Specialists call for calm in Brazil’s 5G auction

At the beginning of February, Brazil’s telecom regulator Anatel took the first step toward the much-awaited 5G auction in the country, by approving the bidding proposal for the high-speed mobile communications frequencies.

According to the chosen proposal, the auction will include the 700 MHz, 2.3 GHz, 3.5 GHz, and 26 GHz frequency bands. With regards to the 3.5 GHz band—the most commonly used for 5G frequencies—the total bandwidth was increased from 300 MHz to 400 MHz, which could make Brazil’s 5G spectrum auction the largest in the world.

The bidding will also dedicate some frequency bands for the nationwide operation of 5G, and others for regional operation. The much sought after 3.5 GHz band will be auctioned off in blocks, combining profitable areas such as the state of São Paulo with less attractive regions, as is the case of Brazil’s northern states.

For the 700 MHz, 2.3 GHz, and 3.5 GHz bands, the Anatel bidding notice includes compensation for companies that supply coverage in cities which do not yet have 4G, or for the installation of infrastructure for fiber optic internet.

One of the major changes in the auction will be the preferential treatment given to small companies and those without a presence in Brazil for the assignment of the 3.5 GHz frequency band. This bidding notice has not been finalized yet, however, and will undergo a 45-day public consultation period before it may be definitively ratified.

Good things come to those who wait

The 5G auction was initially scheduled to take place in the first quarter of 2020, but the government is already...