Oct. 29 (Bloomberg) -- Mexico’s government will name the winning bidders in an auction of wireless airwaves in mid-2010, almost three years later than regulators first planned, to boost competition against America Movil SAB.

The Federal Telecommunications Commission will publish the auction rules next month and probably begin the sales process this year, including qualifying the bidders, said commissioner Gonzalo Martinez Pous. The schedule calls for winners to be named in June or July, he said in an interview yesterday.

Grupo Televisa SA, which has stakes in three Mexican cable TV operators, and Telefonica SA, the second-biggest mobile-phone carrier in Mexico after America Movil, are seeking spectrum to offer wireless high-speed Internet service. The government said in October 2007 it would sell licenses within three months.

That plan was delayed as the telecommunications agency wrangled with the Communications and Transportation Ministry and the Federal Competition Commission over the auction’s rules.

The regulators have agreed on a bidding process that limits the amount of airwaves each participant can hold, leaving two sections of nationwide coverage out of reach of established carriers including America Movil and Telefonica.

Bidders will compete for a total of 120 megahertz of spectrum in the 1700 and 1900 megahertz bands, which can be used for third-generation, or 3G, wireless networks. The two nationwide blocks of spectrum each contain 30 megahertz, and regulators are limiting each participant to 80 megahertz total in the 800, 1700 and 1900 megahertz bands, including airwaves they already own.

Ineligible

America Movil, based in Mexico City, has more than 50 megahertz in four of Mexico’s nine wireless regions, making it ineligible for the 30-megahertz nationwide block, according to data from the competition commission. Madrid-based Telefonica has more than 50 megahertz in only one region, which would also render it ineligible for the national swath of spectrum.

Axtel SAB, Mexico’s second-biggest land-line phone company, may seek an international partner to assist with a bid for airwaves, Chief Financial Officer Felipe Canales said yesterday on a conference call.

Megacable Holdings SAB, Mexico’s biggest cable-TV company, is also considering a bid with a partner, Chief Executive Officer Enrique Yamuni said this week on a conference call. NII Holdings Inc., which owns Mexico’s fourth-largest wireless carrier, also said it’s considering a bid.

America Movil rose 37 centavos, or 1.3 percent, to 29.80 pesos today in Mexico City trading. Televisa gained 60 centavos to 53 pesos. Telefonica climbed 18 cents to 19.19 euros in Madrid trading.

To contact the reporter on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net

Last Updated: October 29, 2009 17:21 EDT