Mexico. The Federal Institute of Telecommunications, IFT, approved the Call and Bases of Public Tender to concession 148 transmission channels for the provision of the public service of digital broadcast television in 124 different coverage areas throughout the country (Tender No. IFT-6). In 24 of the coverage areas, two transmission channels will be tendered, some of which will be located in the VHF band (channels 7 to 13).
The bidding process will be essentially electronic, via the Internet, through the Electronic System for the Registration and Submission of Tenders (SERPO), which will facilitate the participation of interested parties from anywhere there is access to the Internet. The authentication of the information and documents that are sent through the SERPO will be carried out by means of the advanced electronic signature (FIEL) of the interested party.
The bidding mechanism for bidding is based on an ascending score clock format, consisting of:
Primary phase. Formed by an Initial Round and, if applicable, by one or more Subsequent Rounds.
Tiebreaker phase. Formed by one or more Tiebreaker Rounds in which the participants who have tied in score, at the end of the Primary Phase, may present a free offer in points in order to eliminate the tie.
In the Initial Round of the Primary Phase, an initial score is established to which each transmission channel of a coverage area is offered based on the corresponding minimum reference value. If there is more demand than supply for a channel to the specified score, a Subsequent Round is added in which the score is raised, according to a predetermined increment table, and bids with the new score value are received again.
Subsequent Rounds will be added as long as demand is greater than supply.
If for a new round of the Primary Phase bids are no longer received and in the previous round there was greater demand than supply of channels, the Tiebreaker Phase will proceed with one or more Tiebreaker Rounds in which free offers will be received from the participants in the last round, which must be higher than the score in which offers were received during it. The process will conclude for the channels of the coverage areas when demand equals supply.
The tender contemplates a spectrum accumulation limit of 12 MHz for digital broadcast television, considering those that could be obtained as a result of the process itself.
A stimulus in points is also contemplated for the participants that are defined as New Participants in the Market. The incentive shall be 15% in points for those who do not provide broadcasting services (radio and free-to-air television) in the main localities to serve as the coverage area concerned, and 10% for those participants who provide sound broadcasting (radio) services in the main towns to serve the coverage area in question, but do not provide broadcast television services therein.
Those who cover more than 20% of the population with their nationally broadcast television services will not be considered as New Market Participants.
The tender shall comprise four stages:
- Registration of Interested Parties, questions and answers on the bases and delivery of information.
- Evaluation and assessment of the information, and issuance of Certificates of Participation.
- Presentation of bids from participants and issuance of rulings.
- Payment of consideration and granting of concession titles.
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