The Mexican government has almost finished its first ever auction of radio spectrum for communications services.
Mexico’s new Federal Telecommunications Commission began taking bids on Oct. 21 for 36 paging licenses-nine nationwide and 27 regional-in the 900 MHz to 932 MHz range, said Gina Dalma, a spokeswoman for Mexico’s FTC. Three regional providers and one national provider will operate in each of Mexico’s nine cellular regions, she said.
Bids totaled about $1.67 million after the ninth round of bidding. Seventeen companies are participating, including current paging providers Biper, the top bidder for three national licenses after the ninth round, and Enlaces Radiofonicos.
About 75 percent of the bidders are new paging companies, Dalma said. Avantel, which is partly owned by MCI Communications Corp., was in the lead for two national licenses, and Mexico’s national telecommunications company Telefonos de Mexico (Telmex) was the top bidder in one national market. Telmex, which is bidding through its subsidiary, Buscatel, is the majority owner of Radio Mobile Dipsa, Mexico’s national cellular operator.
Under FTC rules, paging companies must meet three requirements in order to obtain their licenses, said Dalma. They must verify they have the financial capability to build out a network, be in “good legal standing” and deploy a proven technology. License winners also must build out their networks to cover 25 percent of their service areas within two years and 50 percent within three years, or they can lose their licenses, said Dalma.
As previously reported in RCR, the Mexican telecommunications industry is growing seven times faster than the rest of its economy. Paging service is available in about 55 major cities, and subscriber growth has increased 43 percent annually from 1991 through 1995. But the penetration rate of paging service remains low because pagers are overpriced and the service hasn’t become a standard need in the country, said Dalma. More providers will drive the price down, she said.
“There are 260,000 pagers in a country of 91 million. Right now you have to pay 150 pesos ($18.90) per month for a pager.” That price is too high for consumers when one considers Mexico’s gross domestic product per capita is one-10th of the United States’, added Dalma.
The FTC plans to hold more auctions within the next year for broadband and narrowband personal communications services, digital radio, specialized mobile radio service and voice and data communications.
Mexico’s new FTC was mandated by a January 1995 amendment to Mexico’s constitution, giving it the same powers as the U.S. Federal Communications Commission.
