5G could provide a $117B boost to the Brazilian economy by 2032

But measures such as tax incentives need to be introduced and issues including lack of skills must be tackled, according to a Deloitte study.
Written by Angelica Mari, Contributing Writer

Demand for solutions based on 5G could potentially provide a $117 billion boost to the Brazilian economy, according to a study by consulting firm Deloitte, presented by the country's Ministry of Economy.

In addition, the implementation of 5G could generate $20 billion in business for companies and startups based in Brazil over the next decade. This includes the productivity increases and cost reductions stemming from the Industry 4.0 approach.

A set of 96 recommendations for public policies across eight different areas aimed at unlocking the opportunities, is also included in the study. This includes the creation of special economic zones focused on 5G, as well as tax relief for the purchase of equipment to support the fifth-generation technology, and tax benefits for multinationals investing in 5G in Brazil. 

The issues facing the 5G ecosystem in Brazil are also outlined in the Deloitte report, which included input from the United Nations Development Program (UNDP). Problems identified in the research included the lack of skills in areas such as software development, as well as insufficient environments for the emulation of 5G and testing.

Brazil held its 5G auction in November 2021. Contracts authorizing operators to start building the 5G networks were signed in the following month. The roll-out is supported by a pledge from telecommunications companies to invest 42 billion reais ($7.5 billion) to introduce the technology across the country.

According to the rules set out by Brazilian telecommunications regulator Anatel, the implementation schedule will see 5G becoming available across Brazilian capitals by July 31, 2022. However, larger cities, including São Paulo, already have the fifth-generation mobile spectrum.

Brazilian cities with more than 500,000 inhabitants will see 5G rolled until July 31, 2025, while the deadline for locations with more than 200,000 inhabitants is July 31, 2026. Cities with more than 100,000 inhabitants will have 5G by July 31, 2027, and the service will be available in locations with more than 30,000 inhabitants by July 31, 2028.

According to research by analyst firm IDC, the IT and telecommunications sector in Brazil is poised to grow 8.2% in 2022. The predicted growth in the sector should be driven by factors such as the ramifications of the 5G rollout.

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