Monday, 23 January 2017

Mexico mulls countersuit against Rivada

By Nick Wood, Total Telecom
Monday 28 November 16

SCT may take action against company's comments about shared mobile network tender.

The Mexican government is considering filing a countersuit against Rivada Networks, the company disqualified from bidding for the country's shared mobile network tender. In a report last week by El Economista…

The Mexican government is considering filing a countersuit against Rivada Networks, the company disqualified from bidding for the country's shared mobile network tender.

In a report last week by El Economista, Gerardo Ruiz Esparza, head of the Secretaría de Comunicaciones y Transportes (SCT), said Rivada's comments about the process have no basis in reality.

He insisted that the only scandal would have been to accept Rivada's bid.

Earlier in November, the SCT awarded a 20-year licence to build and operate a nationwide wholesale network to Altan, a consortium led by funds owned by Morgan Stanley, the World Bank, and Spanish businessman Eugenio Galdon.

Altan ended up as the sole bidder, after Rivada was disqualified for failing to provide financial guarantees when it submitted its bid. Rivada claims that it met every requirement of the tender, and plans to challenge its disqualification in court.

Throughout the process, the SCT has maintained that it has been carried out transparently, and according to the El Economista report, the ministry is considering whether it can take legal action in light of Rivada's comments.

In a statement issued on Sunday in Spanish, Rivada Networks elaborated on its legal challenge, highlighting sections of Mexican law and the tender process rules to support its claim that it was wrong for Rivada's bid to have been disqualified, and that it was incumbent upon the SCT to consider more than one proposal.

Rivada said it will not withdraw its legal challenge in light of the possibility of a countersuit from the SCT.

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