Megacable halts plans for wireless spectrum bid

26 Apr 2010

Mexican cableco Megacable has reportedly pulled out of the country’s wireless spectrum auction, stating that having re-examined its options a move to launch its own mobile network would make little financial sense. According to Bloomberg Business Week, the operator is instead reconsidering the possibility of launching a wireless service via a mobile virtual network operator (MVNO) arrangement, with Spanish telecoms giant Telefonica’s local subsidiary Movistar Mexico mooted as one potential partner; back in February 2010 Megacable COO Raymundo Fernandez suggested that his company would ‘most probably’ select Telefonica for a reseller deal if it was not to bid for wireless frequencies.

As previously reported by CommsUpdate, the government is offering wireless spectrum totalling 120MHz split into two blocks; it will make available nine blocks of spectrum in the 1850MHz-1990MHz band in eight of the country’s nine mobile operating regions, while a further seven blocks between 1710MHz and 2179MHz will be offered in all nine regions in a separate auction. A cap of 80MHz per operator will also be imposed. The auction is due to commence on 25 May 2010, and submissions to take part must be submitted before the date.