SAS Quadra 06 Ed. Ministro Sergio Motta CEP 70.313-900

Transcription

PASTE
SAS Quadra 06 Ed. Ministro Sergio Motta
CEP 70.313-900 - Brasília -DF
PABX: (61) 312-2000
CGC: 02.030.715/0001-12
Central de Atendimento: 0800-332001
Internet: www.anatel.gov.br
2000
APRESENTAÇÃO
INTRODUCTION
07
I. TELECOMMUNICATIONS
THEMUNDO
WORLD
I. TELECOMUNICAÇÕESINNO
11
II.II.TELECOMMUNICATIONS
IN BRASIL
BRAZIL
TELECOMUNICAÇÕES NO
17
II.1 - OThe
New
Model
Novo
Modelo
II.2 Significant
II.2 - FatosAspects
Relevantes
in the
daConsolidation
Consolidaçãoof
dothe
Novo
New
Modelo
Model
II.3- Impactos
Impact of
New
Model
II.3
dothe
Novo
Modelo
II.4
ANATEL
II.4
- AANATEL
19
23
29
37
BRAZILIAN
MARKET 45
III.III.O THE
MERCADO
BRASILEIRO
III.1-Cenário
Setting
III.1
III.2 Needs
of Society
III.2 - Necessidades
da Sociedade
45
49
IV. PERSPECTIVES
ON SERVICE 53
IV. PERSPECTIVAS
DE ATENDIMENTO
IV.1
Fixed Switched
Telephone
Service
IV.- Serviço
Telefônico
Fixo comutado
IV.2
Mobile Services
IV.
- Serviços
móveis
57
75
IV.2.1 Telephony MobileIV.2.1
Cellular
Service 77
- Telefonia
IV.2.2-
Trunking 95
IV.2.2
Despacho
IV.2.3 - Radiochamada
IV.2.3 Paging 99
IV.2.4- Outros
OtherServiços
Mobile Services
IV.2.4
móveis 103
IV.3 - Serviços
Fixed Network
Circuit
Services 105
fixos deand
Redes
e Circuitos
IV.4 -Outros
Other Serviços
Fixed Services
IV.4
Fixos 109
IV.5 IV.5
- Serviços
MassdeCommunications
Comunicação deServices
Massa 111
IV.5.1 IV.5.1
Subscription
- Por Assinatura
Services 113
IV.5.2
Radio Broadcast
IV.5.2
- Radiofusão
Sonora 127
IV.5.3 - RadiofusãoIV.5.3
de Sons
TVe Broadcast
Imagens 133
V. INVESTMENTS 139
APPENDIXES 141
A Definitions 143
B Significant Events in the Consolidation of the New Model 147
C Project Br@sil.gov 151
INTRODUCTION
INTRODUCTION
In an effort to advance a bold investment program, the Ministry of
Communications issued for the first time in 1995 the Recovery and
Expansion Program for Telecommunications and Postal Systems PASTE.
That publication was prepared as part of the initiative to restructure and
modernize the Brazilian telecommunications system. The second edition,
published in 1997, provided an outline of the new model, still in its
development stages, for Brazilian telecommunications and contained
updated investment proposals for the 1997/99 period and projections for
2000/2003. That edition provided an accurate rendering of the propitious
investment climate in the telecommunications sector and related activities
and demonstrated that the current setting represented only the beginning
of a process of redefinition triggered by the passage of Constitutional
Amendment 8, of 1995, which ended the monopoly of the state-controlled
companies in the Brazilian telecommunications sector.
The present moment is different, however. With the approval of the General
Telecommunications Law LGT which gave form to the new model and
created Anatel National Telecommunications Agency, the successful
privatization of the Telebrás System companies, the preparation of the
principal documents and regulations for the sector, the strengthening of
domestic and foreign investor confidence in the new model, the future is
now considerably brighter and more promising.
The impact of the restructuring and modernization of the Brazilian
telecommunications system and the role performed by Anatel have made
this an opportune time for publication of a new document, with the same
acronym as the previous document PASTE, which considers the
Perspectives on the Expansion and Modernization of the
Telecommunications Sector for the period 2000 2005.
The present edition focuses primarily on assessing the international
telecommunications context; after describing the setting from the beginning
of the 1960s to the first half of the 1990s, an outline of the new model is
offered. The purpose of the overview is to set forth the factors that made the
search for and immediate implementation of a new model for Brazilian
telecommunications imperative. The factors that drove the initiative are
discussed, although not just in general terms. Rather, highly positive facts,
figures, and indicators are presented that ratify the model and, more
important, demonstrate that Brazil has already entered the Information
Society and is in the process of preparing, within the telecommunications
field, to absorb the emerging technological innovations.
The document, therefore, strives to recreate qualitatively and quantitatively
the impact of the profound changes experienced by the Brazilian
telecommunications sector in recent years and the achievements brought
on by those changes. Using this assessment as the foundation, the document
sets forth in a concise and integrated fashion the perspectives for the
expansion of telecommunications services in the country in the immediate
7
INTRODUCTION
future. It is worth highlighting that the effort to implement this vision, which
is guided by the principles of universalization and competition, is directed
toward ensuring that the needs and rights of all of society are met.
It should be emphasized that in light of the convergence and development
of new technologies, which although anticipated have not yet been fully
defined, a revision of the document will likely be undertaken in 2002.
These Perspectives are, consequently, of interest to the government and
various segments of Brazilian society, particularly telecommunications
service operators, industries, and consumers. In addition to the reasons
enumerated above, the PASTE is of interest as a source of information
regarding the course of development of the Brazilian telecommunications
system presently and in the first years of the new Millennium.
Brasília, April 2000
Renato Navarro Guerreiro
President of the National Telecommunications Agency
8
I. TELECOMMUNICATIONS IN THE WORLD
Today, the nations of the world are, to a greater or lesser degree,
experiencing the effects of the Third Industrial Revolution, a phenomenon
that is fuelled by a new technological paradigm. At least since the XV
century, technological innovation represented the driving force behind the
great economic, social, and political changes experienced by humanity in
the second half of the Millennium. The present revolution is different,
however, because of the staggering pace at which technological conquests
are created and disseminated.
At the same time that the marriage of mechanics with digital electronics
has altered and continued to produce changes in the dynamics of industrial
production, the advent of telematics the integration of information
resources with telecommunications has generated profound changes in
the organization of work in industry, commerce, service provision, research,
the individuals daily life, health, and education. In sum, these sociological
phenomena have created a new social model the Information Society.
Within this setting, telecommunications have played a central role, for they
have concomitantly contributed to and benefitted from the new technological
paradigm. Consequently, telecommunications have strengthened and
consolidated the Information Economy, that portion of the economy that
has taken on increased significance in recent years around the world,
including in Brazil.
In the developed countries, where service offerings have been capable of
meeting demand and where deregulation and privatization are more
advanced, the growth rate of telecommunications has surpassed that of
various segments of the domestic economy. In those countries, the
introduction of new services, such as cellular mobile, pay-TV, and new
technological applications that have facilitated the convergence of
telecommunications services have strengthened, stimulated, and
contributed to the evolution of the sector.
Seen from another perspective, technological innovations have had a
significant and positive impact on the development of telecommunications.
It is important to note that modern and open regulatory models have reduced
barriers to the entry of new operators in the sector, while the use of new
technologies and the more efficient application of infrastructure have
reduced operational costs dramatically. In conclusion, the new model has
made the business viable for new competitors and contributed to the
accelerated expansion of the telecommunications sector.
The 1990s saw the most far-reaching policy reforms ever undertaken in the
telecommunications sector around the world. Through modernizing and
bold initiatives, entrenched monopolies were dissolved and their operating
companies privatized; moreover, new operators and services emerged. In
this new environment, old, and even new, ideas are modified or replaced in
increasingly shorter time intervals. During these years, a process of
11
liberalization and privatization involving developed and developing
countries among them Brazil founded on two principal factors was put
into practice.
First, the idea that the telecommunications sector represented a natural
state monopoly was discarded. A second reason, which led to extensive
and profound reforms in the 1990s, centered on the emergence, rapid
development, and convergence of information and telecommunications
resources. For example, while initially the Internet encountered barriers to
its development, these removed or modified in order to meet the demands
of the new services and their consumers, a development which brought with
it significant repercussions. Initially carried out in the developed nations,
these changes spread to more than 150 countries in the form of new
regulations and specific legislation.
Competition constituted another important component in the configuration
of the present-day global telecommunications setting. Competition,
increased by the flow of private capital into the telecommunications sector,
stimulated technological development through the search for effective
solutions for service provision and economic performance. The participation
of private capital in the cellular mobile and value-added services already
is a reality even in those countries that have not yet privatized their
telecommunications operators. As a consequence of this phenomenon,
international capital has at least some participation in the majority of cellular
networks around the world. Recent estimates indicate that international
investors hold interests today in more than one hundred cellular networks
worldwide.
The most significant development in both developed and developing
countries seeking to modernize their telecommunications systems has been
the unmistakable trend toward lower costs, tariffs, and prices. This process
derives from the assimilation of new technologies and competition among
operators, as is the case in Brazil. This trend should accelerate
internationally, since the telecommunications sector shows no signs of
slowing. To the contrary, the sector is continuously impelled by new
technologies, solutions, and services.
In the near future, it is expected that the platforms used in the various
telecommunications services will move beyond their present boundaries as
a result of the digitization and transformation of traditional networks and
be converted into more effective platforms capable of carrying far more
information than current platforms, thereby giving rise to the prospect that
those platforms will become an important catalyst for the convergence of
services. This phenomenon, which is already in evidence in several
countries and has been responsible for the reorganization of markets, has
led to mergers between companies providing different telecommunications
services. In some cases, these mergers have been surprising and, until
recently, unimaginable.
12
This phenomenon has given rise to new highly qualified international
operators with a significant presence in the global market. Increasing
convergence in the telecommunications field in conjunction with the
phenomenon of corporate mergers have combined to force legislators to
elaborate regulations that encompass the new services and are adequate
for the new technological paradigm. The need for new legislation has
become increasingly evident in countries where new technologies and
services are stimulated and established at an ever-faster pace. In the case
of Brazil, Anatel has devoted significant energy to this question, as will be
seen in the following chapter.
Another critical aspect, whether in Brazil or any other country that
determines to join or move in the direction of joining the Information Society,
involves new telecommunications regulations ordering the interconnection
of networks of different operators. The new regulations will be increasingly
required to allow users of one network to communicate with those of another.
The effort to find the ideal solution to this question, however, is hampered
by one principal problem: the question is addressed separately in the
commercial, regulatory, or technical sphere. It must be addressed in an
integrated fashion.
Indeed, as the experience of other countries reveals, interconnectivity is
essential for consolidating modern telecommunications systems. The most
effective solution to this question depends, principally, on establishing
appropriate regulations to ensure that the technological advances achieved
reduce the prices paid by consumers. Anatel has studied all aspects of this
question in depth.
Finally, another issue that regulatory agencies around the world have to
consider relates to the scarcity of numbering resources. This is a problem
that will tend to take on greater significance in the near future as a result of
the increase in demand for the current services and the emergence of new
telecommunications services. For many of the new services require domestic,
international, and, in some cases, global numbering. These factors point to
the idea of number portability, regardless of the operator processing the
communication, and at the same time to a broad-scale idea founded on the
expansion and development of intelligent networks.
13
II. TELECOMMUNICATIONS IN BRAZIL
At the beginning of the 1960s, the Brazilian telecommunications system
was based on a combination of networks and services operating under
precarious conditions. To ameliorate this situation, the Brazilian
Telecommunications Code was promulgated in 1962 and represented the
first significant juncture in the history of Brazilian telecommunications in
the second half of the century. The precarious condition of
telecommunications, which in some areas verged on chaotic, was rooted
not only in the poor quality of services and inadequate customer service
but was further aggravated by a lack of coordination among companies.
Moreover, none of these companies was subject to any rules regarding the
process of development.
The fragility of the system made long-distance telephone calls virtually
impossible for the consumer.
To complete this picture, the Federal Government, States, and
Municipalities could all provide telephone services directly or by means of
licenses, each level of government having authority to determine its own
tariff rates. Changes, therefore, were slow in coming.
To alter this scenario, the Brazilian Telecommunications Company
Embratel was created in 1965 with the mission of linking the entire country
and enabling automatic international communications.
In 1967, the authority to license telecommunications services was
concentrated in the hands of the federal government. In spite of this, by
the end of the 1960s, there were more than one thousand small and mediumsized telephone companies operating in Brazil, each acting in its own
interest.
The creation of Telebrás in 1972 must be considered another significant
step in the second half of the century to extricate the country from the poor
condition of its telecommunications system. Created to plan and coordinate
telecommunications throughout the country, Telebrás immediately acquired
and absorbed companies that provided telephone services around the
country and consolidated them into companies operating at the state level
the 27 companies privatized in July 1998.
Telebrás in fact succeeded in improving the condition of Brazilian telephony.
Moreover, Telebrás organized and professionalized the Brazilian
telecommunications system, in what must be recognized as a notable effort,
but one which ultimately was hampered by a combination of factors
originating outside Telebrás. For this reason, by the middle of the 1990s,
the system lacked the necessary investment levels and operated under an
inadequate tariff structure.
Tariff distortions had deep roots. Even before the creation of Telebrás, tariffs
were determined on the basis of criteria completely disconnected from the
cost of the corresponding services, a practice that would be unthinkable for
a company concerned with maintaining its financial health. With the advent
of Telebrás, the government began setting tariff rates, with the principal
focus being the containment of inflation.
17
II. TELECOMMUNICATIONS IN BRAZIL
The other factor that led to the exhaustion of the Telebrás System involved
the restrictions placed on the administration of the companies. Instead of
directing the individual companies on the basis of long-term goals and
results, it managed the investment and allocation of resources, which, in
addition to inefficient, deprived these of operational flexibility.
A third factor that led to the financial exhaustion of the companies
comprising the Telebrás System was the absence of competition arising from
the monopoly. For all of these reasons, figures indicated, in the period
leading up to the break-up of the monopoly of the state-controlled
companies, that telephone traffic in the local service had increased
significantly and, to an even greater extent, in the long-distance service,
for which companies could not meet the demand adequately.
Those indicators and others were not only unacceptable, but indeed
untenable for the Telebrás System, already on the verge of collapse. Because
of a lack of research and analysis work, there were no reliable figures
concerning the extent of demand for new lines or the number of individuals
and companies that were waiting to purchase a telephone line. What was
known was that the vast majority of residential telephones were in the hands
of the 20% of Brazilian families with a monthly income above R$ 1,000.00.
To make matters worse, the poorest segments did not have the means to
purchase residential telephone accesses, while those who were better-off
and could enjoy the privilege paid the ridiculous sum of R$ 0.44 for their
monthly subscriptions. Similarly, small and medium-sized companies could
not escape the problems caused by low-quality services, while, for their part,
the large corporations had the means to assemble private networks to meet
their needs and avoid the problems faced by the smaller companies. In the
first half of the 1990s, the Telebrás System companies, in addition to the
administrative problems provoked by the rise in operational costs, were not
even capable of fulfilling the requirements of the Expansion Plans, even
though these were paid for by the individuals or entities purchasing the
telephone lines.
The end of this period in the nations telecommunications history began in
1995 with the approval of Constitutional Amendment No. 8, wich opened
the Brazilian telecommunications sector to private capital. Soon after, the
first edition of the PASTE Recovery and Expansion Program for
Telecommunications and Postal Systems was published by the Ministry
of Communications and summarized by then-Minister Sérgio Motta as
follows:
a bold investment program promoted by the government
and significantly backed by the mobilization of private
resources human, management, and financial intended
to transform the Brazilian telecommunications sector into
an agent for national development with the capacity to
stimulate domestic productivity and guarantee universal
access to communications services.
18
II.1. THE NEW MODEL
A political-strategic revolution, defined by technical, economic, and social
parameters and initiated at the beginning of 1995 is transforming the
Brazilian telecommunications system. The revolution is based on the
sectors profound restructuring into a modern and dynamic system with
clear and reliable rules and complete transparency.
In the recent past summarized in the first section of this chapter when
the state telecommunications monopoly was in force, the Systems regulatory
framework was centered around the operating companies. Under the model
being constructed, the principal concern is with the needs and rights of the
citizen.
The decision to make individuals the central focus of the redefinition and
modernization of the Brazilian telecommunications system is more farreaching than it appears at first sight. In the near future, all localities with
more than 100 inhabitants, including Indian reservations, will be required
to have at least one public telephone available. That is one of the goals
contained in the PGMU General Plan of Universalization Goals

Figure II.1 that, in conjunction with those of the PGMQ General
Plan of Quality Goals Figure II.2 , licensed companies must comply with
and which represents an important instrument for the consolidation of the
new model, as will be discussed in the following chapter.
Figure II.1
Main Indicators of General Plan of Universalization Goals PGMU
19
II.1. THE NEW MODEL
Figure II.2
Principal Indicators of General Plan of Quality Goals - PGMQ
Universalization - access to the population as a whole with its mandatory
expansion and quality goals constitutes the first pillar in the new era of
Brazilian telecommunications. To ensure universalization, the LGT
classified telecommunications services according to the juridical regime
under which they are provided, public or private. This classification system
was implemented so that the government could ensure that operators
providing services under the public regime those provided by means of a
license or permission fulfilled their universalization and continuity
obligations. This category includes the various types of fixed switched
telephone service, within any scope, intended for use by the general public.
To ensure the projects viability, the General Licensing Plan PGO , among
other measures, divided Brazil into four regions, in order to introduce
competition, a subject discussed in following pages.
The second pillar supporting the new model involves the introduction of
competition among telecommunications service providers, which is
designed to produce a competitive environment with clear and reliable rules
so as to provide benefits to the consumer as well as to the individual who
20
II.1. THE NEW MODEL
does not yet own a fixed telephone line in his or her home or a cellular
access set. As pillars or key principles of the new model, the central ideas
underlying universalization and competition have begun to generate
perceptible results in the Brazilian telecommunications setting, which are
set forth in the following pages.
It should be emphasized that concern for the social questions contemplated
by the Universalization and Quality goals plans did not exist prior to
privatization. Although they provided a public service, under the previous
model telecommunications companies developed plans that did not subject
them to sanctions or to the loss of their licenses, as is the case under the
current model.
Founded on the break-up of the monopoly of the state-controlled companies
in August of 1995, this model and its overarching structure, as defined by
the LGT General Telecommunications Law, of July 1997, has two other
features which should not be overlooked. At the same time that it manifests
an unmistakable concern for social questions, as discussed above, it positions
telecommunications at the center of economic infrastructure.
In summary, because of the strategic vision that brought about the
restructuring of Brazilian telecommunications, the new model was
developed to simultaneously realize social and economic goals and
assimilate and incorporate the process of technological evolution, so as to
establish a foundation upon which Brazil can join, in the shortest time
possible, the so-called Information Society. Indeed, Brazil already is a
member of the Information Society and has the added distinction of
representing a point of reference internationally in the revolution that is
currently fuelling the construction of modern telecommunications models
throughout the world.
For all of the reasons enumerated, the nation is progressively and steadily
succeeding in adapting its telecommunications structures to the new global
context. Through this process, it is also striving to ensure that the efficient
application of technological resources culminates in the formation of
infrastructure that can be shared by all segments of Brazilian society. As
conceived in the political, strategic, and social vision of former Minister
Sérgio Motta, Brazil is moving quickly to organize its telecommunications
sector in a manner compatible with a global productive system relying not
only the dynamic of information, but also on the imposition of knowledge
over traditional means of production.
The facts demonstrate that the Brazilian telecommunications system took
important steps following the dissolution of the monopoly, particularly
during the eighteen-month privatization process completed in December
1999. Investments, which in 1998 alone exceeded $13 billion coupled with
the arrival of new technologies, equipment, and information services have
placed Brazil on the leading edge of the production, storage, use, and
21
II.1. THE NEW MODEL
dissemination of voice, data, text, sound, and image information. Brazil is
a member of the Information Society. Furthermore, the Brazilian
telecommunications system does not merely have a new, modern, and
dynamic profile; it is, to a large extent, prepared for the future.
22
II. 2. SIGNIFICANT ASPECTS OF THE
CONSOLIDATION OF THE NEW MODEL
The restructuring of Brazilian telecommunications, initiated in 1995 by
President Fernando Henrique Cardosos administration for purposes of
implementing a new model for the sector, is today not only fuelling a
revolution in the telecommunications field, but in other related areas as
well. This revolution already evidences a positive and perceptible social
and economic impact, despite initial skepticism about Brazils capacity to
privatize 26 cellular and 27 fixed line companies, and one long-distance
telephone company. In fact, the country succeeded and a went even further.
To open the market and launch this crucial and daring project, it was first
necessary to construct a regulatory framework. This framework has been,
for the most part, completed, and owing to the preparation and
implementation of a significant number of the regulatory documents, the
past five years have been marked by important advances in the Brazilian
telecommunications system. This progress has been possible because it
has been anchored in a modern legislative framework that exhibits a broad
political and socioeconomic outlook and is in step with the technological
paradigm currently revolutionizing telecommunications throughout the
world.
The first important milestone in the new era of Brazilian telecommunications
occurred in August of 1995 when the National Congress approved
Constitutional Amendment No. 8 ending the monopoly of the statecontrolled telecommunications companies and representing the countrys
first step on the road to the introduction of the sectors new development
model. Concomitantly, the energies of the Ministry of Communications
were wholly directed to the elaboration of the first edition of the PASTE,
then known as the Recovery and Expansion Program for the
Telecommunications and Postal Systems.
