Telecommunication services expensive in Brazil due to monopoly: study

13:01, June 08, 2010      

Email | Print | Subscribe | Comments | Forum 

Monopoly in the telecommunications sector in Brazil has caused service to be offered at inappropriately high prices compared with people's income, an official study released on Monday showed.

According to the study, conducted by the Institute of Applied Economic Research (IPEA), infrastructure was improved with access to telecommunication services advanced during the privatization process of the industry in the 1990s.

However, the market has become controlled by a few economic groups, most of them counting on foreign capital, the study said.

Telefonica and Vivo of Spain and Portugal currently obtains 29 percent of the market share in Brazil's telecommunication industry, followed by Oi/Brasil Telecom of Brazil, with 27 percent, and Mexico's Claro/Embratel/Net, with 23 percent.

According to IPEA, a major obstacle for improving the quality of services is the lack of competition in the industry.

The convergence of technologies, goods and services which were previously separated, as well as the process of trade and regulation liberalization have led to major technological and institutional changes in the sector, the study said.

Meanwhile, the lack of control over the quality of services and the absence of policies articulated with other state actions, such as fiscal policies, have also barred telecommunications networks from further developing, it added.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion