. /.  WORLD TRADE  
ORGANIZATION   
G/TRIMS/W/99 
15 May 2012 
 (12-2614) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
BRAZIL - CERTAIN LOCAL CONTENT PROVISIONS  
IN THE TELECOMMUNI CATIONS SECTOR 
 
Replies to Questions from the United States
1 
 
 
 The following communication, dated 14 May 2012, is being circulated at the request of the Delegation of Brazil.  
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Question 1 
 
 We understand that Brazil is looking into auctioning off radio spectrum in the 450 MHz 
and 2.5 GHz bands for commercial radio services, and in January Brazil's regulator, ANATEL, 
issued Draft Bid Notice No. XXX /2011/SPV – ANATEL.  This document lays out conditions for 
potential applicants interested in bidding on th e right to use this spectrum for commercial 
mobile telecommunications services.  Can Brazil pl ease explain when:  a) the bid document will 
be finalized;  b) applications will be process ed;  and c) winning bids will be announced? 
 Reply 
 
 The final version of the bid document was published on 27 April 2012.  According to the 
proposed schedule, applications are to be submitt ed on 5 June and winning bidders to be announced 
on 12 June.  The final version of the document is available at www.anatel.gov.br . 
 
 Question 2 
 
 The Draft Bid Notice appears to include a requirement that the winning bidders commit 
to "purchase goods, products, equipment a nd systems for telecommunications and data 
networks with national technology".  Specifically, it would appear that the winning bidder must 
ensure a 70 per cent local content ratio in its infrastructure deployment after five years.  Can Brazil please explain the purpose of this policy? 
 Reply 
 
 There is no obligation of a 70% "local content" ratio in infrastructure deployment. 
Additionally, the bid document sets conditions that  will allow winners to build up networks with 
state-of-the-art technology.  Brazil's government policy for telecommunications aims at granting the 
population the broadest access to these services, while stimulating research and development of 
modern technologies with innovation. 
                                                      
1 G/TRIMS/W/93. G/TRIMS/W/99 
Page 2  
 
  Question 3 
 
 How does Brazil propose defining "national technology"? 
 Reply 
  National technology in Brazil is presently de fined by Law 8.248/1991 , Decree 5.906/2006 
and Rule 950/2006 of the Ministry for Science, Technology and Innovation.  
Question 4  
 
 Can Brazil confirm that the requirement to ensure a certain percentage of local content 
will be mandatory for the winning bidder(s)? 
 Reply 
 
 According to the bid document, there are c onditions that will allow winners to build up 
networks with state-of-the-art technology, incl uding, under certain conditions, the possibility of 
acquisition of any kind of equipment. 
 
Question 5  
 
 If company that wins the bid seeks to ut ilize "foreign" technology that it considers 
optimal for its network in Brazil, but use of wh ich would mean that the company did not satisfy 
its local content quota, will ANATEL require that th e preferred technology be rejected in favor 
of an arguably inferior technology that is produced locally? 
 
Reply 
 
 As mentioned above, the bid document was d esigned to ensure that state-of-the-art 
technology is offered.  
Question 6  
 
 How will Brazil enforce the requirement if a company wins the bid but is incapable or 
chooses to not fulfill the lo cal content requirement? 
 Reply 
 
 The enforcement of the bid will follow specifi c telecom regulations a nd other Brazilian laws, 
as well as the terms of the contract to be signed by the winner.  Appended to the bid document is a 
draft contract.   
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