Telefonica swaps spectrum with AT&T in Mexico's new secondary spectrum market
Clients Telefonica SA
In the first transaction of its kind to be authorized by Mexico's Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones) following the creation of the secondary spectrum market by the Telecommunications and Broadcasting Federal Law in 2014, Telefonica SA, represented by Jones Day, and AT&T completed a spectrum swap and lease. The companies quickly negotiated and formalized the transaction, in which Telefonica exchanged 10 MHz in the 1.7/2.1 GHz AWS-1 band for 10 MHz in the 1.9 GHz PCS band licensed to AT&T. AT&T will lease its former spectrum from Telefonica for two years to continue providing mobile voice and data communication services to its customer base.
The transactions, which required antitrust clearance, were quickly approved by the regulator with no conditions. The transactions were authorized a few days before the spectrum auction of 80 MHz in the 1.7/2.1 GHz AWS band recently called by the Federal Telecommunications Institute.