Good morning! The new legal framework for telecom companies. Just 24 hours after the idea of a new tax on financial transactions became public, President Bolsonaro buried it—for now. Brazil and the U.S. could strike a religious alliance. (This newsletter is for platinum subscribers only. Become one now!)
New law to modernize Brazil’s telecom sector
After over three years of stalling, the new legal framework for telecom companies has finally passed in Congress. It replaces the current model, which is based on public concessions for landline telephone operators, for one of operating authorizations, which would give companies more freedom to set prices and choose the regions in which they want to operate.
Why it matters. Brazil’s legal framework dates back to 1997, when telecommunications were based on landline telephony and the internet had not yet caught on. It lifts outdated requirements on companies and could unclog BRL 34bn in investments. We break down the main changes:
- No more concessions. The current telecom framework imposes a series of obligations on companies, from pricing rules to the need to universalize services around the country. Companies have criticized the model, claiming that it imposes heavy investment costs on services such as public...