After completing these stages, the Ministry of Communications set its sights
on winning approval of the Minimum Law. The purpose of this piece of
legislation was to create a shortcut on the road to market opening, until
elaboration of the General Telecommunications Law was completed, which,
it was known, would take time. Approved in 1996, Law No 9295, the
Minimum Law, as it came to be known at the time, organized Mobile Cellular,
Satellite Telecommunications Signal Transport, and Limited services as well
as the utilization of the public telecommunications network in the provision
of value-added services. Along with the Minimum Law, the structure was
erected for the sale of authorizations for provision of B-band cellular
telephone services to domestic and foreign companies.
The set of documents produced by the end of 1999, especially those related
to the significant events that marked the course of Brazilian
telecommunications over the last five years, are mentioned in Annex B of
this publication. Nonetheless, space is devoted here to a brief discussion of
those documents considered essential to the overall process.
23
The first document was the LGT the General Telecommunications Law,
approved by the National Congress on 16 July 1997. It was this law that
authorized the privatization of the Telebrás System and defined the
regulatory framework for Brazilian telecommunications; the LGT signalled
to the domestic and international markets the beginning of a new era based
on clear and reliable rules designed to serve as the foundation upon which
the Brazilian government would undertake to restructure and modernize
the national telecommunications system. In fact, it was the LGT that created
Anatel for the purposes, first, of conducting the privatizations, and, then,
developing a permanent and comprehensive framework for regulatory,
granting, and oversight activities.
In conjunction with the General Telecommunications Law, five other
documents already conceived and implemented by Anatel in 1998 form
the basic regulatory structure of the new Brazilian telecommunications
model for fixed telephony. These are:
General Licensing Plan PGO. In effect since April of 1998, the PGO
divided Brazil into four regions for the provision of Fixed Switched
Telephone Service, determined the number of operators for the service in
each region, established the terms of the contracts and within which new
telecommunications service providers were to be given entry, all for the
purpose of promoting competition. The PGO was critical to the privatization
process. Based on the two-fold concept of greatest advantage to the user
and fair remuneration to the operating company, it was the PGO that
sustained the policy of universalization in telecommunications and
established the guidelines for competition among companies in the sector.
Initially, this competition consisted of duopolies only two competing
companies although after December of 2001 the way will be cleared for
the entry of new competitors.
General Plan of Universalization Goals PGMU. This document
represented another achievement in the regulatory arena. Approved by
Decree No. 2592, of May 1998, the plan defined the obligations of the
licensed fixed switched telephone service companies with respect to
universalization requirements. The PGMU constitutes a first important step
toward the universalization of telecommunications services. The enactment
of the constitutional principle of equality, which aims at meeting the needs
and ensuring the rights of the telephone user, can be summed up as follows:
the obligation of each fixed telephone concessionaire to offer all individuals,
within its area of operation, access to its services, of adequate quality,
quantity, and diversity and at reasonable prices, regardless of the
individuals geographic location or socioeconomic status, in rural areas,
small localities, and underdeveloped regions alike.
24
General Quality Goals Plan PGMQ. The PGMQ establishes the quality
goals that fixed telephone service providers must fulfill under the public or
private regime, using as their principal criteria the needs and interests of
the user. As with the PGMU, the set of goals contained in the PGMQ must
be fulfilled by all operators and did not exist prior to privatization. Approved
by the Council of Directors of Anatel through Resolution No. 30, of 29 June
1998, the General Plan of Quality Goals completed the set of basic rules
that would have to be complied with by all concessionaires and, where
applicable, beginning in 2000, by all authorized providers mirror-image
companies operating in the Brazilian fixed telephone industry.
Licensing Contract for the Provision of Fixed Switched Telephone Service.
This legal instrument establishes the terms of the concession contracts, the
conditions for FSTS provision by the concessionaires, the rights and
obligations of these, the obligations of the State, and Anatels prerogatives.
The concession contracts also set forth the rights of users as well as the
sanctions to which concessionaires that fail to fulfill their obligations shall
be subject while ensuring the enforcement of the directives and regulations
to which the concessionaires are subject, in addition to the provision of
services with quality. These concessions, moreover, represent a powerful
instrument available to the Agency and the general public to verify the
performance results of concessionaires.
Protocol Agreement Instrument created to permit the monthly
administration and provision of services between July 1998 when the statecontrolled companies were privatized and December 1999 and ensure
the fulfillment of universalization and quality goals, in addition to any other
goals considered significant within the scope of fixed telephony. The
Protocol provides Anatel with an effective means of service control to assure
the maintenance of quality and universalization and compatibilty with the
needs and rights of the user.
In addition to those five instruments, other instruments connected in a
general way to the services bear mention. They are:
Regulation of Telecommunications Services refers to the regulations that
supplement Law No. 9472, of 1997, and that are designed to define the
general conditions to which telecommunications service providers and users
will be subject, based on the regime under which those services are provided
(public or private) and the interests they serve (restricted or collective). This
instrument is linked to the specific regulations for each service, the structural
plans, and the technical directives, all of which compose the structural
framework that orders all activities involving the provision and realization
of telecommunications services in Brazil.
25
Regulation on the Verification of Control and Transfer of Control of
Telecommunications Service Companies orders the verification and
transfer of the controlling interest of telecommunications service companies
so as to fulfill pertinent legal requirements. It is designed to regulate the
process of control, prevention, and suppression of violations against the
economic order in the telecommunications sector.
Regulation on the Competitive Bidding for Telecommunications Service
Consessions, Permissions, and Authorizations and the Authorizations for
the Use of Radio Frequencies instrument that regulates the public
procedures for selecting providers wishing to obtain the consessions,
permissions, or authorizations needed to provide telecommunications
services.
Joint Regulation on Infrastructure Sharing among the Electricity,
Telecommunications, and Petroleum Sectors ensures the shared use of
rights of way, poles, channels, ducts, towers and inactivated metallic and
coaxial cables and fiber optics, without discrimination, at fair and reasonable
prices, and under equitable conditions.
In the mobile service, other fixed service, and mass communications service
segments, the following deserve mention:
Pre-paid Service Plan for the Mobile Cellular Service the Service Plan
for the MCS characterized by prior payment by the user for utilization of
the service, by means of calling cards or any other method ratified by Anatel.
Protocol Agreement for Monitoring the Provision Mobile Cellular Service
based on a combination of indicators - which must be periodically
presented by Anatel - that establishes the goals and quality levels which
the services must achieve.
Coordination Manual for Unidirectional Paging Systems and Coordination
Manual for Trunking Systems Member Countries of Mercosul establish
the procedures that should be implemented to coordinate radio-frequency
use by center, base, or relay stations intended for those services operating
in border regions of the Mercosul countries.
Plan of Authorization for the Special Paging Service defines the service
areas for provision of the Special Paging Service and establishes the channel
allocations to be used in and the approved number of authorizations for
each service area.
Term of Authorization for the Utilization of Telecommunications Transport
Networks SRTT this term, founded on Art. 207 of the LGT, rose out of the
need of the Telebrás System and independent companies to regularize the
services provided under the private regime, especially those services related
to data communication.
26
Concession Contract for the provision of Cable TV Service. Legal
instrument that establishes the conditions for provision of the Cable TV
service for the concessionaires.
Terms of Authorization for the provision of MMDS and DTH Services.
Legal instruments that establish the conditions for provision of these
services.
Regulation Relating to the Use of Subscription Mass Communications
Service Networks for the Provision of Value-Added Services instrument
that orders the use of subscription mass communications service networks
by value-added service providers.
Basic Plans for Radio Broadcasting (FM, MW, and TW (120m)) revised
instrument that establishes the distribution of frequencies channels used
in the provision of each of these services.
Technical Regulation Relating to the Provision of the Radio Broadcast
Service in Medium and Tropical Waves (120m band) instrument that
orders the operation of these services.
Reference Plan for the Distribution of Channels for the Community Radio
Broadcast Service PRRadCOM instrument that establishes the
distribution of frequencies channels used in the provision of the
Community Radio Broadcast Service.
Technical Regulation of Modulated Frequency Radio Broadcasters
instrument that orders the execution of these services.
To get a sense of the work performed by Anatel since its creation in
November 1997 until December 1999, we cite the elaboration and
publication of the following collection of documents: 5,981 acts, 208
resolutions, 35 regulations, 208 public invitations to comment, 375
administrative rulings, in addition to 131 rules and directives. The most
significant of these documents are listed in Appendix B.
27
II. 3. IMPACT OF THE NEW MODEL
The set of measures implemented, the problems overcome, and the goals
already reached since the end of the monopoly of the state-controlled
companies in 1995, and more specifically, in the post-privatization era, ratify
and confirm the soundness of the new Brazilian telecommunications model.
The result has been, as illustrated in Figure II.3, a dramatic increase in the
number of accesses in comparison to overall economic growth.
Figure II.3
Comparison Between Annual Growth Rates
The results achieved by the sector through December of 1999 are presented
below.
The 34 fixed telephone operators, including the 27 privatized in July of
1998, implemented 27.8 million fixed accesses through December of 1998,
exceeding by 10.8% the 1999 goal of 25.1 million established in the
concession contracts signed between the operators and Anatel. It must be
29
III. 3. IMPACT OF THE NEW MODEL
emphasized that the 1999 goal was surpassed several months in advance,
specifically, in September of 1999, when the operators completed the
installation of 25.7 million accesses. In analyzing the period from July of
1998 (20.2 million accesses) when the state-controlled companies were
privatized and the results of fiscal year 1999, the increase in installed
accesses reached 7.6 million a 37.6% rise.
In another area connected to the universalization goals the number of
public telephones the results were even better. In July of 1998, there were
547 thousand public telephones in service. While a goal of 713.2 thousand
public telephones was established, the result was, in fact, far better: 739.9
thousand public telephones. In sum, these results were 3.7% above the
original goal and represented a 35.3% increase over the number of public
telephones in service at the time of privatization (July 1998).
The figures for the universalization goals, especially those met in advance,
carry an added significance: they prove that the goals are realistic, contrary
to the view expressed initially by critics of the plan. Table II.1 illustrates the
fulfillment of these goals.
Table II.1
Protocol Agreements
30
In regards to the Quality Goals, the results obtained through December of
1999 were equally positive. The operators that had made a commitment to
Anatel to increase the rate of network digitization nationwide from 67.6%
(at the time of privatization) to 75% exceeded expectations: by December
of 1999, the rate of digitization had reached 84.6%. This indicator, which is
important for assuring the quality of telecommunications services,
represented another area that presented surprising results during the year.
In fact, the original goal was reached in June, when 78.6% of the networks
had been digitized. Additionally, other goals were met, as Table II.1
illustrates, including those connected to the rate at which dial tones were
obtained within 3 seconds, the volume of local and long-distance calls, the
volume of completed calls answered within 10 seconds, as well as the number
of requests for repairs per 100 public telephones.
Another development without precedence in the history of Brazilian
telecommunications bears mention. In December of 1998, there were for
the reasons discussed in the first section of this chapter more than 271
thousand undelivered accesses purchased through the Expansion Plans
throughout Brazil. Anatel ordered the responsible operators to pay R$ 28.9
million in compensations to users as a result of their failure to make the
service available within the maximum agreed upon term 24 months.
Shortly thereafter, by May of 1999, all the undelivered accesses had been
installed.
The purpose here is to demonstrate the contrast between the past and
present contexts. Signed commitments and an independent oversight body
that demands results and punishes violators now exist under the new
Brazilian telecommunications model. Prior to privatization, companies were
not required to meet expansion and universalization commitments. Each
company established goals based on its own corporate interests and
financial constraints and not necessarily the needs of society. Companies
simply were not required to fulfill commitments because they were
monitored by their own holding company Telebrás and, consequently,
not penalized for failing to achieve results. Today, on the other hand, a
company can be assessed a fine of up to R$50 million, depending on the
infraction it commits.
In December of 1994, on the eve of the revolution that would redefine
Brazilian telecommunications the following year, approximately 800,000
individuals throughout Brazil had a cellular access. With the end of the
monopoly of the state-controlled companies followed by the introduction
of competition for service provision by private entities, the cellular telephone
segment acquired a new dynamism. In December of that same year, the Bband service initiated commercial operation in the Federal District, which
fuelled new and positive advances for the mobile telephone service with
each passing day.
31
In July of 1998, one year following the opening of the market, the total
number of cellular accesses in service throughout the country was 5.6
million; a year later, in July 1999, the number of cellular accesses in service
was 10.9 million, a figure that even the most optimistic did not expect would
be reached until the end of 1999 or beginning of 2000. Growth continued.
By the end of 1999, there were 15.0 million cellular accesses in service,
corresponding to a density of 9.1 accesses per 100 inhabitants, compared
to 4.5 at the end of 1998. The number of accesses in operation and service
offerings also rose.
Moreover, it is important to emphasize that the cost of mobile cellular
accesses fell precipitously. In 1990, the activation of a cellular access in the
city of Rio de Janeiro cost R$36.6 thousand at current prices, and yet the
service was inadequate. In 1995, in the midst of the redefinition of the
countrys telecommunications system, the activation cost had fallen to
R$574.00, although those who owned a cellular phone confronted two
significant problems: first, the state companies could not meet the demand,
and second, they did not have the resources to invest for expanding and
improving their services.
With the entry of private operating companies, this scenario changed.
Competition put an end to the lines and confusion connected with activation.
Since 1998, it has been possible to activate cellular accesses at no extra charge,
at discounted prices, and at the outlet. In anticipation of the impending arrival
of the third and revolutionary generation of cellular service to Brazil, a new
phase of expansion of the cellular segment, impelled by pre-paid service a
service plan regulated by Anatel in 1998 is already in evidence.
Without activation or subscription costs, the ease with which a cellular access
can be purchased, in addition to the opportunities for controlling costs,
indicate that pre-paid accesses will have a significant share of the market,
as has occurred in the more developed countries. At the end of 1999, prepaid accesses represented 38% of all accesses, far above the beginning of
the year, when they made up only 3% of all accesses. Moreover, pre-paid
accesses comprised 86% of the growth in accesses in the mobile cellular
telephone segment in December of 1999. It will not be long before Brazil
will approach the levels of European and Asian countries, where 80% of the
market is held by pre-paid accesses, despite the relatively higher cost of
the service. Lastly, it is important to note that a new regulation will be
enacted for the mobile cellular telephone segment in 2000.
Brazils telecommunications sector achieved other positive results under the
aegis of the new model. Within the scope of fixed telephony, the reductions
in costs are putting telephony services within reach of all socioeconomic
classes. Until April 1997, to gain access to a residential telephone service,
R$1,117.63 was required to enter into the Expansion Plan, and even then,
the commitment to install the accesses was not always fulfilled by operators.
Because of the difficulties in obtaining a residential or commercial access in
32
urban centers like Rio de Janeiro or São Paulo, it was common for telephone
lines to be sold for R$7 to R$9 thousand, a sum that impeded a large
percentage of families from acquiring a residential accesses.
The new Brazilian telecommunications model changed this picture, even
before the introduction of competition planned for the year 2000, with the
entry into operation of mirror-image companies to compete with existing
fixed telephone operators. Owing to the rules established by Anatel to serve
the interests of all citizens, the activation of a fixed access costs today
approximately R$50.00 in most states, although only R$11.77 (not including
taxes) in Goiás, the Federal District, and Paraná. To summarize, access to
fixed telephony is within reach of a growing percentage of the population,
as mandated by the principle of universalization (a telephone for everyone).
The fact is that the new model has induced changes that would have been
unthinkable during the monopoly. In the post-privatization era, the user is
paying less for a better and more diversified service. In 1994, the basic
package (average bill) for fixed residential accesses (activation,
subscription, local pulse-based billing (pulso local), prices for domestic and
international long-distance calls) cost R$ 52.00; at the end of 1999, it had
been reduced by 20%, to R$ 42.00, at face value. Considering inflation (IGPDI variation) during that period, the reduction was actually closer to 50%.
One of the most significant aspects of this setting is that prior to the new
model the poorest segments of society did not dispose of the resources to
enjoy the benefits of fixed residential telephony. More than one thousand
reais were needed to enter into an Expansion Plan, while if an individual
turned to the black market, a fixed telefone access cost almost as much as a
new economy car. For this reason, virtually all residential accesses belonged
to the wealthiest 20% of Brazilian families. Furthermore, the affluent
benefitted from the ridiculous monthly subscription charge of R$ 0.44, which
has now been raised to R$ 11.70, an amount perfectly compatible with the
service. Indeed, it was this change that allowed the previous activation
rates to be lowered and compensated for and that opened the door to fixed
telephony to millions of Brazilian families until that time excluded from
this benefit.
Upon completion of the privatization phase, the new Brazilian
telecommunications model promoted changes and achieved positive results
in areas other than telephony. One of these successes occurred in Satellite
Services, previously provided exclusively by Embratel. Anatels regulatory
activities opened space for other companies within this segment, promoted
competition, which increased service offerings, and reduced prices. In the
end, these steps, which were unimaginable under the old model, favored
the consumer.
In terms of direct competition, another important development was the
introduction of competition into the domestic and international long33
distance segment in early July 1999. Under the new model, the user has
the option of choosing his or her service provider for each long-distance
call, a benefit found in few countries today. This alternative thrust the
operating companies into an environment of permanent competition, in
which, as planned, quality, tariffs, and prices are fundamental to attracting
subscribers. By August, shortly after its introduction, the competition among
operators already offered promotional discounts of up to 25%, a development
that brought with it unquestionable benefits to consumers.
It should be noted, however, that in spite of the efforts undertaken to now,
two problem areas persist, although they are close to being resolved. In
some areas, telephony service has not yet reached stable levels of quality.
Additionally, there is a repressed demand for fixed accesses accumulated
over decades of the monopoly, which is a source of understandable
indignation on the part of telephone line applicants. These weaknesses
are not only in the process of being overcome, but should be completely
erased from the Brazilian telephone setting with the entry into operation of
the mirror-image companies.
Because the mirror-image companies operate in the same areas and
provide the same types of services as the incumbents, they enjoy more
flexible rules. To compensate for the significant advantages enjoyed by
incumbents trademark, structure, client base the mirror-image
companies have been authorized to use WLL Wireless Local Loop
technology on an unrestricted and exclusive basis for almost two years. With
this technology, mirror-image companies will not be dependent on the
slow and costly cabling process for reaching the subscribers business or
home, whether that subscriber resides in an urban center or a rural area. In
other words, the mirror-image companies will reach and gain a significant
share of the fixed telephone market in a short time, thereby making them
competitive, ensuring strong competition, and helping to establish a
timetable to meet repressed demand.
Competition, stimulated and regulated by Anatel, also fostered progress in the
area of Mass Communications, where in 1999 alone new competitive biddings
opened the market to 121 additional cable TV operators and 53 MMDS
terrestrial microwaves. The grants for provision of the Cable Television Service
and MMDS now cover urban areas with 16.1 million and 14.2 million
households respectively. Therefore, there is a vast competitive area within
which operators have the opportunity to expand the number of subscriptions
for their services, which approximated three million by the end of 1999.
It is important to point out that until 1997 only three economic groups held
more than half of the grants for the provision of PayTV Services, in the
Cable TV and MMDS modes Figure II.4. By the end of 1999, as a result of
the competitive biddings sponsored by Anatel which paved the way for new
operators to enter the market, that same percentage was distributed among
more than eight groups.
34
Figure II.4
Distribution of Pay-TV Grants by Economic Group
The reduction in market concentration can also be evidenced through an
analysis of the households covered by those grants. As Figure II.5 illustrates,
up to 1997 only two economic groups served more than two-thirds of
Brazilian households covered by grants. By 1999, this setting had shifted.
That same fraction of households was now served by more than six economic
groups.
Figure II.5 Distribution of Households Covered by Pay-TV Grants by
Economic Group
35
Finally, focus is directed to the results in the area of oversight. The
government privatized the state-controlled telecommunications companies,
but in doing so, it did not compromise with respect to the interests of citizens
in this area. To the contrary, it extended and tightened its control and
oversight activities by placing under the direction and guidance of Anatel
the activities encompassing Special, Mobile Cellular, Fixed Telephone,
Specialized Limited, and Private Services, in addition to Mass
Communications Services.
Consequently, in 1997, before the National Telecommunications Agency
was established, 7,697 inspections of radio-frequency broadcast stations
were performed. In 1998, Anatel directly assumed oversight authority and
with its structure still incomplete was nonetheless able to carry out 15,443
inspections. In the following year, the Agencys oversight experts conducted
75,297 inspections, a 388% increase over 1998. Through 1999 alone, this
effort led oversight agents to shut down 2,986 clandestine stations, launch
4,077 proceedings to investigate infractions (3,398 in 1998), and evaluate
3,859 proceedings to investigate infractions (3,015 in 1998).
These did not constitute simply quantifiable results. Anatel introduced
innovative procedures by which the service user, harmed by the interruption
of his or her service during determined periods, would be compensated by
the service licensee. Cases of cross-ownership that went against the spirit
of the legislation and hampered competition were treated with equal
severity, in order to ensure that the normal conditions under which the model
was originally introduced were reestablished.
36
II. 4. ANATEL
The mission on which the government embarked, namely to break-up the
monopoly of state-controlled companies in telecommunications and adopt
a new model within a competitive environment under the aegis of economic
liberalization and new rules, would have been virtually impossible in the
absence of a regulatory agency. In other words, it was not enough to open
the market and privatize the Telebrás System.
The new Brazilian telecommunications model, defined by the General
Telecommunications Law (LGT) Law No. 9472/97, which created the
National Telecommunications Agency implied organizing the provision
of telecommunications services and, at the same time, winning the
confidence of potential investors, both national and foreign, with respect to
the solidity and transparency of its rules. In short, Anatel was created to
secure the viability of the new Brazilian telecommunications model and
prepare the country to join the Information Society. Moreover, Anatel was
given a permanent attribution: that of regulatory authority. It is in this way
that the Agency will move beyond the period of transition to and construction
of the new model.
