The Brazilian model of telecommunications reform

This article describes the Brazilian Model of Telecommunications Reform (BMTR), presenting privatization and the new regulatory framework in Brazil, comparing it with the experiences in the UK and US. The main targets of the reform were to enhance competition, to provide universal service, and to raise privatization revenues to reduce public debt. The trade-offs among these targets explain the design of the BMTR: the restructuring of TELEBRAS; the duopoly policy and entry assistance. Issues like price-caps and interconnection rules are also addressed. The BMTR can be regarded worldwide as a benchmark that included privatization, despite the adoption of poor transitory policies toward efficiency.