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Brazil: Universal access fund to be used for public telephony project Print E-mail
Friday, 07 September 2007
Brazil's communications ministry wants to use FUST, the universal access fund, to finance the installation of public payphones in communities with fewer than 100 residents.

Communications minister Helio Costa said it would cost US$ 146 million to install public phones in these areas. An additional US$ 3.8 million per year would be required for maintenance and new installations.

"At least 8,760 locations should benefit. Each one will have at least one public phone," Costa said.

In related news, Anatel, Brazil's telecommunications regulator, signed a contract with operators to install phones in 782 institutions for deaf children. The project will use US$ 3.8 million from FUST. The government intends to use FUST resources to finance other health, public security and education projects. Projects requiring approximately US$ 510 million from FUST are awaiting approval.

The fund, which is estimated to contain around US$ 3.1 billion, was established in January 2001 to finance telecommunications access to low-income groups, schools, hospitals, libraries and remote locations. However, the resources have been unavailable due to conflicting legal interpretations about how to use the fund.

Source: Agencia Estado and Business News Americas - WDR/Intelecon Regulatory News.