The process to auction Brazil’s 700 MHz spectrum has reportedly recommenced after the government auditor, the Tribunal de Contas da Uniao (TCU), approved the terms of the tender.
Earlier this month the TCU halted the process to sell the 4G-suitable…
The process to auction Brazil’s 700 MHz spectrum has reportedly recommenced after the government auditor, the Tribunal de Contas da Uniao (TCU), approved the terms of the tender.
Earlier this month the TCU halted the process to sell the 4G-suitable frequencies and asked telecoms regulator Anatel for more information on the structure of the auction and the pricing of the airwaves.
The 4G tender was expected to take place in September, ahead of Brazil’s presidential election on 5 October, but it is not clear whether this timeframe is still viable.
According to local reports, Brazil’s government is hoping to raise at least US$3.5bn from the auction and has said state development bank BNDES will provide bidders with financing.
Telefonica’s unit Vivo, America Movil local operator Claro and Telecom Italia subsidiary TIM Brasil are all planning to bid for the frequencies. Brazil’s fourth and final nationwide mobile network operator, Oi, is yet to confirm that it will participate.
Anatel’s superintendent of competition, Carlos Baigorri, has previously expressed concerns that Oi may not be able to raise the funds to acquire spectrum in the sale.
Baigorri also commented that if an operator cannot afford to participate in the tender then the market is likely to want to break that telco up.
