Mexico digitalizes TV to free spectrum for wireless

MEXICO CITY, Sept 2 (Reuters) - Mexico wants to auction more spectrum for mobile communications, including 4G standard, as it frees up capacity by digitalizing television in the country.

In a decree published in Mexico's official gazette on Thursday, President Felipe Calderon ordered to free up the 700 MHz band -- currently used by broadcasters Televisa and TV Azteca and other regional companies to transmit analog signals -- by 2012.

4G is the latest generation of wireless technology that allows for Internet-based telephony, ultra-broadband Internet access, gaming services and streamed multimedia, among others.

Currently, Carlos Slim's America Movil (AMX.N) (AMXL.MX) and rival Telefonica (TEF.MC) offer 3G services in Mexico. Televisa (TV.N) (TLVACPO.MX) and partner Nextel recently teamed to buy spectrum in a government auction to deploy a 3G network across Mexico over the next two years.

Calderon also said all analog television transmissions should migrate fully to digital standards by 2015, six years ahead of the original plan.

Calderon instructed Mexico's telecommunications watchdog Cofetel to conduct the auction for the 700 MHz band, but he gave no details about when the process may start.

During his annual address on the state of the nation on Thursday, Calderon said the government will provide help so that every Mexican can have digital boxes to access digital television. No cost or timing was provided.

TV Azteca TVAZTCACPO.MX already sells a $206 antenna and box set that transforms analog television signals into digital, higher quality images although the number of channels they offer is still limited. ($1 = 13.05 pesos) (Reporting by Cyntia Barrera Diaz)