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Kenya: Government to privatize Telkom |
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Wednesday, 28 March 2007 |
Kenya invited expressions of interest to purchase a 26% of Telkom Kenya, the state-owned landline operator.
The government also said it intends to sell an additional 34% of Telkom in an initial public offering once the 26% strategic partner has been selected. The winner will be announced on September 25 and an agreement signed by October 17.
Telkom is Kenya’s sole landline operator. It had 280,000 lines at the end of 2006, compared with about 8 million mobile subscribers.
In related news, Telkom announced that they plan to hand the government their 60% stake in mobile operator Safaricom, to allow the landline company to compete effectively against its former subsidiary. Vodafone owns the other 40% of Safaricom. Telkom currently offers a CDMA service and expects to roll out full mobile services in the second quarter of 2007.
The telecom regulator recently cancelled the award of a second national operator license to a Kenyan-Indian company, Reliance, the second highest bidder, after it failed to make a formal application in time. Dubai-based VTEL had won the tender but was disqualified after it also failed to come up with the required US$ 169.7 million before the government’s deadline.
Source: Reuters - WDR/Intelecon Regulatory News. |
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Macedonia: Telekom Austria Wins GSM License |
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Tuesday, 27 March 2007 |
Telekom Austria was the successful bidder in the tender for the third mobile license in the Republic of Macedonia.
Telekom paid US$ 13.3 million for a 10-year GSM 900/1800 license. After ten years, the license will be automatically extended for another ten years.
Telekom plans to invest US$ 93.0 million in Macedonia and hire 200 domestic experts in order to develop its operations.
The license requires that operations start within six months. The license also requires 30% of the population is to be covered after one year, 50% after two years, and 90% after four years.
"In order to meet the conditions set by the Agency for Electronic Communications, during the initial roll out, Telekom Austria will rely on the existing Macedonian public telecommunication networks in addition to building its own network," the company said.
Telekom Austria currently has operations in Austria, the Czech Republic, Slovenia, Croatia, Bulgaria and Liechtenstein. It is setting up its operation in Serbia.
Source: Dow Jones report - WDR/Intelecon Regulatory News. |
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India: TRAI Reduces Access Deficit Charge |
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Wednesday, 21 March 2007 |
The Telecom Regulatory Authority of India (TRAI) said it would cut the Access Deficit Charge (ADC) starting April 1.
The ADC is a charge imposed on private telecommunications operators to fund state-run Bharat Sanchar Nigam Ltd.'s (BSNL’s) rural operations. TRAI will reduce the charge to 0.75% of adjusted gross revenues of telecom operators from the current rate of 1.5%. Charges for both incoming and outgoing international long distance calls have also been cut. Incoming international charges will be lowered to US$ 0.023 per minute from US$ 0.036 per minute. The charge for outgoing calls is currently US$ 0.018 per minute and will be removed.
The cut in the ADC should lead to reductions in tariffs that are already among the lowest in the world due to intense competition. Currently, calls in India typically cost between US$ 0.011 and US$ 0.023 per minute.
Bharti Airtel, the country's largest mobile operator by number of subscribers, said the removal of the ADC on outgoing international calls will allow the company to re-evaluate those tariffs.
"The benefits of this reduction will be passed on to the customer," Bharti Airtel President Manoj Kohli said.
The Cellular Operators' Association of India (COAI), the industry lobby representing all nine GSM operators, expressed disappointment as the reduction in the charges was less than expected.
TRAI Chairman Nripendra Misra said that the ADC will be phased out after the 2008 financial year. With the ADC reduction, the total ADC collection for the fiscal year starting April 1 is projected to fall to US$ 456 million from US$ 729 million in the current fiscal year.
Source: Dow Jones report - WDR/Intelecon Regulatory News. |
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Peru: Bidding rules for mobile license approved |
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Monday, 19 March 2007 |
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ProInversion, Peru's state agency for promoting private investment, has approved bidding rules for a fifth mobile license. ProInversion says the project requires a US$ 200 million investment.
Interested companies must be pre-qualified by the agency by April 16. Final bids are due by May 7. The agency is also holding a public consultation period through March 22 for interested parties and will publish responses to the consultation on April 9.
The new license adds to the three mobile existing mobile licensees, Movistar Peru, Claro Peru and Nextel Peru. An auction process for a fourth mobile license in the 800MHz band is already underway. That spectrum was reclaimed by the government as part of the merger agreement between Bellsouth and Movistar. Bids for the 800MHz spectrum are due on May 1. Source: Cellular-News - WDR/Intelecon Regulatory News. |
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South Africa: Interconnect rates a barrier to lower telecoms costs |
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Wednesday, 14 March 2007 |
VoxTelecom MD Jaco Voigt believes that wholesale call termination prices are the final barrier to reduced telecommunications costs in South Africa. VoxTelecom is a voice over IP (VoIP) service provider.
“As ICASA has pointed out in their discussion document on call termination prices released earlier this month, all the major players have significant market power and can essentially charge what they like. Smaller competitors like VoxTelecom are effectively faced with a ‘take it or leave it’ price, so our customers are definitely paying more than they should be,” Voight added.
Voigt says that, “the cellular operators have been…charging their customers as much to dial numbers on our VoIP network as they’re charging for calls to rival mobile networks, when they’re paying us much less. In the absence of firm guidelines from the regulator up to now, it’s been a real wild west situation.”