Inaugurated on 5 November 1997, Anatel was designed to carry out the
attributions conferred on it and more. As a regulatory authority, the Agency
is vested with regulatory, licensing, and oversight powers. Its
responsibilities, however, are more extensive. Anatel has the duty to assure
the entire population access to telecommunications services at reasonable
tariffs and prices and under adequate conditions, to promote the expanded
use of networks and telecommunications services, to strengthen regulatory
and oversight activities in those areas in which the state has ceased to play
a corporate role, and, it is worth reaffirming, to promote universalization
and the introduction of competition, with the primary objective of serving
the overriding interests and rights of citizens.
Invested with an innovative institutional character, Anatel represents a
significant and pioneering juncture in the states changing stance relative
to the provision of public services. The Agency enjoys administrative and
financial autonomy, and its actions are guided by complete transparency.
Its decisions are binding and may only be altered by the courts.
As the product of the same strategic vision that in recent years has
restructured and reoriented the course of Brazilian telecommunications,
Anatel comprises a special independent agency linked to the Ministry of
Communications. It wields multiple powers as the regulatory, licensing,
and oversight agency for the Brazilian telecommunications system. The
Agency has the responsibility to adopt the measures necessary to serve the
public interest and develop Brazilian telecommunications. In carrying out
its duties, it must adhere to the principles of independence, impartiality,
legality, impersonality, and disclosure.
37
II. 4. ANATEL
The National Telecommunications Agency is comprised of two high bodies
the Council of Directors and the Advisory Council.
Council of Directors Its members, who are chosen by the President of the
Republic and approved by the Federal Senate, forms the body responsible
for decision-making in the Agency. Councilors are appointed for terms of
five years, except for those of the current and first group. These will serve
for terms of 3 to 7 years in order to establish a process by which Councilors
are replaced at regular intervals, specifically, one per year.
The Council of Directors exercises its powers and functions, which derive
from the General Telecommunications Law (LGT), the Regulation of the
Agency, and its Bylaw, and pronounces its determinations through
resolutions, briefs, judgements, acts, and administrative rulings. Its
decisions are taken by means of sessions, meetings, or deliberative voting
a procedure by which the votes of Councilors are collected without the need
for a meeting or session, thereby expediting the decision-making process.
Strategic Committees - Under the jurisdiction of the Council of Directors
and headed by its members, the Strategic Committees are bodies intended
to develop studies, proposals, and recommendations on specific matters in
which representatives of different institutions participate. Presently
operating are: the Committee for National Information Infrastructure (CINI), Committee for the Defense of the Economic Order, Committee for Use
of the Spectrum and Orbit, Committee for the Universalization of
Telecommunications Services, Committee for the Defense of
Telecommunications Service Users.
Advisory Council - It is an institutional body of public participation in the
activities of Anatel. The Council is composed of 12 members chosen by the
Federal Senate, the Chamber of Deputies, the Executive Branch, classes of
entities providing telecommunications services, consumer-protection
entities, and entities representing society at large. Each of these institutions
and entities occupies two seats on the Council.
The members of the Advisory Council are appointed for terms of three years,
with the exception of the current and original members, of which one-third
has a term of one year, one-third a term of two years, and one-third a term of
three years. The members of the Council are designated by the President
of the Republic by means of an appointment and are not remunerated. The
list of the Advisory Councils primary duties indicates the way in which the
participation of Brazilian society in Anatels decisions is carried out.
The Council renders opinions regarding the General Licensing Plan and
the General Plan of Universalization Goals and the governments
telecommunications
policies,
offers
advice
on
the
institution or elimination of service provision under the public regime,
assesses the annual reports of the Council of Directors, and may request
38
II. 4. ANATEL
information pertaining to acts it executes. Summaries of the Advisory
Councils decisions are published in the Government Gazette and,
simultaneously, in the library section of the Agencys Internet site, where
the minutes of the Councils meetings are available as well.
Organizational Structure In Anatel, the president of the Council of
Directors also assumes the position of Executive President of the Agency.
As such, he or she exercises authority over all areas of the Agencys
institutional responsibilities and attributions, in addition to its operational,
functional, and organizational responsibilities and attributions. The
Presidents staff is composed of a cabinet and advisory bodies Legal
Counsel, Inspector General, International Advisory Staff, Consumer
Relations Advisory Staff, Technical Advisory Staff, and Congressional and
Public Relations Advisory Staff. An Executive Superintendent assisting the
President in the discharge of his or her executive, institutional, and technical
duties. Additionally, there is an Office of Ombudsman whose chief officer
is nominated by the President of the Republic and who acts independently
in the preparation, on a biannual basis or when convenient, of critical
assessments of the Agencys performance, which are then submitted to the
Advisory Council, the Ministry of Communications, other agencies of the
Executive Branch, and the National Congress.
The Agencys organizational and operational structure is divided into
Superintendencies among which the multiple executive attributions of
Anatel connected to the Brazilian telecommunications system and the
Agency s administration are apportioned. The duties of the
Superintendencies, distributed and classified by agency, are outlined in
the Agency s Bylaw, which is available on Anatels Internet site,
www.anatel.gov.br. The activities of the superintendencies are described
below:
Superintendency for Public Ser vices It is responsible for
telecommunications services provided under the public regime, including
the regulation of the activities of operating companies. Its duties are
distributed among three general administrative spheres Rules and
Standards, Service Licensing and Management, and Competition and
Universalization.
Superintendency for Private Services The superintendencys activities
cover telecommunications services provided exclusively under the private
regime in the collective or restricted interest, except for those intended for
mass electronic communications. Its duties are distributed among three
general administrative spheres Satellite and Global Services, Personal
Terrestrial Communications, and Private Telecommunications Services.
Superintendency for Mass Communications Ser vices The
superintendency is responsible for telecommunications services intended
for electronic mass communications, which are services provided under the
39
II. 4. ANATEL
private regime in the collective interest, including the various types of payTV services, as well as all of the technical matters connected with TV and
radio broadcasting. Its duties are contained within two general
administrative spheres Planning and Regulation and Service Licensing.
Superintendency for Radio Frequencies and Oversight The
superintendency is responsible for defining the technical criteria associated
to the spectrum (frequency band); for the certification of telecommunications
products; for proposing the frequency band Assignment, Distribution, and
Allocation Plans; and for overseeing utilization of the spectrum and radio
communication stations. Its duties are contained within two general
administrative spheres Certification and Spectrum Engineering and
Oversight. This last sphere includes the branch offices of Anatel installed
in every state of the union.
Superintendency for General Administration The superintendency is
responsible for providing support for Agency activitities in the areas of
Planning, Budget, Finance, Human Resources, Infrastructure, and
Information Management. Its duties are distributed among three general
administrative spheres Planning, Budget and Finance, and the
Administration and Management of Information. The superintendencys
activities include the collection of fees due to the Telecommunications
Oversight Fund FISTEL and overseeing the system of procurements
through auctions and public tenders and the virtual library, two public
service innovations introduced by Anatel which are discussed in following
pages.
The National Telecommunications Agency is a juridical entity with its own
identity, which is distinct from the traditional model of government entities
under the public law. The traditional models are unsuitable to and would
impede Anatel from fulfilling its mission. For the traditional models under
the public law necessarily entail submission to a juridical regime that is
incompatible with the conduct demanded of a regulatory agency.
Anatel is not subject to any form of hierarchical control. Contrary to the
circumstances under which Brazilian telecommunications operated prior
to the implementation of the new model, the National Telecommunications
Agency is not subordinate to any of the three branches of government, nor
does it have ties to any telecommunications operator.
Adding to this independence is the Agencys financial autonomy. The
Telecommunications Oversight Fund (Fistel), which the Agency is
responsible for administering, pursuant to Law No. 9472/97, provides Anatel
with a secure source of reserves through which it can finance its essential
activities.
40
II. 4. ANATEL
The composition of the different bodies of the Agency s Senior
Administration prevents the imposition of any single individual and fosters
broad transparency in decision-making, as the General Telecommunications
Law prescribes. All matters examined, planned, or decided by Anatel are
publicly disclosed, except in cases in which disclosure would violate legallyprotected confidential information or an individuals privacy. Matters for
public disclosure include acts, resolutions, rules, and reports designed to
support the decisions adopted, the dates on which Council meetings are to
be held, as well as the dockets and minutes of the meetings, all of which are
available in full-text form under the library section of the Agencys updated
Internet site, www.anatel.gov.br.
The Public Invitation to Comment constitutes another distinguishing factor.
Before any normative act of Anatel is voted on by the Council of Directors, it
is submitted for public comment, or, in other words, made available to the
general public in the Government Gazette, the Agency library, and on its
website. The comments received are examined by the Council, responded
to, and whether adopted or not, made available to the public in the Agency
library. Furthermore, through the Advisory Council, the public participates
actively in the Agencys decisions, as has been mentioned.
Contracting by the Agency except for that involving civil engineering
services, which must comply with the legislation on contracting of the Public
Administration is undertaken through competitive biddings, using
innovative approaches, conducted on the basis of auctions or invitations
tender. In contrast to the usual practice, Anatel adopted the auction as an
instrument for the purchase public goods and services. In the auction, public
sessions are held at which competitors make proposals or bids to supply
Anatel. Services for which there is a limited number of providers are
contracted by means of invitations to tender, an innovative process with its
own rules. These administrative procedures have resulted in excellent and
reliable business deals for Anatel and attracted the interest of the public
and private sector alike.
Anatels interaction with society at large is considerable. With the publics
direct participation in Agency decisions through its Advisory Council
representatives, the Committees, and Public Invitations to Comment, and
the access provided by the virtual library, as discussed above, the
relationship between Anatel and society, in both directions, is complemented
by the following: a weekly Press Meeting with the president of the Council
or one of its members for purposes of informing the public about the principal
decisions of the Council of Directors, interviews, and the daily
communication of information, Citizen Halls, which are facilities already
operating in some state capitals and where any interested party can initiate
a legal proceeding or make any inquiry to the Agency (the Citizen Halls
will be implemented in all state capitals), and large and modern Service
Centers (Call Centers) to receive complaints, suggestions, criticisms, and
requests for information on questions related to the Brazilian
41
II. 4. ANATEL
telecommunications system. The Centers, which will be available 24-hours
a day, including weekends and holidays, can be contacted free of charge
at the following number: 0800-332001.
In conclusion, the discussion above sets forth the most significant factors
that make Anatel a model agency within the sphere of Brazilian public
services. But one factor in particular has made this possible: the highly
qualified staff of the National Telecommunications Agency.
42
III. THE BRAZILIAN MARKET
III. 1. SETTING
What makes up Brazilian telecommunications service market? The answer
is as simple as it is stimulating. It is comprised of the individuals or entities
that benefit directly, in some way, from the services offered by the
telecommunications sector. It is comprised by all Brazilian people, its
companies, and institutions, for the broad interest in telecommunications
services is not confined to a narrow segment of society at large. Owing to
the benefits they can generate, the need for and interest in
telecommunications services extend from the uneducated to the scientist,
the businessperson to the worker in the informal sector, from the inhabitants
of large urban centers to those still isolated in remote localities of the
countrys interior. And it is this market landscape that ratifies the social
vision contained in the principle of universalization, one of the pillars of
the new Brazilian telecommunications model.
While on the one hand, the basic outlines of the needs and demands of
Brazilian society for telecommunications services is similar to that of other
countries, on the other, it displays unique characteristics. So that all
segments of society can be served equitably, it is crucial that this landscape
be fully understood.
The similarities with other countries are striking. Because Brazil has
followed recent international trends in opening its market, modern capital
and technologies have flowed into the country. That has permitted highincome Brazilians, beginning in metropolitan areas, to have access to
innovations arising from the telecommunications sector almost at the same
time as residents of more developed countries. This phenomenon has
dramatically altered the landscape regarding internal demand.
With respect to the unique or specific conditions of the Brazilian market,
the issue is more complex. Brazil is the only country in the world that has,
at the same time, a vast territory (8.5 million km²), a population above 100
million (165 million), a Gross Domestic Product that in 1999 approximated
R$1 trillion, an average per capita income (R$6,000) in comparison to other
countries, and a single, unified language throughout the country.
The Brazilian market is vast, but it is hampered by regional inequalities,
internal migratory displacements, income disparities, and cultural
differences; the country depends on and is significantly driven by the
informal sector and suffers from discrepancies in demographic
concentration and regional income distribution. For example, the
concentration of population in the southeast region is 20 times greater than
in the North region, as Figure III.1 illustrates.
45
III. 1. SETTING
Figure III.1
Demographic Density
Regarding the distribution of income, it can be seen that in the southeast,
the wealthiest region, the per capita income is almost three times greater
than in the northeast, the poorest region - Figure III.2.
Figure III.2
Per Capita Income by Region
46
III. 1. SETTING
As regards the characteristics of the Brazilian market that are both similar
to other countries and specific to the country, it is critical that the recently
implemented model be supported by vigorous regulatory actions so as to
ensure that competition in telecommunications effectively serves all of
society. These actions must be directed toward encouraging companies to
serve not only high-income segments, but also those that, because of their
unique characteristics, do not comprise part of the telecommunications
service market. This segment, which represents a significant percentage of
society, has not yet been incorporated, however not because it could not
derive benefits from the sector, but because the conditions that would enable
that segment to fully enjoy those benefits have not been created. Therefore,
it is essential that the regulatory model permit and promote the effective
regulation of demand to make possible the inclusion of new consumers in
the telecommunications service market and, in this way, become an effective
catalyst for national development.
As was the case with previous editions, the market concept that
telecommunications services should be linked to the benefits they generate
for society was a guiding principle in the preparation of this document. For
the reasons put forth, in preparing this edition, and as will be seen
subsequently, the Brazilian telecommunications market was considered on
the basis of the following segmentation: families urban and rural;
companies agricultural, manufacturing, commercial, and service;
government bodies federal, state, and municipal; other entities
associations, clubs, unions, embassies, etc.
Table III.1 sets forth the reference data employed for the planning forecasts
adopted for the 2000 to 2005 period.
Table III.1
Basic Reference Data 1994 / 1999 / 2005
INDICATOR
UNIT
1994
1999
2005
Population (FIBGE)
Urban
Rural
Millions
Millions
Millions
154.8
116.1
38.7
165.0
131.8
33.2
178.1
145.2
32.9
Families (FIBGE)
Urban
Rural
Millions
Millions
Millions
40.7
31.5
9.2
43.8
35.1
8.7
47.3
37.9
9.4
Millions
Thousands
Millions
4.4
17.0
1.3
5.3
20.0
1.6
7.7
20.0
2.3
R$ Billions
884
R$ Thousands / person 5.7
Inhab./km2
18.21
990
6.0
19.4
1300
7.4
20.9
Companies (*)
Governmental Organizations (*)
Non-governmental Organizations (*)
Gross Domestic Product (Central Bank) (**)
Per capita GDP (**)
Demographic Density
(*) estimate (**) 1999 Reais
47
III. 2. NEEDS OF SOCIETY
Brazil today boasts an extensive and technologically advanced array of
telecommunications services, a qualitative asset that has placed the country
in an important position on the international stage. In quantitative terms,
meanwhile, the increasingly rapid response to demand for fixed and mobile
telephony can be evidenced. The competitive environment generated by
the arrival of mirror-image companies into the fixed telephony market
should accelerate this process and satisfy the remaining unmet demand,
principally in some of the large urban centers.
Yet, a considerable proportion of Brazilian society still lacks
telecommunications services. The major problem is that this large portion
of society will not be able to be served by existing service options and the
liberalized competitive environment. In other words, within this setting it
will not suffice to simply offer telecommunications services. Rather, the
development of new alternatives capable of overcoming obstacles related
to the countrys vast economic, geographic, income, and cultural disparities
will be required; furthermore, it will be necessary to create integrated
programs that make available applications designed to meet individual and
group needs.
The challenge is enormous, a fact that only serves to make the market all
the more attractive to current and future operators, when the needs that
this document subdivides into various classes are considered. The first class,
and the one that is most easily tackled, includes those needs that the existing
services are capable of meeting. Here, all that is required is an increase in
the supply of services, as is the case today in some urban centers.
The second class of needs consists of those that will be met in the normal
course of competition. This case includes telephony services demanded
by the income groups directly below those already served. This market
scenario will require operators to come up with new methods for serving
customers, as already exists in the mobile cellular telephony segment where
pre-paid services have emerged as a more accessible alternative to
conventional cellular services.
The third class encompasses those needs that do not coincide with the
interests of companies competing in the market. It is important to
emphasize, nonetheless, that these interests could be awakened and fuelled
through regulatory actions implemented to ensure service for small and
remote localities, a growth initiative mandated in the General Plan of
Universalization Goals now in force.
Finally, the fourth class involves the needs that will have to be met and paid
for by society at large, as is already the practice in several countries that
have completed the modernization of their telecommunications systems.
In the Brazilian case, this will be accomplished with resources of the FUST
Telecommunications Service Universalization Fund (Fundo para
Universalização de Serviços de Telecomunicações).
49
III. 2. NEEDS OF SOCIETY
The needs of the Brazilian people with respect to telecommunications
services can be assessed based on the ends associated with the potential
demand. The most important of these are the basic needs connected to
education and health, whose precarious condition in some areas of the
country could be improved through the application of modern
telecommunications resources already available domestically. A second
strata of needs, yet no less significant, include, for example, support for
production, public security, and government services.
The fulfillment of these needs is prescribed in the Br@sil.gov program, a
project developed by the Committee on National Information Infrastructure
C-INI, approved by Anatel, and submitted to the Executive Branch in
late-1999 that can be summarized as follows:
An ambitious program designed to integrate the
telecommunications systems of the Executive, Legislative,
and Judicial Branches at the Municipal, State, and Federal
levels, thereby promoting the convergence of their
telecommunications networks into a bidirectional
Information Highway an electronic highway built with
telecommunications and information resources connected
to the Internet and capable of transmitting voice, text,
images, and sounds. The Information Highway must extend
throughout the country with the help of Electronic Points
of Presence (PEP), principally in the smallest and most
remote localities. The program opens new frontiers for
telemedicine and teleducation while making available to
society an instrument that enables the search for
information and citizen participation in discussions
involving the national destiny.
A more extensive description of the Br@sil.gov program is provided in
Appendix C of the present document; the full text of the program is available
in Anatels conventional and virtual libraries at www.anatel.gov.br.
Telecommunications have characteristics that make them essential, and
for this reason, it is a service that all socioeconomic classes need and
covet. It is also a central component of economic infrastructure. This
socioeconomic vision, like the governments determination to integrate
the entire country into the Information Society, opens a significant
market horizon. More important, the results obtained to this point
confirm the rationality, modernity, and reach of the new Brazilian
telecommunications model; indeed, they signal that the preparations are
underway to build the Brazilian market into one of the most promising
among the developing countries.
50
IV. PERSPECTIVES ON SERVICE
The profound changes that the Brazilian telecommunications sector has
been undergoing, such as the introduction of new technologies, the opening
of the market to competition, the privatization of telecommunications
services, have been accompanied by the evolution of consumer needs and
demands. To promote the growth of the sector in the midst of these changes
and in accordance with the needs of the country, a new regulatory framework
is being consolidated founded on two fundamental pillars: universalization
and competition.
This process of transformation began with the dramatic expansion of the
telephone network, as it permitted demand for telecommunications services
to be met under reasonable and homogenous conditions throughout the
country. Through this process, these changes aim at eliminating existing
regional inequalities and increasing social equilibrium and, consequently,
facilitating the lives of citizens and promoting the growth of the country.
As a result, in the near future a scenario will exist in which low-income
groups will have access not only to basic telephony, but also to the Internet
and other services of public interest. More important, these resources will
be capable of eliminating existing barriers with respect to public access to
essential services, such as education and health.
The telecommunications sector can contribute to ameliorate inequalities
by triggering an increase in service offerings, in accordance with the specific
needs of all segments of society, especially the poorest groups.
For purposes of disseminating education to the poorest groups located at a
distance from the large urban centers, the Brazilian government created
programs such as TV ESCOLA and PROINFO (mass-based educational
programs) that require universalized telecommunications infrastructure.
Once a stage is reached where the population has access to that
infrastructure, applications such as teaching at a distance, teacher training,
school matriculation controls, Internet access, virtual libraries, book banks,
national awareness campaigns, among others, will be transformed into
modern techniques that employ technological capabilities.
In regards to those needs related to health, an enormous vacuum can be
filled through the use of telecommunications resources, which can enable
action at the individual or community level and an improvement in the
doctor/patient relationship through the dissemination of information
concerning health matters in hospitals, community stations, schools, and
government entities.
At a more advanced stage, this space will be filled by means of the
development and use of telemedicine, the availability of electronic medical
records throughout the nation, the control of the distribution of
pharmaceuticals, the automation of organ-donor banks used in transplants,
diagnosis and counselling, and the automation of procedures such as the
53
scheduling of appointments and the SUS Card (Sistema Único de Saúde
a guaranteed government health coverage plan), among others.
In order to meet these needs education and health the General Plan of
Universalization Goals mandates, in its Article 5, that regular education
establishments and health institutions, in all localities with Fixed Switched
Telephone Service, will, in short order, have to be served within a maximum
term of one week. This does not simply represent a contractual commitment
that concessionaires have with the government, but with the citizenry as
well.
Therefore, in the current telecommunications context, the means must be
sought to help serve the basic needs of the various segments of society, by
generating access to information relative to education, health, and other
issues considered of fundamental importance.
This context was the principal motivating factor behind the creation of the
Proposal for Development and Citizenship Br@sil.gov, submitted to the
Federal Government by Anatel as a contribution designed to find solutions
for making a more efficient telecommunications infrastructure available to
poor communities or those located in the interior of the country.
To achieve this end, the expectation is that the use of wireless transmission
technologies, including satellites, will assume a central role in the coming
years, given their capacity for rapid implementation, the lower investments
required compared to other technologies, and the potential for their use in
areas inadequately served by the telecommunications sector.
Table IV.1 presents the service extended to the different segments of society.
