The spectrum of Avantel is endangered by merger with Wom
Decree 934, with which the Ministry of Information Technologies and Communications (Mintic) defines the new rules for the assignment of permits for the use of radioelectric resources among telecommunications companies, could leave Avantel’s spectrum in suspense.
According to the ICT minister, Karen Abudinen, the idea of the aforementioned decree is to establish the rules for the transfer of spectrum, improving the quality and coverage of mobile phone services in the regions.
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The rule, which was published on Wednesday, August 18, favors the transfer of spectrum by Telefónica over the permits that Directv had after the 4G auction in 2012. On that occasion, certain commitments were also imposed and the company did not comply with them, so I am left with 70 blocks in the 2,500 Mhz band.
Thus, Movistar will strengthen its capacities in the 2,500 Mhz band after reaching an agreement with the company on May 25, after not being able to participate in the 2019 auction due to high prices.
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Along with the spectrum that Directv had since 2014, the company negotiated the network infrastructure and the spectrum that supports the internet service, since the rule indicates that the endorsement of any transfer will not affect the administrative procedures in progress of the process.
In addition, the Mintic will resolve the request for authorization to transfer the permission to use the radioelectric spectrum within 15 business days following its presentation or from the approval of the transferee’s request related to the presentation of a technology transition plan or the adoption of technical measures.
The obligations to extend coverage, update, renewal or technological modernization and others will also be detailed in the permit, which will be part of the conditions of this execution.
In the case of Movistar and Directv, there are just over 200,000 clients, which represents more capacity for the users of the four Mobile Virtual Operators (MVNOs) that Telefónica Movistar hosts on its network, as well as for the clients of the competitors who use it. of the same through the National Automatic Roaming (RAN).
Avantel and Wom’s situation
In the case of Avantel’s spectrum, the company has 30 MHz in the AWS band (1,700 to 2.1 GHz), Wom for its part has 20 blocks in the 700 Mhz band and 20 more in the 2,500 Mhz band, but the company does not it could stay with Avantel’s spectrum since the decree establishes that “neither the transferor nor the transferee” enjoy differential regulations such as that of the incoming operator.
According to the regulation, the condition is obtained by an operator to have a differentiated rate in the use and exploitation of the spectrum and gives them the possibility of accessing differential conditions regarding the remuneration of the National Automatic Roaming (RAN), which is where Avantel has high debts with the other operators.
The conditions and those discounts in the remuneration of the regulated securities of the RAN apply for a term of five years from the moment in which permits were granted by the Mintic and once the five years end in its capacity as ‘entrant’ it concludes.
Thus, the ICT ministry will have to review if the spectrum caps for companies are met or if they will be modified in order to guarantee these transactions and on the other hand if Wom will lose Avantel’s condition or spectrum.
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