2021-06-08 São Paulo, Brazil
– Brazilian government, 5G tender July 2021 implementation plan –
– Outdated regulations and heavy taxes are difficulties in adopting 5G –
5G dedicated frequency band bidding
The bidding was originally scheduled to take place in 2020 after Brazil's ANATEL (National Telecommunications and Information Agency) authorized the bidding for 2G dedicated frequency bands in February 5, but the bidding schedule was postponed to 2020 due to the rapid spread of COVID-3 since March.
According to Brazilian media Agencia Brasil, Artur Coimbra's deputy minister of communications, Brazil, recently told a press conference, "The international tender is currently in the final stages, and the tender is expected to take place around mid-July 2021*."
Note*: As of the end of May 2021, specific tender information has not been announced.
“Brazil plans to make large-scale investments through 5G projects,” said Vice Minister of Coimbra. “After one year of bidding, 1G services will be available in all 27 provinces across the country and in all cities with 2029 or more residents by 3.” announced that The Brazilian government is expected to start implementing 5G in earnest from 2022 after undergoing a test phase between the end of this year and early 2022 when a carrier is decided.
<5G service provision schedule>
Until July 2022, 7: capital cities and federal special territories (if a base station is installed per 31 population)
Until July 2023, 7: capital cities and federal special territories (if a base station is installed per 31 population)
Until July 2024, 7: capital cities and federal special territories (if a base station is installed per 31 population)
Until July 2025, 7: capital cities and federal special districts, cities with a population of 31 or more (if a base station is installed per 50 population)
By July 2026, 7: cities with a population of 31 or more (if a base station is installed per 20 population)
By July 2027, 7: cities with a population of 31 or more (if a base station is installed per 10 population)
By July 2028, 7: at least 31% of cities with a population of 3 or more (where a base station is installed per 50 population)
By July 2029, 7: Cities with a population of 31 or more (if a base station is installed per 3 population)
The largest frequency bid ever
According to ANATEL, the 2021G bid, scheduled to be held within 5, is expected to be the largest spectrum bid in Brazil's history as well as the world's largest. Currently, the frequency bandwidth used for 2G, 3G, and 4G is about 600 MHz, and the 6 GHz frequency bandwidth, which is about six times more than the current frequency bandwidth, will be bid for 3.7G. Four frequency bands, 5 GHz, 700 GHz, 2.3 GHz, and 3.5 GHz, are subject to bids approved by the Brazilian government, and among these, 26 GHz and 4 GHz are expected to be exclusive frequency bands for 3.5G.
5G bidding overview
The bid will be finalized and published after a 45-day public hearing period and opinions are collected. The bid will include detailed information about the 5G bid, including the lowest price, and will also specify the amount of investment to reduce the impact that the contracting company may have on other telecommunication services.
The frequency band 5 GHz to be used for 3.5G may have an effect such as interference on over-the-air TV broadcasting (using frequency band 3.7 GHz) received through a satellite antenna (parabolic antenna). have an obligation to take action.
The 5G bidding will be divided into regions such as the northeast, north, midwest, southeast (excluding São Paulo), and the south. You must comply with the rules that must be followed.
Will Huawei participate in the 5G bid?
<Proportion of use of telecommunication equipment by mobile carrier in Brazil>
Resources: Poder 360
According to Brazilian media, the Advisory Committee of the National Telecommunications Agency (ANATEL) under the Ministry of Communications has prepared a report on the bidding for the 5G project, which does not place any particular restrictions on Huawei's participation. The advisory committee prepared a bidding-related report in January that does not impose any special restrictions on Huawei's participation and delivered it to the Minister of Communications, and the Ministry of Communications plans to officially disclose its position on Huawei prior to the bidding.
