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

2 To promote the development of telecommunications in the country, so as to provide a modern and efficient telecommunication infrastructure, capable of offering the best and most diversified services available, at fair prices, throughout national territory The Mission

3 To show the actions taken by the Brazilian Government in order to promote Broadband access to all Brazilian municipalities, with the participation of the incumbents The Presentation´s Objective

4 Brazil – The Territory Brazil occupies almost half of South Americas territory (47%), accounting for 8,5 million km 2 (3,3 million square miles)

5 5th of the worlds most populous country, with approximately 190 million inhabitants A Federation composed of 26 States and a Federal District, distributed among 5 geographic regions municipalities Brazil - Political and Population Aspects

6 Brazils Legal and Institutional Framework General Telecommunications Law (LGT) – Law nº 9.472, July 1997 Public Regime Services Private Regime Services Concessions Continuity and universal service obligations Authorizations Market ruling PSTN Cable TV, mobile Telephony, PSTN, etc

7 to guarantee the right of every person or institution, independently of their location and socio-economic condition, the access to telecommunication services withheld in public regime Universal Service Obligations in Brazil What does the Brazilian Universal Service Obligation mean?

8 Goals of the Universal Service Obligations Availability of collective and individual access Access to the disabled Access to public or social institutions Access to rural areas, unserved remote areas of the country (…) Goals of the Universal Service Obligations in Brazil

9 Brazils Public Regime The Incumbents have continuity and universal service obligations Brazilian Incumbents Universal Service Continuity

10 PGMU FUST FUND Concession Onus Specific Fund FUST (only for PSTN)* * FUST has nearly US$ 4 billion and was used in 2007 for the first time to expand access to telecommunication services for the deaf The Cost of Universal Service Obligations in Brazil

11 The lack of telecommunication infrastructure is the main obstacle in attending all Brazilians with Broadband access Broadband Access in Brazil: The Challenge

12 How to implement Broadband infrastructure throughout the country enabling access to every Brazilian municipality? How can PSTN incumbents help overcome this challenge? Studies indicate that the needed broadband infrastructure is composed of a sum of: A) Backhaul B) Broadband Access Network Broadband Access in Brazil: The Challenge

13 Backhaul as a Universal Service Goal

14 B) Broadband Access Network Backhaul instead of Telecentres The Free Broadband in Schools Program Actions taken by the Brazilian Government to implement the desired infrastructure: A) Backhaul Implemented Actions

15 As a trade-off to the implementation of the Backhaul, the incumbents were no longer obligated to install and maintain the Telecentres Backhaul as a Universal Service Goal The Trade-off Telecentres Backhaul

16 Brazilian Backhaul Backhaul is a part of the PSTN high capacity core network, connecting the access network to the incumbents Backbone The Brazilians Government Policy, therefore, was to spread the Backhaul into all Brazilian municipalities as a Universal Service Goal Backhaul MUNICIPALITY Backbone

17 Backhaul as a Universal Service Goal Backhaul Advantages X Telecentres with dial-up connection to internet The Backhaul makes available the access to broadband, potentializing network and offer of services Backhaul MUNICIPALITY Backbone

Brazilian municipalities had no Backhaul Expansion of km of infrastructure Benefits for more than 50 million Brazilians Investment around US$ 1 billion (when taking into account maintenance of the service until 2025) Backhaul as a Universal Service Goal Backhaul Achievements Decree nº 6.424, of April 4, 2008, altering the PGMU in force

19 Other public policies to promote Telecentres in Brazil Several initiatives to promote the spreading of Telecentres have been developed in Brazil. The GESAC Program - Electronic Government at Citizen Care Service Center The Community Telecentres Program Install and maintenance rural Telecentres by the incumbents

20 Access Network Expansion The Broadband Program in Schools Access Network – last mile infrastructure, connecting the final user to the service operator Agreement between the Brazilian Government and the incumbents – Program that calls for Free Broadband in Schools

21 Free Broadband in more than 56 thousand urban schools by 2025 Access to 83% of students in public schools - 37 million students By 2010, all municipalities will have broadband network Access Network Expansion The Broadband Program in Schools

22 Anatel is supervising the Backhaul implementation and expansion capacity. The change of direction will bring about broadband access to the majority of the population. Next Steps

23 Thank you Superintendence of Universal Service Brazil Cristina Coutinho Moreira Executive Manager of Universal Service Contracts