Brazil Auctions 5G Network With Minimum Offer IDR 26 Trillion

The 5G network will provide high-speed internet. (photo: kokujapan)

JAKARTA - The Brazilian government has scheduled the auction of the fifth-generation (5G) cellular spectrum on November 4. They hope to raise about 10 billion reais (IDR 26 trillion) based on the minimum bid allowed, government officials said on Friday, September 24.

The winning bidder will be required to invest around 40 billion reais (IDR 107 trillion) in 5G infrastructure, the government predicts, with the level of capital spending also being considered part of the bid value.

Among the obligations of the winning bidder, they must bring high-speed internet to thousands of schools to build 4G infrastructure along highways.

Communications Minister Fabio Faria announced the auction date on Friday on Twitter. The full rules for the auction are expected to be published on Monday, September 27, according to telecoms regulator Anatel.

Anatel has postponed a decision on the rule to September 13 with board members at the regulator asking for further time for analysis. "The Anatel board approved the auction in an extraordinary meeting on Friday," Faria said.

Last week, Faria said Sao Paulo and other major Brazilian cities would have a working 5G network by the end of the year and all-state capitals would have the technology by July 2022.

The 5G auction will be the largest spectrum auction ever managed by Anatel. The Brazilian government expects companies to pay up to 45 billion reais (IDR 120 trillion) for operating licenses for four different frequencies to be auctioned.