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JOSÉ LEITE PEREIRA FILHO Member of the Board

ITU-T SEMINAR Multimedia in the 21st Century. PORTO SEGURO, BA 4 JUNE 2001. JOSÉ LEITE PEREIRA FILHO Member of the Board. Overview of Multimedia in the Brazilian Telecommunication Services. INTRODUCTION MULTIMEDIA IN MOBILE SERVICES MULTIMEDIA IN FIXED SERVICES

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JOSÉ LEITE PEREIRA FILHO Member of the Board

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  1. ITU-T SEMINAR Multimedia in the 21st Century PORTO SEGURO, BA 4 JUNE 2001 JOSÉ LEITE PEREIRA FILHO Member of the Board

  2. Overview of Multimedia in the Brazilian Telecommunication Services • INTRODUCTION • MULTIMEDIA IN MOBILE SERVICES • MULTIMEDIA IN FIXED SERVICES • MULTIMEDIA IN MASS COMMUNICATION SERVICES • INTERNET STATUS • CONCLUSIONS

  3. 8 10 9 7 4 3 1 2 5 6 Introduction MOBILE SERVICE: PRESENT SITUATION • 10 OPERATION AREAS • 2 OPERATORS PER AREA

  4. R I R II R III Introduction FIXED SERVICE: PRESENT SITUATION • 3 OPERATION AREAS • 2 OPERATORS PER AREA • 2 NATIONAL OPERATORS FUTURE SITUATION • 3 OPERATION AREAS • FOR BOTH FIXED AND MOBILE SERVICES • 4/5 MOBILE OPERATORS PER AREA • UNLIMITED NUMBER OF FIXED OPERATORS

  5. PRIVATIZATION Introduction INSTALLED FIXED ACCESSES * / ** * Installed Accesses (million) ** Accesses per 100 inhabitants (%) 38,3 / 23,1 27,8 / 16,8 22,1 / 13,6 18,8 / 11,7 16,5 / 10,4 14,6 / 9,3 13,3 / 8,6 1994 1995 1996 1997 1998 1999 2000

  6. PRIVATIZATION Introduction INSTALLED MOBILE ACCESSES * / ** * Installed Accesses (million) ** Accesses per 100 inhabitants (%) 23,2 / 14,0 15,0 / 9,1 7,4 /4,5 4,6 / 2,8 2,7 / 1,7 1,4 / 0,9 0,8 / 0,5 1994 1995 1996 1997 1998 1999 2000

  7. Multimedia in Mobile Services MOBILE SERVICE REGULATION • NO RESTRICTIONS TO PROVISION OF ALL MOBILE GENERATION SERVICES: 2G, 2.5G, 3G, ETC. • THEREFORE, NO RESTRICTIONS TO MULTIMEDIA APPLICATIONS • ONLY LIMITATION IS SPECTRUM: • PRESENTLY THE BANDWIDTH IS 35 MHz PER OPERATOR • IMT-2000 “CORE BAND”: • 60 MHz AVAILABLE BUT NOT YET DISTRIBUTED

  8. Multimedia in Mobile Services INTRODUCTION OF IMT-2000 • MOST AMERICAN COUNTRIES HAVE ADOPTED 1900 MHZ BAND TO EXPAND THE MOBILE SERVICE • THAT DECISION CONFLICTS WITH THE UP LINK ( ALSO 1900 MHz ) OF IMT-2000 “CORE BAND” • TO AVOID THAT PROBLEM, BRAZIL DECIDED TO LICENSE NEW OPERATORS IN 1800 MHz BAND INSTEAD OF 1900 MHz • THIS DECISION ALLOWS IN BRAZIL THE USE OF 60 MHz IN THE “CORE BAND” OF IMT-2000 • VENEZUELA IS ON THE WAY TO TAKE SIMILAR DECISION

  9. Multimedia in Fixed Services MULTIMEDIA COMMUNICATION SERVICE (1/3) • NEW FIXED SERVICE UNDER PROCESS OF APPROVAL • SERVICE WITH BROAD SCOPE TO SUPPORT SEVERAL APPLICATIONS, FOR EXAMPLE : • BROADBAND ACCESS TO INTERNET • DATA COMMUNICATION, AUDIO AND VIDEO • TELE-MEDICINE AND TELE-EDUCATION • THIS SERVICE IS NOT ALLOWED TO PROVIDE: • PUBLIC FIXED TELEPHONE SERVICE • FREE OVER THE AIR RADIO AND TV • PAY TELEVISION

