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Telcel gets regulatory approval for Mexican spectrum acquisition

Telcel gets regulatory approval for Mexican spectrum acquisition

America Movil’s Mexican unit Telcel has had its application to acquire 60MHz of 2.5GHz spectrum from broadcast firm Grupo MVS approved by the country’s regulator.

The Instituto Federal de Telecomunicaciones (IFT) deemed that Telcel boosting its spectrum holding would not adversely affect competition in the market, paving the way for the deal to be approved. The regulator stated: “No risks are identified to the process of competition and free competition, or concentration contrary to the public interest in the relevant and related markets.”

Grupo MVS had previously used the spectrum in question – a block which covers over 75% of the country’s population – to offer radio and TV services, but in March received permission to cease broadcasting over the airwaves to expedite their sale.

The deal pushes Telcel’s share of Mexico’s total available wireless telecommunications spectrum from 20.2% up to 29.77%. Telcel leads the Mexican wireless market by connections, with GSMA Intelligence figures for Q1 2017 placing it ahead of Telefonica’s Movistar and AT&T.

The acquisition takes place against the backdrop of America Movil splitting up its fixed-line unit in Mexico under duress from the IFT. The regulator is also keen for the market leader 

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