TheChek News Flow

Operators warn that proposed changes to plans put 5G investment at risk

The heads of some of Europe’s largest telecoms companies have warned the European Commission that its vision of a digital single market is under threat because of attempts to pull back on deregulation.

The chief executives of Deutsche Telekom, Orange, BT, Telecom Italia and Telefónica have written a letter to telecoms ministers highlighting proposed changes to the Electronic Communications Code and ePrivacy Regulation, two key pieces of legislation that will govern the telecoms industry.

The letter, seen by the Financial Times, states that the proposed amendments to plans unveiled last September would undermine efforts to overhaul the regulation of telecoms to boost investment in full fibre and 5G networks.

The original proposals set out last September by Andrus Ansip, the commission’s digital chief, and Günther Oettinger, the commissioner responsible for the telecoms policy, were intended to scale back regulation of the most established telecoms companies. They also encouraged telecoms companies to jointly invest in fibre networks in underserved regions.

Those proposals have, however, met resistance from some members of the European Parliament due to concerns that they could harm competition.

Telecoms companies are also angry that plans to regulate the price of international calling have been added to the Electronic Communications Code by the consumer committee of the European Parliament. They fear that could eat into their profits at a time when the European Commission is urging them to invest more in newer full fibre and 5G networks.

“The initial strategic focus on investment and innovation appears lost and current developments risk hampering the ability of companies to deliver for European citizens and businesses. We believe that growth, employment, investment and contribution to taxation are at stake,” the letter states.

“Other regions of the world are out-investing Europe 2 to 1 in digital networks. This should be a reason for alarm and action, especially in the context of global competition and fast-paced technological change.”

The industry called on European ministers to “save the 5G project” by sticking to plans to harmonise the regulation of spectrum that have met resistance from some European telecoms ministers, including those in Germany, Spain and UK, that do not want to give up control of licensing and auctions of the airwaves.

A unified approach to the regulation of airwaves across the continent is seen as crucial in reducing the cost of rolling out 5G networks.

The letter, delivered by the European Telecoms Network Operators’ Association, a trade body for incumbent operators, was also signed by the heads of KPN, Telenor, Telia, and a host of smaller companies.

Duterte warns martial law imposed in southern crisis region may be greatly expanded

Philippine troops backed by tanks and helicopters battled Isis-allied militants in a southern city on Thursday as President Rodrigo Duterte warned he may greatly expand martial law already imposed in the crisis region.

Explosions and gunfire rang out in Marawi on Mr Duterte’s home island of Mindanao as soldiers fought to dislodge extremists who occupied the area after a failed security forces raid to capture a leader wanted by the US.

The crisis has laid bare both the militant threat in the southern Philippines and Mr Duterte’s willingness to back up his hardline rhetoric by suspending normal constitutional rights and expanding the military’s powers. His action has so far triggered only pockets of opposition, despite Filipinos’ memories of the late dictator Ferdinand Marcos’s use of martial law to enable his brutal and corrupt two-decade rule.

Mr Duterte warned he might expand martial law nationwide and seek congressional approval to extend it from its current 60 days to one year, as part of a “harsh” crackdown on terrorism.

“If I think that you should die, you will die,” he said. “If you fight us, you will die. If there is open defiance, you will die. And if it means many people die, so be it.”

At least 21 people have been killed already in this week’s Marawi fighting, which prompted Mr Duterte to cut short a trip to Russia and impose martial law on the southern third of the 100m-strong Southeast Asian country.

The battle was triggered by a security force raid to capture Isnilon Hapilon, a leader of the Abu Sayyaf group. The organisation is known for beheading hostages and hijacking ships that pass by the Philippine archipelago’s scattered southern islands. Mr Hapilon has a US bounty of up to $5m on his head.

Prominent Philippine politicians and interest groups have mostly supported or at least avoided criticising Mr Duterte’s action on martial law. The Philippine Chamber of Commerce and Industry acknowledged “concern” among businesses but said it had “faith in our president’s firm control and determination to eliminate the threats and to protect the entire community”.

The Commission on Human Rights, which is government funded but operationally independent, condemned the “recent attacks of terrorist groups” in Marawi. It called on legislators to “exercise due diligence” and warned that the country must never repeat the “dark past” of the 1972 martial law declaration by Marcos. The former dictator ruled for another 14 years until he was ousted by the country’s “People Power” protests.

Mr Duterte is seen as unlikely to face wide opposition to his plans in Congress, which is packed with his supporters.

The Marawi crisis is a serious blow to Mr Duterte’s image as potential peacemaker in Mindanao, where he grew up and was mayor of the city of Davao for more than 20 years. Many hoped his longstanding contacts could help entrench a peace deal between the previous government and more moderate Islamist rebels in the decades-long insurgency there.

Domestic and foreign security officials have grown increasingly concerned that extremist groups are gaining a bigger foothold in the southern Philippines, with the possibility their numbers could be boosted by Southeast Asian fighters for Isis returning home from the Middle East.

* Saudi Arabia Energy Min Al Falih: 

- Saudi Oil Min Al-Falih deeper cuts not needed at this time