By Ken Parks
BUENOS AIRES--Argentina's government plans to auction high-speed
wireless licenses later this year to attract investment in 4G
networks as the surging use of smartphones and tablets swamps the
country's existing data networks.
"The auction is open to all," Economy Minister Axel Kicillof
said at a news conference Tuesday. "We are going to do road shows
with different companies, investors and countries."
Auction winners will be required to make significant investments
to build 4G networks with nationwide coverage, said Mr. Kicillof,
who declined to give an estimate of cost.
The network technology known as 4G is the fourth generation of
mobile services that offers ultrahigh-speed broadband access for
smartphones, tablets, laptops and other devices. Telecommunications
companies have long voiced interest to bring 4G technology to
Argentina, but say the government has been slow to make the
necessary radio spectrum available to operators. Argentina's
wireless networks currently use slower 3G and 2G technologies.
Argentina boasts one of the highest rates of mobile phone
ownership in the world. In 2012, the South American country had
about 151 mobile phones for every 100 residents, according to the
International Telecommunications Union. Rising demand for such
data-intensive services as streaming video have overwhelmed the
limited amount of radio spectrum available to phone companies,
which has led to poor quality.
Gaps in data service, dropped calls or the outright loss of
wireless coverage are common in the capital city of Buenos Aires
and the surrounding urban area.
In 2012, the government cancelled a 3G spectrum auction that
received bids from the country's four mobile operators. Instead,
the government said it would give some of the spectrum to state-run
communications company Arsat so it could compete with private
mobile operators.
The government will also auction its remaining blocks of 3G
spectrum to address the service quality problems of the country's
3G networks, Mr. Kicillof said.
The 4G and 3G auctions will more than double the amount of
wireless spectrum available to operators to 380 MHz from 170 MHz
today, according to the government.
Argentina's wireless industry is currently divided between
Telecom Argentina SA (TEO, TEO.BA) and subsidiaries of Mexico's
America Movil SAB (AMX), Spain's Telefonica SA (TEF) and NII
Holdings (NIHD).
--Taos Turner contributed to this story
-Write to Ken Parks at ken.parks@wsj.com
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