Despite court awards of amparos, the highly anticipated wireless auctions will proceed as planned

By Isabel Ferguson
CNNExpansión.com

Despite amparos, or injunctions, gained by two companies, Mexico's auction for wireless radio spectrum will continue, say officials of the regulatory agency overseeing the fierce competition.

So far the Federal Telecommunications Commission (Cofetel) has been served with three legal actions by Iusacell to impact the auction and one brought by MVS through its subsidiary MVS Net.

"The scope of the temporary suspension allows us to carry out the auction because the suspension relates to the time of the grant award," said Cofetel commissioner Gonzalo Martínez Pous.

The tender of two radio frequency bands (1.7 GHz and 1.9 GHz) was launched by the Federal Communications Commission to allow existing operators to increase their capacity or new operators to operating in the business of the so-called "triple play" (cable TV, telephone and Internet). The process is expected to be completed June 9 with the naming of winners.

In a press release last week, MVS said it sought the injunction because the lack of clear auction rules has meant that the company has not been able to make investments to develop new technologies.

Iusacell's amaparos, Martinez Pous said, were based on disagreements with the setting of the spectrum cap that is specified in the tenders, however the company has not requested that the process be suspended.

As a result, he said, the has been no action that will delay the bidding process. After the bids have been submitted, he said, competing companies that believe they have a case against the handling of the auction can submit evidence and make arguments to the court, which might find cause to suspend the process and halt the awarding of the concessions.

www.cnnexpansion.com/negocios/2010/02/05/competencia-movil-hace-frente-a-amparos