Sunday, April 15, 2012

Awakens the interest of telecommunications companies that still do not act in the national market

The president of the National Telecommunications Agency (Anatel), João Batista de Rezende, confirmed that the bidding of 450 megahertz (MHz) and 2.5 giga-hertz (GHz) will be published the week of April 23. Proposals should be opened near the day June 10. According to Rao, there is the possibility of the auction include the participation of Brazilian and foreign companies, which does not operate in the domestic market.

"We believe it can, yes, there are competitors out of participating in the auction. And also of Brazilian companies that are not yet mobile service operators, "Rao said during a news conference. "We believe this announcement will be very beneficial for the country because it will offer both for infrastructure and rural to urban," he added.

According to the proposed bidding terms of radio frequency bands 451 MHz to 458 MHz, 461 MHz to 468 MHz and 2.5 GHz to 2.69 GHz, if companies do not appear interested in acquiring the lower frequencies the concession for the 4G (range 4.5 GHz) will be done only linked to a lower frequency.

The difference between low and high frequencies phone is similar to the characteristics of AM and FM radio: the lower the frequency, the lower the signal quality and greater area coverage, the higher the frequency, the higher quality and lower the coverage area .

Thus, higher frequencies are ideal for transmitting large amounts of data into smaller areas (and higher population density, such as large cities), which requires a greater quantity of antennas, investment is offset by greater demand for services. Since the lower frequencies are better suited for rural and remote areas where the population concentration (or demand for services) is smaller.

In order to avoid "adventurers in the 450 MHz band", the Anatel states that, to participate in the bidding, interested companies must make a deposit of 10% of the project, which must mean something between $ 200 million and R $ 300 million. "If they win they will have to pay a performance guarantee of service," added Rezende. According to Anatel, the estimate is that this value is between £ 2.5 billion and $ 3 billion.

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