Peru cancels spectrum auction

Peru cancels spectrum auction

The Peruvian government has cancelled the auction for airwaves due to concern from interested parties on the concessions they have to meet.

BNamericas reported, concessions such as rural coverage and minimum speed targets have made it difficult for the ministry of finance agency ProInversion (Private Investment Promotion Agency), which is in charge of spectrum auctions, to attract operators to bid.

Peru’s congress passed a law last year demanding operators guarantee a speed of 70% of what is pledged.

Formerly up for grabs was the AWS-3 and 2.3GHz spectrum. Telefonica (Movistar), Claro (America Movil) and Entel prequalified for the auction.  

Former deputy communications minister and a founding partner of consultancy Consultores Regulatorios Virgina Nakagawa, told BNamericas it was “ridiculous” the 70% speed guarantee applies to satellite and mobile download speeds, as it opens up operators to fines for not meeting speed pledges in difficult rural areas. She advocates eliminating the rules or making it less stringent otherwise Peru's launch for 5G services could be delayed. 

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