Mexico raises USD2.4bn via AWS auction; Telcel secures lion’s share of spectrum

19 Feb 2016

Mexico’s Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, Ifetel) says it generated a total of MXN43.7 billion (USD2.4 billion) as a result of its Advanced Wireless Services (AWS) spectrum auction. A total of 80MHz worth of 4G-suitable spectrum in the AWS-1 (1710MHz-1725MHz/2110MHz-2125MHz) and AWS-3 (1755MHz-1780MHz/2155MHz-2180MHz) spectrum bands has been sold via a three-stage Combinatorial Clock Auction (CCA).

America Movil (AM)-backed Telcel (registered as Radiomovil Dipsa) has committed to pay a total of MXN31.0 billion for 20MHz (2×10MHz blocks) of AWS-1 spectrum alongside 40MHz (2×20MHz blocks) blocks in the AWS-3 band. For its part, AT&T Mexico (registered as AT&T Comunicaciones Digitales) secured 20MHz (2×10MHz blocks) of AWS-1 spectrum, paying MXN12.7 billion for the frequencies. All spectrum allocations are valid for a period of 15 years.

Further, Ifetel confirmed that following the auction, Telcel will hold a total of 41.2% of the available International Mobile Telecommunications (IMT) spectrum in Mexico, narrowly ahead of AT&T (38.2%). Telefonica-backed Movistar – which opted not to participate in the process – holds a total of 19.5%, while the remaining 1.1% of spectrum is held by construction firm Grupo SAI.