200 Group Plc Annual Report 2017 Regulation (continued) Unaudited information

Africa, Middle East and Asia-Pacific region : South Africa In April 2017 the national competition authority (‘CompCom’) announced that it would not refer Cell C’s allegation against Vodacom Vodafone India’s challenge in the Telecom Tribunal (‘TDSAT’) against the and MTN of market dominance abuse. However, CompCom will engage financial demands by the Department of Telecommunications (‘DoT’) the national regulatory authority (‘ICASA’) to explore the need for any for approving the transfer of Vodafone India telecom licences that were regulatory interventions to ensure the market is competitive. held under seven subsidiary companies to create two telecom licensed companies – Vodafone India Limited and its subsidiary Vodafone In October 2016 the Ministry of Telecommunications and Postal Mobile Services Limited, is pending. Vodafone India has deposited Services published the cabinet-approved National Integrated ICT Policy INR24.5 billion with DoT based on orders from the Supreme Court White Paper (‘White Paper’). The White Paper sets out a framework and TDSAT, this is without prejudice to its rights and contentions in the on how the government wants to provide access to modern matter. The matter is listed for hearing in the TDSAT in due course. communications infrastructure and services to facilitate the entry of new players and the meaningful participation of all citizens, including In August 2016 in response to the Indian Supreme Court decision on those in rural areas. Its adoption will require various amendments call drops, TRAI launched a consultation on tightening benchmarks for to existing laws and regulations flowing from the Electronic network quality of service parameters, the outcome of which is awaited. Communications Act. Engagements between the various stakeholders In August 2016 TRAI initiated a review of termination charges and and Government to explore the possibility of finding an amicable way initiated a consultation on Internet Telephony and App to Public to implement the White Paper are ongoing. Switched Telephone Network and Public Land Mobile Network In November 2016 the Final Amended ICT Sector Black Economic (‘PSTN/PLMN’) calling and a review of the Interconnection framework, Empowerment Codes were gazetted. The Codes contain variations the outcome of which are awaited. The current MTR regime introduced to the draft ICT Sector Code, some of which are in conflict with that in February 2015 was challenged by Vodafone India in the Delhi High of the Revised Department of Trade and Industry Codes and will be used Court and the next hearing is currently scheduled in September 2017. in May 2017 to rate Vodacom’s and the other operators performance In August 2016 Vodafone India received 128 notices for financial for the 2016/17 financial year. Due to the nature of the new Codes, demands (licence and spectrum fee) from the DoT of INR78.90 billion the industry is engaging the BEE ICT Sector Council to resolve some and INR0.94 billion for six notices concerning access and National and of the concerns. International Long Distance services based on the audit of Vodafone In February 2017 ICASA formally deferred the timeframe for the India’s telecom operations by the DoT appointed auditor and by the Invitation to Apply (‘ITA’) spectrum licensing process in the 700MHz, Comptroller & Auditor General of India (‘CAG’) for the years 2006/7 800MHz and 2.6GHz bands whilst the judicial review process in the to 2010/11. Vodafone India has submitted its response to the High Court is ongoing. demand notices. Vodacom: Democratic Republic of Congo In October 2016 Vodafone India acquired a total of 2x82.6MHZ and In August 2016 the Minister of Communications and Minister of Finance 1x200MHz of spectrum across the 1800MHz, 2.1GHz and 2.5GHZ bands issued a ministerial decree setting the new tax on mobile payments at a cost of INR200 billion, expiring in October 2036, enabling its 4G at 3% of annual service revenue. services to be expanded to a total of 17 circles. The Ministry of Finance DGRAD-Tax Administration has proposed In October 2016 TRAI recommended to the DoT that a fine a revision to the spectrum fees model which will result in a 69% increase of INR10.5 billion should be levied against Vodafone India for failing in annual fees. Vodacom Congo and other industry participants have to provide adequate points of interconnection to Reliance (‘RJIL’). engaged the DGRAD and Minister of Communications to request the Similar fines were also recommended against and Idea nullification of this change on the grounds that such a tax will negatively Cellular. Vodafone India has challenged TRAI’s recommendation in the impact communication costs. Delhi High Court and the next hearing is scheduled on 24 October 2017. Vodafone India has filed a petition in the Delhi High Court on the As of March 2017 Vodacom Congo is implementing a compliance plan basis that RJIL’s zero/free mobile tariff offers are not compliant with and continues to participate in industry association engagement with TRAI’s tariff requirements for interconnect usage charges and that the authorities to secure electronic SIM registration. promotion/free benefits is continuing beyond the 90 days permitted Vodacom: Tanzania by TRAI. The matter was heard at the Delhi High Court in April 2017 In July 2016 the national regulatory authority (‘TCRA’) published where it was adjourned. Similar petitions have been filed by Bharti an open invitation to apply for 3.5GHz spectrum. has Airtel and in the TDSAT. submitted its application and the evaluation of all applications by TCRA In March 2017 Vodafone India and Idea announced their proposal is still pending. to merge. The transaction is expected to close during 2018, subject In July 2016 the national competition authority (‘FCC’) approved to customary approvals. Vodacom Tanzania’s acquisition of Shared Networks Tanzania which In May 2017 Vodafone India filed a challenge in TDSAT against holds 2x5MHz of 900MHz spectrum licences which will be used DoT’s microwave spectrum interim guidelines issued in October 2015, to support the provision of rural services. and their letter of January 2017, that conflict with the confirmations In March 2017 the Initial Public Offering for Vodafone Tanzania Public given to Vodafone India at the time of the 2014 and 2015 spectrum Company Limited was launched under the requirements of the Finance auctions that the microwave resources of expiring licences will Act 2016, with the offer open until 11 May 2017. be transferred to the Universal Licence. In March 2017 the Ministry of Communications published its draft For information on litigation in India, see note 30 “Contingent liabilities amendments to the Electronic and Postal Communications Act 2010 and legal proceedings” to the consolidated financial statements. with comments submitted by 14 April 2017.