Table IV.1
Prospects for Service by Market Segment 2005
54
The different modes of services, which, as discussed previously, are intended
to fulfill the needs of all of society, are described in the following pages.
55
IV. 1. FIXED SWITCHED TELEPHONE SERVICE
The Fixed Switched Telephone Service FSTS intended for use by the
general public is defined in Art. 1 of the General Licensing Plan as:
the telecommunications service that, through voice
transmission and other signals, is intended for the
communication between or among given fixed points, using
telephony processes.
According to this definition, the service can be characterized relative to the
transfer mode, in 3.4 kHz voice , 7 kHz audio , or 64 Kbits, unrestricted,
or, in other words, communication is established, whether permanently or
semi-permanently, based on demand,. The FSTS constitutes the most
common form of telecommunications employed for interpersonal
communication by means of individual (residential, company,...) or collective
accesses (public telephones (TUP), community telephones,...), and its social
impact in a country with the characteristics of Brazil is significant.
The traditional technology employs analog transmission and signal
switching techniques and metallic wire pairs telephone cables through
which voice-activated electric signals are transported for purposes of access
by the user to the services network providers. Over time, technological
advances have had a profound impact on the different elements of the FSTS
infrastructure.
The principal change took place several years ago with the introduction of
digital technology, which is revolutionizing telecommunications. It consists
of the conversion of voice, image, or text signals into digitized signals
bits. In this way, these signals can be transported, stored, and handled in
the same way as information is processed in computers. The result is a
significant improvement in the quality of services, an expansion in the array
of service offerings, and an increase in the productivity of the systems.
In Brazil, the process of digitization of the FSTS support network began in
the 1980s; its evolution since 1994 is shown in Figure IV.1.
57
Figure IV.1
Degree of Digitization of the Local Fixed Switched Telephone Service
Support Network
The level of network digitization in Brazil increased from 35.5% in 1994 to
84.6% in 1999, by which time Brazils network reached a total of 23.5 million
digital terminals.
As Table IV.2 illustrates, this process continues to move forward in all of the
states of the country.
58
Table IV.2
Degree of Digitization of the Local Fixed Switched Telephone Support
Network.
%
59
More recent than digitization, WLL wireless local loop technology has
stood out for its versatility in permitting users access to FSTS provision
networks. This technology substitutes the metal cable that connects the
user to the nearest wire center with a radio link. Its primary advantage
resides in the potential for reduced costs arising from the elimination of the
need to construct expensive wire network infrastructure. With WLL,
implementation costs are no longer directly related to the distance between
the switching center and the users terminal.
This leads to the potential for introducing new users into the system,
especially those in rural areas located at a considerable distance from
switching centers where from an economic standpoint the provision of
service using the traditional technology cannot be justified. Consumers
unlikely to use the service extensively can also be benefitted, since the
investment levels and operational costs of the system are directly linked to
utilization, as opposed to wire accesses that require dedicated equipment
for each client.
As regards switching, the principal question revolves around the
implementation of IP-based (Internet Protocol) telephony. This alternative
consists of the use of packet switching, as is the case with the Internet, as
opposed to the use of traditional circuit switching. The technology will
generate increased productivity in the industry. Anatel is examining the
issue so that IP-based telephony brings benefits to all of society.
Finally, with respect to the transport network, the implementation of
extensive fiber optic networks linking the principal metropolitan areas of
the country should enable significant volumes of information transmission
at high speeds and with virtually no congestion. The resulting rise in
transport capacity should contribute to the reduction of costs in long-distance
service provision. It should also permit an increase in the flow of voice and
data, thereby making possible the offering of advanced services, which
ultimately will bring about a perceptible increase in the quality of the
services. In addition to the reduction in the investments and costs associated
with the services, the consolidation of those technologies should expand
competition in the industry and allow the benefits deriving from the
technological advances to be passed on to the consumer.
To summarize, digitization, WLL, the evolution of IP-based technology, and
expanded transport capacity through the implementation of extensive fiber
optic networks signals a reallocation of investments in the industry, resulting
in a significant reduction in the costs associated with FSTS provision.
In addition to this, these features have a direct impact on competition among
companies within the industry. It is for this reason that Anatel, during the
period in which competition is introduced into the industry, has reserved
the use of a large portion of the frequencies intended for WLL technology
60
for the authorized companies mirror-image companies competing with
incumbent FSTS providers.
At this point, it is important to analyze the evolution of the service and, on
the basis of its performance and the possiblities it offers for technological
development, evaluate its prospects in the coming years.
Total FSTS installed plant reached 27.8 million individual accesses at the
end of 1999 as a result of the addition of 14.5 million new accesses to those
existing in the country at the end of 1994 Figure IV.2. Total growth during
the period was a 109%, the equivalent of a 15.9% annual growth rate. The
Figure below also presents projections for the evolution of the number of
implemented accesses in the 2000/2005 period, taking into consideration
the obligations assumed by the incumbents and mirror-image companies
and the opportunities for market share arising from the introduction of
competition and the end of restrictions on new competitors after 2001.
Figure IV.2
Evolution of Fixed Switched Telephone Service Brazil
Table IV.3 presents the evolution of the FSTS plant, by state, in the period
discussed.
61
Table IV.3
Evolution of the Fixed Switched Telephone Service
(thousands of installed accesses)
13,253.1 14,644.8
62
16,492.9
18,819.6
22,132.6
27,765.9
483.9
65.3
28.2
126.4
20.8
189.7
24.6
28.9
559.0
66.4
30.1
141.2
21.0
221.6
35.7
43.0
630.7
74.8
35.0
162.0
25.8
246.6
37.2
49.3
709.1
80.9
48.8
167.8
27.7
282.9
43.7
57.3
825.9
103.6
52.3
184.0
40.6
329.7
52.3
63.4
1,117.1
192.0
70.9
237.4
43.4
431.0
56.0
86.4
1,742.8
125.4
99.1
305.6
104.9
139.0
273.6
90.8
73.9
530.5
1,967.5
142.1
112.3
349.1
113.1
153.7
288.8
100.3
83.7
624.4
2,362.9
178.9
135.0
438.8
148.7
184.5
349.9
122.9
88.9
715.3
2,785.0
190.8
147.7
578.1
173.5
206.4
431.5
153.0
94.1
809.9
3,096.0
212.6
151.4
628.5
194.3
229.1
522.6
158.3
108.6
890.6
3,677.0
256.0
191.4
695.2
231.2
260.4
625.9
193.3
131.9
1,091.7
7,955.2
1,349.9
217.2
1,697.2
4,690.9
8,608.0
1,472.9
227.1
1,744.6
5,163.4
9,456.4 10,626.4
1,736.1 2,056.8
251.8
295.0
1,842.9 2,068.7
5,625.6 6,205.9
12,584.4
2,406.8
352.7
2,636.9
7,188.0
16,227.1
2,805.2
436.3
3,093.3
9,892.3
2,022.8
861.4
399.0
762.4
2,255.3
953.7
452.1
849.5
2,596.7
1,029.9
541.2
1,025.6
3,076.3
1,178.8
648.8
1,248.7
3,818.6
1,397.3
772.4
1,648.9
4,539.1
1,787.8
967.4
1,783.9
1,048.4
156.5
140.8
316.7
434.4
1,255.0
178.7
169.3
419.2
487.8
1,446.2
213.3
199.5
494.7
538.7
1,622.8
241.1
245.8
552.1
583.8
1,807.7
266.0
270.5
675.7
595.6
2,205.6
352.9
324.8
865.8
662.1
(thousands of installed accesses)
35,000.0 40,500.0
45,140.0 49,560.0 53,840.0 58,000.0
1,591.1
246.6
87.2
369.1
57.3
642.9
79.0
109.0
1,939.0
295.7
102.4
455.7
69.4
792.2
92.0
131.6
2,189.0
339.9
116.5
502.9
79.9
892.2
103.4
154.2
2,389.8
379.7
129.6
539.6
89.0
961.2
113.9
176.8
2,565.8
415.5
141.8
575.6
96.9
1,013.0
123.6
199.4
2,714.0
447.9
151.9
607.8
104.0
1,049.5
132.5
220.4
5,193.0
380.6
274.3
889.9
339.9
358.1
950.7
281.3
198.6
1,519.6
6,343.7
485.6
335.8
1,042.8
416.1
431.3
1,169.1
353.6
250.6
1,858.8
7,277.6
590.1
384.9
1,188.8
468.4
504.1
1.299.1
410.9
288.5
2,142.8
8,174.6
694.1
428.1
1,328.2
520.4
576.5
1,420.4
465.8
324.9
2,416.2
9,053.2
797.6
466.1
1,461.3
572.1
648.5
1,541.4
518.4
359.8
2,688.0
9,896.7
898.1
499.3
1,589.4
619.9
715.7
1,661.4
568.4
392.4
2,952.1
20,206.6 23,018.3 25,328.6 27,534.4 29,663.8
3,404.7 3,905.0 4,394.8 4,882.2
5,367.2
593.5
707.8
794.7
860.7
910.9
4,439.5 4,991.9 5,336.6 5,681.3 5,996.0
11,768.9 13,413.6 14,802.5 16,110.2 17,389.7
31,768.3
5,852.0
960.5
6,288.1
18,667.7
5,335.1
2,063.3
1,173.4
2,098.4
6,121.8
2,333.8
1,376.4
2,411.6
6,907.2
2,604.3
1,579.4
2,723.5
7,691.4
2,874.8
1,782.4
3,034.2
8,474.4
3,145.3
1,985.4
3,343.7
9,242.9
3,409.6
2,183.1
3,650.2
2,674.2
420.9
413.0
1,011.8
828.5
3,077.2
488.2
499.4
1,156.3
933.3
3,437.6
554.8
584.1
1,299.4
999.3
3,769.8
620.7
667.1
1,441.1
1,040.9
4,082.8
685.9
748.4
1,581.4
1,067.1
4,378.1
746.6
824.3
1,720.0
1,087.2
63
Telephone density in the country represented by the number of fixed
accesses installed per 100 inhabitants reached 16.8 in 1999 compared to
8.6 in 1994 Figure IV.3. This corresponds to a growth rate of 95.3% in the
1994 / 1999 period. The Figure also provides the estimated density for the
2000 / 2005 period, which is projected to be 32.6 by the end of the period.
Figure IV.3
Evolution of Telephone Density FSTS
Figure IV.4 gives the distribution for telephone density throughout the
country. It should be noted that the disparities between states have
decreased. In 1994, density levels ranged from 2.4 to 25.2, which
corresponded to a differential of 10.5 times. In 1999, these levels varied
between 4.7 and 33.5 (7.1 times). By 2005, the projections indicate an even
greater reduction. These values will vary from 15.0 to 52.3, which represents
a differential of 3.5 times.
64
Table IV.4
(accesses per 100 inhabitants)
8.6
9.3
10.4
11.7
13.6
16.8
4.4
5.0
6.3
5.5
8.1
3.5
7.6
2.9
5.0
5.0
6.5
6.0
8.1
4.0
10.4
4.2
5.5
5.9
7.2
6.7
10.1
4.4
9.8
4.6
6.0
6.4
9.6
6.7
10.8
5.0
10.6
5.2
6.9
8.1
10.0
7.2
15.4
5.7
12.2
5.7
9.1
14.4
13.4
9.1
15.8
7.3
12.6
7.6
3.9
2.4
3.7
4.6
4.1
4.2
3.7
3.4
4.6
4.2
4.4
2.7
4.1
5.2
4.4
4.6
3.9
3.7
5.2
4.9
5.2
3.4
5.0
6.4
5.7
5.5
4.7
4.6
5.4
5.6
6.1
3.6
5.5
8.3
6.6
6.2
5.8
5.7
5.6
6.3
6.7
3.9
5.6
8.9
7.4
6.8
6.9
5.9
6.4
6.9
7.9
4.7
6.9
9.7
8.6
7.7
8.2
7.0
7.6
8.3
12.1
8.2
7.9
12.8
14.0
12.9
8.9
8.1
13.1
15.2
14.0
10.3
8.9
13.7
16.3
15.5
12.1
10.3
15.2
17.7
18.1
14.0
12.1
19.2
20.2
23.1
16.1
14.7
22.3
27.4
8.8
9.9
8.3
8.0
9.7
10.8
9.3
8.8
11.0
11.4
11.0
10.6
12.8
12.8
13.0
12.7
15.7
15.0
15.3
16.6
18.5
19.1
18.8
17.8
10.3
8.2
6.2
7.4
25.2
12.1
9.3
7.4
9.5
27.4
13.6
11.0
8.8
10.8
29.1
14.9
12.2
10.6
11.8
30.7
16.3
13.2
11.5
14.1
30.6
19.5
17.3
13.4
17.8
33.5
65
66
20.9
23.9
26.3
28.5
30.6
32.6
12.7
17.4
16.4
14.0
19.8
10.6
17.4
9.6
15.2
19.8
19.1
17.0
22.8
12.8
19.9
11.6
16.8
21.6
21.6
18.5
25.0
14.2
21.9
13.5
17.9
23.0
23.9
19.5
26.6
15.0
23.6
15.5
18.9
24.0
26.0
20.5
27.7
15.5
25.2
17.4
19.6
24.8
27.7
21.4
28.5
15.8
26.5
19.2
11.0
6.9
9.8
12.3
12.4
10.4
12.3
10.0
11.3
11.4
13.2
8.6
11.7
14.3
15.0
12.3
14.9
12.4
14.1
13.7
14.9
10.3
13.2
16.1
16.5
14.2
16.4
14.1
16.0
15.5
16.5
12.0
14.4
17.9
18.0
16.0
17.7
15.6
17.8
17.2
18.0
13.5
15.4
19.4
19.5
17.8
18.9
17.1
19.4
18.8
19.4
15.0
16.2
20.9
20.8
19.4
20.2
18.3
20.8
20.3
28.4
19.4
19.7
31.8
32.2
32.0
22.0
23.2
35.4
36.2
34.8
24.5
25.6
37.5
39.5
37.4
27.0
27.3
39.6
42.4
39.9
29.4
28.5
41.5
45.2
42.3
31.7
29.6
43.2
48.0
21.6
22.0
22.5
20.7
24.6
24.8
26.1
23.5
27.5
27.7
29.5
26.3
30.4
30.5
32.9
29.0
33.2
33.3
36.2
31.6
36.0
36.1
39.2
34.1
23.3
20.3
16.4
20.7
41.5
26.4
23.2
19.2
23.5
46.4
29.1
25.9
21.6
26.2
49.3
31.4
28.6
23.9
28.9
50.9
33.6
31.1
25.9
31.6
51.8
35.5
33.4
27.7
34.1
52.3
The evolution of density in FSTS in the 1994/1999/2005 period can be better
visualized in Figure IV.4.
Figure IV.4
67
Fixed Collective Access is the generic name given to public telephones
(Telefones de Uso Público TUP). These are the public telephones known
as payphones the semi-public telephones generally, those installed in
pharmacies, bakeries, bars, and cafeterias and telephones implemented
in service stations. In sum, the term refers to all accesses that can be used
by the general public.
The total public telephone (TUP) plant reached 739.9 thousand at the end
of 1999 as a result of the addition of 397.3 thousand new telephones to those
existing in the country at the end of 1994 Figure IV.5. This represents a
116% increase in the 1994/1999 period, which corresponds to an average
annual growth rate of 16.6%. The Figure also sets forth the estimates for the
number of telephones in the 2000/2005 period, which are based on the
commitments assumed by the incumbents.
Figure IV.5
Evolution of Public Telephones - Brazil
The evolution in the number of TUPs, by state, in the period is presented in
Table IV.5.
68
Tabele IV.5
Evolution of Public Telephones - TUP
(telephones per 1000 inhabitants)
342.6
366.7
428.4
520.5
589.1
739.9
14.2
1.4
0.6
3.7
0.5
6.3
0.5
1.2
15.0
1.6
0.6
3.8
0.5
6.7
0.6
1.2
17.0
2.0
0.6
4.2
0.6
7.3
0.6
1.7
19.3
2.5
0.7
4.5
0.7
7.6
0.8
2.5
22.7
2.8
1.1
4.8
0.8
9.2
1.1
2.9
37.3
4.3
1.7
7.8
1.3
16.9
1.6
3.7
66.1
4.1
3.3
11.5
3.3
5.0
12.2
2.9
2.3
21.5
74.0
4.2
3.7
13.4
3.9
5.5
14.7
3.0
2.5
23.1
85.3
5.2
4.0
16.6
4.8
5.9
15.6
3.5
3.2
26.5
104.4
5.0
4.7
20.5
6.9
7.1
21.7
3.8
3.3
31.4
118.8
6.6
5.5
23.6
7.5
8.0
27.8
4.6
3.4
31.8
159.2
11.1
8.1
29.4
9.3
10.7
36.1
7.9
4.5
42.1
197.0
29.5
6.8
38.2
122.5
207.2
32.3
7.8
38.3
128.8
240.4
37.9
8.4
44.8
149.3
285.6
44.2
8.5
61.2
171.7
319.1
52.9
11.1
72.0
183.1
390.9
68.3
13.8
86.8
222.0
43.7
20.3
9.6
13.8
46.9
20.8
11.2
14.9
56.3
25.8
13.3
17.2
72.2
27.8
14.4
30.0
83.9
30.6
15.6
37.7
98.4
37.3
20.5
40.6
21.6
3.1
3.8
9.1
5.6
23.6
3.4
4.3
9.7
6.2
29.4
4.2
5.1
13.1
7.0
39.0
5.1
7.7
17.8
8.4
44.6
6.1
9.3
19.9
9.3
54.1
8.0
11.0
22.9
12.2
69
913.2 1,085.3
70
1,258.6 1,430.5
1,537.5
1,642.2
53.5
6.4
2.3
11.1
1.8
24.6
2.1
5.2
69.2
8.4
2.9
14.4
2.1
32.4
2.6
6.4
84.7
10.4
3.5
17.6
2.3
40.3
3.1
7.5
100.0
12.4
4.1
20.7
2.5
48.1
3.6
8.6
105.7
13.5
4.3
21.8
2.7
50.7
3.8
8.9
111.0
14.5
4.4
22.8
2.9
53.2
4.0
9.2
209.0
17.2
11.2
35.8
11.7
14.0
42.6
11.5
7.2
57.8
261.3
24.9
14.8
42.4
14.7
17.9
48.6
15.2
9.4
73.4
316.8
34.2
18.6
49.1
18.2
22.4
54.5
18.8
11.6
89.4
371.9
43.5
22.3
55.8
21.6
26.9
60.3
22.3
13.7
105.5
390.6
45.7
23.5
58.3
22.8
28.2
63.2
23.6
14.4
110.9
408.7
47.8
24.6
60.7
23.9
29.5
66.0
24.8
15.1
116.3
462.1
85.4
16.5
99.2
261.0
531.7
102.2
19.3
110.3
299.9
601.4
119.0
21.5
121.3
339.6
670.9
135.7
23.6
132.3
379.3
727.8
141.6
24.8
143.2
418.2
785.0
147.5
25.9
154.1
457.5
121.0
45.2
25.6
50.2
144.2
53.7
30.7
59.8
167.4
62.2
35.8
69.4
190.3
70.7
41.1
78.5
208.4
77.2
47.2
84.0
226.6
83.6
53.5
89.5
67.6
10.1
13.5
28.4
15.6
78.9
12.2
16.0
31.8
18.9
88.3
14.3
18.5
34.6
20.9
97.4
16.3
20.9
37.3
22.9
105.0
17.4
22.6
40.2
24.8
110.9
18.3
23.8
42.2
26.6
The public telephone density in the country represented by the number
of telephones in use per 1000 inhabitants reached 4.5 at the end of 1999
as compared to 2.2 in 1994 Figure IV.6. This corresponds to a 105% growth
rate in the 1994/1999 period or a 15.4% average annual rate. The Figure
also provides the projections for the 2000 2005 period, by which time a
density of 9.2 is expected.
Figura IV.6
Evolution Public Telephone Density TUP
Table IV.6 gives the distribution for public telephone (TUP) densities
throughout the country. We note that, as with the individual accesses
Table IV.4 the disparities between states have decreased. In 1994, the
density ranged from 0.8 to 3.7, which corresponded to a differential of 4.6
times. In 1999, the levels varied between 2.0 and 6.3 (3.2 times). By 2005,
the projections indicate an even greater reduction. These values will vary
from 8.0 to 12.8, which represents a differential of 1.6 times.
