Brazil’s government is planning to start an auction for selling the 5G mobile spectrum on Nov. 4, and targeting to raise around 10 billion reais ($1.87 billion) based on the minimum bids.
Brazil has one of the largest mobile markets in Latin America with around 213.7 million subscriptions as of March 2021. Telefonica Brasil’s Vivo as well as America Movil’s Claro are the leading mobile service providers in the country. Vivo has the largest share of the fibre market, followed by Oi and Claro.
The winning bidders will be required to invest about 40 billion reais in building 5G infrastructure in Brazil, the government predicts, with the level of capital expenditures also considered as part of the bid value.
Among the obligations for auction winners, they must bring high-speed internet powered by 5G mobile to thousands of schools along roadways.
Communications Minister Fabio Faria announced the date of the auction on Friday on Twitter. Full rules for the 5G mobile spectrum auction are expected to be published on Monday, according to telecoms regulator Anatel.
Anatel had put off a decision on the rules on Sept. 13 with board members at the regulator requesting further time for analysis. Anatel’s board approved the auction in an extraordinary meeting on Friday, the minister said.
Last week, Faria said Sao Paulo and other large Brazilian cities will have 5G networks working by the end of the year and all state capitals will have the technology by July 2022.
The 5G auction will be the largest spectrum auction ever managed by Anatel. The Brazilian government expects companies to pay up to 45 billion reais ($8.5 billion) for the operating licenses for four different frequencies to be auctioned.
Brazil’s government expects to attract some 50 billion reais ($9.35 billion) in bids from a planned auction of 5G spectrum, with auction rules to be issued by Monday, telecoms regulator Anatel Superintendent Abraão Balbino said on Friday.
Balbino said that the value of the projected capital expenditures made by the companies will be discounted from the bids, with 40 billion reais in capital expenditures expected.