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Brazil: Mobile and fixed-line telcos fight over rates Print E-mail
Thursday, 14 April 2005
Disagreements among telecommunications operators over the adjustment of tariffs for calls from fixed to mobile networks will now be resolved through arbitration by the National Telecommunications Agency (Anatel). There has been no agreement among the companies.

Long distance operators – Embratel and Intelig – insist on reducing interconnection rates on calls repassed to mobile operators by 10%, from R$0.38 per minute to R$0.35. The fixed-line operators – Telefonica, Telemar and Brasil Telecom – want a 2% increase in this rate, raising the repass from R$0.38 to R$0.39. However, the mobile operators will not abandon a minimum increase of 6%, raising the fixed-to-mobile rate to R$0.40 per minute.

The lack of agreement after months of negotiation will result in the administrative council of Anatel arbitrating the decision at the same time that a committee of three superintendents will likely be formed to analyse the question further.

The evolution of the telecommunications regulatory framework could be responsible for the origin of the dispute. Until last year, the value that the fixed-line operators had to pass to the mobile operators was determined by Anatel. Thus, of the R$0.64 a minute charged to the user for fixed-to-mobile calls, R$0.20 was deducted in taxes, R$0.06 remained in the treasury of the concessionaires and R$0.38 was passed to the mobile operators.

From the beginning, the division did not please the fixed-line operators. Beginning this year, though, as a signal of the maturity of the model, the adjustment of the interconnection rate would evolve based on agreements among the parties.

The objective of Anatel is that the sector will find its own parameters for adjusting rates. Days ago, in fixing the rate adjustment for the public at 7.99%, Anatel created the expectation that the companies would reach an understanding about the setting of interconnection rates. However, a consensus has proven impossible in the face of such disparate expectations.

Source: Gaceta Mercantil