YOU ARE AT:5GMexico to launch 5G spectrum auction this month

Mexico to launch 5G spectrum auction this month

The IFT-12 tender will allocate 2,223 blocks of radio spectrum across several frequency bands for 5G services

Mexico’s telecommunications watchdog Federal Institute of Telecommunications (IFT) has announced the launch of the IFT-12 spectrum tender, a major step in the country’s efforts to expand 5G connectivity.

In a release, the regulator noted that the tender, set to begin on January 27, 2025, invites interested parties to express their interest in acquiring portions of the radio spectrum for wireless services.

The IFT-12 tender will allocate 2,223 blocks of radio spectrum across several frequency bands, including the 600MHz band, the L-band, the 800MHz band, the AWS band, the PCS band and the 2.5GHz band. While the tender focuses on 5G deployment, some of the spectrum may also be utilized to enhance existing LTE networks, according to reports.

The IFT noted that the tender’s bidding process will use a multiple-round ascending simultaneous format, allowing bidders to compete in up to three rounds. The IFT has set limits on spectrum acquisition to prevent excessive concentration by any single player. These limits will increase with each successive round if spectrum remains unallocated, ensuring a fair and competitive process, it said.

The first round permits bidders to acquire up to 20% of low-band spectrum and 20% of the total spectrum in each geographic region and nationwide. In subsequent rounds, these limits rise to 30% and then 35%, provided spectrum is still available.

With the aim of attracting participants and promote affordability for end users, the IFT has incorporated financial incentives. Depending on the amount of spectrum assigned and the market share of bidders, reductions of 25% to 40% will be applied to the calculation of fees.

Additionally, the tender imposes coverage obligations on spectrum blocks in the 600MHz and 2.5GHz bands. These requirements aim to expand connectivity in underserved areas, such as rural communities and unconnected highway sections.

Mexican operators AT&T Mexico and Telcel, owned by America Movil have already deployed 5G infrastructure across Mexico. Telcel initially launched its commercial 5G network in February 2022 in 18 of Mexico’s largest cities, using infrastructure from Ericsson and Huawei.

AT&T Mexico is offering its 5G services in various cities across the country. The operator’s 5G services are active in Mexico City, Guadalajara, Monterrey, Tijuana, Mexicali, Ciudad Juárez, Mazatlan, Ciudad Obregon, Navojoa, Guasave, Ensenada, Puerto Penasco Guamuchil, Hemosillo, Culiacan, Saltillo, Torreon and Morelia, among other cities.

Movistar is using AT&T’s network infrastructure for the provision of 5G in Mexico.

The long-awaited IFT-12 may the last tender carried out by the IFT before its final disappearance in 2025.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.