The Mexican government expects to begin accepting bids in coming weeks for the sale of wireless spectrum for mobile telephony services, Communications and Transport Minister Juan Molinar said Monday.

Molinar said at a press conference that the government will open the bidding process at the end of August or in the first half of September.

Telecommunications regulator Cofetel has said spectrum in the 1.7GHz and 1.9GHz bands will be auctioned simultaneously.

The government hopes the long-delayed auction of new spectrum will increase competition in Mexico's mobile phone industry, where two companies control more than 90% of the market.

America Movil (AMX) local unit Telcel leads the way with 72% of the mobile subscribers, followed by the local unit of Spain's Telefonica (TEF) with nearly 20%.

-By Paul Kiernan, Dow Jones Newswires; (5255)5001-5726, paul.kiernan@dowjones.com