Colombia recently held an auction in which it allocated the 5G spectrum to various players in the telecommunications industry. The auction concluded with the allocation of four blocks of 80 MHz each in the 3.5 GHz band, with one block assigned to each of the four operators. The total value of these blocks amounted to an impressive $1.37 billion.
Tigo-Movistar, also known as Union Temporal Colombia Movil-Telefonica, offered $318.306 million for their block. Meanwhile, the new market participants, WOM and Telecall, proposed $318.340 million and $318.333 million respectively for their blocks. Claro, the current player in the market, submitted the highest bid of $411.384 million.
While the results for the 3.5 GHz band were promising, other bands did not generate as much interest. Claro was the sole bidder for the 2.5 GHz band block, offering $157.057 million. The 700 MHz, 1900 MHz, and Extended AWS bands did not attract any offers.
Despite these mixed results, the auction has been regarded as a significant step forward for the telecommunications industry in Colombia. Mauricio Lizcano, the Minister of Information and Communication Technologies, expressed his enthusiasm, stating that 82.5% of the available spectrum was acquired during the auction. He described it as a “historic” moment, emphasizing that 5G is now a reality for Colombians.
However, operators must fulfill certain commitments outlined in the auction. It is required to implement networks in approximately 1,200 schools throughout the country and expand 4G coverage along approximately 700 kilometers of main and secondary roads. These commitments aim to improve connectivity and reduce the digital divide in Colombia.
While the auction did not generate the expected revenues of $500 million for the government, it is anticipated to attract long-term investments worth around $7.11 billion in the country’s telecommunications sector. This influx of investments could unlock significant growth opportunities and drive technological advancements.
The successful bidders will commence technical trials starting in January 2024, with commercial deployment of 5G expected to begin in February 2024. The introduction of 5G services in Colombia will pave the way for improved connectivity, faster data transmission speeds, and new innovations, presenting enormous potential for both businesses and individuals.
FAQ:
What is the 5G spectrum?
The 5G spectrum refers to frequency ranges of radio waves that are used for data transmission in 5G.
What are the commitments resulting from the auction?
Operators are obligated to implement networks in approximately 1,200 schools and expand 4G coverage along approximately 700 kilometers of main and secondary roads.
What are the benefits of introducing 5G in Colombia?
Introducing 5G aims to improve connectivity, increase data transmission speeds, and create opportunities for new innovations in the country.
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The source of the article is from the blog crasel.tk