Category Archives: Uncategorized

Dominican Republic’s Regulator Auctions Spectrum

Dominican Republic regulator Indotel has launched a public spectrum tender for provision of mobile telecommunications services two years after it was initially announced.

With this tender, Indotel will grant concessions and licences for the use of  900 MHz, 1700-2100 MHz spectrum radio frequencies bands across the country. The tender winner will be awarded on 21 April.

The Caribbean country has four mobile operators Trilogy,  Orange,  Tricom/Viva  and Claro.  Earlier this week, Indotel announced the approval of the sale of Orange Dominicana to Israeli-owned cable and mobile operator Altice.

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Digicel Jamaica acquires LTE Spectrum

DigicelCaribbean operator Digicel has acquired the 700Mhz radio spectrum at half the $45 million price tag that the Jamaican government failed to sell it at last October.

Phillip Paulwell, minister of science, technology, energy and mining, outlined the spectrum block band had been sold for USD25 million.

“In retrospect, it would have been difficult for us to have got as much as we thought there was value in it and even after we were seeking to negotiate, we were way below the USD25 million. People were coming to us at 10. Getting 25 in the end has been quite significant,” the minister told local newspapers.

The government has still only sold one block of 700Mhz spectrum, and still aims to sell the remaining blocks.

America Movil Challenges Competition Regulatory Ruling

TelmexLogoAmerica Movil has confirmed that it is filing an objection to a regulatory ruling that declared the company to have a dominant position in the Mexican telecoms market.

Such a declaration was widely expected when it was handed out by the competition regulator, and allows the telecoms regulator to impose regulations designed to support the smaller networks.

The challenge appears to be based on the wording of the declaration, as the regulator chose to treat America Movil, its fixed and mobile subsidiaries Telmex and Telcel, conglomerate Grupo Carso and banking company Grupo Financiero Inbursa as a single holding entity.

America Movil argues that they are separate companies. Even still, with with a 70 percent market share in the mobile market, America Movil may struggle to persuade the regulators that they are mistaken in their ruling, even if the technical method is overturned.

If the ruling is upheld, then America Movil will be subject to a ban on charging national roaming fees, a mandate for infrastructure sharing and tighter regulation of interconnection fees.

Further action could be taken, but not for another two years. One option open to the regulator is to force the company to sell assets, or some of its customer base to its rivals to bring its market share down to below 50 percent.

The new regulator, the Instituto Federal de Telecomunicaciones (IFT) was created last summer as part of the reform of Mexico’s telecom market. The reform granted IFT more powers than the previous telecom regulator had, including antitrust authority. The telecommunications reform is among a wave of measures introduced by Mexican President Enrique Pena Nieto that have included overhauls of education and the energy sector.

Chile’s VTR acquired by Liberty Global

Chilean based operator, Liberty Global has acquired the remaining 20 percent of the outstanding shares in both VTR GlobalCom SpA and VTR Wireless SpA. Liberty Global purchased these shares in VTR from a subsidiary of Corp Group Holding Inversiones Limitada in exchange for 10.1 million Liberty Global Class A ordinary shares.

The share consideration had a market value of approximately USD 422 million, based on the closing price of LBTYK of USD 41.80 per share on 13 March. As a result of the transaction, VTR Finance BV, the parent entity of the recently created Chilean credit pool, will now own 100 percent of both the Chilean broadband communications and wireless businesses.

Colombia regulator orders incumbents to provide roaming

avantelColombia’s telecommunications regulator has ordered incumbent operators Claro, Tigo and Movistar to grant Avantel access to and use of the essential facility of National Automatic Roaming.

In a statement, Communications Regulation Commission (CRC) said it will grant them  one calendar month to implement this measure. As a result, Avantel will have coverage for the provision of voice, text messages (SMS) and internet access to users in areas where it has not deployed its 4G network, using the infrastructure of the other three operators.

This measure was taken in response to the requests made by Avantel to the CRC in December 2013, in which it pointed out that it requested access to this service nationwide from Comcel, Tigo and Movistar in late August 2013, but had no response.

Mexico Broadband NIBA Network tender won by Axtel

Axtel, the Mexican based fixed line operator has won a project tender by the Mexican Ministry of Communications and Transportation (SCT) for the deployment of broadband connections across 40 metro areas in Mexico. The goal of the initiative is to increase the bandwidth for commercial internet access for the NIBA network through interconnection points in three cities; Monterrey, Guadalajara and Mexico City to bring high speed network connections to 60 percent of the Mexican population.

Axtel’s bid of USD 2.82 million (MXN 37.6 million) for the next four and half years successfully outbid eight other operators in the tender. Axtel will offer a 30 Gbps service for the NIBA network projectto increase broadband access in higher education institution, research centers, and large hospitals.

Embratel to invest 2.2 billion BRL in Claro Brasil

Brazilian fixed line operator Embratel Participacoes plans to invest BRL 2.2 billion in mobile network operator Claro Brasil. Both companies are owned by America Movil. The initiative follows a board meeting in April, when Embratel, Net Servicos and Claro agreed to consolidate their activities and integrate fixed and mobile operations.

Embratel’s investment will be made in the form of purchase of Claro shares, giving Embratel a minority stake in the company. According to Embratel, the investment should facilitate the merger of the fixed and mobile platforms and the offer of integrated services to customers.