Brazil assigns 4G cell spectrum for 2014 World Cup

Telecom regulator Anatel awarded broadcast licenses for 4G as well as frequencies aimed at rural broadband coverage in an auction that $1.24 billion from Brazil's biggest carriers.

Anatel president João Rezende said the results exceeded expectations, with carriers such as Telefonica Brasil, the Brazilian unit of  Telefonica (Madrid) paying as much as two thirds more than the minimum bids in the auction. Shares of Telefonica Brasil rose 1.4% on Tuesday, less than the 1.9% advance of the benchmark Bovespa stock index.

The licenses came with obligations of minimum investments to provide 4G coverage in host cities for the Confederations Cup next year, a dress rehearsal for the World Cup in 2014.

Winners of the auction were also required to assume responsibility for providing less-profitable rural broadband service, a policy priority for President Dilma Rousseff.

The licenses stipulated at least 60% Brazilian content in hardware for the new frequencies, a requirement challenged by the United States and the European Union at the World Trade Organization.