BUENOS AIRES--Argentina's government has canceled plans to
auction wireless spectrum to investors and instead will give it to
a state firm, a top government official said Wednesday.
Federal communications company Arsat will seek joint venture
partners to develop its own wireless network, Planning Minister
Julio De Vido said at a press conference.
Until now, Arsat has largely been responsible for providing
broadband Internet and digital TV services, especially in remote
communities. Arsat plans to launch a satellite, Arsat-1, in the
middle of next year, according to its website.
The government called off the spectrum auction because none of
the companies that submitted bids met the minimum requirements, Mr.
De Vido said.
Companies that submitted bids included Telecom Argentina SA
(TEO, TECO2.BA), two Argentine investors, and subsidiaries of
Mexico's America Movil SAB de CV (AMX, AMOV, AMX.MX), Spain's
Telefonica SA (TEF, TEF.MC) and U.S.-based NII Holdings Inc.
(NIHD), the minister said.
Mr. De Vido said only Claro made an economically viable plan to
use the spectrum but because it was the only qualified participant
in the auction it would have obtained an unfair advantage over
other operators to the possible detriment of consumers.
Write to Taos Turner at taos.turner@dowjones.com
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