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Reality Check: Brazil’s new broadband regulations

In the beginning of November, Brazil’s telecommunications regulator Anatel — the Agência Nacional de Telecomunicações (National Agency of Telecommunications)established new regulations for companies that provide broadband connections. The new measures are meant to regulate service quality, with the goal to maintain at least 60% of the speed acquired by the user in the contract, either by mobile or wireline broadband, and ensure that the services work properly.

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The reason behind the new regulations is the exponential increase in user complaints to the government agency. The complaints were about the transmitted signal, the unavailability of service during specific hours of the day and signal interruptions in the acquired speed, among other issues. On the other hand, the companies claimed that they should only provide 10% of the speed predicted in the contracts. So users were paying for a certain speed and service, and were not getting what they were paying for.

Anatel began researching this issue in 2007 with the purpose of identifying key elements in critical telecommunication infrastructure in Brazil. The agency’s plan was to identify threats and vulnerabilities; evaluate risks and offer controls to minimize those risks to an acceptable level; propose recommendations to prevent security incidents; maintain operational stability; and establish strategies, policies, methods and tools to protect telecommunication infrastructure. Finally in 2011, Anatel decided to take action by developing resolution No. 574 and No. 575.

The resolutions drafted in 2011 defined many quality goals that the telecom companies need to reach, including all aspects related to the connections and systems used, speed, service measurement, complaint rate, network indicators, treatment indicators, research indicators and more. Since these resolutions were published in 2011, many companies have already been fined, and some even suspended because they disregarded the regulations. To make sure that the companies do not ignore the resolutions, Anatel released an online program in 2012 that enables users to measure their connection speed, giving the user the ability to evaluate the telecom companies themselves. According to the resolution, the companies have to ensure an average monthly speed equivalent to 60% of the speed acquired by the user. However, this percentage is just a starting point. In coming years, the companies will have to increase this percentage; for instance, by November 2013, they will have to provide 70%; in 2014, 80% and so forth.

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Anatel believes that all these changes will be favorable for the Brazilian telecom market, increasing competition among companies and forcing them to adapt to these new rules, consequently improving their products and services. Along with these regulations, there is the Marco Civil Regulatório da Internet no Brazil (Regulatory Civil Milestone of the Internet in Brazil), which we have mentioned in previous articles, that  is intended to regulate network neutrality.

In my opinion, regardless of when and how these regulations are set, telecom companies are going to struggle to adapt to them. However, the increase in this kind of regulation will improve productivity and services, and ultimately, minimize the risks of these companies.

Márcio Cots is a lawyer, university professor and participant in the Ilaw Program (Cyberlaw) at Harvard Law School. He is also partner of COTS Advogados, specializing in Digital Law.

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