1 Brazilian Governments move to promote Broadband access throughout the country Cristina Coutinho Moreira 8 September 2008, ITU Headquarters, Geneva, Switzerland.

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Brazilian Government’s move Brazilian Government’s move

to promote Broadband access to promote Broadband access

throughout the countrythroughout the country

Cristina Coutinho Moreira8 September 2008, ITU Headquarters, Geneva, Switzerland

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To promote the development of telecommunications in To promote the development of telecommunications in the country, so as to provide a modern and efficient the country, so as to provide a modern and efficient

telecommunication infrastructure, capable of offering the telecommunication infrastructure, capable of offering the best and most diversified services available, at fair prices, best and most diversified services available, at fair prices,

throughout national territorythroughout national territory

The MissionThe Mission

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To show the actions taken by the Brazilian To show the actions taken by the Brazilian Government Government in order to promote in order to promote Broadband access to all Brazilian Broadband access to all Brazilian

municipalities, with the participation of municipalities, with the participation of the incumbentsthe incumbents

The Presentation´s ObjectiveThe Presentation´s Objective

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Brazil – The TerritoryBrazil – The Territory

Brazil occupies almost half of South America’s

territory (47%), accounting for 8,5

million km2 (3,3 million square miles)

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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

Brazil - Political and Brazil - Political and Population AspectsPopulation Aspects

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Brazil’s Legal and Institutional Framework

General Telecommunications Law (LGT) – Law nº 9.472, July 1997

Public Regime Services Private Regime Services

Concessions

Continuity and universal service obligations

Authorizations

Market ruling

PSTN Cable TV, mobile Telephony, PSTN, etc

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“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”

Universal Service Obligations in Brazil

What does the Brazilian Universal What does the Brazilian Universal Service Obligation mean?Service Obligation mean?

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Goals of the Universal Service

Obligations

Availability of collective and individual access

Access to the disabled

Access to public or social institutions

Access to rural areas, unserved remote areas of the country

(…)

Goals of the Universal Service Obligations in Brazil

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Brazil’s Public Regime

The Incumbents have continuity and universal service obligations

Brazilian Incumbents

Universal Service

Continuity

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PGMUPGMU FUST FUST FUNDFUND

Concession Onus

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

The Cost of Universal Service Obligations in Brazil

1111

The lack of telecommunication infrastructure is the

main obstacle in attending all

Brazilians with Broadband access

Broadband Access in Brazil: The Challenge

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How to implement Broadband infrastructure throughout the How to implement Broadband infrastructure throughout the country enabling access to every Brazilian municipality? country enabling access to every Brazilian municipality?

How can PSTN incumbents help overcome this challenge?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

Broadband Access in Brazil: The Challenge

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Backhaul as a Universal Service Goal

Presence of Backhaul in Brazilian Municipalities - 2007

38%

62%

Backhaul No Backhaul

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B) Broadband Access Network

Backhaul instead of Telecentres

The Free Broadband in Schools Program

Actions taken by the Brazilian Government to implement the desired infrastructure:

A) Backhaul

Implemented Actions

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As a trade-off to the implementation of the

Backhaul, the incumbents were no longer obligated to

install and maintain the Telecentres

Backhaul as a Universal Service Goal

The Trade-off

Telecentres Backhaul

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Brazilian 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

Backhaul

MUNICIPALITYMUNICIPALITY

Backbone

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Backhaul as a Universal Service Goal

Backhaul Advantages

X

Telecentres with dial-up connection to internet

The Backhaul makes available the access to broadband, potentializing network and offer of

services

Backhaul

MUNICIPALITYMUNICIPALITY

Backbone

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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)

Backhaul as a Universal Service Goal

Backhaul Achievements

Decree nº 6.424, of April 4, 2008, altering the Decree nº 6.424, of April 4, 2008, altering the PGMU in forcePGMU in force

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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

2020

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

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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

Access Network Expansion The Broadband Program in Schools

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Anatel is supervising the Backhaul implementation and expansion capacity.

The change of direction will bring about broadband access to the majority of the population.

Next Steps

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Thank youThank you

Superintendence of Universal Service Superintendence of Universal Service

BrazilBrazil

Cristina Coutinho MoreiraExecutive Manager of Universal Service Contracts

[email protected]