On 27 March 2025, Supreme Decree No. 004-2025-MTC was published approving the regulations of Legislative Decree No. 1627, the legislative decree to promote the deployment of public telecommunications services using fifth generation (5G) or higher technology ("Regulations" and "Decree," respectively).
The Regulations establish the parameters for the Ministry of Transportation and Communications (MTC) to follow when granting concessions and assigning radio spectrum for the provision of public telecommunications services at the national level, through 5G technology or higher, via a special assignment mechanism ("Mechanism"). These Regulations will coexist with other radio spectrum assignment mechanisms contemplated in the current regulations.
The most relevant provisions of the Regulations are detailed below:
I. Scope of the standard
- The Regulations apply to all natural or legal persons, national or foreign, that are interested in accessing the Mechanism, including telecommunications service operators with rights of use in the selected band.
II. About the special allocation mechanism
- The MTC may identify and select frequency bands to apply the Mechanism, considering technical and economic criteria to guarantee the optimal deployment of 5G technology.
- Once the bands are selected by the MTC, technical and economic studies will be conducted to evaluate the band, determine migration costs, and establish guarantees and mechanisms to comply with the obligations. The band must be allocated and channeled for public telecommunications services. If there are reservations that restrict new allocations, the MTC must lift them before the call for bids.
The application of the Mechanism may entail a modification of the preexisting allocations that took place in the selected frequency band. Access to the conditioning is voluntary and may generate technical and economic obligations. - If the selected frequency band is subject to a migration process, to guarantee its availability, guidelines will be followed, which will be detailed in the Call for Proposals of the Mechanism.
- Migration payments are directed to an administration trust to guarantee the effective execution of the migration process.
- The concession contract signed by the qualified company, as well as the addendum signed by the concessionaire eligible for the conditioning, will include penalties applicable for noncompliance with the obligations related to the migration of services in the selected frequency band.
III. About the procedure and requirements
- The MTC will publish the call for access to the Mechanism in the official gazette and its website, detailing the requirements, schedule, selected bands, spectrum caps, spectrum value, mandatory investment commitments (COI) per spectrum and migration obligations. Radio spectrum caps may be contemplated in the call for the Mechanism.
- Interested companies must comply with legal requirements (personal data, incorporation documentation, commitment to subscribe the concession contract), technical requirements (minimum experience, qualification title, minimum number of users) and economic-financial requirements (net worth, audited financial statements, participation guarantee).
- The disqualified companies may challenge the director's resolution that contemplates their disqualification, following a procedure established for the presentation and resolution of appeals.
IV. Considerations for spectrum allocation and valorization
- The availability of radio spectrum in the selected band must be verified before proceeding with the Mechanism. Free spectrum and released spectrum will be considered to determine the viability of the Mechanism.
- The valuation of preexisting assignments made available to the Mechanism will be carried out, using an established methodology.
V. On the auction regime and location of the spectrum
- The location of radio spectrum assignments will be determined by auction, where participants compete to choose the desired location within the selected band.
- The rules of the auction and the additional commitments that the participants must assume to have preference in the determination of their locations will be detailed.
VI. On the conclusion of the assignment and concession contracts
- The results of the Mechanism and the conditioning will be approved by means of a vice-ministerial resolution, including the terms and conditions for its implementation.
- Companies must submit additional documentation and sign concession contracts and/or addenda within the established deadlines. Failure to submit the required documentation will result in the company's disqualification.
- The concession contracts will include essential conditions attributable to the concessionaire, such as compliance with the COI per spectrum and the additional COI assumed, as well as the payment of the migration cost.
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We hope this information is of relevance to you and your company. Please do not hesitate to contact us if you require any advice in this regard.
