Anatel says cellcos must pay USD157m to compensate MMDS operators

28 May 2013

Brazil’s telecoms regulator Anatel has ruled that domestic mobile operators Oi SA, TIM Brasil, Vivo Participacoes and Telecom (Americas (Claro) will have to pay a total of USD157 million in compensation to MMDS operators for the displacement of the 2.5GHz frequencies that they will use to launch their 4G Long Term Evolution (LTE) services. NexTV LatAm Daily News reports that the main MMDS operators affected by the plan to reallocate spectrum in the 2.5GHz band are Net (backed by America Movil), Acom (Sky Brasil) and Telefonica’s Vivo-branded service. Under the compensation plan, Oi SA and TIM Brasil will each pay USD26 million for the 20MHz of bandwidth received, while Claro and Vivo will be required to pay USD51 million each – having received 40MHz of frequencies. However, in return Vivo’s MMDS unit will also receive USD44 million for the frequencies it is losing – it acquired the frequencies following the purchase of TVA – and Net will receive USD10 million. Meanwhile, Sky Brasil – part of the DirecTV Group – will receive USD33 million in compensation for the frequencies owned by Acom and TV Mais, the last named of which was acquired to develop its WiMAX project. The report also notes that a further 17 smaller MMDS operators have also been displaced, including TV Show and Viamax.