COFETEL

Mexico’s telecom regulator, COFETEL, received full auction lifecycle support along with a Spanish version of the Computech Auction Platform (CAP).

Introduction:

The Comisión Federal de Telecomunicaciones (COFETEL), Mexico’s telecoms regulator, is an independent administrative body operating under the Secretariat of Communications and Transportation (SCT). It is responsible for regulating, promoting and overseeing the development and coverage of telecoms and broadcasting services in Mexico, and has full autonomy to make its own rulings.  COFETEL’s core mission is to provide all Mexicans with effective telecommunications services.  Additionally, COFETEL is charged with ensuring that a competitive telecommunications marketplace exists and that infrastructure is upgraded to allow for the delivery of world-class telecommunications services.

Challenges:

Since the late nineties, COFETEL licensed spectrum through a customized version of the Federal Communications Commission (FCC)’s Automated Auction System (AAS).  However in 2009, faced with two high profile Auctions on the horizon, 20 and 21, COFETEL determined their current technology would not support the requirements needed.  They realized they needed increased usability, an improved interface, and reporting capabilities.  In addition, they did not have the functionality to run the auctions remotely, or under anonymous bidding – - necessary to in turn increase transparency, competition and allocation efficiency. COFETEL needed a technology modernization strategy to keep pace with the country’s rapidly expanding telecommunications needs.

Solution:

With a relationship extending back to COFETEL’s first auctions in 1995, Computech was asked to help COFETEL reach its goals with full auction lifecycle support, from initial auction policy, design, and format consultation, through system customization, and live auction conduct and support.  Under tight initial government-mandated deadlines, as well as strong public pressure from the Mexican spectrum industry, Computech delivered Mexico with a leading-edge version of the Computech Auction Platform (CAP) that complied with international standards, operated fully in Spanish, and met the unique needs of Mexico’s telecommunications users.  After deploying the auction system, the Computech team went on-site in Mexico City to lead hands-on training with COFETEL.

Notable Results:

With CAP, COFETEL generated more than $8.2 Billion pesos in combined high bid amounts from the two auctions, over a course of 163 rounds and 30 bidding days – one of the highest combined-bid auctions Mexico has run to date.  COFETEL staff is now armed with the know-how to conduct the full auction life cycle with their new system – - a significant cost and time savings for the regulator for many years to come.  Their new system complies with international best-practices, and they are set up to accommodate Mexico’s aggressively growing telecommunications landscape and compete on a global scale.