Regarding Huawei's participation in 5G business, the U.S. government has pressured Brazil to exclude Huawei from the 5G bid, saying that using Huawei's equipment linked to the Chinese Communist Party for 5G could lead to the theft of confidential or personal information. Considering that most of the telecommunication equipment currently used in Brazil is made by Huawei, the argument is gaining strength that if Huawei is excluded, Brazil's 5G technology will be delayed by at least four years and the cost passed on to consumers will increase significantly.
Huawei entered Brazil about 20 years ago and is competing with Ericsson for the first and second positions in the telecommunication equipment market. Based on ANATEL data, it is known that 1-2% of 2G, 3G, and 4G mobile communication equipment used in Brazil are manufactured by Huawei, and the proportion of Huawei products by some companies exceeds 35%. Accordingly, the cost of replacing mobile communication equipment is estimated to reach at least $40 billion.
Major Brazilian mobile carriers such as Vivo, Claro, and Tim e Oi are actively supporting the Brazilian government's participation in the Huawei 5G bid to secure new equipment at a more competitive price and utilize the existing infrastructure built using Huawei equipment. to be.
Countries that currently allow the use of Huawei equipment for 5G include Russia, Germany, Norway, Tunisia, Oman, Kenya, Thailand, South Africa, Malaysia and Indonesia. , Estonia, Latvia, Bulgaria, and Slovakia.
Difficulties related to 5G technology adoption
(Regulation Revision) According to the technical information site Tecmundo, ahead of the 5G bid, the Brazilian municipal government needs to revise regulations related to antenna installation. It is also pointed out that it is urgent to reduce the high tax burden on telecommunication services and prepare countermeasures for interference that may occur in the 5G frequency band. Currently, more than 300 cities in Brazil are applying outdated regulations that do not fit the reality, so it has been found that it takes more than a year to obtain an antenna installation permit. In order to provide smooth 1G communication service, more than five times the amount of antenna currently installed is required, but businesses are experiencing difficulties due to the delayed administration of the city government. Currently, more than 5 antenna installation projects across Brazil are awaiting approval from the city government, with a total investment of about 5 billion real dollars.
(tax burden) Another problem that makes adoption of 5G technology difficult is the high tax burden. According to the International Telecommunications Union (ITU), Brazil imposes the highest taxes on mobile internet in the world. In 2019, users of information and communication services in Brazil paid a tax of Rs 6500 million, which is more than four times the average of 15 countries with high mobile internet usage. Experts pointed out that prior to the implementation of the 4G bidding, government policies to solve this series of problems should be prepared in advance.
(Smartphone) According to information portal site UOL, the reason that 5G is difficult to become popular in Brazil in a short time is because there are not enough smartphones that can use 5G technology. Currently, the smartphone models that can use 5G technology in Brazil are Motorola Edge (5,500 real dollars), Samsung Note20 (8,000 real dollars), Samsung Galaxy ZFold2 (12,500 real dollars), and iPhone12 (7,000-13,900 real dollars). appeared to be a product. The average price of a smartphone purchased by Brazilian consumers is 1400 yuan, but devices equipped with cutting-edge technology cost 5000 yuan or more, occupying about 8% of the market share. Therefore, it turns out that it will take time for such a high-tech smartphone to become popular. IT company Teleco predicts that as long as 5G technology becomes common, various fields such as wearables, drones, home appliances, and smart homes using 5G will also develop at a rapid pace. (Exchange rate: 1 dollar = 5.3 real)
(base station) Bruno Alvarenga Martins Ribeiro, Head of Wireless Solutions at Huawei, said, “Brazil currently has about 10 telecommunication base stations, which is far from the size of the country. There is a shortage of antennas not only due to lack of investment by mobile telecommunication companies but also due to delays in licensing due to delayed administration of local governments. Currently, the National Assembly and the administration are trying to speed up the licensing process so that new antennas can be installed before 5G technology is introduced.”
