Latvia’s Public Utilities Commission (SPRK) reports having given permission to Bite Latvija LLC and Unistars LLC to use limited 1.8 GHz and 3.6 GHz radio frequency bands for the development of the 5G network in Latvia.
In the middle of January Bite mobile network operator’s investor – US company Providence Equity Partners – had officially turned to Latvia’s PM Krišjānis Kariņš with a request to permit the use of aforementioned frequencies for the needs of the company.
Providence Equity Partners then said that the rejection received from SPRK contained signs of an action «that indicates possible violation of the agreement signed between US and Latvian governments on promotion of investments and mutual protection». This agreement was signed in 1995.
The US investor then warned the PM that if no solution is found through negotiations, the investor would submit a plea against Latvia to the International Centre for Settlement of Investment Disputes. The investor said the rejection from SPRK showed signs of the institution wanting to support Bite’s competitor – LMT, which is a company in which the Latvian state is a co-owner.
Providence Equity Partners LLC is a specialist private capital investment association that focuses on mass media, communications, education, and investigations in technologies in North America and Europe. This company owns Bite Latvija, which, in turn, owns Unistars capital shares.
Now SPRK reports that «implementation of cooperation will benefit mobile electronic communications users with strong competitiveness among the three Latvian mobile electronic communications network operators. This means, for example, a wider range of services and higher quality of services.»
SPRK reminds in its press release that on the 12th of August 2022 the commission received an application from Bite Latvija and Unistars. In it, both operators asked permission to jointly use the aforementioned radio frequency bands. In accordance with the Law on Competition, both enterprises are considered as one market player. In accordance with the Electronic Communications Law, SPRK evaluates the use of limited radio frequency bands even if those that submit applications are considered a single market player.
«Joint use of radio frequency bands is common in Europe, and this is likely to expand even more in the future. Our objective was evaluating if cooperation between the two operators – Bite Latvija LLC and Unistars LLC – still maintains competition on the mobile electronic communications market in Latvia. […] We based our decision both on EU and national legislative acts. We concluded that joint use of radio frequencies would not reduce the level of competition,» SPRK manager Alda Ozola explains.
Neither the letter from Equity Partners to Latvia’s PM nor the company’s name is mentioned in the press release from SPRK.
Also read: Investor accuses SPRK of undermining US-Latvian investment agreement
Public Utilities Commission caves in to pressure from Bite’s American investor
