Brazil dithering on auction model for 5G spectrum

In Brazil’s telecom sector, all eyes are firmly fixed on the country’s auction of the right to use the groundbreaking 5G spectrum. However, while originally slated to take place in 2020, the tender for the advanced wireless technology is set to be delayed until 2021, in a best-case scenario. 

The postponement is on course to run Brazil a BRL 20 billion loss in tax revenue until 2025, according to a study by Swedish telecoms company Ericsson. The same figure has been bandied about by the press, but in relation to investments in the sector. If both are accurate, the country could lose up to BRL 40 billion just by delaying the 5G auction for another year.

All this because Brazil’s telecoms agency Anatel has yet to decide on the model to be used for the public tender.

The process of studying and drafting the request for proposals to be used in the tender has been under discussion since the beginning of 2019, and the most optimistic forecasts predicted that the auction would take place in March of next year. However, at Anatel’s final meeting of 2019, held this Thursday, no consensus was reached. Thus, the discussion should...