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Brazil develops telecommunications industry

wuzhenwic.org Updated: 2020-10-29

Brazil is the country with the largest population and the largest area in South America. It also boasts the largest telecommunications market in South America, with huge development potential.

In the early 1970s, the Brazilian government formed the national state-controlled telecommunications company Telebras to promote the development of the domestic telecommunications industry and improve the quality of telecommunications services.

In 1998, the Brazilian government implemented privatization reforms for Telebras, breaking it up and reorganizing it into 12 companies: one company engaged in long-distance and international data, internet, and transmission services; three regional companies operating local telephone and regional long-distance services; as well as eight mobile communication companies.

Brazil has opened up the telecommunications industry to the outside world since then to raise funds and expand infrastructure. The country has also introduced a bill to stipulate that private capital, domestic capital, and foreign capital can be invested in the telecommunications industry, ensuring the establishment of a competitive telecommunications market structure in the country.

Moreover, the Brazilian government has invested nearly $5 billion to develop and upgrade broadband projects, of which 80 percent funds are used for network infrastructure, while the remaining funds are used to fund related equipment and optical fiber transmission network equipment manufacturers.

In the same year, Brazil released a national broadband development plan, proposing that by 2022, it will increase the number of cities and towns with fiber optic networks to 85 percent of the country, while achieving the goal of having broadband network coverage of 95 percent of the population.

In addition, relevant departments are actively studying the use of 5G technology to improve the level of economic and social development in Brazil, as well as to promote the digital economy. According to the projections of the Brazilian Telecommunications Authority, in the next five years, the average annual growth rate of the fiber optic cable market in Brazil will be as high as 9 percent, and the revenue of the domestic telecommunications service market in Brazil will exceed $50 billion by 2023.

Industry insiders believe that the Brazilian telecommunications market has succeeded in introducing a competitive mechanism earlier than other countries, and that the management and operation levels are relatively high. With the expansion of broadband internet and the promotion of internet penetration, the Brazilian telecommunications industry will usher in new development opportunities.

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