Govt: Mobile Spectrum Guaranteed for Telco Cooperatives

Argentine telephony cooperative associations Fecotel and Fecosur need not worry about obtaining mobile spectrum to offer services, local telecommunications regulator CNC's head Ceferino Namuncurá told BNamericas.

On July 24, telecommunications ministry SeCom authorized Fecotel and Fecosur to provide mobile telephony. However, the cooperatives now need to request spectrum and there has been some concern about how much spectrum is available and speculation about whether other telcos may compete for that spectrum.

Movistar, a unit of Spain's Telefónica, is obliged to return 35MHz of spectrum to the government because it exceeded the 50MHz maximum when Telefónica merged its Argentine mobile operation with BellSouth Argentina in 2005.

Argentina's third largest mobile operator CTI Móvil, owned by Mexico's América Móvil, is rumored to be keen to get its hands on more spectrum to enable it to compete better with the two market leaders Movistar and Personal, of Telecom Argentina.

However, the government will ensure there is spectrum for the cooperatives, Namuncurá said.

"The state currently has enough available mobile spectrum for the cooperatives project," Namuncurá said, clarifying that because the cooperatives will initially focus on niche markets they will require less spectrum than the big mobile operators in the cities.

Darío Oliver, general manager of telephony cooperative Telpin, told BNamericas last week Fecotel will need 10MHz in the 1,900MHz band for its project.

According to Namuncurá, CNC first has to evaluate the technical projects of the cooperatives and then SeCom will be in charge of awarding the mobile spectrum.

"CNC is in favor of awarding mobile spectrum to the cooperatives," Namuncurá said.

Fecotel and Fecosur believe they have a potential market of 2mn nationwide. According to previous press reports, both associations will use GSM technology.

Namuncurá declined to comment on how other surplus spectrum would be awarded."

Posted to the site on 1st August 2007