OPENRAN
RAN stands for Radio Access Network, which can be broadly divided into two types of equipment: RU (Radio Unit, Radio Signal Processing Unit) and DU (Digital Unit, Digital Signal Processing Unit). ' must be connected. Due to the compatibility issues of each of these devices, Ericsson and Nokia have been working until now. Large telecommunication equipment makers such as Huawei and Samsung Electronics are leading the market.
To overcome this problem, the 'Open Radio Access Network (Open RAN)' became available as the fronthaul protocol connecting the RU and DU was opened. The increased compatibility between RU and DU is good news for telecommunication companies that it will not only reduce costs but also build an optimal communication network by taking advantage of the advantages of equipment.
TIM and Vivo, two of Brazil's leading mobile carriers, are known to actively advocate the use of OpenRAN in the 5G sector. The Telefónica group, which owns Vivo regarding the use of OpenRAN, has sent a Request for Proposal (RFP) to companies, and TIM is going to decide to use OpenRAN after undergoing Open Field testing.
Developed 'Connected Car'
UOL, a Brazilian information portal site, introduced MWC (Mobile World Congress), the world's largest mobile telecommunications industry exhibition held in Barcelona, Spain in February 2019, and reported that a number of finished car makers such as Volkswagen, Ford, and Nissan are preparing 'connected cars'. According to the portal, a number of Brazilian automakers are currently pursuing a 'connected car' development project, but they are conscious of competitors and do not disclose the details of technology development to the outside world.
In Brazil, a 'connected car' equipped with 2021G technology will be introduced for the first time in 5, and it is expected that a lot of development will be made in the 'connected car' industry over the next five years. It turned out that Volkswagen was the most leading company in the development of 'connected cars' among automakers that entered Brazil. The head of Volkswagen Brazil and Latin America announced that "Volkswagen has established a partnership with Microsoft to develop a 'connected car'." A number of automakers, including Volkswagen, are promoting the development of 'connected cars', so Korean companies in related fields can explore business opportunities.
According to Globo, most large companies are already looking at 'connected car' technology, with Audi, BMW, Ford, GM, Honda, Hyundai, Mercedes-Benz, Nissan, Volkswagen and Volvo working to develop C-V2X systems. It appears that they have signed a partnership with Qualcomm.
Smart City
The need for smart city construction has been on the rise in Brazil for a long time, but it has been found that there is still no place that has the true aspect of a smart city with various advanced technologies. However, it is understood that interest in smart cities is increasing, as Planet Smart City, an Italian company known worldwide in the field of smart city construction, announced a smart city construction project in Brazil.
Planet Smart City completed and sold the first part of 'Smart City Laguna' in the northeastern state of Ceara in 2018 for the first time in Brazil. The second part of the smart city is expected to be completed by the end of 1.
Laguna, a smart city with a land area of 330ha and habitable for 25,000 people, is also called a 'Social Smart City' because the land was sold at a low price so that even low-income families could purchase land. According to a study by Brazil's Bank for Economic and Social Development (BNDES), the creation of smart city infrastructure in Brazil is expected to bring benefits of up to $2025 billion by 270. "The advent of 5G technology will be a milestone for accelerating smart cities in Brazil," said Diego Conti, a professor at PUC Campinas University.
<Smart City Laguna>
Source: Planet Smart City
The smart city Laguna is being built under the ground, focusing on environment, architecture, people, technology, etc., intelligent LED public lighting, road pavement with drainage function, solar power facilities, power line burial, road network designed to avoid traffic congestion, real-time public area Introduced more than 50 smart solutions, including an application for monitoring and communication between residents (Planet App), electric vehicle charging stations, and free use of Wi-Fi in public places. Currently, Planet Smart City is constructing a 'Smart City Natal' in Rio Grande do Norte, Brazil, which is scheduled to be completed in 2023.
Industry 4.0
According to a study by the Federation of Industries in São Paulo (Fiesp), Brazil recognizes the importance of key technologies of the Fourth Industrial Revolution, such as big data, Internet of Things, and artificial intelligence, but only 4% of companies actually using these technologies appeared to be only to an extent. According to a survey by the National Industrial Alliance (CNI), there are about 5 companies in Brazil, of which only about 70% have introduced the 1.6th industrial revolution technology.
