Brazil’s four largest mobile operators all acquired 4G spectrum in auctions that ended yesterday, netting BRL2.72 billion (US$1.3 billion) in total for the government.

Telefonica’s Vivo submitted the highest winning bid (BRL1.05 billion), followed by America Movil’s Claro (BRL844.5 million), TIM Brasil (BRL375 million) and Oi (BRL345 million), reports Bloomberg.

João Rezende, president of Brazilian regulator Anatel, said the results exceeded expectations, noting that Telefonica’s highest bid was two-thirds higher than the base price set.

4G spectrum was up for grabs in both the 2.5GHz and 450MHz bands, suitable for urban and rural coverage respectively. 

According to a Reuters report, the licenses came with obligations of minimum investments to provide 4G coverage in host cities for the Confederations Cup next year – considered a dress rehearsal for Brazil’s hosting of the football World Cup in 2014. There are also obligations to provide service in rural locations. 

Regional fixed-wireless spectrum was acquired by broadcast firms Sunrise (Sao Paulo) and Sky Brasil (Sao Paulo and Rio de Janeiro), enabling them to launch a rival service to the mobile operators in their respective areas.