ENACOM Calls for Bids to Allocate 5G Frequency Bands

Resolutions No. 1285/2023 and 1289/2023 issued by the Argentine Communications Agency (ENACOM), were published in the Official Gazette on August 29, 2023. Resolution No. 1285/2023 approved, among other issues, the General and Particular Terms and Conditions for Granting Frequency Bands to Provide Reliable and Smart Telecommunications Services (STeFI). The Resolution also established the maximum radio spectrum accumulation for STeFi at two hundred (200) MHz per licensee for each exploitation area.
 

These resolutions –together with Resolutions No. 2385 and 2386, published in December 2022– were issued in the context of the expansion of mobile communications services,  data transmission capacities, and of the arrival of Fifth Generation (5G) technology, which is expected to increase connection speed, minimize latency (network response time), and exponentially multiply the number of connected devices.
 

The Bidding Terms state that the bid seeks to grant the radio frequency bands between 3,300 MHz and 3,600 MHz, for providing STeFI segmented in three lots of 100 MHz. The base price of the auction is USD 350 million for each lot. Payments may be made in legal tender.
 

Those interested in the bidding process may submit their bids until September 29, 2023. Their offers will be analyzed by a Prequalification Committee, created for this purpose. In turn, the only bidders who will be allowed to submit their bids are those who have:

1. A license to provide Information and Communications Technology Services Networks (ICT).

2. At least fifty thousand declared accesses and provide services in ten locations of Argentina.

3. A net worth of at least Ps. 10 billion, according to the last annual fiscal year.]
 

Likewise, the Resolution states that:

1. The term of the radio spectrum frequencies use is 20 years, which ENACOM may extend if requested by the successful bidder.

2. Successful bidders must comply with the deployment and coverage obligations in the Bidding Terms.

3. Once more than 50% of end users of the service adopt the technology used to provide STeFI, the successful bidders will undertake to offer a service plan aimed at low-income sectors.
 

Further, the Bidding Terms establish certain provisions related to imports of goods, services, and works for deploying the networks subject to the bidding process.  ENACOM undertakes to request the corresponding agencies a special import regime for such purpose.
 

Finally, Resolution No. 1289 assigns the “Argentine Company of Satellite Solutions” (ARSAT) the frequency band between 3,600 and 3,700 MHz to provide STeFI for a term of 20 years. Pursuant to this resolution, ARSAT will use the assigned frequencies to implement a strategic plan of federal connectivity for the Federal Government.