Voigt says there is little agreement in the market about what constitutes fair interconnect pricing. “A few VANS operators proposed extremely high interconnect rates to the mobile operators, which didn’t help.”
“Retail telecommunication prices are being driven by interconnect rates at the moment, and they won’t come down until there is a clear mechanism for setting fair prices,” Voight said.
The situation highlights the need for effective interconnection regulations that allow adequate rates for network providers while minimizing telecommunications costs for consumers. South Africa is dealing with the same interconnection issues that confront many emerging economies.
Source: Moneyweb - WDR/Intelecon Regulatory News. |
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Ghana: Westel Privatization Progress |
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Tuesday, 13 March 2007 |
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The Government of Ghana plans to select one of three telecommunication companies that bid for Western Telesystems Telecommunications Limited (Westel). The three companies remaining in contention for Westel are Celtel, African Soft and Kinz Telecom/Etisalat Communications. There were seven companies during the first phase. The eventual winner will acquire a 66.7% stake in Westel. The final assessment of the three finalists is being compiled by the transaction advisors, National Trust Holding Company (NTHC) and Databank, and will be presented to the Ministry of Communications. Celtel began mobile phone operations in 1998, and since then, has built networks in 15 African countries, under licenses that cover more than a third of the population of Africa. African Soft is a local telecommunication company, which has backing from the United States of America. Kinz/Etisalat is a combination of two telecommunication companies in United Arab Emirates, Kinz TeleCom Company, a subsidiary of Kinz International Group and Etisalat Telecommunications. Source: Ghanaian Chronicle - WDR/Intelecon Regulatory News. |
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East Timor: Government seeking telecom reform |
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Monday, 12 March 2007 |
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East Timor’s government has announced plans to end Timor Telecom’s monopoly. Prime Minister José Ramos-Horta has asked the government to prepare telecommunications sector reform legislation. Ramos-Horta praised investments made by Timor Telecom, in which Portugal Telecom (PT) has a stake, but noted, “the country needs, however, efficient telecommunications at affordable prices and that are accessible to all.” An independent report on the telecommunications regulatory framework characterised it as unilateral and impeding sector development. The document also said that the number of East Timorese with access to a telephone and the Internet was lower than three people per thousand and the rural population is almost entirely excluded. Timor Telecom’s concession contract was signed in July 2002, and is valid for fifteen years and renewable for a further ten. Timor Telecom has exclusivity in providing fixed, mobile, data, leased lines, public telephony and international services. The only service currently open to competition is Internet access. PT is the company’s biggest shareholder, with a 41.12% stake -- other shareholders include the East Timor state and Vodatel. In 2004, Timor Telecom had revenues of US$ 17 million, a 42% increase over 2003. In the same period, the subscriber base rose 26.28% to 28,000. Source: Macauhub - WDR/Intelecon Regulatory News. |
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Kyrgyzstan: MTS and Bitel (or, “O, what a tangled web we weave”) |
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Wednesday, 07 March 2007 |
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Russian mobile operator Mobile TeleSystems (MTS) has written off US$ 150 million it paid for 51% of Kyrgyz mobile operator Bitel. MTS says that it is seeking indemnity and has filed a lawsuit in the Isle of Man against eleven companies that allegedly prevented it from gaining control of Bitel. The eleven companies being sued by MTS include Altimo, Rezervspetsmet, Sky Mobile, and Bitel. "We have almost exhausted all available legal means at our disposal in order to defend our rights in Bitel within the framework of the Kyrgyz legal system," MTS Chief Executive Leonid Melamed said. "At the same time, we will continue fighting to gain compensation for damages related to this illegal misappropriation and seizure of Bitel and its assets," Melamed said. In 2003, IPOC bought an option to purchase 100% of Bitel. In October 2003, IPOC sold the option to Fellowes. In 2004, Alfa Telecom bought a 100% stake in Fellowes. Bitel’s owners then put 100% of Bitel up for a sale, disregarding the option held by Fellowes. Fellowes filed a lawsuit against Bitel's owners, asking the court to stop the sale of Bitel and forcing the current owners to meet their obligations concerning the option contract. In December 2005, MTS bought 51% in Tarino Limited, which indirectly owned Bitel through its subsidiaries. Three days after the deal was announced, a Russian company, Rezervspetsmet, challenged the purchase in court and was awarded full control over Bitel. In late 2006, Bitel transferred all its assets to another Kyrgyz mobile operator, Sky Mobile, which had earlier been acquired by Russia's Altimo, Alfa Group's telecom arm. The purchase by Altimo was seen by some as an attempt to prevent MTS from gaining control. Almost immediately, the CEO of Vimpelcom -- in which Altimo owns a 32.9% stake -- announced his company was considering purchasing Sky from Altimo. Source: Prime-Tass, Reuters and Global Insight - WDR/Intelecon Regulatory News. |
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Belarus: Universal Access Fund Established |
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Tuesday, 27 February 2007 |
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The President of Belarus, Alyaksandr Lukashenka, has ordered telecommunications operators to contribute 1.5% of their annual profits into a universal access fund. |
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Russia: Eleven companies bid for 3G license |
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Monday, 26 February 2007 |
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Eleven companies bid in the tender for three third generation (3G) mobile licenses in Russia, Pavel Morozov, of the Federal Communications Agency, said. |
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