Economy

Court decision set to delay Brazil’s 5G auction even further

Brazil's government had hoped to carry out its landmark 5G auction this month, but further delays are expected as the Federal Accounts Court analyzes a proposal to include government programs in the bid notice

President Jair Bolsonaro presents project to take 5G connections to rural properties. Photo: Alan Santos/PR
President Jair Bolsonaro presents project to take 5G connections to rural properties. Photo: Alan Santos/PR

For the last two years, Brazil has been “a few months” away from its landmark auction of 5G frequencies. According to the government’s forecasts, the much-awaited sale should take place later in July — but it is likely to suffer further delays, and the first step toward Brazil’s 5G implementation will once again be “a few months” away.

As things stand, the Federal Accounts Court (TCU) is analyzing the 5G bidding notice but has yet to publish its final report. The TCU is currently assessing a proposal from the Bolsonaro administration by which proceeds from the auction would be used to fund government programs.

Brazil’s telecom regulator Anatel approved the proposal in February, foreseeing that the winning bidder for the much sought-after 3.5 GHz frequency band will have to carry out two projects linked to government programs. One is the Integrated and Sustainable Amazon Program, involving the installation of 10,000 kilometers of fiber-optic cable to improve internet connectivity in 59 northern Brazilian municipalities. Factoring in costs of network integration, operation, and maintenance, the project has been budgeted at BRL 905 million (USD 175 million).

The second program foreseen in the bid notice has been more widely explored by the Brazilian press, consisting of the installation of a private 5G network to...

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