Megacable seeks ‘just compensation’ to return 2.5GHz spectrum

11 Nov 2013

Mexican cable operator Megacable has reportedly called for ‘just compensation’ in return for surrendering a portion of the spectrum it holds in the 2.5GHz band, according to BNamericas.

As previously reported by CommsUpdate, last month Mexico’s government said it had agreed to a deal with the majority of companies holding frequencies in the aforementioned band under which it will recover a significant portion of such spectrum. At that time it was said that nine of the eleven licence holders had voluntarily given up at least a portion of their spectrum holdings, while the Secretario de Comunicaciones y Transportes (SCT) was said to have confirmed that the concessions for the remaining 60MHz of spectrum that was not being returned had been extended for 15 years.

Megacable’s assistant general director Raymundo Fernandez has been cited as saying that the cableco is in talks with the state over the matter, with the executive claiming that the government ‘can’t just come along and take the band without some sort of compensation’. Such a position comes as the operator has said it had invested money in using the disputed spectrum to offer pay-TV services; at present Megacable only uses the frequencies in Ciudad Juarez, with between 12,000 and 13,000 subscribers accessing services over the network there. Nonetheless, Mr Fernandez has claimed that the decision to just hand back the frequencies would have been easier for the likes of MVS Comunicaciones, as the latter operator has already migrated most of its pay-TV customers to its Dish satellite service.

Meanwhile, in separate but related news, Iusacell is said to have filed a lawsuit against the SCT for its decision to renew licences for the 2.5GHz spectrum that are not being returned. As per its legal action, the mobile network operator is said to have argued that the extension of the concessions violates a number of constitutional articles.