1. Ministério das Comunicações 1 The role of spectrum in Brazil’s National Broadband Plan Maximiliano S. Martinhão

2. Ministério das Comunicações BRAZIL 2 Sources: http://databank.worldbank.org, http://pt.wikipedia.org/wiki/Brasilhttp://databank.worldbank.orghttp://pt.wikipedia.org/wiki/Brasil Area > 8 514 876,599 km2 Population > 196.6 million people 85% Urban Population 15% Rural Population GDP 2.47 trillion USD GDP annual growth: 2.7% GDP per capita: 12,593 USD

3. Ministério das Comunicações COMMUNICATIONS Source: http://databank.worldbank.org,http://databank.worldbank.org Mobile connections 260 million 132% pop Internet users 45% pop Telephone lines 21.8% pop INCLUSIVE UNIVERSALIZES

4. Ministério das Comunicações MOBILE SERVICES Penetration > 100% On-net prices Business x Personal, Voice x Data usage Pre-paid x Post Paid Payment on demand No need for credit or bank services ARPU 10.55 USD 4 Source: GSMA

5. Ministério das Comunicações 5 Rural Areas Urban Areas COVERAGE COST Source: Cetic 2011 MOBILE SERVICES

6. Ministério das Comunicações Source: Cisco VNI Global Forecast, 2011-2016 + 255% by 2016 DATA TRAFFIC 1 EB = 1.000.000.000 GB 6 + 733% by 2016 + 733% by 2016

7. Ministério das Comunicações Audience: 3,3 billion people; 3 million Brazilian tourists; 600-800 thousand foreign tourists; 1 st World Cup with 4G. MAJOR EVENTS 7

8. Ministério das Comunicações CONSUMERS 8 Main brazilian consumer wishes in 2012 (Data Popular) 1.Mobile phones 2.Notebook 3.Tablet Main brazilian consumer wishes in 2012 (Data Popular) 1.Mobile phones 2.Notebook 3.Tablet

9. Ministério das Comunicações Regulation 4G Auction (jun/12) Regulation on quality and competition Popular broadband: 1.396 cities atended Distribution of spectrum considering small operators Increase guarantees of secondary spectrum to small ISPs Reservation of part of the spectrum for public applications Regulation 4G Auction (jun/12) Regulation on quality and competition Popular broadband: 1.396 cities atended Distribution of spectrum considering small operators Increase guarantees of secondary spectrum to small ISPs Reservation of part of the spectrum for public applications Incentives Tablets PNBL Special Regime. MP nº 563, of April 2012 Incentives Tablets PNBL Special Regime. MP nº 563, of April 2012 NATIONAL BROADBAND PLAN – PNBL Infraestrutura National Infrastructure - Telebrás Investiments in the North region Optical South American Ring Brazilian Satelite and submarine cables Infraestrutura National Infrastructure - Telebrás Investiments in the North region Optical South American Ring Brazilian Satelite and submarine cables MAIN ACTIONS 9

10. Ministério das Comunicações Antecipation of investments in telecommunications networks Reduction of regional diferences Modernization of networks Massification of access to telecommunication networks and services Incentive to national production and technical development MP nº 563, of April 2012 Special Tax Regime - REPNBL Raise of 40% on planned investment 23.000 direct jobs Reduction of deficit of equipments in R$ 3 bi Increase national production from 50% to 62%. BENEFITS 10

11. Ministério das Comunicações AUCTIONS Study shows that economic and social benefits to the consumer are 10 times greater than to the spectrum holder Beauty contest auctions Moving from revenue maximization, to obligations, to beauty contest auctions. 11

12. Ministério das Comunicações 450 MHz Telephone and Internet in rural areas 2,5 GHz 4G Connections AUCTION OF THE 450 MHZ AND 2,5 GHZ BANDS - JUNE 2012 12 US$ 1.25 Billion

13. Ministério das Comunicações 450 MHZ BAND  Increment the coverage from the border of the city in a 30km radius: dec/2015  Free Internet for all rural public schools

14. Ministério das Comunicações 3 GPP standard for LTE under elaboration. 14 450 MHZ BAND

15. Ministério das Comunicações 2,5 GHz BAND  Cities of the World Cup: dec/2013  Capital and cities with more than 500.000 inhabitants: may/2015  All cities with more than 100.000 inhabitants: dec/ 2016

16. Ministério das Comunicações 700 MHZ BAND Transition from Analog to Digital TV schedule Strongly considering the use of the 700 MHz band for Mobile Services using APT channelization. 16 525354555657585960616263646566676869 Guard Band FDD Uplink (45 MHz)GapFDD Downlink (45 MHz) Guar d Band

17. Ministério das Comunicações CHALLENGES Attend underserved areas with accessible prices Attend the ever the growing demand and support major events Obtain synergy amongst Broadcasters and Mobile Operators Adopt harmonized standards in all Latin America 17

18. Ministério das Comunicações youtube.com/minicombrasil conexaominicom.mc.gov.br flickr.com/photos/conexaominicom twitter.com/Minicombrasil www.mc.gov.br THANK YOU!