Argentina's National Communications Entity (ENACOM) concluded a successful auction of 5G spectrum frequency bands on Tuesday, October 24. This auction from the sale of three 3.5 GHz spectrum lots has resulted in a total of USD 875.091 million, which will be deposited into the National Treasury. The 5G auction, held at the Kirchner Cultural Center (CCK), garnered attention as three leading companies participated and secured portions of the valuable spectrum.
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Successful 5G Spectrum Auction
The president of ENACOM provided further details on the auction process explaining that the three participating companies successfully acquired their respective lots. AMX Claro won the first lot, Telecom secured the second, and Telefonica obtained the third lot. The telecom providers anticipate deploying around a thousand radio bases over the next 16 months to deliver 5G services.
Spectrum Put on Sale
A total of 250 MHz was auctioned in the 3300 - 3600 MHz bands and the available spectrum was divided into 2 lots of 100 MHz each and one lot of 50 MHz. The base price for each lot was set at USD 350 million. The National Communications Agency (Ente Nacional de Comunicaciones, ENACOM) has announced the results of the successful auction as follows:
Spectrum Winners
- Lot 1 (100 MHz in Band 3300-3400): Claro (AMX) secured this portion with a winning bid of USD 350.052 million.
- Lot 2 (100 MHz in Band 3400-3500): Telecom Argentina made a successful bid of USD 350.026 million.
- Lot 3B (50 MHz in Band 3550-3600): Telefonica secured this lot with a bid of USD 175.013 million.
Lot 3A is unsold, and the auction resulted in a total of USD 875.091 million.
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Minimum Obligations
The winning bidders will receive authorization to use these frequencies for a period of 20 years to provide 5G services. However, this authorization comes with certain obligations, which include the phased deployment of stations within localities of up to 30,000 inhabitants. This five-stage deployment should be completed within a maximum timeframe of 84 months or seven years.
Furthermore, the winning companies are required to establish a service plan specifically targeting low-income sectors. This is especially important when the technology used to provide Fixed Internet Service (STeFI) is adopted. The companies must ensure that over 50 percent of end users in these sectors have access to the service through the use of suitable terminals.
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Overall, this successful auction represents a milestone in Argentina's journey toward widespread 5G adoption and rollout of 5G services. It promises to bring faster and more reliable connectivity to the country.
