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Mexico to Launch 5G Contest in Late January

Mexico is set to kick off the IFT-12 tender on January 27, which will make spectrum available for the development of 5G networks across the country. This announcement was made by the Federal Institute of Telecommunications (IFT), inviting potential buyers to express their interest in participating in the bidding process.

The IFT-12 tender aims to allocate 2,223 radio spectrum blocks for wireless access services across various frequency bands, primarily targeting 5G technology. However, some reports suggest that portions of the spectrum may also be utilized to support or expand existing LTE networks.

As of September 2024, only two 5G networks have been deployed in Mexico, operated by AT&T and Telcel's Radiomovil Dipsa. Additionally, there are five LTE networks in the country, each owned by different operators, indicating a competitive telecommunications landscape.

The bidding process for the IFT-12 tender will utilize a multiple round ascending simultaneous mechanism. This approach will involve up to three rounds of competition, with spectrum acquisition limits increasing in each round based on demand from the previous contest and the availability of spectrum.

The IFT has implemented limits on spectrum accumulation to prevent anti-competitive practices and to avoid creating barriers to entry for new participants. The goal is to enhance competition and ensure that existing operators can compete effectively while promoting the efficient use of the spectrum.

To encourage participation, the IFT has incorporated incentives aimed at fostering competition and ensuring that services are offered at competitive prices for consumers. The available spectrum will include blocks in the 600MHz band, L-band, 800MHz band, AWS band, PCS band, and 2.5GHz band, catering to both national and regional coverage needs.

Notably, there are coverage obligations associated with the national blocks in the 600MHz band and the 2.5GHz band, specifically designed to enhance service in less well-served areas of the country.

The upcoming IFT-12 tender may be the last conducted by the IFT before its anticipated dissolution in 2025. As the telecommunications landscape in Mexico evolves, this tender represents a significant step toward expanding 5G infrastructure and improving connectivity across the nation.

For more detailed information about the tender and its implications, interested parties can visit the IFT's official website.

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