BRASILIA Aug 21 Brazil's telecommunications
regulator Anatel announced on Thursday the terms of a rights
auction for fourth-generation (4G) data services, which should
throw an over $3 billion lifeline to the government as it
struggles to meet its year-end fiscal goal.
The auction to run the 700 MHz spectrum is scheduled to take
place on Sept. 30, according to a statement from Anatel, and
will raise, at a minimum, 7.71 billion reais ($3.43 billion).
The cash will provide some relief to President Dilma
Rousseff, who pledged to save at least 99 billion reais this
year in primary surplus, or 1.9 percent of the country's gross
The primary surplus represents the public sector's excess
revenue over expenditures before debt interest payments.
Brazil's public finances have deteriorated rapidly under
Rousseff, however, after she gave tax breaks to dozens of
industries in an attempt to restart the country's stagnant
economy ahead of October's presidential election. Most analysts
are skeptical that the government will reach its goal given
disappointing budget numbers over the past few months.
Each of the three nationwide slots being auctioned will
require a minimum bid of 1.927 billion reais, Anatel said.
Bidding for a fourth national slot, which excludes regions
covered by local firms CTBC and Sercomtel, will start at 1.893
billion reais. CTBC's zone requires a minimum bid of 29.6
million reais while Sercomtel's area requires at least 5.3
Telefonica Brasil SA, TIM Participações SA
, America Movil SAB de CV and Grupo Oi SA
paid a combined 2.56 billion reais in 2012 for the
first round of 4G permits on the 2.5 gigahertz spectrum.
Auction winners will be responsible for the 3.6 billion
reais in costs to resolve interference issues relating to
signals currently operating on the frequency band, Anatel said.
($1 = 2.25 Brazilian reais)
(Reporting by Leonardo Goy; Writing by Asher Levine and