Brazil’s telecommunications regulator, Anatel, held an auction on Monday (4) for the 700 MHz spectrum band to expand mobile services. With all lots awarded, regional operators emerged as winners, committing about R$23 million in license fees to the federal government and taking on obligations to expand mobile and internet coverage in rural areas and along federal highways.
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The model adopted by the regulator favored regional providers that had won lots in the 2021 5G auction in the 3.5 GHz band. As a result, major telecom companies, although they submitted bids, did not ultimately take part in the competition.
According to Anatel, offering the 700 MHz band to these investors would give them better technical conditions to compete with national operators, which already hold licenses in other portions of the 700 MHz band as well as in similar low-frequency ranges such as 850 MHz.
All five lots were awarded in the first round at minimum prices, with no premium bids. Brisanet stood out by securing two lots (covering the Northeast and part of the Central-West). Amazônia Serviços Digitais won the North and São Paulo lot, while Unifique and IEZ! Telecom took the South and Southeast lots (Minas Gerais, Espírito Santo, and Rio de Janeiro), respectively.
The auction offered rights to use radiofrequency bands essential for mobile calls and internet access.
The 700 MHz band is considered strategic because it provides broader signal coverage than higher frequencies, allowing signals to travel longer distances and penetrate physical obstacles more effectively. This improves connectivity inside homes, buildings, and even underground spaces.
By comparison, 5G in the 3.5 GHz band delivers high capacity over shorter distances, while the 700 MHz spectrum offers wider reach and better penetration through barriers such as walls and terrain.
This was not the first time the band had been auctioned. In 2014, three blocks were acquired by major telecom companies, but part of the spectrum remained unsold. In 2021, that portion was auctioned again and acquired by a company that later withdrew in 2023, returning the rights to the government.
Current economic conditions, including higher interest rates, were taken into account in the auction design, which prioritized investment commitments—estimated at R$2 billion—over upfront license revenue.
Communications Minister Frederico Siqueira said the model will expand connectivity infrastructure on highways and in rural areas, with implementation of obligations expected to begin this year.
“The goal is to double mobile coverage in rural areas and along highways, reaching locations that currently have no mobile service at all, including towns with 500 or 600 residents,” he said. “This is about digital inclusion to improve people’s lives.”
The auction is expected to benefit 864 locations, mainly in rural and remote areas, reaching around 680,000 people and bringing connectivity to roughly 6,500 kilometers of federal highways across 16 states where signal coverage remains limited.
Anatel’s timeline provides for phased implementation of commitments from this year through 2030, focusing on priority highways defined by the government. Operators will select the specific locations to be served, provided they meet the targets.
All deployments must provide at least 4G connectivity, ensuring high-speed internet capable of supporting services such as telemedicine, distance learning, and digital government.
The auction followed a series of legal disputes, including a temporary suspension of the process, originally scheduled for last Thursday (30). It was ultimately cleared by a ruling from the Federal Regional Court of the 3rd Region.
Last week, a federal court in São Paulo ordered the suspension at the request of TelComp, an association representing competitive telecom providers, which challenged the auction rules.
Bids from companies that did not win lots will remain sealed and under the regulator’s custody until a final decision in the ongoing legal cases.
