Govt halts WiMax auctions to review fees, bandwidth
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[April 21, 2006]

Govt halts WiMax auctions to review fees, bandwidth

(BNamericas.com Via Thomson Dialog NewsEdge)Colombia's communications ministry has suspended auctions of department-level WiMax spectrum to reevaluate licensing technical details, newspaper La Repblica reported.

The ministry is reviewing the fees payable for the use of the spectrum and the amount of bandwidth each operator may use in these bands.

During the period for comment on the ministry's resolution governing the auction, 20 potential bidders were unanimous in their opinion that the fees to be charged were excessive. The fees run US$2,500-445,000, depending on the region.

The government now will determine whether such fees present a true entry barrier for industry players and whether they would consequently hamper the ministry's goal of making broadband internet access more accessible.

The operators bidding on department-specific concessions also claim that the three operators with nationwide licenses - Orbitel, Telecom and ETB - have been granted more bandwidth than the local operators will receive.

The local operators expect their bandwidth to be insufficient in large cities such as Bogot and Cali, with bottlenecks also likely in other areas.

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