Telefonica Brazil considers sale of spectrum to Sky

27 Feb 2012

Brazilian telecoms operator Telefonica Brazil is considering selling 50MHz of the 70MHz of Multichannel Multipoint Distribution Service (MMDS) spectrum it holds in the 2.5GHz band. The spectrum was acquired by Telefonica when it purchased Brazilian MMDS pay-TV operator Televisao Abril, or TVA, from Grupo Abril. Unconfirmed rumours have linked Sky TV (Brazil) as being most interested in buying the block on offer. Under the terms and conditions imposed for 2.5GHz spectrum bidding in Brazil, Telefonica would be required to either return the frequencies to the government (in return for compensation), or sell them. However, the Spanish owner is adamant it can hang on to the 20MHz of Frequency Division Duplexing (FDD) spectrum it holds through the takeover, under rules laid down by the regulator Anatel.