New entrant may hinder competition, says Asomovil

17 Jul 2012

Colombian wireless operators, represented by the Mobile Industry Association (Asomovil) have criticised the government’s plans for the upcoming auction of 4G spectrum, reports La Republica. The head of Asomovil, Rodrigo Lara, said that the reservation of 30MHz of spectrum for a new player would have a negative impact on existing operators by limiting their access to 4G frequencies and thereby hindering their ability to compete effectively. He argued that spreading spectrum between too many operators would result in an inefficient use of the resource, and was unlikely to have the desired effect of intensifying competition. Rather, poor distribution of frequencies would leave incumbent operators unable to compete with other rivals.

In response, the ICT minister, Diego Molano Vega said that the government would be making an announcement, clarifying the terms of the auction. He added that the main goal of the tender was to increase the accessibility and availability of internet services: ‘The most important objective is to get 4G internet to the lower strata quickly…We hope to achieve our goal of 8.8 million [internet] connection in 2014.’

Colombia