Brazilian regulator Anatel has auctioned off spectrum for 4G with wireless operators Claro, a subsidiary of America Movil, and Vivo, a subsidiary of Telefonica, winning the bidding for the most sought after licences.
Anatel offered four lots – two…
Brazilian regulator Anatel has auctioned off spectrum for 4G with wireless operators Claro, a subsidiary of America Movil, and Vivo, a subsidiary of Telefonica, winning the bidding for the most sought after licences.
Anatel offered four lots – two of 20+20 MHz and two of 10+10MHz – that have national coverage in the 2.5GHz tender, with each operator allowed to acquire one lot.
Carlos Slim’s Claro won the first 20+20MHz lot with a bid of R$844.5m (US$409.2m), which represented a 34% premium over the minimum price of R$630m (US$305.3m).
Bidding for the other substantial lot was fierce, with Telefonica’s Vivo eventually winning out, but at a cost: it paid R$1.05bn (US$508.7m), a premium of 66.6%, and roughly US$100m more than Claro did for an almost identical licence.
TIM Brasil and Oi had to settle for half as much capacity as their rivals, but the amounts they paid – R$340m (US$164.7m) and R$330.8m (US$160.3) respectively – only represented a small premium over the minimum set price of R$315m (US$152.6m).
Claro and Vivo will be able to offer full 4G services, while TIM and Oi will have to keep one eye on capacity when offering 4G services in populated areas.
The 2.5GHz licences acquired also include 450MHz licences with operators required to use this spectrum to offer mobile services to rural areas.
The 450MHz was to be auctioned separately but no company was interested so it was rolled into the 4G licences. This had the indirect effect of excluding pay TV companies Sky and Sunrise from the 4G auction as they were in no position to offer mobile services in rural areas.
