Strong criticism from cell phone companies, which are calling for a review of the 5G bidding process in Paraguay.

The bidding process for 5G frequencies in Paraguay has been severely criticized by the main mobile phone service providers, who have demanded a change in the conditions for participating in the competition launched by the Santiago Peña administration.

Telecom Personal and Millicom questioned the lack of clear rules and the participation of companies with no track record in the sector during a meeting held by Certal in Asunción, the capital of Paraguay.

"Paraguay changed the rules for the 5G auction, a technology that accelerates competitiveness. This prevented almost 80% of the country's mobile phone customers from participating in the tender to access this technology. The process is not yet complete, so we believe it needs to be verified. We are open to collaborating, building, and reviewing aspects of the 5G auction process," said Hernán Colombo, Telecom's Manager of Regulation and Wholesale Business.

He added: "One of those selected doesn't even meet the eligibility requirements to provide a service of the complexity and technical importance of 5G."

The only bidders for the 5G auction were Claro and Nubicom, a small internet provider from Salta that has no experience in cellular telephony and is not legally incorporated in Paraguay.

The National Telecommunications Commission assigned 200 megahertz (MHz) to each of these two operators on the 3.5 gigahertz (GHz) frequency. Both companies made a deposit of US$1.4 million and have 60 days to pay the remaining commitments, as well as to submit all the necessary documents certifying their ability to make the multimillion-dollar investments necessary to provide 5G mobile phone services.

However, Tigo, Paraguay's largest mobile phone provider, owned by regional operator Millicom, also demanded that the process for granting these 5G frequencies be suspended.

"We are confident that we will find a solution that will allow us to continue advancing as a society and as an industry, to finally move forward with the digital revolution. It is critical that all of this be resolved in a reasonable manner so that the service can be accessible to the entire population," said Aldo Natalizia, Director of Regulatory Affairs at Millicom, whose company acquired Telefónica's Uruguayan subsidiary, Movistar, last May for US$440 million.

Telecom and Millicom executives called for clear rules and technological neutrality, as Paraguay's regulatory body is blocking the inclusion of Chinese technology, despite the fact that Huawei and ZTE are the main 5G technology providers. It also includes security requirements not found in other bidding processes in the region.

For this reason, Paraguay's main telecommunications service providers have called for a review of the auction process so that all of society can enjoy the benefits of 5G, without radicalized ideological positions that impede the incorporation of new communication technologies.