Brazil’s development bank, BNDES, will offer credit lines to winning bidders in next month’s 4G tender, reports BNamericas citing state-run newswire Agencia Brasil.
Operators will be able to borrow credit from BNDES specifically to build 4G…
Brazil’s development bank, BNDES, will offer credit lines to winning bidders in next month’s 4G tender, reports BNamericas citing state-run newswire Agencia Brasil.
Operators will be able to borrow credit from BNDES specifically to build 4G networks and to buy equipment from Brazilian vendors, according to the report. Credit lines will also be made available to local manufacturers looking to develop 4G technology.
Under the rules of the tender, published last month by regulator Anatel, operators that gain licences for the 2.5GHz spectrum will be obliged to equip 60% of their networks with technology manufactured in Brazil. That rate rises to 65% in 2015 and 70% for 2017 – 2022. The requirements have drawn accusations of protectionism from the US and the EU at the World Trade Organisation (WTO), but the Brazilian government has insisted the measures are in place to develop local industries and has denied they contravene WTO regulations.
Anatel’s board will judge submissions on 5 June, ahead of the auction of spectrum in the 450MHz and 2.5GHz bands on 12 June.
Telcos have previously voiced concerns over the auction with operators submitting challenges to the bidding terms earlier this month. Last month TIM Brasil said in a statement 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.
The regulator is aiming for 4G coverage over all the major centres hosting the 2014 World Cup by December 2013. Furthermore, the regulator is aiming for 4G coverage over all Brazilian municipalities with population of over 100,000 people by December 2016.