71
Table IV.6
Evolution of Telephone Density TUP
72
2.2
2.3
2.7
3.2
3.6
4.5
1.3
1.1
1.3
1.6
1.9
1.2
1.6
1.2
1.3
1.2
1.3
1.6
1.9
1.2
1.7
1.2
1.5
1.6
1.2
1.7
2.3
1.3
1.6
1.6
1.6
2.0
1.4
1.8
2.7
1.3
1.9
2.3
1.9
2.2
2.1
1.9
3.0
1.6
2.6
2.6
3.0
3.2
3.2
3.0
4.7
2.8
3.6
3.3
1.5
0.8
1.2
1.7
1.3
1.5
1.6
1.1
1.4
1.7
1.6
0.8
1.4
2.0
1.5
1.6
2.0
1.1
1.5
1.8
1.9
1.0
1.5
2.4
1.9
1.8
2.1
1.3
1.9
2.1
2.3
0.9
1.7
2.9
2.6
2.1
2.9
1.4
2.0
2.5
2.6
1.2
2.0
3.3
2.8
2.4
3.7
1.7
2.0
2.5
3.4
2.0
2.9
4.1
3.5
3.1
4.7
2.9
2.6
3.2
3.0
1.8
2.5
2.9
3.7
3.1
1.9
2.8
2.9
3.8
3.6
2.3
3.0
3.3
4.3
4.2
2.6
3.0
4.5
4.9
4.6
3.1
3.8
5.2
5.2
5.6
3.9
4.7
6.3
6.2
1.9
2.3
2.0
1.4
2.0
2.3
2.3
1.6
2.4
2.8
2.7
1.8
3.0
3.0
2.9
3.1
3.5
3.3
3.1
3.8
4.0
4.0
4.0
4.0
2.1
1.6
1.7
2.1
3.3
2.3
1.8
1.9
2.2
3.5
2.8
2.2
2.3
2.9
3.8
3.6
2.6
3.3
3.8
4.4
4.0
3.0
4.0
4.1
4.8
4.8
3.9
4.5
4.7
6.2
5.5
6.4
7.3
8.2
8.7
9.2
4.3
4.5
4.3
4.2
6.2
4.1
4.6
4.6
5.4
5.6
5.4
5.4
6.9
5.2
5.6
5.6
6.5
6.6
6.5
6.5
7.2
6.4
6.6
6.6
7.5
7.5
7.6
7.5
7.5
7.5
7.5
7.5
7.8
7.8
7.9
7.8
7.7
7.8
7.7
7.8
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
4.4
3.1
4.0
5.0
4.3
4.1
5.5
4.1
4.1
4.3
5.4
4.4
5.2
5.8
5.3
5.1
6.2
5.3
5.3
5.4
6.5
6.0
6.4
6.7
6.4
6.3
6.9
6.4
6.4
6.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.8
7.8
7.8
7.8
7.8
7.7
7.8
7.8
7.8
7.8
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
6.5
4.9
5.5
7.1
7.1
7.4
5.8
6.3
7.8
8.1
8.3
6.6
6.9
8.5
9.1
9.1
7.5
7.5
9.2
10.0
9.8
7.8
7.8
9.9
10.9
10.4
8.0
8.0
10.6
11.8
4.9
4.8
4.9
5.0
5.8
5.7
5.8
5.8
6.7
6.6
6.7
6.7
7.5
7.5
7.6
7.5
8.2
8.2
8.6
7.9
8.8
8.8
9.6
8.4
5.9
4.9
5.4
5.8
7.8
6.8
5.8
6.1
6.5
9.4
7.5
6.7
6.9
7.0
10.3
8.1
7.5
7.5
7.5
11.2
8.6
7.9
7.8
8.0
12.0
9.0
8.2
8.0
8.4
12.8
73
The evolution of TUP densities in the 1994 /1999/2005 period can be better
Figure IV.7
Public Telephone Density
74
IV. 2. MOBILE SERVICES
Mobile telecommunications services are all those in which users employ
mobile terminals or stations to accomplish a communication. They
encompass Mobile Cellular Service - MCS, Global Mobile Satellite Service
SMGS, Specialized Mobile Service SME, Specialized Paging Service
SER. Another service that falls within this category is Position Determination.
These services are addressed in the following pages.
75
IV.2.1 - TELEPHONY
MOBILE CELLULAR SERVICE
The Cellular Mobile Service CMS is the terrestrial mobile
telecommunications service that permits a communication between a user
with a mobile station cellular telephone and a mobile or fixed telephone
user. This communication is possible when the user with the cellular set is
within the coverage area.
At the time of its implementation, the MCS was defined as follows:
the mobile terrestrial telecommunications service, open
to public correspondence, that uses a radio communication
system, employing cellular techniques, interconnected to
a public telecommunications network and accessed by
means of portable, transportable or vehicle- mounted
terminals of individual use.
In this service, the communication is accomplished through a mobile station
cellular set that by means of the utilization of radio waves communicates
with base stations ERBs linked to each other by a switching center (SC),
which are, in turn, interconnected to a public telecommunications network.
The coverage area for each station is called a cell. The set of cells, arranged
geographically, forms the cellular communication network Figure IV.8 for
which the service is named. The geographic arrangement and number of
stations is determined on the basis of the communication traffic and the needs
for continuous coverage in each region. In the large urban centers, the stations
are calculated essentially on the basis of the traffic and, on roads, in a manner
that guarantees service continuity throughout the trajectory.
Figure IV.8
Basic Components of the Cellular Telephone Network
77
IV.2.1 - TELEPHONY
In addition to voice communication, the MCS offers other options, such as
value-added services. Of those services, the electronic mailbox or voice
mail is the best known. It permits the user to have a voice message stored
for later retrieval. Additionally, an array of services, such as Call Waiting,
Caller ID, and Short Message, are offered by operators.
In Brazil, three different cellular technologies coexist today one analog,
AMPS (Advanced Mobile Phone Service) and two digital, TDMA (Time
Division Multiple Access) and CDMA (Code Division Multiple Access). The
digital technologies have gradually replaced the analog system, primarily
because they present advantages, such as more effective spectrum use,
better network management, and a significant number of additional services,
including access to data communication and to the Internet. All of this
contributes to improved service offerings to the user and expands the
possibilities for making use of the systems in a way that benefits operators
and reduces the prices for services. Until 1996, cellular telephony in Brazil
was exclusively analog. Over time, digitization has accelerated, such that
by December of 1999 the number of digital sets far exceeded that of analog
sets, as Figure IV.9 illustrates.
Figura IV.9
Digitization of Mobile Cellular Service (Dec/99)
The digitization of cellular networks paves the way for data communication
and fosters the convergence of services, which, in turn, permits the
development of new functions and value-added services. In particular,
wireless access to the Internet should develop and expand data
communication applications, such as electronic mail. This change will be
78
IV.2.1 - TELEPHONY
even more significant when new services supported by third-generation
systems enter into operation, including the IMT 2000 (International Mobile
Telecommunications), which is the recommended standard of the ITU
(International Telecommunication Union). The commercial provision of
these services is scheduled for 2001 in Japan and 2002 to 2003 in various
European countries.
The introduction of the concept of a single number, of the capability to locate
the user anywhere in the world global roaming and of applications, such
as Internet access and multimedia, will revolutionize personal mobile
communications in the coming years.
The cellular telephone industry has grown substantially throughout the
world and shows no signs of slowing. Even in countries like the United
States, where it was believed that demand for the service had levelled off,
the service continues to expand. The market has evidenced a global growth
rate in excess of 40% per year for nearly a decade, reaching a total of 480
million cellular accesses by the end of 1999. This number corresponds to
close to 8 accesses per 100 inhabitants worlwide.
The principal factor propelling this vigorous expansion lies in the continuous
process of technological development, which has contributed to a general
reduction in costs for operators and consumers and increased competition
in the provision of services.
Figure IV.10 shows the influence of the services price as regards its
utilization in the market. Presented is the ratio of MCS density to the MCS
to FSTS price ratio, represented by how much more the cellular service costs
in relation to FSTS. On average, as can be seen, the smaller the differential
in this price ratio, the greater the MCS density. In other words, the increase
in MCS competition will lead to a reduction in its prices, thus increasing
the services density and transforming it, in many cases, into an alternative
to fixed telephony.
79
IV.2.1 - TELEPHONY
Figure IV.10
Relative Price/Mobile Cellular Service Density Ratio
The Mobile Cellular Service was implemented in Brazil in 1990; up to 1997,
only the Telebrás System companies and four independent companies
offered it. With the promulgation of Law No. 9295/96 the Minimum Law
which enabled the entry of new providers for this service, a model
establishing competition for the area was developed. The objective of the
model was to introduce full competition, and for purposes of accomplishing
this goal, defined a transition from the monopoly phase to a duopoly phase
and, finally, to full competition.
The duopoly was established in 1997 through the competitive bidding
process for B-band MCS provision in the 800 MHz band in the 10 areas
into which the country was divided, as presented in Figure IV.11. The
winning companies are referred to as the B-band companies.
80
IV.2.1 - TELEPHONY
Figure IV.11
Service Area for Mobile Cellular Service
In order to implement the new model, the Telebrás System companies and
the four independent companies were split-up, which gave rise in each
case to a second company created specifically to provide mobile cellular
service, the A-band companies.
Following the split, the Telebrás System companies were privatized and
grouped according to the areas of MCS provision defined in the Minimum
Law. As Table IV.7 indicates, in December 1999 there were forty-two
companies providing this service in Brazil.
81
IV.2.1 - TELEPHONY
Table IV.7
Mobile Cellular Service Providers
The MCS plant reached 15.0 million at the end of 1999, as a result of the
addition of 14.2 million new accesses to those exisiting in the country at the
end of 1994 Figure IV.12 a total that confirmed the rapid dissemination
of the service throughout the country. This represents an 18-fold increase
in the 1994/1999 period, which corresponds to an average annual growth
rate of 79.7%. Additionally, the Figure also presents the projections for the
evolution in the number of accesses in the 2000/2005 period, which take
into account the end of the duopoly phase and the implementation of full
competition.
82
IV.2.1 - TELEPHONY
Figure IV.12
Evolution of Mobile Cellular Service - Brazil
Operation of the B band began in 1997, and by the end of that year extended
to only 15.7 thousand of the 4.6 million accesses in the country. In July of
1998, when the Telebrás System companies were privatized, the B-band
companies operated 477.8 thousand of the 5.6 million accesses in service.
Table IV.8 presents the evolution of the MCS plant, by state, for the period
discussed above.
83
IV.2.1 - TELEPHONY
Table IV.8
Evolution of Mobile Cellular Service
(thousands of accesses)
84
755.2
1,416.5
2,744.5 4,550.2
18.5
1.5
1.5
7.5
1.1
4.2
1.5
1.2
61.5
5.0
1.8
17.7
3.2
25.0
3.7
5.1
146.0
6.4
5.8
52.0
6.5
62.9
5.3
7.1
199.5
13.3
8.4
71.0
6.9
80.0
10.2
9.7
246.3
35.4
14.9
83.8
7.2
81.2
11.0
12.8
404.1
46.1
23.6
129.1
12.3
152.2
18.1
22.7
94.5
6.5
3.2
19.5
4.8
6.5
9.4
4.6
2.7
37.3
280.0
29.4
10.6
64.1
14.9
15.9
15.1
22.6
11.1
96.3
552.6
33.7
18.2
123.5
37.4
45.3
73.4
40.0
23.2
157.9
713.2
39.7
22.8
126.7
53.1
53.3
159.4
51.6
31.8
174.8
1,163.1
38.1
36.0
174.6
85.0
76.5
318.3
86.5
42.8
305.3
2,636.9
74.9
90.2
333.0
201.7
183.5
709.2
198.0
121.7
724.7
433.9
57.6
14.2
99.4
262.7
703.0
109.2
28.2
118.8
446.8
127.7
49.3
23.8
54.6
222.9
74.5
60.9
87.5
491.1
131.7
169.7
189.7
833.6
226.2
236.6
370.8
1,193.0
359.3
268.0
565.7
2,389.1
734.9
478.4
1.175.8
80.6
3.5
4.0
23.8
49.3
149.1
8.1
11.4
52.2
77.4
289.8
37.1
52.9
70.3
129.5
362.5
54.1
59.1
87.4
161.9
634.4
85.0
92.3
125.5
331.6
920.0
130.5
151.0
204.4
434.1
1,265.0 2,441.4
262.8
511.0
55.5
104.0
166.9
484.2
779.8 1,342.2
7,368.2 15,032.7
4,131.4 8,682.6
559.6 1,137.8
119.3
320.6
663.4 2,510.1
2,789.1 4,714.1
IV.2.1 - TELEPHONY
(thousands of accesses)
21,500.3 29,200.4 37,500.1 45,500.1 52,500.0 58,000.0
809.4 1,263.3
122.5
206.5
43.6
66.2
202.5
287.6
28.3
46.1
324.8
516.9
36.0
56.1
51.7
83.9
1,746.3
295.5
90.3
378.8
65.0
721.2
77.5
118.0
2,217.2
382.7
113.7
467.0
83.4
920.7
98.3
151.4
3,730.0 5,044.9
185.5
317.6
163.2
245.8
541.9
782.3
263.1
339.2
263.9
359.3
841.4 1,019.7
251.8
319.6
156.9
200.8
1,062.3 1,460.6
6,470.3
466.7
334.0
1,039.5
421.7
461.9
1,215.8
393.3
248.5
1,888.9
7,850.8 9,064.8 10,019.8
621.4
770.5
897.5
419.8
496.4
558.9
1,288.9 1,510.1 1,688.2
500.5
568.1
619.4
560.8
647.2
715.2
1,400.0 1,552.3 1,660.3
463.5
523.2
568.0
294.0
332.9
362.2
2,301.9 2,664.1 2,950.1
12,099.8
1,864.5
414.2
2,987.3
6,833.8
2,640.4 2,988.3
461.7
527.6
134.7
151.8
545.0
607.4
100.1
113.9
1,100.4 1,248.7
117.0
132.4
181.5
206.5
16,201.4 20,625.7 24,877.0 28,575.5 31,457.6
2,699.5 3,592.9 4,459.4 5,228.4 5,848.0
530.9
657.6
778.4
881.7
959.8
3,628.2 4,332.9 4,995.3 5,543.9 5,934.1
9,342.8 12,042.3 14,643.9 16,921.5 18,715.7
3,390.9 4,585.3
1,144.5 1,620.1
706.8
975.7
1,539.6 1,989.5
5,871.9 7,109.9 8,190.4
2,129.9 2,623.2 3,059.0
1,264.6 1,543.4 1,788.1
2,477.4 2,943.3 3,343.3
9,036.8
3,407.3
1,981.8
3,647.7
1,470.2
226.0
255.1
423.4
565.7
2,785.9 3,445.2 4,028.9
451.0
563.9
664.5
501.3
624.9
734.8
927.6 1,181.4 1,409.7
906.0 1,075.0 1,219.9
4,497.5
746.1
823.7
1,597.7
1,330.0
2,105.5
334.8
374.1
667.7
728.9
85
IV.2.1 - TELEPHONY
Cellular telephone density in the country represented by the number of
accesses per 100 inhabitants reached 9.1 at the end of 1999 as compared
to 0.5 in 1994 Figure IV.13. This corresponds to an average annual rate of
increase of 79.0% in the 1994/1999 period. The Figure also provides the
expected evolution for the 2000/2005 period; a density of 32.6 is projected
for 2005.
Figure IV.13
Evolution of Telephone Density MCS
The distribution of the mobile cellular service density throughout the country
is presented in Table IV.9. The graphic confirms that the dissemination of
the service has reduced the disparities between states. In 1994, the density
varied between 0.1 to 2.9, which represented a differential of 29 times. In
1999, this density varied from 1.4 to 21.9 (15.6 times). The projections for
2005 indicate an even greater reduction. The density will vary between
15.0 to 64.0, which corresponds to a differential of 4.3 times.
86
IV.2.1 - TELEPHONY
Table IV.9
Evolution of Telephone Density MCS
0.5
0.9
1.7
2.8
4.5
9.1
0.2
0.1
0.3
0.3
0.4
0.1
0.5
0.1
0.5
0.4
0.4
0.8
1.2
0.5
1.1
0.5
1.3
0.5
1.2
2.1
2.5
1.1
1.4
0.7
1.7
1.1
1.7
2.9
2.7
1.4
2.5
0.9
2.1
2.8
2.9
3.3
2.7
1.4
2.6
1.1
3.3
3.5
4.5
5.0
4.5
2.6
4.1
2.0
0.2
0.1
0.1
0.3
0.2
0.2
0.1
0.2
0.2
0.3
0.6
0.6
0.4
0.9
0.6
0.5
0.2
0.8
0.7
0.8
1.2
0.6
0.7
1.8
1.4
1.4
1.0
1.5
1.4
1.2
1.6
0.7
0.8
1.8
2.0
1.6
2.1
1.9
1.9
1.4
2.5
0.7
1.3
2.5
3.2
2.3
4.2
3.2
2.5
2.4
5.7
1.4
3.3
4.7
7.5
5.4
9.3
7.2
7.1
5.5
0.7
0.4
0.5
0.8
0.8
1.1
0.7
1.0
0.9
1.3
1.9
1.6
2.0
1.2
2.3
3.6
3.0
3.6
3.6
3.8
6.0
3.3
4.1
4.8
7.8
12.4
6.5
10.8
18.1
13.1
0.6
0.6
0.5
0.6
1.0
0.8
1.3
0.9
2.1
1.5
3.5
2.0
3.5
2.5
4.7
3.8
4.9
3.9
5.3
5.7
9.7
7.8
9.3
11.7
0.8
0.2
0.2
0.6
2.9
1.4
0.4
0.5
1.2
4.3
2.7
1.9
2.3
1.5
7.0
3.3
2.7
2.6
1.9
8.5
5.7
4.2
3.9
2.6
17.0
8.1
6.4
6.2
4.2
21.9
87
IV.2.1 - TELEPHONY
88
12.9
17.2
21.9
26.2
29.8
32.6
6.5
8.7
8.2
7.7
9.8
5.4
7.9
4.5
9.9
13.8
12.4
10.7
15.2
8.4
12.1
7.4
13.4
18.8
16.7
13.9
20.4
11.5
16.4
10.3
16.6
23.2
21.0
16.9
24.9
14.4
20.4
13.3
19.4
26.7
24.7
19.4
28.7
16.9
23.8
15.9
21.6
29.2
27.7
21.3
31.3
18.8
26.5
18.0
7.9
3.3
5.8
7.5
9.6
7.7
10.9
9.0
9.0
8.0
10.5
5.6
8.6
10.7
12.2
10.3
13.0
11.2
11.3
10.8
13.2
8.2
11.5
14.1
14.9
13.0
15.3
13.5
13.8
13.7
15.8
10.7
14.1
17.3
17.4
15.6
17.4
15.6
16.1
16.4
18.0
13.1
16.4
20.1
19.4
17.8
19.1
17.2
17.9
18.6
19.6
15.0
18.2
22.2
20.7
19.4
20.1
18.3
19.2
20.3
17.0
10.6
13.8
21.4
18.7
22.5
15.2
17.4
25.7
25.2
28.4
20.1
21.2
30.5
32.1
33.8
24.7
24.7
34.8
38.6
38.4
28.6
27.6
38.4
44.0
41.8
31.7
29.6
40.7
48.1
13.7
12.2
13.6
15.2
18.4
17.2
18.5
19.4
23.4
22.6
23.6
23.9
28.1
27.8
28.5
28.1
32.1
32.4
32.6
31.6
35.2
36.1
35.6
34.1
12.8
10.9
10.1
8.7
28.4
18.1
15.9
14.3
13.6
36.2
23.6
21.1
18.6
18.7
44.7
28.7
26.0
22.4
23.7
52.6
33.1
30.2
25.5
28.1
59.2
36.5
33.4
27.7
31.7
64.0
IV.2.1 - TELEPHONY
The evolution of MCS density for the 1994/1999/2005 period can be better
Figure IV.14
Evolution of Telephone Density CMS
89
IV.2.1 - TELEPHONY
The Mobile Cellular Service in Brazil has occupied a significant place in
the telecommunications sector for several years. The increase in the number
of mobile accesses has invariably exceeded expectations. In 1999, the
service more than doubled, principally as a result of the expansion in prepaid services. In this period, there were areas where the number of cellular
accesses already exceeded that of fixed accesses. Figure IV.15 illustrates
the growing importance of MCS in Brazils telephone sector.
Figure IV.15
FSTS and MCS Participation in Telephony
With the advent of competition and the introduction of pre-paid programs,
the cellular mobile service, previously concentrated among the high-income
groups (classes A and B), incoporated users in lower-income groups (classes
C and D). Competition reduced the prices for the service. Pre-paid services
strove to guarantee simpler and cheaper access to MCS by eliminating
monthly subscription charges and activation fees and making registration
requirements more flexible.
In December of 1999, one year after its implementation, pre-paid services
accounted for 38% of cellular mobile accesses and in that month was
responsible for 86% of the growth in new mobile accesses.
90
IV.2.1 - TELEPHONY
Participation by the B-band Mobile Cellular Service began in earnest only
in December of 1997, with the last company launching its operation in
October of 1999. By December of 1999, B-band companies already held
28.4% of the domestic market; its smallest smallest presence was 10% in
Area 8 (Amazonas, Amapá, Pará, Maranhão, and Roraima), where operation
began in October of 1999, and the largest in Area 1 (São Paulo State
Capital), 44%. Figure IV.16 shows the participation of the operators in the
two bands.
Figure IV.16
Participation in the Market A and B Band
91
GLOBAL SATELLITE MOBILE SERVICE
Global Mobile Satellite Service SMGS is a satellite mobile service whose
principal characteristics include the use of satellite systems whose coverage
area encompasses all or a large part of the planet and the diverse
telecommunications applications it offers.
SMGS is:
the mobile satellite service of domestic and international
scope that is supported by satellite telecommunications
signal transport services whose access stations are linked
to fixed or mobile terrestrial networks.
In this service, the mobile station communicates with a satellite, whether
geostationary or not, linked to terrestrial telecommunications networks.
Potential consumers include those engaged in global travel and inhabitants
of remote areas where conventional fixed and cellular systems may or may
not be available.
The elements that comprise this type of service are presented in Figure
IV.17.
Figure IV.17
Topology of Global Satellite Mobile Service
93
GLOBAL SATELLITE MOBILE SERVICE
SMGS is beginning to play an important role in the new global setting
and in Brazil not only because of the importance of voice communication,
but because of its capacity to provide applications, such as fax, data,
terrestrial mobile station positioning services tracking paging, and
position determination (GPS).
Depending on the application that is offered, the systems supporting this
service utilize different frequency bandwidths UHF, VHF, and L, S, C, and
Ka. International costs of the mobile terminals and the transmission speeds
vary in accordance with these applications. By the end of 1999, they varied
by almost 7 times R$750 thousand to R$5.2 million and the transmission
speeds from 0.3 to 56.7 kbps kilobytes per second.
Another variable in the implementation of the various projects related to
SMGS revolves around the significant investments required to implement
the service.
At the end of 1998, SMGS employing non-geostationary systems began to
be operated in Brazil. In 2000, new platforms in those systems will be put
into service. This will enable an extensive expansion of service offerings
and contribute significantly toward the reduction of prices for both the service
and the accesses.
