Ministério das Comunicações

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The role of spectrum in Brazil’s National Broadband Plan

Maximiliano S. Martinhão

Ministério das Comunicações

BRAZIL

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Sources: http://databank.worldbank.org, http://pt.wikipedia.org/wiki/Brasil

• Area > 8 514 876,599 km2

• Population > 196.6 million people• 85% Urban Population

• 15% Rural Population

• GDP 2.47 trillion USD • GDP annual growth: 2.7%

• GDP per capita: 12,593 USD

Ministério das Comunicações

COMMUNICATIONS

Source: http://databank.worldbank.org,

Mobile connections

260 million

132% pop

Internet users

45% pop

Telephone lines

21.8% pop

INCLUSIVE

UNIVERSALIZES

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MOBILE SERVICES

• Penetration > 100%• On-net prices• Business x Personal, Voice x Data usage

• Pre-paid x Post PaidPayment on demandNo need for credit or bank services

• ARPU

10.55 USD

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Source: GSMA

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28%

19%

23%

31 %

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Rural Areas Urban Areas

COVERAGE

COST

Source: Cetic 2011

MOBILE SERVICES

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2011 2012 2013 2014 2015 20160

20

40

60

80

100

120

31

44

59

77

94

110

WORLD DATA TRAFFIC (EB)

Source: Cisco VNI Global Forecast, 2011-2016

+ 255% by 2016

DATA TRAFFIC

1 EB = 1.000.000.000 GB

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2011 2012 2013 2014 2015 20160

1

2

3

4

0.420.632000000000001

0.971000000000001

1.6

2.4

3.5

BRAZIL DATA TRAFFIC (EB)+ 733%by 2016

Ministério das Comunicações

• Audience: 3,3 billion people;

• 3 million Brazilian tourists;

• 600-800 thousand foreign tourists;

• 1st World Cup with 4G.

MAJOR EVENTS

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CONSUMERS

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• Main brazilian consumer wishes in 2012 (Data Popular)

1. Mobile phones2. Notebook3. Tablet

Ministério das Comunicações

Regulation• 4G Auction (jun/12)• Regulation on quality and competition• Popular broadband: 1.396 cities atended• Distribution of spectrum considering small operators• Increase guarantees of secondary spectrum to small ISPs• Reservation of part of the spectrum for public applications

Incentives• Tablets • PNBL Special Regime. MP nº 563, of April 2012

NATIONAL BROADBAND PLAN – PNBL

Infraestrutura• National Infrastructure - Telebrás• Investiments in the North region• Optical South American Ring• Brazilian Satelite and submarine cables

MAIN ACTIONS

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Ministério das Comunicações

Antecipation of investments

in telecommunications networks

Reduction of regional

diferences

Modernization of networks

Massification of access to

telecommunication networks and services

Incentive to national

production and technical development

MP nº 563, of April 2012

Special Tax Regime - REPNBL

Raise of 40% on planned investment

23.000 direct jobs

Reduction of deficit of equipments in R$ 3 bi

Increase national production from 50% to 62%.

BENEFITS

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Ministério das Comunicações

AUCTIONS

Study shows that economic and social benefits to the consumer are 10 times greater than to the spectrum holder

• Beauty contest auctions • Moving from revenue maximization, to

obligations, to beauty contest auctions.

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Ministério das Comunicações

2,5 GHz - 4G Connections• Cities of the World Cup: dec/2013• All cities with more than 100

thousand inhabitants: dec/ 2016450 MHz – Telephony and Internet in rural areas • 30km radius around all cities: dec/2015• Free Internet for all rural public schools

AUCTION OF THE 450 MHZ AND 2,5 GHZ BANDS - JUNE 2012

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US$ 1.25 Billion

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450 MHZ BAND

Increment the coverage from the border of the city in a 30km radius: dec/2015

Free Internet for all rural public schools

Ministério das Comunicações

• 3GPP standard for LTE under elaboration.

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450 MHZ BAND

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2,5 GHz BAND

Cities of the World Cup: dec/2013

Capital and cities with more than 500.000 inhabitants: may/2015

All cities with more than 100.000 inhabitants: dec/ 2016

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700 MHZ BAND

• Transition from Analog to Digital TV schedule

• Strongly considering the use of the 700 MHz band for Mobile Services using APT channelization.

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52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

Guard Band FDD Uplink (45 MHz) Gap FDD Downlink (45 MHz)

Guard Band

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CHALLENGES

• Attend underserved areas with accessible prices

• Attend the ever the growing demand and support major events

• Obtain synergy amongst Broadcasters and Mobile Operators

• Adopt harmonized standards in all Latin America

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Ministério das Comunicações

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THANK YOU!