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Indonesia: Village phone tariffs to be regulated |
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Friday, 26 October 2007 |
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Indonesia’s government intends to regulate the universal service obligation (USO) phone program (village phone program) to ensure tariffs are affordable.
Director General of Post and Telecommunication Basuki Yusuf Iskandar said the USO tariffs would not be determined by the operators.
"The USO operator will not be allowed to apply tariffs higher than the current maximum PSTN (public switched telephone network) tariff," Iskandar said.
Secretary General of the Indonesia Telecommunication User Group, Muhammad Jumadi, believes the government should apply low tariffs to USO phone services and not refer to the maximum PSTN tariff.
"The government should also not favour an operator that proposes the smallest subsidy, but instead should favour an operator that is committed to boost the regional economy and potential," he asserted.
Jumadi asked the government to be careful in selecting the USO operator following the failure of the previous USO operator, PSN, which won the 2003-2004 USO tender. Jumadi also believes the government should not allow large operators to bid in the USO tender since their licenses already require them to develop telecom networks to remote and rural areas.
Several major operators are interested in participating in the USO tender for service provision in 38,471 villages or 11 blocks nationwide. The operators are Indosat, Excelcomindo Pratama, Telkom, Telkomsel and Pasifik Satelit Nusantara. The five operators, along with 22 other telecommunication operators, will participate in the least-subsidy tender.
Janto Gunawan, an executive at STM Group – a VSAT manufacturer – believes that, "the winning operator should not rely on funds that the government will provide for five years. Instead, the operator should finance the project with their own revenues." Source: Bisnis Indonesia - WDR/Intelecon Regulatory News. |
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Benin: Government reassigns Telecel's License to Etisalat |
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Wednesday, 24 October 2007 |
The government of Benin has reassigned Telecel’s operating license to Etisalat. The government blames Telecel for, "failure to fulfil its engagements toward the Beninese State".
Telecel’s network has not been disconnected, as the government wishes to ensure service continuity and not jeopardize the indirect and direct jobs created by Telecel Benin. As a result, the government has agreed to a takeover by Etisalat, the majority owner of Atlantique Telecom, which itself owns a majority of Telecel Benin.
Telecel Benin had signed a memorandum of understanding in September under which they agreed to pay US$ 32.5 million as the first instalment for its license.
Source: Cellular-News - WDR/Intelecon Regulatory News. |
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Belarus: Postal provider wins Internet access contract |
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Tuesday, 23 October 2007 |
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Belarus’ national postal services company Belpochta won a tender to provide Internet access in public telecommunications offices in 2007-2008.
The country’s Communication and IT Ministry said there were two bidders, state-run Belpochta and Belarus’ OOO Delovaya Syet (Business Network). The tendering committee awarded the contract to Belpochta, because it offered the requested services in the shortest time and with lower costs.
Belarus had conducted a tender to select universal service providers and Internet access providers in public telecom offices for 2007-2008. As there was only one bidder, state-run Belpochta, the tender failed to name the provider of Internet access. Belarus then conducted a new tender for Internet access.
In February 2007, President Alexander Lukashenko signed ordinance #96 to approve the establishment of a telecom services fund, which will be funded by 1.5% of the revenues of telecom operators.
Belarus’ universal service fund will receive an estimated US$ 13.6 million in 2007. As of January 1, 2007, there were 490 telecommunication operators in Belarus. The largest are Beltelecom, mobile operators MDC, MTS, BeST, BelCel and postal monopoly Belpochta. Source: Prime-Tass - WDR/Intelecon Regulatory News. |
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Kenya: Safaricom buys 3G license |
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Thursday, 18 October 2007 |
The Communications Commission of Kenya (CCK) sold Kenya’s first 3G license to Safaricom for US$ 25 million.
"By rolling out 3G, Safaricom shall now be able to extend its range of services to include high speed data communications such as mobile internet access, mobile video conferencing and videophone," said John Waweru, CCK’s director general.
Safaricom is owned by Kenya’s government and Vodafone and is scheduled for further privatisation by the end of 2007. The Kenyan government owns 60% of the company, and intends to sell 25% for US$ 600 million.
Safaricom started a trial 3.5G HSPA network in October 2006 in Nairobi. Safaricom said that in practice, download speeds on their 3.5G network are less than 200 kbps. Kenya relies on expensive satellite links for connecting to the Internet backbone, so fast access speeds will not be available until undersea fibre optic cables are complete, hopefully by the end of 2008.
Source: Reuters - WDR/Intelecon Regulatory News. |
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Egypt: Mobinil acquires 3G license |
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Wednesday, 17 October 2007 |
Egyptian mobile operator Mobinil has acquired a 15-year 3G license for $602.9 million, to be paid over four years in instalments.
Analysts say allowing Mobinil to pay over four years would reduce financial pressure on the firm. Mobinil applied for a 3G license in July and has been negotiating payment terms with the National Telecoms Regulatory Authority (NTRA). Egypt’s other mobile operators, Etisalat Egypt and Vodafone Egypt, both had to pay for their license fees over shorter terms.
"Vodafone paid the fee in two instalments over four months, and this would have put pressure on Mobinil financials even if they borrow the money," said Walaa Hazem, of HC Securities.
