The Brazilian government will receive BRL 5.85 billion from the auction of frequencies in the 700 MHz band for 4G services, well below the BRL 8.0 billion target. Claro Brasil was awarded lot 1, for national coverage, through a bid of BRL 1.947 billion (+1% over the minimum price); TIM Brasil was awarded lot 2, with national coverage, through a bid of BRL 1.928 billion (+1% over the minimum price), while Telefonica/Vivo won lot 3, for the minimum price of BRL 1.927 billion.
Besides the price for the licences, the three operators will also pay BRL 903.9 million each to fund the activities of the Managing Entity for Digital Television (EAD), which will be responsible for moving TV channels, acquiring set-top boxes for less well-off families and mitigate interferences.
The fourth national operator, Oi, opted not to participate in the auction. As expected, Algar won lot 5, which covers the 87 municipalities in its coverage area, paying BRL 29.5 million. In addition, the operator will pay BRL 13.8 million towards the activities of the EAD.
None of the three participants in the auction purchased lot 4, which provides for national coverage except for the areas covered by regional operators Sercomtel and CTBC, as they had already purchased enough frequencies.
There was no interest in a regional lot, either. According to estimates by Anatel, operators could start providing 4G services in the 700 MHz band by the end of 2017 or the beginning of 2018.
