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Brazilian carriers buy frequency band leftovers for $132.7 million

At an auction of frequency band leftovers held by Brazilian telecom regulator Anatel on Dec. 6, carriers offered US $132.7 million (R$237.5 million) for 15 lots of frequency sub-bands used for the provision of personal mobile services. The average premium of the bid was 0.69%.

Anatel bid 54 lots of frequency bands, of which 39 were not auctioned, including 29 designated for WiMAX. There were no disputes over any of the 15 lots sold.

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With the bid, the Anatel aimed to provide additional radio frequency to improve the infrastructure of mobile networks, which is experiencing growing demand for voice traffic and especially data, requiring the use of more spectrum.

TIM was the one to purchased more lot: a total of nine — 34, 35, 36, 37, 38, 39, 40, 41 and 43 — of the extension sub-bands in frequency from 1,700 to 1,800 MHz with bandwidth of 2.5 MHz plus 2.5 MHz. Together, TIM payed about U.S. $61.5 million (R$110 million). Carrier said that will use the new bands to continue its strategy of development of the network in these regions.

Brazil’s Oi took lots 44 and 45 of the extension sub-bands in frequency from 1,700MHz to 1,800 MHz with bandwidth of 2.5 MHz plus 2.5 MHz, serving municipalities in the states of Acre, Goias, Mato Grosso, Mato Grosso do Sul, Rondonia, Tocantins, Federal District and Rio Grande do Sul. Carrier also bought lots 49 and 51, the sub-band frequency extension from 1,700 MHz to 1,800 MHz with bandwidth of 5 MHz plus 5 MHz. At total, Oi spent U.S. $61.73 million (R$110.5 million) in the auction.
Américas Móvil’s Claro bought lot 1 because the carrier was the only tenderer to provide guarantees for the sub-band A (800 MHz), with bandwidth of 12.5 MHz plus 12.5 MHz to serve municipalities in the states of Amazonas, Amapá, Pará, Maranhão and Roraima. The amount offered for the lot was U.S. $8.1 million (R$14.5 million).

Sercomtel bought lot 53 sub-band extension in frequency from 1,700 MHz to 1,800 MHz with bandwidth of 5 MHz plus 5 MHz, serving 43 municipalities. The operator paid the minimum price of U.S. $1.67 million (R$3 million).

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