U.S. Markets closed

STXNEWS LATAM-Brazil approves terms of 4G auction seen for September

Brazil's telecommunications regulator, Anatel, approved on Thursday a proposal to auction off rights to run the 700 MHz spectrum for fourth-generation (4G) data services. Rules for the auction will be published after the country's comptroller general, known as TCU, sets minimum prices for the licenses.

The auction is expected in early September, according to government officials. Phone companies in Brazil are already struggling to sustain profitability in the face of sluggish demand and heavy investments to roll out 4G coverage.

Telefonica Brasil SA, TIM Participações SA , America Movil SAB de CV and Grupo Oi SA paid a combined 2.56 billion reais ($1.2 billion) in 2012 for the first round of 4G permits.

($1 = 2.22 Brazilian reais)