Brazil’s plans to auction radio frequencies in the 450 MHz and 2.5 GHz band has again been pushed back from the end of April until at least June. Brazil’s telecom regulatory agency Anatel, confirmed to RCR Wireless News that bidding documents must be submitted by April, 30, and that the bidding would begin 45 days later.
The auction will include frequency in the 451 MHz to 458 MHz band; 461 MHz to 468 MHz band and 2.5 GHz to 2690 MHz band. That spectrum is expected to be used to expand access to LTE-based services. The auction’s framework has been under public consultation since Anatel’s board of directors approved the draft last January.
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“I hope that this delay serves for Anatel to review some rules, such as bidding together 2.5 GHz with 450 MHz frequency bands,” noted Marceli Passoni, senior research analyst at Informa. “It’s too aggressive to tender both together, since there are others ways to bring connectivity to rural areas. Besides, when carriers have bought 3G frequency bands they already have the obligation to extend 3G network to remote areas.”
“Delays could show some uncertainties regarding 450 MHz band and others adjacent themes like having a minimum quota of ‘national technology,'” added Luis Minoru, consultant director at PromonLogicalis. “This ends up resulting in attempts to influence by interested companies – both for and against – generating long discussions.”
During the public consultation period, telecom operators came out against the imposition of domestic technology, against the imposition of too stringent commitments and in favor of decoupling bands 450 MHz and 2.5 GHz, noted Renato Pasquini, industry analyst for Latin America at Frost & Sullivan.
“They are in favor for the allocation of the 700 MHz band for SMP,” Pasquini explained. “I believe all of these points have economic sense, considering that operators are looking to rationalize investments in a capital intensive industry and short cycles. For instance, the 3G networking is still expanding.”
However, the government has already shown interests in keeping the 2.5 GHz licenses tied to the 450 MHz licenses up for bid. Regarding the 700 MHz band, it is currently occupied by analog television. According to a study released by GSMA and AHCIET, the allocation of “digital dividend” spectrum in the 700 MHz band for the deployment of mobile services could contribute almost $15 billion to the Latin American economy and would expand mobile broadband coverage to nearly 93% of the population.
The auction delay could also impact the ability to have LTE networks ready to address demand for major sporting events to be held in Brazil, including the 2013 World Cup Confederations; 2014 World Cup and 2016 Olympic Games.
