New Perspec*ves on Auc*ons

Transcription

1 New Perspec*ves on Auc*ons La#n American Spectrum Conference 2012 Mexico City, October 24, 2012 Erasmo Rojas Director La#n America & Caribbean 4G Americas

2 4G Americas Board of Governors 4G Americas will promote, facilitate and advocate for the deployment and adop#on of the 3GPP family of mobile broadband technologies throughout the ecosystem including networks, services, applica#ons and wirelessly connected devices in the Americas

3 2012 White Papers Available for free download at

4 2Q 2012 Top Wireless Markets in La*n America Average La*n America penetra*on: 95% voice and 16% data Subscrip*ons (M) 266 M 94 M 57 M 46 M 29 M 28 M 26 M 16 M 15 M 10 M Brazil Mexico Argen*na Colombia Venezuela Peru Chile Ecuador Guatemala Dom Rep Source: Bank of America Merrill Lynch, Global Wireless Matrix 2Q2012 Voice Penetra1on % Data Penetra1on % 104% 74% 121% 93% 90% 91% 119% 102% 86% 92% 10% 5% 8% 8% 3% 8% 12% 30% 17% 30%

5 Mobile Broadband in La*n America Dec Dec % 0% Mobile Broadband 2% 5% HSPA 18% LTE 78% GSM Others* 43% 50% *Otros = CDMA, TDMA, iden Dec 2012 (Es*mate) Dec 2016 (Es*mate) Total subscrip*ons 695 Million 842 Million Mobile Broadband 125 Million (18%) 460 Million (55%) Source: Informa Telecoms & Media WCIS+ Subscrip*on Forecast, May

6 Spectrum Caps in La*n America Country Cap value Comments Argen#na 50 MHz Cap for aggregated value in 850 and 1.9 GHz bands Brazil 85 MHz and 40 MHz Chile 60 MHz and 40 MHz Colombia 80 MHz and 30 MHz 85 MHz in GHz + 1.9/2.1 GHz bands and 40 MHz for 2.6 GHz band 60 MHz in GHz + 1.7/2.1 GHz bands and 40 MHz for 2.6 GHz band 80 MHz in GHz + 1.7/2.1 GHz GHz bands and 30 MHz for new bands below 1 GHz (700 MHz) Ecuador 65 MHz Cap for aggregated value in GHz bands Mexico 80 MHz Cap for aggregated value in /2.1 GHz GHz bands Peru 60 MHz and 40 MHz 60 MHz in GHz bands and 40 MHz for 1.7/2.1 GHz

7 2Q12 Spectrum and Mobile Broadband adoption 16% average MBB penetration in Latin America Brazil Available market spectrum 524 MHz MBB penetration 28% Mexico 210 MHz 10% Ecuador 110 MHz 11% Colombia Peru 215 MHz 170 MHz 5% 5% Chile 380 MHz 30% Fuente: Anuncios regulatorios, Informa Telecoms & Media, WCIS+, Agosto

8 Current spectrum usage in La*n America & Caribbean 450 MHz 700 MHz Mul#ple uses: Rural, fixed, mobile telephony, public and private safety, point- to- point and point- to- mul#point distribu#on services Broadcas#ng services TV Planned for TV broadcas#ng, fixed and mobile services 850/900/1800/1900/2100 MHz Mobile services 1700/2100 MHz In service in Mexico (August 2011) and auc#oned in Chile in /2690 MHz 3400/3600 MHz TV and MMDS services Assigned to mobile services since 2010 Fixed services Point- to- point and point- to- mul#point distribu#on services

9 More spectrum is key for the development of mobile broadband, but not any sort of spectrum Worldwide harmonization: economies of scale Band plans coordinated regionally Key: Low frequencies for coverage (<1Ghz) More spectrum: MHz carriers The efficient allocation of spectrum maximizes its value for the benefit of society

10 Brazil Spectrum June 2012 auc#on: Raised US $ 1.26 B 14 MHz in 450 MHz MHz (FDD) and 35 MHz (TDD) in 2.6 G FDD winners: VIVO, Claro, TIM, Oi TDD winners: Sky, Sunrise Latest news: Government considering par#al release of TV spectrum for 700 MHz and start auc#oning 2H 2013

11 Mexico Spectrum AWS: 30 MHz remaining on the shelf since July MHz: Government decided on APT band plan and auc#on in 2-3 years 2.6 GHz: Government planning to release 190 MHz from current holder (MVS) for MMDS services to mobile broadband services

12 Argen*na Spectrum: No new spectrum released since 1999; only 850 MHz and 1900 MHz used Upcoming auc#ons: 850/1900 MHz auc#on cancelled and spectrum given to state operator AWS: 90 MHz; no informa#on on upcoming auc#on

13 Colombia Spectrum: Government planning to auc#on 225 MHz 1H : 5 MHz AWS: 90 MHz (new band) 2.6 GHz: 130 MHz (50 MHz auc#oned in 2010) Latest news: Auc#on delayed from 2012 to 2013 due to poli#cal lobbying and plan to create an an#monopoly law 700 MHz 90 MHz would be auc#oned in Administra#on chose APT channeliza#on

14 Chile Spectrum 2.6 GHz 3 swaths of MHz auc#oned in July 2012; winners: Entel, Movistar and Claro 700 MHz 90 MHz would be auc#oned in Administra#on chose APT channeliza#on

15 Peru Spectrum 900 MHz Auc#oned in August 2012 to Vieiel (new entrant) that got also 1.9 GHz spectrum in January 2011; no services launched yet AWS Plans to auc#on 80 MHz ( 2 * MHz) in 2013

16 Spectrum auc*ons La*n America 1.7/2.1 GHz (AWS) Chile auc#oned 90 MHz Mexico auc#oned 60 MHz Uruguay allocated 30 MHz 2013 Colombia plans to auc#on 90 MHz 2013 Peru plans to auc#on 80 MHz 2013 Uruguay plans to auc#on 90 MHz 2013 Paraguay plans to auc#on 80 MHz

17 Spectrum auc*ons La*n America 2010 Colombia auc#oned 50 MHz (FDD) 2.6 GHz Brazil auc#oned 190 MHz (FDD+TDD) Chile auc#oned 120 MHz (FDD) Colombia plans to auc#on 130 MHz (FDD and TDD) 700 MHz (Digital Dividend) Chile will auc#on 90 MHz Colombia will auc#on 90 MHz

18 Opportuni*es in La*n America & Caribbean 111% mobile versus 20% fixed penetra*on provides a good opportunity for mobile broadband to reduce the digital divide Right choices of spectrum bands (700 MHz, 1.7/2.1 GHz, 2.6 GHz) for LTE could give significant economies the scale to the Americas Data ARPU could increase significantly from the current average of $ 14 USD with availability of cheaper smartphones and tablets Simple but efficient applica*ons for e- government, e- health, e- leaning and e- commerce required by end users Streamline regulatory environment to promote mobile broadband investment and growth

19 Thank you! Erasmo Rojas Director La*n America & the Caribbean