Brazilian telecoms regulator Anatel has scheduled the country’s auction of 700 MHz spectrum for 30 September.
It has set reserve prices to raise a minimum of R$7.7bn (US$3.4bn) from the sales of the nationwide licences. Operators will also be required…
Brazilian telecoms regulator Anatel has scheduled the country’s auction of 700 MHz spectrum for 30 September.
It has set reserve prices to raise a minimum of R$7.7bn (US$3.4bn) from the sales of the nationwide licences. Operators will also be required to pay R$3.6bn (US$1.6bn) to remove television broadcasters that are currently using the spectrum.
Telcos will only have to pay 10% of their bids upfront. The remainder can be paid over a six-year period which can start as late as 2017, although the amount they owe will rise with inflation.
It has previously been reported that state development bank BNDES will provide bidders with financing.
There is the opportunity for four operators to acquire nationwide 700 MHz footprints. Each set of licences carries a R$1.93bn (US$849m) reserve price and will require a further R$903m (US$396m) to relocate broadcasters.
The auction process was allowed to restart on Wednesday after Brazil’s government auditor approved the terms outlined above. It had halted the tender earlier in August to review the terms. In spite of the delay, the auction will still be able to take place before Brazil’s presidential election which will be held on 5 October.
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.
