1. A report on the Brazilian Broadband Policy
Gabriel Boavista Laender
University of Brasília (UnB)
Telecommunication Law Study Group (Getel)
www.getel.org
Lima, 20th of November of 2010

2. This presentation: an overview of the reasons
and means of the Brazilian National Broadband
Plan

3. September 25th, 2009
Broadband Plan Task
Force
May 12th, 2010
Broadband Program Decree
June 23rd, 2010
Connected Brazil Forum
October 3rd, 2010
Presidential elections
The broadband plan is yet too recent...
And its implementation began in a political
troublesome environment.

4. A brief overview of broadband in Brazil...

5. Broadband penetration (fixed only)
6%
94%
Fixed access No access
Source: Teleco (2010) IDG (2010)

6. Broadband Penetration (fixed and mobile)
6%
92%
2%
Fixed access No access Mobile access (3G modem only)
Source: Teleco (2010) IDG (2010)

7. Source: NIC.br (2009)

8. Fonte: NIC.br (2009)

9. Few urban centers concentrate most technological options
OriginallyfromAtlasTeletime(2009)

10. Penetration rates are higher in the South, Southeast and
Center-West Regions
OriginallyfromAtlasTeletime(2009)

11. Main operators

12. Mergers and acquisitions resulted in:

13. 1 2,5x 2,7x 5x
Relative price of broadband
Source: IPEA (2010)

14. 3+ operators = price x
1 operator = price 3x
J.P. Morgan (2009)

15. Belford Roxo
Nb. operators: 1
Price: R$ 110
Rio de Janeiro
Nb. operators: 4+
Price: R$ 40
30 minute drive

16. The poor have to pay more for the same service

17. The Broadband Plan

18. 3 different challenges
Speed Price Coverage

19. 2 bottlenecks

20. Backbone Backhaul Access - last mile

21. Backhaul
points of
presence
•PoPs
implemented
before 2007
•PoPs
implemented as
result of new
universal service
obligations due
by the end of
2010
Source:

22. Operator A
Operator B
Operator C
Access networks Transport networks

23. Backbone Backhaul Access - last mile

24. ?
New 3G auction (Band
H)
3,5 GHz auction
450 MHz auction

27. Convergence
• Simple, convergent
rules
• Removal of barriers of
entry

28. Regulatory approach that enables new business
models.

29. And: a revival of a famous state owned company

30. State
intervention

31. Why use a state owned company?
• National security
• Public procurement rules provide a good
source for benchmark regulation
• Systemic planning of public facilities (eg.
roads, railways, electric grids)
• More flexible alternative to implement
public-private partnerships
• Less intrusive deverticalization as a means
to develop a more competitive wholesale
market

32. What can´t be done with Telebrás?

33. The limits of
• No discrimination by regulation against
privately owned companies - except on
public procurement of broadband services
• It is forbidden by law to establish
subsidiaries
• It is forbidden by regulation to provide
access (last mile) other than to
Government - except on cases where a 12
ministry committee evaluates there is no
reasonable offer

34. What is expected of ?

35. will
• provide broadband to Government agencies,
- federal, state and municipal.
• connect research facilities, hospitals,
community centers and places of public
interest to digital inclusion.
• offer wholesale access to backhaul and IP
connectivity to all other providers, at
nondiscriminatory conditions
improve competition
deploy a nation wide broadband bundle
of at least 512 kbps at less than U$ 15

36. Thank you.
Gabriel Boavista Laender
University of Brasília (UnB)
Telecommunication Law Study Group (Getel)
www.getel.org