Teleco Blog

26
12/2020

5G, Oi and more

Eduardo Tude

Brazil should start a new cycle of cellular technologies in 2021, after the 5G auction, but 4G should still be the main technology for many years;
Mobile operators presented to Anatel, through Conexis, a new proposal to solve 5G interference in the reception of satellite TV in C band (parabolic);
It is a hybrid model, with the use of a filter to mitigate interference in the C band in the first three years and, after this period, the migration process to the Ku band would begin; (Teletime)
China ended the month of November with 227 million 5G mobile phones, 147.4 million from China Mobile and 79.5 million from China Telecom. China Unicom does not disclose its 5G phones;
After just two weeks of bidding, the auction of band C for the 5G spectrum in the US totals US$ 46.5 billion in bids;
This makes the event the largest spectrum auction in America, surpassing the US$ 45 billion raised in 2015 by the AWS-3 spectrum auction.

Oi signed the contract for the sale of UPI Torres to Highline in the amount of R$ 1,067 million;
Oi's ON shares lost 1.4% in the week and PN preferred 4.4%.

More highlights

Provisional measure 1,018/20 was published, which reduces the Fistel fees paid by broadband satellite stations (v-Sats) to values similar to those paid by cell phones;
Vicente Aquino took office as an advisor to Anatel;
Christmas e-commerce sales grew 54% compared to 2019, according to preliminary estimates by Abcomm. There were more than 250 thousand new virtual stores in 2020.

Happy New Year!!!!

20
12/2020

Oi, 5G, Video and more

Eduardo Tude

Oi Móvel was sold to Vivo, TIM and Claro, the only participants in the auction, for R$ 17.3 billion, being R$ 15.7 billion the base price of the offer, R$ 756 million for transition services and R$ 476 million related to the commitment to use Oi's transmission services;
From this total, TIM will pay R$ 7.8 million (45%), Vivo R$ 5.7 million (33%) and Claro R$ 3.9 million (22%);
Oi's frequencies will be divided between TIM (53%) and Vivo (47%), corresponding, on weighted average by the population, to 49 MHz and 43 MHz respectively. Claro had more spectrum than the others due to the acquisition of Nextel;
The division of customers was made considering the base of Apr/20, with TIM having 14.5 million (39.7%), Claro with 11.7 million (31.6%) and Vivo with 10.5 million (28.7%);
With this division, the market share in Oct/20 would be: Vivo (38.1%), Claro (31.6%) and TIM (28.6%);
The effectuation of the acquisition now depends on the approval of the transaction by CADE and Anatel, which should occur at the end of 2021;
Oi ended October with R$ 4,988 million in cash, R$ 120 million less than in the previous month. Investments in the month totaled R$ 473 million;
Oi signed a contract to sell its five data centers to the Titan Venture Capital fund, belonging to the Piemonte Group, for R$ 325 million;
Oi's ON shares lost 7.2% in the week and PN, 16.2%.

TIM will activate 5G DSS in points in 12 Brazilian cities, 5 of them later this year (São Paulo, Rio de Janeiro, Brasília, Belo Horizonte and Curitiba);
3GPP changed the deadline for the completion of Release-17 from Dec/21 to Mar/22, due to the impact of remote work during the Covid-19 pandemic.

Future of Video

This week I followed Parks online seminar that discussed the Future of Video, with a focus on the United States market. The main highlights were:

Video streaming services (OTTs) are expanding their penetration in US homes (78%), compared to Pay TV services (70%);
The drop occurs in traditional Pay TV and is partially offset by the migration to Pay TV online (streaming over the internet);
The 3 main OTTs (Netflix, Amazon and Hulu) have a churn of less than 15%, while the average of the others is 38%. Disney +, HBO MAX and Apple TV + are the three largest among these others.

In Brazil, 56% of those with smartphones subscribe to streaming movies and series. Netflix is the service most frequently accessed (76%), followed by Amazon Prime Video (11%), GloboPlay (3%), Telecine (1%) and Disney + (1%). Panorama Mobile Time/Opinion Box.

Claro Rural

Claro will expand its coverage and connectivity in rural areas by another 15 million hectares in 2021, reaching 100 million hectares. The initiative called "Campo Conectado" is accompanied by a partnership with John Deere and Sol;
Claro will launch two products: Digital Agriculture and Connected Silos. The services will be offered in the 700 MHz band using LTE Cat-M technology.

More highlights

The “zero” Fistel Laws for IoT and FUST were sanctioned and published;
Important points were forbidden in the FUST Law, such as the possibility for providers to reduce the amount to be paid for investments in projects approved by the management council and the obligation to connect all public schools by 2024;
The Senate approved Vicente Aquino's reappointment to Anatel's Board of Directors;
Eduardo Levy will be the new responsible for Oi's institutional relations in Brasília. This position was occupied by Roberto Blois;
Anatel signed with Algar Conduct Adjustment Term (TAC) which provides for an investment of R$ 33.3 million with 4G coverage;
Anatel approved the Cybersecurity Regulation Applied to the Telecommunications Sector, which establishes a series of obligations for all telecommunications service providers. Anatel's Board of Directors may, however, exempt providers from meeting requirements established in the regulation.

Happy Holidays!!!!

6
12/2020

5G, Oi, Anatel and more

Eduardo Tude

The Global market for telecommunications equipment (Broadband Access, Microwave & Optical Transport, Mobile Core & RadioAccess Network, SP Router & Carrier Ethernet Switch (CES) - advanced) grew by 5% in the first 9 months of the year, according to Dell'Oro, Huawei and ZTE increased their market share in this period.
In Brazil, the GDP of information services grew by 0.5%, in the comparison of the last four quarters with the previous four quarters, while the GDP of Brazil had a decrease of 3.4% in this comparison.

Of course, Huawei and the state government of Goiás launched a 5G pilot project in the city of Rio Verde. The 5G network at 3.5 GHz has an experimental character and focus on IoT solutions for agribusiness.
CPQD is inaugurating the first laboratory in Brazil to certify smartphones and other 5G devices.
Ericsson estimates that at the end of 2020 there will be 220 million 5G mobile phones in the world. In Oct/20 the two largest operators in China already had 200 million 5G cell phones.

The court authorized Oi to sell seven buildings totalizing R$ 24.470 million.
Oi's ON shares raised 8.3% in the week and the PN by 4.4%.

More highlighs

Cubic Telecom is the newest MVNO in partnership with TIM. It is a global provider of connectivity solutions for cars.
Brazilian Supreme Court considered the Antenna Law of the city of São Paulo to be unconstitutional (Law 13.756/04), in an action filed by Telcomp. The Law prevented the installation of new ERBs in the city.
A survey carried out by Abrint showed that at least 459 municipalities, among the 1,688 listed at Anatel's base as not having fiber backhaul provided by concessionaires, are connected by fiber by regional providers.
Vivo started to offer FTTH to two more cities (Taquaritinga and Monte Alto) through the franchisee AXT Telecomunicações.
Algar also announced the FTTH service in five more cities through franchises, now serving 79 cities with its franchise network.
AT&T started offering DirecTV GO streaming service in Brazil.
Itaú Unibanco announced that it has signed a ten-year contract with Amazon WebServices (AWS) to migrate its technology systems to the cloud.

Coming Weeks

Telco Club 2020 (2/12), content can be accessed on demand (only in Portuguese)
Nordeste Tech Week (December 9 to 11)
Oi Mobile auction (December 14th)

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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5G, Oi and more

Oi, 5G, Video and more

5G, Oi, Anatel and more