China-based telecom equipment provdier Huawei signed a statement of commitment with Brazil’s Ministry of Communications (Minicom) focused on the development of new technologies to support broadband services using the 450 MHz spectrum band. The agreement was signed between Brazil’s Communications Minister Paulo Bernardo and Huawei Brazil’s Veni Shone.

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Under the agreement, Huawei is committed to conducting research in the use of LTE technology across the 450 MHz spectrum band. The Brazilian government has pledged to provide incentives to Huawei, including tax incentives.

The network plans are aimed at providing Internet access to people in rural areas and small towns.

The Brazilian government has for some time looked to use the 450 MHz band to expand broadband access across rural areas. According to Minister Bernardo, there is still a large gap between network access in urban and rural areas.

“While we’re getting 50% of municipalities in Brazil covered by Internet broadband, in the rural area it does not reach 10%,” Bernardo told journalists during a signing ceremony.

Minister Bernardo believes that, with new technology, the number of homes connected to the network could rise to 70% before the end of 2014.

Huawei’s focus for the project is to provide the technology for companies that won LTE spectrum licenses.

The Chinese ambassador to Brazil, Li Jinzhang, said the agreement is a breakthrough in cooperation between the two countries and stressed that the Chinese government will continue supporting and encouraging Chinese enterprises to invest in Brazil.

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