01/04/2022
Regulatory issues to follow in 2022
The 5G frequency auction was Anatel's main action in 2021. In 2022 it will be important to monitor the main regulatory issues presented below.
- End of fixed telephony concessions
- Fixed telephony concessions are not expected to end in 2021, but it is expected that a major advance will be made in the process of migration of fixe telephony concessionaires from the concession to the authorization regime.
- It is expected that Anatel will complete the evaluation of the value to be exchanged for commitments, including reversible assets in 2022, so that it can establish the conditions for the migration to occur in 2023.
- There is also an arbitration process between each concessionaire and Anatel, which must be concluded in 2022 and will help Anatel to establish acceptable conditions for the current concessionaires.
- Note that the copper network is deficient and is also being abandoned by fixed telephony users. In Oct/21, 45% of fixed telephones in Brazil used the copper network.
- The migration from concession to authorization is fundamental for the strategy of the new Oi, but if negotiations with Anatel are not concluded, it will be necessary to wait for the end of the concession contracts in 2025.
- Review of Regulation of Use of Power Poles
- Anatel and Aneel (National Electric Energy Agency) are preparing a new regulation, which will better discipline the occupation of electric poles by telecommunications providers.
- Among the points under analysis is the standardization of prices charged to providers and management of the occupation of these poles, in order to avoid cable congestion found in some regions, but without restricting providers' access to this infrastructure.
- One of the options under discussion would be to create an entity to manage the occupation of these posts.
- Changes in municipal legislation on cell phone antennas
- In the year 2021, many municipalities changed their legislation to facilitate the deployment of cell sites necessary for the expansion of 4G and 5G networks. Among them São Paulo.
- This is expected to continue in 2022. Good connectivity is essential for a city to become smart.
- New SeAC Law
- The Working Group, created by the Ministry of Communications to address the issue, published its report at the end of 2021 and it will be important to monitor the debate on changes in the SeAC law in 2022.
- It is important to correct the competitive imbalance that exists between Pay TV and video streaming, although it is difficult to pass a new law in 2022, as this is an election year.
- Spectrum for private networks
- According to Anatel, the following frequency bands could be used by private 4G or 5G networks (SLP): 1.4 GHz (30 MHz) band in primary character, 2.3 and 2.4 GHz (10 MHz) band. More 100 MHz are being studied in the 3.7 GHz and 3.8 GHz bands, in addition to smaller bands in bands such as 450 MHz, 700 MHz, 850 MHz, 900 MHz.
- Are there business models for using these frequency bands?
- Spectrum market
- Law 13.879/19 established the possibility of transferring frequency authorization between providers, which could generate a spectrum market, as happens in other countries, notably in the United States.
- Therefore, it will be important to monitor how secondary use evolves, the application of the regulation on the idle use of spectrum (white space) and the revision of the regulation on the use of spectrum.
You could ask:
- Will fixed telephony concessionaires migrate to the authorization regime?
- Will the new regulation on the use of posts be satisfactory?
- Will it be possible to commercialize spectrum in 2022?