Mexico's MVS Slams Televisa Over Shelved Broadband Project
March 07 2012 - 6:19PM
Dow Jones News
Mexican communications company MVS Comunicaciones fired a
broadside Wednesday in the battle over the country's airwaves,
blaming leading television broadcaster Grupo Televisa SAB (TV,
TLEVISA.MX) for the shelving of its plans to use high-frequency
spectrum for a nationwide mobile broadband platform that wireless
and other service providers could tap into.
In full-page advertisements published in local newspapers, MVS
said Televisa was "obstructing competition" by requesting in 2008
that authorities reassign the spectrum that MVS holds in the 2.5
gigahertz to 2.69 gigahertz range.
The 190 megahertz of bandwidth, more than double what any of the
country's mobile phone companies has, is at the center of the
controversy. Critics argue that MVS has for years underused and
underpaid for the spectrum, which it initially acquired for
television service.
MVS said Televisa's call for the spectrum to be reassigned came
as MVS launched satellite TV service Dish Mexico, in partnership
with Echostar Corp. (SATS) to compete directly with Televisa's Sky
Mexico satellite service. The switch to satellite TV freed up MVS's
spectrum, which by then could be used for mobile service thanks to
technological advances.
Televisa said in a statement Wednesday that MVS was using
"supposed conflicts with Televisa as an excuse to cover up its
legal and business deficiencies," and that the 2.5 Ghz bandwidth is
being reordered everywhere in the world "precisely so that there
should be more competition and not monopolies like the one MVS
wants to set up."
Last year, MVS unveiled the "Mobile Broadband For Everyone"
plan, in which--along with partners Clearwire Corp. (CLWR), Intel
Corp. (INTC) and Mexican fixed-line company Alestra--it intended to
invest $400 million in a network to provide a "last mile"
connection with high-speed access for wireless providers and
others.
The project aimed to address Mexico's deficient wireless
broadband penetration, which is by far the lowest among members of
the Organization for Economic Cooperation and Development.
The Communications and Transport Ministry said last week said it
had decided not to renew MVS's frequency concessions following many
discussions with the company, although MVS is contesting the
decisions and court rulings are still pending.
MVS Corporate Vice President Jose Antonio Abad said in a phone
interview that the legal uncertainty led MVS and its partners last
year to stop pouring money into the wireless broadband venture
after investing an initial $80 million. They shut down services
which were operating in a limited way, and laid off 450
workers.
Abad also said the fees proposed by the Finance Ministry for use
of the spectrum were so high that they made the project unviable.
He said MVS has always paid for its spectrum, and has made various
proposals to the government, including a participation in the
broadband venture.
"The problem is that there isn't the political will," Abad said.
"Our hope is that the government realizes this is a viable project,
and the best way to solve the problem of mobile broadband."
-By Anthony Harrup, Dow Jones Newswires; (5255) 5980-5176,
anthony.harrup@dowjones.com
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