The proposed design of the 5G spectrum auction goes against the best international practices in spectrum allocation, GSMA said
The proposed scheme announced by Argentine telecommunications regulator Enacom to auction 5G frequencies could potentially put at risk the development of 5G technology in the South American nation, the GSMA said in a release.
“The proposed design [of the 5G spectrum auction] goes against the best international practices in spectrum allocation and puts the future of 5G in the country at risk,” GSMA said.
“The spectrum has no intrinsic value. Operator investments make it a valuable asset: connectivity. Therefore, the appropriate price is the one that adjusts to the reality of the market and the objectives of public policy. The price set in Argentina is very high in relation to the economic situation of the country and the income of the industry,” the industry association added.
Last week, Argentine mobile operators issued a joint statement opposing the terms recently approved by the government to auction 5G spectrum. In a release, mobile carriers Personal, owned by Telecom Argentina; Movistar, owned by Spain’s Telefonica; and Claro, owned by Mexican telecommunications group America Movil, urged the government to revise the tender documents for the 5G auction as they considered that the recently approved terms were not viable.
They also said they will not participate in the process if the government failed to change the main terms of the spectrum auction.
Enacom recently confirmed it will make available a total of 300 megahertz of spectrum in the 3.3-3.6 GHz bands, in three batches of 100 megahertz. The regulator said that it expects to collect $350 million with each portion of 100 megahertz of spectrum in the process.
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“It should be noted that the price assigned to each of the three blocks of 100 megahertz of spectrum in the 3.5 GHz band is very high compared to the macroeconomic situation of the country, our clients and the sector,” the telcos said.
The telcos also noted that “the base price set by Enacom is 300% higher than that of the same band established by Brazil, which has a completely different economic situation and is one of the best examples of 5G spectrum auction in the region.”
They also opposed to the fact that the government decided to allocate 100 megahertz of spectrum to state-run operator Arsat for free, stating that this decision would generate economic distortions and legal uncertainties in the local telecommunications market.
5G subscribers in Argentina are expected to reach 34.7 million by 2030, up compared to 5.7 million in 2025, according to a report by telecom association GSMA.
The GSMA report showed that 5G penetration in Argentina is expected to reach 9% by 2025 while it would expand to 48% by 2030.
GSMA also noted that the development of 5G technology in the country can generate an economic contribution of $8 billion by 2030.