Chinese vendor Huawei is in talks with almost all Brazilian operators that secured 5G spectrum in a recent spectrum auction, with the aim of selling 5G equipment, Brazilian newspaper Valor Economico reported.
According to the report, Huawei could potentially find advantages in serving the Brazilian 5G market due to the increase in electricity prices as a consequence of an extended drought, as the vendor claims that its equipment maintenance costs are 40% of competitors’.
The report also noted that Huawei is having talks with incumbent carriers Claro, TIM and Vivo as well as with at least three of the six newcomers. One of the newcomers reportedly engaged in talks with the Chinese vendor is Algar, which secured 5G licenses in the Brazilian Midwest. Practically all of the company’s current network, in Minas Gerais, Goiás and Sao Paulo, uses Huawei equipment.
Local press reports also noted that legislation still needs to be adjusted to begin installing antennas for 5G networks. Although there is a General Law on Antennas in Brazil, each municipality needs to define its own regulation.
In related news, Brazilian telecommunications regulator Anatel confirmed that all municipalities across the country will have 5G connectivity by 2029.
“In 1,174 municipalities with more than 30,000 inhabitants we will have at least three providers. And in 4,396 municipalities with less than 30,000 inhabitants, we will have at least one operator. In addition, we will have 1,700 locations with 5G,” said Nilo Pasquali, Anatel’s Planning and Regulation superintendent.
Nathalia Lobo, deputy secretary of Telecommunications at the Ministry of Communications, also noted that the recent 5G auction will guarantee the expansion of 4G technology to locations that do not yet have this technology, such as rural areas and roads.
In the recent 5G spectrum auction, Vivo, Claro and TIM, secured 5G licenses as well as telecoms operators Algar Telecom and Sercomtel. Also, six new entrants secured 5G spectrum in the auction.
The three incumbent telcos acquired spectrum in the 2.3 GHz, 3.5 GHz and 26 GHz bands. Meanwhile, Algar Telecom acquired regional lots in the 3.5 GHz, 2.3 GHz and 26 GHz bands, while Sercomtel secured a regional block in the 3.5 GHz band.
The new entrants that secured licenses in the auction are Winity II Telecom, Brisanet, Fly Link, Neko Serviços e Comunicações and Entertainment and Education, Consórcio 5G Sul and Cloud2U Indústria e Comércio de Equipamentos Eletrônicos.
Through this auction, which raised a total of 47.2 billion reais ($8.5 billion), the government offered spectrum in the 700 MHz, 2.3 GHz, 3.5 GHZ and 26 GHz bands.
Brazilian Communications Minister Fabio Faria recently said that the government may schedule a new 5G spectrum auction to sell batches that did not attract interest, mainly in the 26 GHZ spectrum band. Faria noted that the 26 GHZ spectrum did not attract interest due to uncertainties in the business model.
The rules previously approved by Anatel stipulate that 5G should be deployed across Brazilian state capitals by July 31, 2022.
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