The Brazilian government could offer subsidies to telecommunications firms in order to meet the goals set out in the country’s National Broadband Plan.
A key area of debate around the Plan is the enforcement of minimum speeds of 1MB for all broadband plans, at a monthly cost of R$ 35 ($22).
Communications minister Paulo Bernardo Silva was quoted as saying that the government intends to meet the telcos each 18 or 24 months to assess spending levels around the project. If it becomes clear that companies are losing out, the government will help companies finance their upgrades. However, if the companies start to profit with the operation, higher levels of investment will be required.
According to the minister, as broadband reaches the masses, internet service providers (ISPs) are likely to see business growth.
“We want to show that telecom companies that bringing the service to the masses by charging less is even more profitable than charging high prices to a limited number of customers,” the minister said during a meeting hosted by the Federation of Commercial and Services Associations (Federasul) in the state of Rio Grande do Sul, yesterday.
Image by Kyle McDonald licensed under Creative Commons.
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