The Deployment of 3G in Latin America


MEXICO CITY, Jan 20 (Reuters) – Latin American wireless carrier NII Holdings
Inc plans to bid for new frequencies to bolster its coverage in Mexico as it
deploys 3G technology across the region to improve services and boost client

"We are interested in the national coverage," Gustavo Cantu, vice president
of NII’s (NIHD.O: Quote, Profile, Research) Mexico operations,
told Reuters on Wednesday.

NII operates in Mexico, Brazil, Argentina, Peru and Chile under the Nextel

The Mexican government this month launched the long-awaited terms for
mobile-phone frequency auctions, and hopes to unveil winners by mid-year. Such a
big sale of added wireless capacity in the country is the first in at least a

Cantu said Nextel Mexico was exploring how to approach the auction, which
will give companies the right to operate blocks of frequency in the 1.7 Ghz and
1.9 Ghz bands.

Other rivals are willing to team up to improve their chances of buying the
best bands. The process is expected to lure blue chips like Spain’s Telefonica
(TEF.MC: Quote, Profile, Research) and Mexican media
company Televisa.

Local newspaper Excelsior said in a column this week that Televisa (TV.N: Quote, Profile, Research) (TLVACPO.MX: Quote, Profile, Research) was ready to pay
$1 billion for a stake of between 20 percent and 30 percent in Nextel

Asked about the chance of NII siding with the world’s biggest producer of
Spanish-language media content, Cantu said, "Those are only market rumors." But
he did not deny the report. Televisa was not available for comment.

Cantu said NII is busy deploying 3G services in Latin America, which would
allow the company to catch up with regional leaders America Movil (AMXL.MX: Quote, Profile, Research) (AMX.N: Quote, Profile, Research), controlled by Mexican
tycoon Carlos Slim, and Telefonica. (Reporting by Cyntia Barrera Diaz; editing
by John Wallace) 

By Cyntia Barrera Diaz


The PC sales grow 13% in Latin America

Sales of computer makers in Latin America increased 13% this year with a total of 27 million units, but this increase is low in a region that faces huge technological challenges, said a Microsoft manager.

Hernán Rincón, president of Microsoft Latin America, mentioned that the installed base of computers is between 100 and 120 million units and broadband reaches only 20 percent, while in some countries of the region the percentage is smaller.

One in six American have a computer and about 35% of the population has Internet access, but "80 percent of it is done through an Internet cafe.

"We have a very big challenge in the region and the world. We have not yet reached as much as we would like," he said in a meeting with reporters in Miami.

Challenges persist when they lowered the cost of computers, which now can be purchased with less than $ 200.

"Of those 27 million PCs (which will be sold in 2010) about half are manufactured in the region, especially Brazil and Mexico. This makes them more accessible," he added.

Until five years ago there was a certain distancing of Latin Americans toward technology, but has been overcome with the use of cell phone.

Governments and the business sector, meanwhile, have understood that technology is an important tool to improve productivity and reduce costs.

In fact, that was his shield to face the onslaught of the international financial crisis which in turn resulted in significant growth for Microsoft in Latin America in 2009.

"All governments and most companies called us to improve productivity and save costs. This enabled us to continue growing in 2009 in the region where most companies do not because of the crisis," said the manager of Microsoft .

The software giant grew at a rate of "more than 20% annually over the past five years and if all goes well, this year will triple the size of Microsoft in the region in relation to that period."

During this period, Latin America is the area of Microsoft that has grown into the world, according to Rincon, who was optimistic about the future of technology in the region.
The largest markets which have are Brazil, Mexico, Colombia, Argentina, Chile and Venezuela, in that order.

The technology has allowed Chile to bring government closer to its citizens and bring transparency to its procurement processes to enable all providers know what is taking so that they can make their bids, explained the executive.

Brazil, meanwhile, is the pioneer in the payment of taxes via the Internet, "is the country that collected electronically in the world"; Puerto Rico using technology in the educational and the island has the highest ratio of the region in terms of relationship between student and computer, which is almost one to one.

Regarding Microsoft’s challenges in the region, said first corner to maintain their advanced technology, design strategies to reach more people and work hard with cybercafes, "which is not easy because they are at remote sites.

Piracy is another challenge, highlighted the executive, who said that 64 percent of software is pirated and there are countries like Paraguay and Venezuela, where more than 80 percent.

Rincon provide other information about Microsoft Latin America: is the number one market share in servers for greater penetration, has more email accounts in the U.S. and Hotmail that over a hundred million users, with the Messenger instant messaging program.

He also announced that the company will hold the Government Leaders Forum of the Americas, 29 and 30 April in Mexico and it has invited the presidents of Colombia, Álvaro Uribe, of Panama, Ricardo Martinelli, and the Dominican Republic, Leonel Fernández .

