Newsletter Telecom

APPROVAL OF THE BID TENDER BY ANATEL

The February 25th, 2021 Board of Directors´ Meeting of the Brazilian Telecommunications Agency – ANATEL has approved, by majority of votes, the final version of the bid tender proposal relating to the 700MHz, 2.3GHz, 3.5GHz and 26GHz frequencies dedicated to 5G (“5G Bid Tender”) (“Bid Tender”) (“Meeting”).

The approved Bid Tender has largely maintained the wording discussed in the board´s prior meeting, with the following main additional adjustments: (i) the deadline for the implementation of the “Release 16” technology standard was accelerated for large cities and extended for small cities; (ii) the use of the 26GHz frequency was authorized for the Multimedia Communication Service – SCM modality (fixed broadband service); and (iii) the 700MHz lots that are left outstanding after the bid´s first round will be regionalized in the second round.

Authorization Term – As a general rule, the Bid Tender bands will be granted to the winners for a 20 year-term. Term extensions may be granted for consideration and in specific cases.

Estimated Bid Price – ANATEL estimates that the 5G Bid Tender total price may reach R$35.000.000.000 (thirty-five billion reais).

The Bid Tender will now be subject to the analysis of the Union Court of Audit – TCU, which will have up to 150 days to validate its financial and accounting aspects. This deadline may be accelerated considering the government´s intention to launch the bid by July/21.

(*) About the 5G Bid Tender

The 5G Bid Tender will offer, in lots, the 700MHz, 2.3GHz, 3.5GHz and 26GHz bands for the implementation of the mobile network fifth-generation technology – 5G in Brazil.

In addition to enhancing the general internet functioning in mobile gadgets, the 5G has the potential to enable the modernization of various economic sectors, by means of automation, Internet of Things, digitalization and other technologies.

There is an expectation that the 5G Bid Tender will be the largest bid tender of such spectrum, even though the bid value is still to be defined.

The original 5G Bid Tender was launched on February 17, 2020, by means of the public consultation 9/2020 and is being subject to discussions and reviews since then. The public consultation is available in ANATEL´s webpage.

KEY CONTACTS

Rafaella Chiachio
Partner
T + 55 11 3077-3529
rafaella.chiachio@cmalaw.com

Camila Cavour
Associate
T+ 55 21 2217-2039
camila.muniz@cmalaw.com

Isabella Dias
Legal Auxilary