Brazilian Government’s move to promote Broadband access throughout the country Cristina Coutinho Moreira 8 September 2008, ITU Headquarters, Geneva, Switzerland 1 The Mission To promote the development of telecommunications in the country, so as to provide a modern and efficient telecommunication infrastructure, capable of offering the best and most diversified services available, at fair prices, throughout national territory 2 The Presentation´s Objective To show the actions taken by the Brazilian Government in order to promote Broadband access to all Brazilian municipalities, with the participation of the incumbents 3 Brazil – The Territory Brazil occupies almost half of South America’s territory (47%), accounting for 8,5 million km2 (3,3 million square miles) 4 Brazil - Political and Population Aspects 5th of the world’s most populous country, with approximately 190 million inhabitants A Federation composed of 26 States and a Federal District, distributed among 5 geographic regions 5.564 municipalities 5 Brazil’s Legal and Institutional Framework General Telecommunications Law (LGT) – Law nº 9.472, July 1997 Public Regime Services Private Regime Services Concessions Authorizations Continuity and universal service obligations Market ruling PSTN Cable TV, mobile Telephony, PSTN, etc 6 Universal Service Obligations in Brazil What does the Brazilian Universal Service Obligation mean? “to guarantee the right of every person or institution, independently of their location and socio-economic condition, the access to telecommunication services withheld in public regime” 7 Goals of the Universal Service Obligations in Brazil Availability of collective and individual access Goals of the Universal Service Obligations Access to the disabled Access to public or social institutions Access to rural areas, unserved remote areas of the country (…) 8 Brazil’s Public Regime The Incumbents have continuity and universal service obligations Brazilian Incumbents Universal Service Continuity 9 The Cost of Universal Service Obligations in Brazil PGMU Concession Onus FUST FUND Specific Fund FUST (only for PSTN)* * FUST has nearly US$ 4 billion and was used in 2007 for the first time to expand access to telecommunication services for the deaf 10 Broadband Access in Brazil: The Challenge The lack of telecommunication infrastructure is the main obstacle in attending all Brazilians with Broadband access 11 Broadband Access in Brazil: The Challenge How to implement Broadband infrastructure throughout the country enabling access to every Brazilian municipality? How can PSTN incumbents help overcome this challenge? Studies indicate that the needed broadband infrastructure is composed of a sum of: A) Backhaul B) Broadband Access Network 12 Backhaul as a Universal Service Goal Presence of Backhaul in Brazilian Municipalities - 2007 38% 62% Backhaul No Backhaul 13 Implemented Actions Actions taken by the Brazilian Government to implement the desired infrastructure: A) Backhaul B) Broadband Access Network Backhaul instead of Telecentres The Free Broadband in Schools Program 14 Backhaul as a Universal Service Goal The Trade-off As a trade-off to the implementation of the Backhaul, the incumbents were no longer obligated to install and maintain the Telecentres Telecentres Backhaul 15 Brazilian Backhaul Backbone MUNICIPALITY Backhaul Backhaul is a part of the PSTN high capacity core network, connecting the access network to the incumbent’s Backbone The Brazilian’s Government Policy, therefore, was to spread the Backhaul into all Brazilian municipalities as a Universal Service Goal 16 Backhaul as a Universal Service Goal Backhaul Advantages Telecentres with dial-up connection to internet The Backhaul makes available the access to broadband, potentializing network and offer of services Backbone MUNICIPALITY Backhaul 17 Backhaul as a Universal Service Goal Backhaul Achievements 3.439 Brazilian municipalities had no Backhaul Expansion of 200 000 km of infrastructure Benefits for more than 50 million Brazilians Investment around US$ 1 billion (when taking into account maintenance of the service until 2025) Decree nº 6.424, of April 4, 2008, altering the PGMU in force 18 Other public policies to promote Telecentres in Brazil Several initiatives to promote the spreading of Telecentres have been developed in Brazil. The GESAC Program Electronic Government at Citizen Care Service Center The Community Telecentres Program Install and maintenance rural Telecentres by the incumbents 19 Access Network Expansion The Broadband Program in Schools Access Network – last mile infrastructure, connecting the final user to the service operator Agreement between the Brazilian Government and the incumbents – Program that calls for Free Broadband in Schools 20 Access Network Expansion The Broadband Program in Schools Free Broadband in more than 56 thousand urban schools by 2025 Access to 83% of students in public schools - 37 million students By 2010, all municipalities will have broadband network 21 Next Steps Anatel is supervising the Backhaul implementation and expansion capacity. The change of direction will bring about broadband access to the majority of the population. 22 Thank you Cristina Coutinho Moreira Executive Manager of Universal Service Contracts cristinam@anatel.gov.br Superintendence of Universal Service Brazil 23