The auction for the 5G spectrum in Uruguay It continues to generate controversy among the telecommunications companies that operate in the country, even after the deadline for making comments and disclaimers on the draft of the specifications prepared by the Executive power with the aim of advancing on the already delayed project, which would be put out to tender in April.
Much has been said in recent months about the 5G network and the process that seeks to tender two of the three available spectrums —one is reserved for Antel—, in order to begin the modernization of telecommunications in the country. In early February, the government approached companies interested in participating —Movistar, Claro, Dedicated, 5G Americas, GSMA and asiet— the first draft of the document with the terms and conditions for the auction. There the most recent problems began.
Although the discontent already had precedents: the automatic renewals of the 3G and 4G spectrums in December. At that time, the government had decided to renew the concessions without passing the frequencies through a bidding process, while it considered that the chances of a new relevant player appearing to compete for the same bands as any of the three operators were practically nil. .
But another reason was that the auction for 5G was already being prepared, and the Executive was looking for a competitive bidding. To do this, they wanted telecommunications companies to be able to focus on preparing their proposals without other concerns regarding the viability of their services.
However, the strategy did not turn out as expected by the authorities: on the one hand, the two most important companies in the local telephone scene, Movistar and Claro, presented complaints not only for automatic renewal —especially in the case of the company belonging to Mobile America—; but also for the 5G network tender conditions. The advantages granted to Antel in the process, as well as the basic price of the tender, were the central points of contention.
On the other hand, a round trip began with Dedicado, for whom knowledge of the specifications also implied the certainty that he would not be able to participate in the auction. Faced with this, the Uruguayan company had denounced deliberate attempts to exclude it from the bidding process from the inclusion of specific clauses and demands much greater than those that the government had implemented in previous auctions.
The new complaints of Dedicated
Although from the Communication Services Regulatory Unit (Ursec) insisted that the auction was transparent, the minister of Industry, Energy and Mining (MIEM), Omar Paganinion the “background and reasonable requirements” based on having the necessary capacities to develop 5G technology in the country.
Also, in dialogue with Montevideo Portal, the head of MIEM recalled that Dedicado has two of the five 3.5 GHz blocks, of 100 MHz each, which were not awarded through auction, as is normally the case. “We are not discriminating against anyone, what we are asking for are reasonable conditions. The important thing is to ensure that you have background and the ability to develop the service“, held.
However, Dedicado did not take long to respond and express his “surprise” at the minister’s statements, once again using the argument of the requirements included exclusively to exclude “all national companies -including Dedicado- that do not provide International Mobile Telecommunications Services (IMT)”.
They also stated that “the requirements clearly leave the national operator out of competition by requiring in the specifications that they be multinational companies with operations in other countries”; although it is also clarified that legal or natural persons who meet another series of requirements and with experience providing services in other countries may participate.
The company also considered that the question of the 3.5 GHz spectrum explained by Paganini was inaccurate, since “it was assigned by open, free and equal competitive procedure in which 15 companies participated in 1999”.
What does the sheet say?
The specifications determine that the auction will be for three lots of radio frequencies corresponding to the 3.5 GHz band, of which one will be reserved for Antel, which will pay the average value at which the other two are acquired. He base price It will be 28 million dollars.
Likewise, participating companies must be authorized to provide “mobile communications” services or meet a series of prerequisites and be “prequalified”. Among them, a minimum experience of two years providing international mobile telecommunications services, within the last five years in at least two countries of North, Central or South America and/or Europe.
They will also have to present the financial statements corresponding to the fiscal years of the years 2020 and 2021 and demonstrate that they invoice more than 50 million dollars annually. Conditions to which are added a series of requirements for the winning companies.
Source: Ambito
