Brazil’s government anticipates a planned auction of the fifth-generation (5G) mobile spectrum to bring in over 50 billion reais ($9.35 billion) in bids, with auction regulations expected to be released by Monday, according to telecoms regulator Anatel Superintendent Abrao Balbino.
Balbino stated that the value of the companies’ estimated capital expenditures will be deducted from the bids, with capital expenditures of 40 billion reais expected. The auction winners must, among other things, offer high-speed internet to thousands of schools and establish 4G infrastructure along highways.
On Friday, Communications Minister Fabio Faria announced the auction date on Twitter. According to telecoms regulator Anatel, the auction’s full rules will be released on Monday. Anatel had postponed a decision on the guidelines on September 13 after board members requested more time for analysis. The auction was approved by Anatel’s board of directors in a special meeting on Friday, according to the ministry.
Last week, Faria stated that 5G networks will be operational in Sao Paulo and other major Brazilian cities by the end of the year and that all state capitals will have the technology by July 2022.
The 5G auction will be Anatel’s largest spectrum auction to date. For the operating licenses for four separate frequencies to be auctioned, the Brazilian government anticipates firms to spend up to 45 billion reais ($8.5 billion).