On March 13, 2013 the Uruguayan Administration awarded to Claro – the Uruguayan subsidiary of América Móvil – the right to operate additional band frequencies to expand the scope and quality of its telecommunication services. Claro was awarded 4 batches for a price of approximately US$ 30.000.000.
The process was conducted by the regulator (URSEC), which has approved an auction system so called “English Auction” of successive rounds. According to the bidding terms, the absence of “activity”, i.e. lack of economic offers in the first round filed by the bidder, precluded the participant to bid in the next round. The auctioned batches were divided on 5Mhz with a minimum price of US$ 7.500.000 each. It is presumed that the total amount of the auction – considering the offers of the rest of the participants -- will be around US$ 100 million.
This is the most important frequencies auction in the history of the country. Claro initiated operations in Uruguay in late 2004, starting a process of competition which drastically dropped prices and increased the variety of communication services. Nowadays Uruguay has 90% coverage of 3G services on its territory. It is expected that this auction further expand 4G services among the population increasing the expansion of Smartphone’s among the consumers.
The licensee will be granted for a 20 year term to provide the communication services along the whole country.