The LTE implementation in Brazil has been at the heart of several telecom market discussions, since Brazilian telecom agency Anatel might put the 450 MHz and 2.5 GHz frequency spectrum bands out to bid in June – eyeing LTE deployment in the country. The consulting firm Pyramid released a statement predicting that Brazil will have more than 18 million LTE users by the end of 2015 despite some operators’ skepticism on the country’s preparedness.
This week TIM released a statement warning of risks of what the telecom operator calls “a premature initiative.” According to the statement, the bidding documents have some issues that could affect competitiveness among potential participants. The carrier listed the spectrum’s occupation by the same corporate group as one of the problems.
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According to TIM, the issue must be debated urgently since the auction is expected to be held in June, according to the regulatory agency. “The balance of spectrum use is a principle that has made Brazil one of the most competitive markets in the world. There will be a risk of cannibalization if the carriers’ obligation to waive rights to the spectrum in advance when they have the right to use MMDS is not taken into account,” said Mario Girasole, director of regulatory affairs at TIM Brazil.
Pyramid’s Vinicius Caetano noted that some operators are concerned that Brazil is not ready for the leap into LTE since 3G hasn’t reached its maturity yet and LTE itself is still in its infancy around the world. However, the senior analyst said that Anatel wants Brazil to have its LTE network in place and working seamlessly for the 2014 FIFA world cup, enabling the country to be a leader in this technology.
Caetano also noted that while the market might not look ready, Brazil is definitely a fertile ground for LTE to grow, considering LTE smartphones and tablets are reaching larger scales and data usage is growing more than ever in the country.
In a recent interview with RCR Wireless News, Wilson Cardoso, head of technology for Latin America at Nokia Siemens Network, said that the company forecasts there will be 12 million LTE users in Brazil over the next few years. “There’s the possibility to replace 3G investments with LTE investments in small cities, and we believe telecom operators may seek a better use of the spectrum acquired and change 3G Capex into LTE,” he said.
