Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, March 01, 2017

MWC 2017

Enacom could deliver 20 MHz of the 700 MHz band to Nextel

Grupo Clarín’s company will be able to exchange the 20 MHz of the 2.5 GHz band for the same amount of frequencies in 700 MHz. Among the obligations that must be fulfilled to launch mobile services, Nextel will have to provide services to 147 localities that do not yet have coverage.

With the companies that they have purchased, Nextel has 80 MHz in the 2.5 GHz band and 20 MHz in 900 MHz (they are regional frequencies but they cover approximately 70% of the population). Of the frequencies in the high bands, Cablevisión’s subsidiary will have to use 20 MHz for the migration of services that are there, spectrum that later must return to the State. That spectrum can be exchanged for the 20 MHz of the 700 MHz band that belong to the State, although they are still in court due to Arlink (company of the Vila-Manzano Group that had won the last auction of spectrum, which finally did not pay the frequencies).

In the framework of the Mobile World Congress, Miguel de Godoy, president of Enacom, and Héctor Huici, ICT secretary, explained that if the exchange is carried out, Nextel will have to pay an updated price for the frequencies of 700 MHz, although did not specify if it would be close to the price paid by the operators in the 2014 tender.

Beyond this move, Nextel will have 15 working days, once the authorization to give 4G is published in the Official Gazette (has not yet happened) to sign a contract with Enacom to be able to use the frequencies that  it acquired. According to De Godoy and Huici, in addition to the price of compensation to the State, the contract includes the obligation to connect 147 localities that do not yet have coverage.

In contrast, other operators wishing can submit their proposals and demand spectrum in 2.5 GHz. The officials specified that the State has, in addition to the 20 MHz that Nextel will return, other portions of spectrum in that band to deliver to other players.

Consulted by Convergencialatina, officials emphasized that they did not believe that the 2.5 GHz band would made through the judicial system as was the case with the 700 MHz band. They stated that in the case of the 700 MHz band "when it was tendered they did not say where (the services that occupied it) should go, how and who had to pay," De Godoy said. These were the arguments that Telecentro presented to the Justice. "In the case of 2.5 GHz, the conditions are all established in the resolution," he said.

Regarding the request of operators to share infrastructure in localities that they must cover, Godoy said that they are analyzing it: "We will see how it is used, because we are not going to allow it for them to save, but should invest it in optical fiber."  He added that the operators claim to postpone coverage obligations of the last auction to which the 700 MHz band has not yet been delivered. Excuse they use, officials say, to also explain the delay in delivery of the offer so Virtual Mobile Operators use their network, In fact, Enacom summoned them to do so.

Officials confirmed that convergence will begin in 2018 and that the convergent law will continue: in March, the drafting committee will present the project to the Executive Power.

During the MWC, officials participated in different talks of the Ministerial Program, dedicated to security, digital single market in Latin America, and investments. They also met with executives from Telefónica, Cablevisión and equipment suppliers, as well as with regional regulators, of which Bolivia, Brazil and Chile are progressing in possible roaming agreements.

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