Faced by declining subscriber numbers, MMDS operators are gradually coming up with a strategy for survival in the telecommunications market. The first step was a request for extended license coverage from 35 km to 50 km. The next step is bolder and more complex. They have asked Anatel to change the MMDS spectrum allocation so that other services can used the same frequency band. Pay TV now operates primarily at 2500 MHz and has exclusivity in this band. The MMDS providers want Anatel to allow the band to be used for fixed and mobile telephony, and for multimedia (SCM). Spectrum allocation can?t be changed without public consultation. If the response is positive and Anatel agrees, the wireless market will be dramatically altered as a result. MMDS operators will win a significant upgrade of their frequencies, enabling them to diversify into new segments as well as working out agreements with telcos, network service providers and even future third-generation carriers. At the same time, the market value of the 2500 MHz band will be enhanced because if it?s no longer exclusive. This potentially high-profit portion of the spectrum is coveted by mobile carriers and equipment vendors. Anatel could then demand back and re-auction for other services the frequencies allocated to MMDS operators who aren?t using them effectively or haven?t fulfilled their obligations.