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TCU files suit on franchise and fixed internet limit

by ace
TCU files suit on franchise and fixed internet limit

The limitation of use and application of data franchise on fixed internet, for now, is out of discussion in Brazil. Since the National Telecommunications Agency (Anatel) will not decide on the matter in 2020, the Federal Court of Auditors (TCU) decided to close the case related to the case and understood that measures taken in recent years by the regulatory body have softened the effects of the market.

In 2016, the agency banned, with precautionary measure, limits, speed reduction, collection of excess traffic or suspension of fixed internet service indefinitely for any provider with more than 50,000 accesses, which ended up discouraging large operators to take action. Thus, with the justification of staff shortages and prioritization of other initiatives, the regulation of the analysis of fixed broadband marketing models was abandoned in 2019.

Anatel banned, in 2016, limitation of the use of data applied by large operators. Source: Playback

What’s changed?

In 2016, major Brazilian carriers announced that their fixed internet plans would be offered with a data usage limit. Discussions took over the headlines, and opinions were widely discussed. If at the time there was a fear of lack of competition, over the years several regional providers emerged in the market, causing the giants to lose their prominence.

Small providers had about 2.8 million customers, and fiber optics was still starting, accounting for only 10.6% of access. Today, these providers together register more than 10 million accesses, with a large part served by fiber optic structures (64%) and radio (18.9%).

“Given the lack of perspective, in the short term, that the Agency decides on the merits of the imposition of data franchising in fixed broadband service and that air terminates to evaluate possible effects related to these practices, the specialized secretariat proposed filing the process for reasons of efficiency and rationality,” said the Minister of TCU , Bruno Dantas, responsible for the action.


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