Restricted mobility or restricted competition? Fixed- mobile convergence and universal access in Brazil

The article explores the Brazilian regulation on fixed and mobile phone services and its impacts on efforts to address the deficit of ICT networks and services in low-income and low-density areas. We compare the three most significant cases in Brazil of fixed phone services deployment using GSM technology on a secondary basis and wireless local-loop technology associated with CDMA, investigating the effect of recent regulatory changes that facilitate access to spectrum by fixed phone enterprises. The analysis is based on the „microtelco‟ model proposed by Galperin and Bar (2006) and demonstrates that a favorable regulatory environment is an essential asset to foster new business models that are able to overcome persistent difficulties in universalizing fixed phone service both in attractive markets as well as in low-income and low-density areas.

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