AT&T Mexico has followed network partner Movistar (Telefonica) and returned mobile spectrum in the 800 MHz, according to information from telecom regulator IFT cited by El Universal. The US operator returned spectrum assets covering the fifth and ninth regions of Mexico’s mobile network but retained 800 MHz frequencies held in the first and fourth regions, said the report. Like Movistar, AT&T has complained about the high cost for spectrum use in Mexico, which it says put it at a disadvantage compared to market leader Telcel (America Movil).
Movistar previously complained that it was forced to invest the equivalent of 15 percent of its annual revenues in Mexico on spectrum costs, compared to around 4 percent in the other 17 markets in which it operates. According to the report, in a reply to the IFT’s recent public consultation on a proposed auction of frequencies in the 800MHz, AWS, PCS and 2.5GHz bands, AT&T pointed out that increases in annual charges for the use and exploitation of spectrum will cost it 242 percent more per user than Telcel pays. AT&T Mexico had 18.4 million users at the end of September compared to Telcel’s 76.5 million.
Movistar reached an agreement with AT&T last year to use the latter’s network in Mexico on a long-term basis. It also decided to return its frequency concessions in the 850MHz, PCS and 2.5GHz bands by 30 June 2022.
