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Anatel rejects PCS services at 1.9 GHz

BRASILIA, Brazil-Brazilian regulator Anatel has thwarted the plans of wireless local loop provider Vesper to offer mobile services in Brazil’s 1.9 GHz spectrum. Anatel this week formally refused a request by Vesper, which is backed by U.S.-based Qualcomm, to deploy PCS services in the 1.9 GHz band.

The decision follows intense lobbying by the CDMA Development Group in favor of allowing 1.9 GHz frequencies to be used for PCS services and from the GSM Association, which sent a delegation to Brazil to discuss the matter last month and is against mobile services use in the 1.9 GHz band.

Brazilian regulator Anatel originally established that 1.8 GHz licenses that were auctioned in 2001 and 2002 would be used for PCS services, while the 1.9 GHz band would be reserved for third-generation services. Because the PCS licenses are at 1.8 GHz, most Brazilian PCS operators have chosen GSM technology for their network buildouts.

However, two CDMA-based WLL operators, Vesper and Brasil Telecom, purchased 1.8 GHz licenses in the most recent auction. They had requested the government allow them to use the 1.9 GHz spectrum they currently use for WLL services to offer mobile services as well.

Earlier this month, Vesper President Luiz Kaufmann said that if Anatel did not allow Vesper to use the 1.9 GHz band to operate PCS, the carrier would ask for compensation to leave the part of the 1.9 GHz spectrum reserved for 3G services. The carrier estimated it will spend US$100 million to leave the frequencies.

Anatel did not address operator compensation in its statement about the decision.

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