First round of Mexican wireless auction generates MXN438 million

26 May 2010

Mexico’s Comision Federal de Telecomunicaciones (Cofetel) has revealed that it received approximately MXN438 million (USD33.5 million) in bids during the initial round of auctions for wireless spectrum in the 1700MHz and 1900MHz bands, according to Business Week. It is understood that for the 90MHz of frequencies available in the 1700MHz band the regulator received offers totalling MXN343.3 million, while the 30MHz up for grabs in the 1900MHz range generated bids of MXN94.4 million. A second round of bidding is now expected, after some portions of the airwaves available did not receive valid bids; the second round for both the 1900MHz and 1700MHz frequencies will start tomorrow. Cofetel has also yet to disclose the identities of the bidders, although it is widely expected that local telecom giant America Movil, third-placed mobile network operator Iusacell, and a pair of Mexican fixed line operators, Axtel and Maxcom are in the race having purchased bidding packs at the beginning of 2010. In total, as previously reported by CommsUpdate, The 44 companies acquired the bidding rules for the auction of spectrum in the 1850MHz-1990MHz band, while 49 bought rules for the auction in the 1710MHz-2170MHz band.