3G Americas Supports Regulator's Decision

Brazil : Wednesday's decision by Brazil's Agência Nacional de Telecomuniçacões (ANATEL) to reaffirm the sole use of 1800 MHz for Personal Mobile Services (SMP) licenses will sustain continued growth of mobile services in not only Brazil, but in other countries in the Americas, in the opinion of the wireless association 3G Americas

Inset is Chris Pearson, Executive Vice President of 3G Americas quoted below.

"This decision safeguards the numerous foreign investments in the successful and competitive wireless market in Brazil and, as such, it is a victory for Brazilian consumers as well as for the operators that have invested over 2 billion USD since June 2002 to install networks in the 1800 MHz band," commented Chris Pearson, Executive Vice President of 3G Americas. "Operators, regulators, and investors around the world were carefully observing the decision of ANATEL as a barometer to the stability and surety of investment in the wireless industry. A change in the stable regulatory framework in Brazil could be a deterrent for future investment in this industry sector. Thus, this decision supporting the integrity of transparent and consistent regulations reaches well beyond Brazil, with a strategic impact on the success of wireless in the Americas and the rest of the world." Pearson noted.

Industry and investment communities throughout the world watched the announcement of ANATEL in Brasilia this week as the agency refused a request by Vesper, a CDMA Wireless Local Loop operator owned by vendor Qualcomm, to utilize the 1900 MHz band for SMP services on a secondary basis. Vesper made this request even though its current license obligates it to deploy SMP services in the 1800 MHz band, pursuant to a competitive bid conducted by ANATEL. By reaffirming the initial finding by one of its internal officials, ANATEL has preserved the competitive balance it has successfully achieved for the wireless industry in Brazil.

"ANATEL's conclusion supports the competition generated since 2000," remarked Dr. Richard Downes, Director of Latin America and the Caribbean for 3G Americas. "With the build-out of SMP licensees, Brazilian consumers are gaining the opportunity to choose among four operators in each region. This intensely competitive environment generates benefits for consumers by multiplying their options for terminals, services, and pricing plans."

"Additionally, ANATEL's commitment to regulatory stability will help sustain increases in GSM-based investments in Brazil by operators and equipment manufacturers alike." Downes cited industry forecasts that as much as $2.6 billion in capital investments and $3.7 billion in operational expenditures will support Brazil's GSM networks over the next three years.

According to statistics provided by EMC, more than 7.34 million Brazilians became wireless subscribers since the launch of GSM in Brazil in June 2002, with the majority (38 percent) choosing GSM, 35 percent choosing TDMA, and 28 percent choosing CDMA. There are more than 825 million GSM customers globally on 640 networks (469 operators) in 175 countries, making GSM the technology of choice for the world.

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