Brazil PCS telecom decision based on 3G, more competition
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[Bridge Information Systems, Inc.]
Bridge Information Systems, Inc. via NewsEdge Corporation : Sao Paulo--June
21--Brazil's decision Wednesday to adopt the 1,800 MHz frequency for its PCS
telecom system was made in order to preserve the 1,900 MHz frequency for third
generation mobile (3G) technology, telecom regulator Anatel President Renato
Guerreiro said. He also said that the choice of frequency, and therefore the
introduction of GSM networks, would attract new hardware operators.
The decision came as a surprise to the market, which had assumed Anatel would
choose the 1,900 MHz frequency.
Guerreiro said that his vote had been cast in favor of 1,900 MHz, but that the other
four Anatel counselors had voted in favor of 1,800 MHz. This, however, did not
imply a split within the regulator.
"From here on out there'll be no more discussion of this: Anatel is entirely behind
this decision," said Guerreiro.
Anatel's decision took stock of short- and medium-term factors, said Guerreiro.
In the short term, the agency's preoccupation was with stimulating the arrival of as
many new hardware companies as possible.
CDMA/TDMA technology, compatible with the 1,900 MHz frequency, is only
produced by a limited number of companies, such as Ericsson, Nortel and Lucent.
However, since GSM handsets and networks are made by all hardware companies,
groups such as Siemens, Nokia and Alcatel, which do not have a significant
presence in the country, lik ely will make heavy investments in Brazil.
Guerreiro said the agency's decision "took account of public opinion." There had
been considerable political pressure in favor of the 1,800 MHz frequency because
of the belief that it would generate a greater number of jobs than if 1,900 MHz
were chosen.
In the medium term, Anatel had its sights set on the introduction of
third-generation mobile technology. In effect, PCS is simply a warm up act in
preparation for third-generation phones, which will offer the full range of data and
image-based Internet services on mobile phones.
By choosing the 1,800 MHz frequency, Anatel has left 1,900 MHz open for use
with third-generation technology. Anatel said that this decision would allow Brazil
to adopt third-generation technology within two to three years.
Analysts had believed the decision would go the other way after the International
Telecommunications Union (ITU) designated 1,800 MHz as an alternate
frequency for 3G systems. For many, this had removed the main obstacle blocking
the choice of 1,900 Mhz.
Guerreiro said that bidding guidelines would be announced in August, and said the
licenses should be awarded in December. The watchdog has yet to decide on the
number of regions, or which geographical areas they will cover, although an
announcement should be made within the next two weeks, Guerreiro said. End
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David Warwick, BridgeNews, Tel: 55 11 3171 1403
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I believe Korean PCS operators Hansol PCS, Korea Telecom Freetel, and LG Telecom use 1800 Mhz, I'm still looking for a source that can be linked to that confirms that. If true then 1800 Mhz is not the slam dunk for GSM that some would have you believe. Perhaps the Brazilians just want to keep up with the latest developments in Korea and get a little Korean investment.<g> We will have to see what kind of systems the winners of the C band licenses ask the vendors for. - DPR |
