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Session 5B: Convergence
“Restricted mobility or restricted competition? Fixed-mobile convergence and universal access in Brazil”
Márcio Aranha Hernán Galperin François Bar Marina Villela
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Restricted mobility or restricted competition? Fixed-mobile - - PowerPoint PPT Presentation
Restricted mobility or restricted competition? Fixed-mobile - - PowerPoint PPT Presentation
Session 5B: Convergence Restricted mobility or restricted competition? Fixed-mobile convergence and universal access in Brazil Mrcio Aranha Hernn Galperin Franois Bar Marina Villela 1 Region gion 1 1 Local Region gion 2 2
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34.9 46.3 65.6 86.2 99.9 120.9 150.6 42 42.3 42.3 42.1 42 42.1 41.1
20 40 60 80 100 120 140 160 180 2002 2003 2004 2005 2006 2007 2008 SMP STFC
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0.003 0.12 0.252 0.712 0.94 1.4 1.8
0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2002 2003 2004 2005 2006 2007 2008
Liv ivre re
Livre
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1662957 6303 31569 159
Em Embrat ratel el Liv ivre re dis istribution ribution (S (Septe ptember, mber, 2008) 8)
Users in cities > 150,000 inhabitants Users in cities between 100,000 and 150,000 inhabitants Users in cities < 100,000 inhabitans Users of Embratel Livre wired
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Vé Vésper sper Por
- rtá
táti til / Embratel Livre Loc
- cal Telec
ecom
- mun
unicaç cações ões
Business model
Served areas, subscriptionless service, market niche Handset economies
- f scale, low-cost
deployment, affordable plans Underserved areas, small-scale
- perator, local
entrepreneurship
Spectrum
1975-1990 MHz (RBS to terminal) 1895-1910 MHz (Terminal to RBS) 1835-1838 MHz (RBS to terminal) 1740 MHz (Terminal to RBS)
Technology
CDMA GSM
License
Service license: STFC WLL radiofrequency licenses Service license: STFC Secondary radiofrequency licenses
Area
All codes of regions 1, 2 and 3 Codes 85 to 88 (Region 1)
Subscribers
1.8 million (Dec, 2008) 2,600 (Dec, 2007)
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Small-scale telecom
- perator
Local entrepreneurship Innovative business model Low-cost technologies Area or little interest to traditional
- perators
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So far, the conjunction of an enabling
regulatory environment with innovative business models, wireless technologies applied to STFC networks, along with user satisfaction with mobility restrictions, resulted in crescent deployment of FWA and GSM systems as fixed telephone services in Brazil.
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This trend is under peril due to the
lack
- f a new regulatory
approach designed to:
- preserve the fragile situation of a fixed
phone company using cellular frequencies
- n a secondary basis;
- assure
- perators
the ability to apply restricted mobility in their fixed phone networks.
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The cases described show that different strategies
were applied for different purposes and conditions.
- On
high-density areas, in which Vésper Portátil and Embratel Livre provide STFC, FWA/WLL application has proved to be an important tool to reverse STFC deployment
- stagnation. In this case, FWA/WLL functions as a successful
business model
- riented
towards low-income, senior population satisfied with subscriptionless low-cost telephony services restricted to neighborhood mobility. Previously referred limits on mobility experienced in the Embratel’s case show that a service unified license would facilitate the implementation of such approach.
- Local case, in turn, proved to be an important initiative to