News agencies are reporting that vendor Ericsson is planning to invest about 1 billion reais (close to $240 million) in Brazil to add a new assembly line dedicated to fifth generation technology.
The new 5G assembly line will be set up at the Ericsson factory in Sao Jose dos Campos, an industrial city near Sao Paulo. The factory’s 5G output will serve not only Brazil but other countries in Latin America.
Nokia and Huawei also have factories in Sao Paulo state and a strong interest in 5G in the country. In fact Huawei has announced plans to build an $800 million smartphone plant in Sao Paulo state over the next three years.
The new Ericsson assembly line should be operating by the third quarter of next year, although this inevitably depends on Brazil’s delayed 5G auction, for which regulator Anatel is still determining the rules.
The auction was initially scheduled for next March but later postponed as tests on interference with other services are still ongoing. If the auction is further delayed, an Ericsson study released earlier this year suggests a loss of around 25 billion reais for public coffers. The same document suggests that 5G deployment in Brazil will drive a strong upturn in investment and jobs.