Reference: El Universal, Mexico

Telcel Grew with the Portability


For over a year and a half have come into effect number portability in the country, Telcel is maintained as the company that has won with this scheme in Mexico.

From 14 July 2008 to March 4, 2010, the wireless company reported a net 281 thousand 321 operations portability, a figure derived from the balance between missing lines in favor of another operator and received, according to figures provided by the phone companies.

Meanwhile, rival phone features a negative figure of 242 thousand 180 customers.

The Spanish said that most of these customers will generate higher value, because they have very low consumption and they are users who are constantly changing company.

Information indicates that Telcel Iusacell and Unefon have lost more customers than it did. The net result for these cell phone companies from 14 July 2008 to March 4, 2010, is 379 lines of 21 thousand and 18 thousand 87 lines, respectively.

According to the Federal Telecommunications Commission (Cofetel) at the close of February 2010 we conducted a total of one million 502 thousand 317 digital ONTRIBUTIONS other firms.

One million 29 thousand 655 operations correspond to the number of mobile lines, ie 68% of the total.

Data from The Competitive Intelligence Unit (CIU), indicate that at the end of 2009, Telefónica filed a 0.6% gain in the share of mobile market revenue versus 2008.

In 2009, the proportion of income earned by the Spanish company in relation to the total generated in the mobile industry was 14.1%, while in 2008 was 13.5%.

Telcel, in contrast, lost 0.4% in revenue sharing at the end of 2009 to obtain a total of 68.5% against 68.9% achieved in 2008, according to figures from CIU.

For Iusacell-Unefon, chop in 2009 revenues that were recorded in mobile telephony was 5.5%, against 5.6% in 2008.

The consulting firm said last year the mobile phone operators added a total income of 15 thousand 416 million dollars, a figure lower than the 2008 when it reached 17 thousand 729 million dollars.

Reference: El Universal, Mexico

The Crisis Hits Sending Texts Via Mobile

In February last year this fell to 10.3% service

Sending short messages through mobile phones in 2009 grew only half of which increased a year earlier.

According to the Federal Telecommunications Commission (Cofetel), last year sent nearly 51 billion SMS in Mexico, higher than 27.9% with respect to message traffic that was exchanged in 2008.

However, although a positive rate, the growth rate dropped significantly in relation to the behavior recorded in 2008 versus 2007 when there was an increase of 59.5% of text messages.

This performance is explained by the economic crisis, which led to higher unemployment and lower consumer purchasing power, analysts considered by El Universal.

Since early last year, experts predicted that mobile users would reduce their consumption in the service, expectation that was fulfilled.

The figure for December, when the one presented a significant increase in the consumer phone service, shows less message exchange over other years.

In the last month of 2009 were sent almost 5 billion text messages through cell phones, and although this figure ranks as the largest in the history of sending messages in the Mexican market, the annual growth rate was the lowest for a month like this since he began to measure that traffic.

Cofetel statistics indicate that in December 2009 to send SMS grew 22.6% over December 2008 when growth was almost 40%.

These figures reveal that increasing the growth rate of December 2009, meant almost half of the previous year.

In general the behavior in sending messages every month throughout 2009 was weak. There were even five months of submission negative growth rates compared to previous month.

The largest fall was recorded in February when SMS traffic was negative in 10.3% compared to January.

In April, June, September and November also showed negative growth rates for the month immediately sent messages.

"The mobile traffic has been one of the features of the industry hardest hit in recent quarters as a slowdown has accumulated nearly 40 percentage points since early 2008" according to the Federal Communications Commission.

The number of minutes completed in the networks of mobile phone dealers 23.2% increase compared to fourth quarter of 2008, he said.

The number of users at the end of December was 83.5 million, an increase of 11% over the same period in 2008.

The growth of cellular telephony in the 12 months of 2009 was 19.5% per year, said the Federal Telecommunications Commission, Cofetel.

Reference: El Universal, Mexico

Firms Moving into 4G Services

 Telcel and Telefonica are prepared for the take-off of these technologies by 2012.

Mexico’s Telcel and Telefonica plan to deploy its fourth generation networks (4G) in 2012, according to information provided by these operators to the GSM Association (GSMA).

With this technology known as LTE (Long Term Evolution) will be possible to have mobile broadband services with speeds that promise to be higher by up to 10 times compared to standards provided by the Third Generation (3G).

The frequencies in the bands of 1.7 – 2.1 GHz which is currently bidding are susceptible to developing LTE as well as the 2.5 GHz

In Argentina, Chile and Brazil. America Movil and Telefonica plan to launch LTE by 2012.

