Alternatives of Public Policies to Deploy Universal Fixed Broadband Infrastructure: Analysis of the Options Considered in Brazil

5th Communication Policy Research South Conference (CPRsouth5), Xi'an, China

23 Pages Posted: 13 Dec 2010

Date Written: December 6, 2010

Abstract

Almost twelve years ago, telecommunications market in Brazil went through deregulation and privatization processes. Since then, it has been operated solely by private-owned companies. This model, combined with lack of directive policies and absence of real competition, led to high price and low density of all telecommunications services, a scenario where broadband access is a particular case. This paper examines the three options considered in the country to face these problems. First, a state-owned company, using existing optical fibers from other utilities companies, is supposed to offer broadband access directly to both consumer and carrier segments, competing with existing providers. It would assure the infrastructure to be available at poor and remote areas and would also attract local providers, whose investment would reduce the need for public resources, helping government to focus on the most vulnerable population. Alternatively, a public-private partnership (PPP), transferring this infrastructure to a new or existing private competitor, would promote competition and, therefore, lower prices and improve broadband density. The final option, supported mainly by private providers, is to maintain the existing private model: it may be possible to obtain universal access with funds provided by public resources and prices could drop if taxes were cut.

Keywords: broadband, competition, emerging markets, infrastructure, regulation

Suggested Citation

de Sousa, Rodrigo Abdalla Filgueiras and Kubota, Luis Claudio and de Oliveira, João Maria, Alternatives of Public Policies to Deploy Universal Fixed Broadband Infrastructure: Analysis of the Options Considered in Brazil (December 6, 2010). 5th Communication Policy Research South Conference (CPRsouth5), Xi'an, China. Available at SSRN: https://ssrn.com/abstract=1724468 or http://dx.doi.org/10.2139/ssrn.1724468

Rodrigo Abdalla Filgueiras De Sousa (Contact Author)

Ipea ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil
+55-61-3315-5515 (Phone)

HOME PAGE: http://www.ipea.gov.br

Luis Claudio Kubota

Institute of Applied Economic Research (IPEA) ( email )

Rio de Janeiro, RJ, 20020-010
Brazil

João Maria De Oliveira

affiliation not provided to SSRN

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