Following the lead of the U.S. FCC's broadband plan, Brazil's government is making a similar dedication to bring broadband services to more low-income subscribers.
To achieve its broadband goal, the Brazilian government will put up $6.1 billion and reestablish Telebras, the former state telecom monopoly, with a four-year, $1.78 billion capitalization plan. Telebras will operate a 23,000 km fiber backbone. In addition, Brazil's state development bank BNDES will give Telebras $4.14 billion in loans.
However compelling the government thinks the plan will be, competitive carriers that gained permission to provide services in the late 1990s argue that the new plan could hinder their ability to operate in the region because it will create a sub market.
- Reuters has this article