Efficient Reallocation Of Spectrum In The 2.5GHz Band

Efficient Reallocation Of Spectrum In The 2.5GHz Band

The 2.5 GHz band , one of the crucial parts for the establishment in the form of 4G Network in Mexico , had been in previous weeks engrossed in a strong dispute between the Federal Government and various private companies owning some concession on the use of this spectrum , highlighting the case of Grupo MVS , who for some time had been in conflict with the subject of his award . Today, finally , after a month of negotiations, the Secretariat of Communications and Transportation -SCT , has managed to agree on a collective basis for the return of most of the band , making now the official announcement of the new operating conditions for concessionaires , in what represents one of the most important steps towards the intervention of the Federal telecommunications IFT for the final regulation for the awarding airwaves and offer telecommunications services, highlighting among all the mobile phone.

In Mexico, the discussion on the 2.5GHz band has led to all sorts of controversy and poses, because even if international experience has shown that these frequencies are optimal to provide next generation mobile broadband services in Mexico, until recently, it is still used to provide microwave satellite services, technology that has proven to be obsolete, resulting in a suboptimal use of the spectrum.

So a couple of years ago, the Ministry of Communications and Transport (SCT) announced the refusal to extend the concessions in this band, seeking to rescue them, later to achieve an efficient allocation, a situation that resulted in a number of lawsuits and defenses by 11 currently in possession auto block in the 190 MHz band.

In October 2013, eventually came to an agreement between the dealers and the SCT, which provides that 130MHz spectrum in their hands (68% of total) will be released to the authorities for reallocation. In return, were granted an extension to these operators in the remaining 60MHz for 15 years, from 2013, which may offer converged telecommunications, in order to provide services in the medium term BAM.

However, this decision was taken even without the operators have submitted evidence that they have the resources or even the provision of infrastructure can deploy the mobile broadband services they need, and can result in an inefficient use of spectrum, prejudicial digital adoption in all ways.

Furthermore, it is worth mentioning that this block of 60MHz which is left in the hands of operators carries considerable weight as the average spectral tenure among mobile operators is barely 61 MHz, even after all the bids that have been out, while in this case is left in the hands of a few, without regard to principles of efficient allocation.

In contrast, an efficient spectrum allocation policies aligned to the development and growth of the country will have a greater impact on society as a whole. The 2.5GHz band is a great opportunity for them to expand the coverage and competition in the provision of mobile data services, as the shortage that occurs naturally the spectrum can be mitigated by new technologies that can transmit a larger amount of information at higher speed and lower prices through more efficient use of the spectrum.

Secondly it is extremely important to democratize the ownership of the spectrum, and to distribute this resource in different hands facilitates the better services at lower prices through increased competition in a market, increasing consumer welfare directly.

In addition, the re-bid the frequencies between several companies, the government has a greater chance of succeeding in meeting the objectives of such a concession, as technological advancement has shown that what was considered efficient few years ago, today not only inefficient but obsolete. This may be reflected in new major players, highly relevant to a mobile segment competition is urged.

So it remains to ask the new Mexican telecom regulator to perform this assignment urgently and in any suitable form, taking into account public consultation and successful international experiences, as there is no worse harm to the country that keep this resource idle.

 

2.5 GHz band Agreement terminates litigation: Ansitel

With the agreement in the band of 2.5 gigahertz (GHz), the dealers involved privileged the public interest and the need to put an end to litigation “for the good of the country,” said National Association of Telecommunications Wireless Services (Ansitel).

The dealers were terminated and the various courts and administrative proceedings brought against acts of authority.

And with it, exposes the organization said in a statement, it closes a sorry episode characterized by litigation and lack of clarity in spectral policy, delaying for years the optimum use of the band and the legitimate exercise of the rights of dealers.

On Monday October 14, the Ministry of Communications and Transport (SCT) reported that nine of the 11 dealers in the 2.5GHz band, including MVS Multivision, voluntarily resigned 130 of the 190 Mhz that integrate, which the State gratuitously recovers 68 percent of the amplitude.

The federal agency stated that this spectrum have recovered for the nation, strengthens the state’s ability to achieve greater coverage of broadband services.

The Ansitel states that the portion of the band recovered by the state is available to the Federal Telecommunications Institute and is a very relevant spectral dividend for the nation.

So “put an end to litigation and there is an opportunity to provide art services, in addition to giving the State the opportunity to have 130 Mhz via tenders. Certainly not the best scenario for the dealers, but the agreement was viable, “said Alejandro Mayagoita, representative of dealers and Ansitel president.

 

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