  10. Multimedia in Fixed Services MULTIMEDIA COMMUNICATION SERVICE (2/3) • THE SERVICE RULES ARE INDEPENDENT OF THE TECHNICAL MEANS REQUIRED FOR ITS PROVISION • THE FOLLOWING TRANSMISSION MEANS, AMONG OTHERS, MAY BE USED FOR BROADBAND MULTIMEDIA: • FREQUENCY BANDS : 2.5 , 3.5 , 10.5 AND 24 TO 31 GHz • MMDS NETWORK • DTH NETWORK • CABLE TV NETWORK • xDSL TECHNOLOGY

  11. Multimedia in Fixed Services MULTIMEDIA COMMUNICATION SERVICE (3/3) • TELECOM SERVICES ARE ENTITLED TO USE THE THREE PAY TV NETWORKS (CABLE TV, MMDS AND DTH) ON A NON-DISCRIMINATORY BASIS • THERE IS A SPECIAL REGULATION ON THE USE OF THESE NETWORKS BY VALUE ADDED SERVICES (INTERNET) • THE TV CABLE AND MMDS NETWORKS HAVE BEEN USED SUCCESSFULLY BY INTERNET PROVIDERS TO OFFER BROADBAND ACCESS

  12. Multimedia in Mass communication Services ELECTRONIC MASS COMMUNICATION SERVICE • A SPECIAL REGULATION IS UNDER APPROVAL TO TREAT ON THE SAME GROUNDS THE THREE PAY TV NETWORKS: • CABLE TV NETWORK • MMDS NETWORK • DTH NETWORK • THE PURPOSE OF THIS REGULATION IS TO SET RULES INDEPENDENTLY OF THE TECHNOLOGY AND TO TAKE INTO ACCOUNT THE CONVERGENCE OF PAY TV AND TELECOM SERVICES, INCLUDING MULTIMEDIA APPLICATIONS

  13. Multimedia in Mass communication Services DIGITAL TELEVISION (1/4) • NOV 1998 ANATEL ESTABLISHES TESTS PROCEDURES • AUG 1999 INSTALLATION READY TO INITIATE TESTING • JAN 2000 INCLUSION OF ISDB-T SYSTEM IN THE TESTS • FEB 2000 PUBLISHED THE BROADCASTERS REPORT - PART 1 • APR 2000 PUBLISHED THE BROADCASTERS REPORT - PART 2 • JUN 2000 PUBLISHED THE BROADCASTERS FINAL REPORT • FEB 2001 CONSOLIDATION OF THE CPQD REPORT • APR 2001 ANATEL PUBLIC CONSULTATION

  14. Multimedia in Mass communication Services DIGITAL TELEVISION (2/4) • THE EXCELLENT COVERAGE OF FREE TV OVER THE AIR IN BRAZIL (AROUND 85%) IS THE MAIN DRIVE TO STUDY CAREFULLY THE POSSIBILITIES OF DTV TO PROVIDE UNIVERSAL ACCESS TO INTERNET AND MULTIMEDIA • IN THE PROCESS TO DEFINE A MODEL TO EXPLOIT DTV IN BRAZIL, ANATEL LAUNCHED A PUBLIC CONSULTATION COVERING ALL MAJOR ASPECTS OF THE PROBLEM • THE TECHNICAL STANDARD ITSELF WILL BE CHOSEN ONLY AFTER THE DEFINITION OF THAT MODEL

  15. Multimedia in Mass communication Services DIGITAL TELEVISION (3/4) • AMONG OTHERS, THE MODEL WILL TAKE INTO ACCOUNT: • EXPECTATIONS OF BRAZILIAN USERS • INTERNET ACCESS AND MULTIMEDIA APPLICATIONS • MARKET, SERVICE PROVISION AND INFRASTRUCTURE • ECONOMIES OF SCALE AND STANDARDIZATION • INVESTMENTS, FINANCING AND BUSINESS MODELS • TRANSITION PLAN • DETERMINANT FACTORS: • PRODUCT QUALITY • INTERNATIONAL AGREEMENT PRIOR TO THE DECISION

