Mexico regulator okays Telcel concession change to enable 5G

Mexico’s telecommunications regulator IFT approved the request to modify 18 concessions of América Móvil's Telcel unit to use spectrum bands in the 3,450-3,550MHz segment for 5G services.

Telcel will pay 900mn pesos (US$43.8mn) per year for rights to use the spectrum, which was originally licensed for fixed services.

The modification includes operating conditions for Telcel to provide protection against harmful interference to satellite services that operate in the 3,400-3,700MHz segment.

In a statement, the IFT said Telcel could start operating “the largest 5G commercial network in Latin America.”

América Móvil CEO Daniel Hajj said during the 4Q21 results call that the company has "everything ready to launch 5G" in Latin America. He highlighted that work has been done over the last few years regarding network virtualization, fiber to the node, and cell modernization to prepare for 5G.

FIBER

Fiber optics deployment is essential for 5G, and América Móvil's fixed network subsidiary in Mexico, Telmex, has rapidly migrated fixed customers to fiber.

At an investors conference, the head of América Móvil’s fixed operations, Oscar von Hauske, said 52% of Telmex's customer base is connected to fiber optics. “We want to speed up the migration from copper to fiber, so we will invest in new homes this year.” He added that migration to fiber should be “faster than the previous year.”