The Studies and Economic Media Center (SEMC) has flayed the Ministry of Telecommunication and Information Technology for awarding the General Telecommunication Institution an LTE license establishing a new telecom company without conducting a thorough study serving the sector and enhancing its contribution to national economy.
The Studies and Economic Media Center (SEMC) has flayed the Ministry of Telecommunication and Information Technology for awarding the General Telecommunication Institution an LTE license establishing a new telecom company without conducting a thorough study serving the sector and enhancing its contribution to national economy.
The Center said in a statement that though the move is ostensibly in favor of the government, however, it would cause disastrous consequences to both the government and the telecommunication sector.
The establishment of a new company competing with the government-owned Yemen Mobile , and handing over its management to the foundation would result in losses for both operators.
It expressed surprise that the Ministry announces the creation of the new firm without indicating who would finance the new operator, warning that the venture, which requires massive investments, would cost the state treasury hundreds of millions of dollars, at a time when the government is in financial distress due to dwindling revenues.
The enterprise amounts to levying a war on Yemen Mobile, the majority of its shares are owned by the government, it highlighted, noting that the Institution management didn’t heed advice from a European Consultancy firm that LTE services can be rendered through Yemen Mobile rather than a new company, as this, according to the center, would result in the collapse of both operators.
It further cautioned the Ministry against the unilateral formulation of policies squandering hundreds of millions of dollars as happened when it procrastinated on issuing third generation permits granted in other world countries in 2008. The Institution gained huge funds from permit sell-outs.
It dismissed the step as a hazardous act that would negatively impact the value of third and fourth generation operator permits, especially if the Ministry decides to sell such licenses during the forthcoming stage, as this would cost the country very heavily.
The flawed relationship between the Institution and telecom operators was a resultant from this move, as the former owns the infrastructure leased to telecom companies, it pointed out, wondering how the institution acts as a competitor for and provider of services at the same time.
The practice is a flagrant violation of fair competition principles, said the center.
“The Ministry’s policy of giving fourth generation permits to the institution without giving third generation licenses to other operators is reminiscent of nepotism and injustice , as those operators are providing services to broad social segments , and contributing to enhancing national economy,” it charged.
The Center further expressed surprise that the foundation is creating a fourth generation operator , while its potential is very weak, in addition to the fact that it couldn’t provide good internet services to subscribers during the past period. It warned that the foundation would be a big failure in case it granted other operators third and fourth generation permits.
“It was incumbent upon the Ministry to set up Why Max project announced in 2010, which cost the government tens of millions of dollars. As the world was heading towards issuing third generation permits, the Ministry was in the process of establishing Why Max which only saw the light of the day in 2013. In view of the Ministry’s narrow vision regarding the telecom sector, it let the government lose hundreds of millions dollars in permit value,” it explained.
It called the practice a usurpation of the rights of subscribers, including citizens, the Private sector, and government institutions possessing shares in Yemen Mobile.
It urged both the Ministry and institution to focus on the upgrading of internet and infrastructure required during the transition from third to fourth generation, renting out same to operators, and expanding the service of land lines that covers only a small proportion of the population.
The Ministry’s measure contravenes the protocols Yemen had signed in order to join the World Trade Organization (WTO), as well as the National Dialogue outcomes stipulating the prohibition of monopoly at all sectors, it charged, underscoring that the step preempts the NDC results, as it seeks not to engage all stakeholders in laying down polices and decisions that delineate the future of the country.
Owing to these impromptu policies that would prevent the government from earning millions of dollars in revenues , the Center demanded the setting up of a ministerial panel to debate the future of telecom sector as an integrated system in order to fully utilize it in supplementing the state treasury.
The think-tank, in conclusion, urged that government’s telecom policies be reformulated in such a manner as to revamp the new generation permits, prolong previous licenses, and develop telecom bill in a way that is best suited to the NDC outcomes as well as the WTO’s accession protocols
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