Peru’s investment promotion agency has auctioned off two AWS licences to Telefonica’s local Movistar unit and Americatel, a subsidiary of Chile’s Entel, for a combined US$257m.
Movistar paid US$152.2m for the A block and Americatel paid US$105.5m…
Peru’s investment promotion agency has auctioned off two AWS licences to Telefonica’s local Movistar unit and Americatel, a subsidiary of Chile’s Entel, for a combined US$257m.
Movistar paid US$152.2m for the A block and Americatel paid US$105.5m for the B block in the 1,710 – 1,770 MHz and 2110 – 2170 MHz bands. The minimum price for both licences, which have a term of 20 years, was set at US$63.4m each.
Investment promotion agency Proinversion said the sale would put US$800m into Peru over the next 10 years, and that 234 districts in the country would have LTE coverage within six years.
America Movil and Viettel Peru were the other qualified bidders but walked away with nothing.
Telefonica dominates the local wireless market, which has a 101% penetration rate, with 63% of subscribers, streets ahead of America Movil’s Claro brand which has 33%.
Fixed-line and internet operator Americatel will take the remaining 4% of customers once Entel’s US$400m acquisition of Nextel Peru completes.
Peru’s last spectrum auction was in August 2012 when Americatel lost out to fledgling operator Viettel, which won four blocks in the 900 MHz band after offering US$48.4m.
