Brazil loses R $ 25 billion in taxes with delay of 5G auction, says Ericsson | Telecommunications

The auction of 5Gshould happen in March 2020, but possible interference with the satellite TV service may postpone the event. THE Ericsson, a supplier of mobile network equipment, says that if the bidding is delayed by 2021, the Brazilian government will stop collecting R $ 25 billion in taxes.

Samsung Galaxy S10 5G

The figure was released in a study with revenue and investment projections from Brazilian operators for 5G technology. The document points out that the postponement of the auction would delay the adoption of 5G in Brazil and cause a drop in operators’ revenues due to the high cost of the spectrum.

To Telesynthesis, the director of government relations at Ericsson, Tiago Machado, says that the argument of non-coexistence between 5G and satellite dishes is a “fallacy”, and that the migration of satellite dishes to the Ku band would be “irresponsible”. The migration process has an estimated cost between R $ 3 and 10 billion, and the executive points out that operators have already paid R $ 2.7 billion during the digitalization of open TV for the arrival of 4G in 700 MHz.

Even so, Machado is hopeful that the 5G auction will take place in the first half of 2020, pointing to a “turning point” for the telecommunications market and the Brazilian economy.

Operators in no hurry

Overseas, companies are already starting operations in 5G. The experience with millimeter wave networks has not been good: although the speed is very high, coverage is flawed to the point that the network drops to 4G when crossing the street, even when facing the antenna. For this reason, Brazilian operators observe the new technology with caution.

In the past, Claro stated that it wants to be the first operator to offer 5G, but only in specific places where the technology is justified, both in terms of use and return on investment.

Vivo fears that 5G is not profitable enough to be implemented in Brazil, since it is a complex network that requires a much larger number of antennas. TIM is the only operator that has shown signs of hurry for the auction to take place as soon as possible, but expects the bidding to happen in 2020 so that it can start operating in 2021.

Oi, which faces a financial crisis, has been speculating about a possible sale of the mobile arm. In disclosing the strategic plan for the 2019-2021 triennium, the operator did not show much focus on cellular service and states that it wants to be the “provider” of the infrastructure for 5G in Brazil through its extensive fiber optic network.

Tecnocast 115 – What is 5G for?

Many people still think that 5G will only serve to make the mobile internet faster. But the new network must change a lot, including the fixed internet that arrives in our homes today. In this episode we tell you everything you need to know about 5G. Play and come with us!

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