA, around 50% of communications masts were built by service providers who did not obtain the required permit.

In a response to the letter, Bob Palitz, the CEO of Kasapa Telecom, said that the action will affect expansion of mobile service to rural areas. He added that it will also be difficult for GSM service providers in cities if they require additional capacity. Palitz criticized the Ministry of Science and Technology for acting unilaterally when there is already a committee working to resolve the related issue of collocation.

Ghana has six mobile operators: MTN, Tigo, Vodafone, Kasapa, Zain and Glo. Glo has not yet started operations. There are approximately 15 million mobile subscribers in Ghana.

January 26, 2010

Russia: Regulator Receives 13 Bids for WiMAX Spectrum

According to Prime-TASS News, Russia’s Federal Service for Communications, IT, and Mass Communication Oversight received 13 bids for its fourth WiMAX tender in the 2.3-2.4 gigahertz frequency range. The tender covers eight regions in the Siberian Federal District and four regions in the Far East Federal District.

Bidders include Sibirtelecom and Far East Telecom -- the largest fixed line operators in the Siberian and the Far East federal districts -- Rostelecom, Prestige-Internet, MTS, Virgin affiliates Trivon Networks and MediaLan, New Telephone Company, T-Service, New Telesystems and three affiliates of Swedish operator Tele2.

WiMAX tenders for 40 Russian regions are taking place in February and March. Scheduled for March 11, the Siberian / Far East regions represent the final 2.3-2.4 GHz tender. The other three tenders are scheduled for February 18, February 25 and March 4.

January 22, 2010

Jamaica: Digicel Loses Interconnection Case

Cellular-News reports that Digicel Jamaica has lost a legal dispute over the regulatory control of mobile interconnection rates.

Digicel argued that Jamaica's Office of Utilities Regulation (OUR) did not have the authority to regulate mobile interconnection rates. After losing a case in the Jamaican Court of Appeal, Digicel filed an appeal with the UK's Privy Council, which acts as Jamaica's highest court. The Privy Council upheld the Court of Appeal's ruling.

The Council's ruling agreed with the Court that the law requires each operator to offer interconnection with other networks, but that the lack of price regulation meant that an operator could effectively block interconnection by imposing excessive interconnection charges. The OUR will now be able to settle mobile interconnection disputes to ensure that interconnection obligations are met.