Brazil - Feninfra: proposal to reduce watchdogs' activities will affect investments in telecommunications and harm consumers

This is a machine translation of Feninfra's press release

The National Federation of Call Center, Installation and Maintenance of Infrastructure for Telecommunications and IT Networks (Feninfra) is very concerned about the amendment proposed by federal deputy Danilo Fortes (União-CE) that removes decision-making power from the collegiate boards of regulatory bodies , such as the National Telecommunications Agency (Anatel). In the assessment of the president of the Federation, Vivien Mello Suruagy, the proposal will create legal uncertainty, harm consumers and affect the business environment in Brazil.

“The result of this change, if successful, will affect investments in several essential sectors of the Brazilian economy, including the telecommunications infrastructure, which depends on regulatory security to obtain funds, especially in long-term projects. We fear that new projects will become increasingly scarce and expensive, even affecting employability,” says the president.

“The creation of regulatory agencies was a great advance for all of Brazilian society. The introduction of regulatory frameworks encouraged investments and job creation. This proposal is a big setback”, adds Vivien Suruagy.

According to the president, the deputy's amendment to Provisional Measure (MP) 1,154, for the restructuring of the Esplanada dos Ministérios, is a distortion of the legal framework that was established in the country and one of the main factors responsible for the expansion of various sectors of the economy, such as telecommunications .

“The amendment changes the agency laws and transfers normative power to secretariats and councils linked to the ministries. It is an idea that completely contradicts the worldwide tendency to establish correct regulatory frameworks. The agencies must be independent to regulate the market and defend the interests of consumers, no matter which government was elected at the time”, he points out.

Vivien Suruagy recalls that Anatel -- the first agency to be created, in 1997- played an essential role in the implementation of a new telecommunications model in Brazil and this legacy should not be discarded. “Even if, eventually, we may disagree with some of Anatel's decisions, the agency has an essential role in promoting broad competition and in ensuring the fair marketing of services to consumers. It was like this in the privatization of the sector and in the implementation of all the advances in the last decades, including 4G and 5G”, he highlights.

“The directors of the agencies have a mandate, they are appointed by the government, but they are questioned in the Senate. It is a transparent process, which has been working, but which can be destroyed by a measure that ends the normative power of the agencies. We hope that the federal government recognizes the role of regulatory bodies and opposes the measure”, he concludes.