Mexico’s Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has confirmed that AT&T and Movistar have been awarded frequencies in its recent 2500MHz-2690MHz (‘2.5GHz’) spectrum tender. Over the course of the next 20 years the allocated spectrum will generate revenues close to MXN44.4 billion (USD2.4 billion), which includes annual usage rights. In terms of up-front costs, AT&T will pay MXN1.4 billion for two FDD-LTE blocks and two TD-LTE blocks, while Movistar will pay MXN700 million for a pair of FDD-LTE blocks. The IFT notes that, as a result of this tender, the spectrum allocated for mobile broadband services in Mexico has increased by 26.5%.
Going forward, both licensees will be obliged to provide services in at least 200 of the 557 localities with a population between 1,000 and 5,000 inhabitants, which currently lack a mobile service. In addition, they must deliver connectivity to at least ten of the 13 metropolitan areas with more than one million inhabitants.
