1. New Perspectives on Auctions
Latin American Spectrum Conference 2012
Mexico City, October 24, 2012
Erasmo Rojas Director Latin America & Caribbean 4G Americas

2. 4G Americas Board of Governors
4G Americas will promote, facilitate and advocate for the deployment and adoption of
the 3GPP family of mobile broadband technologies throughout the ecosystem – including networks, services, applications and wirelessly connected devices – in the Americas

3. 2012 White Papers WWW.4GAMERICAS.ORG
Available for free download at

4. 2Q 2012 Top Wireless Markets in Latin America
Average Latin America penetration: 95% voice and 16% data
Subscriptions (M)
Voice Penetration %
Data Penetration %
104%
30%
266 M
74%
10%
94 M
121%
17%
57 M
46 M
93% 5% 8%
29 M
90%
28 M
91% 3%
26 M
119%
30%
16 M
102%
12%
15 M
86% 8%
10 M
92% 8%
Source: Bank of America Merrill Lynch, Global Wireless Matrix 2Q2012

5. Mobile Broadband in Latin America
Dec-2012
Dec-2016 4% 0%
Mobile Broadband 5% 2%
HSPA
18%
LTE
43%
GSM
78%
50%
Others*
*Otros = CDMA, TDMA, iDEN
Dec 2012 (Estimate)
Dec 2016 (Estimate)
Total subscriptions
695 Million
842 Million
Mobile Broadband
125 Million (18%)
460 Million (55%)
Source: Informa Telecoms & Media WCIS+ Subscription Forecast, May 2012

6. Spectrum Caps in Latin America
Country
Cap value
Comments
Argentina
50 MHz
Cap for aggregated value in 850 and 1.9 GHz bands
Brazil
85 MHz and 40 MHz
85 MHz in GHz + 1.9/2.1 GHz bands and 40 MHz for 2.6 GHz band
Chile
60 MHz and 40 MHz
60 MHz in GHz + 1.7/2.1 GHz bands and 40 MHz for 2.6 GHz band
Colombia
80 MHz and 30 MHz
80 MHz in GHz + 1.7/2.1 GHz GHz bands and 30 MHz for new bands below 1 GHz (700 MHz)
Ecuador
65 MHz
Cap for aggregated value in GHz bands
Mexico
80 MHz
Cap for aggregated value in /2.1 GHz GHz bands
Peru
60 MHz and 40 MHz
60 MHz in GHz bands and 40 MHz for 1.7/2.1 GHz

7. 2Q12 Spectrum and Mobile Broadband adoption 16% average MBB penetration in Latin America
Available market spectrum
MBB penetration
524 MHz
28%
210 MHz
10%
110 MHz
11%
215 MHz 5%
170 MHz 5%
380 MHz
30%
Fuente: Anuncios regulatorios, Informa Telecoms & Media, WCIS+, Agosto 2012

8. Current spectrum usage in Latin America & Caribbean
450 MHz
Multiple uses: Rural, fixed, mobile telephony, public and private safety, point-to-point and point-to-multipoint distribution services
700 MHz
Broadcasting services – TV
Planned for TV broadcasting, fixed and mobile services
850/900/1800/1900/2100 MHz
Mobile services
1700/2100 MHz
In service in Mexico (August 2011) and auctioned in Chile in 2009
2500/2690 MHz
TV and MMDS services
Assigned to mobile services since 2010
3400/3600 MHz
Fixed services
Point-to-point and point-to-multipoint distribution services

9. More spectrum is key for the development of mobile broadband , but not any sort of spectrum…
Key: Low frequencies for coverage (<1Ghz)
Worldwide harmonization: economies of scale
Band plans coordinated regionally
More spectrum: MHz carriers
The efficient allocation of spectrum maximizes its value for the benefit of society

10. Brazil Spectrum June 2012 auction: Raised US $ 1.26 B
14 MHz in 450 MHz MHz (FDD) and 35 MHz (TDD) in 2.6 G
FDD winners: VIVO, Claro, TIM, Oi
TDD winners: Sky, Sunrise
Latest news: Government considering partial release of TV spectrum for 700 MHz and start auctioning 2H 2013

11. Mexico Spectrum AWS: 30 MHz remaining on the shelf since July 2010
700 MHz: Government decided on APT band plan and auction in 2-3 years
2.6 GHz: Government planning to release 190 MHz from current holder (MVS) for MMDS services to mobile broadband services

12. Argentina
Spectrum:
No new spectrum released since 1999; only 850 MHz and 1900 MHz used
Upcoming auctions:
850/1900 MHz auction cancelled and spectrum given to state operator
AWS: 90 MHz; no information on upcoming auction

13. Colombia Spectrum: Government planning to auction 225 MHz 1H 2013
AWS: 90 MHz (new band)
2.6 GHz: 130 MHz (50 MHz auctioned in 2010)
Latest news: Auction delayed from 2012 to 2013 due to political lobbying and plan to create an antimonopoly law
700 MHz
90 MHz would be auctioned in Administration chose APT channelization

14. Chile
Spectrum
2.6 GHz
3 swaths of MHz auctioned in July 2012; winners: Entel, Movistar and Claro
700 MHz
90 MHz would be auctioned in Administration chose APT channelization

15. Peru
Spectrum
900 MHz
Auctioned in August 2012 to Viettel (new entrant) that got also 1.9 GHz spectrum in January 2011; no services launched yet
AWS
Plans to auction 80 MHz ( 2 * MHz) in 2013

16. Spectrum auctions Latin America
2009
Chile auctioned 90 MHz
2010
Mexico auctioned 60 MHz
2011
Uruguay allocated 30 MHz
1.7/2.1 GHz (AWS)
2013
Colombia plans to auction 90 MHz
Peru plans to auction 80 MHz
Uruguay plans to auction 90 MHz
Paraguay plans to auction 80 MHz

17. Spectrum auctions Latin America
2010
Colombia auctioned 50 MHz (FDD)
2012
Brazil auctioned 190 MHz (FDD+TDD)
Chile auctioned 120 MHz (FDD)
2013
Colombia plans to auction 130 MHz (FDD and TDD)
2.6 GHz
2013
Chile will auction 90 MHz
Colombia will auction 90 MHz
700 MHz
(Digital Dividend)

18. Opportunities in Latin America & Caribbean
111% mobile versus 20% fixed penetration provides a good opportunity for mobile broadband to reduce the digital divide
Right choices of spectrum bands (700 MHz, 1.7/2.1 GHz, 2.6 GHz) for LTE could give significant economies the scale to the Americas
Data ARPU could increase significantly from the current average of $ 14 USD with availability of cheaper smartphones and tablets
Simple but efficient applications for e-government, e-health, e- leaning and e-commerce required by end users
Streamline regulatory environment to promote mobile broadband investment and growth

19. Director Latin America & the Caribbean
Thank you!
Erasmo Rojas
Director Latin America & the Caribbean