Movistar to Award Spectrum April 21

Chilean mobile operator Movistar, a unit of Spain's Telefónica Móviles, has set April 21 as the date to award 25Mhz of excess spectrum it has in the 800MHz band, local press reported.

The company started selling the bidding rules on Monday (Feb 20) and they will be available until March 17. Movistar Chile will then receive bidding proposals until April 7.

The spectrum sale was a requirement established by Chile's antimonopoly tribunal (TDLC) to allow Telefónica Móviles to create Movistar Chile by merging its two local units BellSouth Chile and Telefónica Móvil.

TEM ended up with excess spectrum when it bought BellSouth Chile in 2004. After the sale, Movistar will only administrate a spectrum of 55MHz.

Movistar is asking for US$30mn for the spectrum, although the operator has accepted that if there is no higher or equal bid, it could award the frequency for a lower price or just give it back to the authorities.

Among the companies interested in purchasing the bidding rules are Chilean triple play service provider VTR and mobile operator Smartcom, owned by Mexico's Am

Posted to the site on 22nd February 2006