The Brazilian Model of Telecommunications Reform (BMTR)

This article describes the main issues of the Brazilian Model of Telecommunication Reform (BMTR), presenting the privatization process and the new regulatory framework in Brazil, comparing with the experiences of 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 will also be addressed. The BMTR can be regarded as a benchmark worldwide that included privatization, despite the adoption of poor transitory policies toward efficiency.