Licence Renewal in Latin America

Thursday 20 Feb 2014 | Resources | Resources (en) |

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This report highlights the climate of uncertainty surrounding the continuity of spectrum licences for many countries in the region. The study finds that such uncertainty can drive mobile operators to reduce their capital expenditure by as much as 67 per cent, which in turn could significantly delay the deployment of new mobile services. A number of the original 2G spectrum licences, acquired in the 1990s, are due to expire within the next five years in many Latin American countries; namely Bolivia, Chile, Costa Rica, the Dominican Republic, Panama, Uruguay and, most urgently, Colombia. As mobile operators are unable to assume they will have the ability to renew their licence at the end of its term, they may be compelled to progressively reduce investment in their networks. The GSMA’s new report illustrates the extent to which this lack of certainty can impact operators’ investment plans.

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