Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, February 22, 2017

Enacom allowed Grupo Clarín's Nextel to give 4G without tendering the corresponding bands

At the board meeting held yesterday, the Ente Nacional de Comunicaciones (Enacom) (Telecom regulator) granted it the registration as Advanced Mobile Communications Services (AMCS) provider, so that it can provide LTE services in the 900 MHz and 2.5 GHz bands, frequencies acquired when buying five companies. It was within the framework of the project that Cablevision subsidiary presented to stop being a trunking operator and becoming one that can provide mobile broadband.

The prelude for this approval were resolutions 1033 and 1034, published last Monday, where Enacom endorsed the change of frequency allocation in 2.5 GHz and 900 MHz for mobile services. In resolution 1034, it is established that the exploitation of 4G services may be regional or local, which benefits Nextel since the frequencies it acquired are regional, some of them in the AMBA.

To launch the new services and capture customers in a market that is deeply penetrated as the Argentinean, Nextel shall make investments for more than US$500 million. But, as Convergencialatina has been analyzing , Grupo Clarín could solve the total entry to the mobile business by merging with Fintech's Telecom, partner of the multimedia company in Cablevisión, with 40%.

As Clarin published today, Nextel could only use 20 MHz in the 900 MHz band and 40 MHz in the 2.5 GHz band, plus another 20 for the migration for a period of two years. In return, it would be agreed that the company returned about 40 MHz of the 120 MHz it obtained after the companies' purchases.

At the same board meeting, the regulator urgued Directv to include all the country's free to air television channels on its programming schedule.

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