Mexican Supreme Court rules in favour of MVS in spectrum battle

Mexican Supreme Court rules in favour of MVS in spectrum battle

The Mexican government’s attempts to shake up of its mobile market by rescinding licences have been rejected by a Supreme Court ruling.

Mexican operator MVS Comunicaciones appealed the government’s attempt to reclaim 42 licences it owns in the 2.5GHz band. The court voted in favour of MVS by three to one.

The Mexican government had plans in place to reinvigorate the telecoms sector and increase competition to drive down prices for consumers. Government officials had hoped to reclaim the 2.5GHz band to develop high-speed internet after MVS had not moved quickly enough to develop a high speed network.

Mexican officials were looking to retrieve MVS’s 190MHz spectrum, which would be enough to service three companies the size of Carlos Slim’s América Móvil, in a bid to entice additional players in the market.

Slim has increased his shares in América Móvil, which remains the dominant player in the Mexican market.

MVS praised the decision, commenting it was a "precedent which undoubtedly will provide greater security and judicial certainty for investment and development of Mexico's Telecommunication sector”.

Mexican regulator, Communications and Transport Ministry, declined to comment.

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