Telecom Personal, a cellular service provider in northern Argentina, announced a consortium it is part of has been granted the B-band license to provide cellular service in Paraguay.
On Oct. 14, one day after the bidding deadline, Paraguay’s Telecommunications National Commission, known as Conatel, granted the 800 MHz license in return for $36.5 million, to be paid in three equal amounts over the next two years. Additionally, the consortium had to commit to a $50 million infrastructure investment within the next five years and must launch initial service in the next six to eight months, said the U.S. Embassy in Paraguay. It has not yet been determined what technology the network will use.
Telecom de Argentina owns 51 percent of the consortium, with Telecom Personal and ABC Telecomunicaciones S.A. representing 24 percent and 25 percent, respectively. Telecom Personal also recently acquired 75 percent of the shares of the Paraguay company Cable Insignia S.A. to offer personal communications services in the capitol city of Asuncion and the surrounding area, under the commercial name of Telecom Personal Paraguay S.A.
Two other consortia bid on the license. One was led by the Japanese cellular and long-distance company KDD, bidding jointly with the Japanese company DDI Corp. The other consortium was led by Western Wireless Corp.
The existing cellular operator in Paraguay, Telecel-an Advanced Mobile Phone Service 800 MHz operator owned by Millicom International Cellular S.A.-has some 8,500 subscribers in Asuncion after launching in June of 1995.
The most recent license won by the Argentine consortium is for nationwide coverage, but will likely cover only the capitol and perhaps some other major cities and tourist locations. Because Paraguay borders Argentina, Telecom Personal may build out its Paraguay license in areas closest to the shared border.
The Paraguay market is considered less thriving than the other Latin American markets of Brazil and Argentina. Tender offers in these countries vastly overshadowed the Paraguay tender in terms of media attention and importance.
What is most interesting is the move toward inter-regional investment on the part of Latin American telecom players. “That’s a new trend that’s important to note,” said J.J. Gullish, a Latin American analyst with International Technology Consultants.
