Brazil’s BNDES will finance national technology for 4G

22 May 2012

Brazilian development bank Banco Nacional de Desenvolvimento Economico e Social (BNDES) will provide credit lines to help with the financing of 4G networks in the country, says communications minister Paulo Bernardo. The minister met with BNDES president Luciano Coutinho on 17 May to address funding issues for the domestic industry. ‘We are demanding local content, many companies will surely have an interest in settling or expanding here, and we need funding for the industry,’ Bernardo is quoted as saying. Under the terms of the country’s 4G auction rules – as approved by Anatel last month –companies winning 4G frequency spectrum in the auction should ensure that by 2014 60% of the equipment used on their networks in manufactured in the country, rising to 65% by 2016 and 70% between 2017 and 2022. The government’s provision to include a domestic content requirement in the process has, was questioned by the US and European Union at the World Trade Organization (WTO) recently, although the Brazilian government says it will not change the 4G auction rules and has sent formal responses to the foreign ministries involved.