Mexico advances towards the tender for the 700 MHz band

The Government of Mexico is evaluating three bidding schemes for the 700 MHz band, which is currently used for broadcasting, but will be allocated for mobile broadband services with the arrival of digital TV. The State could raise up to USD 2.4 billion in this operation.

The Government of Mexico is evaluating three bidding schemes for the 700 MHz band, which is currently used for broadcasting, but will be allocated for mobile broadband services with the arrival of digital TV. The State could raise up to USD 2.4 billion in this operation.

According to the Federal Telecommunications Commission (COFETEL), an alternative is to channel the band in blocks and tender them to operators, with coverage commitments. Another option is to keep the band together, configure an infrastructure package and tender it under a wholesale, open and non-discriminatory model, so that other operators can join the network. The third alternative is a combination of the first two, reported the newspaper El Universal.

COFETEL indicated that unlike what happens in other countries, in Mexico the 700 MHz band is relatively clean. A GSMA study indicates that if this frequency is used for mobile broadband, the State would receive a contribution of around USD 2,483 million for the spectrum auction, while the economy would receive USD 925 million for the investment in mobile infrastructure.

In turn, USD 541 million of additional income would go to the telecommunications sector and contribution to the GDP (Gross Domestic Product); while tax collection would benefit by USD 423 million and consumers would have USD 530 million in savings due to greater competition in the sector.