The NTRA said that Mobinil would also be required to pay 2.4% of their total revenues for the duration of the license, which is the same proportion as Etisalat and Vodafone. Etisalat acquired its 3G license when it won an auction to become Egypt's third mobile operator in August 2006, while Vodafone got its 3G license in January 2007.
Source: Reuters - WDR/Intelecon Regulatory News.
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Bangladesh: Orascom to Pay Government US$ 17.9 million |
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Thursday, 11 October 2007 |
Banglalink, the Bangladesh subsidiary of Orascom Telecom (OT), will pay US$ 17.9 million to the government of Bangladesh in compensation for revenues lost through the use of VoIP.
Banglalink will pay the Government after an investigation by the regulatory authority revealed that some Banglalink customers had used the service for VoIP business. VoIP usage violates Bangladesh’s telecommunications regulations because VoIP calls deprive BTTB, the monopoly operator, of revenue. OT said that Banglalink was not aware of the VoIP activities and that the company would follow the regulator’s guidelines.
Source: Reuters - WDR/Intelecon Regulatory News.
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Russia: SkyLink bidding for GSM licenses in Siberia |
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Wednesday, 10 October 2007 |
The CDMA 450 operator SkyLink is bidding for eleven GSM licenses in Siberia.
The Tender Committee at the Federal Supervisory Service on Communication, Mass Media and Culture Protection (FSS) say that 41 companies are participating in two tenders for GSM licenses in Siberia. On October 18, eleven 1800 MHz spectrum blocks will be auctioned for Irkutsk, Tomsk and Chita Regions, Ust-Ordynsk, Buryat and Aginsk Autonomous Areas. Two 900 MHz blocks will be auctioned for the Ust-Ordynsky Area. Frequency distribution in Siberia is part of a program for 2007 to distribute regional GSM spectrum.
The major mobile operators in Russia are all participating in the tender. MegaFon is bidding for eight blocks. VimpelCom and MTS submitted three bids each. The other tender participants are three Svyazinvest subsidiaries – Volgatelecom, Dalsvyaz, Sibirtelecom – the Novosibirsk subsidiary of Tele2, SMARTS, Vladivostok New Telephone Company, Strimton, FirmaGeocom and Summa Telecom.
SkyLink’s participation in the tender was unexpected, as the company operates a CDMA network.
“We consider GSM licenses as one of the possibilities to build up a multi-range two-standard cellular network, which will enable our subscribers to make use of various technologies advantages…” Gulnara Khasianova, SkyLink Director General said.
Source: C News - WDR/Intelecon Regulatory News.
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Ghana: Six Bidders Short-Listed for Ghana Telecom |
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Friday, 05 October 2007 |
Six companies, including Portugal Telecom, France Telecom and Telkom South Africa have been short-listed for a 51% stake in Ghana Telecom (GT).
Twenty foreign investors expressed interest in GT when the Government announced in early 2007 that 51% of the company would be sold to a strategic investor. The remainder of the shares are to be sold on the Ghana Stock Exchange. A source close to the Information Ministry said that the short-listed bidders would soon submit their bids.
Ecobank Development Corporation and Societe Generale are the Government’s transaction advisors for the privatization. It is believed that the transaction would be completed by the end of this year. The two companies will advise the Government on the valuation of GT’s assets leading to a subsequent pricing of its shares.
Source: Ghanaian Chronicle - WDR/Intelecon Regulatory News. |
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Indonesia: At Least Forty Operators Interested in Universal Service Project |
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Wednesday, 03 October 2007 |
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At least 40 operators have expressed interest in the rural telephony tender through the universal service obligation (USO) program. Over twenty of those expressing interest have said they want to bid for all regions to be served by the current round of tenders.
Gatot S. Dewa Broto, a representative of the Directorate General of Post and Telecommunication said that the government was accepting USO pre-qualification registration until October 3. According to Broto, the government would allow one operator to work in several USO regions or possibly in all regions – which would encompass 38,471 villages – as long as they were able to meet the bidding requirements.
Some of the companies that have expressed their interests in working on all USO regions are Telkom, Indosat, Excelcomindo, Bakrie Telecom, and Telkomsel. There is some concern from the House of Representatives that the victory of Telkom would hold back the progress of competition in the telecommunications sector. Source: Bisnis Indonesia - WDR/Intelecon Regulatory News. |
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Armenia: ArmenTel loses monopoly |
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Monday, 01 October 2007 |
ArmenTel’s monopoly ended effective October 1, 2007. The end of the monopoly comes as a result of an August decision of the Commission for Regulating Public Services (CRPS). ArmenTel was initially granted a monopoly in 1997 which was to be effective until 2013. Sector liberalisation will apply to all types of services, including local service, domestic and international long distance, mobile, data and leased lines.
According to CRPS member Samvel Arabajyan, the CRPS is satisfied that new providers will soon enter the market. A new mobile operator will not be allowed to enter the market until January 1, 2009. In conjunction with liberalising the sector, the licensing process in Armenia has also been simplified. Companies are now to be granted licenses within five days of submitting applications.
ArmenTel representative Hasmik Chutilyan said that the company is prepared for competition. Armentel is owned by Russian operator Vimpelcom.
Source: A1plus.am - WDR/Intelecon Regulatory News.
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