Brazilian spectrum auction fails to draw interest
March 07, 2002 4:28 PM EST
SÃO PAULO, Brazil—No companies showed interest in the auction of surplus frequencies in bands D and E for personal communications services (PCS) spectrum in Brazil. The delivery of the price proposals and documents, marked for 4 March, failed. Telemar and Tele Centro Oeste Participações attended with their proposals and they were allowed to present the proposals, but they decided against bidding.
Besides those two companies, Telefònica, Telemig Celular, Brasil Telecom and a company called Guadalupe bought the bidding rules for the auction, but they did not attend with proposals. Now, Anatel must announce the lack of interest in the auction and its plans for the additional spectrum.
In an evaluation by Jarbas José Valente, superintendent of private services for Anatel and president of the Special Commission of Auction, there was interest for the bands D and E frequencies, but Telemar and Tele Centro Oeste Participações, the only two companies to make deposits and attend the proposal delivery session, gave up because they were not alone in the auction, and they want to wait for a better time to buy the licenses.
"Anatel feels that there is an interest of the market," affirmed Valente.
According to the superintendent, Anatel will declare the auction finished for lack of participation, and the most probable scenario is that it will schedule another auction to try to sell the licenses. But he emphasized that a new auction will depend on the market demand.
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