In Colombia this technology offering will be taken in 2012, according to the GSMA.

According to 3G Americas, operators who plan the installation of LTE devices will need to offer multi-technology networks that enable mobility and service continudad between networks of second, third and fourth generation.

The migration to this technology will be gradual between the mobile industry, it is anticipated that before operators to develop their networks with HSPA and then go to LTE.

He said a group of 130 operators around the world has joined its LTE technology roadmaps.

In December 2009, TeliaSonera launched the world’s first LTE networks in Norway and Sweden and is expected to more than 17 operators do the same in 2010.

3G Americas noted that this powerful technology is accepted by industry leaders worldwide, including AT & T, China Telecom, China Mobile, NTT DoCoMo, Telecom Italia, T-Mobile of Germany, Verizon and Vodafone.

However, it is important to note that the evolution to LTE will require a multi-year effort.

He added that this rule should live together in an efficient and transparent with current technologies on their way to becoming the leading wireless technology for next generation.

In a study on the transition from GSM mobile networks to LTE, 3G Americas noted that due to global and economic importance of the cellular industry, decisions are taken on spectrum allocation and harmonization undoubtedly will have profound and lasting consequences.

"Regulators should ensure that new spectrum is harmonized and coordinated regional or global level while ensuring that the technology can be used efficiently and without causing interference to other spectrum users," he said.

With LTE be possible to satisfy the provision of services with high rates of return as required by video services, high quality and real-time videoconferencing.

Reference: El Universal, Mexico

Foreseen Problems in Cell Phone Registration


From the universe of people already registered it is possible that there will be a high number of false, analysts say

Sign me up for the National Register of Mobile Phone Users (Renaut) can be done even with false information.

Analysts warn that this first part of the record do not have a system of verification of information.

The National Population Register (Renap) still does not find the data and the Federal Telecommunications Commission (Cofetel) has not issued any safety guidelines.

"User registration (with the operators) is the ‘light’, the complicated stage of Renaut is the second phase, where physically the user would have to go prove his personality.

"Many people may have been discharged under any name or had a mistake in your shipment," said Sergio Legorreta, partner at the consulting firm Baker & McKenzie.

From the universe of people already registered it is possible that there will be a high number of false, especially by those who are stuck in their criminal activities and others who gave their incomplete data, the analyst pointed out.

As of April 11th, if not altered the term would come into operation the second phase of Renaut, which consists in verifying the information submitted by individuals and businesses.

The process will be conducted by Renap, which depends on the Interior Ministry.

However, this agency has indicated that technical problems have to do it, said Rafael Eslava, head of the Futurology unit and Regulation of the Cofetel.

Another risk is that the database of the Single Key Population Registration (CURP) is flawed and duplication, so that when comparing the data could cause several lines are suspended by inconsistencies.

This will affect people and businesses, said Ivonne Munoz Torres, a specialist in law on information technology and communications.

"We are a country that does not even have a record of all inhabitants fully documented, so that no Renaut against which to compare," said Ernesto Piedras, director of research firm Competitive Intelligence Unit

In addition, Munoz said, is the disadvantage that to date has not published Cofetel safety guidelines, which generates a high degree of uncertainty about the management of data.

Since the inception of registration problems have been identified as from the selection mechanism was located was not the most efficient and appropriate to reduce crime, said Ramiro Tovar, academic ITAM.

"Some operators submitted proposals such as using the geolocation system of the equipment in real time to facilitate the location of people when they are making calls, but lawmakers opted for the record," he said.

It is also likely that many of the lines that were previously to be prepaid and are not operational, referred Legorreta.

Reference: Reforma, Mexico

NIC Mexico reaches 400,000 .Mx Domain Registrations

NIC Mexico (Network Information Center Mexico), responsible for managing domain names. MX on the Internet, announced it has reached a figure of 400,000 domain name registrations under the termination. MX including the following classifications:.,. Gov . mx,.,.,. and. mx.

The considerable increase in the registration of domain names ending in. MX is largely due to increasing number of users, whether individuals or companies have the need to have Internet presence because they recognize an added value to power identify with Mexico and promoting its services worldwide.

"Today we have reached a record high to over 400 thousand domain names, allowing us to continue fulfilling our important mission to put Mexico’s name on the Internet, allowing more users to promote their ideas, business and culture" said Oscar Robles, Director General of NIC Mexico.

Through a statement, NIC Mexico extiendió an invitation to those who want a presence on the network, to identify with Mexico on the Internet by registering their domain ending in. MX and use it as a growth platform for selling their ideas, products or services.

