The Romanian Government intends to commence the public procurement procedures for awarding 5G licenses in 2018

July 14, 2017

The Romanian Government intends to commence the public procurement procedures for awarding 5G licenses in 2018. This technology is envisaged to be functional around 2020.

Sale of Netaş’s Shares, Turkey

January 13, 2017

NetaşTelekomünikasyon A.Ş. (the "Target") has announced the sale of OEP Turkey Tech B.V.’s ("OEP") non-public shares representing 48% of the Target’s capital (the "Transaction") to ZTE Cooperatief U.A., a Chinese telecommunication and ICT solutions provider and the largest telecommunication equipment listed company worldwide ("ZTE"). OEP and ZTE have entered into a share purchase agreement on 6 December 2016. The Target is one of the major companies in system integration offering services both in private and public sectors, such as the Turkish Military and was chosen "3rd Best Breakthrough" in 2015 by the Ministry of Science, Industry and Technology and the Turkish Patent Institute. The price for the Transaction is announced to be approximately USD 101.3 million, subject to price adjustment on the completion date of the Transaction. In addition, according to the share purchase agreement, ZTE will make additional payments up to USD 15 million upon fulfilment of some conditions within the first four years starting from the completion date of the Transaction.

On 30 December 2016, the Target has announced the Turkish Competition Board’s approval of the Transaction, which was a condition to completion under the share purchase agreement. The Transaction is expected to be completed in 2017 upon fulfilment of the remaining conditions precedent.

A Bulgarian operator intends to launch the first ever satellite for the Balkan region

A Bulgarian pay-TV and broadband operator Bulsatcom intends to launch in 2016 a geostationary communications satellite produced by the Space Systems/Loral (SSL) based in Silicon Valley in the US. The satellite costs around EUR 150 million and will enable Bulsatcom to provide DTH services directly to households in the Balkans region and Southeast Europe. At least 60% of the capacity will be offered to other operators. This is the first ever communications satellite which will serve specifically the Balkan region.

Total investments required in the IT sector in Romania will exceed EUR 3.9 billion by 2020

According to the National Strategy regarding the "Digital Agenda for Romania 2014 - 2020", drafted by the Romanian Ministry for the Information Society (MSI), the total investments required in the IT sector in Romania will exceed EUR 3.9 billion by 2020. The investment areas targeted by MSI are eGovernment, Open Data, Big Data and Interoperability, Cybernetic Security, Cloud Computing and Social Media, ICT in Education, ICT in Health, ICT in Culture, eCommerce, eInclusion, Research-Development and Innovation in ICT and Broadband. With respect to financing sources for the development and implementation of this investment strategy, MSI is confident that a broad range of financing sources will be available: structural funds, EU financing programs (Connecting Europe Facility (CEF), Horizon 2020), international financial institutions (World Bank, EIB, EBRD, USTDA), national co-financing (from the State and local budgets) as well as private investment (through PPPs). According to the National Development Plan published by MSI for the Next Generation Network (NGA & NGN), in the 2014 - 2020 period the development of the backbone and backhaul next generation networks will be activated by the Government, either through new state aid programs or through additional measures encouraging private investment. The total amount of the investment identified as necessary is EUR 2 billion.

The Serbian Government is considering the sale of 20% of the shares in Telekom Srbija

In the tender process that was launched in 2015, the Serbian Government decided not to accept any of the bids for the sale of majority shares in Telekom Srbija. Apollo, Colbeck, MEP, Advent and Telecom Systema were among the bidders. Serbian Government is now considering the sale of 20% of shares via Belgrade Stock Exchange and Lazard's privatisation mandate has been extended for this process, too.