Movistar seeks court order

11 Jan 2005

Telefónica Móviles’ Mexican unit, Movistar, has complained to the federal antitrust regulator, the CFC, that the mobile spectrum auction plan issued on 6 January would hold it back in several key markets, because of the limit on the amount of 1900MHz PCS spectrum that companies are allowed to buy. The CFC has set limits of 35MHz for each of the country’s nine regions, much lower than the 65MHz limit set by the telecoms regulator Cofetel. It is auctioning four blocks of 10MHz in each region, meaning that Movistar cannot bid in any region where it already owns 30MHz, including region 9 (metropolitan Mexico). Movistar has accused the CFC of not being fully in favour of competition and is seeking a court injunction against the cap it has set.