Mexico Radio Spectrum Auction Could Raise $1.5 Billion

Mexico's government could look forward to charging US$1.5 billion for wireless radio spectrum which is due to be auctioned off later this year. Basing its estimate on recent auctions in other country's, banking group, Banamex said that the government should expect between US$1-$1.5 billion from the licenses.

The regulator, Cofetel has already submitted its plans for the auction to the Federal Competition Commission for review. There will be sufficient spectrum available for a new national operator, although they would face an uphill battle to challenge the dominant operator, America Movil 's Telcel.

The Wall Street Journal said that likelihood that a foreign operator would bid is very low, according to Banamex, which cited past failed attempts by Verizon Communications, Vodafone and France Telecom to enter the Mexican market.

Figures from the Mobile World analysts shows that Telcel commands 72.5% of the Mexican market, distantly followed by Telefonica (19.5%) and Iusacell (4.5%) and iDEN operator, Nextel with 3.6%.

On the web: Wall Street Journal - Mobile World

Posted to the site on 1st June 2009