Guatemala, a country with a population of 22.2 million and a GDP of US$87 billion in 2021, has launched its first radio spectrum tender to create fifth-generation (5G) services and roll out 4G LTE networks.
It is the fifth country in Latin America to hold a spectrum auction for 5G services, following Brazil, Chile, Uruguay, and the Dominican Republic.
Mexico has confirmed that it will hold its first 5G tender in the second half of 2023, with the 600 MHz, 3.5 GHz, and L-band bands to be auctioned.
The Mexican tender would end in mid-2024.
“This auction sets a precedent in Guatemala, as 75% of the funds collected will be used for digital connectivity in the country, as provided for in the National Plan for Digital Connectivity, established in Decree 3-2023, Reforms to the General Telecommunications Law,” according to Guatemala’s telecommunications regulator.
The 120 MHz of spectrum is to be auctioned publicly in the 2.5 GHz band (2500-2550 MHz and 2604-2680 MHz).
The Guatemalan government expects to raise between US$30 million and US$50 million for all spectrum lots to be auctioned.
The closest market comparison is the case of Uruguay, where the 5G tender brought the Uruguayan government a total of US$56.1 million for spectrum lots in the 3.5 gigahertz band.
The bidding phase in Guatemala begins June 2, but interested parties must begin the process on May 15 by purchasing the participation manual.
The entire bidding process is expected to take up to six months.
Millicom International Cellular’s Tigo and América Móvil’s Claro are expected to be the natural bidders.
Operators Claro and Tigo have already launched 5G services in the 3.5 GHz band in Guatemala.
According to Guatemala’s Superintendencia de Telecomunicaciones, Tigo is the country’s incumbent operator, with 11.77 million mobile users, representing 57.53% of the local market.
Claro has 8 million 688,672 customers, 42.47% of the Guatemalan mobile market.
News Guatemala, English news Guatemala, Guatemala’s telecommunication, 5G