President Bolsonaro signed into law the bill that introduces modifications and creates new investment opportunities in the Brazilian telecom sector.
As we had reported when the bill was approved, such modifications are summarized as follows:
(i) Introduced the possibility of the migration of fixed switched telephone service concessions (SFTC) to the private system (authorization), with the significant reduction of the obligations, and thus, enabling the development of new businesses (focusing on broadband);
(ii) The end of the limitation of a single extension for the terrestrial and satelital radio-frequencies spectrum licenses, included the right of use of the orbital positions;
(iii) Creation of a secondary spectrum market, allowing the transfer between the telecommunications services providers depending on the prior consent of the National Telecommunications Agency (ANATEL); and
(iv) Exclusion of broadcasting companies from payment of the Fund for Universal Access to Telecommunications Services (FUST);
Law No. 13,879/19 also requires regulation by presidential decree to guide the ANATEL on the investments that should be prioritized in setting commitments for contract migration.
However, ANATEL has started the discussion on the regulation related to the migration from concessions to authorizations – the central point of the new Law. The Board of Directors will be responsible for drafting the proposal for a regulation on migration (that will set principles for the calculation and the modeling), in addition to the new general granting plan.
We put ourselves at your disposal to discuss the subject and clarify eventual doubts.