According to the governor of São Paulo, Brazil, Chinese manufacturer, Huawei, plans to invest $800 million in a plant in Sao Paulo. This investment will span over the next three years. Governor João Doria said this plant is meant to meet demand after the auction of 5G spectrum auction in Brazil. The country’s first 5G spectrum auction will take place in March 2020. Huawei said in an e-mail that the new factory may produce smartphones.
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As of last month, Huawei has successfully conducted 5G testing with all four major Brazilian operators. This was confirmed by Huawei’s technical director, Nicolas Driesen. In addition, the company is helping the operators to modernize their infrastructure before the spectrum auction. Huawei is obviously looking forward to leading the development of 5G in Brazil. However, the country will face some challenges in catching up with other Latin American countries in deploying 5G services.
The Chinese manufacturer is not the only company in the contest for Brazil’s 5G spectrum. Nokia is also very active and the company is ready to take advantage of any loophole to get a good contract. Huawei may have the advantage because of its low prices but its setback may be the recent skepticism about Huawei’s 5G devices.