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The Location Business Summit USA, 14-15 September, Crowne Plaza, San JoseRecession could delay WiMAX auctions
Published: 15 October, 2008
READ MORE: WiMAX
One of the potential negative effects of the economic crisis could be a delay in the spectrum auctions that are needed to bring new networks to underserved areas of the world. Governments are concerned they will not get a high valuation for the airwaves, and regulators fear that operators will snap up licenses but then be unable to afford to build out the networks.
Possible auction delays could particularly hit WiMAX and LTE, where the business cases may be seen as medium term rather than immediate, and so spectrum valuations are unpredictable even in a stronger climate. The first worrying sign comes from Mexico, where regulator Cofetel has announced it will further postpone WiMAX and 3G spectrum sales, at least to the beginning of next year.
"It is better to hold them back until the first quarter of 2009 in order to avoid spectrum being awarded but lying unused due to concessionaires lacking the liquidity to deploy the infrastructure," said Cofetel board member Jose Luis Peralta. Peralta also claimed that several operators had requested the auctions be postponed. The Mexican authorities hope to raise about $1bn from the licenses in 2.5GHz and 1.8GHz and will offer the two swathes separately to encourage more bidders. Mexico already has some 2.5GHz and 3.5GHz spectrum in use for WiMAX and is seen as a major growth market for the technology.
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