Providence Equity Partners believe the actions of Latvia’s Public Service Regulatory Commission (SPRK) indicate a possible violation of the bilateral investment promotion and mutual protection agreement between the US and Latvian governments.
Dienas Bizness reports that Providence, which owns the info-communications company Bite Latvija, has communicated this in a letter to the Latvian Prime Minister Krisjanis Karins. It adds that, in the event that a solution is not found through consultations and negotiations with the Latvian government, the US investor plans to apply to the International Investment Disputes Review Centre with a claim against the Latvian state for delaying the development of strategically important infrastructure.
According to Dienas Bizness, Unistars, which is wholly owned by Bite Latvija, is using a radio frequency spectrum band obtained from the state 20 years ago for the implementation of 5G technology. Considering that the Bite Latvija already had the 3.6 GHz frequency, which is critically necessary for the development of 5G, the SPRK auction rules prevented it from participating in the 2017 and 2018 5G frequency auctions, and the auctioned 3.6 GHz frequency bands were ultimately awarded to other market participants.
At the moment, in order for Bite Latvija to be able to jointly use the frequencies required for the implementation of 5G technology in the 3.6 GHz range, which it already owns, the company must receive SPRK’s permission. The review of the decision to receive this permisssion was extended three times. It has already been reported that the Constitutional Court, following an application from Unistars, initiated a case on the right to use a limited radio frequency band on December 8.
