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Latino Daily News

Friday August 22, 2014

Brazil Seeks to Raise At Least $5.36 Billion in 4G License Auction

Brazil Seeks to Raise At Least $5.36 Billion in 4G License Auction

Photo: 4G in Brazil

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Brazil’s government expects to raise at least 11.8 billion reais ($5.36 billion) in a Sept. 30 auction of six fourth-generation (4G) wireless licenses.

The Anatel telecommunications regulator published the auction terms Thursday in the official gazette, establishing the minimum bid required to compete for each of the licenses.

The winners will be authorized to offer 4G mobile telephony - featuring high-speed Internet access - on the 700 MHz frequency band, currently used by analog TV operators that must make the transition to digital technology.

The winners of licenses to operate in the 700 MHz frequency range will need fewer antennas to offer the same coverage as Brazil’s existing 4G wireless providers, which use the 2.5 GHz band.

This new spectrum band will lower the operating costs of providing mobile telephony and broadband Internet in Brazil, according to Anatel.

Three of the licenses will give operators the right to offer service nationwide.

The other three encompass smaller coverage areas: one that only excludes some municipalities in the states of Parana, Minas Gerais, Goias and Sao Paulo, and two covering small areas currently serviced by local operators CTBC and Sercomtel.

Bidding for the nationwide licenses starts at 1.92 billion reais ($872.7 million).

In addition to their individual bids, the auction winners must pay a combined total of 3.6 billion reais ($1.64 billion) to fund the cost of freeing up a frequency band currently used for analog TV transmission.

Interested companies must submit their bids and all required documentation on Sept. 23.

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