Mexican Spectrum Bidding Over, But Allotments Must Wait"

MEXICO CITY -(Dow Jones)- Mexican wireless companies have finished bidding in an auction for 1900 MHz frequency spectrum, but a legal battle between operators and antitrust regulators means allotments will take more time.

The Federal Telecommunications Commission, or Cofetel, auctioned four blocks of 10 MHz in each of the country's nine wireless regions.

Bids totaled 190.9 million pesos ($1=MXN11.2010), of which America Movil SA (AMX) unit Telcel submitted bids for 85.1 million, Spain's Telefonica Moviles SA (TEM) for MXN48.6 million, and Grupo Iusacell for MXN57.2 million.

Unefon SA (UNEFON.MX) decided not to take part, while Nextel de Mexico, a unit of NII Holdings (NIDH), pulled out after securing spectrum at 800 MHz in a previous auction, which it said was adequate for its expansion plans in Mexico.

According to the list of highest bids, Telcel would acquire two blocks in Region 9, which includes Mexico City with its 20 million inhabitants. Telefonica Moviles and Iusacell would each get one block in the region.

But before Cofetel can assign any of the blocks, disputes between operators and the country's antitrust regulator, the Federal Competition Commission, of CFC, must be settled.

Telefonica and Telcel obtained court injunctions against the 35 MHz limit at the 1900 MHz frequency that the CFC imposed on any operator in any one region. Those caps would have kept Telefonica Moviles from bidding for more spectrum in Region 9, and would have limited Telcel to bidding for a single block.

Cofetel's bidding rules limited operators to 65 MHz in any one region in a combination of frequencies. Wireless services are also operated at 850 MHz.

Telcel is the country's biggest wireless operator and has 28.9 million subscribers at the end of 2004. Telefonica Moviles had 5.6 million subscribers, and Iusacell had 1.5 million.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5080-3450, anthony.harrup@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 5th April 2005