Economy

Brazil sets its huge 5G mobile auction for November 4, says Communications Minister Fabio Faria

The country's auction of the fifth-generation (5G) mobile spectrum is likely to be the largest in the world

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On Twitter, Communications Minister Fabio Faria said this Friday (24) afternoon that Brazil‘s auction of the fifth-generation (5G) mobile spectrum is set to happen on November 4. Anatel, the agency that regulates the sector in the country, approved the rules for the auction of four frequencies today.

Large Brazillian cities are expected to have 5G networks working between the end of this year and the first half of 2022.

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As LABS has shown, the auction is likely to be the largest ever managed by Anatel, and also the largest when it comes to 5G frequencies in the world.

With the approved modifications, the economic value of the auction could reach BRL 49 billion ($9.1 billion) in total, while the investment expectation over the granting periods (which range, depending on frequency, from 2022 to 2029) can reach BRL 163 billion ($30.5 billion).

The auction includes the bidding modeling for the 700 MHz, 2.3 GHz, 3.5 GHz, and 26 GHz bands and the list of locations and cities eligible for 5G commitments in the country, among other rules.

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5G technology needs a mixed spectrum of low, medium, and high bands to serve a variety of uses (connections and services), ranging from improved mobile broadband (eMBB) to Internet of Things (IoT) applications in the industry and the management of cities, for example. The higher bands usually perform better in terms of speed, but the sub-6GHz bands are more appropriate for expanding coverage–something crucial in a country with more than 5,000 cities.

Initially set to take place at the end of 2020, the auction was postponed due to the COVID-19 pandemic.

According to Leonardo Morais, Anatel’s president, the document with the rules for the auction will be published next Monday (27th).

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