Will Brazil's 5G auction be delayed?

Brazil's planned auction of spectrum frequencies for 5G technology may no longer take place in the first quarter of next year, as initially planned by telecom regulator Anatel.

Instead, the tender could now take place in the second half of 2020. 

A source at the science, technology, innovation and communications ministry (MCTIC) told BNamericas that nothing has yet been officially decided, but the matter is up to Anatel.

The main reason for the possible delay is the growing concern of broadcasters regarding interference between the signals of satellite free-to-air TV and 5G mobile broadband in the 3.5GHz frequency. We wrote about what will be at stake at the auction here.

Anatel sees this as an exaggeration of a minor issue.

The regulator argues that relatively few homes in the country still use the type of FTA satellite TV that would be subject to interference. It also points out that this interference can be prevented with filters and other solutions.

At the annual event of domestic telcos in Brasília earlier this year, Marco di Constanzo, network engineering director at TIM, which is conducting 3.5GHz tests with different operators, said no major interference issues had been detected by the operator. The same goes for Telefónica.

However, Carlos Alberto Camardella, engineering and technological evolution consultant at Claro Brasil, which also conducted tests, said it is still not possible to be sure that filters will work for 100% of domestic free-to-air satellite TV dishes and said filters still need to evolve.

Anatel has not officially confirmed the postponement of the tender, although its president Leonardo de Morais reportedly admitted to local media that there will be a delay.

In a press statement, Brazil electrical-electronics industry association Abinee said that the possible postponement of the auction “will result in a delay in the introduction of this technology in Brazil, damaging the entire production chain.”

Abinee claims there will be losses in productivity and competitiveness for the industry in general because 5G will increase the level of automation and digitization in different verticals with IoT and other low-latency driven applications.

According to the association, segments such as agribusiness, security, urban mobility, natural disaster prevention and recovery will be damaged.

In addition, the postponement will also mean that operators shelve investment plans, negatively impacting production and service chains and job creation, Abinee wrote.

In a recent interview with paper O Estado de S. Paulo, Anatel board member Vicente Aquino estimated that this auction could bring the government up to 20bn reais (US$5.05bn), half of which would be in the form of spectrum permits.

MCTIC, which has to set policies for the sector, is currently processing the comments received in a public consultation on strategies for the use and development of 5G technology in the country.

The consultation concluded on July 31.

In parallel with that, Anatel is due to launch a public consultation later this year, if all goes well, on the proposed terms for the spectrum auction, but the agency will have its work cut out to reconcile the different interests.