The BRIC economies (Brazil, Russia, India and China) are the biggest growth opportunity for mobile vendors, but the expected goldrushes are often delayed by long-winded spectrum processes. Brazil’s much delayed auction of LTE spectrum has taken place though, and the equipment makers are poised to pounce. Nokia Siemens is particularly aggressive, saying it is targeting 35% of LTE infrastructure sales in the country.
Aluizio Byrro, head of NSN Latin America, said the firm was looking for a local partner in Brazil to make this happen, since regulations stipulate that most of the new network equipment must be locally produced. The vendor has been particularly active in seeking such manufacturing alliances as the BRIC countries increasingly support locally made gear and try to become more self-sufficient in critical infrastructure. It has already formed a wide-ranging joint venture in Russia, for instance.
Byrro told Reuters: “We have been studying the possibility of producing in Brazil for some time and the conditions have improved quite a bit recently. The next big challenge is to also make Brazilian production competitive enough to export.” If NSN achieves its objectives, it would receive a major boost to its Latin American business, which currently accounts for about 10% of its total revenues.
This week, Brazil’s four main cellcos – Vivo, Claro, TIM Brasil and Oi ‘ beat other bidders, including pay-TV providers, to gain 4G licences in the 2.5GHz band. Frequencies in the 450MHz band for rural mobile services were being offered, too, but as there were no bids, the four operators that won the 4G auction will also be required to invest in that segment, which requires download speeds of only 256Kbps. Regulator Anatel is also auctioning 268 regional lots of higher band spectrum, with Sky Brasil getting at least 10 lots.
Six groups had filed proposals for national 2.5GHz holdings ‘ the losers were pay-TV providers, Sky Brasil and Sunrise (the latter acquired last week by Hungarian investor George Soros). Broadband and TV provider GVT, part of Vivendi, and Nextel Brasil, did not bid.
In another major Latin American market, Argentina’s new spectrum allocations have suffered another delay, despite results of the beauty contest process being expected in late May. Five operators presented offers to obtain new spectrum – Claro, Personal, Nextel, local triple play operator Supercanal and Multitrunk. The government expects to award spectrum in the 1.9GHz band ‘ either 30MHz or 35MHz despending on region ‘ plus 7.5MHz of spectrum in the 850MHz band (as well as 30MHz in 1.9GHz) for capital Buenos Aires.