Brazil’s leftover spectrum auctions bring in $190M

Bidding for Brazil’s leftover spectrum in the 1.8 GHz, 1.9 GHz and 2.5 GHz bands has raised BRL762.7 million ($192 million).

Telefonica Brasil spent BRL185 million to procure 7 blocks of 2.5GHz spectrum, allowing it to provide coverage in both Sao Paulo Rio de Janeiro. The operator stated that it would  “increase its service delivery capacity with 4G in key regions of the country, with extra band of 10 + 10 MHz in addition to the band of 20 + 20 MHz acquired in 2012’s bid.” 

Meanwhile, rival operator Claro won licences in Espirito Santo, Rio de Janeiro, Rio Grande do Sul and Sao Paulo. TIM Brasil bagged licences for Parana and Pernambuco. Other companies that expressed interest in bidding included Clivo Participacoes, Lig Telecomunicacoes, Nextel, Sercomtel, Sky and TPA Telecomunicacoes.

Regulator Anatel noted that the auctions had exceeded expectations, stating: “In one of the lots, the premium over the minimum price set by the regulator reached 1,272.53%”.

Now that the auction of the A and B lots has been concluded, a third round of bidding for the C lot will be scheduled soon. The leftover spectrum auctions are something of a windfall after last year’s 4G spectrum auctions failed to generate as much revenue as expected when only 3 of the country’s 4 nationwide operators participated.

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