94
IV.2.2 TRUNKING
The paging service, known in Brazil as the Specialized Mobile Service
SME refers to the terrestrial mobile telecommunications service that permits
a communication between a user with a mobile telephone set and one or
several users of the same predetermined group. It is designed essentially
for corporate use, since its principal feature is trunking, which refers to
communication between two or more users of the same group, by which a
message is transmitted simultaneously to the various members of the group.
The users of this service have the option to access users of other telephone
services.
The SME is defined as:
the mobile terrestrial telecommunications service
provided in the collective interest to execute operations
related to trunking and other forms of telecommunications.
Trunking operations encompass:
communications between fixed and mobile stations or two
or more mobile stations, in which a message is transmitted
simultaneously to all the stations or group of stations and
carried out by means of the automatic sharing of a small
number of channels, so as to ensure optimal spectrum use.
The network that supports SME is evolving, a phenomenon which has been
fuelled by digitization and by the features and new services offered to the
user, such as value-added services. Examples of features are Caller
Identification and Forwarding known as Follow me. The value added
services include, among others, call-conferencing and voice mail.
The SME has grown significantly in recent years, especially in the United
States. Studies demonstrate that by 2004 the service will grow at an average
annual rate of more than 18% and reach a total of 14 million users in the
US. In that country, the principal use of the service is for trunking, in spite
of the significant flexibility afforded by American legislation with regards
to the interconnection between the networks that support this service with
those of fixed telephony.
In spite of the growth of the SME globally, the services density is still low,
even in the more developed countries. This is even truer of Latin America,
where service density is far lower than in the more developed countries.
95
IV.2.2 TRUNKING
The Specialized Mobile Service, based on analog technology, developed
within small companies, primarily due to the fact that at the beginning of
the service there were significant restrictions with respect to the awarding
of channels. Gradually, the industry underwent a transformation and
aligned with the process of globalization. The development of new features
and value-added services increased the number of utilities the service offered
users, which expanded the market.
With the entry of large companies into the industry, the service began to
extend itself on a regional and national scale, and in 1997, the regulation
of the service was revised so as to adapt the regulations to the new market
realities.
The practical effect of this was to restrict the provision of the service
exclusively to the corporate sector. The new regulations limited
interconnection with the FSTS support network on the basis of the amount
of available numbering and the direct linking of SME networks. The
objective was to prevent direct competition between the MCS and the SME,
because of the view at the time that this measure was necessary to
consolidate the new Brazilian telecommunications model.
On 31 December 1999, the permanent prohibition against the initiation of
operations by other mobile services contained in the public invitations to
bidding for the B-band services was eliminated. Beginning in 2000, the
legislation regarding SME will be revised so as to permit the development
of the service and the establishment of effective competition between
systems that manifest similar traits. It is expected that the benefits derived
from that competition will be passed on to consumers in the form of an
improvement in the service, lower prices, better customer service, and higher
quality in service provision.
As Figure IV.18 shows, the installed SME plant reached 279 thousand
accesses by the end of 1999. This represents an 85% increase in the last
year. The Figure also presents the prospects for an increase in the number
of accesses in the 2000/2005 period, which correspond to the projections of
the ABTM Associação Brasileira das Empresas Operadoras de
Telecomunicações (Association of Brazilian Mobile Telecommunications
Operating Companies).
96
IV.2.2 TRUNKING
Figure IV.18
Evolution of Specialized Mobile Service - Brazil
97
IV.2.3 - PAGING
The paging service, known in Brazil as the Specialized Paging Service
SER refers to the mobile service in which the user receives information in
a portable mobile receiver handset. In this service, a communication takes
place in two stages. First, a PBX receives a telephone call from the person
wishing to forward a message to the service user. This information is then
sent to the service users receiver.
SER is:
the telecommunications service designed to transmit, by
any means of telecommunication, information originating
in a base station and addressed to mobile receivers.
The existing regulations establish the conditions for the operation and
granting of authorizations for the service and define, moreover, the types of
grants according to the geographic scope of the Special Paging Service.
The regulations also order the obligations connected to the granting of
authorizations, the rules for the interconnection of the SER and other
telecommunications service networks, and the rules regarding authorization
transfers.
There are presently three different types of mobile receiving sets in the
country: tone, numeric, and alphanumeric. The differences between them
are based in the technology that is employed, the services they offer, the
mode of message transmission and reception, and, ultimately, the costs to
users and providers.
The service providers operating in the country currently make use of two
communication protocols. The POCSAG, the older of the two, is in the
process of being phased out by the more recent FLEX protocol, which
permits more effective utilization of the radio frequency spectrum. This
protocol will enable the introduction of new services such as bidirectional
voice pagers
Internationally, there are various factors that influence the services
penetration. Among them are a countrys level of development, the time
the service is available on the market, competition, and the regulations. Its
density varies widely among countries.
In Latin American countries, the absence of fixed and mobile telephones
accelerated the development of the service. Additionally, the high prices
charged by the cellular telephone industry made paging an attractive
alternative, which explains the prevalence of alphanumeric sets and,
consequently, the higher prices relative to other countries.
99
IV.2.3 - PAGING
With the falling prices for Mobile Cellular Service, the introduction of the
feature enabling a message to be forwarded to a cellular set, and the
launching of bidirectional voice pagers, a repositioning of the service in
the market will be required as a consequence of the changes taking place
in the competitive environment.
In December of 1999, the service had 0.9 million users in Brazil, for a density
of 5.5 terminals per 1000 inhabitants. This figure consistituted a reduction
from the previous year when the number of users was 1.2 million. The
primary factor behind this decline stemmed from the vigorous competition
provided by the Mobile Cellular Service, especially pre-paid plans. The
present market view is that upon conclusion of this phase paging services
should experience renewed growth as a consequence of the elaboration of
new numbering regulations specifically connected to the accessing of paging
services and the implementation of Anatels Special Paging Service
Authorization Plan.
With repect to providers, 250 are now authorized. They are unequally
distributed among the states. The service has been received with greater
interest in more developed areas, especially in the southeast. Consequently,
whereas average density levels in Brazil compare with those of other Latin
American countries, the density in states such as São Paulo and Rio de
Janeiro approximate those of European countries.
In terms of the prospects for paging services, the combination of
characteristics intrinsic to the service and competition with other mobile
services will require that its current position be redefined, especially because
of the expanded availability of value-added services. In this way, it will be
possible to provide a specific market niche, which, in turn, will fuel the
development of the service.
Regarding the techology applied to the service, there are some particularly
interesting opportunities, such as, the possibility to connect a pager to a
computer in order to access e-mail, the development of bidirectional paging
systems, thus not only permitting that e-mail messages be received but that
they be sent as well, integration with news services (newspapers, radio, etc.),
which allow the reception of news that can be specifically adapted to the
user, the development of intelligent products, including vehicle and property
security systems, in addition to products offering uses directed specifically
to the corporate market, such as, for example, the communication of
messages to employees.
100
IV.2.3 - PAGING
The relationship between the pager and public telephones through voice
mailboxes comprises another interesting option from an economic
standpoint, given that the service has properties that allow it to generate a
significant volume of traffic on the FSTS network.
The general view is that the repositioning of the service in the market will
lead to an increase in the number of numeric sets because these present
lower costs for the supplier and, subsequently, for the user. Currently, the
primary cost in providing the service in Brazil is connected to the high
associated labor costs, since, as is the case with alphanumeric sets, virtually
all the messages sent go through an operator at the providers central office
who must dial the digits manually.
From the perspective of the regulation of the system, the resolution of
operator claims through a review of the current legislation should assist in
repositioning the service in the market.
There are many measures under consideration by Anatel to strengthen the
paging market. They include:
- access to numbering, which will significantly facilitate utilization of the
service and lead to reduced costs;
- the possibility of internconnection, which will allow paging companies to
enter into commercial network interconnection agreements and increase
the utility and attractiveness of the service.
When the pager establishes its natural position in the market, its importance
as a communication channel will increase for low-income segments, which
will transform it, in turn, into a powerful instrument for the universalization
of telecommunications services in Brazil.
As Figure IV.19 illustrates, the number of SER terminals reached 901
thousand at the end of 1999. This figure represents a 25.7% decline over
the previous year. The Figure also sets forth the projections for an increase
in the number of terminals for the 2000 /2005 period that are in line with
those of the ABRAC Associação Brasileira de Radiochamada (Brazilian
Pagers Association).
101
IV.2.3 - PAGING
Figure IV.19
Evolution of the Paging Service
102
IV.2.4 OTHER MOBILE SERVICES
The mobile services discussed above are intended for voice communication,
although they have come to play a more prominent role in the location of
vehicles, cargo, and persons.
Among the most important applications are those supported by private
mobile networks and those for position determination and geolocation.
The applications supported by private mobile networks foster the expansion
of business activities, such as delivery, engineering project support, mining,
and transportation services. An example of this last category are RadioTaxi services.
Position Determination is defined as:
the determination of the position, speed, and other
characteristics of an object or the gathering of information
pertaining to those parameters by means of the propagation
properties of radio waves.
This application is intended primarily for locating and tracking vehicles,
cargoes, and persons through the utilization of an automized mobile
terrestrial radio communication system. Another application involves the
monitoring of machines and equipment, including machines employed to
sell soft-drinks and fuel and electricity meters.
These systems operate in the 170 MHz and 900 MHz bands, generally in
simplex and with the transmitters mounted on vehicles or carried by persons
or located in stationary transmission sites. Under one of the existing models,
the signals originating in mobile stations must be received by at least three
receiving stations installed within the same infrastructure as the fixed
stations. The receiving stations will be connected to a central signal
processing office by means of physical lines for purposes of identifying and
locating mobile stations vehicles, cargoes, persons.
This market is expected to grow significantly in the next several years,
especially as regards applications associated with global positioning
systems GPS which will permit geolocating, security, and information
data to be offered to users.
Also foreseen for the future are applications in vehicles that also provide
instant access to: rescue and security, assistance to motorists, access to
information and entertainment. The first category includes emergency calls
to an emergency center in cases of accidents or breakdowns. Assistance to
motorists encompasses applications related to navigation, traffic updates,
and information centers. The access to information includes e-mail
transmissions, news, weather, sports, and stock market updates. Lastly,
entertainment in its various forms games, movies, etc. would permit
individuals to remain connected while they travelled in their cars.
103
IV. 3. FIXED NETWORK AND CIRCUIT SERVICES
The Specialized Network Service offers end users telecommunications
service solutions in corporate environments. The target market comprises
corporations that require solutions for telecommunications based in private
virtual networks, which can provide these differentiated services at lower
costs.
The companies authorized to provide the Specialized Circuit Service are
able to supply basic telecommunications infrastructure using their own
means and make available activated fiber optic capability.
The Specialized Network and Circuit Services constitute modes of the
Specialized Limited Service.
The Specialized Network Service is defined as :
the service intended for provision of a telecommunication
between distributed points for purposes of establishing
distinct telecommunications networks for groups of
juridical persons engaged in specific activities.
The Specialized Circuit Service is defined as:
the service intended for provision of a point-to-point or
point-multipoint telecommunication through the utilization
of circuits made available to users.
The technological revolution that spread to data communication services
in recent years was related to a series of factors, such as the development
of protocols regarding communications executed at increasing speeds,
with greater flexibility, and with more efficient network utilization.
Consequently, dedicated lines that previously represented the most
common option only a few years ago began to be replaced rapidly with
circuit and packet switching techniques. The emergence of these platforms
fuelled a significant development of the industry as a result of the
flexibility in adapting a series of services that previously could not be
provided feasibly.
This phenomenon has allowed data services to acquire a series of
characteristics from other telecommunications services, primarily owing to
its considerable flexibility and capacity in transmitting information in a large
bandwidth at a high speed.
Today, studies indicate that in time data traffic will exceed voice traffic,
principally as a product of the growth of the Internet. This growth will be
driven by various factors, including economic expansion, technological and
platform convergence, the rise of new applications, and the great
technological changes that are foreseen. In the short term, the expected
reduction of prices arising from the opening of the market will constitute
105
the major factor influencing demand, whether in terms of the number of
users and accesses or an increase in speed.
In this context, technological trends point to mutli-service platforms based
on Frame Relay, SDH, xDSL, ATM, and IP technologies.
The xDSL technology is one of the most promising as relates to wideband
Internet access. With the establishment of international standards, some
companies in the domestic market are making preparations to offer this
technology.
By offering data communication in packets, Frame Relay generates larger
bandwidths at lower cost in comparison to other protocols, thereby enabling
the integration of data traffic with voice, especially regarding support for
private voice networks. Of the companies authorized to provide Network
Services, there are 20 companies capable of offering Frame Relay on the
market, many of these companies specialized in serving firms with needs
connected to traffic on the international market.
Without question, the most prominent of these technologies consist of the
IP-based networks whose rise was fuelled by the Internet revolution and
that are now increasingly penetrating public networks and making possible
a variety of applications, such as education at a distance, homebanking,
electronic commerce, Internet access, interconnection of local networks and
voice over IP.
A majority of these networks display similar characteristics: they are
constituted by routers, FRADs (Frame Relay Access Device), or switch-access
routers, installed on the users premises, connected to the operators network
edge routers or switches, which are connected to ATM (Asynchronous
Transfer Mode) nodes through fiber optic rings and SDH (Synchronous
Digital Hierarchy) transmissions systems. Access by clients can be
accomplished through IP, Frame Relay, or, in cases requiring greater speeds,
ATM.
The international setting for the expansion of telecommunications services
is highly promising, both in terms of companies and households alike. As
an example, Figure IV.20 presents household expenditures in the United
States in 1998. The position occupied by Pay-TV and the Internet in the
whole array of telecommunications services is noteworthy.
106
Figure IV.20
Household Spending on Telecommunications(USA 1998)
In addition to this, the convergence of technologies expands competition,
which reduces the price for services and promotes the broad dissemination
of the technologies.
The consolidation of a new institutional model in Brazil, defined by the
restructuring of the sector, has stimulated competition in data communication
services and should promote service offerings at reasonable prices and with
adequate quality and customer service. The market forces emerging with
the introduction of competition are extending their data communication
services throughout the country.
To this can be added the dramatic growth of applications based on data
services, for instance Internet applications.
Today, there are approximately seven million data service users in Brazil,
as Figure IV.21 shows. The prospects for an increase in the number of these
users is also promising. By 2005, it is estimated that the country will have
almost 34 million users.
107
Figure IV.21
Data Communication
The users enjoy advantages in terms of the availability of services, quality,
price bargaining, independence of support technology, and, principally,
the reduction in investments in intermediate activities.
As a result of commercial expansion, the trends suggest a reduction in
prices, solutions based on user needs, expansion of service options, and a
differentiation of services arising from the addition of value.
Between 1998 and the end of 1999, 58 authorizations for Specialized
Network Services and 36 for Specialized Circuit Services were issued, and
as Anatel issues new authorizations, the consumer will be in a stronger
position to demand improved conditions in data communication services.
These lower costs, which will promote technological development in this
area, should spark an intense process of expansion in service offerings. This
trend will result in a reduction of entry barriers into the business, thereby
permitting the emergence of a significant number of operators to serve small
and medium market niches.
108
IV. 4. OTHER FIXED SERVICES
Within the fixed services, there are groups that stand out for their utilization
of increasingly pertinent radio-frequency bands, specifically 3.5 GHZ, 10.5
GHz, and greater than 20 GHz, which enable fixed wireless wideband access
and permit the provision of voice, video, and data services.
It should be noted that use of the cited frequency bands depends on the
specific applications, that is:
3.5 GHz Band: generally intended for applications in suburban and rural
areas;
10.5 GHz Band: generally intended for use in urban and suburban areas
with cells with a radius up to 15 km;
20 GHz Band: generally intended for use in densely-populated urban areas
with picocells with a radius up to 3 km.
The market is becoming more attractive throughout the world. The
competitive biddings for frequency bands that took place from 1998 to May
of 1999 in the United States and others held in Canada, New Zealand, and
Australia is evidence of this. International analysts predict that by 2005
US$16 billion, targeting 40 million users, will be invested in wideband
wireless services worldwide.
The regulation of the LMCS (Local Multipoint Communication System), a
system operating in higher frequencies with a small coverage area, which
makes it suitable for applications demanding significant capacity in
densely-populated metropolitan areas, is expected in 2000. In the Brazilian
case, the LMCS represents the first system launched in the new convergent
environment.
New companies are entering the market as fixed network, mobile, pay-TV,
and even Internet access providers. This implies that various providers will
compete for the same base of users by offering different types of services.
In the context of infrastructure options, the space segment has played an
important role, for technological advances have led to lowers costs in these
systems, which, in turn, has made them more accessible to various
applications.
Brazilian legislation mandates satellite exploitation and the provision of
satellite telecommunications services:
Provision of space capacity: it is offered by entities holding the rights for
exploitation of Brazilian or foreign satellites intended to transport
109
IV. 4. OTHER FIXED SERVICES
telecommunications signals. In this category, the company that owns the
satellite leases its space segment resources (transmission means) to other
entities holding a concession, permission, or authorization to provide
telecommunications services, including for its own use.
Provision of satellite telecommunications services: it is carried out by an
entity holding a concession, permission, or authorization to provide
telecommunications services. In this category, the telecommunications
service provider does not have to own the satellite and may lease the space
capacity of the entity exploiting a Brazilian or foreign satellite.
There are four Brazilian satellites in commercial operation in the C band (4
GHz to 8 GHz) Table IV.10 of which one will be replaced at the beginning
of 2000. In 1999, two Brazilian satellite positions, operating in the Ku band
satellites, will enter into operation by 2002, were submitted to a competitive
bidding. In addition to these, 15 foreign satellites had been authorized to
operate in the C band and Ku band (12 GHz to 18 GHz) by 1999.
Table IV.10
Satellites Operating in Brazil (Dec. 1999)
110
IV. 5. MASS COMMUNICATIONS SERVICES
Mass communications services are intended to carry audio voice or audio
and video television telecommunications signals to the entire population
in the providers service area.
They have the following characteristics:
a) distribution or broadcast of point-multipoint or point-area signals means
that the signals are transmitted from a single point to a set of receivers
simultaneously;
b) signal flow primarily in the direction provider-user means that the
majority of information is transmitted to the user;
c) transmission content not generated or controlled by the user means
that users only receive the information delivered to them and that they
have no control over its content;
d) selection of transmission content carried out by the service provider
means that the provider offers diverse program content by it selected
from which the consumer chooses among those offerings.
These services are divided primarily into two significant telecommunications
categories, subscription mass communications services and radio and TV
broadcast services. Mass communications services SCMa are the
subscription telecommunications services provided under the private
regime in the collective interest. Radio and TV broadcast services are the
type of telecommunications service intended for the transmission of sounds
radio broadcasting or radiotelephony or sounds and images TV
broadcasting by means of radioelectrical waves that are directly and
openly received by the general public.
111
IV.5.1 SUBSCRIPTION SERVICES
The Subscription Service is the telecommunications service consisting of
the distribution of video, audio, or video and audio signals to subscribers. It
is distinguished from the Open Radio Broadcast Service by virtue of the
fact that the consumer pays for the service.
It is provided in three forms, each distinguished by the mode employed for
signal transmission. They are: transmission by restricted physical means
Cable TV transmission by terrestrial micorwaves MMDS (Multichannel
Multipoint Distribution System), and satellite transmission DTH (Direct
to Home).
The Cable TV Service is defined in Art. 2 of Law No. 8977/95 as:
the telecommunications service consisting of the
distribution of video and/or audio signals to subscribers by
physical means.
The Multichannel Multipoint Signal Distribution Service MMDS is
defined as follows:
the telecommunications service that utilizes the microwave
bandwidth to transmit signals for reception, through a
contract, in specific locations within the area of service
provision.
The DTH Service is understood to refer to:
the telecommunications service designed to distribute
television or audio signals, or both, by satellite to subscribers
located within the area of service provision.
The Pay-TV Service is a relatively recent arrival in Brazil and has been
subject to significant structural modifications as a result of global trends.
Its presence in the Brazilian market is still relatively small. Nevertheless, it
is projected to grow at an accelerated pace as a consequence of the
resumption of the licensing of service provision and the increased
opportunities for network use in the provision of other telecommunications
services.
The Cable TV Service employs the topology illustrated in Figure IV.22. It
consists of the distribution of programming, originating at a headend, to
the subscribers home by means of cable networks. The headend is the
combination of equipment designed to generate, store, or receive programs
from satellites or terrestrial systems and prepare them for distribution.
113
Figure IV.22
Topology of Cable Television
The MMDS employs a topology similar to the Cable TV Service, with the
difference that its programming is offered to users by means of
electromagnetic waves, as shown in Figure IV.23.
Figure IV.23
Topology of MMDS
In the DTH Service, the programming is delivered to the subscriber directly
from the satellite and received by an antenna at the subscribers premises,
as show in Figure IV.24. Normally, it covers the entire national territory.
114
Figure IV.24
Topology of DTH
All the Pay-TV Services utilize signal encoding in the transmission of
programming, which requires that the user have, in addition to a TV
receiver, a special device for receiving and decoding signals.
The digitization of the signals transmitted by Pay-TV Service operators has
emerged as the great technological advance that will permit an
improvement in transmission signal capacity as, for example, the amount
of program offerings and the quality of the service provided. This will
have an impact on competition and will result in lower prices for the services
Pay-TV has demonstrated a capacity for growth throughout the world,
particularly in the more developed countries. In the United States, for
example, pay services already reach 82% of the households, or
approximatley 80 million subscribers. In Latin America, including Argentina
and Uruguay where penetration of the service is above the average for the
region, pay services exhibit densities that are considered low, less than 20%.
In Brazil, the market has not yet been exploited fully, and it is its very
potential for growth that explains the presence of new operators.
