Uruguayan Licensing Process Postponed

date: April 17, 2002 - source: BWCS

The Uruguayan government has been forced to call off its planned sale of 2G and 3G mobile licences due to continuing problems with the Argentine economy and disputes between politicians. The sale of five tranches of frequencies in the 1800MHz, 1900MHz and 2100MHz bands will be suspended for six months while the government looks at ways of reforming the laws which control the operation of state-owned national telco Antel. Mario Bergara, director of the country’s telecoms regulator Ursec, which is handling the sale, says the licence fee of US$6 million for each of the five concessions will remain unchanged. It is thought that the new deadline for submission of bids for the wireless licences will be 18 October, with the auction beginning one month later.

According to BNAmericas, only three companies – existing mobile licensee Movicom BellSouth and newcomers Telecom Personal of Argentina and Telefonica Moviles of Spain – have so far shown an interest in acquiring one of the new concessions. Besides Movicom, Uruguay’s only other incumbent mobile operator is Ancel, which is currently 40% owned by Antel. It is possible that the government may call a national referendum to decide whether Antel will be given the option of selling its stake in its mobile subsidiary.

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