Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, February 09, 2018

Tender for the 2.5 GHz band to raise more than US$ 111 million and América Móvil will be able to participate

The Federal Telecommunications Institute (IFT) has approved bidding rules to concession the use and commercial exploitation of 120 MHz of spectrum in the 2500-2690 MHz band. The 120 MHz to be tendered are divided into four paired national blocks of 10 + 10 MHz each (FDD blocks), and 2 unpaired national blocks of 20 MHz each (TDD blocks). The duration of the radio spectrum concession will be 20 years and the Minimum Reference Value (VMR) for each 20 MHz block will be established at US$ 18.5 million. All operators can participate, including América Móvil, which already has spectrum at 2.5 GHz.

The operators will be able to express their interest and deliver their documentation until June 1st. The regulator will analyze participation certificates from June 4 to July 13. On July 31, offer presentations will be made. The delivery of titles is scheduled between November and December 2018.

Among stipulated coverage obligations, the winners must provide services in at least 200 of the 557 localities with a population of 1,000 and 5,000 inhabitants within the next four years.

The tender will seek to attract new operators, since it gives incentives to those who do not have concessions in the AWS, PCS and 2.5 GHz bands (they will grant an additional 30% in points in the bidding process and the possibility of deferral of the delivery of concession titles for up to two years).

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