Viva and Tigo with new spectrum but with no hurries for LTE

In late February, as Convergencialatina informed, the country surrendered 1900 MHz spectrum for mobile services, a fact that surprised the market due to the long wait of operators (since 1999 there was no tender in the country) and compliance -not everyone expected – of at least one part of the frequency allocation schedule. For private players that were awarded frequencies, Viva and Tigo, a major objective was met for their mobile broadband, but will have to wait for new investments in 4G. Neither sees an impact with the launch of LTE of the state National Telecommunications Company (Spanish: Empresa Nacional de Telecomunicaciones, Entel), and warned that there is not enough demand to justify such services in Bolivia.

Viva offered US$ 7.71 billion for the sub Band I-I (1.890-1.895 MHz – 1.970-1.975 MHz) and the same amount for the sub Band J-J (1.895-1.900 MHz to 1.975-1.980 MHz), while Tigo paid US$ 7.73 billion for L-L (1905-1910 MHz - 1985-1.990 MHz) and an equivalent sum for K-K (1.900-1.905 MHz – 1.980-1.985 MHz). In all cases, the base price set by the ATT had been US$ 7.709,212.

During 2013, this new spectrum will be used to reinforce the HSPA+ offer, while ENTEL will have the test experience with LTE in the country. The company launched plans only with dongles last December, at a cost of about US$ 100, and while they did not reveal the number of users that hired the service, admitted that the number is "very low". The key seems to be in the definition of a differential use for services that allow a maximum speed of 24 or 25 Mbps downlink (which would also include the cost of US$ 195 of the dongle).

For 700 Mhz (band that ENTEL launched LTE services, after obtaining special permission from the government) had set -at the end of 2012- the schedule for February 27 as the date of publication of tender documents; as a result, the process had been defined earlier this month. However, Viva and Tigo are not eager to dump marketing and money flows to 4G. Without Smartphone terminals at an affordable cost, there is no real need for speeds over 20 Mbps, one cannot even think of such offers for the local public, admitted to Convergencialatina.

Tenders to come. In the process ended in February, the ATT advanced on 2.5 GHz, but not for mobile services, but to address a request made by the Oruro Telecommunications Cooperative (COTEOR), to deliver data services through fixed WiMax in the department of Oruro. As Convergencialatina advanced, the cooperative spent US$ 1.2 million for a deployment with Huawei, while it waited for a license.

The base price for the license in 2.5 GHz was set at US$ 322,148. During the second quarter of 2013, ATT is expected to work in clearing the 2.5 GHz band, which would allow it to deliver national licenses for mobile services. These frequencies are currently occupied by the subscription TV operator Multivision (has MMDS license for La Paz, Cochabamba, Santa Cruz and Tarija).