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Pyramid Point: 4G Auction in Brazil Brings LTE by 2013

Cambridge, Massachusetts - June 15, 2012 - With the new 4G spectrum auction, Brazil’s government is making a strong case for the deployment of LTE service and is expected to have more than 18 million LTE users by the end of 2015, a new research note from Pyramid Research Analyst, Vinicius Caetano.

Read the full Pyramid Point here.

After much discussion, the 4G spectrum auction finally happened in Brazil. There have been several attempts to head off this auction, from operators threatening not to participate to some of them suing the regulator. Operators believed that this was the wrong time-to-market for LTE in Brazil. However, the government had a different opinion, and it gave clear signs it won’t give up on this project: Brazil will have LTE and it will happen by 2013. The country has a national broadband plan to fulfill after all, and Brazil needs to be ready to host FIFA's World Cup in 2014.

Under the national broadband plan, the government is aiming for a milestone of 40 million households connected by 2014, which is virtually impossible to achieve with fixed service alone, since it accounts for only about 19 million access lines today, notes Caetano. For the World Cup, Brazil wants to prove it is no longer an underdeveloped country offering poor services at high prices and wants to project the image of being a trendsetter. For those who believe LTE plans won’t leave the drawing board, the regulator has a firm response: All 4G spectrum was sold with a minimum coverage requirement. By the end of 2013, all cities hosting the World Cup must have the network in place. For 2014, all cities of 500,000 inhabitants or more must be covered.

Read the full Pyramid Point here.

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