Vodafone 2015 Annual Report Download - page 199

In April 2014, the spectrum licences comprising of 2x10MHz in 800MHz,
2x10MHz in 900MHz, 2x30MHz in 1800MHz and 1x15MHz in 2.6GHz,
came into force.
In April 2014, the maximum termination rates in Romania decreased
from 0.67 to 0.14 eurocents per minute for xed call termination and
from 3.07 to 0.96 eurocents per minute for mobile call termination.
Greece
In February 2014, the tender process commenced for the National
Rural Broadband Network construction. The xed incumbent (OTE)
and the consortium of Intrakat, Intracom Holdings and Hellas Online
are the only two parties in the tender process. An announcement
is outstanding.
In August 2014, Cyta MVNO was launched on Vodafone
Greece’s network.
In September 2014, Vodafone Greece’s acquisition of Hellas Online S.A.
was approved by the Hellenic Telecommunications & Post Commission
and the Competition Authority.
In October 2014, Vodafone Greece participated in the national 800MHz
and 2.6GHz spectrum auction and secured its target of 2x10MHz in the
800MHz band and 2x20MHz+20MHz unpaired in the 2.6GHz band for
€125 million.
In January 2015, the MTR decreased from 1.189 eurocents per minute
to 1.103 eurocents per minute. At the same time the FTR was also
reduced from 0.0735 eurocents per minute to 0.0695 eurocents
per minute.
Czech Republic
In June 2014, the CTU opened a consultation on the unsold spectrum
from the 2013 auction (1800MHz frequencies reserved for a new
entrant and part of 2.6GHz frequencies). The start of the auction is due
sometime in 2015.
As part of the obligations associated with Vodafone Czech
Republic’s purchase of 800MHz spectrum in 2013, a public reference
offer for MVNO access was implemented in September 2014. The offer
allows an MVNO to provide data services on the 800MHz spectrum.
In June 2014, the CTU deregulated MTRs for non-European Economic
Area trafc.
Hungary
In October 2014, following the Commission withdrawing its
infringement procedure against the Hungarian telephony tax in 2013,
the Hungarian government announced its intention to introduce a tax
on internet trafc. The plan to impose a tax on every gigabyte of trafc,
irrespective of the type of internet access was unpopular with both
businesses and citizens. Ten days after the announcement of the
planned tax, the draft tax bill was withdrawn.
Vodafone Hungary has participated in the National Media and
Infocommunications Authority of Hungary’s (‘NMHH’) multi-band
spectrum auction that included 4G 800MHz and 2.6GHz and secured,
at a total reserve price of HUF 30.2 billion (£75 million), 2x10MHz in the
800MHz band; 2x20MHz+25MHz unpaired in the 2.6GHz band (plus
2x1MHz in the 900MHz band).
In April 2015, the NMHH reduced the MTR to 1.71 HUF per minute.
Albania
Further to the Albanian Competition Authority’s (‘CA’) recommendations
to the national regulator, the Electronic and Postal Communications
Authority (‘AKEP’) to reduce differentiation of on-net and off-net
calls, AKEP approved a further decrease of MTRs targeting pure long
run incremental cost (‘LRIC’) benchmarking levels with a glide-path
reducing current MTRs to 1.05 eurocents per minute starting from
January 2015.
The proposed launch of Plus Communication’s 3G service did not
occur as they did not make payment for the 2x5MHz block of 2.1GHz
spectrum needed for the service. Vodafone successfully bid for one
5MHz block of 2.1GHz spectrum at a cost of €1.5 million.
In March 2015, AKEP conducted a public tender with sealed bids for
1800MHz spectrum for GSM/LTE/UMTS/WiMAX (36MHz of spectrum
split in six blocks of 2x6MHz). Vodafone Albania secured a total
of 2x14.4MHz at a cost of €8.6 million.
In April 2015, Vodafone Albania successfully appealed against
CA’s interim decision to equalise on-net and off-net tariffs by May 2015
while it investigates Plus Communication’s complaint that alleged
Vodafone Albania had abused its dominant position between January
2013 and June 2014.
In April 2015 the 2.6GHz band for WCDMA usage (fourteen blocks
of 5MHz each, was made available for tender. Vodafone Albania secured
a total of 2x20MHz and 1x20MHz at a cost of €3.3 million.
In May 2015, Vodafone Albania secured 2x1.2MHz in the 900MHz band
at a cost of €600,000.
Malta
In March 2014, the MCA set the MTR at 0.40 eurocents per minute
to which Vodafone has submitted an appeal to the Administrative
Review Tribunal on the basis that there was a lack of transparency
in theconsultation process.
Africa, Middle East and Asia Pacic region
India
In March 2015, the Supreme Court partially heard Vodafone
India’s appeal against the Department of Telecommunications’ (‘DoT’)
refusal to extend its existing spectrum licences in Delhi, Mumbai
and Kolkata. Vodafone India has also challenged DoT’s decision not
to extend the spectrum licences in the six circles in which our licences
were due to expire in December 2015. Different operators have taken
the DoT to court on elements related to auction design which are
currently sub-judice. The spectrum auction was held in March 2015 for
800MHz, 900MHz, 1800MHz and 2.1GHz bands. Vodafone India won
spectrum in all six circles, thus ensuring continuity of business. It also
won an additional 2.1GHz spectrum in six service areas. The total auction
spend by Vodafone was INR 258 billion (£2.75 billion).
In February 2015, the Telecommunications Regulatory Authority
of India (‘TRAI’) announced its revised regulation on MTRs, reducing
the rate from 20 paisa to 14 paisa per minute for mobile termination.
The FTR regulation that reduces the rate from 20 paisa to zero paisa per
minute creates a concern that it is an undesirable arbitrage opportunity
and deviates from the TRAI principle of cost and the work done as the
basis for termination rate recommendations. Vodafone India is studying
the regulations with a view to challenging the decisions in the courts.
Prime Minister Narendra Modi has allocated budget in this scal
year for the Government’s Digital India agenda and in April 2015 the
TRAI issued its recommendations on the implementation measures
required to accelerate the delivery of broadband, including the release
of additional spectrum to facilitate wireless broadband. It has also
launched a consultation on the regulatory framework for Over-The-Top
(‘OTT’) services.
For information on litigation in India, see note 30 “Contingent liabilities”
to the consolidated nancial statements.
Vodacom: South Africa
In October 2013, the Ministry of Trade and Industry published revised
generic Codes of Good Practice on Broad-based Black Economic
Empowerment (‘BBB-EE Codes’). These revised codes became effective
on 1 May 2015.
Overview Strategy review Performance Governance Financials Additional
information Vodafone Group Plc
Annual Report 2015
197