The Federal Government held, this Thursday morning (4), in Brasília, the opening of the 5G auction. President Jair Bolsonaro participated in the ceremony, promoted by the Ministry of Communications and the National Telecommunications Agency (Anatel). The 5G Auction is the largest tender in the history of Brazilian telecommunications.
Operators Claro, Vivo and TIM won three lots
In the 3.5 GHz band, the main one in the auction, operator Claro got lot B1 by offering a bid of R$ 338 million (premium of 5.18%, a value above the minimum provided for in the notice). Lot B2 was purchased by Vivo for R$420 million (premium of 30.69%). Lot B3 stayed with TIM, which will pay R$ 351 million (premium of 9.22%). The notice also provided for a fourth batch in the 3.5 GHz band, but there was no bid.
The 700 MHz band was acquired by the company Winity II Telecom, which offered a bid of R$ 1.427 billion, an amount 805% higher than the minimum required.
For the 3.5 GHz band, of regional lots, the winners were: Brisanet (Northeast and Midwest), Sercomtel (North and State of São Paulo), 5G South Consortium (South region), in addition to Cloud2U, which will operate in the states of Rio de Janeiro, Espírito Santo and Minas Gerais and Algar Telecom, with operations planned for some locations in Minas Gerais, Mato Grosso do Sul, Goiás and São Paulo.
The right to explore the tracks will be for up to 20 years. The auction started this Thursday (4) and should end on Friday (5).
Anatel estimates that R$ 50 billion will be collected with the auction, of which R$ 40 billion are for investments and R$ 10 billion for the National Treasury.
In capitals and the Federal District, the 5G should begin to be made available by July of next year. The schedule continues with cities with more than 500 thousand inhabitants (until July 2025); more than 200 thousand inhabitants (until July 2026); more than 100,000 inhabitants (until July 2027), and in cities with more than 30,000 inhabitants (until July 2028).
This generation of mobile services can be up to 20 times faster than the previous one, have a response time up to 50 times less and an energy efficiency up to 90% higher than 4G. The technology will bring new business models, jobs and income to millions of Brazilians and boost the national domestic product (GDP) by around R$6.5 trillion over the next 20 years.
“There are almost 10,000 small towns that do not have internet and will have internet. It is information that reaches the end of the line, these people integrating with Brazil and the world”, highlighted President Jair Bolsonaro.
The auction received 15 proposals prepared by telecommunications operators and regional providers. The event will authorize the use of radio frequency in the 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz bands. “Today we deliver to Brazilian society an essential element for its future and present development: the expansion and improvement of conditions of digital connectivity from the completion of the 5G auction”, said the president of Anatel, Leonardo de Morais.
In return, the winning companies will have to invest in the expansion of fiber optic infrastructure in the Amazon region through six infovias (subfluvial cables) that will connect six cities in the region, in the expansion of coverage with internet signal to 31,500 kilometers of federal highways and to more than 9,600 locations such as towns, rural centers and towns, where mobile internet has not yet arrived. Providers will also have to structure the Federal Public Administration's private communication network and deliver television kits to low-income families from the Federal Government's Single Registry of Social Programs (CadÚnico).
“We are going to have the first 5G in Latin America and we are going to show the world that Brazil is now in the digital economy. Brazil is now taking care of the digital transformation. That Brazil is now a player and will become an innovation hub so that this great country can receive companies, investments in innovation, technology, companies that come from Asia, companies that come from Europe, that can settle in Brazil ”, highlighted the Minister of Communications, Fábio Faria.
Communications and Public Transparency