Brazil could auction significant spectrum this year, report says

Brazil is expected to auction several spectrum licenses this year, which could lead to increased mobile broadband adoption, according to a new report from research firm Maravedis. Regulator Anatel could auction spectrum at 2.5 GHz, 3.5 GHz, 450 MHz as well as some available 3G spectrum.
“As the largest market in Latin America, Brazil offers attractive opportunities for 4G operators.
Demand for wireless broadband access is intensifying, but lack of sufficient spectrum has
delayed many commercial network deployments. With two public consultations held in 2009 for
2.5GHz and 3.5GHz spectrum allocation, Anatel could release spectrum for the development of
4G this year,” explained report author Cintia Garza, Maravedis senior analyst for Latin America.
“At present WiMAX activity in Brazil has taken place in 3.5GHz only, with Neovia and Embratel
leading the market. The driven applications are high-speed Internet and VoIP provided, mainly
to address the needs of the small-medium enterprises and multi-dwelling units markets,” she added.
Wireless penetration stands at 87.5%, with 151 million subscribers using GSM technology, followed by 8.4 million CDMA subscribers and 3.5 million W-CDMA subscribers. Wireless operators Vivo, TIM, Claro, Oi and Telecom Brazil all offer 3G services. Major WiMAX players in Brazil are Neovia and Embratel (Telmex). The nation counts 130,000 WiMAX subscribers. Wireless average revenue per user is $30 for residential connections and $115 for business connections, compared to $15 for 3G connections, Maravedis said.
The 2.5 GHz band is primarily allocated to MMDS and BWA, with restrictions for mobility, but Maravedis said Anatal may auction the 2.5 GHz spectrum under a technology-neutral scheme allowing mobility. About 75% of the nation’s 3.5 GHz spectrum has yet to be released.