Multicanal S.A., the company owner of the Uruguayan pay TV service Multiseñal, arranged with the country’s government that they will give up their 2.5 Ghz frequency band, which had been assigned to broadcast their MMDS signal. Meanwhile, the State compromised to pay them USD 2.5 million to avoid a presume trial.
In 2011, Uruguay’s government started a process to modify their telecommunications national policy according to the new technologies’ necessities, and exhorted pay tv companies to change their frequencies, that were between 2.500 and 2,600 Mhz, that were used to transmit through their wireless system. This way, the band will stay available for the 5G.
Although the deadline to finish with the transition was till january 2013, Multiseñal, which is now operating only with MMDS technology, still continues to function on that frequency and exclaims that to make a change, they need a big investment to acquire new infrastructure.
After the State held an auction for the band, and after the company solicited reports from the Regulatory Unit of Communications Services (URSEC) and the Telecommunications National Direction (Dinatel), which ended up showing results against it, both parties ended up making an agreement for USD 2.5 million. For that number, Multiseñal will give up their frequency in no more than 5 months from now. In addition, they will have to make up a migration plan for their customers and also waive all the authorizations and spectrum usage rights for subscribers.