Leftovers of 5G should be auctioned in 2022, says Fábio Faria

The Minister of Communications, Fábio Faria, said this Wednesday (8) that the 5G leftovers should be auctioned in 2022. About 15% of the lots available in the 26 GHz band were not sold in the auction that took place in November.

This frequency did not excite operators due to the fact that it had a lower coverage penetration, which would force companies to keep more expensive equipment in operation in order to issue a stronger signal.

During a hearing in the Senate, Faria said that he considered that the offer of this frequency could be made quickly, without the need for a new approval from the TCU (Court of Accounts of the Union).

“I believe that next year, in the first or second semester, since it is approved by Anatel and approved by TCU [Tribunal de Contas da União], we can have another auction completing these 15 bands, these 15 spectrums, as soon as this business model becomes clearer and Anatel understands that this is the most opportune moment”, he commented.

Known as “millimeter”, the 26GHz band also lacks a commercially viable business model that has been massively tested by an operator. Gradually, it has been used in other countries because its operating cost is high due to the investment required.

The 5G auction offered national and regional lots of four bands: 700 megahertz (MHz), 2.3 GHz, 3.5 GHz and 26 GHz. The largest mobile telephony operators in the country, Claro, Vivo and Tim, won the main frequencies, which are like airborne avenues, they are airborne avenues through which telecoms make their signals travel.

The auction confirmed the expectation that large operators would get the 3.5 GHz (gigahertz), the so-called “filet mignon” of 5G with national coverage, a range that will allow speeds up to 100 times faster than 4G.

This frequency was separated into four batches – one of them did not receive a proposal. The lack of interest in the fourth 3.5 GHz block is explained by the absence of Oi, which sold its mobile arm to the three competitors (Claro, Tim and Vivo). The deal awaits analysis by Cade (Administrative Council for Economic Defense) and Anatel.

Regarding the 26 GHz band, 103 lots were offered for sale, but there were few interested parties. The winners will pay R$352 million in grants, a value much lower than that of other frequencies, in which operators will pay R$6.8 billion to the Union.