Page 133 - SAMENA Trends - June-July 2025
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REGULATORY & POLICY UPDATES  SAMENA TRENDS

        EU Indicates Strong Interest in AI Gigafactory Push


        The European Commission (EC) revealed it received 76 expressions   role in strengthening the EU’s digital infrastructure. Although the
        of interest to develop AI gigafactories across 16 European Union   consultation  did  not  involve  funding  or formal commitments,
        (EU) member states, a response which significantly surpassed its   it  is  set  to  shape  the  official  call  for  proposals  expected  by  the
        own expectations.  While  the  regulator did  not  name interested   end of this year. In addition, the initiative forms part of the EU’s
        companies due to confidentiality, it confirmed responses from a   AI Continent Action Plan and will serve as a pilot project for the
        range of stakeholders including European and international tech   regulator’s competitiveness coordination tool, which aims to align
        companies,  data  center  operators, telecoms  providers,  energy   policies and implementation across member states.
        suppliers and financial investors. The respondents also outlined
        plans to acquire a total of at least 3 million latest-generation GPUs
        as part of the push. According to Reuters, EU tech chief Henna
        Virkkunen told a press conference that the level of interest received
        “exceeds far beyond our expectations”, adding that it “showcases
        Europe’s  growing  momentum and  enthusiasm  for innovating
        in AI in Europe”. The response comes after the EC issued a call
        for expressions of interest, which closed on 20 June, to identify
        potential  consortia  and  gather  early  input  for the  next  phase  of
        the  continent’s  AI push.  The  call,  which  outlined  plans  to build
        across 60 proposed sites, came after the regulator earmarked €20
        billion to support the construction of four AI gigafactories earlier
        this  year.  These  high-capacity  compute and  storage  facilities
        will support advanced AI model training and are set to play a key




        Telenor: No plan B for Pakistan, Exit Now



        Telenor’s  planned exit  from  Pakistan  is  currently  being  held  up   group announced its intention to sell its Pakistani unit to Pakistan
        by the country’s competition authority – a delay the Nordic group   Telecommunication  Company  Limited  (PTCL),  which  operates
        argues  is  stagnating  digital  development  in  the  South Asian   the Ufone brand. “We were quite early in understanding that this
        nation. Speaking to Developing Telecoms, Telenor Asia head Jon   growth was going to flatten, and we needed to think differently to
        Omund Revhaug said the operator no longer has the capital, nor   manage this portfolio of assets,” said Revhaug. “We established a
        can it foresee the scale required to fund the large capex needed   phase of modernisation to drive efficiency across our operations.”
        to push Pakistan into the 5G era and beyond. The group is instead   He explained that the group anticipated slowing growth as far back
        focusing on Asian  markets  where  it  can hold  leading  positions.   as 2017, when market trends began shifting from voice to data
        Headquartered in Singapore, Revhaug oversees Telenor’s interests   – a change that required “significant investments in infrastructure
        in  Bangladesh,  Malaysia, Thailand  and,  for now, Pakistan.  At  its   over time” to stay competitive. Telenor, he said, will only remain in
        peak, the group’s Asian footprint extended to India and Myanmar   markets where it sees a clear path to becoming a top-two operator.
        – the former exited due to similar structural challenges to those   Pakistan, after extensive evaluation, was deemed too challenging.
        in  Pakistan,  and  the  latter  abandoned  following  a  military  coup   While a merger – as had been pursued in Malaysia and Thailand –
        which made operations untenable, with demands from the junta   was considered, Revhaug conceded: “We did not find a solution that
        to install  spyware on the  network. Now,  Telenor  is  focused on   would lead us to a number one position [in Pakistan].” According to
        further withdrawing from South Asia. Taking charge of this latest   the Pakistan Telecommunication Authority, Jazz led the market in
        divestment is Revhaug, a 25-year Telenor veteran who has worked   May with around 74 million monthly mobile subscribers, followed
        across its global footprint, particularly in Asia. He played a key role   by China  Mobile-owned  Zong with  52  million.  Telenor  ranked
        in major recent mergers, including the creation of CelcomDigi in   third with 44 million, while PTCL’s Ufone had 27 million. A merger
        Malaysia and True Corporation in Thailand. Telenor also maintains   between Telenor and Ufone would create a stronger rival to Jazz
        its  original  foray into Asia  with  Grameenphone  in  Bangladesh.   and introduce much-needed competition, with the scale and capital
        West  of  Bangladesh,  Revhaug is  leading  the  execution  of   to invest in future infrastructure, argued Revhaug.
        Telenor’s  modernisation  and  efficiency  strategy.  In  2023,  the









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