Colombia modifies guidelines for spectrum auction

Colombia's ICT ministry Mintic modified the guidelines for the auction of spectrum in the 700MHz and 1900MHz bands.

One key change includes the government tendering 70MHz distributed in seven blocks in the 700MHz band. The original guidelines contemplated tendering four blocks in this band.

The 1900MHz band contemplates two blocks totaling 5MHz.

Colombia recently modified the spectrum caps, raising them to 90MHz for high frequency bands and 45MHz for lower frequency bands. The measure aimed to increase participation in the tender.

Some modifications to the guidelines also concern new social obligations, such as modernizing infrastructure and helping in the implementation of free Wi-Fi zones. Additionally, priority will be given to smaller operators when selecting coverage areas.

Interested parties may submit their comments to consultaespectro2018@mintic.gov.co as part of a public consultation that will be open until February 20.

OPERATORS OBJECT

Colombia's leading mobile operators Claro and Telefónica argue this is not the best time for the authorities to carry out a spectrum tender.

According to the telcos, the country is experiencing economic difficulties, so it is hard for operators to sustain investments.

Revenues from mobile data totaled 1.02tn pesos (US$359mn) in the third quarter of last year, up 20% from a year earlier. On the other hand, revenues from mobile voice services dipped 13% year-on-year, totaling 1.03tn pesos in the quarter.

Additionally, Claro and Telefónica were subjected to a historic fine of 4.7tn pesos, which took a hard toll on their capex.

In 3Q17 Claro and Telefónica had 57% and 30% of Colombia's mobile broadband market respectively.