Subject: [NEXTEL-1] Nextel executes plan despite spectrum auction delay - Mexico

From: [email-masked]
Date: Tue, 02 Dec 2003 11:45:33 -0500

Nextel executes plan despite spectrum auction delay - Mexico
Friday, November 28, 2003 17:16 (GMT-0400) 
The delay in publishing trunking spectrum bidding rules has no 
affect on digital trunking operator Nextel Mexico's business plan, 
business development vice president Gustavo Cantu told BNamericas. 

 "Nextel's business plan is based the spectrum it currently has," 
Cantu said, adding, "The auction could open up the possibility of 
expanding to places where we don't have a presence." 

Indeed, Nextel Mexico has actively acquired companies and licenses 
to boost its spectrum holdings. Parent company NII Holdings said in 
a filing with US securities regulators on November 10 that Nextel 
Mexico had acquired analogue trunking operator Delta Comunicaciones 
Digitales in August for US$39.3mn and obtained licenses in several 
cities from Servicios Troncalizados for US$9mn. Cantu said Nextel 
Mexico has also purchased a third company that owned five channels. 

At the end of the third quarter, Nextel Mexico reported 616,000 
handsets in use and operating income of US$37mn. 

Telecoms regulator Cofetel originally planned to call an auction for 
a nationwide trunking concession in the 800MHz band in September, 
with a view to awarding the spectrum before year-end. 

Sources close to the matter said the draft bidding rules are now in 
the hands of the transport and communications ministry awaiting 
final approval. Ministry officials declined to return repeated phone 
calls asking for comment. 

Setbacks and delays in awarding new frequency concessions are not 
uncommon in Mexico. In the case of trunking, authorities have not 
issued new spectrum in the 800MHz band since the telecoms law of 
1995 was passed due in part to bureaucratic inertia. 

According to Cantu, the trunking spectrum auction was always seen as 
a lengthy project. "The auction process was always been a project 
for next year because it is a long process," he said, adding the 
auction could take five to eight months to close once the bidding 
rules are published. 

Select telecoms research director Jose Garces attributed the delay 
to the government's cautious approach to public auctions in order 
avoid allegations of wrong doing or irregularities. He doubted the 
auction would end up in the courts, as have other ministry and 
Cofetel initiatives. 

"Once the spectrum is issued, trunking will be better able to 
compete with cellular operators, who in turn can take advantage of 
new technologies making it less likely they will turn to the courts 
[to delay the auction]," he said.

By Ken Parks
 
BNamericas.com
 
http://www.hoovers.com/free/news/detail.xhtml?ArticleID=NR200311283200.1_4736000af0f0bc67

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