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

This presentation: an overview of the reasons

and means of the Brazilian National Broadband

Plan

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.

A brief overview of broadband in Brazil...

Broadband penetration (fixed only)

6%

94%

Fixed access No access

Source: Teleco (2010) IDG (2010)

Broadband Penetration (fixed and mobile)

6%

92%

2%

Fixed access No access Mobile access (3G modem only)

Source: Teleco (2010) IDG (2010)

Source: NIC.br (2009)

Fonte: NIC.br (2009)

Few urban centers concentrate most technological options

Origin

ally

fro

m A

tlas T

ele

tim

e (

2009)

Penetration rates are higher in the South, Southeast and

Center-West Regions

Origin

ally

fro

m A

tlas T

ele

tim

e (

2009)

Main operators

Mergers and acquisitions resulted in:

1 2,5x 2,7x 5x

Relative price of broadband

Source: IPEA (2010)

3+ operators = price x

1 operator = price 3x

J.P. Morgan (2009)

Belford RoxoNb. operators: 1

Price: R$ 110

Rio de JaneiroNb. operators: 4+

Price: R$ 40

30 minute drive

The poor have to pay more for the same service

The Broadband Plan

3 different challenges

Speed Price Coverage

2 bottlenecks

Backbone Backhaul Access - last mile

Backhaul

points of

presence

•PoPs

implemented

before 2007

•PoPs

implemented as

result of new

universal service

obligations due

by the end of

2010

Source:

Operator A

Operator B

Operator C

Access networks Transport networks

Backbone Backhaul Access - last mile

?

New 3G auction (Band H)

3,5 GHz auction

450 MHz auction

Convergence

• Simple, convergent

rules

• Removal of barriers of

entry

Regulatory approach that enables new business

models.

And: a revival of a famous state owned company

State

intervention

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

What can´t be done with Telebrás?

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

What is expected of ?

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

Thank you.

Gabriel Boavista Laender

University of Brasília (UnB)Telecommunication Law Study Group (Getel)

www.getel.org