World Dialogue on Regulation

ArmenTel was fined US$ 1.0 million by Armenia’s anti-trust regulator for anti-competitive actions against the country’s Internet service providers (ISPs).

The fine comes after the launch of an ArmenTel service offering broadband access at a reduced cost. Competing ISPs claim that ArmenTel refuses to allow them to use its facilities to provide a similar service.

The State Commission for the Protection of Economic Competition (SCPEC) found a complaint filed by the ISPs to be legitimate and gave ArmenTel 15 days to resolve the situation. The 15 day period has expired and ArmenTel has failed to comply with the SCPEC’s order, and is now considered to be abusing its significant market power. ArmenTel denies any wrongdoing and is expected to appeal the SCPEC decision.

ArmenTel voluntarily relinquished its monopoly on the country’s Internet gateway shortly after its September 2006 takeover by Russia’s Vimpelcom. However, competing ISPs still rely on ArmenTel’s fibre-optic network linking to Georgia and Iran to carry a majority of Armenia’s Internet traffic.

Source: Armenia Liberty - WDR/Intelecon Regulatory News.

HITS Telecom could have its license revoked by the Uganda Communications Commission (UCC) since it has failed to launch service over a year after it was licensed.

The company was granted a Public Infrastructure Provider (PIP) license and a Public Service Provider (PSP) license in March 2007. The licenses enable HITS to operate a wide range of services, including fixed, mobile and data.

In 2007, HITS' representative Jimmy Kiberu said that the company’s GSM network would be operational in time for the Commonwealth Heads of Government Meeting, in November 2007. However, HITS only completed its first test call at that time. At the time of the test call, company representatives said that the company would start operations in the first quarter of 2008.

Fred Otunnu, of the UCC, said that operators holding a PSP license are expected to launch operations within a year of licensing, while PIP license holders have eighteen months to start providing service. Otunnu added that companies failing to meet the requirements of their licenses risk losing them if they do not have sufficient reasons for their failure.

Jimmy Kiberu said, "the company will make a major announcement mid next week, to update the public about what is happening. Until then, we cannot comment on anything."

Commenting on the company's expired licence, Mr Kiberu said, "we renewed our PSP license and there were several costs in the process. So, we are still within our licence requirements."

Source: The Monitor - WDR/Intelecon Regulatory News.

The government of Rwanda plans to license a third telecommunications operator now that the duopoly period for the existing operators has expired.

Rwandatel and MTN Rwandacel were granted duopoly licenses in 2003 to provide fixed and mobile communications.

"The duopoly expired in June and the government has decided to select a third national operator through a public tender process," Diogene Mudenge, the Rwanda Utilities Regulatory Agency’s (RURA) acting director general, said.

Mudenge said the new operator would be issued with fixed and mobile licenses with 15 year duration. He added that the license obligations include contributions to the universal access fund.

The government has invited potential bidders to express interest in becoming the country’s third operator. The bidding process is restricted to telecom operators or groups that have proven capabilities to advance the Government's objectives in the ICT sector. Bidders should also have the financial capability to implement a realistic plan to enhance the telecommunications sector in Rwanda.

Source: New Vision - WDR/Intelecon Regulatory News.

The Minister of State for Communication and Information, Alhaji Ibrahim Dasuki-Nakande says that the National Communications Commission (NCC) and the Nigerian Broadcasting Commission (NBC) will be merged.

"In the telecommunication sector, we have agreed that there is no need to have two regulatory authorities in the sector because as a result convergence between information and communication technologies, a lot of the regulations must come under one umbrella. Presently we have the National Communications Commission (NCC) and Nigerian Broadcasting Commission (NBC), so eventually we must merge them to become NCC," the Minister said.

He continued, "the thinking behind it is that both of them are doing virtually the same thing even though differently this one is selling spectrum of frequency for the broadcast sector for radio and television while the other one is also selling spectrum for telecommunication and broadband services so we will bring the all of them together.”

Nakande also stated that the Federal Government would soon issue directives to all network operators on infrastructure sharing.

"In the next two weeks we are issuing a direction to now enforce issues on call location and sharing of infrastructures by the GSM operators, due diligence should be made and submitted to the Ministry….We must insist that they must share their infrastructure and it will reduce the incidences of cable cut either by sabotage or by sincere mistakes. It also helps us to reduce cost for those infrastructures," Nakande said.

Source: Vanguard - WDR/Intelecon Regulatory News.

Chile's anti-trust tribunal is allowing existing mobile operators to bid for new frequencies, but stipulated that the process should also enable the entry of new competitors.

The Subsecretary of Telecommunications (Subtel) asked the tribunal for a ruling on whether existing operators should be allowed to bid for 45 megahertz of frequency to be used for 3G service.

"According to anti-trust regulations...it is not necessary to exclude the participation of current concession holders...which means they may participate if they meet applicable norms," the tribunal said.

The tribunal asked that Subtel take steps to promote the entry of new operators, including allowing mobile number portability (MNP). The tribunal suggest that said MNP should be instituted as soon as possible. The government intends to proceed with bidding now that is has received the tribunal's ruling.

Chile's mobile market is dominated by Telefonica Movistar and Entel PCS. Claro is the third largest operator. Chile has mobile penetration of around 90% and a population of 16 million.

Source: Reuters - WDR/Intelecon Regulatory News.