Brazil‘s Ministry of Communications (MiniCom) announced that it is proposing changes to bidding for broadcasting spectrumthat include an increase in deposits from bidders and lump-sum payments from winning bidders in order to avoid having economically questionable companies participate in upcoming auctions.The MiniCom’s secretary of communications for electronics, Genildo Lins, would negotiating the text directly with the Civil House. According to a statement, the proposal is to increase bid’s deposit to participate to at least 5% of the value of the spectrum. Today, the deposit is only 0.5% of the contract value.
The ministry also is working to identify and deter illegal practices.
The proposal also would change how winning companies would pay the government is paid. Currently companies pay 50% of the value when they sign contracts and the other 50% is payable after one year. Now, ministry’s idea is to have a single installment.
The measures still must be approved by the president before being consolidated into a decree.
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