The Fiesp study pointed out that the poor industrial infrastructure and lack of qualified experts to use advanced technologies are the main reasons for delays in the introduction of core technologies of the 4th industrial revolution by Brazilian companies. The Brazilian Industrial Development Authority (ABDI) has analyzed that the fourth industrial revolution could cut costs by 4 billion real per year in Brazil.
A Nokia official said, “5G technology will depend on whether Brazilian companies adopt Industry 4.0 technology that can increase industrial productivity and increase return on investment. In particular, manufacturing companies will be able to increase their productivity by 5-4% within the next 15-20 years by using core technologies of the 25th industrial revolution such as the Internet of Things (IoT), cloud computing, analytics, and machine learning along with 30G deployment.” predicted.
The Brazilian federal government established the 'Fourth Industrial Revolution Working Group (GTI 2017)' in 4 to prepare for the advent of the Fourth Industrial Revolution. (http://www.industria4.0.gov.br/ of the Brazilian government)
Brazilian companies adopting Industry 4.0
ㅇ Pollux (https://www.pollux.com.br/)
– Pollux supplies various technologies and equipment necessary for companies to introduce Industry 4.0, such as assembly lines and industrial robots. Currently, it supplies products to about 75% of automakers produced in Brazil.
ㅇ ThyssenKrupp (https://www.thyssenkrupp-brazil.com/)
– Industry 4.0 has already been introduced into the entire production process of the ThyssenKrupp auto parts plant, resulting in an annual production of 72 auto parts modules with just 70 employees. (Before Industry 4.0, 70 employees were required to produce 200 modules. I needed this.)
ㅇ Vale (http://www.vale.com/brasil/pt/paginas/default.aspx)
– Brazil’s largest steelmaker Vale saved $2017 million in 5050 by investing in the digitalization of production processes and the use of artificial intelligence and big data.
– The company also uses intelligent sensors to increase tire life on mineral haul trucks by 30%, saving $500 million.
ㅇ Bosch (https://www.bosch.com.br/)
– German company Bosch, an early adopter of Industry 4.0, realized the need for Industry 4.0 adoption in the Brazilian market and developed a data collection and analysis solution using intelligent sensors. This increases the transparency of the shop floor, thereby increasing the productivity index and reducing costs.
Expert opinion
Mr. Abrahao of IT company F said, “The Brazilian 5G bid has not been conducted properly due to various reasons such as pressure from the US on Huawei’s participation and the spread of COVID-1919. However, the 5G bid is expected to be held soon. 5G technology is absolutely necessary in various fields such as the Internet of Things, connected cars, and smart cities. In addition to equipment such as 5G antennas, we will be able to explore business participation opportunities in various fields related to 5G.”
implication
The bidding for Brazil’s dedicated 5G spectrum was originally scheduled to take place in 2020, but was postponed to 3 due to the rapid spread of COVID-1919 since March. According to Brazilian media outlet Agencia Brasil, Artur Coimbra, the Undersecretary of the Ministry of Communications, said, “The international bid is currently in the final stages and the bidding is expected to take place around mid-July 2021,” raising expectations for the bidding.
According to technical information site Tecmundo, it is not yet known whether the 5G bid will go as planned due to various difficulties such as the revision of regulations related to antenna installation and the high tax burden on telecommunication services. However, the Brazilian government said, “Brazil plans to make large-scale investments through 5G business. Once the operator is decided, it will go through a trial phase between the end of this year and early 2022, and then start full-scale 2022G deployment from 5.” As such, Korean companies need to closely monitor the progress of the 5G bidding project in Brazil.
Source: Folha de Sao Paulo, Estado de Sao Paulo, UOL, Planet Smart City, KOTRA Sao Paulo Trade Center