AT&T, Movistar receive 2.5GHz spectrum licences in Mexico

27 Nov 2018

Mexico’s Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has confirmed that AT&T and Movistar have been formally awarded the concessions they won in the regulator’s 2500MHz-2690MHz (‘2.5GHz’) spectrum auction, which was held in August this year.

In terms of up-front costs, AT&T has paid MXN1.4 billion (USD68.4 million) for two FDD-LTE blocks and two TD-LTE blocks, while Movistar has paid MXN700 million for a pair of FDD-LTE blocks. Over the course of the next 20 years the allocated spectrum will generate revenues close to MXN44.4 billion, which includes annual usage rights.

Going forward, both licensees will be obliged to provide services in at least 200 of the 557 localities with a population between 1,000 and 5,000 inhabitants, which currently lack a mobile service. In addition, they must deliver connectivity to at least ten of the 13 metropolitan areas with more than one million inhabitants within the next four years.

TeleGeography notes that market leader Telcel did not participate in the process, after acquiring 60MHz of 2.5GHz frequencies via the secondary spectrum market in July 2017. Telcel’s concessions were acquired from Grupo MVS and cover 1,575 localities, equivalent to coverage of 75.41% of the national population.