World Dialogue on Regulation

According to a report by Business News Americas, Anatel, Brazil's telecoms regulator, plans to avoid using existing resources from the universal access fund (FUST) for its broadband access program SCD. Instead, resources generated in 2005 will be used to finance FUST.

The government reserved US$ 191 million in the 2005 budget for SCD, which is the amount Anatel expects to collect next year from FUST as well as the telecom sector fund for auditing activities (Fistel) and other grants.

If more resources are necessary to cover the cost of SCD service in 2005, funds from FUST could be used, according to Anatel superintendent Edmundo Matarazzo. FUST’s resources are expected to reach US$ 1.25 – 1.39 billion by the end of 2004.

"FUST resources that have been collected and not used will become cash reserves. If we use the cash reserves without making provisions for revenues [this year], it will generate a deficit," Matarazzo said.

SCD service should commence by February, 2005 and will permit elementary and middle public school students to access processing centres and databanks containing educational content. The program also allows for voice transmission using VoIP.

Although operators generally disagree with the use of VoIP because it reduces their revenue from fixed line calls, Matarazzo asserts that "it does not help to fight against" IP telephony. By fighting IP telephony, operators would be "obligating someone to buy expensive when they can buy cheap," Matarazzo said.

Intelecon Research & Consultancy Ltd. 23/09/2004