Instituto Federal de Telecomunicaciones

IFT receives the coverage and economic proposals of three bidders in the tendering process of frequencies to form two national broadcast networks

• With this begins the second stage of the bidding process, which is performed for the first time in the history of the country to allocate frequencies concessions for open television

• The bidders are: Centro de Información Nacional de Estudios Tepeyac, S.A. de C.V.; Cadena Tres I, S.A de C.V. and Grupo Radio Centro, S.A.B. de C.V.

• After performing the corresponding analysis of the submitted documentation, those receiving a certificate of participation are formally considered Participants in the procedure

In compliance with the mandate set out in Section II Eighth Transitory Article of the Decree of the Constitutional Reform in Telecommunications, on March 7^th this year, the Federal Telecommunications Institute (Instituto Federal de Telecomunucaciones, IFT) published in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF) the Call for Public Bidding the concession to use, develop and operate commercial transmission channels for the provision of broadcast digital television public service, in order to form two networks with national coverage. That day the Bidding Bases were published in the Institute website.

On September 24^th this year, and in order to adapt the tender to the provisions of the new Federal Telecommunications and Broadcasting Law, the IFT Plenary decided to modify the Bidding bases referred, which also was adjusted the schedule to reduce the time originally set.

In keeping with the established times, last November 13^th the IFT Plenary issued a favorable opinion on economic jurisdiction over applications from eight subjects concerned.

Today, having completed the prescribed period (from 18 to 20 November) for the groups which received favorable opinion on economic competition could submit the bid security and closed envelope with the Coverage and Economic Offers, IFT received such documentation, in the presence of a Notary Public Guillermo Villarreal Torres and Social Witness NGO Contraloría Ciudadana para la Rendición de Cuentas A.C. of the following companies:

• Centro de Información Nacional de Estudios Tepeyac, S.A. de C.V.

• Cadena Tres I, S.A de C.V.

• Grupo Radio Centro, S.A.B. de C.V.

Thus begins the second stage of the bidding process to assign new frequency concessions of digital broadcast television.

In accordance to the Bidding bases, between December 9^th and 11^th, the IFT may request information and/or missing documentation to the bidders. From January 13^th to 15^th of 2015, applicants must provide the information if it is required of them. This second stage of the process will conclude with notification of Certificates of Participation to be delivered between March 5^th and 9^th, to those who have met all the requirements.

The third stage involves the opening of envelopes with the Coverage and Economic Offers of the Participants, which will be held on March 11^th. The fourth stage of the process comprises the issuance of judgment and delivery of the respective concession titles. The legal settlement will be issued 19^th March at the latest.

Significantly, it is the first time in Mexico history that a bidding procedure is done to win frequency spectrum for the provision of broadcast television services. Thus, the IFT promotes greater competition in this market, for the benefit of service users.