28
11/2021
Eduardo Tude
5G
On the 23rd, Anatel published the approval of the award of lots acquired in the 5G auction. Companies will now have until Dec. 3rd to sign the contracts and the Term of Authorization for the use of frequencies.
The winners must present, within 5 days before the aforementioned signature, the Guarantees of Execution of Commitments.
Claro intends to settle the amount to be paid to the National Treasury on the 23rd, as happened in previous auctions. The installment conditions in up to 20 years are not considered advantageous.
ICMS
The Brazilian Supreme Court confirmed, by 8 votes to 3, the decision that the states must establish the ICMS rate for telecommunications services with a maximum percentage of 17%, as it is an essential service.
The discussion will now be about when this new rate will come into effect. The states have asked for it to start in 2024 and Abrint has filed class action suits in the states so that its members can claim a refund of what has been overpaid in the last 5 years. Minister Gilmar Mendes asked for views and the judgment was suspended.
Taxation on gross revenue, including ICMS, PIS/COFINS, FUST and FUNTEL, which currently ranges from 29.2% to 41.0%, should drop to 21.5%.
Telecom Italia
Investment fund KKR has launched a €11 billion offer to buy Telecom Italia shares and make it private. The proposal is subject to the performance of a 4-week due diligence and the approval of the operation by the Italian Government, which has a “Golden Share” of the company. Vivendi, which owns 24% of Telecom Italia, took a stand against the proposal.
Telecom Italia's CEO resigned to speed up the process and is being replaced by TIM Brasil CEO, Pietro Labriola, who will accumulate both positions.
Ranking Smart Cities Services 2021
Uberlândia was ranked first in the 4th edition of the Ranking of Smart Cities Services annually prepared by Teleco with the sponsorship of Abrintel and Conexis. Campo Grande was the 2nd place and the first among the capitals.
The 2021 edition confirmed the growth trend in the offer of 26 services evaluated among the 100 largest Brazilian municipalities, with emphasis on the growth in the offer of services for education and health and the existence of surveillance cameras in 80% of the cities surveyed.
More details in:
https://www.teleco.com.br/Cidades_Inteligentes.asp
Other highlights
Oi's ON shares posted losses of 4.3% in the week and 4.1% on PN shares. The losses were greater than the 0.8% drop in the iBovespa.
Cade approved the purchase of 17 Globo towers by IHSBrasil.
FCC authorized Verizon's acquisition of MVNO Tracfone Wireless owned by América Móvil for $6.25 billion
The number of IoT platform companies in the world (613) has not grown in the last two years. (IoTAnalytics)
Coming Events
Dec 1st: Telco Club 2021
14
11/2021
Eduardo Tude
Results 3Q21: Oi, Algar, Brisanet and Unifique
Comparing 3Q21 with 3Q20, net revenue increased:
Unifique had the highest EBITDA margin (51.4%) in the quarter, followed by Algar (43.1%), Brisanet (38.2%) and (Oi 32.3%)
Algar (R$ 95 million) and Unifique (R$ 22.2 million) reported profit in the quarter, while Brisanet (R$ 6.6 million) and Oi (R$ 4.8 billion) had loss.
About R$ 3.5 billion of Oi's loss resulted from exchange variation that was harmful to the company, which has foreign currency bonds and assets abroad. Oi's net debt reached R$29.9 billion.
FTTH networks are responsible for Oi's positive growth in the residential segment. V.tal, company that will be the provider of this infrastructure for Oi, intends to reach 32 million homes passed (HPs) by 2025, starting to have 2,300 cities with FTTH. It ended the quarter with 13.5 million HPs.
This week, Oi started offering services with Fiber in three more cities in the South region (Eldorado do Sul, Guabiruba and Jandaia do Sul).
Oi's ON shares presented losses of 7.8% in the week and 6.0% on PN shares. Brisanet's shares showed losses of 7.4% and Unifique's shares appreciated by +3.7%.
5G
After the 5G auction, which raised R$ 47.2 billion (Cash + Commitments), the actions for the beginning of the operation of the 5G networks started to advance:
Check out the auction results at:
https://www.teleco.com.br/en/en_5g_licitacao_result.asp
Other highlights
Coming events
7
11/2021
Eduardo Tude
Futurecom
This is Futurecom week. I will coordinate the following panels, which I would like to invite everyone to follow:
5G Auction
The 5G auction was a success:
O comentário da semana analisa os desafios das novas operadoras de 5G:
https://www.teleco.com.br/en/en_comentario/en_com966.asp
Success was not the same in the 26 GHz (200 MHz) batches, which did not have many candidates. The price was high and the commitments to attending schools would have to be reimbursed in cash:
Check out the auction results at:
https://www.teleco.com.br/en/en_5g_licitacao_result.asp
See the rules of the notice at:
https://www.teleco.com.br/en/en_5g_licitacao.asp
Oi
Fiber
Anatel
Coming Events
Eduardo Tude
President and partner at Teleco (consultancy company), works since 2002 as analyst of Telecom market, coordinating consulting projects, publishing weekly articles, preparing sector reports and presenting workshops.
Telecom Engineer (IME 1978) and MSc. in Telecom Engineering (INPE 81), Tude is member in the Mobile World Congress’s judging commission for the Global Mobile Awards, in Barcelona, and was also a visiting specialist professor at Unicamp.
Tude had many positions in the management of Telecommunication companies in areas like Mobile Systems (Ericsson), Optical Networks (Pegasus Telecom) and Satellites (INPE).
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