The evolution of the market is marked by the dominance of the Cable TV
Service over the other types of services MMDS and DTH although in
countries such as Great Britain and Spain the DTH has been the dominant
force. The networks that support the service increasingly are shaped around
an alternative for the integrated provision of all telecommunications and
value-added services offered to the consumer, a fact that bolsters projections
for the growth of this segment of the telecommunications sector.
In Brazil, the development model for pay-TV emerged at the end of the
1980s and beginning of the 1990s, such as MMDS and the DISTV TV
115
signal distribution service in areas of poor reception of open TV. In 1996,
the provision of the DTH Service began.
Concessionss and authorizations have been granted on the basis of a plan
to cover all the municipalities of Brazil and areas where competition
demonstrates the greatest potential. The same is taking place in localities
where the implementation of new facilities is required in order to create
the conditions to ensure the universalization of telecommunications services.
In the more economically attractive areas, the implementation of different
types of services has been fostered, thus permitting competition among
MMDS, Cable TV, and DTH operators present in those areas.
The Pay-TV Service reached a mark of 2.8 million subscriptions in 1999 as a
result of the addition of 2.4 million new subscribers to those already existing
in the country at the end of 1994 Figure IV.25 indicating the rapid
dissemination of the service throughout the country. This represents a sixfold growth in the 1994/1999 period and corresponds to an average annual
rate of 47.6%. The Figure also presents the projections for the evolution in
the number of subscriptions during the 2000/2005 period, taking into account
the expected fall in prices and the opportunities for providing other services
with pay-TV support networks. The lower prices will stem from expanded
competition and increased production sparked by a rise in the number of
consumers The utilization of networks used in the provision of other services
is a function of the process of technological convergence.
Figure IV.25
Pay-TV Service - Brazil
Table IV.11 presents the number of subscriptions for Pay-TV Services by state.
116
Table IV.11
Pay-TV Service - Brazil
(thousands of subscriptions)
400.0 1,000.0
1,842.6 2,455.2
2,575.5
2,799.6
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
18.7
0.0
0.0
0.0
0.0
18.7
0.0
0.0
30.6
0.0
0.0
0.0
0.0
30.6
0.0
0.0
42.6
2.7
1.1
11.6
0.7
24.7
0.7
1.1
60.6
5.7
2.4
17.1
1.9
28.2
2.7
2.6
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
38.3
0.0
0.0
15.8
5.8
0.0
15.4
0.0
0.0
1.3
44.4
0.0
0.0
10.0
6.6
0.0
25.8
0.2
0.0
1.8
131.8
6.9
2.6
29.6
7.9
6.8
35.4
7.2
2.9
32.5
199.1
12.0
4.2
44.2
12.5
14.3
42.9
11.2
4.1
53.7
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
1,225.2 1,644.5
155.3
178.1
0.0
0.0
254.3
392.7
815.6 1.073.7
1,766.7
203.8
20.4
433.3
1.109.2
1,857.2
231.9
29.4
486.2
1.109.7
nd
nd
nd
nd
nd
nd
nd
nd
374.1
145.1
48.2
179.8
516.8
203.0
63.8
250.0
476.9
165.0
102.0
209.9
517.1
168.2
113.3
235.6
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
186.3
21.1
0.0
75.4
89.8
218.9
19.4
4.6
66.9
128.0
157.5
19.6
5.4
41.0
91.5
165.6
22.7
13.6
42.2
87.1
117
(thousands of subscriptions)
4,000.0 5,600.0
102.7
10.4
4.3
28.6
3.2
47.1
4.5
4.6
169.9
18.6
7.4
46.6
5.2
76.9
7.3
7.9
271.7
32.0
12.4
73.3
8.2
121.2
11.4
13.2
424.0
53.7
20.2
112.5
12.6
186.3
17.3
21.4
643.4
87.6
32.0
167.6
18.8
278.2
25.5
33.7
944.3
138.1
49.1
241.3
27.0
401.2
36.3
51.3
316.1
19.8
7.2
64.5
21.0
21.9
66.4
17.3
8.0
90.0
492.0
31.9
12.1
91.9
34.4
32.8
100.4
26.1
15.2
147.2
742.7
49.6
19.7
126.4
54.5
47.4
146.6
38.1
28.0
232.4
1,097.9
75.2
31.2
169.5
84.2
66.8
208.8
54.1
50.3
357.8
1,583.5
110.8
48.1
220.7
126.3
91.4
288.8
74.7
87.7
535.0
2,216.0
157.7
71.5
277.6
182.9
120.7
385.7
99.6
147.6
772.7
4,728.4 6,117.7
725.9 1,003.4
108.3
158.0
1,093.2 1,353.1
2,801.0 3,603.2
7,699.5
1,347.1
223.8
1,626.6
4,502.0
9,375.1
1,746.9
306.2
1,888.9
5,433.1
2,603.4 3,568.1
348.7
512.0
46.7
72.4
654.8
861.0
1,553.2 2,122.7
118
7,600.0 10,100.0 13,100.0 16,500.0
734.4
243.5
158.5
332.4
1,018.4
344.1
216.4
457.9
1,363.8
469.5
285.3
609.0
1,781.0
624.6
366.8
789.6
2,259.4
807.0
458.0
994.4
2,768.9
1,007.1
552.3
1,209.5
243.4
35.5
22.8
66.5
118.6
351.6
54.2
37.4
102.3
157.7
493.4
79.8
59.2
151.9
202.5
679.4
114.6
91.4
219.9
253.5
914.2
159.8
137.0
309.1
308.3
1,195.7
215.3
198.4
419.8
362.2
Pay-TV density represented by the number of subscriptions per 100
households reached 6.5 at the end of 1999 compared to 1.1 in 1994 Figure
IV.26. This corresponds to an average annual growth rate of 42.7% in the
1994/1999 period. The Figure gives the projections for the 2000/2005 period,
at the end of which a pay-TV density of 33.3 subscriptions per 100
households is expected.
Figure IV.26
Pay-TV Service Density
Within the national territory, pay-TV service density is distributed according
to Table IV.12.
119
Table IV.12
Pay-TV Density
(subscriptions per 100 households)
120
1.1
2.6
4.7
6.0
6.2
6.5
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
0.8
0.0
0.0
0.0
0.0
1.7
0.0
0.0
1.2
0.0
0.0
0.0
0.0
2.6
0.0
0.0
1.7
0.9
0.9
2.3
1.1
2.1
0.8
0.4
2.3
1.8
2.0
3.2
2.9
2.3
2.8
1.0
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
0.4
0.0
0.0
1.0
1.0
0.0
0.9
0.0
0.0
0.0
0.4
0.0
0.0
0.6
1.1
0.0
1.4
0.0
0.0
0.1
1.2
0.6
0.4
1.8
1.3
0.9
1.9
1.2
0.7
1.1
1.8
1.0
0.7
2.7
2.0
1.8
2.3
1.8
1.0
1.7
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
6.8
3.7
0.0
6.6
8.9
9.0
4.1
0.0
10.0
11.4
9.4
4.6
2.7
10.9
11.5
9.6
5.1
3.7
11.9
11.2
nd
nd
nd
nd
nd
nd
nd
nd
5.8
6.0
3.7
6.5
7.8
8.2
4.8
8.9
7.0
6.5
7.5
7.3
7.4
6.5
8.1
8.0
nd
nd
nd
nd
nd
nd
nd
nd
nd
nd
6.9
4.3
0.0
6.3
19.6
7.8
3.8
0.8
5.4
26.9
5.4
3.7
0.9
3.2
18.5
5.5
4.2
2.2
3.1
16.9
(subscriptions per 100 households)
9.1
12.3
16.3
21.1
26.6
32.7
3.7
3.2
3.4
5.1
4.6
3.7
4.2
1.7
5.9
5.5
5.6
8.0
7.1
5.8
6.4
2.7
9.1
9.3
9.0
12.1
10.6
8.8
9.3
4.3
13.7
15.1
14.0
17.9
15.3
13.0
13.1
6.7
20.0
24.0
21.3
25.6
21.5
18.8
18.1
10.2
28.2
36.7
31.2
35.3
29.2
26.1
24.0
14.8
2.8
1.6
1.1
3.8
3.3
2.7
3.5
2.7
1.9
2.9
4.3
2.6
1.9
5.2
5.2
3.9
5.2
4.1
3.4
4.6
6.4
3.9
3.0
7.0
8.1
5.5
7.5
5.8
6.1
7.0
9.2
5.8
4.6
9.2
12.2
7.6
10.4
8.1
10.7
10.5
13.0
8.4
6.9
11.6
17.8
10.2
14.1
10.9
18.1
15.3
17.7
11.7
10.0
14.3
25.2
13.3
18.5
14.3
29.6
21.6
13.2
7.5
5.8
15.8
15.3
17.6
10.7
8.7
20.3
20.4
22.8
14.8
12.6
25.2
26.3
28.8
20.0
17.8
30.6
32.9
35.3
26.1
24.4
36.1
40.1
41.9
33.1
32.4
41.0
47.1
10.3
9.1
10.9
11.1
13.9
12.5
14.5
14.9
18.2
16.6
18.6
19.5
23.2
21.4
23.3
24.7
28.7
26.9
28.2
30.5
34.3
32.7
33.1
36.3
7.8
6.4
3.6
4.8
22.2
10.9
9.5
5.7
7.0
28.3
14.7
13.6
8.7
10.1
35.0
19.5
18.9
12.9
14.0
42.2
25.3
25.7
18.7
18.9
49.3
31.9
33.6
26.0
24.8
55.7
121
The evolution of the Pay-TV Service density in the 1996/1999/2005 period
can be better visulaized in Figure IV.27.
Figure IV.27
Pay-TV Service Density
122
The growth of the Pay-TV Service density in recent years was marked by
two distinct junctures. In the first stage, up to 1997, the growth of the service
was a product of market penetration in a little over 100 localities Figure
IV.28. From that moment on, the resumption of the bidding process to select
new service providers has led to an increase in density. The prospects for
the expansion of subscribers are directly related to the expansion of coverage
associated with the extension of service to new localities.
Figure IV.28
Localities Served by Pay-TV via cable or MMDS
Table IV.13 shows the distribution of localities served by the Pay-TV Service
by cable or MMDS by state for the 1994/1999 period.
123
Table IV.13
Localities Served by Pay-TV via cable or MMDS
(localities)
124
147
147
147
147
253
316
5
0
0
0
0
5
0
0
5
0
0
0
0
5
0
0
5
0
0
0
0
5
0
0
5
0
0
0
0
5
0
0
13
1
1
1
0
8
1
1
16
1
1
3
0
9
1
1
14
0
0
4
0
0
9
0
0
1
14
0
0
4
0
0
9
0
0
1
14
0
0
4
0
0
9
0
0
1
14
0
0
4
0
0
9
0
0
1
44
1
1
9
1
12
13
1
1
5
84
5
2
9
6
13
13
9
8
19
65
4
2
9
50
65
4
2
9
50
65
4
2
9
50
65
4
2
9
50
110
23
6
13
68
125
24
6
13
82
50
18
10
22
50
18
10
22
50
18
10
22
50
18
10
22
70
23
25
22
75
24
29
22
13
1
0
11
1
13
1
0
11
1
13
1
0
11
1
13
1
0
11
1
16
2
2
11
1
16
2
2
11
1
Figure IV.29 presents the participation in the market by the principal
economic groups providing pay-TV services, measured according to the
number of households covered by the grants at the end of 1994 and 1999.
Figure IV.29
Participation of the Pay-TV Service in the Market
Pay-Audio services are offered as a supplement to the Pay-TV Service,
especially DTH, and have been well received by users because of the
excellent quality and diverse types of music they offer.
125
IV.5.2 RADIO BROADCAST
The Radio Broadcast Service is defined in the General Regulation of the
Brazilian Telecommunications Code, approved by Decree No. 97057/88,
as:
the telecommunications ser vice that enables the
transmission of sounds (radio broadcast) intended for direct
and open reception by the general public.
This service is often referred to simply as Radio, and its importance is
connected to the fact that it reaches all parts of the country and
socioeconomic classes and provides information, culture, and leisure to a
vast majority of Brazilians. It also contributes to the integration of the country.
There are various types of radio service. Each is identified according to the
electromagnetic frequency band it occupies. Therefore, there is Medium
Wave (OM), Topical Wave (OT), Short Wave (OC), and Frequency Modulated
(FM) radio.
The technology that supports the provision of this service is firmly
consolidated, and transmission is executed by means of modulated
amplitude AM or modulated frequency FM electromagentic waves,
both employing analog technology.
In coming years, digital radio broadcast transmission will become available
as a result of technological development and produce a perceptible
improvement in the service quality.
The strategy that has been adopted to serve society at large is intended to
make at least one channel available to each municipality within the national
territory through the Basic Plan for FM and one channel for provision of
the community radio broacast service to all localities. The community radio
broadcast is non-profit, and there is a steamlined and expeditious process
for issuing the grants to provide the service.
As regards the other services, new technical regulations and reviews of their
basic plans have been a principal focus of Anatel. The purpose of these
steps has been to ensure that the same attention given FM and Community
radio is devoted to the other types of services.
As Figure IV.30 shows, the broadcasters for the Radio Broadcast Service
radio broadcasters in their various modes total 3,017.
127
Figure IV.30
Radio Broadcasters
Table IV.14 presents the distribution of broadcasters in the Radio Broadcast
Service by state.
128
Table IV.14
Radio Broadcasters
(broadcasters)
1,573
32
82
1,248
2,935
89
17
5
24
2
30
3
8
1
0
0
1
0
0
0
0
32
5
5
10
1
8
2
1
68
18
3
13
2
22
4
6
190
40
13
48
5
60
9
15
390
37
50
83
30
32
38
15
13
92
3
2
0
0
0
0
0
0
0
1
9
3
1
2
1
0
1
0
0
1
262
20
15
25
11
26
44
18
17
86
664
62
66
110
42
58
83
33
30
180
514
175
19
59
261
15
3
0
4
8
25
5
1
4
15
530
179
25
68
258
1,084
362
45
135
542
440
164
100
176
10
4
2
4
2
2
0
0
307
99
61
147
759
269
163
327
140
42
38
53
7
3
0
0
2
1
14
5
5
4
0
81
19
15
34
13
238
66
58
93
21
129
(broadcasters)
130
1,578
65
80
1,294
3,017
91
17
5
24
2
30
5
8
2
0
0
2
0
0
0
0
32
5
5
10
1
8
2
1
72
18
3
13
2
24
6
6
197
40
13
49
5
62
13
15
391
37
50
83
30
32
38
15
13
93
3
1
0
0
0
0
0
0
0
2
8
3
1
2
0
0
1
0
0
1
272
20
16
26
11
29
47
18
17
88
674
61
67
111
41
61
86
33
30
184
514
174
19
59
262
34
4
0
8
22
24
5
1
3
15
545
186
27
69
263
1,117
369
47
139
562
442
164
100
178
22
10
2
10
2
2
0
0
318
104
66
148
784
280
168
336
140
42
38
53
7
4
0
0
3
1
14
5
5
4
0
87
19
16
37
15
245
66
59
97
23
For Short Wave (SW), Tropical Wave (TW), and Medium Wave (MW) services,
supply has been consolidated, and, consequently, there is little prospect
for significant changes leading up to 2005. It must be noted, however, that
the expansion of the frequency band intended for allocation to the MW
service will result in an increase in the number of channels for the service.
For the Frequency Modulated (FM) band, the future growth of offerings
will be directly linked to the major development trends in Brazil, particularly
those related to population flows from rural to urban areas and vice-versa
or between different geoeconomic regions.
Another aspect that must be highlighted involves the extension of service
to small communities by short reach transmissions introduced with the
implementation of Community Radio services RadCom as a result of the
recent channel designations for its operation.
131
IV.5.3 TV BROADCAST
The TV Broadcast Service is defined in the General Regulation of the
Brazilian Telecommunications Code, approved by Decree No. 95057/88,
as:
the telecommunications ser vice that enables the
transmission of sounds and images (TV) intended for direct
and open reception by the general public.
The TV Broadcast Service is also known as the Open TV Service or simply
TV. As with the Radio Service, it constitutes one of the most signficant
channels for mass communication. Its importance derives from not only
the broad geographic area covered by the services, but also from the quality
with which it can transmit information.
The TV Broadcast Service presently uses analog techology in its
transmissions in the country. Some digital transmissions standards for the
service are already available and in operation around the world. The
standard to be adopted in Brazil will be determined in 2000.
The strategy adopted to serve society is parallel to that for the Radio Service.
The major emphasis here is on the TV Translator Service (known as RTV),
which permits programming to be extended into the interior regions of the
country.
At the end of 1999, there were 262 broadcasting companies for the TV
Broadcast Service called TV broadcasters. Their programming is
transmitted by originating or translator stations. As Figure IV.31 shows, the
number of TV translator stations RTV reached 8,280 in 1999. It is worth
noting that there was a significant increase in the number of translator
station in 1995 and 1996.
133
IV.5.3 TV BROADCAST
Figure IV.31
TV Broadcast
Table IV.15 presents the distribution of Originating and Translator Stations
for the TV Broadcast Service.
134
IV.5.3 TV BROADCAST
Table IV.15 TV Broadcast
(originating and translator stations)
257
6,462
6,719
262
8,280
8,542
29
5
3
6
2
8
2
3
617
104
36
124
45
199
27
82
646
109
39
130
47
207
29
85
31
5
3
6
2
8
4
3
677
17
47
151
46
282
28
106
708
22
50
157
48
290
32
109
60
10
5
6
5
6
8
4
4
12
1,397
127
52
182
93
67
135
89
46
606
1,457
137
57
188
98
73
143
93
50
618
60
10
5
6
5
6
8
4
4
12
1,701
189
93
283
95
88
135
92
56
670
1,761
199
98
289
100
94
143
96
60
682
79
20
7
14
38
2,482
1,018
168
279
1,017
2,561
1,038
175
293
1,055
79
20
7
14
38
3,277
1,187
180
361
1,549
3,356
1,207
187
375
1.587
58
24
13
21
1,469
301
619
549
1,527
325
632
570
59
25
13
21
1,866
424
715
727
1,925
449
728
748
31
8
5
12
6
497
172
93
224
8
528
180
98
236
14
33
8
5
12
8
759
227
169
351
12
792
235
174
363
20
135
IV.5.3 TV BROADCAST
As with radio broadcast service, the market penetration of this service is
firmly consolidated among all socioeconomic classes in the country.
Furthermore, a larger increase in the number of translator stations in relation
to originating stations can be evidenced, a trend which should persist
without any significant changes in the next several years.
The primary issue facing the industry, and one that should become more
important in coming years, refers to the reorganization of the separate links
in the industrys value chain. Previously, the major emphasis was placed
on the geographic coverage of the signal, so that the largest possible number
of potential viewers could be reached. Today, content assumes a central
role in the effort to maximize the value captured by the segment, as a
consequence of the sharp increase in competition sparked by the emergence
of other services and applications. Therefore, the very idea of a network
concept linked to the traditional vision of the service appears to be in the
process of being reformulated on the basis of the new alternatives available
for the distribution of information.
136
V. INVESTMENTS
The development of the telecommunications sector in coming years should
generate important investment opportunities in the country. Those
investments should, in turn, trigger growth in the sector, including jobs, and,
indirectly, an improvement in the efficiency and productivity of the Brazilian
economy in general.
It is estimated that the level of investment necessary to enable an increase
in service offerings and allow demand to be met will be on the order of US$
64.1 billion over the next 6 years Table V.1.
Table V.1
Investments in Telecommunications Services
(billions US$)
US$ 1.00 = R$ 1,75
(1) Includes Specialized Network and Circuit Services, Telecommunications
Network Transport Service, Fixed Satellite Service, and other Fixed
Services.
(2) Includes Global Mobile Satellite Service (GMSS), Specialized Mobile
Service (SME), Special Paging Service (SER), and other mobile services.
(3) Includes Pay-TV and Radio and TV Broadcast services.
Although these are estimates, the evidence clearly suggests that investments
are being redirected from fixed services to mobile services, as Figure V.1
shows.
139
V. INVESTMENTS
Figure V.1
Distribution of Investments
(billions US$)
As Figure V.2 shows, in the 2000/2005 period, investments in fixed services
will remain slightly higher than those for mobile services.
Figure V.2
Average Distribution of Investments
(billions US$)
140
(Appendix A)
DEFINITIONS
ABTM Associação Brasileira de Empresas Operadoras de
Telecomunicações Móveis (Association of Brazilian Mobile
Telecommunications Operating Companies).
ADSL Assymetrical Digital Subscriber Line means the system that
permits wideband signal transmissions on metallic telephone cables. It is
the most common of the DSL technologies, which are viewed as a possible
intermediate stage in the transition to completely optical networks.
AMPS Advanced Mobile Phone System means the analog mobile
cellular telephone system standard adopted in the Americas.
ANATEL Agência Nacional de Telecomunicações (National
Telecommunications Agency).
ATM Asynchronous Transfer Mode means a mode of asynchronous
transfer. A digital transmission protocol that employs fixed-sized data
packets (53 bytes) in which the switching function is accomplished by
hardware, not software.
C BAND 1. (satellite) means the band that covers the 3.7 GHz to 4.2 GHz
frequency band at the downlink and the 5.925 GHz to 6.425 GHz frequency
band at the uplink. 2. (mobile networks) refers to the third frequency band
assigned to the mobile service.
CDMA Code Division Multiple Access means the digital transmission
technique used in radio communication systems. It consists of the
transmission of signals by means of spread spectrum technology in which
the user shares the same frequency band for the entire time period. In the
mobile cellular telephone system, it permits access by a large number of
users to the same channel of the base station without interference.
DISTV means the TV Signal Distribution System by restricted physical
means.
DSL Digital Subscriber Line means the digital technology used for the
transmission of information on of copper wires. The transfer rate depends
on the system employed (for example ADSL, HDSL, SDSL). Intially
conceived for telephone network applications.
