Brazil’s National Telecommunications Agency, or Anatel, recently approved rules for a spectrum auction for 5G networks on Thursday. The spectrum auction, which will take place later this year, will include all 5G networks, including Huawei.
Huawei Technologies is a major brand in the telecommunications industry and also happens to be one of the largest suppliers of telecommunications equipment, networking gear, smartphones and more. However, allegations were made against the tech company which led to the company being banned in various countries. The allegations included that the company may be helping the Chinese government spy on people and on countries, by means of its products, which may purposely contain security holes. Some countries also alleged that the company steals intellectual property from foreign technology companies.
Even the Brazilian President Jair Bolsonaro, last year, criticized the Chinese company and was under pressure from the former Trump administration to ban Huawei from the country’s fifth-generation technology market on security concerns.
But according to a Reuters report, there will be no ban on the company, despite previously being alleged of being a security risk. This means that Huawei will be allowed to participate in the forthcoming spectrum auction for 5G networks. Brazil telecommunications operators have stated that there will be cost implications if Hauwei is excluded; they said it will cost companies billions of dollars to replace the equipment supplied by the company. Presently, Huawei supplies nearly fifty percent of the entire 3G and 4G networking infrastructure.
As per the rules of the auction, telecom operators will face costly conditions as they are required to migrate to more advanced technology with independent networks not based on their current technology. They are also required to cover the vast northern Amazon region with broadband connectivity, largely using optic fiber cables laid in rivers, and to build a separate secure network for the federal government.
Telefonica Brasil SA and Claro, two of Brazil’s largest telecommunications companies, owned by Mexico’s America Movil, are pushing for a five-year transition to the more advanced stand-alone networks. The rules, however must be approved by the country’s Federal Audit Court. Telecoms operators hope that while this is pending, the spelt-out conditions, which are rather burdensome, can be changed.