Argentina clarifies 5G auction rules

Argentine telecoms regulator Enacom clarified key points of the 5G auction in response to queries by operators Telecom Argentina and Movistar, among others.

If a lot that was auctioned becomes vacant, Enacom will offer the lot again "in two parts of 50MHz each with a base price that will be half the value obtained from the average that results between the highest winning bid for a lot and the established base price," according to a note in the official gazette. 

Due to that approach, pre-qualified candidates that only consider making a financial offer in this exceptional case should give advance notice. Pre-qualified bidders that have won a lot will not be able to participate.

Enacom also clarified that the spectrum for state company Arsat would be assigned “exclusively for compliance with the strategic federal connectivity plan of the State.” Arsat already received 100MHz without an auction.

Also, current regulations would apply for ceding or transferring spectrum use authorizations.

PAYMENTS

The spectrum price remains controversial, since it is higher than in other countries.

Given the macroeconomic scenario and the difficulties in obtaining financing, operators requested an extension of the 20-day payment period that starts after the notification of the award. 

Enacom approved an operators request and allowed payment of the fees in instalments “within 15 days of notification of the award.”

The regulator also clarified that payment through public bonds and sovereign debt bonds will not be accepted and requested the central bank to intervene if doubts about financial operations such as foreign loans or cash payment with settlement emerge.

Operators “must comply with the general or specific applicable regulations the competent authority issues for such purposes,” Enacom replied to each query regarding the possibility of accessing foreign currency to pay for spectrum.