The Argentine government would obtain $875 million for the frequencies, less compared to the initial expectation of $1.05 billion
Argentine operators Claro, Movistar and Personal have all secured spectrum for the provision of 5G services in a tender carried out by the government.
The government will obtain $875 million for the frequencies, less than the initial expectation of $1.05 billion.
Claro is owned by Mexican telecommunications group America Movil. Movistar is owned by Spanish telco Telefonica, while Personal is owned by Telecom Argentina.
The head of the National Communications Entity (Enacom), Claudio Ambrosini, said the first block of 100 megahertz in the 3.3-3.4 GHz band it was acquired by Claro for $350 million, while Personal committed to pay $350 million for a block of 100 megahertz in the 3.4-3.5 GHz band. Meanwhile, Movistar secured a block of 50 megahertz in the 3.55-3.6 GHz band for $175 million. The regulator confirmed that another block of 50 megahertz in the 3.5 GHz band remained vacant.
Enacom also confirmed that operators will have 15 working days to pay for these 20-year licenses to use the 5G frequencies.
Local press reports suggested that the 50 megahertz that remained vacant could be part of a future tender that includes other bands that are considered suitable for 5G technology or could be assigned directly to state company Arsat, which already obtained 100 megahertz of the 3.6-3.7 GH band through a government resolution.
Ambrosini said that the government would soon publish a resolution to create a special import regime so that companies can import all the necessary infrastructure for the 5G deployment. He also pointed out that the three telcos will have to present a detailed plan of the 5G deployment before the end of the year.
Economy Minister Sergio Massa, who is also the presidential candidate of the ruling coalition, said that each telco will invest nearly $1 billion to deploy 5G in the country.
Massa highlighted that the proceeds of the auction will help the government to meet fiscal goals amid deteriorating economic conditions marked by a high inflation rate and negative reserves in the Central Bank.
Following Enacom’s decision to launch the 5G tender, Claro, Movistar and Personal criticized the terms of the auction, stating that they were not viable.
“It should be noted that the price assigned to each of the three blocks of 100 megahertz of spectrum in the 3.5 GHz band is very high compared to the macroeconomic situation of the country, our clients and the sector,” the telcos had said in a joint statement.
5G subscribers in Argentina are expected to reach 34.7 million by 2030, up compared to 5.7 million in 2025, according to a report by telecom association GSMA.
The GSMA report showed that 5G penetration in Argentina is expected to reach 9% by 2025 while it would expand to 48% by 2030.
GSMA also noted that 5G networks will cover 84% of Argentina’s population by 2030, up from 38% in 2025.
