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06/13/2007Regulator to the Rescue? Brazil’s Pro Wi-Fi Rules for Cities
In March, Brazil’s regulatory authority ANATEL approved new rules allowing the country’s 5,500 municipalities to offer broadband-wireless access to constituents through a convenient and affordable licensing procedure. Maximiliano Salvadori Martinhão, General Manager at ANATEL’s Certification and Spectrum Engineering Department, clarified the application process and reflected on the expected impact, which could help spur digital inclusion.
Q: What is the background to ANATEL’s decision allowing Brazil’s municipalities to set up their own networks and offer Wi-Fi access? Is it in response to requests from mayors?
A: In Brazil, municipalities have always been allowed to offer Internet access, provided the regulatory framework is duly attended to. The prior regulatory system required municipalities providing Internet access to obtain from ANATEL a Multimedia Communication Service license, or SCM, for R$9,000. The SCM license was not granted to the municipality itself but rather to a specific company established by the municipality.
But these requirements were sometimes difficult for the municipalities. With this in mind, and considering that municipalities can be important partners in the efforts to offer low-cost Internet access, thereby improving the digital inclusion of Brazilians, the ANATEL board of directors agreed on March 21, 2007, to the following:
• If the service delivered is charged, then the pertinent license remains the SCM , with the procedure summarized above.
• If the service delivered is not charged, then the pertinent license is a “Serviço Limitado Privado ,” or SLP (R$400.00), which can be granted directly to the municipalities.
In response to the frequent requests from municipalities, ANATEL now offers this regulatory alternative. The studies supporting this decision have acknowledged that the progress municipalities have made acquiring or installing low-power devices and networks (operating legally on unlicensed spectrum) to provide access to local-government electronic services as well as access to the Internet.
Also, the studies have verified that municipalities usually deliver the services free of charge through stands, call centers, totems, libraries, and telecenters that are typically owned by the municipality.
Q: Is a municipality still required to approach an ANATEL-approved company?
A: According to the procedure presented above, the municipal governments, after obtaining the appropriate license from ANATEL, can build its own access infrastructure or contract with other operators. Regarding the backbone infrastructure, i.e. the interconnection with the Internet backbone, the local government may also contact the telecom providers that offer this service.
Q: A municipality must still pay all the interconnect fees and manage the customer relationships, or contract with a local service provider to do so, correct?
A: Yes, but this applies only in the service rendering, when municipalities act as operators themselves. However, the telecom law authorizes operators to:
• I - employ someone else’s equipment and infrastructure in performing the services;
• II - contract with third parties on the development of inherent accessories or complementary activities to the service, as well as the implementation of associated projects.
Q: There is an estimate that in Brazil it costs R$20,000 (US$9,666) to set up a Wi-Fi network capable of covering 10,000 people. How was this number determined?
A: I have no information on such an analysis. But note that unlicensed spectrum along with innovative technologies (for instance, VoIP) have made the provision of services by municipalities easier.
Q: Does the ruling describe what kind of wireless equipment must be used — for example, the Wi-Fi 802.11 standard? Does it describe the network design (Wi-Fi, Wi-Fi mesh, WiMAX, etc.)?
A: The decision has made the best of existing rules. (See the links above.) No equipment indication is given. ANATEL adopts a technology-neutral approach. Additionally:
• Unlicensed spectrum equipment must comply with Resolution 365 (http://www.anatel.gov.br/Tools/frame.asp?link=/biblioteca/resolucao/2004/res_365_2004.pdf); and
• Equipment must be certified according to Resolution 242 (http://www.anatel.gov.br/Tools/frame.asp?link=/biblioteca/resolucao/2000/res_242_2000.pdf)
Q: Brazil has more than 5,500 municipalities. What has been the response to the ruling so far?
A: It is too early to answer this question. The decision, by creating a solid regulatory alternative for municipalities, is certainly positively received by the municipalities.
Q: Does ANATEL expect resistance to the ruling from Brazilian telcos?
A: Competition is established in Brazil’s Telecommunication Law as a means to improve the service provided to the users. Therefore, benefits in large scale to the population are expected by this decision. However, it is too early to answer this question with certainty.
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