Brazil Government Looks At Mixed Solution For Broadband Plan-Report

Brazil's government has adapted a plan to spread broadband Internet access across the continent-sized country to make it a joint public- and private-sector affair, according to unnamed government sources, reported local daily O Estado de S. Paulo Wednesday.

In the latest project to expand broadband access from the current 18 million level to 90 million by 2014, gone are plans to set up a wholly public-sector network based on the infrastructure of government-owned companies such as Petroleo Brasileiro SA (PBR), or Petrobras, Centrais Eletricas Brasileiras SA (EBR), or Eletrobras, and Eletronet. Instead, the networks of these companies will be used as a backbone and distribution in the regions will be the responsibility of existing privately owned broadband operators, said the report. Communications Ministry officials are due to present proposals to President Luiz Inacio Lula da Silva by Nov. 10.

Local broadband operators, including Spain's Telefonica S.A. (TEF) and Net Servicos de Comunicacao SA (NETC), were swift to mount a lobby after the government initially proposed the creation of a mirror broadband network to their existing operations.

While the proposal currently being considered does include some duplication of networks, the question of integration with private networks appears to have been better addressed.

-By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520; [e-mail]