3G auction update

20 Dec 2007

Vivo Participacoes, Telecom Americas (Claro), Brasil Telecom (BrT GSM) and TIM Brasil have each won 3G mobile licences for lot II in day two of the Brazilian mobile spectrum auction. The licences sold cover some the more prosperous southern states of the country and the federal district of Brazil. Anatel said that TIM Brasil paid BRL382 million (USD211 million) for its licence, 68% more than the minimum asking price. With bidding on lot II now completed, the auction moves on to lots III and iV, which include the key Sao Paulo Metropolitan area, where Anatel is bundling the potentially lucrative 3G licences in with spectrum covering poorer, sparsely populated states, mainly in the Amazon Basin. The move is part of the watchdog’s effort to ensure licence winners provide nationwide coverage of UMTS services.