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BDT and Mindel De La Torre, President, Telecommunications Management Group, Inc

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BDT and Mindel De La Torre, President, Telecommunications Management Group, Inc Agência Nacional de Telecomunicações do Brasil (Anatel) Effective regulation Case study: Brazil International Telecommunication Union This case study was conducted by Doreen Bogdan-Martin, Regulatory Officer, ITU/BDT and Mindel De La Torre, President, Telecommunications Management Group, Inc. The report is based on field research undertaken in Rio de Janeiro, Brasilia, and São Paulo from 16-20 April 2001, as well as reports and articles identified as footnotes. A list of persons and organizations met during the field research is contained in Annex 3. The invaluable assistance of the staff of the Agência Nacional de Telecomunicações do Brasil (Anatel), particularly José Leite Pereira Filho, Counselor, and Pedro Paulo M. P. da Cunha, Advisor, in arranging interviews and provision of information is deeply appreciated as is the cooperation of the many organizations who agreed to give us input for the study. Without their support, a report such as this could not have been prepared. The cooperation of the ITU’s Americas Regional Office is also acknowledged. The views expressed are those of the authors and may not necessarily reflect the opinions of the ITU, its members, or the Government of the Federative Republic of Brazil. This case study is one in a series of five case studies on Effective Regulation. Additional information can be found on the website of the BDT’s Sector Reform Unit http://www.itu.int/ITU-D/treg/ © 2001 ITU International Telecommunication Union Place des Nations CH-1211 Geneva, Switzerland Effective regulation – Case study: Brazil TABLE OF CONTENTS Page 1 Introduction: Purpose of the Case Study............................................................................. 1 2 Country Background ........................................................................................................... 2 2.1 Overview................................................................................................................. 2 2.2 Demography............................................................................................................ 2 2.3 Economy ................................................................................................................. 3 2.4 Human Development, Education, Health................................................................ 5 2.5 Political Environment ............................................................................................. 5 3 Sector Reform...................................................................................................................... 6 3.1 Telecommunications Sector Legislation and Regulation........................................ 6 3.2 WTO Commitments................................................................................................ 7 3.3 Ownership of Operators.......................................................................................... 9 3.4 Future Liberalization Plans ..................................................................................... 9 3.5 Convergence............................................................................................................ 10 4 Market Structure and Growth of the Communications Sector ............................................ 10 4.1 Fixed-line services .................................................................................................. 10 4.2 Mobile..................................................................................................................... 12 4.2.1 A and B Band – Mobile Cellular Service (Serviço Móvel Celular – SMC) ........................................................................................................ 12 4.2.2 C-E Bands – Personal Mobile Service (Serviço Móvel Pessoal – SMP).. 15 4.2.3 Pre-Paid Services...................................................................................... 16 4.3 Internet .................................................................................................................... 17 4.4 Cable TV................................................................................................................. 18 5 Institutional Structure.......................................................................................................... 19 5.1 Legislation Creating the Regulatory Body.............................................................. 19 5.2 Mandate/Mission..................................................................................................... 19 5.3 Structural Independence.......................................................................................... 20 5.3.1 Accountability and Reporting Requirements............................................ 20 5.3.2 Functions .................................................................................................. 22 5.4 Financing and Budget ............................................................................................. 22 5.5 Procurement Authority............................................................................................ 24 6 Organization of Anatel ........................................................................................................ 24 6.1 The Board of Directors ........................................................................................... 25 6.1.1 Appointment and Removal of Counselors................................................ 25 6.1.2 Required Qualifications............................................................................ 25 6.1.3 Functions of President of the Board of Directors ..................................... 25 6.1.4 Functions of Board of Directors ............................................................... 25 6.2 Advisory Council .................................................................................................... 26 6.3 Strategic Committees .............................................................................................. 27 6.4 Ombudsman ............................................................................................................ 27 6.5 Executive Superintendent........................................................................................ 27 6.6 Superintendencies ................................................................................................... 27 6.7 Offices Reporting to the President of Anatel .......................................................... 28 iii Effective regulation – Case study: Brazil Page 6.8 Staff......................................................................................................................... 29 6.8.1 Staff Profile............................................................................................... 30 6.8.2 Wages........................................................................................................ 30 6.8.3 Training..................................................................................................... 30 6.8.4 Outsourcing/Needs.................................................................................... 30 7 Consumer Interest and Protection........................................................................................ 31 8 General Regulatory Powers................................................................................................. 34 8.1 Rulemaking ............................................................................................................. 34 8.2 Arbitration and Dispute Resolution......................................................................... 34 8.3 Enforcement Authority............................................................................................ 35 9 Licensing ............................................................................................................................. 36 10 Interconnection .................................................................................................................... 37 11 Universal Service................................................................................................................. 38 11.1 PGMU ..................................................................................................................... 38 11.2 FUST....................................................................................................................... 38 11.3 FUNTEL ................................................................................................................. 40 12 Quality of Service................................................................................................................ 40 13 Management of Scarce Resources....................................................................................... 41 13.1 Spectrum Management............................................................................................ 41 13.2 Numbering............................................................................................................... 41 14 Satellite................................................................................................................................ 42 15 Equipment Certification ...................................................................................................... 42 16 Relationship with Industry................................................................................................... 42 16.1 Transparency and Availability of Information and Decisions ...............................
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