Page 100 - SAMENA Trends - October 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

Mexico’s Federal Telecommunications Institute that blocks of spectrum remain deserted in spectrum
(Instituto Federal de Telecomunicaciones, IFT) has tenders.’
confirmed that it has sent a three-pronged spectrum (October 27, 2021) commsupdate.com
proposal to the Senate as it seeks to pave the way for
Mexico the 5G era. The proposals are as follows: All 1700MHz/2100MHz AWS and 1900MHz PCS
• A reduction in prices for bands earmarked to support frequencies went unsold at the latest auction of
5G connectivity, in order to promote ‘the efficient unused 4G frequencies in Mexico. The auction
allocation of radio spectrum for these services’; generated a total of MXN1.35 billion (about $65.6
5G bands listed as 600MHz, L-band (1500MHz), million), with AT&T Mexico and Telcel the sole winners
3.3GHz-3.45GHz and 3.45GHz-3.6GHz. of selected spectrum blocks and, apparently, the sole
• A modification of existing 800MHz and 850MHz bidders. Mexican press reports say that AT&T offered
licensing blocks from nine cellular regions to the biggest total bidding commitment – some $52.5
65 basic service areas to encourage smaller million for 800MHz spectrum in various regions of the
geographical rollouts by new operators; payments country. Telcel reportedly offered a more modest $13.1
to be proportional to the economic level of the million for a block of 2.5GHz spectrum. According
coverage area. to news site Bnamericas, the reason that Mexico's
• The introduction of an accreditation scheme, spectrum tender didn't excite the market was that the
whereby the provision of social coverage (i.e. prices were artificially high. These spectrum costs
serving towns lacking mobile broadband coverage) are established in the federal law on rights but set a
will reduce payment rights. barrier that may be too high to encourage the entry
These proposed measures follow a proposal sent to of new participants. Another potentially off-putting
the Ministry of Finance and Public Credit (Secretaría factor is high fragmentation of the blocks. However,
de Hacienda y Credito Publico, SHCP) this summer, the auction process is far from over. The Instituto
seeking to reduce the high prices of radioelectric Federal de Telecomunicaciones (IFT) cleared the
spectrum in Mexico. The IFT notes: ‘It is important 600MHz band for mobile use as long ago as 2018 and
to note that the first two proposals do not imply a many commentators have been waiting with interest
reduction in the budget income of the federation. In to see when it will be offered. There’s no doubt that the
the first case, the reduction of the amounts of radio planned tender for both the 600MHz and 3.5GHz bands
spectrum band rights that are not yet assigned for will be greeted with more enthusiasm, most obviously
the provision of mobile services does not mean loss because such an auction would have a role in enabling
of income, precisely because they have not yet been 5G deployment, making it a more enticing prosect.
assigned. Thus, if the amounts of the rights quotas However, it’s not yet clear when this auction will take
are reduced, these bands will be much more attractive place. It was reportedly scheduled for this year but next
in future bidding processes, which will also result in year now seems more likely.
new income from consideration and payment of rights (October 9, 2021) developingtelecoms.com
for the federation and will avoid, as already happens,

Telecoms watchdog the Agency for Electronic concessions will be valid until 1 September 2031. The
Communications and Postal Services (EKIP) has auction will be conducted using a combined format of
launched a public tender to award technology neutral a multi-round clock phase and a single round of sealed
licenses for wireless frequencies in the 900MHz, bids. Participation is open to companies and consortia
Montenegro 1800MHz, 2GHz and 2.6GHz bands for mobile with at least five years of experience in public mobile
telephony services. The bidding is scheduled to take electronic communications network operation and
place between 1 and 24 December 2021 and the service provision. (October 31, 2021) commsupdate.com

The Commerce Commission (ComCom) has released a on work currently being progressed by industry body
draft determination proposing to continue regulation of New Zealand Telecommunications Forum Incorporated
number portability for both local and mobile telephone (TCF). The current determination will expire on 19
numbers for another five years. The regulator notes December 2021 with the new determination then
New Zealand the proposed determination is essentially unchanged taking effect on 20 December 2021. Submissions are
aside from a suggested modification to help facilitate due by 26 October 2021 and cross submissions by 5
the prevention of fraud in number porting, which builds November 2021. (October 6, 2021) commsupdate.com

100 OCTOBER 2021