But this strategy has only served as a palliative. Radio band prices in Mexico remain up to 89% higher compared to countries such as Germany, Italy, Greece and the Netherlands.
So far this year, AT&T has returned part of its spectrum to improve its operations, and with the Treasury’s decision not to adjust annual band rights payments to international standards, it is possible that the companies will delay their plans to expand the spectrum. 5G network in the country. This could have a negative impact on technological innovation and the long-awaited nearshoring that requires greater connectivity.
Arturo Robles, commissioner of the Federal Telecommunications Institute (IFT), mentioned that although the regulator’s proposals were not approved, there is still the possibility of changing the situation. “The Federation Revenue Law for Fiscal Year 2024 has not yet been approved, and we will continue to insist on the need to adjust spectrum prices to international standards because this affects users. We will do so by appealing to the legislative branch, which still could modify the final part of the rights law,” said the official.
AT&T likely to return spectrum
Alejandro Navarrete, head of the IFT’s Radio Spectrum Unit, regretted the Treasury’s decision not to reduce spectrum prices despite the regulator’s warnings about the negative consequences this could have on the telecommunications sector.
The official pointed out that, given the State’s collection posture in relation to the radio spectrum, it is more likely that AT&T will fulfill its promise to return more bands to the State. This would be detrimental both for users, who could be left without telephone services, and for the government’s finances, which would see their collection reduced at a time when a greater public deficit is expected for 2024.
“The company itself has stated it publicly. They would be evaluating returning more spectrum if the cost is not reduced… We will have to see what they decide to do, but it is something that is on the table and we believe that it is a scenario where everyone loses,” the official said in an interview with Expansion within the framework of the tenth anniversary of the IFT.
According to the regulatory body, the return of spectrum by AT&T could result in a collection loss of 7,528 million pesos, in addition to generating uncertainty in the industry and among users.
The American company has returned spectrum bands to the State on two previous occasions, and even in April of this year, company officials met with representatives of the IFT to discuss the possibility of a new return of spectrum.
Expansion requested information from AT&T about its future vision for the development of its network, especially with regard to 5G, but as of the date of publication of the article, the company has not commented on the matter.
Tender for 5G will be postponed
The IFT had planned the IFT-12 tender for this year, which included bands suitable for the fifth generation of networks. However, with the Treasury’s decision not to reduce spectrum prices, the panorama has changed. Alejandro Navarrete revealed that, due to the uncertainty surrounding the purchase of radio bands, the regulator will have to rethink the tender it had planned, which would involve studying what type of spectrum to sell and under what new schemes.
One of the options that the Institute considers is the allocation of spectrum for private networks, but the success of this measure will also depend on the cost of band rights.
“Over the last six years, we have presented proposals to the Treasury that have unfortunately been rejected. The problem is not only that these proposals are not taken into account, but the impact this has on the allocation of more spectrum to improve services. The The costs of spectrum rights are a fundamental factor and as long as they remain high, there will be no interest or practical possibility of granting more concessions,” the official lamented.