“Fair Share” debate and regulatory initiative in the brazilian telecommunications sector

The National Telecommunications Agency (“ANATEL”) is currently gathering input from society on a possible telecom network regulation concerning heavy users and the creation of specific network-usage fee.

In March 2023, the ANATEL launched a public consultation (Tomada de Subsídios n. 13 – available here) to receive contributions on potential solutions to the massive growth of data traffic on telecom networks caused by the large-scale use of internet services by over-the-top applications ("OTT").

Set as a priority in ANATEL’s regulatory agenda for the biennium 2023-2024, the discussion concerns the possible regulation of the use of telecom networks by heavy users. This includes their obligations to properly use telecommunication services, equipment, and networks and to face the increasing investments in network infrastructure by telecom operators.

This proposed regulation would directly affect OTT providers by not only establishing further regulatory obligations but also introducing a specific network fee that would be paid by OTT providers to telecom operators to compensate them for the massive use of their networks. This fee would represent a ‘fair share’ within the existing telecom pricing structure.

In general terms, the main points of ANATEL’s public consultation are:

(i) Addressing the potential gap in investments to develop telecom networks;

(ii) Examining ANATEL’s authority to create network fees;

(iii) Evaluating the regulation of OTTs by ANATEL, and the possible restriction of telecom networks use;

(iv) Assessing the possible violation of the net neutrality principle in case of any distinction between OTT providers;

(v) Exploring ways in which OTT providers could help to improve the network infrastructure; and

(vi) Analyzing the imbalance between expenses and revenues faced by telecom operators in view of the increasing demand for network capacity.

The public consultation will be open to receive contributions until July 31, 2023.

For more information about this topic, please contact us.

This newsletter provides information about legal developments in Brazil to clients and members of Cescon, Barrieu, Flesch & Barreto Advogados. The content included herein is not meant to provide legal advice with respect to any specific matter. We do not undertake to update, supplement or modify the information contained herein.

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