see what goes to Claro, TIM, Vivo and more – Telecommunications – Tecnoblog


5G Auction: I can’t believe it finally happened (Image: Playback / Samsung)

The 5G auction has finally taken place. After long sessions on November 4th and 5th, 2021, Claro, TIM, Vivo, Brisanet and several regional providers were able to purchase spectrum for use with 4G and 5G.

In all, Anatel sold 45 lots in the frequencies of 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz. The auction will move R$ 47.2 billion, but much of this amount will be allocated to coverage commitments imposed by the Anatel.

Index

  • Of course, TIM and Vivo guarantee the “fillet” of 5G
  • We have a new national television, but don’t get carried away
  • Regional Operators Schedule 5G Auction
    • Algar Telecom (localities of MG, SP, GO and MS)
    • Brisanet (Northeast and Midwest)
    • Cloud2U (RJ, MG e ES)
    • Consortium 5G Sul (PR, RS, SC) and Sercomtel (AC, AP, AM, PA, RO, RR, SP and TO)
    • Other regionals that bought a 5G license
  • 2.3 GHz frequency won dispute
  • Of the big ones, TIM was the “weakest” in the auction
  • And Hi?

Of course, TIM and Vivo guarantee the “fillet” of 5G

For 5G, the most important frequency in the auction is 3.5 GHz. Anatel opened a bidding process for four lots with national operations, and Claro, TIM and Vivo won the right to use the spectrum for 20 years.

Each license has 80 MHz of capacity. The fourth lot could be bought by another company, but there were no interested parties. Therefore, Anatel divided it into four 20 MHz parts for a new bid, and Claro, TIM and Vivo made their bids and guaranteed the additional spectrum.

Thus, Claro, TIM and Vivo have 100 MHz in the 3.5 GHz frequency in all Brazilian states. It is a capability that allows you to operate on technology with better quality by supporting more simultaneous devices and delivering higher speeds.

In addition, the trio also guaranteed the ability to operate with the 5G of millimeter waves, which allow very fast speeds. Vivo was the most aggressive operator with the 26 GHz frequency and won three national blocks with 200 MHz each, followed by Claro (three national blocks) and TIM (one national block).

We have a new national television, but don’t get carried away

Anatel took advantage of the 5G auction to bid for the 700 MHz leftovers. It was just a 10 MHz + 10 MHz spectrum block with the right to use it for 20 years throughout Brazil, except in Algar’s areas of operation (Triângulo Mineiro and some locations in SP, GO and MS).

This was the first batch of the event, which had three bidders: Highline, VDF Tecnologia da Informação and Winity II. The last company, owned by Fundo Pátria Investimentos, won the right to use it after the initial bid of R$1.42 billion, with an impressive premium of 805.84%.

Well then, Winity will be our new mobile phone nationwide. But it will have a different business model than we are used to, and it will create a mobile operator for wholesale services.

Winity II’s target audience should be the service of other operators, especially those that bought 5G licenses in the auction, which will need a network with 4G technology (it is still not possible to make voice calls only with the fifth generation) and coverage of cell phone outside the home area.

And here it is noteworthy that Winity II did not buy any other license, getting only the 10 MHz + 10 MHz nationally. Compared to Claro, TIM and Vivo, it is impossible to compete: it is very little spectrum at a very low frequency, which makes it impossible to have high access speeds.

Regional Operators Schedule 5G Auction

With a wide offer of regional lots, smaller operators also showed up at the 5G auction. Are they:

Algar Telecom (localities of MG, SP, GO and MS)

Algar already operates with mobile telephony services, but its operations are restricted to a few cities in Minas Gerais, São Paulo, Goiás and Mato Grosso do Sul.

With specific blocks for its region, tele acquired practically all the frequencies it wanted:

  • 2,3 GHz: bloco com 40 MHz
  • 3,5 GHz: bloco com 80 MHz
  • 26 GHz: five 200 MHz blocks, ensuring 1 GHz of spectrum

Brisanet (Northeast and Midwest)

One of the biggest surprises at the auction was Brisanet, which offers fixed broadband over optical fiber in six states in the Northeast. We already expected her performance at the event, but not so strongly.

