What is the story about?
What's Happening?
Paraguay's National Telecommunications Commission (Conatel) has awarded 5G spectrum licenses to Claro and Nubicom, with each company securing 200 MHz in the 3.5 GHz band. The auction, which excluded Chinese vendors due to strict eligibility rules, saw Claro and Nubicom as the only bidders. Nubicom, an Argentine ISP, faces the challenge of building a mobile network from scratch, as it currently lacks mobile infrastructure in both Argentina and Paraguay. The auction's restrictive terms, including a 'commercial reciprocity' clause, led major players like Tigo and Personal to abstain from participating.
Why It's Important?
The exclusion of Chinese vendors aligns with U.S. policies on securing telecommunications infrastructure, reflecting geopolitical tensions and concerns over cybersecurity. The auction's outcome highlights the challenges faced by new entrants like Nubicom in establishing a competitive presence in the market. The limited participation underscores the impact of restrictive policies on market dynamics and technological neutrality. The U.S. Embassy's support for the auction process indicates alignment with broader strategic interests in the region.
What's Next?
Operators have six months to begin infrastructure deployment, with commercial 5G services expected to launch between March and April 2026. The development of 5G networks will likely influence Paraguay's digital economy and connectivity. The exclusion of Chinese vendors may prompt further discussions on international trade relations and technology partnerships. Stakeholders will monitor the rollout's progress and its implications for regional telecommunications competition.
AI Generated Content
Do you find this article useful?
