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Brazil: 3G licenses sell for more than expected Print E-mail
Wednesday, 19 December 2007

Brazil’s 3G license auction resulted in far higher prices than expected, giving the government a significant windfall.

On Tuesday, the first day of the auction, bids totalled over US$ 1.3 billion due to intense competition, telecommunications regulator Anatel said. Vivo, TIM, Oi and Claro each bought a license covering the eastern coastal region, which includes Rio de Janeiro. The auction is set to continue on Wednesday. In all, 44 licenses covering eleven areas are being auctioned.

Before the auction, the head of Anatel Ronaldo Sardenberg said he expected the premium on the licenses to be around 25%. Communications Minister Helio Costa said a 40% premium over the minimum license fee was possible. So far, the licenses have sold for over two and a half times the minimum. The battle for the license in the coastal region was so intense that Claro paid a premium of nearly three times the minimum to beat out Nextel.

Source: Agence France-Presse - WDR/Intelecon Regulatory News.