Good morning! Today: After hiccups, Brazil plans 5G auction for October. The Brazilian stock market paradox. Vaccine regulations and pandemic recovery.
5G auction stalled by accounts court
The Federal Accounts Court (a sort of audit tribunal which monitors public spending) was expected to approve on Wednesday the government’s 5G bidding notice. However, one of its members asked for an extra week to analyze the government’s proposal, essentially paralyzing proceedings.
Controversy. The accounts court’s technical body advised members to vote against the government, claiming that two proposals go against Brazil’s current regulations:
- One would guarantee around USD 175 million in investments to install 10,000 kilometers of fiber-optic cable in 59 northern Brazilian municipalities.
- The other would create a standalone 5G network for public institutions and federal and local governments.
Why it matters. Chinese telecom behemoth Huawei is accused of creating backdoors that allow Beijing to spy on other countries. The idea of a siloed governmental network is a way to allow Chinese behemoth Huawei into the 5G mix, while minimizing the risks of data theft.
- Brazil has been pressured by the U.S. to ban Huawei, but doing so would create a massive rift between the country and its main trading...