Digital agenda for Brazil 2019-2022: contribution of the GSMA to the program of government of the next president

September 14, 2018

GSMA Submitted Recommendations to Brazil’s Presidential Candidates to Connect 60 Million Unconnected Citizens and Maximize Benefits of Digital Economy

14 September 2018, Los Angeles: To contribute to the government program of the candidates for the Presidency of the Republic, the GSMA prepared the study ‘Digital Agenda for Brazil 2019-2022.’ The document, which has just been submitted to the candidates, outlines elements that the GSMA recommends for inclusion in the next government’s public policies to integrate Brazil into the digital economy.

In the document, the GSMA proposes a Brazil that is increasingly connected and able to use the digital economy as an engine for development, inclusion and innovation. To achieve this goal, it is necessary to connect all Brazilians to the internet and mobile services, connect machines to recognise the benefits of the Internet of Things (IoT), and foster the development and adoption of digital services that can increase the efficiency of processes and reduce costs. Thus, it will be possible to provide new services, improve existing ones and make people’s lives better, making the whole economy more productive.

According to GSMA estimates, a digital agenda for Brazil can potentially raise the number of unique mobile subscribers from the current 143 million to 180 million in 2022, as well as increase the total number of connections from the current 236 million to 330 million in the same period. With regard to the IoT, GSMA Intelligence projects that the number of connected objects will leap from 16 million to 60 million by 2022, and that 100,000 new jobs will be created in the period.

“The next president will get the chance to define how Brazil can be integrated into the new value chains, new industries and industry verticals enabled by the digitalization of the economy,” stated Sebastián Cabello, Head of Latin America, GSMA. “To make this a reality, Brazil’s next president must implement a digital agenda based on a long-term vision that fosters investments in infrastructure and technology so as to promote the development and offer of new digital services.”

The digital agenda proposed by the GSMA for the next Brazilian government puts forward the following measures.

1. Legal and regulatory update


a. PLC 79/16 immediate approval.

b. Simplification of regulations and licensing procedures.

c. Encouragement of industry self-regulation.

d. Promotion of non-taxable bidding processes for new frequencies.

e. Establishment of symmetrical regulation for services similar to those provided by internet companies.

2. Promotion of digital inclusion

a. Tax exemption for access to low-income households and underprivileged areas.

b. Amendment of the FUST Act (fund to improve general access to telecommunications services) to enable its application to other services besides fixed telephony, and to subsidize the contracting of services by low-income users in underprivileged areas, including rural areas.
c. Tax reduction on services, equipment and devices, including smartphones.

d. Implementation of the “S System” for the Information and Communication Technologies (ICTs) industry to foster professional training.

3. Reduction of barriers to private sector investments


a. Tax incentives to install antennas in regions not yet covered by telecom services.

b. Enforcement of the General Antenna Act (Act 13.116/15) by local city governments.

c. Payment exemptions of Fistel (Telecommunications Inspection Fund), Condecine (Contribution for the Development of the National Film Industry) and CFRP (Contribution for the Promotion of Public Broadcasting) for antennas installed on highways.

d. Exemption of taxes, especially Fistel, for IoT equipment and infrastructure.
e. Definition of an industrial policy focused on future competitiveness.

The document ‘Digital Agenda for Brazil 2019-2022: What should the public policy of the next president include to integrate Brazil into the digital economy?’ is available to download here.

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