Tuesday , May 17 2022

Five companies bid in a 5G tender: Wom was the highest bidder that surprised Finland


The implementation of 5G technology reached a new phase. Five companies submitted a proposal this Thursday in the framework of the tender for radio spectrum – which is the transfer of data and voice – for the development of 5G networks, a process that began on November 12.

They are Entel, Claro, Movistar, Wom and Borealnet, the process novices, a consortium consisting of Business Finland and Rivada Networks, who sent in their proposals to be part of the deployment process.

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In addition, this process was the highest number of bidders who have participated in a public spectrum tender in the country, after in 2009 two bidders for the AWS band – Nextel and VTR – arrived and in the process of In 2013, on For offering the 700 MHz and 2,600 MHz bands – which were fundamental for developing commercial networks in 4G technology – three participated: Entel, Movistar and Claro.

On this occasion, Subtel conducted four separate tenders – one for each band considered to be awarded – for a total of 1,800 MHz of radio spectrum. All auctions received bids and the most controversial was the 3.5 GHz band, which received five bids. In this band, Subtel had only 150 MHz and it is calculated that a minimum floor level of 70 MHz is required to provide good 5G service.

In this sense, the Minister for Transport and Telecommunications, Gloria Hutt, highlighted the industry’s interest in the contest. “We think it’s a really good result. We have to consider the size of the market and the number of offers is good in that we have competition in all bands, “he said.

Telecommunications Secretary Pamela Gidi added for her part, “we are doing a very good balance, which shows the confidence that there is and the commitment that all these companies are putting into Chile’s telecommunications market.”

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The highest bidder was Wom. The company, which belongs to the Novator fund, submitted bids at every auction. Amazing Borealnet application in three contests, equivalent to the 700 MHz, AWS and 3.5 GHz bands.

For incumbents, Claro submitted bids in three tenders (AWS, 3.5 GHz and 26 GHz millimeters), while Entel did so at two auctions: 3.5 GHz and the 26 GHz millimeter. Movistar despite an ongoing consultation at the Free Competition Defense Tribunal (TDLC) questioning the rules of the four Subtel tenders, nevertheless participated in the auction for the 3.5 GHz band.

Christopher Laska, CEO of Wom, said, “we are very proud of the team’s work, with the four projects we have submitted to the public spectrum competition, and that it will be fundamental to Chile’s economic and technological development. “

For his part, Manuel Araya, Regulation and Corporate Affairs Manager at Entel, noted that “our presentation in the bands we participate in seeks to reflect the best strategy to ensure 5G is achieved for Chile and our clients as soon as possible. ”

In turn, Cristián Salgado, Director of Legal and Regulation at Claro Chile, said, “we hope that the spectrum bidding process will develop properly, smoothly and without major obstacles, in order to make a definite leap forward in using the new networks ”.

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After this milestone, the next step will be to resolve the contest, which will be announced in February 2021. It is estimated that the decree decision by the Manager will be in June next year. However, the start of the 5G service is expected to be in the early stages of early 2022. “That is our plan and so far we have been complying with it, we have always had difficulty, there has been judgment, there have been resources , but we’re going the deadline we had planned, ”said Minister Hutt.

However, the tender could suffer setbacks if Movistar – which tried to halt the process by precautionary measure it sought to stop, without success – finally turned to the Supreme Court and the court agreed with them.

“We are confident that all aspects of competition have already been validated. They are not matters outside the courts, so that is why we think this process should continue, but naturally if there is new information or a variable the courts have to consider changes , we’ll also see what arguments we provide to protect the continuity of the process “, Hutt noted. At this point, Gidi noted,” our roadmap is to launch and deploy 5G in Chile and from there not we highlight the actions of the industry, we continue to work for the consumers. “

Borealnet was the big surprise during the opening of proposals in the framework of the bidding process to get spectrum for 5G network development. Although the company has expressed its intention to participate in the tender, this consortium comprising Business Finland and Rivada Networks, submitted proposals in three of the four tenders developed by the Ministry of Transport and Telecommunications (MTT), through The Telecommunications Undersecretariat. (Subtel).

Business Finland is a public organization offering services for internationalization and financing innovation, as well as promoting tourism and investment in Finland and is managed by that country’s Ministry of Employment and Economy. It is a similar organization to Corfo in Chile.

Rivada Networks is a US company providing communications services. The company defines itself as a designer, integrator and operator of wireless and interoperable communications networks. On its website, the company states that “given the demand for mobile data, which is growing at an approximate annual rate of 50%, we face the urgent need to use spectrum and wireless networks efficiently. Rivada technology responds to this need ”.

Bet Borealnet is to enter the market as a wholesale operator. That is, should part of the spectrum be awarded, one of your later options is to “lease”, for example, other network operators who need services.

Wom reported that it closed the third quarter of this year with 6.5 million clients, reaching 21.9% share of the mobile market, versus 19.4% in the same period of the previous year.

The company reported total revenue of $ 157 billion during the third quarter, representing a 20% increase over the same period last year. On the other hand, they reported that the adjusted Ebitda equates to $ 45 billion, representing 19% growth compared to the same period of 2019.

Thus, the company reported total accumulated income in September for $ 428 billion, representing a 14% increase over the same period in 2019. “These results reflect a consistent effort and ongoing work in during these years, “he said. Christopher Laska, CEO of Wom.

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