Brazil aims to raise $3B through 4G auction

Brazil aims to raise more than $3B through 4G auction

22 AUG 2014

Plans for an auction of spectrum suitable for 4G services have been unveiled by Brazilian telecoms regulator Anatel, which aims to raise more than $3 billion through the process, as detailed by Reuters.

The auction of the 700MHz spectrum is scheduled for 30 September, according to an Anatel statement, and will raise a minimum of BRL7.71 billion ($3.43 billion).

Three nationwide slots will be auctioned, each of which will require a minimum bid of BRL1.927 billion to secure. There is a fourth spectrum slot that excludes regions covered by local operators CTBC and Sercomtel, which has a slightly lower minimum price of BRL1.893 billion.

CTBC needs to pay BRL29.6 million to secure the same spectrum in its coverage area, while Sercomtel will need to pay BRL5.3 million.

The winners of the spectrum will be responsible for resolving interference issues relating to signals operating in the frequency band, which is estimated to require BRL3.6 billion of investment.

Brazil’s four national operators, Vivo (Telefonica), Claro (America Movil), TIM Participacoes (Telecom Italia) and Oi all secured licences to operate 4G services on 2.5GHz spectrum in 2012, raising BRL2.56 billion in the process.

According to GSMA Intelligence figures, Vivo has made the greatest headway in terms of 4G connections, having 1.28 million at the end of the second quarter of 2014.

The proceeds of the auction will go towards achieving the pledge by the country’s president Dilma Rousseff of saving at least BRL99 billion in primary surplus (the public sector’s excess revenue over expenditure) in 2014, equivalent to 1.9 per cent of the national GDP.

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Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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