Elaboration of the regulatory framework to launch a “National Shared Wholesale Mobile Network” for a Latin American regulatory body
Our client, the Mexican telecoms regulator, required an expert advisor to elaborate the regulatory framework that would be imposed on the winner of the tender of 90MHz in the 700MHz frequency band and its subsequent evaluation of the impact on economic competition.
Considering the previous background, the IFT required specialised advisory services to support them in the elaboration of the regulatory framework that would be imposed on the successful bidder of the National Shared Wholesale Network and their impacts in terms of economic competition.
In this context, Fide Partners supported the IFT during the whole process, covering the following assignments: (i) preparation of the Reference Offer; (ii) definition of the structure of wholesale services; (iii) pricing mechanisms; (iv) reviewed market conditions and made recommendations on regulatory obligations to be imposed on the awardee of the spectrum license; (v) developed a market study of the Mexican mobile telecom market from both a – demand and supply- based perspectives, analysing the potential impact of a wholesale player with 90MHz in the 700MHz band on the other market players and consumers, (vi) assessment of the different options of PPP schemes to define the most suitable for the Mexican market, (vii) execution of two technical and commercial due-diligence processes over business and network deployment plans made by the IFT and the Ministry for Transport and Communications, (viii) supported the IFT on the understanding of potential award mechanisms (auction, beauty contests hybrid methods, etc.) and, (ix) advised our client on overall spectrum policy framework.
The regulator engaged in a private-public partnership to provide wireless access infrastructure to cover 98% of the population. The main benefits included a private investment of USD10bn, a greater number of companies offering voice and mobile services, better speeds, lower tariffs, and higher penetration.