Vodafone 2013 Annual Report Download - page 179

Telefónica, Orange and Vodafone Spain were ned €46.5 million,
€30.0 million and €43.5 million respectively by the National
Competition Authority for abuse of dominant position by imposing
excessive pricing of SMS and MMS wholesale termination services and
wholesale SMS/MMS access services to MVNOs. All three operators
appealed the decision which was awarded in December 2012.
Vodafoneled its appeal in February 2013 asking for the suspension
of the payment of the ne until the National Court adopts a nal
judgement. The suspension was granted in March 2013.
In January 2013 Vodafone Spain received the national competition
authorities statement of objections (‘SO’) following a price squeeze
complaint from an MVNO. The SO alleges that Vodafone (and also
Telefónica and Orange) have infringed national and EC competition
law as they have abused their dominant position by applying a price
squeeze strategy between the retail prices offered in the market
to customers and the corresponding wholesale prices applied
to MVNOs. Vodafone submitted its response in February 2013.
Other Southern Europe
Albania
The law on electronic communications was amended in December
2012 to achieve approximation with EU telecoms package of 2009.
The government has said it intends to auction the 800 MHz band for
mobile services in 2015.
A 3G licence (at 2.1 GHz) was awarded in October 2012 to Eagle Mobile.
Following a preliminary investigation into the retail telephony
market, the Albanian competition authority has initiated an in-depth
investigation into potential abuse of dominance by Vodafone Albania for
the period from January 2011 to December 2012.
Greece
Our regulated MTR as at March 2013 was 1.27 eurocents (1.07 pence).
The national regulator has set a long-term glide path which will see the
rate reduce to 1.17 eurocents (0.99) pence) plus ination from January
2014 and 1.10 eurocent (0.93) pence) plus ination from January 2015.
The government has sent a letter to the Commission asking for the
assignment of 800 MHz to mobile operators to be delayed until June
2014. The Commission’s answer is still pending.
Portugal
The national regulator reduced MTRs to 1.27 eurocents (1.07 pence)
effective from December 2012. This rate will apply until the next round
of market analyses.
Africa, Middle East and Asia Pacic region
India
For information on litigation in India, please see page 123.
In May 2012 the government published a new national telecom policy,
which includes new unied licences, broadband deployment objectives,
the implementation of national mobile number portability and free pan-
India roaming. The Department of Telecommunications and the national
regulator will commence the process to consult on the decisions and
regulations to implement this policy.
A spectrum auction was held in November 2012 to sell the 1800 MHz
spectrum released as a result of the cancellation of 122 2G licenses
by the Supreme Court of India. Vodafone India acquired 2x1.25 MHz
or 2x2.5 MHz of spectrum in 14 service areas for a total of INR 11.28
billion (£138 million). Spectrum remained unsold in many areas.
The current MTR is maintained at INR 0.2 (0.002 pence).
South Africa
The Ministry of Communications and the national regulator have
decided to postpone the process of licensing “high demand spectrum”
(2.6 GHz and 800 MHz) while the Ministry reviews its long-term policy
approach to the information and communications technology (‘ICT’)
sector. The Minister initiated a policy review process in April 2012 at the
National ICT Colloquium. This process is expected to be completed
in 2014.
MTRs from March 2013 are ZAR 0.40 (0.03 pence). The NRA is currently
considering the appropriate regime to put in place from March 2014.
The ICT sector charter for the implementation and measurement
of Broad-Based Black Economic Empowerment (‘BBBEE’) came into
force in June 2012. The government is in the process of consultation
on various other elements of the BBBEE regulatory regime including
revisions to the Department: Trade and Industry Codes and amendment
of the BBBEE Act.
Other Africa, Middle East and Asia Pacic
Australia
The MTR was reduced to AUS$0.048 (3.29 pence) in January 2013,
and is due to reduce to AUS$0.036 (2.47 pence) in January 2014.
An auction for 700 MHz and 2.6 GHz spectrum started in April 2013.
New Zealand
The MTR reduced from NZ$0.0397 (2.19 pence) to NZ$0.0372 (2.05
pence) in April 2013.
The government is now preparing to auction 700 MHz spectrum in the
second half of the 2013 calendar year.
Australia/New Zealand
The Australian and New Zealand governments published the nal
report of their inquiry into “Trans-Tasman” roaming in February 2013.
The report recommended that the national regulators in both countries
be given additional powers to collect price information and potentially
to impose additional regulation.
Egypt
The national regulator set MTRs at 65% of each operator’s average on-
net retail revenue per minute in September 2008 and issued a similar
decree in 2010. Mobinil obtained interim relief against this regulation
and a nal order is awaited. Vodafone Egypt has led a similar case in the
Administrative Court challenging the regulator’s decisions regarding
the applicable MTRs as well as the calculation formula. In December
2011 the Commissioner’s Committee of the Administrative Court
issued a non-binding opinion recommending the annulment of the
regulator’s decision. A nal decision has not yet been made. A series
of arbitrations concerning interconnection payments have been
launched by Mobinil and Telecom Egypt, leading to a claim by Telecom
Egypt against Vodafone Egypt relating to historic termination charges.
Egyptian MTRs are currently EGP 0.11 (1.06 pence) (Etisalat), EGP 0.10
(0.97 pence) (Vodafone) and EGP 0.085 (0.82 pence) (Mobinil).
177 Vodafone Group Plc
Annual Report 2013
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