Mexico Could Raise Up To $1.5 Billion From Wireless Sale -Banamex
29 Mai 2009 - 8:27PM
Dow Jones News
Citigroup Inc.'s (C) Mexican unit Banamex said Friday that
Mexico's government could raise up to $1.5 billion from the auction
of wireless spectrum for mobile telephony services later this
year.
"It's probable that the auction of 3G spectrum takes place in
the fourth quarter and could reach close to $1 billion-$1.5
billion," Banamex said in a report.
The bank based its estimate on auctions that recently took place
in the European Union and Brazil, with a possible lack of bidders
in Mexico keeping prices at the lower end of that range.
Federal telecommunications regulator Cofetel has submitted
preliminary bidding rules for spectrum in the 1.7 gigahertz and 1.9
GHz bands to the Federal Competition Commission for review.
Cofetel said sufficient spectrum will be offered in the 1.7 GHz
band to attract a new, nationwide operator. Mexico's mobile
telephony industry is home to four operators.
Spain's Telefonica SA (TEF) has said it plans to bid for
spectrum in order to launch advanced third-generation, or 3G,
services nationwide. NII Holdings (NIHD), which operates the
country's smallest wireless carrier, has also indicated it might
participate in the auction.
Telcel, a unit of Latin America's largest mobile-phone company,
America Movil SAB (AMX), is the largest operator with a 72.5%
market share and 57.53 million subscribers at the end of March.
Banamex said that of the four incumbents, Telcel, Telefonica
Moviles Mexico and NII Holdings are likely bidders, while the No. 3
player, Grupo Iusacell SA (CEL.MX), is unlikely to participate
given its ample spectrum holdings and debt-restructuring talks with
creditors.
The likelihood that a foreign operator would bid is very low,
according to Banamex, which cited past failed attempts by Verizon
Communications Inc. (VZ), Vodafone Group PLC (VOD) and France
Telecom SA (FTE) to enter the Mexican market.
Banamex fingered Mexican media conglomerate Grupo Televisa SAB
(TV) as a probable bidder given its existing presence in the
telecommunications industry through its vast cable-TV holdings.
"We believe the probability that Televisa enters the mobile
telephony market is greater than 50%. We think the company is
interested in adding mobile broadband to its existing service of
broadband via cable," Banamex said.
Televisa executives weren't immediately available for comment
when contacted by Dow Jones Newswires.
By Ken Parks, Dow Jones Newswires, 52-55-5001-5723,
ken.parks@dowjones.com