MVS confirms it will mount legal challenge to non-renewal of concession

17 Aug 2012

Just a week after the Mexican government revealed it will not renew expiring licences for spectrum in the 2.5GHz band with a view to the frequencies being refarmed for the deployment of 4G technology, MVS Comunicaciones has confirmed it will launch a legal challenge against such plans. The Wall Street Journal cites MVS chief executive officer Executive Joaquin Vargas as claiming that the state’s decision to recover the spectrum was made while his company was still in negotiations over the fate of its licences. Mr Vargas was also reported to have claimed that government officials had pressured his company on unrelated issues, with the renewal of its concessions used as a bargaining tool, while he alleged that the government was looking to overcharge MVS for the frequencies. Communications and Transport Minister Dionisio Perez-Jacome however denied such claims, reiterating the government’s previous stance that the spectrum was being underutilised.

As noted in TeleGeography’s GlobalComms Database, in March 2012 MVS confirmed that it a last-ditch bid to retain around three-quarters of its spectrum had been rejected, after it had offered the state USD340 million in November 2011. It was understood that in return for the sum offered, MVS sought to retain use of around 140MHz of its 190MHz spectrum in the 2.5GHz band for an initial period of ten years. The state, however, was understood to have valued the frequencies far more highly.