Brazil has a big decision to make that can affect its economy and future.
Brazil will soon have to decide whether to seize opportunities for commercial 5G technology by making a 5G deal. There are currently bids from different technology companies, one of them being the Chinese company Huawei Technologies Co.
What exactly does this 5G deal mean for Brazil? We will walk you through everything you need to know!
Brazil’s Dealing with Possible 5G Deal with China and Other Entities
First, you may be asking what exactly 5G is. It is simply a next-generation wireless network that allows for faster internet connections.
Now that you know what 5G is, let’s hop into information about Brazil’s 5G deal.
Brazil is currently setting up the rules for an auction for a 5G deal. The 5G auction was planned on being held in March of 2020 but got postponed due to COVID-19. If all goes well, the auction may be held in the first quarter of 2021.
There are a few companies interested in making a deal with Brazil, but one of the most interested ones is the Chinese company, Huawei Technologies Co. Other vendors, such as Nokia and Ericsson, have also shown interest in the 5G auction.
Brazil will make its decision based on factors including security and cost-effectiveness.
If Brazil decides to make this 5G deal with an international company, it will help define a larger relationship between the two countries.
Brazil tends to be more closed off with international business relations, so doing this 5G deal could be very beneficial to its economy. In fact, Brazil ranks 124th out of 190th for doing business globally according to the World Bank.
Check out a few challenges of doing business in Brazil for more insight on why Brazil is ranked so low!
Why A 5G Deal Is Important For Brazil
Brazil is eager to make a 5G deal as leaders believe having a fast and reliable network will set up a better present and future for the country. Brazil worries that if they do not make a deal, it will strongly hinder the country’s economy in the future.
Hamilton Mourão, Brazil’s Vice President, states that Brazil cannot miss out on this opportunity because they are not keeping up with other countries that are technologically invested.
Mourão went on to say that “[failure to seize] this opportunity would mean decades of setbacks and losses”. Mourão added that the Brazilian government acknowledges the relevance of networks in “a world that is moving towards the era of knowledge”.
Implications on Technology and Economy in Brazil
Although Brazil is considered a developing country, its economy is still growing!
Brazil has had economic success in recent years and is ranked as South America’s largest economy and is on its way to becoming the world’s 8th largest economy.
There has been a technology boom occurring in Sao Paulo, Brazil’s financial center and innovation hub. This boom is due to mobile development and web software.
Below are some stats that support the implication that Brazil’s technology has been booming:
- Brazil has the 5th largest online population
- There are about 141,450,000 social media users
- There are about 104,000,000 e-commerce users
- Many tech giants, including Google and Facebook, have offices in Brazil
Check out some more statistics on Brazilian technology usage!
To grow Brazil’s current technological and economic state, leaders believe it is crucial to adopt a 5G deal in the near future.
Make sure to stay informed as new information about the 5G deal will emerge throughout the next year! At Colibri Content, we keep an eye out for important news updates and trends that occur in LATAM so our viewers are effortlessly up-to-date.
If you need to keep an eye on anything happening in Brazil, other parts of LATAM, or plan to break into that market, Contact us at Colibri Content!