Qualcomm Expects Brazil to Hold 3G Auction in 1H07

US mobile technology firm Qualcomm expects Brazil's telecoms regulator Anatel to hold an auction for 3G spectrum licenses in the first half of 2007, Marco Aurélio Rodrigues, president of Qualcomm in Brazil, told BNamericas.

"Anatel set aside the spectrum in 2000.... There is no reason why the auction should be later than the first half of next year," Rodrigues said.

However, at the moment Anatel is keeping its cards close to its chest.

"Anatel does not have an official deadline to hold a 3G auction," a company spokesperson told BNamericas.

However, "the [Anatel] counselors will possibly study the issue next year," he said. Anatel started a public consultation for the use of the five frequencies for 3G mobile services in July.

When the auction goes ahead, Qualcomm expects Anatel to offer up to five licenses with an average value of around US$200mn.

The auction is capable of generating revenues of US$1bn for the government, Rodrigues predicted.

"Once the licenses are issued, the main operators will be able to start offering services in the second half of 2007," he said.

In Rodrigues' opinion other countries are moving ahead of Brazil. This is especially true in Europe, which has the largest quantity of 3G users, according to the executive.

"Brazil must not fall behind the rest of the world in terms of developing 3G technology," he warned.

Qualcomm has 14 employees in Brazil and this number will probably increase once 3G starts in the country, Rodrigues predicted, without giving details.

Qualcomm's operations in Brazil account for 5% of the company's revenues worldwide, which were US$7.53bn in fiscal year 2006, ending September 24, 2006.

Rodrigues believes that WiMax is currently viewed as a low-cost way of resolving Brazil's problems of distributing broadband.

Globally, by 2011 there will be 1.4 billion users of 3G, while WiMax will have only 38 million, Rodrigues said.

Qualcomm develops CDMA2000 1X, 1xEV-DO and WCDMA (UMTS) chipsets and solutions.

The company has licensed its CDMA patent portfolio to more than 125 telecoms equipment manufacturers worldwide, according to the company website.

BNAmericas.com"

Posted to the site on 13th December 2006