Kuwait to issue virtual telecom operator license

A photo taken on December 19, 2014 from the top of al-Hamra Tower shows a view of Kuwait City. (AFP)
Updated 15 July 2019

Kuwait to issue virtual telecom operator license

  • Foreign ownership would be subject to Kuwaiti law, which restricts non-Kuwaitis to minority ownership

DUBAI: Kuwait is to issue a virtual telecom operator license, effectively creating a fourth player in a market serving roughly 4 million people.
Virtual network operators do not own the networks they use to provide communications services but instead lease capacity from conventional operators, usually paying them a percentage of their revenue as well as fees.
Kuwait’s Communications and Information Technology Regulatory Authority has issued a request for applications for the license, according to a document seen by Reuters.
State news agency KUNA also reported a license would be granted.

HIGHLIGHTS

• With the issuance of a license, a fourth player will be created in the Kuwaiti market.

• Applications must be submitted by Nov. 14, 2019.

• The selected application will be announced by Feb. 6, 2020.

• Kuwait’s current telecom providers are Zain, Ooredoo, and Viva.

Applications must be submitted by Nov. 14, 2019 and the selected application will be announced by Feb. 6, 2020, the document shows.

Conditions
The applicant will have to partner with a company that can provide it with the technology, know-how and operational and management experience.
The partner will also own at least 40 percent of shares and have a five-year management agreement. Kuwait’s current telecom providers are Zain, Ooredoo, and Viva. Kuwait’s existing telecom providers, as well as anyone holding 25 percent or more shares in Kuwaiti telecom companies, are not allowed to apply.
Foreign ownership would be subject to Kuwaiti law, which restricts non-Kuwaitis to minority ownership.


Huawei given 90 days to buy from US suppliers

Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Monday, Aug. 19, 2019. (AP)
Updated 20 August 2019

Huawei given 90 days to buy from US suppliers

  • Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers

WASHINGTON: US Commerce Secretary Wilbur Ross said Monday the US government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, even as nearly 50 of its units were being added to a US economic blacklist.
The “temporary general license,” due to expire on Monday, will be extended for Huawei for 90 days, he told Fox Business Network Monday, confirming an expected decision first reported Friday by Reuters. He also said he was adding 46 Huawei affiliates to the Entity List, raising the total number to more than 100 Huawei entities that are covered by the restrictions.
Ross said the extension was to aid US customers, many of which operate networks in rural America.
“We’re giving them a little more time to wean themselves off,” Ross said.
Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers.
The extension, through Nov. 19, renews an agreement continuing the Chinese company’s ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.
Asked what will happen in November to US companies, Ross said: “Everybody has had plenty of notice of it, there have been plenty of discussions with the president.”
When the Commerce Department blocked Huawei from buying US goods earlier this year, it was seen as a major escalation in the Sino-US trade war.
The US government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests.

BACKGROUND

The US blacklisted Huawei, alleging the Chinese company was involved in activities contrary to national security or foreign policy interests.

As an example, the blacklisting order cited a pending federal criminal case concerning allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case.

The order noted that the indictment also accused Huawei of “deceptive and obstructive acts.”
At the same time the US says Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.
Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licenses.
Many Huawei suppliers have requested the special licenses to sell to the firm. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more. He said on Monday that there were no “specific licenses being granted for anything.”