# Cost-Benefit Assessment of 5G Rollout: Insights from Brazil
## 4 Case Study in Southern Brazil  
In 2021, Brazil held a multiband auction for 5G technology, offering the spectrum in the 700 MHz, 2.3 GHz, 3.5 GHz, and 26 GHz bands, totaling 3710 MHz auctions in the event held in November [15]. The reserve price set by the regulatory body was BRL 10.6 billion (USD 2.03 billion), with a right concession period of 20 years. In this context, the unit costs of the equipment and support infrastructure were obtained through data requests from manufacturers and high-speed broadband service providers, as well as from Anatel's bottom-up cost model. For a more precise understanding of the approach used in pricing base stations (BSs), network elements were classified into three main categories: (i) civil infrastructure (towers); (ii) the BS, which includes the set of equipment comprising the control, transmission, and radiating systems; and (iii) backhaul, which comprises the transport elements from the LTE site to the provider's network. The costs of BSs include the entire set of equipment necessary for the operation of the control, transmission, and radiating systems. These values are based on the unit CAPEX estimates provided by the Anatel Bottom-Up Cost Model, reflecting a realistic and detailed view of the required investments. Figure 1 shows the percentage of the final values considered for CAPEX and OPEX:  
The analysis of the CAPEX data reveals that the largest portion of the investments was allocated to tower infrastructure, representing 48.32% of the total. These findings underscore the importance of physical infrastructure in the deployment of 5G networks. The percentage values presented in Figures 1 and 2 were obtained from Anatel's official cost modeling documentation and data requests submitted to local broadband service providers. Specifically, CAPEX and OPEX figures were derived from Anatel's Bottom-Up  
Figure 1: Percentage distribution of unit costs in the southern Brazil case study, distinguishing CAPEX and OPEX across infrastructure components such as towers, radios, fiber, energy, and backhaul. Cost Model [15], while the regional typology data used in Figure 2 are based on IBGE's rural-urban classification [16]. Radio equipment, which accounts for 19. 70% of CAPEX, constitutes the second largest component of CAPEX, reflecting the costs associated with the devices necessary for signal transmission and reception. Energy accounts for a considerable portion, at 15.19%, followed by fiber optics (12.91%), which is crucial to ensure high transmission capacity. Backhaul microwaves and residential CPE represent smaller portions, 2.64 and 1. 23%, respectively, indicating that, although important, they are not the primary cost components. Regarding OPEX, the most significant cost is associated with tower rental, which constitutes 54.05% of the total. These data confirm the strategic importance of using existing towers to minimize operational costs. The costs associated with the operation and maintenance of radio equipment, which account for 19.05% of the total costs, highlight the need for the continuous maintenance of these devices. Energy remains a relevant factor, representing 12.21% of OPEX, followed by backhaul microwaves at 11.97%. Fiber optics has a smaller impact on OPEX, with only 2.71%, which can be attributed to the efficiency and robustness of the fiber infrastructure in terms of maintenance and operation. Comprising the states of Parana (PR), Santa Catarina (SC), and Rio Grande do Sul (RS), the southern region of Brazil was chosen for this case study because it is the smallest of the five major Brazilian regions in terms of area and population. This characteristic facilitates data collection and analysis, providing a clear and detailed view of the challenges and opportunities in the deployment of 5G technologies. In addition, the southern region combines urban and rural characteristics, offering a diverse scenario representative of other parts of Brazil.