Claro and Altice bid for 5G frequencies

The plan is for the deployment of the nationwide 5G frequencies by November 2021. The Dominican Institute of Telecommunications (Indotel) announced on 11 October 2021 it has received offers from Claro (Compañía Dominicana de Telecomunicaciones) and Altice Dominicana. The Dominican state would receive revenues in excess of US$73 million.

Claro submitted the highest economic offer per Megahertz unit (MHz) per year, in the amount of US$37,936.52 and, per the bidding documents, and obtained the right to first select the band segment in which it wishes to operate. The company bid for the allocation of 70 MHz in the 3.3-3.4 GHz band. This is equivalent to a total annual payment of US$2,655,556.40 for the remaining years of its concession contract, which the Dominican state will receive.

On the other hand, Altice opted to acquire 70 MHz, at a value of US$21,100.00 per MHz, which represents a total payment of US$1,447,000.00, to operate within the 3.4-3.5 GHz segment for each remaining year of the concession.

Claro will pay a total of US$53,111,128 for the use of the spectrum for the next 20 years. Altice will end up paying US$20,678,000 for the use of the selected spectrum for the next 14 years. This agreement for the use of the bands will represent a total income of US$73,789,128 for the Dominican ztate.

Indotel’s board of directors, chaired by Nelson Arroyo, is scheduled to announce the winners of the auctioned bands on 28 October 2021.

These actions are part of the bidding process of frequencies for the deployment of 5G networks initiated last February of this year, as ordered by President Luis Abinader through Decree No. 539-20. The purpose of this decree is for telecommunications service providers to obtain the necessary frequencies and deploy state-of-the-art telecommunications infrastructure for the transmission of fifth-generation mobile networks.

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12 October 2021