Telecommunications Industry in Brazil: problems and issues

1
Telecommunications Industry in Brazilproblems
and issues
ITS 15th Biennial ConferenceBerlin, Germany
September, 4-7, 2004

• Antonio Carlos G. Bordeaux Rego
• Director
• Fundação CPqD - Centro de Pesquisa e
  Desenvolvimento em Telecomunicações
• Campinas, SP - BRAZIL

2
Outline

1. Brazilian Reform Agenda
2. Brazilian Current Agenda
3. Main Issues
4. Future Perspectives of Brazilian Telecom Industry

3
Brazilian Reform Agenda (1995 2001)

• 1995 - Constitutional Amendment End of State
  Monopoly
• 1996 - Opening Mobile Telephony to Competition
• 1997 - New Telecommunications Act General Law
• 1997 - Creation of Regulatory Agency ANATEL
• 1998 - TELEBRÁS Privatization
• 4 Fixed Telephony Operators
• 11 Mobile Telephony Operators

4
Brazilian Reform Agenda (1995 2001)

• What Govern did expect ?
• Consolidation and Competition by
• Services, Marketing and Technological
  differentiation
• Duopoly Regime (until 2001) and subsequent
  opening
• Universalization by
• Tariffs Decreasing and Quantitative Expansion
• Internet Access Expansion

5
Brazilian Reform Agenda (1995 2001)

• What did happen ?
• Competition
• Exists on Long Distance and Mobile Telephony
  Market
• Does not exist on Fixed Telephony Market
• Universalization
• Tariffs still high and number of fixed
  subscribers has saturated
• Public Telephony is great success
• Internet Access still limited

6
Brazilian Current Agenda (2003 - 2004)

• Enormous Growth in Mobile Market pre-paid
  services
• Competition is moving on Corporate Market and
  Broad-Band Access
• Internet traffic begins to grow again (B2B, B2C,
  e-gov)

Universalization is happened with combination
of pre-paid mobile services and public pay-phones
services.
7
Main Issues

• Cost and Business Models
• Unbundling and Interconnections
• International Impact in Brazil (ex. Bubble )
• Different Causes
• Local and International cycles in the same moment
• Digital Divide
• Poor Income Distribution
• Tariff Strategies
• Competition Issues
• Concentration versus Competition
• Political and Regulatory Definitions
• Role of Ministry of Communication versus ANATEL
• ANATEL Accountability

8
Future Perspectives

• Emphasis on Competition
• Intensity on Regulatory and Public Politics to
  increase competition and consequent tariff
  decrease
• Govern Programs to decrease Digital Divide
• FUST , GESAC and others
• Stimulate Industrial and Technology Developments
  according to Brazilian Issues
• Digital TV
• NGN and VoIP
• New solutions for rural areas and remote
  locations
• E-govern services and applications

9
Thanks

• CPqD Telecommunication RD Center
• www.cpqd.com.br
• Antonio C. Bordeaux Rego
• bordeaux_at_cpqd.com.br