Brazil raises billions in 5G tender

Brazil, Nov 06: Brazil raised €7.27 billion in investments and license fees in a two-day international tender to build and operate a 5G data network, said Brazilian Communications Minister Fabio Faria on Friday. The network will be one of the world's biggest.

The final result was 46.8 billion reais ($8.4 billion, €7.27 bn), which came in shy of the €7.79 bn ($9 billion) the government had forecast.

Winning bids went to Telecom Italia's local subsidiary, Tim; the Spanish Telefónica's Brazilian unit; and Claro, owned by the Mexican América Móvil.

Six newcomers to the Brazilian market also made winning bids. The tender drew 15 bidders in total.

The tender was for the right to build and operate different blocks of the frequency spectrum for 20 years.

Why was Huawei excluded?

Brazil also tendered the development of a separate network reserved for government communications. Bidding for this network excluded equipment from Huawei, the Chinese corporation that has been the target of US espionage accusations.

China and the United States are Brazil's largest trading partners, and Brazil had come under pressure from both sides over the ground rules for its 5G network.

Due to this tech standoff between China and the United States, the tender was postponed from early 2021.

Reactions

President Jair Bolsonaro called the event "historic". "Almost 10 thousand small towns that didn't have internet will have internet," said Bolsonaro in a government statement.

"We're going to show the world that Brazil is now in the digital economy", said Communications Minister Faria.

"It was an absolute success," Marcos Ferrari told AFP. Ferrari is the CEO of Conexis Brasil Digital, a group representing five of the bidding firms.

Source: DW