Brazil's telecommunications regulator, Anatel, approved on
Thursday a proposal to auction off rights to run the 700 MHz
spectrum for fourth-generation (4G) data services. Rules for the
auction will be published after the country's comptroller
general, known as TCU, sets minimum prices for the licenses.
The auction is expected in early September, according to
government officials. Phone companies in Brazil are already
struggling to sustain profitability in the face of sluggish
demand and heavy investments to roll out 4G coverage.
Telefonica Brasil SA, TIM Participações SA
, America Movil SAB de CV and Grupo Oi SA
paid a combined 2.56 billion reais ($1.2 billion) in
2012 for the first round of 4G permits.
($1 = 2.22 Brazilian reais)