Mexico: Slim’s Telcel purchases 60MHz from rival Grupo MVS

Telecommunications giant América Móvil, through its cellular phone division Telcel, has purchased the usage rights to 60MHz of broadband spectrum owned by rival media group Grupo MVS, in a secretive deal and for an undisclosed amount. Billionaire and América Móvil’s main shareholder Carlos Slim refused to provide more details, yet remarked that the deal is not yet final, being dependent on getting the approval of the Federal Telecommunications Institute (IFT).

Jorge Fernando Negrete, president of the Mexican Association for the Right to Information has said that the agreement is of major relevance, as it represents the first time broadband spectrum has been sold in a secondary market, thus fulfilling the requirements of recent competition and telecomm law reforms carried out in 2013.

“The indirect purchase of 60MHz in the 2.5 GHz range by Telcel will incentivize a more efficient use of the spectrum, leading to more investment in urban centers, better mobile communication services and, likely, a turnaround in the industry’s plunging profits”, said Negrete.

Full Content: Milenio

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