SÃO PAULO (WiMAX Day). Brasil Telecom (BrT) announced today that it intends to launch a pilot WiMAX network in the first quarter of 2007. The company had intended to launch the pilot at the end of 2006, but it was delayed.

At a press conference today, the director of strategic planning for BrT, Ari Joaquin Da Silva, said the pilot would launch in the southern Brasilian city Porto Alegre. With a population of 1.4 million, Porto Alegre already boasts an estimated 120,000 broadband subscribers.

It is intended that the WiMAX service will function as an alternative to DSL services currently available, and as the only broadband service in areas where DSL is unavailable.

The WiMAX service is being deployed by Vant Telecomunicacoes, the Internet broadband division of BrT. Vant was acquired by BrT in July 2004 for $7.5 million. Vant offers an extensive range of voice and data services, and Vant had been awarded licenses for 3.5 GHz spectrum in 2003.

Competitive market
Brazil is becoming a competitive market for WiMAX. BrT is the third largest GSM and fixed-line telecommunications operator in Brazil. Its principal competitors for WiMAX include Embratel, TVA and Neovia.

Neovia is planning an expansion of its network in São Paulo, and TVA Sistema de Televisao S.A. is planning the launch of its network in the southern city of Curitiba in partnership with Samsung.

Telmex-owned Embratel also has WiMAX trials underway and is the only company with a national license for 3.5 GHz spectrum.

Race for spectrum licenses
Last year Motorola forecast that the WiMAX market in Brazil is likely to be valued at over $100 million at the end of 2007. However, with the delays in the issuance of new licences for radio spectrum, Embratel is currently the only company that can offer a national service.

Most other companies plan to receive additional licenses for WiMAX spectrum soon. Mr Da Silva from BrT noted in the press conference today that the company was successful last year in stopping the auction of 3.5 GHz spectrum from which it was denied to bid for more spectrum, and with this dispute resolved, it intends to win new spectrum. Mr Da Silva reasoned that as BrT is already a licensed spectrum owner in Brazil, and is making significant investments in the technology, it has the right to acquire more spectrum licenses.