By Ken Parks
BUENOS AIRES--Argentina's federal government plans to auction 4G
wireless spectrum next year, according to Planning Minister Julio
de Vido.
The government will probably keep an "important" quantity of
that spectrum, Mr. de Vido said in an interview with television
channel C5N.
4G describes the fourth generation of wireless-communications
standards, which provide significantly faster mobile-broadband
speeds than earlier 3G technologies.
In September, the government canceled a 3G spectrum auction that
attracted bids from the country's four mobile operators: Telecom
Argentina SA (TEO, TECO2.BA), 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 carriers had long called on the government to free up more
spectrum to meet the increasing demand for bandwidth-intensive data
services.
Instead of selling the spectrum to incumbents, the government
handed it to federal communications company Arsat, whose main focus
up until recently has been extending digital-television service to
remote areas of Argentina. Arsat now has 20% of Argentina's
available 3G spectrum and is seeking partners to build and operate
its own wireless network. The company will likely obtain a
significant amount of 4G spectrum if Mr. de Vido's comments are any
guide.
Arsat's eventual entry in the mobile-telecommunications market
and the 4G spectrum auction should resolve widespread complaints
against wireless operators related to poor service quality, the
minister said.
Gaps in data coverage, dropped calls, or the outright loss of
wireless coverage are common in the capital city of Buenos Aires
and the surrounding urban area.
Write to Ken Parks at ken.parks@dowjones.com
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