Brazil & Southern Cone - December 2021

Brazil’s long delayed 5G mobile spectrum auction took place on 4 and 5 November, and 5G mobile services could be available in some cities by July next year. However, most of the population will have to wait a lot longer to gain access to the faster network.

The auction was a success, with 44 5G operating licences acquired by 11 mobile phone companies who together committed around US$8.46bn in fees and investments. Most licences went to the country’s big three operators, Claro, Vivo, and TIM, but some smaller companies also won. The successful companies must meet pledges to bring 4G to 10m people in northern Brazil, and extend 5G coverage along Brazil’s highways, as well as connecting public schools to high-speed internet. There are plans to roll out 5G in phases in the period running up to 2027, with the country’s state capitals the first to receive the network coverage, by the middle of next year.

The argument for 5G has been that it will speed up connectivity and efficiency across the entire economy. Welcoming the auction, President Jair Bolsonaro said it was a “revolutionary technology” that would help Brazil integrate with the rest of the world. Benefits include much more rapid mobile speeds, the ability to use multiple devices on one connection, and wider coverage. The latest data suggests internet connectivity rose during the coronavirus (Covid-19) pandemic, and Brazil now has 152m internet users (81% of the population aged 10 years or over).

The problem, however, is that at least 20m mobile users are still on the relatively slow 3G, and awaiting 4G, meaning it will be a long time before they see 5G. ‘Digital exclusion’ remains a big issue with public schools, the elderly, and those living in rural areas all receiving a much more limited service. According to GSMA, which represents mobile operators, 5G take-up in Brazil will be faster than in the rest of Latin America, but still slow when compared to other parts of the world. GSMA projects that in four years Brazil’s 5G take-up will be 20% – one in five – compared to an average of 12% in Latin America as a whole.