Capa - Artigo Tecnologia 5G

5G technology

5G technology is a generation of mobile internet network that will enable increased data download and upload speed, greater network coverage and more stable connections. This technology is strategic, as it reduces latency, enabling the connection of things in a smarter way and the advanced use of virtual reality, robots, autonomous cars and other applications for which a quick response is a fundamental prerequisite .

The implementation of 5G has taken place in several countries since 2019, such as South Korea, the European Union, the United States and China. In Brazil, the president of the National Telecommunications Agency (Anatel), Leonardo Euler de Morais, announced upon taking office in 2019, that the 5G auction would take place in Brazil in 2020.

With the re-creation of the Ministry of Communications (MCom) last year, under the command of Minister Fábio Faria, debates on 5G technology gained prominence on the agency's agenda. Thus, the folder edited regulations, such as the regulation of the Law on Antennae, which brought significant changes to the framework of rules in order to make the development of the theme viable.

NOTICE

Anatel's Board of Directors approved, at the end of February 2021, the 5G Public Notice with the bidding of 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz radio frequencies. This is considered by the Agency to be the largest radio frequency bidding in history do Brasil and which could raise R$ 40 billion reais.

Thus, the document established the investment commitments in coverage that must be fulfilled by the winning companies at the national and regional levels. Institutions should commit to bringing internet access with 4G technology or higher to regions with little or no service in the country. Municipalities with more than 30,000 inhabitants should be served with 5G technology.

In addition, the Notice also foresees obligations for the implementation of optical fiber transport networks in the Northern Region with the Integrated and Sustainable Amazon Program (PAIS) and with the construction of the Federal Government's Private Communication Network.

DIVERGENCES

Connectivity in schools

The Education Commission (CE), of the Chamber of Deputies, through the president Deputy Dorinha (DEM/TO), questioned the Executive Power at various times about the inclusion of the public network of schools in the Notice. For the Commission, there is a difference between predicting the establishment of coverage targets for municipalities and regions with a commitment to implement connectivity to public schools.

Despite the meetings between Minister Faria and Deputy Dorinha, there was no agreement to change the text of the Notice for the direct inclusion of schools. This divergence led to a summons by the Education Commission of Minister Fábio Faria.

In a hearing at the EC, the minister stated that there is no need to change the text, as it already provides for the sending of connectivity to all Brazilian regions with 4G technology or higher. Parliamentarians, on the other hand, stated that there is no way to predict internet connectivity to schools only with the premise that the regions will have internet.

Integrated and Sustainable Amazon Program and Private Network

TCU's technical area stated that the Integrated and Sustainable Amazon Program (PAIS) and the private network would have signs of illegality due to a possible dribbling of the spending ceiling when the execution of the programs was transferred to the private sector. The ceiling works as a way to limit the growth of government expenditures to the variation in inflation.

In this sense, the technical area recommended the removal of the programs in the Notice and stated that the obligation does not constitute a commitment in the interest of the community or users of telecommunications services that can be included in a Notice. As a result, the programs violate provisions of the General Telecommunications Law, in which any activity by the Public Administration could be included in an Anatel Bidding Notice for the granting of the use of frequencies.

COURT OF ACCOUNTS OF THE UNION (TCU)

The Federal Court of Auditors began analyzing the Notice in March of this year and pointed out several differences, mainly regarding the construction of a private communication network for the federal government and PAIS, which installs optical fiber in the North region.

The minister and rapporteur at TCU, Raimundo Carreiro, had initially shown concern with the equitable development of the current networks for 5G in the country. The minister pointed out that there are still several Brazilian municipalities without access to 4G or without basic infrastructure for any internet access. In addition, he questioned Minister Fábio Faria about the divergences pointed out by the TCU's technical area.

However, minister Carreiro presented, in the vote on the 5G notice on August 18, a favorable opinion and accepted the use of the notice in R$ 1 billion for the construction of the Federal Government's Private Network. In this sense, the Network will be built as a 4G mobile network in the Federal District and a fixed network in the form of broadband in other Brazilian capitals.

The minister defended the Private Network and the PAIS according to the principle of defending the public interest. Thus, it rejected the argument of the technical area of TCU and the Public Ministry that pointed out illegalities in the inclusion of the Network and PAIS in the Notice.

