Regulatory News
November 29
Leaders of the National Telecommunications Agency (ANATEL) in Brazil, met last Tuesday, the 24th, with President Jair Bolsonaro and the Minister of Communications, Fábio Faria, to discuss the preparation for the 5G mobile network auction. According to the schedule being worked on, the event is scheduled for the first half of 2021.

“The forecast is to have a public notice approved by ANATEL at the beginning of next year; and the bidding session should take place at the end of the first semester. This is the schedule we’re working with and will pursue, despite the challenges that lie ahead of us,” said Carlos Manuel Baigorri, one of ANATEL’s board members.

In addition to being approved by ANATEL, the notice must be analyzed by the Federal Audit Court (TCU). According to ANATEL president, Leonardo Euler de Morais, the 5G notice will not have a fundraising objective and will demand greater investment commitments in the sector from the winning companies.
November 29
The Brazilian Electricity Regulatory Agency approved the final version of the transmission line auction bidding, scheduled for December 17. With an estimated investment of approximately R$7.4 billion (US$1.4 billion), 1,958 km of transmission lines and 12 substations located in the states of Amazonas, Bahia, Ceará, Espírito Santo, Goiás, Minas Gerais Gerais, Mato Grosso do Sul, Rio Grande do Sul and São Paulo will be tendered.

The projects have a completion period of between 42 and 60 months and an estimated generation of 15.4 thousand direct jobs. For the agency's director general, André Pepitone, the auction will be the major contribution of the electricity sector to the post-pandemic economic recovery agenda.
October 31
The National Agency of Petroleum, Natural Gas and Biofuels (ANP), of Brazil, approved the holding of a public consultation and hearing to regulate the reduction of the royalty rate as an incentive for small and medium-sized companies. The consultation has a period of 90 days, starting from its publication in the Federal Official Gazette, and the hearing will take place by videoconference, on a date to be defined.

The purpose of the proposal is to encourage more investment in the fields that these companies operate. The performance of small and medium-sized companies in Brazil is an important catalyst for regional socioeconomic development, especially outside capital cities in the northeast. Currently, there are 60 fields operated by small companies and 32 by medium-sized companies.

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