Colombian authorities will auction seven 4G licences in June.
The communications ministry, Mintic, and the National Spectrum Agency, Ane, said two licences will be reserved for new entrants to the market.
As expected the bodies also stipulated…
Colombian authorities will auction seven 4G licences in June.
The communications ministry, Mintic, and the National Spectrum Agency, Ane, said two licences will be reserved for new entrants to the market.
As expected the bodies also stipulated that America Movil-owned Claro – which holds more than 60% of the mobile market –will only be allowed to bid for spectrum in the 2.5GHz band. This frequency requires more capex to cover wider areas as it demands a greater number of base stations. The tender will take place on 26 June and the licences will come with build-out requirements and coverage commitments.
The asymmetrical regulation, which imposes restrictions on America Movil, follows significant pressure exerted by Colombian senators who successfully delayed the auction last autumn as they were worried it would lead to further consolidation in the market.
A new draft plan for the auction was drawn up that excluded Claro from bidding for 4G last October. In response Carlos Slim visited the country and said blocking his operator from bidding would hurt Colombia’s reputation for free market competition. The 72-year-old magnate added that countries had to have clear rules to attract investors and promised US$1bn in network investments in 2013 if Claro were to receive a 4G licence.
As a compromise Ane and Mintic floated the idea of Claro being restricted to bidding for licences in the higher frequency band. At the time an analyst told TelecomFinance that this was not likely to dent Claro’s dominance as the operator serves the mass population where he thought it unlikely that there would be great demand for expensive 4G services amongst its subscriber base.
