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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