Press Release

Anatel determines that Vivo expands 4G coverage

Bnamericas Published: Friday, October 07, 2022

This is a machine translation of Anatel's press release

Anatel's Board of Directors decided today to determine that the company Telefônica Brasil SA . (VIVO) complies with the obligation to do sanction consisting of expanding 4G mobile coverage in locations lacking this technology, using the amount of R$ 45,157,623.76, which in principle would be charged as a fine.

The obligation-to-do sanction was evaluated by the Agency as the most appropriate measure for the specific case, in a discretionary judgment and considering the factual and socioeconomic context of the present date and the relevance to the public interest.

Thus, the VIVO company must exclusively choose locations without 4G mobile coverage indicated on the website, where find information on infrastructure installation costs, associated, in detail, with the possible pre-existence of 2G or 3G infrastructure in the location, as well as maintenance costs associated with each project. Such compliance cannot result from RAN sharing, swap, network rental agreements, industrial exploitation contracts or other contractual means, nor can it be restricted to the mere fulfillment of the obligations already imposed on the violator by the regulatory framework and by the contracts or terms entered into. .

The sum of the costs related to the installation of the infrastructure and the period of its maintenance must be greater than or equal to the amount of the fine that would be applied, that is, R$ 45,157,623.76. In addition, at least 60% of this amount must be used to expand 4G coverage in locations within the first population quartile among those indicated on the aforementioned website, and at least 70% must be applied to investments in locations located in the Northeast region.

The operator has a period of 60 days to notify Anatel of its option to adhere to the obligation to do sanction, at which time it must inform the selected locations for compliance with the obligation to do sanction. In the absence of a manifestation within the established period, the application of the fine sanction will be consolidated.

If it chooses to comply with this sanction, the provider must present proof of installation of the infrastructure within 30 days after the end of the stipulated installation deadlines, under penalty of application of the penalty of a fine in an amount proportional to the cost estimates of the projects of the locations in that there is not sufficient and timely evidence.

With this measure, Anatel expects to improve mobile coverage in locations not yet served with 4G technology in the country, especially in the Northeast region, which is in broad consonance with the objectives of public telecommunications policy.

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