Mexico considers pairing 600MHz, 3.3GHz bands in 5G auction
Mexico considers auctioning spectrum in the 3.3 to 3.6GHz spectrum band at the same time as the recently liberated 600MHz spectrum set to be put on the block during the second half of 2020. The move would take advantage of the development of a technological environment for fixed and mobile communications in the band after recent auctions in Europe, the country's top telecoms spectrum official said.
Alejandro Navarrete (pictured), chief of regulator IFT spectrum unit, told BNamericas that he expects the standardization of 5G to reach completion globally sometime in the second half of 2019. Mexican operators then can take advantage of more mature technology ecosystems by the time of the planned 2020 auctions.
"One of the challenges that we face as a country is to provide the industry with low, middle and high frequency bands that can be used for the deployment of 5G," Navarrete said. "We have already freed the 600MHz band and intend to put it on auction most likely in the second half of 2020. By then the ecosystem should be much more mature."
Of the 300MHz of bandwidth in the 3.3GHz to 3.6GHz band, the IFT could also put on the block 150MHz that are not currently assigned to companies "also during the second half of 2020, probably ... at the same time as the 600MHz band. It could be attractive to put 5G bands on the market both in the low and middle range of the spectrum," Navarrete added.
Three companies, Telmex, AT&T and Axtel, have 50MHz each in the 3.3GHz to 3.6GHz band, in use for fixed wireless connectivity. The companies are in the process of renewing their concessions and could eventually apply to offer mobile connectivity through those same bands as the technology develops, he added.
Navarrete explained that the higher band has the advantage of being on the market already in several European countries, which will allow for fast technology development in the supply chain. Other bands could also be up for auction, such as the 1.5 and 2.3GHz bands, which have been tagged internationally as IMT bands, "but there are still no 5G developments in them."
Navarrete also mentioned that the IFT has yet to make a decision regarding the 24GHz and 28GHz bands – which the US recently put on the market for 5G mobile connectivity – as it is still considering the arguments of both the mobile industry and the satellite providers looking to offer broadband using that band.
5G, A DIFFERENT INFRASTRUCTURE PROPOSITION
The potential need for combined auctions, Navarrete said, stems from the complex nature of the 5G paradigm. It is more complicated because it functions as multi-layered enabler for technologies like the Internet of Things (IoT) and isn't a mere evolution as was the case between 3G and 4G.
That will require spectrum combinations ranging from the longer-reaching low frequency bands to the short-range, but also data-rich frequencies above 6GHz and particularly higher than 24GHz, Navarrete said.
Emerging technologies such as Massive IoT no longer connect just people with people, but seek to connect billions of devices to offer added value to personal and industrial users alike, forcing both regulators and companies to come up with the right model for infrastructure building.
"Infrastructure deployment," Navarrete added, "is one of the greatest challenges for 5G, especially on the millimetric bands. As their range is much shorter, there is need for more radiobases in shorter distances."
In Mexico, according to Navarrete, are "probably around 100,000 telecommunications towers," which could pose in the vast country a problem for smaller cities with underdeveloped infrastructure in terms of towers and the fiber optics loops needed for backhaul of large amounts of data.
Another challenge arises for the business model to deploy expensive networks. "Who lays the infrastructure and who pays for it?," Navarrete asked. The traditional model of telecoms operators bearing the cost of infrastructure developments could give way to one where cities or large industrial complexes foot at least partially the infrastructure bill to offer services such as smart traffic lights or autonomous public transportation, or where telecommunications companies share infrastructure instead of each using their own.
"Does it make sense to have five 5G networks ... when you have to set up [an installation] every 150 meters? Probably not," Navarrete said.
Another relevant point relates to spectrum cost, which Mexican companies have complained is too high, hindering network expansion. But in Mexico the IFT only controls auction prices, which are a small part of the total spectrum cost which also includes yearly rights set by the finance ministry, according to Navarrete.
During Mexico's most recent spectrum auction for 2.5GHz spectrum, won by AT&T and Telefónica, the companies paid a lump sum of 2.1bn pesos (US$ 111mn), but are expected to pay up to 42.3bn pesos through the length of the 20-year spectrum concessions.
The IFT, Navarrete added, is expected to publish a study in December comparing Mexico's spectrum prices with other countries. This study could serve to press for changes in spectrum pricing policy.
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