Introduction
5G bidding
Main aspects of 5G bid notice
Offered radio frequency bands
RBS implementation schedule under release 16
3.5GHz radio frequency band release process
The fifth and latest generation of mobile connectivity, 5G technology, is characterised by its low latency (ie, the length of time between sending and receiving information) and high bandwidth (ie, the ability to transmit large quantities of information per unit of time).
5G technology is set to revolutionise the way in which people relate to each other and how devices connect, paving the way for innovation across a range of sectors. 5G networks will be able to operate up to 20 times faster than 4G networks, enabling the development of applications relating to:
- the Internet of Things;
- telemedicine;
- smart cities;
- online gaming; and
- driverless cars.
It should also affect the corporate world with the creation of new technological solutions and ways of doing business.
The rollout of 5G technology in Brazil will be made possible via a wide range of radio frequency spectrum bands that are to be auctioned off by the Brazilian Telecommunications Agency (ANATEL). Given its strategic importance to Brazil's socioeconomic development, this is already being treated as ANATEL's most important auction to date.
The viability of 5G in Brazil fundamentally depends on voice and connectivity mobile operators – licensed under Brazilian legislation to provide the Personal Mobile Service (SMP) – having access to a radio frequency spectrum whose technical characteristics enable the operation of the technology with maximum efficiency.
Access will be granted through a bidding process for the 700MHz, 2.3GHz and 26GHz bands (5G bid notice). On 25 February 2021 ANATEL approved the main aspects of the process.(1)
There is widespread expectation that new entrants will participate and that smaller providers will have access to regional radio frequency blocks. Foreign companies and consortia will also be able to participate in the bidding process.
The 5G bid notice was forwarded to the Federal Court of Auditors for analysis and approval, which is expected to take up to 60 days. Upon approval, ANATEL will be responsible for determining definitive dates for the bidding process.
Division of slots
ANATEL will make the 5G-allocated radio frequency bands available to authorised providers in nine slots, each of which will be subject to specific bidding rules, investment commitments and granting conditions.
Coverage commitments
Coverage and corresponding telephone and mobile broadband service commitments will be assigned to winning bidders for regions that are currently not served by 4G (or higher) technology. Related investments will be deducted from the overall due amount that winning bidders must pay for radio frequency bands.
Release 16
A schedule for 5G implementation within 5G New Radio (NR) 16 technology concerning the 3.5GHz band will be established according to 5G NR 16 technological standards (release 16). This is so that the radio base stations (RBSs) for these networks are implemented in a way that meets the needs of 5G's characteristics, without sharing the resources of the 4G network (5G standalone). Implementation is expected in Brazilian state capitals and the Federal District by 31 July 2022.
Band clearing and fibre-optic network construction
Regarding the 3.5GHz bands, it will be up to the winning bidders to pay for clearing Band C – currently allocated to free-to-air satellite TV channels – so that this frequency spectrum may be utilised in the provision of the SMP.
Private network for federal government and fibre-optic network expansion in Northern Brazil
With regard to the 3.5GHz band, winning bidders will have to construct a private communication network for the federal government with equipment guaranteeing the security of communications. Winning bidders must also install fibre-optic service networks in Brazil's northern region, in line with the scope of the federal government's Integrated and Sustainable Amazon Programme.
700MHz range – type A slots | 3.5GHz range – type B, C and D slots | 2.3GHz range – type E and F slots | 26GHz range – type G, H, I and J slots |
10 + 10MHz block or 5 + 5 MHz blocks – sub-bands from 708MHz to 718MHz and from 763MHz to 773MHz. For municipalities with populations of up to 100,000 inhabitants, authorisation will be issued for the use of radio frequencies on a secondary basis in the range from 718MHz to 748MHz and from 773MHz to 803MHz. | 80MHz or 20MHz blocks – sub-bands from 3300MHz to 3700MHz. | 50MHz blocks – sub-bands from 2300MHz to 2350MHz and 40MHz blocks – sub-bands from 2350MHz to 2390MHz. | 400MHz or 200MHz blocks – sub-bands from 24.3GHz to 27.5GHz. |
All radio frequency bands offered have a 20-year authorisation term that is extendable subject to charges.
RBS implementation schedule under release 16
The schedule for the rollout of RBSs is as follows:
- from 31 December 2021 to 31 July 2022 – one RBS for every 100,000 inhabitants in Brazilian state capitals and the Federal District;
- by 31 December 2023 – one RBS for every 50,000 inhabitants in Brazilian state capitals and the Federal District;
- by 31 July 2024 – one RBS for every 30,000 inhabitants in Brazilian state capitals and the Federal District;
- by 31 July 2025 – one RBS for every 15,000 inhabitants in Brazilian state capitals, the Federal District and municipalities with over 500,000 inhabitants;
- by 31 July 2026 – one RBS for every 15,000 inhabitants in municipalities with over 200,000 inhabitants;
- by 31 July 2027 – one RBS for every 15,000 inhabitants in municipalities with over 100,000 inhabitants;
- by 31 July 2028 – one RBS for every 15,000 inhabitants in at least 50% of all municipalities with over 30,000 inhabitants; and
- by 31 July 2029 – one RBS for every 15,000 inhabitants in cities with at least 30,000 inhabitants.
3.5GHz radio frequency band release process
The 3.5GHz band will be released as follows:
- as of 300 days after the authorisation term for the use of radio frequencies is published in the Official Federal Gazette (DOU) – in state capital and Federal District municipalities linked to coverage commitments for slots B1 to B4 and D33 to D36;
- as of 390 days after the authorisation term for the use of radio frequencies is published in the DOU – in municipalities with at least 500,000 inhabitants, linked to coverage commitments for slots B1 to B4 and D33 to D36;
- from 30 June 2023 – in municipalities with at least 200,000 inhabitants linked to coverage commitments for slots B1 to B4 and D33 to D36, as well as at least 25% of municipalities linked to coverage commitments for slots C1 to C8 and D1 to D32;
- from 30 June 2024 – in municipalities with at least 100,000 inhabitants linked to coverage commitments for slots B1 to B4 and D33 to D36, as well as at least 50% of municipalities linked to coverage commitments for slots C1 to C8 and D1 to D32;
- as of 30 June 2025 – in at least 75% of municipalities linked to coverage commitments for slots C1 to C8 and D1 to D32; and
- as of 1 January 2026 – in other remaining municipalities.
For further information on this topic please contact Fabio Ferreira Kujawski, Lisa Worcman, Paulo Marcos Rodrigues Brancher or Thiago Luís Sombra at Mattos Filho Veiga Filho Marrey Jr e Quiroga Advogados by telephone (+55 11 3147 7600) or email ([email protected], [email protected], [email protected] or [email protected]). The Mattos Filho Veiga Filho Marrey Jr e Quiroga Advogados website can be found at www.mattosfilho.com.br.
Endnotes
(1) The specifics of the 5G bid notice can be accessed here.