– Oi, one of the four major telecommunication companies, did not participate in the corporate rehabilitation process –
Recently, the National Information and Communications Commission (Anatel) announced that it had received 5 bid proposals from companies wishing to participate in bidding for 15G-only frequency bands. The 2020G tender, which was scheduled to be held in 5, will finally be held on November 4 after several delays. 5G communication service is expected to be provided first in the state capitals of each state in July 2022.
Companies that have shown their intention to participate in the 5G bid include large mobile carriers Vivo, Claro, and TIM, as well as medium-sized mobile carriers and a consortium of companies from various fields. Oi, one of Brazil's major mobile carriers, did not participate in this bid as it is currently undergoing corporate rehabilitation.
Not all companies submitting bid proposals are eligible to participate in the bid. In order to acquire the qualification to participate, it is necessary not only to meet all the requirements required by the ordering organization, but also to submit all required documents.
Submit 5G bids
5G bidding companies
– Algar Telecom SA
– Brasil Digital Telecomunicações LTDA
– Brisanet Serviços de Telecomunicações SA
– Claro S.A.
– Cloud2U Indústria e Comércio de Equipamentos Eletrônicos LTDA
– Consorcio 5G Sul
– Fly Link LTDA
– Mega Net Provedor de Internet e Comércio de Informática LTDA
– Neko Serviços de Comunicações, Entretenimento e Educação LTDA
– NK 108 Empreendimentos e Participações SA
– Sercomtel Telecomunicações SA
– Telefonica Brasil SA
– TIM SA
– VDF Technologia da Informação LTDA
– Winity II Telecom LTDA
Highlights of the tender notice
According to ANATEL, this 5G bid is expected to be the world's largest spectrum bid as well as the largest in Brazil's history. The frequency bandwidth currently 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 secured through 3.7G bidding. Four frequency bands, 5 GHz, 700 GHz, 2.3 GHz, and 3.5 GHz, are subject to bids approved by the Brazilian government, and of these, 26 GHz and 4 GHz are exclusive 3.5G frequency bands.
The contracting companies will be responsible for purchasing equipment to be used for the 5G mobile communication network and installing the transmission tower, and enjoy the right to operate in the frequency band for 20 years. Meanwhile, companies must fulfill the following obligations in return for winning orders for 5G projects.
– By July 2022, 7G must be available in the capital cities of each state.
– 4G Internet use should be made available on national highways.
– In order to use the 3.5 GHz band exclusively for 5G, the satellite TV signal must be moved to another frequency band.
– Build a private telecommunications network for the federal government
– Building a fiber optic network utilizing the Amazon River waterway
– Provide quality mobile internet to public elementary schools
5G Communication Adoption Effect
Brazilian businesses and consumers have high expectations for the upcoming 5G telecommunication service. It is expected that 5G communication will bring faster communication speeds, lower latency, and the ability to connect more devices with a single antenna in a smaller radius.
In this sense, 5G is absolutely necessary for the use of augmented reality, virtual reality, Internet of Things, and holography, and it can be used in various fields, including telemedicine, where doctors can operate on patients at a long distance through the Internet. 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 develop at a rapid pace.
Experts predict that it will take some time for Brazilian consumers to recognize the changes that 5G communications will bring. The lack of smartphone users who can use 5G technology is one of the reasons why 5G is difficult to popularize in Brazil in a short period of time. Currently, smartphone models that can use 5G technology in Brazil are expensive premium products with an 8% market share.
Investment cost to build 5G infrastructure
If all frequency bands ordered by Anatel are successful, the size of the 5G bid is expected to reach about R$497 billion. The amount that has been identified for double use is as follows:
– Real 30 billion: The amount paid to the Brazilian government for the bidding of the contracting company
– Real 75 billion: Internet of basic educational institutions
– Real 39 billion: other investment costs
* Exchange rate: 1 dollar = 5.5 real
5G communication equipment manufacturer
According to Brazilian media, the National Telecommunications Agency (Anatel) under the Brazilian Ministry of Communications has released a report on the 5G project bid that does not place any special restrictions on Huawei's participation. Considering the fact that a significant portion of the telecommunication equipment currently used in Brazil is made by Huawei, it is expected that the Brazilian 5G technology will be delayed by at least four to five years and the cost passed on to consumers will increase significantly if Huawei is excluded.
Huawei entered Brazil about 20 years ago and is competing with Ericsson for the first and second positions in the telecommunication equipment market. According to data from the National Telecommunications Agency (Anatel) under the Ministry of Communications of Brazil, it is known that about 1% of the existing 2G, 2G, and 3G mobile communication equipment used in Brazil is made by Huawei.
Major Brazilian mobile telecommunication companies such as Vivo, Claro and Tim are actively supporting the Brazilian government's participation in the Huawei 5G bid in order to utilize the existing infrastructure built using Huawei equipment and to secure new equipment at a more competitive price. Mobile carriers that have won the 5G bidding project are given the right to choose equipment makers.
Expert opinion
“In order to use 5G communication across Brazil, the number of antennas needs to be significantly increased,” said Alexandre, an official at company T, a mobile communication equipment component manufacturer. In large cities, there are transmission towers, but in remote areas, 5G communication is possible only when a dedicated antenna is installed. It is urgent to improve because there is a shortage of antennas due to not only lack of investment by mobile communication companies, but also due to delays in licensing due to delayed administration of local governments.”
implication
The Brazilian Ministry of Economy predicts that 2022G technology, which will be provided in the second half of 5 through a bidding in November, will increase productivity in various industries and create an economic effect of 2035 billion real by 2500. Currently, smartphone models that can use 5G technology in Brazil are premium products that are too expensive for consumers to purchase. Therefore, it is pointed out that it is necessary to release a low-priced smartphone model in order to popularize the 5G Internet.
Source: O Estado de Sao Paulo, Folha de Sao Paulo, Anatel, Agetncia Brasil, Comprehensive data held by KOTRA Sao Paulo Trade Center