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What to expect from spectrum auctions in Latin America
![What to expect from spectrum auctions in Latin America](https://cdnimg.bnamericas.com/osNYmXdfLqzNCkbeyrJwAyoPUOAPPoMyCoAzoMgDvOagddeNQhcTkCvwqMqtprsH.jpg)
Latin America faces new spectrum auctions in a difficult context, with operators more focused on achieving sustainability than continuing to grow, delays in some processes and others that have not been able to find interested parties.
The Chilean experience of a second 5G spectrum tender achieved the objective of having a fourth 5G technology operator with Claro offering close to US$90mn for five blocks in the 3.5GHz band. But the Dominican Republic failed to allocate spectrum in 700MHz, 2.6GHz and 3.6GHz after the only bidder, Viva Dominicana, did not comply with the requirements.
In the coming months, spectrum auctions are expected in Mexico, Peru, Bolivia and Costa Rica. In the case of Costa Rica, the publication of the final bidding rules is still awaited.
Jamaica also had a process open to deliver 600MHz spectrum, but although the presentation of offers was scheduled for the end of June, no official information on their opening is yet available.
BNamericas reviews the processes underway in the region.
MEXICO
Regulator IFT will put out to tender 6,158 blocks of spectrum for wireless access services in the 600MHz, L, AWS, PCS, 2.5GHz and 800MHz bands. The concessions, which will be offered with regional coverage, would be for 20 years.
However, the success of the bidding is in doubt because the high price of spectrum has been a barrier in previous processes.
Wholesale operator Altán has expressed interest in accessing 2.5GHz spectrum to be able to offer 5G services, but believes that the tender will be unsuccessful because the conditions are not favorable for the sector.
The tender was also questioned by MCM, which proposed that the 3.5GHz band should be re-segmented to resemble the modality used in the United States and thus take advantage of nearshoring.
Satellite company Viasat also expressed misgivings regarding the frequencies in the 1,500MHz band – the L band – since they could interfere with the frequencies granted to the operator.
The initial calendar foresees a first stage of expressions of interest for September, followed by the evaluation and issuance of certificates of participation no later than March 2025. The presentation of offers would take place from May 5 of next year. anus.
BOLIVIA
On July 15, pre-registration will begin for the bidding for frequencies in the 5GHz band for fixed wireless internet services in rural or urban areas.
The process called by regulator ATT is aimed at internet providers and small and medium-sized companies that can offer this service, especially in rural areas.
The licenses offered in this process are exempt from the payment of frequency assignment and use rights, as well as the inspection and regulation fee and contributions to the Prontis social inclusion program.
The contest will be carried out through public bidding in the case of urban areas and directly for rural areas. Those interested will be able to obtain up to 50MHz of spectrum each.
PERU
Peru plans to put out to tender 300MHz in the 3,300-3,400MHz and 3,600-3,800MHz frequency bands, as well as 800MHz in the 25.9-26.7GHz band with national coverage. The frequencies will be offered for 20 years.
According to estimates of investment promotion agency ProInversión, the tender could raise up to US$845mn. However, the transportation and communications ministry (MTC) plans for the spectrum to be assigned directly in exchange for a consideration aimed at closing gaps to serve localities that do not yet have 4G technology.
Currently, ProInversión is looking for consulting services to structure the process.
The approval of the bidding rules and call for the process are scheduled for January 2025, while the awarding of the bands is projected for next June.
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