Anatel to kick off 4G auction on 30 September; strips Sercomtel of 1800MHz spectrum

22 Aug 2014

Brazil’s telecoms watchdog Agencia Nacional de Telecomunicacoes (Anatel) will hold its much anticipated auction of 4G-suitable spectrum on 30 September and hopes to raise more than BRL8 billion (USD3.5 billion) through the sale, The Wall Street Journal reports. In total, the auction is expected to cost telecoms operators more than BRL11.86 billion as, alongside the expected BRL8.26 billion the government will get from spectrum licences, the winners will also have to pay around BRL3.60 billion to compensate TV broadcasters which are currently using the spectrum.

Interested parties must submit the necessary documentation by 23 September, Anatel said, with all the country’s main players – Telefonica Brasil (Vivo), Telecom Italia-back TIM Brasil, America Movil’s Claro (Brasil) unit and locally owned Oi SA – all expected to bid.

In a related development, Anatel has reportedly declined regional operator Sercomtel’s bid to extend its certificates of tax compliance (a prerequisite for the acquisition of frequency Lot 54) for a further 120-day period, Teletime reports. The watchdog’s decision to effectively strip Sercomtel of its spectrum means it does not have the rights to use the 1,865MHz-1,870MHz frequencies it purchased in 2011. The paper says that the frequencies will be now be re-auctioned.