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Mexico sets guides for frequency auction
24 November 2009
Mexico is planning to auction 3G mobile frequencies in 2010, offering the chance of competition for Carlos Slim Helú’s América Móvil
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[América Móvil]
[Telefónica]
[Mexico]
[Grupo Televisa]
[Megacable]
[Axtel]
Comment: Carlos Slim Helú is a dominant figure in Mexican telecoms — and in the industry in the rest of Latin American — and here is an opportunity to win market share away from his América Móvil in next year’s 3G auction.
Mexico has established rules for an auction of mobile phone frequencies in 2010. The new rules could introduce competition for carrier América Móvil, headed by Carlos Slim Helú, which has about 72% of the country’s subscribers.
Bidders will be required to get approval from the Mexican antitrust agency to take part in the auction. They will bid on frequencies suitable for third-generation mobile services, which may include web browsing and video downloads.
The auction, designed to boost new participants in the wireless sector, can give Grupo Televisa, Megacable Holdings and Axtel the opportunity to enter the Mexican wireless industry.
Telefónica and NII Holdings, which offer 2G mobile services in Mexico, may also bid in order to offer 3G services.
In a separate development, Grupo Televisa has raised $600 million by selling 30-year bonds in international credit markets. It is the longest dollar-denominated maturity issued by the Mexican company. The Spanish language broadcaster is also looking to spend $450 million to improve its Mexico City cable network, said Jean Paul Broc, CEO of the cable unit. GTB