Minister Carreiro presented the following changes for inclusion in the Notice:

  • Connectivity goals in schools linked to the 26 GHz collection;
  • The recalculation of the number of ERBs that will need to be installed as an obligation of the 3.5 GHz band;
  • Obligation of guarantees for the obligations of the Band Management Company (EAF);
  • Anticipate investments and the implementation of the 3.5 Ghz network, the most coveted radio frequency band in the auction;
  • Make 5G installation start-up targets more flexible for municipalities with smaller populations;
  • Specific points of the Notice are regulated through internal rules of Anatel.

The Court postponed the vote on the Auction Notice of 5G due to the request for views requested by Minister Aroldo Cedraz for a week. Cedraz pointed out that a longer period would be necessary for the technical area to analyze the inconsistencies that were pointed out in the report about the Notice, such as several points related to the private network of the Government and the PAIS. However, after the deadline, the Notice was approved by TCU according to the favorable report of Minister Raimundo Carreiro.

ANATEL

After the publication of the Notice in the TCU, Anatel received the text on September 1st, with pressure for approval at an accelerated pace by the minister Fábio Faria. In the first deliberative on the matter, counselor Moisés Moreira asked for a review of the Notice, stating that there was a need for a longer period for the correct assessment.

Moreira explained that he would only deliberate on the matter after the publication of two decrees by the federal government dealing with the Private Network and the PAIS:

  • Decree 10799 of September 17, 2021: Amends the Public Telecommunications Policy Decree. Thus, the measure eases the provision of Decree 9612, of December 17, 2018, which required that the federal government's private networks could only be built by Telebras. The new Decree empowers the Ministry of Communications to define the new governance of the Private Network.
  • Decree 10,800 of September 17, 2021: Institutes the Integrated and Sustainable Amazon Program (PAIS). In this way, the Program makes available an optical fiber network for the Amazon Region and municipalities.

After the publication of the decrees, the Board of Directors met on Friday (24/09). The text presented by the rapporteur, Emmanoel Campelo, received several criticisms and divergent positions, which led to the approval of the text presented by another board member, Moisés Moreira. There were three votes for Moreira's text, with Carlos Baigorri and Vicente Aquino voting in favor, against the votes of Emanoel Campelo and Leonardo Euler.

Thus, the final text maintained the percentage of 20% additional to the resources for EAF to migrate TVRO from the C band to the Ku band. Furthermore, it included the Private Network and the Integrated and Sustainable Amazon Program (PAIS) with the changes made by the decrees.

Another redaction modification was the breaking of the 26GHz batches to 200MHz blocks. Attendance will be used for school connectivity commitments. If there are no assets in the first round, the blocks will go to the second round at half the price and the exploration period reduced to 10 years.

In addition, the minimum auction price of R$ 10.6 billion was established, which will be remitted to the Treasury of the Union. . In this way, the companies must, through the commitments, make contributions of R$ 39.1 billion and make an investment over the next 20 years of up to R$ 163 billion.

NEXT STEPS

Anatel has set the 5G Technology Auction for November 4th, a tribute to the last day of the mandate of President Leonardo Euler. The Agency stated that until October 27th, it will receive Identification Documents, Tax Compliance Documents and Price Proposals for issuing Authorizations for the Use of Radio Frequencies.

After the Auction, Anatel will have up to 15 days after the approval of the result to create the Group for Monitoring the Costing of School Connectivity Projects (GAPE), which will be formed by representatives of Anatel; Ministry of Communications; Ministry of Education; and representatives of each winning company in the 26 GHz band.

How the Auction will take place:

700 MHz band

1st round: 10 + 10 national block

Commitments: federal highways and locations without 4G

2nd round: 2 blocks of 5 + 5 regional

Commitments: non 4G locations and federal highways

3.5 GHz band

1st round: 4 80 MHz National Blocks and 8 80 MHz Regional Blocks

2nd round (in case any block from the 1st round is deserted): 20 MHz blocks

2.3 GHz band

1st round: 50 MHz block and regional 40 MHz block

26 GHz band

1st round: 10 national blocks and 6 regional 200 MHz blocks

2nd round: Up to 10 national and 6 regional 200 MHz blocks (if not sold in the 1st round).

Article updated on 09/29/2021.

Wrote by Umbelino Lôbo Team: Jessica Coneza, Advisor.

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Related publications

Skip to content