Background on América Móvil and its Relevance
América Móvil, a leading telecommunications group in Mexico, holds 46.78% of all radiofrequency spectrum licenses for mobile services in the country through its subsidiary, Telcel. As a significant contributor to Mexico’s spectrum usage revenue, América Móvil is well-positioned to influence the telecommunications landscape.
Who is Daniel Hajj?
Daniel Hajj, the General Director of América Móvil, recently addressed the GSMA Mobile 360 Latam forum. His statements highlight the company’s stance on spectrum allocation under Mexico’s new telecommunications and broadcasting law.
Spectrum Allocation and Pricing in Mexico
Mexico is one of the most expensive countries globally for acquiring spectrum for commercial services. The country charges 96% more than the international average for the 2.5 GHz frequency, ideal for 4G mobile internet.
- 3.5 GHz band (suitable for 5G networks) is also priced 88% higher than the international average.
- Frequencies 1.7/2.1 GHz and 1.9 GHz (used for 3G) are 88% more expensive than the international average.
These high prices have resulted in a financial impact for the Mexican government, as returning licenses now incurs a cost of 15,390 million pesos (approximately 738 million USD) due to the refusal to modify the Federal Rights Law.
América Móvil’s Investments and Network Expansion
Daniel Hajj emphasized the challenges of expanding, maintaining, and modernizing telecommunications networks, which necessitates efficient operational strategies due to high spectrum costs in Mexico.
América Móvil has invested heavily in its operations, including:
- 1.3 million kilometers of fiber-optic cable
- 49,000 kilometers of undersea cable
- Five satellites
- 43 data centers
- Mobile networks supported by 163,000 radio base stations
Hajj mentioned that América Móvil provides the latest technology in every market it operates, with extensive 5G coverage in Mexico, reaching nearly 80 million people across 125 cities.
Key Questions and Answers
- What is América Móvil’s stance on spectrum allocation? América Móvil advocates for equal access to spectrum under the same conditions for all telecommunications companies interested in commercial frequency licenses.
- Why is spectrum allocation important for América Móvil? Access to affordable spectrum under equal conditions is crucial for network expansion, maintenance, and modernization, ensuring quality service and fostering competition.
- How does Mexico’s spectrum pricing compare to the international average? Mexico charges significantly more for commercial spectrum frequencies compared to the global average, impacting both the industry and government finances.
