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AT&T ( T )and America Movil ( AMX ) are slated to square off on Monday in an auction of wireless spectrum by Mexico’s government, that nation’s first big airwave auction in five years. AT&T is a newcomer to Mexico’s market. It acquired Mexico’s No. 3 wireless firm, Iusacell, as well as Nextel Mexico out of bankruptcy in January 2015, for a combined $4.4 billion. Controlled by Carlos Slim, America Movil is one of Latin America’s two largest wireless services providers. The other, Spain’s Telefonica ( TEF ), has bowed out of the auction, scheduled to start Monday. “This auction represents an opportunity to continue growing a vibrant and more competitive market and fulfill the goals of telecommunications reform,” Mariloly Melguizo, an AT&T spokesperson, said in an email. Melguizo declined to comment on how much AT&T might spend. AT&T, however, is expected to spend $8 billion to $10 billion in a much bigger U.S. spectrum auction that could begin late next month. Mexico’s telecom regulator, the Federal Telecommunications Institute, has approved the auction of 80 MHz of airwaves, primarily in bands between 1.7 GHz and 2.17 GHz. The spectrum won’t be available for use until 2018 or later. TracFone-parent America Movil, which sells wireless services under the Telcel brand in Mexico, holds nearly 68% of Mexico’s market, with Telefonica at 19% and AT&T with 13%. Mexico’s government is reviewing whether steps taken two years ago have increased competition. America Movil’s profits have been shrinking. AT&T is spending over $3 billion to upgrade networks. It reported 593,000 wireless subscriber additions in Mexico in Q4, after losing a total of 689,000 the previous three quarters. Image provided by Shutterstock . Scalper1 News
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