Brazil 5G auction raises $8.5B with some lots unsold

Brazil 5G auction raises $8.5B with some lots unsold

Brazil’s authorities talked-up the success of its 5G spectrum auction, where big name operators and a handful of other parties pledged to spend a total of BRL47.2 billion ($8.5 billion) on allocations.

National licences and several regional allocations went to its three biggest existing players America Movil’s Claro, Telecom Italia’s TIM Brasil and Telefonica’s Vivo. New player Winity II also won a nationwide block in the 700MHz band, though the business is yet to confirm its intentions.

Regional or limited licences were won by Sercomtel, Brisanet, Consorcio 5G Sul, Cloud2u, Algar Telecom, Neko and Fly Link.

In a statement, regulator Anatel revealed “virtually all” lots covering the 700MHz, 2.3GHz and 3.5GHz bands were sold with most rejected allocations in the 26GHz band. It estimates the value of the unsold licences at between BRL7 billion and BRL8 billion, with those set to be offered at a later sale.

Anatel hailed the sale as the largest ever spectrum offering in Latin America, adding it was “a success from every possible perspective”.

The regulator’s competition superintendent, Abraao Balbino e Silva, said the sold frequencies were largely “ones that, in fact, have the most urgent need for the commercialisation of services”.

“We never had an auction with such economic volume involved: privatisation did not yield that, 3G did not yield that, 4G did not yield that,” he added.

By the end of the first day (4 November) of the two day sale operators had pledged to buy lots with the value of over BRL7.1 billion.


Back

Source of Article