Anatel called to task over WiMAX auction delay

20 Sep 2006

Brazil’s federal accounts court, the TCU, has given the country’s telecoms regulator Anatel a further seven days to explain the errors and inconsistencies which forced it to postpone this month’s auction of spectrum for WiMAX services. The tender was scheduled to begin on 4 September. Although Anatel had received 100 preliminary bids from interested parties, the TCU ruled that an economic feasibility study carried out before the auction contained several flaws, not least in using an out of date exchange rate to set the minimum price for spectrum blocks in some regions. The Court ordered Anatel to explain the inconsistencies and submit new calculations by 18 September but has since extended this deadline to 26 September. The errors in calculation could cost Brazil USD10.6 million in lost revenues from the auction, but more importantly have reduced confidence in the WiMAX auction itself.