Saturday, January 14, 2012

Anatel will require local R & D at auction, but are awaiting government

The ANATEL will maintain production requirements related to national radio in their bids, but are awaiting the government's position on the policy changes to encourage research and development, especially in the 950 Ordinance of the Ministry of Science and Technology.
As president of the agency, John Rao, even in the announcement of the 2.5 GHz band will be expected to infrastructure investment in long distance and local content restrictions. But with different profile than was predicted in the range of 3.5 GHz, for example.
"In the specific case of LTE does not have domestic production, then it can derail even the supply. What is being done is a review of Ordinance 950, "Rao explained the question in this case, the viability of 30% for local purchases provided notice of the 3.5 GHz
Ordinance 950 of the MCT is where part of the definition of what is product development in Brazil - and consequently has an impact on tax benefits and counterparts in R & D manufacturers. Well, in the case of the announcement, which goes into those 30%.
"It was a request that the agency put it in the regulation of R&D, but the announcement will have to take into consideration. Has constraints. But this has not closed what is the vision of government and Anatel will suit the government is thinking about it, "says the president of ANATEL.
All in all, despite the traditional slurry of potential buyers on the eve of auctions, Rao bet that there will be competition for the 2.5 GHz band - and at least one interested in taking the 450 MHz slice in which there is concern about the collection.
"The concern is the 450 MHz infrastructure, is not revenue. In the case of 2.5 GHz will depend on the dispute that has this market, but also is being exchanged for some investment in infrastructure over long distances in the auction. "
To "facilitate" the 450 MHz band, the ANATEL should "TURL regulate a different, almost a kind of VU-M to fund it," Rao said, referring to the role that the interconnection fee mobile network had - and has - in cellular networks.

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