The Business of Radio Spectrums in Guatemala

The extension for another 20 years, without any fees, of the concessions for radio frequencies, will deprive the Guatemalan State of millions in income, and removes market transparency.

Wednesday, November 28, 2012

While in other countries concessions for the use of radio frequencies provide state coffers with many millions of dollars, in Guatemala, Congress has passed legislation extending licenses that are currently in effect for another 20 years, without any costs to the concessionaries, who in addition at the end of the period of usufruct, may renew them again.

Therefore, the only possibility the Guatemalan State has to reallocate a frequency, is when the current concessionaire abandons it. reports that in an auction of radio spectrums "Spain earned €1.6 billion in a year", and Costa Rica, after 60 years of state monopoly, put out to tender three frequencies for telephony, and after the flood of bids the government received $172 million.

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

El Salvador: Telecommunications Reforms Are Essential

January 2016

Government control over the allocation of concessions and the lack of antitrust rules have set alarm bells ringing for companies in the sector.

The Legislature will have only the three months granted by the Constitutional Court, from now, in order to make amendments to the Law on Telecommunications (LT).

Possible Modifications to Telecommunications Act

December 2012

In Guatemala and proposals arising from the recently passed amendment to the Communications Act, which extended radio concessions for 20 years.

In light of the act coming into effect, deputies in the Transparency Commission are preparing a bill relating to the issue of transparency, Deputy Carlos Barreda, a member of the panel, said "We must establish that the usufruct be delivered through an auction or implement a public payment for its renewal. "

Current Telecom Licenses Extended

November 2012

Guatemala's Congress has amended the Telecommunications Act, increasing to 20 years the time of usufruct for the radio, television and telephony frequencies.

When the deadline has been passed, a request for extension can be made for a similar period.

"When parliamentarians were asked about why they supported the reform, most agreed that it was to create legal certainty for multinational companies wishing to invest in the country.

Reform of Telecommunications Act

November 2011

If approved, the usufruct of radio, television and telephony frequencies would be extended to 25 years.

The reform of the Telecommunications Act will allow beneficiaries of radio, telephone and television frequencies, who have been given usufruct for 15 years to request an extension to 25 years.