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Assigning the 600 MHz band is an opportunity for Brazil to drive digital equality, reduce the gap between urban and rural areas and help deliver affordable connectivity.
Low bands have propagation characteristics that make them particularly suitable for providing coverage in remote areas, which is especially important in large low- and middle-income countries with a numerous rural population. They also have superior in-building penetration, providing ‘deep’ indoor coverage and capacity in urban areas.
Countries have recognised, and more are realising the power of low-band spectrum. Not long ago, most governments and regulators saw low bands as a cash cow for maximising revenues. Fortunately, this has changed, and it is now seen as a building block for a better society.
Our latest GSMA report on spectrum prices shows that low-band prices have dropped by 75% globally in the last 10 years. The report also shows that the average cost of spectrum may have fallen, but the overall cost burden on mobile network operators (MNOs) has actually risen sharply. Global cumulative spectrum prices have increased by 63% over the past ten years as a percentage of the revenues. Any auction needs to take that into account.
While 700 MHz has dominated low-band 5G rollouts so far, the 600 MHz band is starting to pick up momentum. The US and Canada have already licensed the band and heavily use it for 5G, while Saudi Arabia and the UAE are about to have their first 600 MHz commercial networks, leading to a rapidly expanding device ecosystem.
While the process to free up the 600 MHz band can be technically complex, Brazil has all the know-how and expertise needed to turn assigning the band into a resounding win. It can draw on its past learnings: the successful management of the 700 MHz and 3.5 GHz clearance is a globally recognised best practice. The joint effort on those bands between Anatel, the Ministry, MNOs, and broadcasters has led to 100% 4G population coverage and already 62% for 5G.
Our report “600 MHz in Brazil – Reallocation of the band for mobile broadband” shows that Brazilian cities can be split into three categories of 600 MHz use:
1. Cities with spectrum availability.
2. Cities requiring additional reallocation.
3. Cities with high spectrum use.
Each of these categories need their own customised approach to make mobile 600 MHz a reality, as seen in the table below:
The rewards for getting it right are significant. Adding 600 MHz to existing low bands will raise download speeds by up to 50% in rural areas and enhance 5G availability indoors and outdoors in urban and sub-urban areas. Low-band 5G is also expected to drive around $9 billion in economic value in 2030 for the Latin America region.
There is as always also a flip side: without sufficient low-band spectrum, the digital divide will likely widen, and those living in more remote areas will be excluded from the latest digital technologies. For a country like Brazil, with its Digital Transformation goals and global innovative and inclusive reputation, that just isn’t acceptable.
Although we recognise that new consumer trends have emerged, and watching content on demand is taking over linear programming, it is important to underscore that making the 600 MHz band for mobile broadband doesn’t compromise Brazilians’ ability to watch linear TV. Terrestrial TV can continue to offer services in lower bands, especially with the introduction of TV 3.0 at 350 MHz set to drive innovation in the broadcasting industry.
To ensure a smooth and forward-looking transition of the 600 MHz band, it is essential to establish a clear regulatory framework and foster strong collaboration amongst stakeholders. This involves publishing or updating all necessary regulations and adhering to a clean-up phased approach tailored to the reallocation complexity of each city cluster, with a focus on promoting digital inclusion over maximising revenue via an affordable and investment-led auction. These combined efforts will pave the way for a more efficient, inclusive, and future-ready use of the 600 MHz band.