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Policies and Challenges on the Brazilian National Broadband Plan

Ministry of Communications. Policies and Challenges on the Brazilian National Broadband Plan. André Gomes Ministry of Communications Brazil. Pretoria, November 12 th 2013. Ministry of Communications. Summary A brief background Wholesale Network Model – Telebras

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Policies and Challenges on the Brazilian National Broadband Plan

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  1. Ministryof Communications Policies and Challenges on the Brazilian National Broadband Plan André Gomes MinistryofCommunications Brazil Pretoria, November 12th 2013

  2. Ministryof Communications • Summary • A brief background • Wholesale Network Model – Telebras • Retail approach: “Popular” BroadbandPlan • Tax incentives andfundingmodels • SpectrumAvailability • Final remarks

  3. Ministryof Communications A brief background 7x 4x 4x Different countries facingdifferentchallenges

  4. Ministryof Communications A brief background - NationalBroadbandProgram (PNBL) 1 Mbps for R$35 (~US$15) Regulatory Framework Infrastructure Deployment Framework Digital content and applications 2015 Coverage Brasília + 26 StateCapitals Extension 30.803 km Municipalities 4.283 Incentivos fiscais e financeirosao serviço PNBL May 2010 Goal: 40 millionhouseholds by2015 (~70%) Ministryof Communications – MC NationalRegulatoryAgency – Anatel National Backbone Network (Telebrás) Tax incentives Local manufacturing and R&D

  5. Ministryof Communications Wholesale Network Model – Telebrás

  6. Ministryof Communications Wholesale Network Model – Telebrás: wholesalecapacity to local ISPs DarkFiberfromstate-ownedcompanies Local ISPs: last-milepartners May2010: Formallystarted its activities Goal: +4.200 cities until 2014 June 2011: First ISP connected 2012 2012/2013 2013/2014 Agreements/Partners UnasulFiberOpticalCable Source: Telebras.

  7. Ministryof Communications Wholesale Network Model – Telebrás: wholesalecapacity to local ISPs DarkFiberfromstate-ownedcompanies Local ISPs: last-milepartners May2010: Formallystarted its activities Goal: +4.200 cities until 2014 June 2011: First ISP connected AuditCourts, local licensesandlowworkforcedelayedthe network deployment 2012 2012/2013 2013/2014 Agreements/Partners UnasulFiberOpticalCable ISPsneeded to provideretailservice Source: Telebras.

  8. Ministryof Communications Wholesale Network Model – Telebrás: wholesalecapacity to local ISPs DarkFiberfromstate-ownedcompanies Local ISPs: last-milepartners May2010: Formallystarted its activities Goal: +4.200 cities until 2014 June 2011: First ISP connected 2012 2012/2013 2013/2014 Agreements/Partners UnasulFiberOpticalCable 1 Mbps (clearchannel): From US$ 400 => US$100 2.500 ISPs (2010) Source: Telebras.

  9. Ministryof Communications Retail approach: “Popular” BroadbandPlan

  10. Ministryof Communications Retail approach: “Popular” BroadbandPlan – 1 Mbps for R$ 35 (US$ 15) June 2011: Incumbentsagreed to provide a Popular BroadbandPlan to all cities until 2014 June 2013: 2 millionaccesses (~10%) 3.214 cities covered 70% ofhouseholds in BR canafford a R$ 30 monthlysubscription Source: Anatel. July 2013. / GSMA. Mobile Broadband at the Bottom of the Pyramid In Latin America. June 2013.

  11. Ministryof Communications Retail approach: “Popular” BroadbandPlan – 1 Mbps for R$ 35 (US$ 15) June 2011: Incumbentsagreed to provide a Popular BroadbandPlan to all cities until 2014 June 2013: 2 millionaccesses (~10%) 3.214 cities covered 70% ofhouseholds in BR canafford a R$ 30 monthlysubscription NGOsarguethatmostpeoplecan´tactuallybuy it Source: Anatel. July 2013. / GSMA. Mobile Broadband at the Bottom of the Pyramid In Latin America. June 2013.

  12. Ministryof Communications Tax incentives andfundingmodels

  13. Ministryof Communications Tax incentives andfundingmodels Universal ServiceFund – USF: US$ 600 mi/y Butnotavailable to broadband ICT Devices: No federal taxes applied to smartphones SpecialTax Regime: Tax incentives only to projectsapprovedbytheMinistry 7 billiondollarsalreadysubmittedbynow

  14. Ministryof Communications SpectrumAvailability

  15. Ministryof Communications Spectrumbands: 2,5 GHz, 450 MHz and 700 MHz 3,5 GHz Local licensesneeded 450 MHz 40 Km 5 Km Sweden, Norway, Russia, Hungary...

  16. Ministryof Communications Spectrumbands: 2,5 GHz, 450 MHz and 700 MHz • Broadcastersraiseinterferenceissues • Lowincomefamilies do notown a Digital TV • MobileOperatorsarguethat: • Auctionwilltakeplace “too soon” • Highcostof “cleaning” spectrum is a problem • Focusedoninfrastructuredeployment, especially to underservedareas

  17. Ministryof Communications Final Remarks

  18. Ministryof Communications • Final remarks • Wholesale Network Model – Telebras • Ready-to-useinfrastructuretakeslongerthanexpected • Retail approach: “Popular” BroadbandPlan • Retailserviceprovision is critical • Tax incentives andfundingmodels • Tax incentives maybeeasier to use in developing countries than USF • SpectrumAvailability • Relyingupononesinglefrequencyband is a risk

  19. Ministryof Communications André Gomes andre.gomes@mc.gov.br BroadbandDepartment Secretariatof Telecommunications Ministryof Communications www.mc.gov.br twitter.com/Minicombrasil conexaominicom.mc.gov.br flickr.com/photos/conexaominicom youtube.com/minicombrasil

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