Brisanet Store (Image: Reproduction/Brisanet)
Brisanet operates with fiber optic services in Northeastern states (Image: Reproduction)

It bought an 80 MHz lot in the region for a price of R$1.25 billion, which is equivalent to a premium of 13,741.71% of the original price (you didn’t read that wrong, the premium was more than thirteen thousand percent).

In addition, Brisanet purchased the right to use the largest block of the 2.3 GHz frequency in the Northeast region, which will also allow the company to operate with 4G technology.

What I didn’t expect was for Brisanet to leave its original area of ​​expertise. The tele also purchased 3.5 GHz in the Midwest region (except in the areas where Algar operates). All licenses purchased by the company guarantee the right to use for 20 years.

Cloud2U (RJ, MG e ES)

Cloud2U is a company that practically no one knows about: it is part of the Greatek group, which manufactures network equipment and serves several small fiber optic providers. It purchased a 3.5 GHz block with 80 MHz of spectrum to operate in the states of RJ, ES and MG (except in the Algar area).

Purchasing the license for 5G also involves serving small operators. The company sees an opportunity to add value to regional providers. However, she clarifies that does not have a designed business plan and believes that “a large part of the network that supports connectivity is ready and able to receive 5G as of 2024”.

Consortium 5G Sul (PR, RS, SC) and Sercomtel (AC, AP, AM, PA, RO, RR, SP and TO)

The auction was attended by the 5G South Consortium, formed by the regional operator Unifique and Copel Telecom (the latter was bought by the Bordeaux fund, owned by businessman Nelson Tanure). The group took an 80 MHz block at 3.5 GHz frequency, for exclusive provision in the South region.

In addition, the operator Sercomtel, which operates in Londrina (PR), also took an 80 MHz block at the 3.5 GHz frequency, but for operations in… São Paulo and in the North region.

And why are these two operators together in the same section? Because Sercomtel is owned by the Bordeaux fund, which also controls Copel Telecom. So it is.

Other regionals that bought a 5G license

Other regionals also purchased frequencies to work with fifth generation services:

  • Fly Link: purchased a 26 GHz (mmWave) block with 200 MHz of spectrum in Algar’s area of ​​operation (some locations in MG, SP, GO and MS)
  • Someone: Bought a 26 GHz block (mmWave) with 200 MHz of spectrum for the state of SP (except in the Algar area). One of the people behind this company is Yon Moreira, CEO of Surf Telecom, but the company clarified to Techblog that these are separate operations.

2.3 GHz frequency won dispute

The 2.3 GHz frequency auctioned by Anatel is interesting: in addition to working with 5G, it can also be used for 4G and the blocks bring a significant amount of spectrum. These lots were highly disputed during the event, and almost all were sold.

See who bought each block in their respective regions:

2.3 GHz frequency 50 MHz block 40 MHz block
North Of course Vivo
São Paulo (except Algar areas) Of course Vivo
North East Brisanet (nobody bought)
Midwest (except Algar areas) Of course Vivo
On the Of course TIM
RJ, ES and MG (except Algar areas) Vivo TIM
Algar Areas Of course Algar

Of the big ones, TIM was the “weakest” in the auction

Compared to Claro and Vivo, TIM was a less aggressive operator in the 5G auction. While competitors bought at least two 26 GHz blocks with a 20-year concession, the Italian telecom acquired only one national one, with a reduced term to 10 years.

5G TEAM (Photo: Paulo Higa)
TIM was surpassed by Claro and Vivo in the 5G auction (Image: Paulo Higa / Tecnoblog)

To have more capacity at 26 GHz, TIM purchased specific lots in the South, Southeast and São Paulo, leaving out the North, Northeast and Midwest. In these areas, the license is valid for 20 years.

In addition, TIM did not buy any license for 2.3 GHz with 50 MHz of spectrum and ended the event with only two blocks of this frequency – Claro won five, while Vivo acquired four.

Despite fewer grants, it is important to emphasize that TIM, Claro and Vivo were left with exactly the same amount of spectrum in the 3.5 GHz frequency, the most important for 5G.

And Hi?

Oi was left out of this auction of frequencies and the company was not even accredited for the event. In part, this was already expected: it sold the mobile telephony arm to Claro, TIM and Vivo, and the deal still needs to be approved by Anatel and Cade.

What could make sense would be for tele to buy some 26 GHz block and adopt 5G to expand fixed broadband in parallel with optical fiber. This was considered by the company, but it went no further.

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