Business

Brazil to reschedule auction for unsold 5G spectrum, says Communications Minister Fabio Faria

According to Brazilian telecom regulator Anatel, the sale raised a total of BRL 46.79 billion ($8.44 billion) including future capital expenditure commitments

Brazil 5G auction — Brazil's Communications Minister Fabio Faria arrives at a news conference after the opening ceremony to 5G auction in Brasilia, Brazil, November 4, 2021. Photo: REUTERS/Ueslei Marcelino

Reuters

06.Nov.2021 10:21 BRT
UPDATED 10:36 BRT

Brazilian Communications Minister Fabio Faria said on Friday that the government may schedule a new 5G spectrum auction to sell batches that did not attract interest, mainly in the 26 GHZ frequency.

Brazil telecom regulator Anatel concluded an auction on Friday with Faria saying in a news conference that the sale raised a total of BRL 46.79 billion ($8.44 billion) including future capital expenditure commitments, making it the largest auction of telecom assets to date in Latin America.

Telecom Italia, Telefonica and America Movil won most of the spectrum rights through their Brazilian subsidiaries in the final part of the auction on Friday, but local rival Algar Telecom also secured some.

Speaking to reporters in Brasilia, Faria said the government considered the auction successful, as the total value for the sold lots was around BRL 5 billion above minimum prices. The country now has six new telecom operators to compete with the larger companies, the minister added.

The minister and Anatel official Abraao Albino said the 26GHZ spectrum did not attract interest due to uncertainties in the business model. The government will consider a new auction to offer the unsold batches.