5G Public Auction In Brazil

• Published date: 25 June 2020
• Subject Matter: Media, Telecoms, IT, Entertainment, Mobile & Cable Communications, Broadcasting: Film, TV & Radio
• Law Firm: Tauil & Chequer
• Author: Mr Carlos Motta, Bruno D. Werneck, Bruno Salzano and M'rio Saadi

The public auction of the fifth generation (5G) mobile network in Brazil will be carried out by the National Telecommunications Agency ("ANATEL"), the governmental entity that holds jurisdiction over the implementation, regulation and operation of telecommunication networks and services in Brazil.

The purpose of the auction is to grant licenses for the use of radio frequencies that support the provision of telecommunication services through 5G networks. The draft of the auction notice that was made available by ANATEL in February 2020 for public consultation (Public Consultation No. 09/2020) indicates that licenses will encompass four main frequency bands, as follows:

(i) 700 MHz band: Comprised of two national lots, ranked as primary and secondary, the latter being directed to municipalities of up to 100,000 inhabitants in the relevant coverage areas. This license will be valid until December 2029 (as opposed to the others, which are subject to a 20-year term), renewable upon payment or assumption of additional obligations. This band is typically associated with 4G technology networks;

(ii) 2,300 to 2,350 MHz band: 20-year term license, renewable upon payment or assumption of additional obligations. This band is widely compatible with mobile services and 4G technology networks. Conversion of this band to 5G is considered possible within the medium-to-long term;

(iii) 3,300 to 3,700 MHz band: 20-year term license, renewable upon payment or assumption of additional obligations. One regional lot will be directed to small providers and new entrants only. This band is the most compatible with 5G technology networks, thus enabling its immediate utilization; an

(iv) 24.3 to 27.5 GHz band: 20-year term license, renewable upon payment or assumption of additional obligations. This band supports 5G applications with low latency, high speed and limited coverage.

The licenses will be conditional on coverage or transport network implementation commitments by the winning bidders. Commitments may include, depending on the frequency band, making 4G or 5G voice and data available in locations not covered by such technologies; making 4G voice and data available on federal highways not covered by such technology; implementation of an optical fiber backbone or backhaul that enables connection from at least one point in the central district of municipalities not covered by such technology to an Internet Exchange Point (IXP) that meets the requirements defined in ANATEL's...