America Movil is planning to use spectrum acquired in the recent Mexican spectrum auctions to rollout so-called 4G services – most likely based on LTE technology – to keep its edge over rivals which are only just beginning to rollout 3G networks. “We don’t know exactly when, but we are reviewing when it would be good for [Mexico unit] Telcel to start putting in that infrastructure. It would be an alternative to increase the data side of our business, which is growing a lot,” CEO Daniel Hajj said during a conference call to discuss the company’s second-quarter financial results, notes Dow Jones Newswires. Last week, Telcel bid MXN3.79 billion (US$297 million) for 21 blocks of 10MHz spectrum in the 1710MHz-2170MHz frequency band covering all nine of Mexico’s regions. Its closest rival, Spain’s Telefonica, offered MXN1.27 billion for six 10MHz blocks in six regions. The Spanish group is expected to use the spectrum to launch 3G services in a bid to better compete with Telcel, which controls around 70 percent of Mexico’s mobile market and is the only operator to have launched 3G to date.

More competition for Telcel in 3G is likely to come from a consortium comprising local media giant Grupo Televisa and the Mexican arm of mobile operator, NII Holdings, which was the sole bidder for a nationwide license in the 1710MHz-2170MHz band. According to Telegeography, Televisa has said that it will invest around US$1.4 billion in the mobile venture if the consortium acquires enough spectrum to launch its own 3G network. However, as the Televisa/NII JV offered the minimum bid of MXN180.3 million (USD14.1 million) for 30MHz in each of the country’s nine mobile operating regions, some local politicians have accused the regulator of selling off the spectrum too cheaply. Telcel, Telefonica and Televisa/NII also acquired spectrum in a separate 1850-1990MHz auction last week with combined bids reaching MXN2.98 billion