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4G Broadband Network Coming To Mexico

13 September, 2012

According to a recent report by Reuters,MVS Comunicaciones has announced that it will unveil a new 4G broadband network in Mexico,bringing even faster,more affordable telecom services to the country and making it even more attractive for investors and investing in Mexico. According to Jose Abad,who is vice president of the company's Internet unit,the proposal is currently being reviewed by Mexico's Finance Ministry,along with the telecom industry regulator Cofetel,and when approved could bring with it an up front investment of nearly $1 billion.

As part of the plan,MVS will partner with wireless operator Clearwire Corp and chip maker Intel Corp to bring a high speed network to Mexico. After a start-up investment of $400 million,the partnership plans to begin selling access to the network to third parties,including companies like tycoon Carlos Slim's America Movil and broadcasters Televisa and TV Azteca. According to Abad,even companies that typically deal in consumer goods could buy into the new network and sell access to it.

Initial estimates by MVS predict that third party investments in the new 4G broadband network could reach upwards of $600 million,including efforts to promote the services and reach new points of sale. The high-speed LTE-based (long term evolution) network will bring the latest in mobile network technology to Mexico,allowing users to easily and quickly download music or images,and to watch television and video via smartphone that is streaming online.

The new network proposal from MVS is a vital component of the company's efforts to maintain the licenses that are necessary to operate at the 190 MHz bandwidth in the 2.5 GHz spectrum,all of which are scheduled to expire by 2018. Other companies that are also interested in participating have asked Mexico's government to resell MVS's capacity for operation to the open market. As a result,Mexico's finance ministry must also determine how much MVS will be required to pay if it is to keep operating at its current capacity or greater. According to Joaquin Vargas,who is the company's founder and head of the board of directors at MVS,"The government will have to define if it wants competition or to collect more money."

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