Cofetel spectrum auction greeted with mass pull out

13 Jan 2005

The Mexican telecoms regulator Cofetel has launched its mobile spectrum auction, although only four companies have registered to take part following a mass exodus from telcos upset over its recent decision to limit the actual spectrum allocations. US-based Cingular Wireless pulled out, followed by Mexican fixed line operators Maxcom and Axtel, leaving Nextel Mexico, Iusacell, América Móvil’s Telcel unit and Telefónica Móviles México as the four remaining participants. Cofetel refuses to alter its plan to limit spectrum in each of the nine PCS regions to 35MHz per operator, a decision which the operators argue prevents them from expanding in key areas.