DBS Direct Broadcast Satellite refers to relatively high-power specialized
satellites that at the downlink transmit multiple audio or audio and video
channels for reception by small residential parabolic antennas.
DTH Direct to home means the direct distribution of signals by satellite
to the subscribers premises. In general, these are TV, data, or audio signals
associated with the service provided by DBS satellites see DBS.
143
(Appendix A)
DEFINITIONS
ERB means a radio-base station.
GPS Global Positioning System means a high-precision geographic
coordinate locating system for civilian or military use based on the signals
received by a GPS receiver of the DODs (Department of Defense) NAVSTAR
satellite constellation.
Frame Relay means the access protocol based on the level two OSI model
that employs virtual connections to transport data using HDLC
encapsulation through a Wide Area Network (WAN).
FSTS Fixed Switched Telephone Service.
HDLC High Level Data Link Control means the International Standard
Organization (ISO) protocol used in data transmissions.
IMT-2000 - International Mobile Telecommunications means the for thirdgeneration global standard approved by the ITU.
IP - Internet Protocol means the IP-based communication protocol. On
this protocol, data, whether voice, video, image, or text, data flow in packets
which are reassembled at the receiving point in order to retrieve information.
ISO International Organization for Standardization - means the
international organization formed by organs of various countries, such as
ANSI (American), BSI (British), AFNOR (French), and ABNT (Brazilian),
that establishes global industrial acceptance standards.
ITU means the International Telecommunications Union.
Ka BAND means the 18 GHz to 31 GHz frequency band.
Kbps means kilobits per second. A measurment of the speed of data transfer.
Equivalent to one thousand bps.
Ku BAND means the 10.7 GHz to 14.8 GHz microwave frequency band.
L BAND means the 0.5 GHz to 1.6 GHz frequency band.
LGT General Telecommunications Law refers to the 1997 law that
established Anatel, enabled the privatization of the telecommunications
system, and regulated telecommunications services in Brazil.
LMCS Local Multipoint Communication System means the system
characterized by wideband wireless communication that operates in a mode
144
(Appendix A)
DEFINITIONS
similar to that of cellular systems and capable of providing voice, data, and
video services directly to users. It is an evolution of the LMDS.
LMDS Local Multipoint Distribution Service means the service
characterized by wideband wireless distribution systems in a mode similar
to that of cellular systems and capable of providing voice, data, and video
services directly to users.
Mbps Megabits per second means a measurement of the speed of data
transfer. Equivalent to one million bits per second.
MCS Mobile Cellular Service.
MMDS Multichannel Multipoint Distribution Service means a special
service mode that makes use of a microwave band to transmit signals for
reception in specific locations within a service area.
MTSO Mobile Switching Office
NGT Norma Geral das Telecomunicações (General Telecommunications
Norm).
OECD Organization for Economic Cooperation and Development.
OSI Open Interconnection System means the seven-layered protocol
that provides a common base for coordinating standard development in
order to interconnect information-handling systems. Systems conforming
to the standard developed on the basis of the OSI model are referred to as
Open Systems. The OSI model was developed in conjunction with the ISO
International Standard Organization and the ITU International
Telecommunications Union.
PCS Personal Communications Ser vice means a personal
communications system, a private telephone that may possess additional
features in comparison to cellular telephony.
ROAMING means the feature that permits a Roaming Mobile Station to
access or be accessed by the Mobile Cellular Service in a roaming location.
S BAND means the 2 GHz to 2.7 GHz frequency band.
SARC Auxiliary Radio Broadcast and Related Service.
SCMa means Subscription Mass Communications Services.
145
(Appendix A)
DEFINITIONS
SDH Synchronous Digital Hierarchy means the acronym used in
technical language to refer to describe synchronous digital hierarchy
systems. It is an information transport standard over digital networks.
SER Serviço Especial de Radiochamada (Special Paging Service) - means
the telecommunications service, by any means, intended for the
unidirectional transmission of information originated from a base station
and routed to mobile receivers in radio-frequency bands 929 MHz and 931
MHz.
SME Serviço Móvel Especializado (Trunking Service) - means a mobile
terrestrial telecommunications service provided in the collective interest
that utilizes a radio communication system largely to perform trunking
operations.
SMGS Global Satellite Mobile Service means a public restricted satellite
mobile public service, whether domestic or international, that is supported
by a satellite telecommunications signal transport service whose access
stations are interconnected to fixed or mobile terrestrial networks.
SUS - Sistema Único de Saúde (Single Healthcare System)
TDMA Time Division Multiple Access means the transmission technique
in which each channel occupies a particular timeslot on the same frequency
for the duration of the communication. In a TDMA standard mobile cellular
telephone system, the Mobile Stations interchange, through time, in the
transmission/reception over a shared frequency.
UHF Ultra High Frequency means the decimetric wave band, from the
300 MHz to 3 GHz frequency band.
VHF Very High Frequency means the metric wave band, from the 30
MHz to 300 MHz frequency band.
WAN Wide Area Network means a network that covers a large
geographic area and that can be composed of various interconnected local
networks.
WLL Wireless Local Loop means telephony carried out via radio and
covering an area with a radius of approximately 4.8 km.
146
(Appendix B)
SIGNIFICANT EVENTS IN THE CONSOLIDATION OF THE NEW MODEL
1995
approval of Law No. 8977, of 6 January 1995, - Law of Cable TV;
approval of Constitutional Amendments No. 8, which opened the sector
to private capital;
publication of the PASTE Recovery and Expansion Program for the
Telecommunications and Postal System by the Ministry of
Communications.
1996
approval of Law No. 9295, known as the Minimum Law, ordering, among
other things, the organization of the Mobile Cellular Service, the
Telecommunications Satellite Signal Transport Service, and the Limited
Services as well as the utilization of the public telecommunications
network in the provision of Value-Added Services;
approval of the Regulation of the Mobile Cellular Service, the General
Telecommunications Directive, NGT 20/96, as well as the other directives
establishing the conditions for provision of the MCS;
restructuring of the competitive bidding process for the Radio Broadcast
Service by Decree No. 2108, of 24 December 1996;
opening of bidding procedures for the B-band Mobile Cellular Service.
1997
approval of Law No. 9472 General Telecommunications Law LGT,
which substitutes a large part of the Brazilian Telecommunications Code,
Law No. 4117, in force since 1962;
establishment of National Telecommunications Agency Anatel;
publication of the Regulation on Special Services (MMDS, DTH, etc....);
publication of the Regulation of Cable TV;
publication of the Public Notices to Bid for Pay-TV on the Cable, MMDS,
and DTH platforms;
signing of the first 2 Licensing Contracts for provision of the Cellular
Mobile Service in the B band;
signing of the first Term of Authorization by Anatel for DTH Service;
1998
split-up of the Telebrás System companies operating FSTS and MCS;
publication of Decree No. 2617, which orders the capital composition of
telecommunications service providers.
privatization of the Telebrás System (FSTS, MCS, and other services);
signing of the Consession Contracts for FSTS provision;
147
(Appendix B)
signing of 32 Terms of Authorization for the Provison of the
Telecommunications Transport Network SRTT;
signing of Protocol Agreements for the Monitoring of Fixed Switched
Telephone Service Provision;
publication of the General Licensing Plan PGO;
publication of the General Plan of Universalization for FSTS PGMU;
publication of the General Plan of Quality Goals for FSTS PGMQ;
publication of the Directives on the Competitive Bidding for FSTS
provision Authorizations;
publication of the Directives for Use of Radio Frequencies by
Consessionaires and Authorized Providers of the Fixed Switched
Telephone Service for Fixed Wireless Access Systems;
publication of the Directives for the Communication Equipment
Certification Model;
publication of the General Regulation on Interconnection and Services;
publication of the Regulation on Competitive Bidding for
Telecommunications Service Concessions, Permissions, and
Authorizations and Authorizations for Use of Radio Frequencies;
publication of the Regulation on the Collection of Public Fees for the
Right to Use Radio Frequencies;
publication of the Technical Regulation for Radio Broadcasters in
Modulated Frequency Modulated FM;
publication of the Regulation of Telecommunications Services;
publication of the Regulation on Numbering Administration;
publication of the Regulation on Numbering for FSTS;
publication of the General Regulation of Numbering;
ratification of the results of the competitive biddings initiated in 1997,
MMDS (35 new operators), Cable TV (93 new operators), in additions to
DTH (6 new operators);
signing of Concession contracts for new Cable TV operators and Terms
of Authorization for new MMDS and DTH operators;
initiation of operations by new DTH operators;
Pre-Paid service plan for Mobile Cellular Service;
signing of 17 Terms of Authorization for the Provision of the Mobile
Highway Telephone Service (TELESTRADA);
signing of one Term of Agreement for Participation in the INTELSAT
and INMARSAT Organizations;
signing of one Term of Authorization for the Provision of the Mobile
Maritime Service;
signing of three Terms for the Right of Brazilian Satellite Exploitation;
signing of seven Concession contracts for the provision of Mobile
Cellular Service;
signing of the Term of Authorization for Provision of the MCS in Area
Eight;
signing of 4 Concession Constracts for new Cable TV operators;
signing of 14 Terms of Authorization for new MMDS operators;.
signing of 6 Terms of Authorization for new DTH operators
publication of the Directive on the Pre-Paid Service provided by the
148
(Appendix B)

Mobile Cellular Service;
authorizations granted to nine new Specialized Limited Satellite Service
providers;
publication of the first Public Notice to Bid on the Right of Brazilian
Satellite Exploitation;
initiation of operations by nine new MGSS operators;
certification of two new foreign satellite operators.
1999
publication of the Regulation on Direct Access to the Intelsat;
publication of the Regulation on Verification of the Control and Transfer
of Control of Telecommunications Service Companies;
publication of the Technical Regulation on the Provision of Radio
Broadcast Services in Medium and Tropical Waves (120m band);
publication of the Reference Plan for the Channel Distribution for the
Community Radio Broadcast Service
publication of the Regulation on the Contracting of Equipment and
Material by Telecommunications Service Providers;
Publication of the Regulation on Utilization of Fixed Wireless Access
Systems in the Provision of the Fixed Switched Telephone Service
Intended for Use by the General Public FSTS;
publication of the Plan of Authorizations for the Special Paging Service
(SRS);
publication of the Joint Regulation on Infrastructure Sharing among the
Electricity, Telecommunications, and Petroleum Sectors;
ratification of the results of the competitive bidding to award the Right
of Satellite Exploitation;
publication of the Regulation on the Use of Subscription Mass
Communications Networks in the provision of Value-Added Services;
publication of the General Regulation for Certification and Ratification;
publication of the Coordination Manual for Trunking Systems Mercosul
Member Countries;
publication of Procedures for Coordination between Land and Earth
Stations within the Countries of Mercosul;
publication of the Coordination Manual for Unidirectional Paging
Systems Mercosul Member Countries;
Public Invitation to Comment and Public Hearing on Radio-Frequency
Utilization for Mobile Personal Communication Services;
publication of the Act classifying telecommunications services in terms
of collective or restricted interst;
announcement of Public Invitation to award the right to provide Special
Paging Services;
review of Basic Plans for Radio Broadcasting (FM, MO, TO (120M));
signing of 75 Concession Contracts for new Cable TV operators;
signing of 26 Terms of Authorization for new MMDS operators;
149
(Appendix B)

150
initiation of operations by new Cable TV operators;
initiation of operations by new MMDS operators;
implementation of FSTS Provider Selection Code;
initiation of commercial operations by MCS providers (B band) in Area
8 with the establishment of competition throughout Brazil;
authorizations issued for FSTS provision (mirror-image companies)
in the 4 regions defined in the PGO;
signing of Protocol Agreements for Provision of the Mobile Cellular
Service with A-band and B-band operators;
definition of guidelines for the implementation of the Mass
Communications Services Quality Manual;
eight competitive biddings carried out for Cable TV and MMDS;
3,071 authorizations for experimental operations and 9,183 permanent
licenses for Mobile Cellular Service Base Stations issued;
publication of the directive on procedures for investigating and
suppressing violations against the economic order and the control of
acts and contracts;
publication of the second Public Invitation to Bid for the Brazilian
Satellite;
signing of Terms for the Right to Exploite the Brazilian Satellite between
Anatel and a new operator;
authorization of seven new foreign satellite operators;
authorizations to nine new Specialized Limited Satellite Service
providers;
authorizations for two new SMGS operators.
(Appendix C)
PROJECT Br@sil.gov
The project proposes the creation of a national network that
links telecommunications and information resources, opens
the frontiers of teleducation and telemedicine, in addition
to providing society with the tools to search for information
and participate in discussions involving the national destiny.
The Federal Government has, distributed among the three branches, the
largest consolidated telecommunication budget, in excess of R$1.5 billion
per year, in the country. Nevertheless, it has not taken advantage of the
new competitive and modern telecommunications model in terms of
expenditures and utilization. Moreover, Government services do not yet
extend to the majority of the country because none of the three branches
has established a two-way communication channel with Brazilian society,
in spite of having advanced telecommunications systems at their disposal,
which are, nevertheless, not integrated and often marked by the overlapping
of resources and expenditures. This scenario may be nearing its end.
The product of months of studies, research, and discussions, the Br@sil.gov
project submitted last November to the Executive Branch by the national
Telecommunications Agency is an ambitious proposal for transforming the
various government agencies into a model telecommunications service user.
The proposal is simple and pragmatic; the goal is to put an end to the
inefficient and wasteful use of telecommunications services in the
government sector. Specifically, it recommends the convergence of the
various networks into a single Information Highway an electronic highway
paved with birdirectional information and telecommunications resources
capable of transmitting voice, text, images, and sounds and connected to
the Internet.
The advantages of the Information Highway are not limited to the savings
derived from the interlinking of material and intelligent resources. The
proposal mandates that this unified network employing two-way traffic must
be extended to all corners of the nation through Electronic Points of Presence
(PEP), especially in the smallest and most remote localities of the country.
The convergence of resources appears to be the least difficult aspect for
turning the project into a reality. The most ambitious proposal of Br@sil.gov
is to provide the citizen, from the government authority to the average
person, in remote localities with all the services offered by the various areas
of government. At the same time, it gives citizens not only the opportunity
to search for information, but also to participate directly by manidesting
opinions, criticisms, and suggestions concerning issues of public interest
to the highest levels of the Executive, Legislative, and Judicial Branches.
151
(Appendix C)
PROJECT Br@sil.gov
The PEPs will promote this interaction, which will be further facilitated by
the proposal contained in the project to interconnect and promote
interaction among the three branches at the federal, state, and municipal
levels.
Whether installed in town halls, schools, or other official bodies, the
Electronic Points of Presence will serve as multi-service stations
characterized by a range of configurations, from a simple computer to local
networks. All of these will be linked by the IP standard and connected to
the Internet via satellite. The project also recommends that even the smallest
and most isolated municipality in Brazil be given the requisite means to
deal directly with the state or federal government on a daily basis,
expeditiously, and without bureaucratic impediments, concerning pertinent
administrative matters; that authorities, public servants, or the average
individual have the ability to demand actions or receive assistance in matters
regarding health, security, and education; that they be empowered to
manifest their views, concerns, and wishes to members of the National
Congress; that they be provided the tools to obtain information concerning,
monitor the progress of, or request action regarding pending judicial
proceedings.
The implementation of the governments Information Highway as proposed
by the Br@sil.gov project has the added virtue of far-sighted ambition. It
represents a kind of post-industrial colonizing spirit that will, in time,
become an instrument for national integration and bring with it important
social and economic effects. The reason for this is that with the PEPs
communities will no longer be passive, but rather, they will become agents
for the reception, search, generation, and transmition of information.
In summary, the implementation of a high-speed, high-capacity network
capable of assisting the public official, the businessperson, and the small
farmer on an equal basis will influence the country s development,
competitiveness, and flexibility, all indispensable attributes in a globalized
economy.
The following summary of some of the projects sectoral applications
completes the description of its scope and comprehensiveness:
ucação
EDUCATION
Instrument intended to support applications, such as teaching from a
distance, Proinfo, teacher training, school matriculation control, virtual
libraries, access to the global network (Internet), civil servant training, book
banks, control of school lunches, national awareness campaigns, control of
the distribution of allocations of the educational development fund.
HEALTH
Auxiliary instrument for promoting community action and improvement of
152
(Appendix C)
PROJECT Br@sil.gov
the doctor-patient relationship through the dissemination of information
concerning health matters in hospitals, health stations, schools, libraries;
the development and promotion of telemedicine; the availability of
electronic health records nationwide; the control of the distribution of
prescription drugs, the automation of organ donor banks for transplants,
diagnosis and counselling from a distance, and the automation of
procedures related to Social Security (SUS card, scheduling of
appointments).
SECURITY
Applications employed to patrol borders and support the movement of
authorities; to control environmental impacts and ecological disasters; to
create a police information bank, to assist in resolving the hijacking and
theft of vehicles and cargo and in the search for missing persons; to provide
support in cases of public disasters or calamities.
SUPPORT FOR PRODUCTION
Instrument designed to make available financial, commercial, and tourist
information; as well as job banks, instant meteorological updates, electronic
commerce (sale and purchase of assets, products, and services), direct access
to stock and commodities markets, practical information and support for
agriculture.
SUPPORT FOR THE PUBLIC ADMINISTRATION
Instrument aimed at increasing government efficiency in the control of
financial transfers, budget appropriations, automation of tax collection, and
the flow of documents and processes between municipal, state, and federal
administrations; enabling the location of registered processes and the
coordinated dissemination of information between government secretariats
and organs; expediting the issuance of documents and certifications;
accelerating the pace of processes within the scope of the Social Security
Administration and the training of public servants.
GOVERNMENT SERVICES
Designed to convert the system into a popular instrument for monitoring
and means for interacting with the Executive, Legislative, and Judicial
Branches (disclosure of votes, access to legislative material, direct
monitoring of processes in the Judicial system); on-line control of political
campaign spending, the holding of plebiscites, support for the expansion
of public telephony, and the distribution of electronic mailboxes to every
citizen.
There is no question that the Br@sil.gov can be an instrument for the
administrative rationalization of the three spheres of Government, for
opening communication channels between government officials and the
people, for public participation in matters that are of interest to society, and
for the efficient allocation of government resources. In sum, it is an
153
(Appendix C)
PROJECT Br@sil.gov
instrument for the development and democratization of the country. And
finally, there is no question about the projects viability.
The specialists convened by the C-INI National Information Infrastructure
Committee, an advisory body of the Council of Directors of Anatel, to
conceive and elaborate the Br@sil.gov project unanimously agree that the
project is feasible. Among the many reasons for their confidence is the fact
that this project, unlike previous government projects, will require a
minimum of financial resources for its execution. All the areas of government
have the networks, equipment, and human resources needed to integrate
into the Information Highway. Moreover, assuming a minimum savings of
10% on the R$1.5 billion the Government spends on telecommunications
were reinvested in the initiative, the project could be advanced and
maintained, especially if in the beginning resources of Telecommunications
Service Universalization Fund FUST and regional reserves were made
available.
For the specialists who developed Br@sil.gov, the most difficult aspect of
making the project feasible resides in balancing certain strategic factors.
First, Government activities related to serving the population will require
special attention. Subsequently, inhabitants of remote localities without
adequate resources will have to be given priority in terms of service, in order
to minimize the problem of social exclusion; a culture inclined toward the
intensive use of information technology will have to be consolidated; the
awareness and participation of society, which will bear the ultimate
responsibility for administering and monitoring the project, will have to be
raised; and cooperation and the convergence of resources and efforts
human, technical, budget, material, and logistical among the various
government agencies will be required.
In the end, the objective is a decentralized process of administration founded
on a matrix of interrelated responsibilities that considers the attributions of
each agency of the three branches of government at the federal, state, and
municipal levels.
154
Council of Directors
Renato Navarro Guerreiro (President)
Luiz Francisco Tenório Perrone
José Leite Pereira Filho
Luiz Tito Cerasoli
Antônio Carlos Valente da Silva
Chief of Staff
Meri Olivio Chiodelli
Executive Superintendent
Amadeu de Paula Castro Neto
Superintendent for Public Services
Edmundo Antonio Matarazzo
Superintendent for Private Services
Santos José Gouvêa
Superintendent for Mass Communications Services
Jarbas José Valente
Superintendent for Radio Frequencies and Oversight
Marcos Bafutto
Superintendent for General Administration
Edmur Carlos Jorge de Moraes
General Counsel
Antônio Domingos Teixeira Bedran
Ombudsman
Saulo Levindo Coelho
Inspector General
Maury Caetano de Oliveira
Chief of International Advisory Staff
Hélio de Lima Leal
Chief of User Relations Advisory Staff
Rúbia Marize de Araújo
Chief of Technical Advisory Staff
João Carlos Fagundes Albernaz
Chief of Congressional and Public Relations Staff
Pedro Paulo M. P. da Cunha
Executive Commission
Luiz Cláudio Teixeira Herig (President)
Marconi Thomaz de Souza Maya (Substitute)
Caetano Stanzani
Francisco Eugênio Ribeiro Vasconcelos
José Tirteo Zannon
Marcus Vinícius Paolucci
Paulo Roberto da Costa Silva
Pedro Ernesto da Costa Carvalho
Péricles Nepomuceno
Raimundo Duarte
Regina Cunha Parreira
Collaborators
Angelino Caputo e Oliveira
Clarissa Teixeira Ludovico de Almeida
Décio José Miranda de Oliveira
José Edson S. Machado
Lenice Augusta dos Santos
Marco Antônio Campos Martins Filho
Osvaldo da Silva Filho
Sebastião Nascimento Neto
Sueli Matos de Araújo
Translators
Harry Shlaudeman
Luiz Cláudio Teixeira Herig
Marconi Thomaz de Souza Maya
Support Staff
Maria Aparecida M. Machado
Raimundo Nonato dos Santos
Romilda Cunha de Oliveira