It also recommended that all interested users to ensure their presence on the Internet. MX taking advantage of the recent reduction in registration fees, available at NIC Mexico Register from $ 11 to register for one year. and $ 40 for registrations directly below. MX.

Mexico, Site of the Assembly of Telecommunications


The event will bring together inter-American authorities on the subject was held in Mexico City between 8 and 11 March

Mexico will host starting on Monday of the V Ordinary Session of the Assembly of the Inter-American Telecommunication Commission (CITEL), which promotes the development of telecommunications and information technologies in the Americas.

The Organization of American States (OAS) said here in a statement that telecommunications authorities of the various American countries attending the meeting, to be held in Mexico City between 8 and 11 March.

The event’s agenda includes talks and lectures on topics like universal broadband, the role of information technology and communications (ICT) in economic development and the market outlook in this sector.

Attendees will also address innovation and growth of the Internet and information technologies and communications, and the role of telecommunications in disaster situations, and spectrum policy issues, among others.

The appointment of CITEL will be headed by OAS Secretary General Jose Miguel Insulza, Mexican authorities and private sector representatives and specialized inter-American agencies.

CITEL was established in 1994 within the framework of the OAS as an intergovernmental advisory body to the highest level of telecommunications in the hemisphere.

CITEL promotes the permanent exchange of information, knowledge and best practice on technical, economic and regulatory issues.

Reference: El Universal, Mexico

Intel Announces New Brand & Marketing Director for Mexico

Intel Mexico announced the appointment of Jose Ignacio Saéz as the new Director of Brand & Marketing, assuming full duties as of today. Jose Ignacio bring its experience of more than fourteen years in the industry of information technology, and extensive knowledge in the area of marketing and branding strategies.

In this position, José Ignacio is responsible for developing and monitoring comprehensive strategies that seek to position the brand in the country.

Jose Ignacio joined Intel in 2001 as Sr. Product Analyst, in 2003 he served as Global Account Manager for Telefónica in Madrid Spain, two years later served as Marketing Director of Mobility for telecommunications companies in Europe in March 2007 he became Director of Brand & Marketing for Spain and Portugal, and in April 2009 was appointed Director of Interactive Marketing at Intel for Latin America, a position he held before his current appointment.

He holds a degree in Business Administration from the University of North Florida and an MBA from The American Graduate School of International Management in Phoenix, Arizona.

The Sale of Satmex is at Risk

The creditors do not accept the proposal of MVS / Echostar, if these holders mantain the opposition the sale of the company will be imposible.   

A group representing more than 50% of guaranteed senior notes second priority of Satellites Mexicanos (Satmex) agrees not to accept the proposal to purchase the group consisting of MVS-Echostar, the dealer informed the Mexican satellite system.

If these holders will be impossible to maintain opposition made the sale of the company, as confirmed Satmex.

As a matter of Jose Otero, president of Signals Consulting Telecomm, those same bondholders opposed the investment to build the Satmex 7, worsening the position of the company due to an aging fleet that has no short-term replacements.

It found that in 2007 attempted a sale process with a minimum price of $ 500 million, which did not materialize because no participant offered more than that amount, so it is expected that a similar financial proposal is acceptable to all holders of notes.

"You could say that the process seems doomed to fail," said the specialist.

"It will be very difficult for the holders of notes change their position. This will result in two things: failure of a takeover attempt by EchoStar Satmex / MVS and the formulation of an alternative plan by the same bondholders to try to boost the construction and commissioning in orbit replacement Satmex Solidaridad 2 and 5, said Otero.

Consider that do not are doomed to see how the value of the company slows over the months and with a maturity of 63% of its debt in 2011.

Satmex admitted that the bid by $ 374 million made by the consortium would not be sufficient to repurchase the senior secured notes in circulation registered securities whose principal amount is about 424.25 million dollars.

The company is negotiating with creditors to convince them, but if the deadline for the dealership to negotiate the purchase of senior notes, total cash is not enough to purchase, then neither the repurchase or sale of company shares be achieved.

This period ends in about two or three weeks, said the satellite dealership.

"The position of holders of notes complicates the transaction because we have to consider that EchoStar would have to be undertaken in coming years to launch two satellites to replace Solidaridad 2 and Satmex 5," Otero said.

The EchoStar’s purchase intention is conditional upon no later than March 16, 2010 the signing of a preliminary authorization to proceed with a manufacturer to build a replacement for Satmex 5 and no later than April 27, 2010 have to sign an agreement to manufacture the new satellite, said the president of Signals.

Carried out the transaction, EchoStar will pay about $ 300 million for a replacement Satmex 5, in addition to what is necessary for the construction and launch of Satmex 7, because it only has incurred an amount equal to the cost of design the manufacturer Loral.

Reference: El Universal, Mexico