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Brazil Approves 5G Tender will be Huaweis Biggest 5G Opportunity outside of China

2021.09.18

On August 28, according to foreign media reports, Brazil approved the 5G auction announcement on Wednesday (August 25, local time). In the next step, the Brazilian telecommunications administration will adjust the plan based on the amendments proposed by the court. This means that the closely watched Brazil 5G tender has begun, and this is of vital importance to Huawei.


Brazil stated that the specific bidding rules will be released within 1 to 2 weeks, and the frequency band auction will be officially held in October. In this case, the time is fixed. However, the Brazilian 5G bidding first refers to the bidding of operators, that is, deciding which operators are eligible to build 5G. Naturally, it will be the 5G operators who pay or pay more.

The Brazilian auction includes four 5G Internet frequency bands, namely 700 MHz, 2.3 GHz, 26 GHz and 3.5 GHz. The franchise period is 20 years. There are 16 bids in the whole auction, which are divided into national bids and regional bids. Two major categories. The Telecommunication Administration initially assessed the price at 45.6 billion reais, of which 37 billion reais will be converted into investment commitments.

These frequency bands highlight Huawei's capabilities. 700 MHz is extremely attractive because it will make the 5G network construction cost very low and the signal will be better, so it is the focus of competition among major operators. Another usable frequency band is 2.3 GHz, which is similar to the current frequency bands of China's three major operators. Huawei not only participated in the construction of China's 700 MHz network, but also provided hundreds of thousands of 2.3 GHz 5G base stations.

For Brazil's 5G big order, Huawei has a chance. Prior to February 2021, the relevant person in charge in Brazil stated that they did not recognize the information transmitted by the United States about the potential safety hazards of Huawei's 5G, and Brazil would make its own judgment and select an optimal partner.

This is equivalent to giving Huawei a great opportunity, because no matter whether it is 5G technology or equipment, the world cannot find a better one than Huawei.

Brazil's 5G market is huge, and at least tens of billions of dollars will be spent on building 5G.