5G Auction: The winner of the lot that includes highways will have to cover an additional 4.3 thousand kilometers with the Internet | Economie
3 min read
The 5G auction notice anticipates that the winning company in the national lot in the 700MHz band will receive in return, Investment in covering 31,417 thousand km of federal highways With 4G (4G) or higher mobile internet signal.
However, the notice also states that in the event of a premium, a portion of this amount must be applied to cover further stretches (4,367 kilometers). However, the The total stretch of highways that the company will have to cover with an internet signal will be 35,784 kilometers.
The premium is the bid amount that exceeds the minimum asking price. In the case of the national lot in the 700MHz band sold by Winity, the minimum bid was R$157.6 million.
In other words, the R$1.4 billion being offered by Winity is 806% higher than the minimum required by Anatel and the government for the 700MHz band.
5G auction moves R$47.2 billion, lower than government expectations
According to Anatel, under the rule established in the notice, The premium will ensure that another 4,367 kilometers of highways are covered, bringing the total to 35,784 kilometers..
Today, the federal road network has an area of 125,054 km, of which 57,593 km is served by some mobile technology (2G, 3G and / or 4G).
The 700MHz band was one of four offered in a 5G auction. The rest were 2.3 GHz, 3.5 GHz, and 26 GHz.
Frequency bands act as “knocks” in the air. Through them the data transmission service is performed. The license period for exploration of the 700MHz band is 20 years, renewable.
In all, the auction Transfer of R$47.2 billion, with R$4.8 billion being collected for the government The rest is in mandatory investments.
According to Anatel, Winity will have to invest a total of R$2.3 billion to meet the commitments foreseen in the notice.
The highways chosen to receive the signal are a strategy for the transportation of passengers and the flow of agricultural production. The selection was made by the Ministry of Communications, with the support of Anatel.
According to the government, the obligation was included in the notice because it was a longstanding request from drivers, passengers and truck drivers.
Among the main highways that should receive 4G or 5G mobile Internet:
- BR-101 (Touros-RN links to São José do Norte-RS);
- BR-116 (Fortaleza-CE links to Jaguarão-RS);
- BR-135 (São Luís-MA links to Sete Lagoas-MG);
- BR-163 (connects Tenente Portela-RS to Santarém-PA);
- BR-242 (Maragogipe-BA links to Sorriso-MT); And
- BR-364 (Cordeirópolis-SP links to Mâncio Lima-AC).
The Highway Connection Commitment Compliance Timeline states the following:
- Until December 2023, 10% of the specified sections (excluding additional sections coming from the installments) must be covered by the mobile Internet, in accordance with the order of priority specified in the notice;
- By December 2024, at least 20% of departments;
- By December 2025, at least 50% of departments;
- By December 2026, at least 70% of departments;
- By December 2027, at least 90% of departments;
- Until December 2028, 100% of extensions, excluding additional extensions, are coming from premium;
- Until December 2029, 100% of the divisions resulting from actions to convert goodwill into additional engagements.
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