Anatel seeks compensation plan for MMDS operators to release the 2.5GHz band

15 Jul 2010

Brazil’s telecoms watchdog Anatel is understood to be holding talks with the country’s Multichannel Multipoint Distribution Service (MMDS) operators to find a solution to allow the release of the 2.5GHz spectrum and to avoid possible litigation in the future. People familiar with the situation say the regulator is proposing a form of indemnity or compensation scheme for MMDS operators which currently hold the frequencies in question. The compensation would be paid out of future revenues of the successful winners of the spectrum – once it is reallocated for broadband wireless services – or as part of the spectrum auction price itself. Anatel is also considering licensing existing MMDS operators to move into the higher frequency bands, at around 25GHz and 35GHz, as part of the stimulus package to evacuate the 2.5GHz spectrum band.