The government is preparing to open the call for tenders for the 5G network in Uruguay in April, while the mobile phone companies involved in the auction are still dissatisfied with some points of the list.
In the next few days, after the Tourism Weekit is expected that, finally, the Executive Branch will open the tender to assign the two blocks within the 3.5 GHz spectrum for 5G that will belong to private companies and will be complemented by the third block reserved for Antel. However, this does not mean that the controversies are settled. On the one hand, Dedicated it continues demanding to participate in the tender and states that the requirements are deliberately exclusive of national companies; but also the technical arguments have gained weight in recent days.
Among the aspects of the auction specifications mentioned is the fact that the Executive Power only includes in the decree 425/022 the bidding in the 3.5 GHz band, excluding the 900 MHz, 1,700/2,100 and 26 GHz bands —low bands and millimeter bands.
This leads to operators who want to deploy the 5G NSA —5G plus 4G, a cheaper and simpler alternative at the infrastructure level, but also less fast in service— they must already have those bands, which happens both with Clear as Movistar. This means that, in simple terms, those new operators who want to enter the market must do so with 5G SA —pure 5G—, for which they will need a greater investment. Something that some of the companies understand as an advantage for current operators.
Another noteworthy detail is that the base price of the tender was lowered. In the first draft delivered to the operators in June 2022, it was indicated that the base was 50 million dollars; but in the final document of December 27, 2022, a series of changes were introduced.
The main ones were the lowering of the base price to 29 million dollars and the constitution of the bidding in a closed modeOnly those who already have a license for international mobile telecommunications can participate: Antel —which already has a reserved spectrum—, Claro and Movistar, and those telephone companies that have operations in at least two countries in the region.
But another change that generated disagreements was that the original draft indicated that those who had authorization for Internet service —such as, mainly, Dedicated— could obtain authorization for mobile telephony service. Something that, finally, in the document sent to the companies, did not happen; and that led the local company to accuse the government of intentionally excluding it.
Complaints that keeps 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”.
Source: Ambito
