5G may be key to pulling Brazil out of crisis, expert says

RIO DE JANEIRO, BRAZIL – Claudia Viegas, director of Legal Economics at LCA Consultores, believes that 5G technology may be a key factor to leverage the economy in the current crisis Brazil is experiencing.

The statement was made on Tuesday, May 11, at the public hearing held by the Chamber of Deputies working group that monitors the implementation of 5G technology in Brazil.

Viegas pointed out that Brazil is experiencing a scenario of uncertainty because it has undergone a major economic crisis, and the arrival of the pandemic has exacerbated this problem. “We are experiencing disinvestment in the economy. The growth rate is decreasing every year. Public spending may also be below the expected average. In this scenario of a weakened economy, 5G emerges as an important, disruptive element that could be a booster for the economy,” she told the deputies present at the hearing.

“5G must be addressed as a priority in Brazil. It must be placed as a key element for the solution of these current problems we are experiencing.”

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Representatives from LCA Consultants also argued that it is important to provide the population with 5G faster. “It is necessary to massify its use,” she said. To this end, the end price must be taken into consideration, said Viegas. “Price makes a difference. There is no point in providing technology at an inaccessible price. Brazil has social and regional disparities,” she pointed out.

Auction

Regarding the impending 5G auction, Claudia Viegas noted that a non-revenue model is an excellent option for the technology to be implemented, but she considered that this does not imply the absence of costs for companies. “It’s not because the auction is not subject to a tax that it will mean no costs. Therefore, we need to fine-tune the obligations,” she said.

Regarding the “Release 16” obligation, Viegas argued that each operator should implement its business model. She believes that the regulatory agency should govern the service rather than the infrastructure, and pointed out that the standalone standard is a way to intervene in the autonomy of companies to choose their business models.

LCA is one of the largest economic consultancies in Brazil. LCA’s clients include leading consumer goods and manufacturing companies, major players in services and retail, major law firms, banks, financial institutions, and large infrastructure investors.