  16. Multimedia in Mass communication Services DIGITAL TELEVISION (4/4) 17 APRIL 2001 LAUNCHING OF DTV PUBLIC CONSULTATION 29 MAY 2001 PUBLIC HEARING IN BRASILIA, BRAZIL 18 JUNE 2001 SUBMISSION OF COMMENTS 28 JUNE 2001 PUBLICATION OF COMMENTS 23 JULY 2001 SUBMISSION OF REPLIES TO THE CONSULTATION COMMENTS

  17. Internet Status STATISTICS ON THE BRAZILIAN INTERNET (1/3) • NUMBER OF HOSTS CONNECTED TO INTERNET: 876 • INTERNET PROVIDERS: • ABOVE 300 INTERNET PROVIDERS • THE MAJOR 10 PROVIDERS GET 80% OF THE MARKET SHARE • MONTHLY SUBSCRIPTION: AROUND US$ 10 • INTERNET BACKBONE: • 70% PROVIDED BY EMBRATEL THE FORMER STATE MONOPOLY CARRIER • INTERNET DOMAINS: ABOVE 400,000

  18. Internet Status STATISTICS ON THE BRAZILIAN INTERNET (2/3) • INTERNET TRAFFIC: • 60% INTERNAL TO ACCESS LOCAL CONTENTS IN PORTUGUESE • 40% EXTERNAL VIA INTERNATIONAL LINKS • INTERNET USERS: • 10.4 M • 72% CLASSES A and B • 20% CLASS C • 60% BELOW 30 YEARS OLD

  19. Internet Status STATISTICS ON THE BRAZILIAN INTERNET (3/3) • COMMERCIAL USERS: • ENTERPRISES CONNECTED: 65% • SAFETY IS THE MAIN CONCERN OF ENTERPRISES • HOME USERS: • 33 CONNECTIONS PER MONTH, 40 MIN DURATION • PSTN ACCESS: 93% • CABLE MODEM (CABLE TV AND MMDS): 7% • xDSL: 60 K IN 2000 AND ESTIMATED 1 M BY 2003

  20. Conclusions THE BRAZILIAN REGULATORY FRAMEWORK IMPOSES NO RESTRICTION TO MULTIMEDIA APPLICATIONS IN ANY SERVICE • MOBILE SERVICE OPERATORS ARE FREE TO OFFER ANY TYPE OF MULTIMEDIA APPLICATIONS • SINCE BRAZIL HAS ALREADY RESERVED 60 MHz IN THE “CORE BAND” OF IMT-2000, MULTIMEDIA APPLICATIONS VIA UMTS WILL BE AVAILABLE IN THE NEAR FUTURE • A NEW FIXED SERVICE FOCUSINGON MULTIMEDIA APPLICATIONS HAS BROAD SCOPE AND MAY USE SEVERAL BROADBAND TRANSMISSION MEANS LIKE xDSL and PAY TV NETWORKS (WIRE AND WIRELESS)

  21. Conclusions • IN VIEW OF THE EXCELLENT COVERAGE OF FREE TV OVER THE AIR IN BRAZIL (AROUND 85%), MULTIMEDIA APPLICATIONS IN THE MASS COMMUNICATION SERVICE MAY INCREASE ENORMOUSLY AFTER INTRODUCTION OF DTV • THERE IS GREAT EXPECTATION IN BRAZIL ON THE CHOICE OF DTV STANDARD. HOWEVER, BEFORE THE STANDARD CHOICE, A PUBLIC CONSULTATION IS RUNNING IN ORDER TO DEFINE A BRAZILIAN MODEL TO BEST EXPLOIT THE DTV CAPABILITIES • INTERNET IS DEVELOPING VERY FAST IN BRAZIL WITH MORE THAN 10.4 MILLIONS USERS, AROUND 900 HOSTS, MORE THAN 400,000 DOMAINS AND 60% OF THE TRAFFIC TO ACCESS LOCAL CONTENTS IN PORTUGUESE.

  22. www.anatel.gov.br

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