5G Technology Auction: What’s at Stake?

This Wednesday, the ICT Ministry will auction permits to use radio spectrum in several bands, including 3500 Mhz, which will allow for the use of 5G, which will allow for greater agility in data transmission but use. Still not widespread enough.

Four operators stand out as participants in this process: Claro, Telecall, Tico-Movistar Temporary Union and WOM. On Claro’s part, the auction aims to contribute to the democratization of spectrum use, while debating its dominance in the sector.

“This process, from the first moment, is a participatory, open and transparent path,” said ICT Minister, Mauricio Lizcano. According to Liscano, this participation occurred from the setting of conditions to the socialization of conditions with operators.

This December 20th, there will be strict security measures in place to prevent third parties from knowing the content of proposals until the relevant moment. There will be no public hearing but rather a reserved session and operators will get a report of their participation through an electronic platform and find out the results at the end of the day.

Transparency is ensured through an objective selection process led by the Ministry, with specific bidding procedures for each band.

A simple ascending clock bidding mechanism for the 700 MHz band includes multiple rounds of simultaneous bidding to avoid a similar process for 1900 MHz, extended AWS and 80 MHz blocks in the 2500 MHz and 3500 MHz bands. Monopoly ownership of slots and guaranteed equal participation of all operators.

In addition, MinTIC invited the Republic’s Comptroller General and Attorney General’s Office to observe the bid. Their presence will ensure independent oversight and strengthen confidence in spectrum allocation.

“After receiving the excellent news that the entire country has bid, the publication and announcement of specific administrative actions to grant permits for the use of the radio spectrum and their announcement continues,” Liscano said.

Regarding the implementation of the technology and its advantages in terms of speed, efficiency and service, the process will be gradual and will begin in the more populated cities. Coverage will be expanded in phases to meet specific obligations in municipalities where 54% of the country’s population resides.

The deployment will also depend on the market availability of terminals with 5G technology and the speed with which users can purchase these devices. Liscano pointed out that while most terminals are currently high-end, more affordable terminals are expected to gradually enter the market through auctions.

Operators will have flexibility in deploying their networks, but must reach certain areas by the end of next year. Although the process is gradual, it aligns with the necessary evolution of the 5G ecosystem, ensuring consistent deployment.

Liscano highlighted that with the use of 5G technology, the country will experience significant progress. The bid focuses on bridging the digital divide and global access, in addition to improving speed, reducing latency and providing greater flexibility in wireless services.

The auction will benefit 2,326 educational institutes with internet service, improve connectivity in 25 places without mobile service from any operator and 61 primary roads and 41 sections of secondary roads, totaling 2,114 km.

The coverage obligations imposed on allottees will guarantee service delivery for 20 years and contribute to sustainable development of the country.

Although the exact value the operators will pay for the 3500 MHz spectrum will be known only this Wednesday, the ministry indicated that the state could collect about 1.27 billion pesos for the concept. This value comes from the auction of four 80 MHz blocks, worth 318 billion each.

It should be noted that the resources received will be used to transform the telecom infrastructure into a productive pillar.

Finally, the connectivity roadmap outlined by the bid promises not only connectivity through telecommunications infrastructure, but also boosts Colombia’s economic and social development.