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Cell Companies in Brazil Bid for 4G at Auction

Posted on the 11 November 2014 by Angelicolaw @AngelicoLaw

Brazil is making significant progress with its high speed data services and telecommunications industry. The fact that three of the country’s biggest wireless carriers spent about 8.5 billion reais (US$3.6 billion) to improve the distribution of high speed mobile services speaks volumes.

According to Brazil’s regulatory agency Anatel, three of the biggest names in the Brazilian telecommunications industry, América Móvil, Telefônica Brasil and Tim Participações, all paid an estimated 2.8 billion reais for their 4G licenses. Oi, a smaller yet popular carrier, chose not to participate in the auction.

The companies that succeeded in gaining 4G licenses will be given access to a spectrum that is ideal for cellular connections used by smartphone and tablet users.

Improved high speed access to data is a primary source of revenue for carrier companies due to the fact that there has been a considerable rise in the demand for the latest smartphones and tablets. According to estimates, Brazil has 276 million wireless phone connections for a population that is just two-thirds the number. And of the 276 million, there are only about 3.7 million smartphone users who have access to decent 4G connections and networks.

The Future of Telecom in Brazil

The fact that the auction went particularly well says a lot about the progressive future of telecommunications in Brazil. According to Andrew Campbell, an analyst for Credit Suisse Group AG, the auction was a once in a blue moon opportunity for the country to gain a 4G spectrum that is essential for improving high speed data. The spectrum, which was used by television broadcasters before the auction, converts airwaves into mobile internet signals.

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