The Brazilian government’s decision to auction spectrum in the 1800 MHz band was thought to be a shoo-in for GSM technology.
GSM technology has gained big economies of scale around the world at the 1800 MHz band. CDMA and TDMA equipment is only available at the 1900 MHz band.
But some CDMA operators are evaluating a potential play in Brazil’s 1800 MHz C-band market. CDMA technology exists in the upper 1700 MHz band in Korea, and Korean handset makers may be able to make cheap enough handsets for the Brazilian market.
“This is something we’re looking at very closely,” said Guillermo Fornaserio, director of the CDMA Development Group’s Latin American and Caribbean program. “It is possible to have 1800 MHz equipment, but some operators are more excited than others.”
In particular, Sprint PCS is said to be studying this option since it has entered the Latin American market in Mexico, making an investment in Pegaso PCS. The company declined to comment.
“We’re in the process right now in the overall corporation of looking at where we want to put our resources in terms of infrastructure and investment,” said James Fisher, a Sprint Corp. spokesman.
There are business considerations to putting CDMA technology into the 1800 MHz band. One is roaming. Just like the new GSM players that come into the market, CDMA carriers will require multiband phones that can roam at 1800 MHz, 1900 MHz and 800 MHz to compete with incumbent players’ footprints. All operators also need to identify whether they can compete with the host of A- and B- licensees that already have launched service.
“CDMA can be deployed in every frequency,” said Fornaserio. “It’s the business decisions, the needs of the market and whether it makes sense for operators that have technology deployed in that band.”
Chris Pearson, vice president of marketing with the Universal Wireless Communications Consortium, the interest group that represents TDMA operators and vendors, said TDMA operators don’t have plans for the 1800 MHz band.
“It’s certainly something that has to be driven by market demand and cooperation between operators and manufacturers even to evaluate it,” said Pearson. “The future of TDMA in Brazil is strong today and will be tomorrow. Fifteen of the 20 licensees use TDMA. We have a commanding lead.”
The C-band auction is scheduled for December. Nine new licenses are for sale. The Brazilian regulatory authority, Anatel, chose the 1800 MHz band based on issues of competition, quality and prices. GSM technology is more broadly deployed around the world, Anatel President Renato Guerreiro said in June.
Anatel’s frequency decision came after almost a year of intense lobbying and spending from proponents of both the 1900 MHz band and 1800 MHz band. The GSM Association and European vendors Nokia, Siemens and Alcatel were the most vocal proponents of the 1800 MHz band, while L.M. Ericsson, one of the largest vendors in Latin America, and North American manufacturers and carriers had fought for the 1900 MHz band.
Many incumbent operators favored the 1900 MHz band allocations, believing their investments in today’s CDMA and TDMA systems would best be protected. Incumbents are getting additional spectrum, Fornaserio said. Existing wireless, wireless local loop and mirror companies will receive five megahertz in the 1900 MHz band.
“The argument is that incumbents understand they will have more competition, and in order to be able to offer new services and compete with newcomers, they asked for additional spectrum in the 1900 MHz band,” commented Fornaserio.
