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AMOV - America Movil SAB De CV News Story

$14.77 -0.0  -0.1%

Last Trade - 14/05/21

Large Cap
Market Cap £34.90bn
Enterprise Value £59.31bn
Revenue £36.26bn
Position in Universe 252nd / 6849

Colombia to charge Novator Partners for withdrawing bandwidth bid offer

Fri 21st February, 2020 2:23am
BOGOTA, Feb 20 (Reuters) - Colombia has launched a process
to charge Novator Partners 42 billion pesos ($12.3 million)
after the British company pulled out of a 10 mega hertz (MHz)
block it was awarded in the 2,500 Mhz bandwidth spectrum of a
December auction. 
    The Ministry of Information Technology and Communications
awarded three companies with bandwidth in the 700 Mhz and 2,500
Mhz spectrums during an auction as part of efforts to improve
mobile telephone services and expand internet access.*:nL1N28S1B4
    Novator Partners, a privately held company, wrote to the
ministry on Jan. 2 to withdraw from the block within the 2,500
Mhz band and for which it had submitted an offer of 1.74 billion
pesos ($511.6 million).
    "Novator Partners is required to pay 42 billion pesos for
withdrawing its offer, as per regulations," the ministry said,
explaining that if payment is not received it will be taken from
the company's deposit.
    The British company was not immediately available to comment
on the decision. 
    The ministry had awarded Novator Partners with on block in
the 700 Mhz bandwidth and two blocks in the 2,500 Mhz bandwidth.
It also assigned Claro, a subsidiary of América Móvil  AMXL.MX ,
one block in the 700 Mhz bandwidth and three blocks in the 2,500
Mhz bandwidth and Tigo de Millicom  TIGOsdb.ST  with two blocks
in the 700 Mhz band.
    The bandwidth auction will extend phone and 4G internet
coverage in 3,658 rural locations in Colombia's 32 provinces and
includes commitments to invest 2.24 trillion pesos ($658.6
million) over the next five years.
    Furthermore, Colombia will receive 3.21 trillion pesos
($943.8 million) in annual payments for 17 years from operators
who hold permission to use the bandwidth for 20 years. 

    ($1 = 3.400,98 pesos)

 (Reporting by Luis Jaime Acosta;
Writing by Oliver Griffin; 
Editing by Sandra Maler)
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