The BCA issued an interim suspension until 16 March 2020, while the operators continue the discussion with the telecoms regulator BIPT.
Background: Belgian operators Proximus and Orange announced a joint venture for a mobile network sharing agreement in July 2019. The shared network would cover existing technologies up to 4G, as well as future 5G deployment. The companies stated the network would improve country-wide coverage by having a number of mobile sites about 20% higher than the individual operators’ current footprint. Deployment of the network was due to take place between 2021 and 2023, and cost €140m. In November 2019, another Belgian operator, Telenet, challenged the JV and filed a complaint with the Belgian Competition Authority (BCA).
The BCA rules an interim suspension: In a statement issued on 10 January 2020, the BCA issued an interim measure to suspend the implementation of the agreements “in view of their potential impact on competition”. The authority is therefore rejecting Telenet’s demand for an outright suspension of the venture, while giving the telecoms regulator BIPT more time to assess commitments made by the two operators. The measure relates in particular to transfer of staff, but does not prevent other preparatory work such as sending out RFPs for the acquisition of network equipment, as long as no binding agreements are formalised. The BCA also requires Orange and Proximus to inform the BCA of their discussions with the BIPT, including the position taken by the BIPT itself, by 9 March 2020.
The venture is likely to go ahead: Despite the delay caused by the BCA’s involvement, it is unlikely that the joint venture will be blocked. In its statement, the BCA notes the sharing agreement has “potentially positive” effects and that a complete suspension would have been disproportionate. In a statement, Telenet noted it is satisfied of the interim measure, but invited the BCA and the BIPT to carry out a thorough investigation and compared the Belgian case to a recent joint venture in Czech Republic, about which the European Commission expressed serious doubts.
