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Brazilian regulator confirms 4G auction challenges

Connectivity BusinessbyConnectivity Business
May 14, 2012
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Brazilian regulator Anatel has confirmed that the country’s leading operators – Claro, Oi, TIM Participacoes and Vivo – and Sweden’s AINMT have submitted challenges to the terms of the bidding in the 4G tender next month.
Anatel would not…

Brazilian regulator Anatel has confirmed that the country’s leading operators – Claro, Oi, TIM Participacoes and Vivo – and Sweden’s AINMT have submitted challenges to the terms of the bidding in the 4G tender next month.

Anatel would not reveal the nature of the challenges, but confirmed that the board was still on track to judge submissions on 5 June, ahead of the auction of spectrum in the 450MHz and 2.5GHz bands on 12 June.

Local media reports have been consistent in reporting that operators are suggesting improvements to the terms of the auction, rather than challenging the auction itself.

Oi is the only one of the companies to publicly express its concerns – it has requested that Anatel provides all the names of the companies that are not going to compete for some of the lots, according to Fox News citing Spanish newswire EFE.

The challenges from the operators are the latest development in what is proving to be a controversial tendering.

Anatel is aiming for 4G coverage over all the major centres hosting the 2014 World Cup by December 2013, as well as over all Brazilian municipalities with populations of over 100,000 people by December 2016.

But telcos have previously voiced concerns over the auction. TIM Brasil said in a statement in April that, while it is not against the adoption of 4G technology in Brazil, it believes the auction is a “premature step” because 3G technology has still not reached maturity in the country.

Separately, US and European authorities criticised the requirement that at least 50% of the 4G equipment used must be manufactured in Brazil. It was reported at the beginning of the month that they threatened to report the regulator to the World Trade Organisation for taking overtly protectionist measures.

 

Tags: AINMTClaroOiTIM BrasilVivo
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