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| In an evolving market with rapidly increasing competition between service providers and choice for the consumer, certain controls must be applied in order to guide, inform and possibly restrain companies and individuals that wish to offer services for a profit. |
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Notification requirements for telecommunications companies
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The TRA would like to remind all holders of licenses that they are required to
notify and/or get TRA approval of any changes to their shareholdings and/or
changes of control.
The Telecommunications Law and the Mergers & Acquisitions Regulation require,
among other, the following:
(a)
Under section 29(g) of the Telecommunications Law, “Any Person that directly or
indirectly acquires five percent or more of the equity of an Individual Licensee
shall notify the Authority of such matter within seven days as of the date of
his/its acquiring of such share”
(b)
Under the Telecommunications Mergers and Acquisitions Regulation 2004,
telecommunications companies are required to notify the TRA of all changes of
control (on a lasting basis), prior to their implementation; these changes are
conditional on clearance by the TRA. In particular, Article 5.1 provides: “A
qualifying Transaction shall not be implemented… before its notification to the
TRA and until either it has been declared compatible with this Regulation
pursuant to a decision … or the TRA fails to issue a decision pursuant to the
timetable… in which case the Qualifying Transaction shall be deemed to be
approved.”
Anybody holding a license issued by the TRA should therefore be aware of the
requirement to notify the TRA of, among other
Acquisitions of 5% or more of the equity of an individual licensee and/or.
Any and all changes of control on a lasting basis, in accordance
with the notification requirements in the Mergers and Acquisitions
Regulation.
In addition, any person acquiring 5% or more of the equity of an individual
licensee, irrespective of whether s/he is a licensee, is required by law to
notify the TRA of such acquisition
Please note that failure to notify the TRA, where required, may lead to the
imposition of penalties and/or fines.
Licensees are asked to ensure that their relevant departments and shareholders
or prospective shareholders are aware of these requirements.
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