The date of Brazil’s 700 MHz spectrum auction has been cast into doubt after the country’s government auditor suspended the sale.
The Tribunal de Contas da Uniao (TCU) has asked telecoms regulator Anatel for more information on the structure of the…
The date of Brazil’s 700 MHz spectrum auction has been cast into doubt after the country’s government auditor suspended the sale.
The Tribunal de Contas da Uniao (TCU) has asked telecoms regulator Anatel for more information on the structure of the auction and is examining the pricing of the airwaves.
Anatel has 15 days to reply.
The TCU said it was a precautionary step and that it could not disclose further details as the case was confidential.
Anatel did not immediately reply to a request for comment.
At present the 4G tender is scheduled to take place in September, ahead of Brazil’s presidential election on 5 October.
A delay could help Oi, Brazil’s smallest operator by subscribers, which is currently at risk of not being able to compete in the auction. The telco is the only one of the country’s big four operators yet to confirm that it will be bidding.
Oi’s credit rating has taken a hit after Portugal Telecom, with which it is in the process of merging, was not repaid US$1.2bn owed to it by part of the indebted Espirito Santo group. Oi has been selling off assets to improve its balance sheet but the latest debt controversy has sparked suggestions that it may not have the resources to acquire 700 MHz licences.
Anatel’s superintendent of competition, Carlos Baigorri, has said he was concerned 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 will want to break that telco up.
Telefonica’s unit Vivo, America Movil local operator Claro and Telecom Italia subsidiary TIM Brasil are all planning to bid for the frequencies.
