Vodafone 2010 Annual Report Download - page 137

Vodafone Group Plc Annual Report 2010 135
Additional information
Ghana
In May 2009 the Government of Ghana initiated an Inter-Ministerial review of the
transaction in which we acquired 70% of Ghana Telecommunications. Following this
review the Government announced in October 2009 that it would not abrogate the
sale and purchase agreement with us.
In December 2008 the NRA awarded Ghana Telecommunications one of five national
3G licences. The licences have been issued as provisional authorisations, pending
conversion to formal licences.
Asia Pacic and Middle East region
India
The NRA announced a new interconnect charge usage regime effective 1 April 2009
under which mobile termination rates were reduced to 20 paisa per minute. Vodafone
Essar and a number of other operators and industry bodies have appealed this
decision to the Telecom Dispute Settlement and Appellate Tribunal which held
hearings in February 2010.
An auction of 2.1 GHz and 2.3 GHz 3G and broadband wireless access spectrum
commenced on 9 April 2010. From 1 April 2010 spectrum fees were increased by
1% to 2% of Vodafone Essar’s adjusted gross revenue. We have appealed against
this decision.
On 11 May 2010 the NRA published recommendations on a spectrum management
and licensing framework. These recommendations will be reviewed by the
Department of Telecommunications before a final decision on implementation is
made. If implemented, these recommendations would have a significant impact on
spectrum allocations and the cost of spectrum.
In September 2009 the NRA made regulations for the implementation of mobile
number portability with a deadline of 31 March 2010 for its introduction. Subsequently
the Department of Telecommunications has indicated that the implementation date
will be delayed.
Other Asia Pacific and Middle East
Australia
The Australian Government has announced that it intends to underwrite the roll out
of a national broadband network, which will provide wholesale fibre access to third
parties. The Government is also undertaking a comprehensive review of the
regulatory framework, including consideration of the existing arrangements for the
regulation of services such as call termination, universal service arrangements (to
which we currently contribute) and consumer measures. Legislation that could see
the incumbent, Telstra, split its retail and wholesale businesses is expected to be put
to a Senate vote by June 2010. The Government has announced that it intends to
extend all existing GSM licences until 2028, subject to agreement of satisfactory
financial terms.
Egypt
Applicable from the 2010 financial year Vodafone Egypt is required to pay up to 0.5%
of its revenue into a universal service fund. The NRA has issued a request for
information for the provision and operation of basic telecommunications services to
unserved, low income areas in five regions as a preliminary step towards a universal
service tender. The NRA has set termination rates at 65% of each operator’s average
on-net retail revenue per minute.
New Zealand
In September 2009 the New Zealand government released its final proposal for the
ultra-fast broadband initiative, committing up to NZ$1.5 billion to deploy an open
access, dark fibre infrastructure. We are currently exploring how to participate in this
government initiative.
Qatar
We launched commercial mobile services on 7 July 2009. In April 2010 the NRA
issued a fixed licence to Vodafone Qatar.
In November 2009 the Qatar NRA imposed a price floor on retail services offered by
us and QTel, although only QTel is designated a dominant service provider. The NRA
is expected to review this regulation by July 2010.
Licences
The table below summarises the most significant mobile licences held by our
operating subsidiaries and our joint venture in Italy at 31 March 2010.
Mobile licences
Country by region 2G licence expiry date 3G licence expiry date
Europe
Germany December 2016 December 2020
Italy February 2015 December 2021
Spain July 2023(1) April 2020
UK See note 2 December 2021
Albania June 2016 None issued
Greece August 2016(3) August 2021
Ireland May 2011(4) October 2022
Malta(5) September 2010 August 2020
Netherlands March 2013 December 2016
Portugal October 2021 January 2016
Africa and Central Europe
Vodacom: South Africa Annual(6) Annual(6)
Romania(7) December 2011 March 2020
Turkey April 2023 April 2029
Czech Republic(8) January 2021 February 2025
Ghana December 2019 December 2023(9)
Hungary July 2014(10) December 2019(11)
Asia Pacific and Middle East
India(12) November 2014 – None issued
December 2026
Egypt(13) January 2022 January 2022
New Zealand See note 13 March 2021(14)
Qatar June 2028 June 2028
Notes:
(1) D ate re lates to 180 0 MHz spectrum lice nc e. Spain al so has a separate 900 MHz spectrum l icence
which expires in February 2020.
(2) Indefinite licence with a one year notice of revocation.
(3) The licence granted in 1992 (900 MHz spectrum) will expire in September 2012. The licence
granted in 2001 (900 and 1800 MHz spectrum) will expire in August 2016.
(4) Date refers to 900 MHz licence. Ireland also has a separate 1800 MHz spectrum licence which
expires in December 2015.
(5) Malta also holds a WiMAX licence, granted in October 2005, which expires in October 2020.
(6) Vodacom’s South African spectrum licences are renewed annually. As part of the migration to
a new licensing regime the NRA has issued Vodacom a service licence and a network licence
which will permit Vodacom to offer mobile and fixed services. The service and network licences
have a 20 year duration and w ill expire in 2028. Voda com also holds licences to provide 2G a nd /
or 3G services in the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania.
(7) Romania was awarded an additional 2x28 MHz of 1800 MHz spectrum in August 2009.
(8) Czech Republic was awarded an additional 2x3.8 MHz of 900 MHz spectrum in June 2009.
(9) The NRA has issued provisional licences with the intention of converting these to full licences
once the NRA board has been reconvened.
(10) There is an option to extend this licence for seven years.
(11) There is an option to extend this licence.
(12) India is comprised of 23 service areas with a variety of expiry dates. There is an option to extend
these licences by ten years.
(13) Egypt acquired an additional 3G carrier at 2.1 GHz (2 x 5 MHz) in July 2009 for EGP 1.1. billion.
(14) New Zealand owns two 900 MHz licences which expire in November 2011 and in June 2012.
These licences are expected to be renewed until November 2031. Additionally Vodafone New
Zealand owns a 1800 MHz spectrum licence and a 2100 MHz licence which expire in March
2021. All licences can be used for 2G and 3G at our discretion.