Brazilian telecoms agency approves 5G auction notice

The initial cost to operators is estimated at US$ 6.2 billion
Written by Angelica Mari, Contributing Writer

Brazilian national telecommunications agency Anatel has approved the notice for the upcoming auction for the fifth generation spectrum, expected to take place in June.

The announcement was made yesterday (25) by the agency's board, which has also decided on the mandatory adoption of standalone 5G, which will require the implementation of a network independent from the current 4G set-up. The notice will now be analysed by the Federal Court of Auditors.

The agency estimates the initial cost to telcos will reach 35 billion reais (US$ 6.2 billion) to use the 3,5 GHz frequency bands. Companies will also need to invest an additional 80 billion reais (US$ 14 billion) on 5G through the next two decades.

According to Anatel, the expectation is that 5G technology will be available in all Brazilian capitals until July 2022. The country's 5G auction was originally set to be held in March 2020, but it was delayed due to the Covid-19 pandemic.

The announcement follows the conclusion of the Brazilian government's global tour focused on 5G technologies earlier this month. The trip was intended by the Communications ministry and the Federal Court of Auditors as a means to learn more about the the fifth-generation technologies in development at the main global hubs and speed up the proceedings around the upcoming auction.

The ministerial tour covered Sweden, Finland, Japan and China. The ministerial tour followed a series of guidelines and obligations for telcos regarding the auction, released late January by the federal government. Among the requirements is a private network exclusive for government use, to be built by the successful bidders.

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