This presentation was made as a final project for the excellent course conducted by GSMA @ Michelli Zarri and @ Andrea Guajardo. The aim is to provide foreign colleagues with an overview of 5G Public Policies in Brazil.

1. 5G PUBLIC POLICIES IN BRAZIL:
an overview of spectrum discussions
on upcoming auctions
GSMA – 5G: The path to the next generation
Gabriella de Salvio
21the July 2019

2. Plan of Presentation
1.1 Main radiofrequencies aspects: Brazilian Telecom Law
1.2 5G Policies in Brazil
1.3 MCTIC Public Consultation – Strategies for 5G
1.4 Future Anatel Public Consultation – Spectrum Auctions
1.5 Challenges of Spectrum Price in Brazil
1.6 References

3. 1.1 Main Radiofrequencies aspects
Brazilian Telecom law
Current aspects of Law 9742/1997:
→ Authorizations - Max. 20+20 years (limited to one-time renewal)
→ Renewal fee - 2% net revenues biennial payment (cash)
→ Tenure – RF assigned only by Anatel (not tradable among private players)
To be changed (according to Bill of Law 79/2016 in discussion at the Brazilian Senate):
→ Authorizations - Subsequent renewals (not limited to 2 periods)
→ Renewal fee - could be converted into investments
→ Tenure - RF transfer among operators (secondary market)

4. 1.2 5G Public Policies in Brazil
(i) Public Consultation on 5G National Plan launched in July 2019 by the Brazilian
Ministry of Science, Technology, Innovation and Communications (MCTIC).
Document focuses on 5 relevant verticals:
→ (i) spectrum availability; (ii) sites licensing; (iii) new applications; (iv) R&D; and (v)
cybersecurity
(ii) Public Consultation on 5G Auction to be launched by Brazilian Regulatory
Agency (ANATEL) probably in March 2020.
Certain relevant documents of the Auction are already public (i.e Anatel´s Attorney
Office Opinion nr. 270/2019).
→ Bands to be auctioned: (i) 700MHz (10+10MHz), (ii) 2.3GHz (100MHz), (ii) 3.5GHz
(300MHz) and (iv) 26GHz (3.200MHz)
→ Main design elements: Minimum 3 national blocks of 80MHz in 3.5GHz. 700MHz
first round preference to players without <1GHz RF

5. 1.3 MCTIC Public Consultation
Strategies for 5G
• Radiofrequencies for 5G should provide sufficient spectrum to ensure the
competitive environment
→ expectation of Brazilian telecom operators is that future auction will not be a
fundraising
• Infrastructure sharing as a rule: encouraging agreements among players, related
obligations in the future auction.
→ priorization and coordination of use of infraestructure (i.e specturm) is a must in
Brazil
• 5G should promote increased levels of digital inclusion and be used mainly in
applications for health, education, agriculture and smart cities.
→ 5G applications will be extremely relevant for a developing country such as Brazil

6. 1.4 Future Anatel Public Consultation
Spectrum auctions
700 MHz 2.3 GHz
Single Round
01x50 MHz National
23x40 MHz Regional, 23x10 MHz SLP/Guard
Cap 40% 1-3 GHz (Res. 703/2018)
Sub-cap: 50 MHz
• Areas without 4G coverage
• Potential perimeter: 1.016 mains districts, 2.012
secondary districts2 and ~14k localities
• Implementation - 1 eNodeB 4G (or higher)/localities
• Public Access Offer (ex. Spectrum, RAN, roaming)
20+20 years
20+20 years
1st Round
01x10+10 MHz National
Only operators without 700 MHz
2nd Round
Cap 40% < 1 GHz
• Areas without 4G coverage
• Potential perimeter: 279 (10k-30k hab) cities +
95% urban area/contiguous districts coverage
• Public Access Offer
Cities/districts
without 4G
Source: 1 Anatel Mar’19
< 10k (737/2.447 cities, 100 districts)
10k – 30k (279/1.975 cities, 97 districts)
1.815 districts, in 1.000 4G cities
Spectrum
cap
Obligations
2022-2024
Period
Based on Opinion n. 270/2019

7. 1st Round
03x80 MHz National and 23x60 MHz Regional
2nd Round
Up to 69x20 MHz Regionals (unsold lots)
Sub-cap: 100 MHz
• Areas without fiber optic backhaul
• Potential Perimeter: 1.9811 cities without fiber optic
backhaul
• Backhaul Deployment – minimum 10 Gbps FTTx
• Public Access Offer
20+20 years
1st Round
08x400 MHz National
2nd Round
Up to 16x200 MHz National (unsold lots)
Sub-cap: 1 GHz
20+20 years
• No coverage commitment
• Public Access Offer
3.5 GHz 26 GHz
Spectrum
cap
30k - 100k (111)
> 100k (3)
< 30k (1.867)
Source: 1 Anatel Jan’19
Obligations
2022-2024
Period
Cities without
f.o. backhaul
Based on Opinion n. 270/2019
1.4 Future Anatel Public Consultation
Spectrum auctions

8. 1.5 Challenges of spectrum price in
Brazil
• General perspective is that failing to lower spectrum fees in the upcoming auction will result
in decreased investments;
• Strong need to find positive externalities to compensate future spectrum fees;
• Pricing remains uncertain, as it depends on macro-conditions, industry parameters, and
whether the government prioritizes rasing resources or imposing obligations;
• From historic pricing: i) 3,5 GHz spectrum could go to R$20k/MHz/M.people/year (according
to Ericsson); ii) 3,5GHz auctions could raise approximately R$ 7bn (US$1,7bn) in aggregate,
or R$ 1,8bn per company (US$ 4bn) (according to Merryl Lynch BofA)
• “If carriers spend too much on the spectrum they won’t invest as much in 5G coverage, thus
deferring the adoption of the technology and also billions of dollars in taxes to be collected
from the sales of new devices”, available at https://uk.reuters.com/article/ericsson-5g-brazil-
idUKL2N24D0MD;
• Public Policy in Brazil shall emphasize prioritization and coordination of efforts for
infraestructure sharing, therein included spectrum, to speed up 5G deployment.
US$ 1,0 = R$ 3,74
€ 1,0= R$ 4,19

9. 1.6 References
Studies and websites:
- Effective Spectrum Pricing in Latin America: Policies to support better quality and more
affordable mobile services, available at https://www.gsma.com/latinamerica/wp-
content/uploads/2018//Effective-Spectrum-Pricing-in-Latin-America-full-report-ENG-
web.pdf (november 2017)
- Ericsson Mobility Report, available at https://www.ericsson.com/en/mobility-
report/reports/june-2019 (June 2019)
- Sweden's Ericsson sees Brazil switching on 5G network by early 2021, available at
https://uk.reuters.com/article/ericsson-5g-brazil-idUKL2N24D0MD (12th July, 2019)
- www.antel.gov.br
- www.mctic.gov.br